THE GOVERNMENT’S DECREE
On energy conservation and energy efficiency
THE GOVERNMENT
Pursuant to the Law on the Organization of the Government dated December 25, 2001;
In order to enhance the energy conservation and energy efficiency, meeting the increasing demand for energy of the national economy, protecting the environment, exploiting energy resources in an appropriate manner, promoting sustainable socio-economic development;
At the proposal of the Minister of Industry,
DECREES
Chapter I
GENERAL PROVISIONS
Article 1. Governing scope
This decree regulates the energy conservation and energy efficiency in industrial production, in buildings, with regard to energy-consuming equipment and means and in domestic activities of the people.
Article 2. Applicable subjects
This decree shall be applied to all organizations, individuals living, operating, and working in the territory of Vietnam, except otherwise provided for by international treaties that Vietnam has signed or acceded to.
Article 3. Interpretations of terms
In this decree, the terms set forth below shall have the following meanings:
1. Energy means a form of material able to generate work, including primary energy resources such as coal, oil, gas and secondary energy resources, including thermal and electrical energy generated in the course of the transformation of primary energy.
2. Energy conservation and energy efficiency means reasonable use of energy, with a view to reducing energy consumption volume and the level of spending on energy for energy-consuming equipment and means while still ensuring the energy required for production processes, services and domestic activities.
3. Key energy-consuming unit means a unit whose annual combined consumption of fuel and thermal energy reaches one thousand tons (1,000 TOE), in tons of oil in conversion or over, or average capacity of electricity consumption reaches five hundreds (500) KW or over, or annual consumption of electricity energy reaches three million (3,000,000) KWh or over.
4. Building means a multistory work used for supermarkets, hotel, offices, headquarters, and apartments.
5. Selected building means one or a number of buildings at the same address meeting one of the criteria set forth below:
Having power supplied by a transformer station of combined 750KVA-and-higher installation capacity.
Having the annual combined consumption of commercial energy including electrical and thermal energy of 10 million MJ (Megajul) or 2,800,000 KWh and higher.
6. Energy-economical products means highly efficient equipment, means that have low energy-consumption level and insulating materials that have good coefficient of insulation and are designed, manufactured, produced, and tested in accordance with Vietnam’s standards on limits for energy consumption and energy losses.
Chapter II
USE OF ENERGY IN PRODUCTION UNITS
Article 4. Technological measures
Production units shall practice energy conservation and energy efficiency through the major measures as set forth below:
1. Improving and rationalizing the process of fuel burning
2. Improving and rationalizing the processes of heat increasing, freezing, and transforming thermal energy to mechanical energy.
3. Reducing heat losses due to heat transfer.
4. Reusing waste heat.
5. Improving, rationalizing the processes of transforming thermal energy to electrical energy.
6. Reducing power losses during the processes of electricity transfers, distribution and use.
7. Improving, rationalizing the process of transforming electrical energy to mechanical and thermal energy.
8. Selecting, reasonably replacing the used energy resources in order to attain better energy efficiency.
9. Developing the use of renewable energy resources to save such non-renewable energy resources as coal, oil products, and gas.
Article 5. Responsibilities of production units
1. Production units operating in the areas set forth below shall have the responsibility to carry out measures for energy conservation and energy efficiency:
a) Processing units, commodity-production units, machinery and equipment repairing units;
b) Mining;
c) Generating, supplying electrical energy;
d) Generating, supplying thermal energy;
2. Annually, production units prescribed in paragraph 1 of this Article shall register its targets of energy saving, work out statistical tables on energy consumption, target on energy consumption on one product unit for report to the Department for Industry; with regard to key units, to the Department for Industry and Ministry of Industry.
Article 6. Responsibilities of key energy-consuming units
1. Annually, key energy-consuming units shall report to the Department for Industry and Ministry of Industry on the situation, conditions, and productivity of the consumptions of fuel, thermal energy, and electrical energy; dismantling, upgrading, replacing, newly installing machinery, equipment consuming fuel, thermal and electrical energy; machinery, equipment installed for the purpose of energy conservation and energy efficiency.
