Law Concerning the Rational Use of Energy

Compendium on Energy Conservation Legislation
in Countries of the Asia and Pacific Region

Part Four: Selected National and State Laws and Regulations for Promotion of
Energy Conservation and Efficiency in Countries of the Asia and Pacific Region

Note: The English version of Laws and Regulations on Rational Use of Energy in Japan are periodically published by the Energy Conservation Centre of Japan (ECCJ).

The Law Concerning the Rational Use of Energy and its supplementary enforcement regulations first came into force in 1979. On various occasions the Law and the Regulations were amended.

Readers who want to obtain additional information on more recent developments in Japan concerning energy efficiency promotion may see ECCJ website on the Internet at http://www.eccj.or.jp

Article 1 (Purpose) This law was enacted for the purpose of contributing to the sound development of the national economy be setting up necessary measures for the rational use of energy by factories, buildings, machinery and equipment, and other necessary measures, etc. for promoting comprehensively the rational use of energy in order to ensure the effective use of fuel resources which will meet the economic and social environment of energy at home and aborad.

Article 2 (Definitions) "Energy" in this law means fuel and heat and electricity produced by such fuel.

2) "Fuel" in this law means those products usable for combustion such as crude oil, gasoline, heavy oil or other petroleum products as designated by the Ordinance of the Ministry of International Trade and Industry (hereinafter referred to as "MITI Ordinance"), or inflammable natural gas, coal, coke or other coal products as designated by the MITI Ordinance.

Article 3 (Fundamental Policies) The Minister of International Trade and Industry (hereinafter referred to as "Minister") shall determine and make public fundamental policies concerning the rational use of energy (hereinafter referred to as "Fundamental Policies") for the purpose of promoting comprehensively the rational use of energy at a factory or other place of business (hereinafter referred to as "Factory"), buildings machinery and equipment. <return to top>

2) The Fundamental Policies shall, in order to rationalize the use of energy, define fundamental matters concerning the measures to be taken by energy users, fundamental matters concerning the policies for promoting the rational use of energy and other matters concerning the rational use of energy in consideration of a long-term outlook of energy supply and demand, technical levels for the rational use of energy or other circumstances.

4) Before the Minister determines Fundamental Policies, the Minister shall have a consultation with the Minister of Construction as to the part of the Fundamental Policies regarding the construction, maintenance and security of buildings, and with the Minister of Transport as to the part regarding the performance of motor vehicles in relation to energy consumption.

5) The Minister shall, when necessary in accordance with changes in the circumstances described in Paragraph 2, revise the Fundamental Policies.

6) The provisions of Paragraph 1 through Paragraph 4 apply to the amendment of the Fundamental Policies according to the provisions of the preceding paragraph.

Article 3.2 (Efforts on the part of energy users) Energy users shall make efforts to rationalize their energy use in compliance with the Fundamental Policies.

Article 4 (Matters to Be Used as Standards for Judgement by an Enterprise) The Minister shall determine and make public the matters given below and the matters to be used as the standards for judgement, regarding the objective of rational use of energy, by the enterprise which uses energy at the Factory (hereinafter referred to as "Enterprise") in order to promote the rational use of energy at the Factory properly and effectively. <return to top>

2) The matters to be used as the standards for judgement as provided in the preceding paragraph shall reflect the consideration of a long-term outlook of energy supply and demand, technical levels for the rational use of energy or other circumstances, and shall be revised when necessary in accordance with changes in these circumstances.

Article 5 (Guidance and Advice) The competent minister may, in the event that it is deemed necessary in order to ensure the rational use of energy at a Factory, provide an Enterprise with guidance and advice for the implementation of the matters to be used as the standards for judgement enumerated in each item of Paragraph 1 of the preceding article, in consideration of such matters as provided in such paragraph.

