Law and Climate Change Toolkit

Article 4

Article 4 The state shall give priority to the development and utilization of renewable energy in                                                      energy development and promote the establishment and development of the renewable energy                                                      market by setting an overall target for the development and utilization of renewable energy and                                                      adopting corresponding measures. 
The state shall encourage economic subjects of different ownership to participate in the                                                      development and utilization of renewable energy and shall protect the legitimate rights and interests                                                      of those who develop and utilize renewable energy .

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Articles 5-7

Article 5 The administrative department of energy of the State Council shall conduct unified
                                                     administration of the development and utilization of renewable energy throughout the country.
                                                     Other relevant departments of the State Council shall, according to their respective functions and
                                                     duties, conduct administration of the development and utilization of the relevant renewable energy.
 The administrative departments in charge of the energy work of the local people's governments at
                                                     and above the county level shall conduct administration of the development and utilization of
                                                     renewable energy in their respective administrative regions. Other relevant departments of the local
                                                     people's governments at and above the county level shall, according to their respective functions
                                                     and duties, conduct administration of the development and utilization of the relevant renewable
                                                     energy.
                                                     Chapter II Resources Investigation and Development Planning
                                                     Article 6 The administrative department of energy of the State Council shall organize and
                                                     coordinate the investigation of renewable energy throughout the country and, in conjunction with
                                                     other relevant departments of the State Council, organize the formulation of the technical criteria
                                                     for resources investigations.
                                                     Other relevant departments of the State Council shall, according to their respective functions and
                                                     duties, take charge of the investigation of the relevant regenerable energies and submit the
                                                     investigation results to the administrative department of energy of the State Council.
                                                     All results of the investigation of renewable energy shall be published except those that the state
                                                     requires to keep confidential.
                                                     Article 7 The administrative department of energy of the State Council shall, in light of the energy
                                                     demand and the status of the renewable energies throughout the country, formulate a national long-
                                                     and medium-term total target for the development and utilization of renewable energies, submit it
                                                     to the State Council for approval, and publish and implement it after it has been approved by the
                                                     State Council.
                                                     The administrative department of energy of the State Council shall, according to the total target as
                                                     set according to the preceding paragraph and in light of the economic development and the
                                                     conditions about the renewable energies of each province, autonomous region and municipality
                                                     directly under the Central Government, and in conjunction with the people's government of each
                                                     province, autonomous region and municipality directly under the Central Government, fix and
                                                     publish a long- and medium-term target for the development and utilization of renewable energies
                                                     for each administrative region.

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Designating and establishing national bodies Duties and powers of national governments

Article 8

rticle 8 The energy department of the State Council shall, according to the national mid- and long-
                                                     term total target for the development and utilization of regenerable energy resources and the
                                                     development status of renewable energy technologies, work out a national plan for the development
                                                     and utilization of renewable energy resources together with other relevant departments of the State
Council, submit it to the State Council for approval, and implement it after it is approved by the
                                                     State Council.
                                                     The relevant departments of the State Council shall make relevant plans facilitating the realization
                                                     of the national mid- and long-term total target for the development and utilization of renewable
                                                     energy resources.
                                                     The administrative departments in charge of the energy work of the people's governments of all
                                                     provinces, autonomous regions and municipalities directly under the Central Government shall,
                                                     according to the national plan for the development and utilization of regenerable energy resources
                                                     and the mid- and long-term target for the development and utilization of regenerable energy
                                                     resources for their respective administrative regions, work out plans for the development and
                                                     utilization of renewable energy resources for their respective administration regions together with
                                                     other relevant departments of the people's governments at the same level, submit them to the
                                                     people's governments at the same level for approval and the energy department of the State Council
                                                     and the State Electricity Regulatory Commission for archival purposes, and implement them after
                                                     they are approved.
                                                     Any approved planning shall be published except those that the state requires to keep confidential.
                                                     Any amendment to an approved planning shall be subject to the approval of the original approving
                                                     organ.

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Duties and powers of subnational government Duties and powers of national governments Designating and establishing national bodies

Article 9

Article 9 To work out a plan for the development and utilization of renewable energy resources, it
                                                     needs to follow the principles of adjusting measures to local conditions, taking all factors into
                                                     consideration, realizing reasonable layout and sticking to orderly development, and make overall
                                                     plans for the development and utilization of wind energy, solar energy, water energy, biomass
                                                     energy, geothermal energy, ocean energy and other renewable energy resources. The plan shall
                                                     contain the development targets, major tasks, regional layout, key projects, progress, construction
                                                     of associated power network, service systems, safeguards, etc.
                                                     The department responsible for working out the plan shall solicit comments from relevant entities,
                                                     experts and the general public, and shall conduct scientific assessment.
                                                     Chapter III Industrial Guidance and Technical Support

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Article 10

Article 10 The administrative department of energy of the State Council shall, according to the
                                                     national planning for the development and utilization of renewable energies, formulate and publish
                                                     a regenerable energy resource industry development guidance catalogue.