2. Building responsibility mechanism to each relevant collective, individual regarding the practice of energy conservation and energy efficiency, establishing mechanisms to commend and reward collectives and individuals having good performance and to discipline collectives, individuals committing violations during the implementation of provisions on energy conservation and energy efficiency.
3. There shall be specialized officials to help the Director with energy management. The specialized officials shall have tertiary education background and have been trained in energy specialties.
4. Officials specialized in energy management shall be responsible in helping the Director with the management, supervision over energy-consuming means and the implementation of measures for energy conservation and energy efficiency; in accordance with regulations of the Ministry of Industry.
5. In cases where a key energy-consuming unit fails to fully implement regulations, standards on energy-consumption limits issued in accordance with provisions of item b, paragraph 3, Article 20 herein, the Ministry of Industry shall given notice of actions to be taken and require the unit to work out, submit for approval its plan for energy conservation and energy efficiency.
Chapter III
USE OF ENERGY IN BUILDINGS
Article 7. Responsibilities in investment into construction of buildings
Organizations, individuals involving in designing, investing, constructing, possessing buildings shall have the responsibility to implement the measures set forth below for energy conservation and energy efficiency:
1. Taking full advantage of natural conditions or appropriate architectural structural solutions in order to reduce energy consumption for the purposes of lighting, ventilation, air conditioning, and warming.
2. Using insulating materials manufactured on energy-saving standards in order to reduce heat transfer through walls, doors, and windows.
3. Using equipment manufactured on energy-saving standards for installation in buildings.
4. Arranging in proper manner equipment with a view to attain high-energy efficiency.
Article 8. Selected buildings
1. The design and construction of selected buildings, works of buildings shall abide by standards, norms and designing procedures relating energy conservation and energy efficiency that are issued in accordance with provisions of item c, paragraph 3, Article 20 herein.
2. The profiles asking for the licensing of the construction of selected building shall include a document introducing measures for energy conservation and energy efficiency.
3. The Ministry of Construction shall have the responsibility to instruct and request the implementation of measures required for energy conservation and energy efficiency in case where organizations, individuals involving in the design, investment in, construction, and possess of buildings have not implement measures for energy conservation and energy efficiency.
Article 9. Office headquarters
1. Newly-built office headquarters financed by the budget shall abide by designing standards and norms on energy conservation and energy efficiency issued in accordance with provisions of item c, paragraph 3, Article 20 herein.
2. Annually, along with the reparation, maintenance of office equipment, State agencies shall build specific plan of the annual budget to gradually replace old, backward, and energy-intensive equipment with equipment having been defined as energy-economical that have advanced energy-consumption norms in lighting, ventilation, air conditioning, pumping, and other equipment for the purpose of a reduction in energy consumption in offices.
Chapter IV
ENERGY-CONSUMING EQUIPMENT, MEANS
Article 10. Responsibilities of producers, exporters, and importers
Organizations, individuals that are producers, businesspeople, exporters and importers of energy-consuming equipment and means shall have the responsibility to apply scientific and technological solutions to produce energy-economical equipment, means and adequately provide customers with necessary information relating the productivity, energy-consumption level of the equipment, means.
Article 11. Selected equipment
1. Equipment, means subjected to strict management on energy consumption includes: equipments and means widely used domestically and consuming a large volume of energy as prescribed in the list issued by competent State management bodies.
2. The Ministry of Industry shall recommend or provide supportive solutions to producers to help them improve the energy-consuming specification of the selected equipment in order to improve its advancement in terms of energy-consumption norms.
Article 12. Energy-economical quality stamp
1. Organizations, individuals manufacturing, importing, trading products that are energy-consuming equipment, means shall have to clearly state the energy-consumption norms in the manual or on product labels.
2. According to the national standards on energy-consumption limits issued in accordance with provisions of item b, paragraph 3, Article 20 herein and other provisions of the laws regarding product quality in terms of energy-efficient norms, organizations, individuals producing, importing products that are energy-consuming equipment, means shall announce and be responsible for the quality of the products in terms of energy-consumption norms.
On the basis that products meet the prescribed standards, organizations, individuals shall be able to register for the licensing of certificate and stamps certifying that the products meet energy-saving standards.