Article 6 (Designation of Factory) The Minister may designate those Factories which are used for the operation of the manufacturing industry or other industry determined by a government ordinance and meet the requirements of the consumption of fuel and heat produced by such fuel (hereinafter referred to as "Fuel, etc.") determined by a government ordinance as those especially needing the promotion of rational use of Fuels, etc., and those Factories which are used for such operation and meet the requirements of the consumption of electricity determined by a government ordinance as those especially needing the promotion of rational use of electricity, respectively. <return to top>

2) The enterprise which establishes a Factory used for an operation belonging to the industry determined by a government ordinance as provided in the preceding paragraph shall, in the event that the consumption of Fuel, etc. or electricity at such Factory in the preceding year (which means the year beginning on April 1 and ending on March 31 the following year that is immediately before any year) meets the requirements determined by a government ordinance as described in such paragraph, report to the Minister the matters determined by an MITI Ordinance concerning the condition of use of Fuel, etc. or electricity at such Factory in accordance with the provisions of an MITI Ordinance. However, the above is not applicable to the Factories designated as those especially needing the promotion of rational use of Fuel, etc. in accordance with the provisions of such paragraph (hereinafter referred to as "Designated Heat Management Factory") or the Factories designated as those especially needing the promotion of rational use of electricity in accordance with such provisions (hereinafter referred to as "Designated Electricity Management Factory").

3) The enterprise (hereinafter referred to as "Designated Enterprise") which establishes a Designated Heat Management Factory or Designated Electricity Management Factory (hereafter referred to collectively as "Designated Energy Management Factory") may file an application with the Minister for the cancellation of the designation pursuant to the provisions of Paragraph 1 in accordance with the provisions of an MITI Ordinance, in the event that any one of the following situations arises with respect to such Factory:

1. Such Factory ceases the operation belonging to the industry determined by a government ordinance as provided in Paragraph 1.

2. Such Factory loses the possibility of meeting the requirements of the consumption of Fuel, etc. or electricity determined by a government ordinance as provided in Paragraph 1.

4) If an application is filed as provided in the preceding paragraph and the Minister finds that such application has a sufficient reason, the Minister shall cancel, without delay, the designation made in accordance with the provisions of Paragraph 1. The above also applies to a case where the Minister finds that any one of the situations described in such paragraph arises with respect to such Factory even if no such application is filed.

5) If the Minister makes a designation in accordance with the provisions of Paragraph 1 or cancels such a designation in accordance with the provisions of the preceding paragraph, the Minister shall notify such designation or cancellation to the minister or ministers responsible for the operation undertaken at the Factory concerned. <return to top>

Article 7 The Designated Enterprise shall, in accordance with the stipulations of an MITI Ordinance, appoint an energy manager for each Designated Energy Management Factory from among those who have received an energy manager license, pursuant to the standards determined by a government ordinance.

2) When the Designated Enterprise appoints an energy manager, it shall report such appointment to the Minister within thirty days of the date of such appointment in accordance with the stipulations of an MITI Ordinance. This also applies to a case where the energy manager dies or is dismissed.

Article 8 (Licensing of Energy Manager) There shall be two types of license for energy manager, heat manager and electricity manager licenses, which will be issued by the Minister to the individuals coming under one of the following items:

2. Those recognized by the Minister as having the knowledge and experience equal to or exceeding those of the individuals described in the preceding item.

2) The procedures for granting an energy manager license shall be determined by an MITI Ordinance.

Article 8.2 (Examination for Energy Manager) The examination for energy managers shall be carried out by the Minister for both types of licenses. The Minister may designate an organization (hereinafter referred to as the "Designated Examination Body") to carry out the affairs concerning the examination for energy manager (hereinafter referred to as "Examination Affairs").

3) The subjects of the examination for energy managers, procedures for taking such examination and any other details related to such examination shall be determined by an MITI Ordinance.

Article 9 (Duties of Energy Manager) The energy manager shall, at a Designated Heat Management Factory, be responsible for maintaining the facilities for the consumption of Fuel, etc., improving and supervising the method of using Fuel, etc. and conducting all other work as provided by an MITI Ordinance for the rational use of Fuel, etc., or shall, at a Designated Electricity Management Factory, be responsible for maintaining the facilities for the consumption of electricity, improving and supervising the method of using electricity and conducting all other work as provide by an MITI Ordinance for the rational use of electricity. <return to top>

Article 10 (Obligations of Energy Manager) The energy manager shall faithfully carry out the duties.

2) The Designated Enterprise shall respect the opinions of the energy manager about the performance of his or her duties concerning the rational use of energy.

3) The employee in the Designated Energy Management Factory shall follow any instruction given by the energy manager as necessary one in the performance of such duties.