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Article 11

Article 11 The administrative department of standardization of the State Council shall formulate
                                                     and publish national technical standards for grid synchronization of electricity generated by using
                                                     renewable energies and national standards for other techniques and products relating to renewable
                                                     energies for which there should be nationally uniform technical standards.
                                                     With regard to any matter not covered by the national standards as mentioned in the preceding
                                                     paragraph, the relevant department of the State Council may formulate relevant industrial standards
                                                     and submit them to the administrative department of standardization of the State Council for
                                                     archival purposes.

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Article 12

Article 12 In the development of science and technology and high-tech industrial development, the
                                                     state shall give priority to the scientific and technological research in, and the industrialization of,
                                                     the development and utilization of regenerable resources, incorporate the said research and
                                                     development and utilization into the national scientific and technological development planning
                                                     and high-tech industrial development planning, arrange for funds to support the scientific and
                                                     technological research in, and application, demonstration and industrialization of, the development
                                                     and utilization of regenerable energies, promote the progress of the technology relating to the
                                                     development and utilization of regenerable energies, decrease the production cost of the products of
                                                     renewable energies, and enhance the product quality.
                                                     The administrative department of education of the State Council shall incorporate the knowledge
                                                     and technology relating to regenerable energies into the courses of both general and vocational
                                                     education.

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Article 13

Article 13 The state shall encourage and support grid synchronization of power generated by using
                                                     renewable energies.
                                                     Anyone who wishes to construct a project of synchronized electricity generation by using
                                                     renewable energies shall obtain an administrative license or report the project for archival purposes
                                                     in accordance with the relevant laws and the relevant provisions of the State Council.
                                                     Where two or more persons apply for an identical project as mentioned above which is subject to
                                                     administrative licensing, the licensee shall be determined through public bidding.

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Article 14

Article 14 The state applies the system of guaranteeing the purchasing of electricity generated by
                                                     using renewable energy resources in full amount.
                                                     The energy department of the State Council shall, together with the State Electricity Regulatory
                                                     Commission and the public finance department of the State Council, and according to the national
plan for the development and utilization of renewable energy resources, determine the target
                                                     proportion, which shall be realized in the planning period, between the electricity generated by
                                                     using regenerable energy resources and the total electricity generated and work out the specific
                                                     measures for power grid enterprises to firstly schedule the generation of electricity with renewable
                                                     energy resources and purchase electricity generated by using renewable energy resources in full
                                                     amount. The energy department of the State Council and the State Electricity Regulatory
                                                     Commission shall urge the implementation of such measures in the planning years.

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Article 15

Article 15 The state shall support the construction, in areas not covered by any grid, of independent systems of electricity generated by using renewable energies for providing electricity service to the local production and people's daily life.

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Article 16

Article 16 The state shall courage the clean and highly efficient development and utilization of
                                                     biomass fuels and the development of energy crops.
                                                     Enterprises operating a gas or heat pipe network shall accept the access to its network of the gas or
                                                     heat produced by using biomass resources, provided that the gas or heat meets the technical
                                                     standards for access to the urban gas or heat pipe network.
                                                     The state shall encourage the production and utilization of biological liquid fuels. Each petrol
                                                     selling enterprise shall, in accordance with the relevant provisions of the administrative department
                                                     of energy of the State Council or of the local people's government at the provincial level,
                                                     incorporate biological liquid fuels that meet the national standards into its fuel selling system.

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Article 17

Article 17 The state shall encourage entities and individuals to install and use solar water heating
                                                     systems, solar heating and refrigeration systems and solar photovoltaic electricity generation
                                                     systems.
                                                     The administrative department of construction of the State Council shall, in conjunction with other
                                                     relevant departments of the State Council, formulate technical and economic policies and technical
                                                     criteria for the combination of solar energy utilization systems with the construction of buildings.
                                                     Real estate development enterprises shall, in accordance with the technical criteria referred to in the
                                                     preceding paragraph, take into account the requirements for using solar energy when designing and
                                                     constructing buildings.
                                                     With regard to a building already completed, the user may install a solar energy utilization system
                                                     that meets the relevant technical criteria and product standards, provided that such installation shall
                                                     not adversely affect the quality or safety of the building, and except that it is otherwise agreed to by
                                                     the relevant parties.

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Article 18

Article 18 The state shall encourage the development and utilization of renewable energies in rural
                                                     areas.
                                                     The departments in charge of the energy work of the local people's governments at and above the
                                                     county level shall, in conjunction with other relevant departments and in light of the need of the
                                                     local economic and social development, ecological protection and comprehensive control of
                                                     hygiene conditions, formulate renewable energy resource development planning for rural areas and,
                                                     in light of the local conditions, popularize the use of marsh gas and other conversion of biomass
                                                     resources, domestic solar energy, small-scale wind energy and small-scale hydroenergy techniques.
                                                     The local people's governments at and above the county level shall provide financial support for
                                                     renewable energy utilization projects in rural areas.
                                                     Chapter V Price Control and Cost Compensation

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Article 19

The on-grid electricity prices for projects of electricity generation by using renewable
energies shall be determined by the administrative department of price of the State Council in light
of the conditions of different areas and the characteristics of electricity generation by using
renewable energies of different types, and according to the principle of helping promote the
development and utilization of regenerable energies and the principles of economy and rationality,
and be adjusted in a timely manner by the same department in light of the development of the
renewable energy resource utilization technology. On-grid electricity prices shall be published.
The on-grid electricity price for a project of electricity generation by using regenerable energies for
which public bidding is held under Paragraph 3 of Article 13 hereof shall be the price as fixed
through bidding, provided that the price may not be higher than the that as set under the preceding
paragraph for a project of the same type.