Chapter V
USE OF ENERGY IN DOMESTIC ACTIVITIES
Article 13. Responsibility in saving energy in domestic activities
Organizations, individuals shall have the responsibility to use equipment for the purposes of lighting, ventilation, air conditioning, pumping and other domestic activities that have advanced energy-consumption norms to replace equipment that have backward energy-consumption norms, in order to reduce the level of spending on energy and help implement the State policy on energy saving.
Article 14. Solutions for energy conservation and energy efficiency in domestic activities
1. Applying appropriate policy on energy prices in domestic activities in order to enhance the energy conservation and energy efficiency.
2. Applying instructions of the Ministry of Construction issued in accordance with the provisions of item c, paragraph 3, Article 20 herein while using energy-intensive construction materials and equipment such as air conditioners, machinery equipment used for the purpose of ventilation, lighting equipment, hot-water supplying equipment, domestic elevator for the purpose of energy conservation and energy efficiency.
3. Keeping to a minimum the use of high capacity equipment at peak hours according to the additional charge diagram of the electrical system.
Chapter VI
MEASURES TO ENCOURAGE, ENHANCE ENERGY CONSERVATION AND ENERGY EFFICIENCY
Article 15. Policies to support, encourage energy conservation and energy efficiency
1. Equipment, materials, technological lines imported for the purpose of energy saving, products incorporated in the list of energy-economical equipment subjected to encouraged production or import shall be subjected to preferential tax treatments as prescribed by the laws.
2. State-owned enterprises implementing measures of energy saving shall be rewarded for their saving in accordance with provisions of the laws on financial management and business accounting with regard to state-owned enterprises.
3. Enterprises investing in projects of producing energy-economical products, importing modern technological lines or making intensive investment shall be considered to borrow middle-term or long-term capital from the Fund for Development Assistance, the Fund for Scientific and Technological Development Assistance.
Article 16. Measures to develop science and technology for the purpose of energy conservation and energy efficiency
1. Annually, ministries, ministerial-level agencies, governmental agencies, provincial and central municipal People’s Committees shall have the responsibility to build programmes, projects to enhance energy conservation and energy efficiency, allocate budget for scientific, technological, and environmental researches and development with an appropriate proportion to scientific researches and technological development for the purpose of energy conservation and energy efficiency.
2. The contents of programmes, projects to enhance energy conservation and energy efficiency shall include:
a) Developing technologies for energy conservation and energy efficiency that are suitable to principal industries of the national economy;
b) Providing support to the studies, development, and application of common energy-economical techniques where their efficiency has been proved;
c) Introducing and applying technologies, widely providing information regarding technologies for energy conservation and energy efficiency.
Article 17. Improving awareness on energy conservation and energy efficiency
1. Ministries, ministerial-level agencies, governmental agencies, provincial, central municipal People’s Committees shall organize the propaganda, dissemination in mass media and by other activities to improve the public awareness on and mobilize public participation in energy conservation and energy efficiency.
2. Measures to improve awareness on energy conservation and energy efficiency include:
a) Training, building and strengthening officials specialized in energy saving, energy conservation and energy efficiency in units, branches, localities.
b) Universalizing the energy saving through communication programmes on mass media;
c) Including the enhancement of energy saving into operations of Science and Technique Associations, public organizations. Organizing creative competitions on energy saving, conducting energy-saving encouraging programmes.
Article 18. The National Target Programme on Energy conservation and energy efficiency
According to socio-economic development norms, the Ministry of Industry shall take the lead and cooperate with concerned ministries and branches to develop the National Target Programme on Energy conservation and energy efficiency for submission to the Prime Minister, with the following contents:
1. Studying, developing project on energy conservation and energy efficiency, enhancing environmental protection and overcoming environmental problems arising from production and energy use.
2. Building plans on energy conservation and energy efficiency.
3. Educating, training, disseminating information, propaganda in communities on the fields of development and enhancement of energy conservation and energy efficiency, and environmental protection.
Chapter VII
STATE MANAGEMENT OVER ENERGY CONSERVATION AND ENERGY EFFICIENCY
Article 19. Contents of the State management over energy conservation and energy efficiency
1. Issuing legal normative documents on energy conservation and energy efficiency; guiding and supervising the implementation.