Article 11 (Periodical Report) The Designated enterprise shall, every year in accordance with the stipulations of an MITI Ordinance, report to the Minister the matters determined by an MITI Ordinance concerning the consumption of Fuel, etc. and other conditions of consumption of Fuel, etc. and other conditions of consumption of Fuel, etc. (including the matters relating to the efficiency of use of Fuel, etc.) and conditions with respect to the installation, modification and abolition of the facilities for the consumption of Fuel, etc. and facilities for the rational use of Fuels, etc. at the Designated Heat Management Factory, and concerning the consumption of electricity and other conditions of consumption of electricity (including the matters relating to the efficiency of use of electricity) and conditions with respect to the installation, modification and abolition of the facilities for the consumption of electricity, and facilities for the rational use of electricity at the Designated Electricity Management Factory.

Article 12 (Instructions and Orders Concerning Rationalization Plan) The competent minister may, if the minister finds the rational use of energy at the Designated Energy Management Factory to be greatly insufficient in consideration of the matters to be used as the standards for judgment as provided in Paragraph 1 of Article 4, give the Designated Enterprise which operates such Designated Energy Management Factory an instruction to prepare and submit a plan of rational use of energy (hereinafter referred to as "Rationalization Plan") by indicating the basis for such finding.

2) The competent minister may, if the minister finds the submitted Rationalization Plan to be inadequate for realizing the satisfactorily rational use of energy at the Designated Energy Management Factory concerned, instruct the Designated Enterprise to revise such Rationalization Plan. <return to top>

The competent minister may, if the minister finds that the Designated Enterprise has not implemented the Rationalization Plan, instruct such Designated Enterprise to implement such Rationalization Plan properly.

The competent minister may, if the Designated Minister has failed to follow the instruction as provided in the preceding three paragraphs, make public the fact of such failure.

5) The competent minister may, if the Designated Enterprise has failed to take the measures included in the instruction as provided in Paragraphs 1 to 3 with no good reason, order such Designated Enterprise to take such measures after consulting with the council determined by a government ordinance.

Article 12.2 (Designation) The designation described in Paragraph 2 of Article 8.2 shall be made by the application of a person or organization desiring to handle Examination Affairs, in accordance with the stipulations of an MITI Ordinance.

2) The Minister shall not be directly involved in Examination Affairs after the Minister has made a designation under the provisions of Paragraph 2 of Article 8.2.

Article 12.3 (Disqualification Clause) Any person or organization coming under one of the following items shall not be eligible for any designation described in Paragraph 2 of Article 8.2:

1. The person or organization who has had his or her or its designation canceled in accordance with the provisions of Paragraph 2 of Article 12.13 within the last two (2) years.

The organization which has any officer conducting its affairs who comes under one of the following items:

a) Any person who was punished for violating this law or for ignoring the measures taken in accordance with this law and is within two (2) years from the completion of the execution of such punishment or the date when such person was executed from such punishment.

b) Any person who was dismissed in accordance with the provisions of Article 12.9 within the last two (2) years. <return to top>

Article 12.4 (Standard for Designation) The Minister shall not make a designation if another person or organization has already been designated in accordance with the provisions of Paragraph 2 of Article 8.2, and unless the Minister finds that the application for designation under such paragraph conforms to each of the following items:

1. The plan for conducting Examination Affairs, including the matters of staffing, facilities, method of implementation of Examination Affairs and other matters, shall be adequate to conduct Examination Affairs properly;

2. The accounting system and technical level shall be sufficient to implement properly the plan for conducting Examination Affairs described in the preceding item;

3. The applicant shall be a juridical person incorporated in accordance with the provisions of Article 34 of the Civil Code (Law No. 89, 1896);

4. If the applicant is to be engaged in any other affair than Examination Affairs, too, such other affairs shall not make Examination Affairs unfair.

Article 12.5 (Examination Affairs Regulations) The Designated Examination Body shall prescribe regulations for implementing Examination Affairs (hereinafter referred to as "Examination Affairs Regulations") and shall have such Examination Affairs Regulations approved by the Minister. The approval of the Minister shall also be obtained for any revision of such Examination Affairs Regulations.

2) The matters to be prescribed in the Examination Affairs Regulations shall be defined by an MITI Ordinance.

3) The Minister may, if the Minister finds that the Examination Affairs Regulations as approved in accordance with the provisions of Paragraph 1 have become inadequate for the fair implementation of Examination Affairs, order the Designated Examination Body concerned to revise such Examination Affairs Regulations.

