Section 4 Energy Conservation in Transportation

Article 41 The relevant departments in charge of transportation under the State Council shall, in compliance with their respective duties, be responsible for administration of and supervision over energy conservation in the areas related to transportation nationwide.

The relevant departments in charge of transportation under the State Council shall, in conjunction with the department in charge of energy conservation under the same, respectively draw up programs for energy conservation in the relevant areas.

Article 42 The State Council and the relevant departments under it shall guide and promote the coordinated development of and effective connection among the various modes of transportation and optimize the structure of transportation, in order to establish a comprehensive energy-saving system of transportation.

Article 43 The local people’s governments at or above the county level shall give first priority to the development of public transportation, increase input for such transportation, keep improving the sound public transportation service system and encourage people to use the means of public transportation; and encourage people to use non-motor vehicles.

Article 44 The relevant departments in charge of transportation under the State Council shall improve organization and administration of transportation and give guidance to the enterprises engaged in road, water or air transportation in their efforts to improve organized and intensive transportation, in order to increase energy efficiency.

Article 45 The State encourages the development, manufacture and use of energy-saving and environment-friendly automobiles, motor cycles, locomotives, vessels and other means of transportation and applies a system of scraping and replacing the old or outdated means of transportation.

The State encourages the development and wide use of clean fuels and oil substitutes for the means of transportation. Article 46 The relevant departments under the State Council shall establish norms for fuel consumed by vehicles and vessels which are used for transportation business; where such norms are not fulfilled, the vehicles or vessels in question shall not be used for transportation business.

The relevant department in charge of transportation under the State Council shall exercise stricter administration of and supervision over the monitoring of vehicles and vessels used for transportation business with respect to their fuel consumption.

Section 5 Energy Conservation by Public Institutions

Article 47 Public institutions shall practice strict economy and eliminate waste, and take the lead in the use of energy-saving products and equipment, in order to increase energy efficiency.

For the purposes of this Law, public institutions include the government departments, institutions and public organizations that completely or partly rely on government funding.

Article 48 The offices administering the affairs of the departments of the State Council and of the local people’s governments at or above the county level shall, in conjunction with the relevant departments at the corresponding levels, formulate programs for energy conservation by the public institutions under the same government and be responsible for their implementation. The programs for energy conservation by public institutions shall include the plans for renovation of the energy-saving facilities of the existing buildings of the public institutions.

Article 49 Public institutions shall design annual goals for energy conservation and draw up plans for their achievement, improve the measurement of energy consumed and the monitoring and control thereof, and submit reports on energy consumption in the preceding year to the offices administering the affairs of the developments of the corresponding people’s governments.

The offices administering the affairs of the departments of the State Council and of the local people’s governments at or above the county level shall, in conjunction with the relevant departments at the corresponding levels and within the limits of their administrative power, establish the quotas of energy consumption for the public institutions under the same government, and the finance departments shall, on the basis of the said quotas, formulate the standard for the expenditure on energy consumption.

Article 50 Public institutions shall tighten control over their energy-using system to ensure that it operates in conformity with the relevant standards of the State.

Public institutions shall, according to regulations, have their energy consumption audited and, on the basis of the results of auditing, adopt measures to increase energy efficiency.

Article 51 When purchasing energy-using products and equipment, public institutions shall give first priority to the products and equipment listed in the catalogue of energy-saving products and equipment for government procurement. Procurement of energy-using products or equipment, which the State has eliminated by official order, is prohibited.

The catalogue of energy-saving products and equipment for government procurement shall be compiled and published by the regulatory authorities for government procurement of the people’s governments at or above the provincial level in conjunction with the relevant departments at the same level.

Section 6 Energy Conservation in Key Energy-Using Units

Article 52 The State improves administration of the key energy-using units with respect to energy conservation.

In one of the following cases, an energy-using unit is a key energy-using unit, if:

(1) its annual overall consumption of energy totals 10,000 tons of standard coal and more; and

(2) its annual overall consumption of energy totaling 5,000 tons and more but less than 10,000 tons of standard coal, as determined by the relevant department under the State Council or the departments in charge of energy conservation under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.

The administrative measures for energy conservation in the key energy-using units shall be formulated by the department in charge of energy conservation under the State Council in conjunction with the relevant departments under the same.

Article 53 A key energy-using unit shall annually submit a report on the energy utilized in the preceding year to the department in charge of energy conservation. The report shall include information on energy consumption, energy efficiency, achievement of the goal for energy conservation, analysis of the results of energy conservation, measures taken for energy conservation, etc.

Article 54 The department in charge of energy conservation shall review the report on energy utilization submitted by key energy-using units. With respect to a key energy-using unit that lacks a sound control system for energy conservation or fails to put the measures for energy conservation into practice or its energy efficiency is low, the said department shall conduct on-the-spot investigation, arrange a test of the energy-using equipment with respect to energy efficiency, order the said unit to be audited as to its energy consumption and, in writing, require it to make rectification within a time limit.

Article 55 A key energy-using unit shall establish positions for energy control, appoint to such positions persons to be responsible for energy control from among the ones who have the expertise and practical experience in energy conservation and who have the technical title at or above the intermediary level, and submit the appointments to the department in charge of energy conservation and the relevant departments for the record.

The persons responsible for energy control shall be responsible for analyzing and assessing energy utilization in their own unit, preparing reports thereon, and proposing measures for improvement of energy conservation and ensuring their implementation.

The leading persons for energy control shall receive trainings in energy conservation.