2. Issuing statutes, regulations on the advisory work in energy saving, energy auditing, verification for granting quality certificates and quality stamps to energy-economical products.
3. Working out policies on imports of equipment and machinery, technological transfer, organizing the studies and application of latest scientific and technological advancements in the field of economical use of energy.
4. Propaganding, disseminating information, educating and universalizing knowledge on energy conservation and energy efficiency.
5. Organizing and managing international cooperation in the field of economical use of energy.
6. Training human resources in the field of energy conservation and energy efficiency.
7. Monitoring and Evaluation of energy conservation and energy efficiency.
Article 20. State management bodies regarding energy conservation and energy efficiency
1. The Government shall unify the State management over energy conservation and energy efficiency.
The Ministry of Industry shall be responsible before the Government in implementing the State management over energy conservation and energy efficiency and have the following tasks:
a) Coordinating with concerned ministries, agencies to build the National Target Programme on Energy conservation and energy efficiency for submission to the Prime Minister for approval and managing the implementation of the programme;
b) Formulating policies and measures thereof on energy conservation and energy efficiency for submission to the Prime Minister;
c) Working out plan on energy saving on an annual basis for submission to the Prime Minister and implementing the annual plan;
d) Making a list of selected equipment, energy-economical products, products not subjected to transfers or subjected to submission to the Prime Minister for decision and announcement annually;
đ) Coordinating State management operations regarding energy conservation and energy efficiency of ministries, branches, localities;
e) Instructing the implementation of energy conservation and energy efficiency in production units, including: working out and submitting for approval plans on energy conservation and energy efficiency, reporting on the situation of energy consumption, energy auditing;
g) Issuing regulations on responsibilities of producers in ensuring requirements for operating specifications, energy consumption for each selected equipment and providing information concerning the energy-consumption productivity of the selected equipment on labels;
h) Stipulating the formality of attaching stamps certifying energy-economical products;
i) Stipulating competent organizations in providing advises on energy saving, energy auditing, verification before granting energy saving certificates or allowing the attachment of energy economical product stamps.
3. Tasks and powers of Ministries, ministerial-level agencies, governmental agencies in managing energy conservation and energy efficiency:
a) Ministries, ministerial-level agencies, governmental agencies, within their respective functions, tasks and powers, shall have the responsibility to coordinate with the Ministry of Industry in implementing the task of State management over energy conservation and energy efficiency in each respective branch and locality;
b) The Ministry for Science and Technology shall:
Issue national standards on energy consumption limits for widely used energy-consuming equipment, means;
Issue Regulations on the verification of equipment, products that meet the requirements or are in accordance with the national standards on energy consumption limits.
c) The Ministry of Construction shall:
Issue regulations and standards on energy conservation and energy efficiency in constructing multistory buildings;
Regulate the quality and insulating specification of construction materials. Instruct organizations, individuals to produce, supply, and use appropriate construction materials in order to reduce head transfer;
Instruct investors, owners of buildings, householder to apply measures for energy conservation and energy efficiency with regard to air conditioners and other machinery equipment for the purposes of ventilation, lighting, hot-water supplying equipment, and elevator.
d) The Ministry for Transportation shall:
Coordinate with the Ministry of Industry to instruct manufacturers to implement regulations on energy conservation and energy efficiency with regard to energy-consuming means in the field of transportation.
đ) The Ministry of Finance shall:
Instruct the implementation of measures and policies aiming at encouraging and supporting energy conservation and energy efficiency as prescribed in Article 15 herein.
4. Tasks and powers of provincial People’s Committees in managing energy conservation and energy efficiency:
a) Provincial People’s Committees shall implement the function of State management over energy conservation and energy efficiency in their respective localities in accordance with the instructions of the Ministries of Industry and the concerned ministries, agencies
b) Provincial People’s Committees shall regulate the functions, tasks, and operations in the field of energy conservation and energy efficiency of their respective Departments of Industry, Department of Construction.
Chapter VIII
EXAMINATION, VERIFICATION, AND HANDLING VIOLATIONS
Article 21. Report, examination
1. The key energy-consuming units shall have the responsibility to periodically report to the Department of Construction, Ministry of Construction on conditions and situation of energy consumption, equipment operation in production units as prescribed in paragraph 1, Article 6 herein. The Ministry of Industry, if necessary, shall be able to examine on the spot energy-consuming equipment together with relating profiles, documents.