Article 12.6 (Suspension or Discontinuance of Examination Affairs) The Designated Examination Body shall not suspend or discontinue all or part of Examination Affairs without the permission of the Minister. <return to top>

Article 12.7 (Business Plan) The Designated Examination Body shall prepare a business plan and budget for each business year prior to the start of that year (without delay after designation in the business year to which the date of designation obtained in accordance with the provisions of Paragraph 2 of Article 8.2 belongs) and obtain the approval of the Minister to such business plan and budget. The approval of the Minister shall also be obtained for any revision of such business plan and budget.

2) The Designated Examination Body shall prepare and submit to the Minister a business report and settlement of accounts for each business year within three (3) months of the end of that business year.

Article 12.8 (Election and Dismissal of Officers) The election or dismissal of officers of the Designated Examination Body shall not be effective without the approval of the Minister.

Article 12.9 (Order for Dismissal of Officers) The Minister may, if the officer of the Designated Examination Body has violated this law (including measures taken in accordance with this law) or the Examination Affairs Regulations, or has conducted any seriously inappropriate act with respect to Examination Affairs, order the Designated Examination Body concerned to dismiss such officer.

Article 12.10 (Examination Commissioner for Energy Managers) The Designated Examination Body shall have an examination commissioner for energy managers (hereinafter referred to as "Examination Commissioner") conduct Examination Affairs if such Examination Affairs are concerned with a judgement as to whether or not the applicant has enough knowledge and ability as an energy manager.

2) The Designated Examination Body shall elect the Examination Commissioner from among those with the qualifications stipulated by an MITI Ordinance.

3) When it has elected its Examination Commissioner, the Designated Examination Body shall report such election to the Minister in accordance with the stipulations of an MITI Ordinance. It shall also report to the Minister when any change occurs in the status of the Examination Commissioner.

4) The provisions of the preceding article shall also apply to the Examination Commissioner. <return to top>

Article 12.11 (Secrecy Obligation) Any officer or staff (including the Examination Commissioner; the same in the next paragraph) of the Designated Examination Body or any other person who was such officer or staff shall not disclose any secret information known to him or her with regard to Examination Affairs.

2) Any officer or staff of the Designated Examination Body engaged in Examination Affairs shall be regarded as staff engaged in public services by laws and regulations as to the application of penal regulations of the penal Code (Law No. 45, 1907) or other laws.

Article 12.12 (Order for Conformity) The Minister may, if the Minister finds that the Designated Examination Body no longer conforms to any one of the items of Article 12.4 (except Item 3; hereinafter the same in this paragraph), order such Designated Examination Body to take measures to make it conform to such item.

2) In addition to the provisions of the preceding paragraph, the Minister may, if the Minister finds it necessary in order to enforce this law, issue to the Designated Examination Body orders necessary for supervision with regard to Examination Affairs.

Article 12.13 (Cancellation of Designation) The Minister shall cancel the designation made in accordance with Paragraph 2 of Article 8.2 if the Designated Examination Body no longer conforms to Item 3 of Article 12.4.

2) The Minister may, if the Designated Examination Body comes under any one of the following items, cancel the designation made in accordance with Paragraph 2 of Article 8.2 or order such Designated Examination Body to suspend all or part of Examination Affairs fora certain period of time:

3. If the Designated Examination Body conducts Examination Affairs not pursuant to the Examination Affairs Regulations approved by the Minister under Paragraph 1 of Article 12.5;

4. If the Designated Examination Body fails to follow the order as provided in Paragraph 3 of Article 12.5 or in Article 12.9 (including the case where the provisions of Article 12.9 are applied under Item 4 of Article 12.10) or as provided in the preceding Article;

5. If the Designated Examination Body obtained by improper means the designation as described in Paragraph 2 of Article 8.2. <return to top>

Article 12.14 (Preparation of Book) The designated Examination Body shall prepare a book and record in such book the matters concerning Examination Affairs as provided in an MITI Ordinance.

2) The book referred to in the preceding paragraph shall be kept in accordance with the stipulations of an MITI Ordinance.

