The Renewable Energy Law of the People's Republic of China

Chapter 6 Economic Incentives and supervisory measures

Article 24-The Government budget establishes renewable energy development fund to support the following:

1. Scientific and technological research, standard establishment and pilot project for the development and utilization of renewable energy;

2. Construction of renewable energy projects for domestic use in rural and pasturing areas;

3. Construction of independent renewable power systems in remote areas and islands;

4. Surveys, assessments of renewable energy resources, and the construction of relevant information systems;

5. Localized production of the equipment for the development and utilization of renewable energy.

Article 25-Financial institutions may offer preferential loan with financial interest subsidy to renewable energy development and utilization projects that are listed in the national renewable energy industrial development guidance catalogue and conform to the conditions for granting loans.

Article 26-The Government grants tax benefits to projects listed in the renewable energy industrial development guidance catalogue, and specific methods are to be prepared by the State Council.

Article 27-Power enterprises shall authentically and completely record and store relevant materials of renewable energy power generation, and shall accept the inspection and supervision of power supervisory institutions.

Power supervisory institutions shall do the inspection in accordance with stipulated procedures, and shall keep commercial secret and other secret for inspected units.

Chapter 7 Legal Responsibilities

Article 28-If energy authorities of the State Council and the people's governments above the county level as well as other relevant authorities breach this Law and have one of the following, people's government of their own level or relevant authorities of the superior people's governments may order them to make correction, and impose administrative penalty for competent personnel that are liable and other personnel directly liable; in case that such breaches constitute crime, criminal liabilities shall be legally pursued.

1. Failure to make administrative licensing decision in accordance with law;

2. Failure to make an investigation when illegal activities are dicovered;

3. Other acts of not legally performing supervision and management responsibilities.

Article 29-If the power grid enterprises breach Article 14 hereof and fail to purchase renewable power in full, which results in economic loss to the renewable power generation enterprises, such power grid enterprises shall be liable for compensation, and the national power supervisory institutions shall order them to make correction within a stipulated period of time; in case of refusal to make correction, a fine of less than the economic loss of the renewable power generation enterprises shall be imposed.

Article 30-In case that enterprises of natural gas pipeline network and heat pipeline network breach paragraph 2 of Article 16 hereof and do not permit the connection of natural gas and heat that conform to the grid connection technical standard into the network, which results in economic loss to the gas and heat production enterprises, relevant enterprises shall be liable for compensation, and energy authorities of the people's government at the provincial level shall order them to make correction within a stipulated period of time; in case of refusal to make correction, a fine of less than said economic loss shall be imposed against them.

Article 31-If gas-selling enterprises breach paragraph 3 of Article 16 hereof and fail to include biological liquid fuel that conforms to the national standard into its fuel-selling system, which results in economic loss to the biological liquid fuel production enterprises, relevant enterprises shall be liable for compensation, and energy authorities of the State Council or people's government at the provincial level shall order them to make correction within a stipulated period of time; in case of refusal to make correction, a fine of less than said economic loss shall be imposed against them.

Chapter 8 Miscellaneous

Article 32-Terms used herein shall have the following meanings:

1. Biomass energy: means energy converted from natural plants, rejecta as well as urban and rural organic waste.

2. Renewable energy independent power system: means independent renewable power system not connected to the power grid.

3. Energy crop: means herbage and wood plants specially planted and used as raw materials of energy.

4. Biological liquid fuels: means methanol, ethanol, bio-diesel and other liquid fuels derived from biomass resources.

Article 33-This Law shall become effective on Jan 1st, 2006.

[Provided by China Climate Change Info-Net]