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Article 20

If the cost arising from the purchase by a power grid enterprise of electricity generated
by using regenerable energy resources at an on-grid price fixed under Article 19 hereof is higher
than the cost as calculated according to the average on-grid electricity price for electricity generated
by using conventional energy resources, the difference shall be covered by collecting additional
charges to the price of electricity generated by using renewable energy resources in the sale of
electricity around the whole nation.

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Article 21

Access cost and other relevant expenses reasonably incurred to an electricity grid
enterprise due to its purchase of electricity generated by using regenerable energies may be
reckoned in its electricity transmission cost and be recoverable from the selling price of electricity.

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Article 22

The selling price of electricity for the public independent power system of electricity
generated by using renewable energy resources as constructed with the investment or subsidy of the
state shall be determined according to the local standards for classified selling prices of electricity.
If the reasonable operation and management cost is higher than the selling price of electricity, the
difference shall be compensated for in the way as provided for in Article 20 of this Law.

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Article 23

The price of heat or gas produced by using renewable energy energies and put in an
urban pipe network shall be determined according to the principle of helping promote the
development and utilization of regenerable energies and the principles of economy and rationality
and the provisions concerning price control power limits.

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Article 24

A renewable energy development fund shall be set up by the national finance, and the
sources of funds shall include the annual special-purpose funds arranged by the national finance,
the additional income to the price of electricity generated by using renewable energy resources as
collected according to law, etc.
The renewable energy development fund shall be used to compensate for the differences mentioned
in Articles 20 and 22 and to support:
1. the scientific and technological research in, the formulation of the standards for and the
demonstration projects for the development and utilization of renewable energy resources;
2. the renewable energy utilization projects in rural and pastoral areas;
3. the construction of the independent electricity generation systems using renewable energy
resources in remote areas and islands;
4. the prospecting and assessment of renewable energy resources and the construction of relevant
information systems; and
5. the promotion of the localized production of equipment for the development and utilization of
renewable energy resources.
For the access cost and other relevant costs mentioned in Article 21 of this Law that cannot be
recovered from the selling price of electricity, the power grid enterprises may apply to the
renewable energy development fund for subsidies.
The specific measures for the administration of the collection and use of the renewable energy
energy development fund shall be formulated by the public finance department of the State Council
together with the energy department and the price department of the State Council.

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Article 25

A financial institution may offer a favorable loan with a financial discount for a
renewable energy development and utilization project that is listed in the regenerable energy
industry development guidance catalogue and that meets the credit requirements.

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Article 26

The state shall adopt a tax preferential policy for projects that are listed in the
regenerable energy industry development guidance catalogue.

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Article 27

Each power enterprise shall keep true and complete records about electricity generation
by using regenerable energies and accept inspection and supervision by the power regulatory
authorities.
The power regulatory authorities shall comply with the statutory procedures when conducting
inspections and keep confidential the business and other secrets of inspected enterprises.

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Article 29

Any power grid enterprise violating Article 14 of this Law by failing to purchase the
quantity of the electricity generated by using regenerable energy resources as required and thus
causing economic losses to the relevant enterprise which uses regenerable energy resources to
generate electricity shall be liable for such losses and be ordered by the State Electricity Regulatory
Commission to make corrections within a specified time limit and, if it refuses to make corrections
as required, be given a fine not exceeding the amount of the losses suffered by the relevant power
enterprise.

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Provisions for non-compliance and enforcement

Article 30

Any enterprise operating a gas or heat pipe network that violates Paragraph 2 of Article
16 hereof by refusing to accept the access to its network of the gas or heat produced by using
biomass resources but meets the technical standards for access to the urban gas or heat pipe
network and thus causing economic losses of the gas or heat production enterprise shall be liable
for such losses and be ordered by the department in charge of the energy work of the relevant
people's government at the provincial level to make corrections within a specified time limit and, if
it refuses to make corrections as required, be given a fine not exceeding the amount of the losses
suffered by the gas or heat production enterprise.

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Article 31

Any petrol selling enterprise that violates Paragraph 3 of Article 16 hereof by failing to
incorporate biological liquid fuels that meet the national standards into its fuel selling system and
thus causing economic losses to the relevant biological liquid fuel production enterprise shall be
liable for such losses and be ordered by the administrative department of energy of the State
Council or the department in charge of the energy work of the relevant people's government at the
provincial level to make corrections within a specified time limit and, if it refuses to make
corrections as required, be given a fine not exceeding the amount of the losses suffered by the
relevant biological liquid fuel production enterprise.

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