Article 12.15 (Examination Affairs Conducted by the Minister) The Minister shall conduct all or part of Examination Affairs in person when the Designated Examination Body suspends all or part of Examination Affairs with the permission granted in accordance with the provisions of Article 12.6, or when the Minister orders the Designated Examination Body to suspend all or part of Examination Affairs in accordance with the provisions of Paragraph 2 of Article 12.13, or when the

Minister finds it necessary in the event that it becomes necessary for the Designated Examination Body to conduct all or part of Examination Affairs due to an act of God or any other reason.

2) The MITI Ordinance shall determine the procedures for transferring Examination Affairs or any other necessary matters in the case where the Minister conducts all or part of Examination Affairs in person in accordance with the provisions of the preceding paragraph, or where the Designated Examination Body discontinues all or part of Examination Affairs with the permission as provided in Article 12.6, or where the Minister cancels the designation of the designated Examination Body in accordance with the provisions of Article 12.13.

Article 12.16 (Public Notice) The Minister shall make public notice through the official gazette the fact concerning the following cases:

1. When the Minister grants a designation in accordance with Paragraph 2 of Article 8.2;

3. When the Minister cancels the designation in accordance with the provisions of Article 12.13, or when the Minister orders the suspension of all or part of Examination Affairs in accordance with the provisions of Paragraph 2 of the same Article;

4. When the Minister conducts all or part of Examination Affairs in person in accordance with the provisions of Paragraph 1 of the preceding article, or when the Minister decides to conduct no longer all or part of Examination Affairs that the Minister has been conducting. <return to top>

Article 13 (Efforts by Owner) Any person who plans to construct a building (hereinafter referred to as "Owner") shall endeavor to contribute to the rational use of energy relating to such building by taking the following measures properly, paying attention to the stipulations of the Fundamental Policies:

1. Measures to prevent the loss of heat through the outer walls, windows, etc. of such building;

2. Measures to ensure an efficient use of energy relating to air conditioning equipment installed in such building and such other building equipment as provided by a government ordinance (hereinafter referred to as "Air Conditioning Equipment, etc.").

Article 14 (Matters to Be Used as Standards for Judgement by Owner) The Minister and the Minister of Construction shall determine and make public matters to be used as standards for judgement by the Owner concerning the measures described in each item of the preceding article in order to implement properly and effectively the rational use of energy relating to buildings.

2) The provisions of Paragraph 2 of Article 4 shall also apply to the matters to be used as standards for judgment as provided in the preceding paragraph.

Article 15 (Guidance and Advice for Building) The Minister of Construction may, if the Minister of Construction finds it necessary to ensure the proper implementation of the measures as described in each item of Article 13 with regard to buildings (excluding houses; hereinafter the same in this paragraph and Paragraph 1 of the following article), give guidance and advice to the Owner on matters relevant to the design and construction of such buildings in consideration of the matters to be used as standards for judgment as provided in Paragraph 1 of the preceding article.

2) The Minister of Construction shall, if the Minister of Construction finds it necessary to ensure the proper implementation of the measures as described in each item of Article 13 with regard to houses, determine and make public guidelines for the design and construction of houses to prevent the loss of heat through the outer walls, windows, etc. of houses and to achieve the efficient use of energy relating to Air Conditioning Equipment, etc. installed in houses, in conformity with the matters to be used as standards for judgment as provided in Paragraph 1 of the preceding article. <return to top>

Article 15.2 (Instructions for Designated Building) The Minister of Construction may, if the Minister of Construction finds that the measures to prevent the loss of heat through the outer walls, windows, etc. of such a building as comes under the requirements of the scale as provided by a government ordinance (hereinafter referred to as "Designated Building") and the measures to achieve the efficient use of energy relating to Air Conditioning Equipment, etc. installed in a Designated Building are seriously insufficient in light of the matters to be used as standards for judgment as provided in Paragraph 1 of Article 14, give the person who plans to construct a Designated Building (hereinafter referred to as "Designated Owner") instructions concerning that portion of the matters relating to the design and construction of such Designated Building which is concerned about the measures to prevent the loss of heat through the outer walls, windows, etc. of such Designated Building and the measures to achieve the efficient use of energy relating to Air Conditioning Equipment, etc. installed in such Designated Building, by indicating the basis for such finding.

2) The Minister of Construction may, if the Designated Owner has failed to follow the instructions given as provided in the preceding paragraph without any good reason, make public the fact of such failure.