2. If an energy-consuming unit fails to fully implement the requirements set out in the plan for energy conservation and energy efficiency, the Ministry of Industry shall remind the units in writing of the strict implementation of the approved plan for energy conservation and energy efficiency.
3. In order to implementing the tasks prescribed in paragraph 3, Article 8 herein, the ministry of Construction, if necessary, shall have the right to request organizations, individuals involving in designing, investing, constructing, possessing buildings to report on designs, construction issues or to examine on the spot the buildings and the relating profiles and documents.
3. In order to implementing regulations of paragraph 2, Article 11 herein, the Ministry of Industry, if necessary, shall have the right to request the manufacturers of selected equipment to report on issues relating the operating specificities of the equipment or to examine on the spot the factories, stores, and the relating profiles and documents.
5. The field examination as prescribed in paragraphs 1, 2, 3, and 4 of this Article shall be in accordance with the provisions of the laws on inspection and examinations.
Article 22. Violating acts, punishment levels
1. Pecuniary penalty from VND 1 million to 3 million with regard to the failures to clearly stating energy-consumption norms in the introducing document or on product labels by organizations, individuals.
2. Pecuniary penalty from VND 1 million to 5 million with regard to one of the following acts:
a) Producing energy-consuming equipment, means that have backward technical specifications and subjected to production suspension category;
b) Importing energy-consuming equipment, means that have backward technical specifications and subjected to import prohibition;
c) Transferring energy-consuming equipment, means subjected to dismantlement category;
d) Using fake energy-economical product stamps or conducting illegal use (without registration) energy-economical product stamps;
đ) Using energy-saving quality certificate for fake products.
3. Pecuniary penalty from VND 5 million to 10 million with regard to each of the following acts:
a) Key energy-consuming units fail to implement the plan for energy conservation and energy efficiency without proper reasons;
b) Organizations, individuals recommit acts of transferring energy-consuming equipment, means subjected to dismantlement regulations;
4. According to the nature, extent of violations, organizations, individuals committing administrative violations shall possibly be subjected one or a number of following supplement penalties:
a) Revoking the right to the use of energy-economical product stamps, energy-saving quality certificates;
b) Confiscating exhibits, means used to commit administrative violations.
5. Besides the principle penalties and supplement penalties as prescribed in paragraphs 1, 2, 3, and 4 of this Article, individuals, organizations committing administrative violations shall possibly be subjected to one or a number of following measures to overcome consequences:
a) Being forced to send out of the Vietnamese territory or re-export energy-consuming equipment, means that have backward technical specifications and subjected to import prohibitions;
b) Being forced to dismantle energy-consuming equipment subjected to dismantle category.
Article 23. Competence of handling violations
1. Provincial People’s Committees, specialist inspectors shall have the competence to handle violations of provisions set forth herein in accordance with the provisions of the Ordinance on Handling Administrative Violations.
2. If the violations come within the competence of a number of agencies, the handling shall be conducted by the first handling agency.
Article 24. Commendation, discipline
1. Organizations, individuals having good performance in energy conservation and energy efficiency shall be commended and rewarded in accordance with provisions of the laws.
2. In case of abuse of powers, self-interest, irresponsibility, such acts shall, according to their extent, be disciplined or held criminal liabilities and subjected to compensation if they cause damages in accordance with provisions of the laws.
Chapter IX
PROVISIONS FOR IMPLEMENTATION
Article 25. Effectiveness of the Decree
This Decree shall take effect within 15 days as of the date of its publication in the Official Gazette.
Article 26. Implementation
The Minister of Industry, ministers of ministries and heads of the concerned agencies as prescribed in Chapter VII herein, within their respective functions, tasks, shall have the responsibility to instruct the implementation of this Decree.
Article 27. Responsibility for implementation
Ministers, heads of ministerial-level agencies, heads of governmental agencies, Chairmen of provincial and central municipal People’s Committees shall be responsible for the implementation of this Decree./.
THE GOVERNMENT
PRIME MINISTER
(Signed)
Phan Van Khai