Article 16 (Guidance and Advice Regarding Building Materials) The Minister may, if the Minister finds it especially necessary to ensure that buildings conform to the matters to be used as standards for judgment as provided in Paragraph 1 of Article 14 or to the guidelines as provided in Paragraph 2 of Article 15, give to the person or organization manufacturing building materials to be used in preventing the loss of heat through the outer walls, windows, etc. of buildings guidance and advice necessary for improving and indicting the quality of such building materials regarding heat insulation properties, in consideration of such matters to be used as standards for judgment or such guidelines.

Article 17 (Efforts by Manufacturer) Any person who undertakes the manufacture or import of machinery or equipment that consumes energy (hereinafter referred to as "Manufacturer, etc.") shall endeavor to contribute to the rational use of energy relating to the machinery or equipment manufactured or imported by improving the performance of such machinery or equipment relative to the energy consumption by such machinery or equipment, paying attention to the Fundamental Policies. <return to top>

Article 18 (Matters to Be Used as Standards for Judgment by Manufacturer) For some machinery or equipment consuming energy, such as motor vehicles (limited, in this paragraph, to those motor vehicles stipulated by a government ordinance as especially requiring the improvement of performance as provided in the preceding article) or other machinery or equipment used in large quantities in Japan and consuming a considerable amount of energy in their operation which are stipulated by a government ordinance as especially requiring the improvement of performance (hereinafter referred to as "Designated Machinery"), the Minister (the Minister and the Minister of Transport in the case of motor vehicles; hereinafter the same in this chapter and Paragraph 5 of Article 25) shall determine and make public the matters to be used as standards for judgment by Manufacturers, etc. with regard to the improvement of such performance for each Designated Machinery.

2) The provisions of Paragraph 2 of Article 4 shall also apply to the matters to be used as standards for judgment as provided in the preceding paragraph.

Article 19 (Recommendation for Improvement of Performance) The Minister may, if the Minister finds it necessary to improve to a considerable extent the performance of the Designated Machinery manufactured or imported by a Manufacturer whose production or import of Designated Machinery comes under the requirements determined by a government ordinance in accordance with the provisions of Article 17, in light of the matters to be used as standards for judgment as provided in Paragraph 1 of the preceding article, make recommendations to such Manufacturer on the improvement of such performance of such Designated Machinery manufactured or imported by such Manufacturer.

Article 20 (Product Labeling) The Minister shall determine and make notification of the matters enumerated below for each Designated Machinery as to the Designated Machinery (excluding household articles as provided in Item 1 of Paragraph 1 of Article 2 of the Household Articles Quality Labeling Law (Law No. 104, 1962); hereinafter the same in this article and in the following article):

1. Matters to be labeled by the Manufacturer, etc. with respect to the energy consumption efficiency of the Designated Machinery (the value calculated in accordance with the provisions of an MITI Ordinance (in the case of motor vehicles, an MITI Ordinance and an ordinance of the Ministry of Transport) as the performance of the Designated Machinery in relation to energy consumption; hereinafter the same);

2. Matters to be observed by the Manufacturer, etc., such as the method of product labeling or other aspects regarding the labeling of energy consumption efficiency. <return to top>

Article 21 (Recommendation and Orders Regarding Product Labeling) The Minister may, if the Minister finds that the Manufacturer, etc. has failed to label the energy consumption efficiency of Designated Machinery in accordance with the notification made as provided in the preceding article, recommend that such Manufacturer, etc. should label the energy consumption efficiency of the Designated Machinery manufactured or imported by such Manufacturer, etc. in accordance with such notification.

2) The Minister may, if the Manufacturer, etc. has failed to follow the recommendation made as provided in the preceding paragraph, make public the fact of such failure.

3) The Minister may, if the Minister finds that the failure of the Manufacturer, etc. to take measures in compliance with the recommendation made as provided in Paragraph 1 will be seriously harmful to the rational use of energy relating to the Designated Machinery concerned, order such Manufacturer, etc. to take measures in compliance with such recommendation after listening to the opinions of a council determined by a government ordinance.

Article 21.2 (Affairs for Rational Use of Energy) The New Energy and Industrial Development Organization (hereinafter referred to as "Organization") shall conduct, in addition to conducting the affairs as provided in Paragraph 1 and 2 of Article 39 of the Law concerning the Promotion of Development and Introduction of Alternative Energies (Law No. 71, 1980; hereinafter referred to as "Alternative Energies Law"), the following affairs in order to promote the rational use of energy:

1. To develop the technology for the rational use of energy whose industrial use is especially needed from the standpoint of the national economy;

2. To provide subsidies as the funds needed in the introduction of the technology for the rational use of energy whose diffusion is especially necessary;

3. To provide guidance on the collection and distribution of information regarding the rational use of energy and on the technology for the rational use of energy;

4. To conduct all affairs pertinent to the affairs enumerated in each of the preceding items. <return to top>

Article 21.3 (Special Rules regarding the Alternative Energies Law) When the Organization conducts its affairs in accordance with the provisions of the preceding article, "Item 1 and 9 of Paragraph 1 of preceding article" in Paragraph 1 of Article 40 of the Alternative Energies Law shall read "Items 1 and 9 of Paragraph 1 of the preceding article and Item 1 of Article 21.2 of the Law concerning the Rational Use of Energy (hereinafter referred to as "Rational Use Law"), "Paragraph 1 of Article 39" in Paragraph 1 of Article 41 of the Alternative Energies Law shall read "Paragraph 1 of Article 39 and Article 212 of the Rational Use Law", "this law" in Paragraph 2 of Article 53 and Paragraph 1 of Article 54 of the Alternative Energies Law shall read "this law or the Rational Use Law", and Paragraph 1 of Article 39" in Item 3 of Article 59 of the Alternative Energies Law shall read "Paragraph 1 of Article 39 and Article 21.2 of the Rational Use Law".

Chapter 5 Miscellaneous Provisions

Article 22 (Budgetary Measures) The state shall endeavor to take budgetary, financial and tax measures necessary to promote the rational use of energy, etc.

Article 23 (Promotion of Science and Technology) The state shall endeavor to take necessary measures in order to promote science and technology helpful to the rational use of energy, etc., such as the promotion of research and development and provision of the results of such research and development.

Article 24 (Measures for Increasing Public Awareness) The state shall endeavor through educational, publicity and other activities, to increase public awareness regarding the rational use of energy and to secure public cooperation in performing such activities.

Article 25 (Reports and On-site Inspections) The Minister may, to the extent necessary for enforcing the provisions of Paragraph 1 and 4 of Article 6, request any person engaged in the industry determined by a government ordinance as provided in Paragraph 1 of the same article to submit a report concerning the operating conditions at such person's Factory, in accordance with the stipulations of a government ordinance.

2) The competent Minister may, to the extent necessary for enforcing the provision of Article 12, request the Designated Enterprise to submit a report concerning the operating conditions of the Designated Energy Management Factory, or have ministry staff visit the Designated Energy Management Factory to inspect equipment consuming energy, books, documents or other materials, in accordance with the stipulations of a government ordinance.

3) The Minister may, to the extent necessary for enforcing the provisions of Section 2 of Chapter II, request the Designated Examination Body to submit a report concerning the conditions of its affairs or accounts, or have ministry staff visit the office of the Designated Examination Body to inspect books, documents or other materials. <return to top>

4) The Minister of Construction may, to the extent necessary for enforcing the provisions of Article 15.2, request the designated Owner to submit a report concerning the matters with regard to the design and construction of the Designated Building, or have ministry staff visit such Designated Building or its construction site to inspect such Designated Building, construction equipment, documents or other materials, in accordance with the stipulations of a government ordinance.

5) The Minister may, to the extent necessary for enforcing the provisions of Article 19 and 21, request the Manufacturer, etc. of Designated Machinery to submit a report concerning the operating conditions relating to Designated Machinery, or have ministry staff visit the office, factory or warehouse of such Manufacturer, etc. of Designated Machinery to inspect such Designated Machinery, books, documents or other materials, in accordance with the stipulations of a government ordinance.

6) Any ministry staff member conducting on-site inspections as provided in Paragraph 2 through the preceding paragraph shall carry with him or her an identity card indicating his or her authority and show such card to the person concerned.

7) The authorization to conduct on-site inspections as provided in Paragraphs 2 through 5 shall not be constructed as the authority to carry out criminal investigations.

Article 25.2 (Fee) Any person desiring to take the examination for energy manager, or any person desiring to obtain the recognition provided in Item 2 of Paragraph 1 of Article 8, or any person desiring to receive the license of energy manager after having passed the examination for energy manager conducted by a Designated Examination Body, or any person desiring to renew the license of energy manager, shall pay a fee in the amount stipulated by a government ordinance in consideration of the actual expenses.

2) The fee provided in the preceding paragraph shall be treated as the revenue of the Designated Examination Body when such a fee is paid by a person taking the examination for energy manager, or as the revenue of the National Treasury in all other cases. <return to top>

Article 25.3 (Hearings) The Minister shall, when the Minister takes measures in accordance with the provisions of Article 129 (including the case where these provisions apply as provided in Paragraph 4 of Article 12.10) or of Article 12.13, hold a public hearing for the person involved, providing a sufficient advance notice.

2) The advance notice as provided in the preceding paragraph shall include the data, place and agenda of the public hearing.

3) At the public hearing, the Minister shall give the person involved in the measures concerned and other interested parties the opportunity to submit supporting evidence and to express their opinions.

Article 25.4 (Appeal against Measures Taken by Designated Examination Body) Any person who has a complaint against the disposition with respect to Examination Affairs adopted by a Designated Examination Body (excluding disposition concerning examination results) or against a forbearance of such Designated Examination Body may request the Minister to review such disposition or forbearance in accordance with that Administrative Appeal Law (Law No. 160, 1962).

Article 26 (Mandate of Interim Measures to Orders) In the event that an order is enacted, revised or repealed in accordance with this law, necessary interim measures (including interim measures concerning penal regulations) may be determined by such order, to the extent considered to be reasonably necessary as a result of such enactment, revision or repeal.

Article 27 (Competent Minister) The competent ministers in this law shall be the Minister of International Trade and Industry and any other minister having jurisdiction over the operation of the Factory concerned.

2) The authorization as provided in this law may be delegated to the senior official of a regional bureau or office or department in accordance with the stipulations of a government ordinance. <return to top>

Article 27.2 Any person who has violated the provisions of Paragraph 1 of Article 12.11 shall be punished by imprisonment with hard labor not exceeding one(1) year or a fine not exceeding one million (1,000,000) yen.

Article 27.3 In a case of violation of the order to suspend Examination Affairs issued as provided in Paragraph 2 of Article 12.13, the officer of staff member of the Designated Examination Body who has committed such violation shall be punished by imprisonment with hard labor not exceeding one (1) year or a fine not exceeding one million (1,000,000) yen.

Article 28 Any person who comes under one of the following items shall be punished by a fine not exceeding five hundred thousand (500,000) yen:

2. Any person who has violated the provisions of Paragraph 5 of Article 12 or Paragraph 3 of Article 21.

Article 29 Any person who comes under one of the following items shall be punished by a fine not exceeding three hundred thousand (300,000) yen:

1. Any person who has failed to report in accordance with the provisions of Paragraph 2 of Article 6, or who has submitted a false report;

2. Any person who has failed to report in accordance with the provisions of Article 11 or Paragraph 1, 2, 4 or 5 of Article 25, or who has submitted a false report, or any person who has refused, obstruct or evade the inspection as provided in Paragraph 2, 4 or 5 of Article 25.

Article 29.2 Any officer or staff member of the Designated Examination Body who has committed any of the violations enumerated in the following items shall be punished by a fine not exceeding three hundred thousand (300,000) yen:

1. When such person or staff member has discontinued all of the Examination Affairs without permission as provided in Article 12.6;

2. When such person or staff member has not prepared any books nor has entered no records in the book or has made false records in the book in violation of the provisions of Paragraph 1 of Article 12.14, or has not kept any books in violation of the provisions of Paragraph 2 of the same article;

3. When such person or staff member has failed to report in accordance with the provisions of Paragraph 3 of Article 25 or has submitted a false report, or has refused, obstruct or evade the inspection in accordance with the same paragraph.

Article 30 In the event that a representative of a juridical person or a proxy, servant or other employee of a juridical person or person has committed a violation as provided in Article 28 or 29 in connection with the affairs of such juridical person or person, not only such representative or proxy, servant or other employee but also such juridical person or person shall be subjected to an applicable punishment as provided in this article.

Article 31 Any person who has failed to report in accordance with the provisions of Paragraph 2 of Article 7 or has submitted a false report shall be punished by a fine not exceeding one hundred thousand (100,000) yen.