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Energy Law of the People’s Republic of China (draft for comments)

Published on: April 3, 2020

Original title: 国家能源局关于《中华人民共和国能源法(征求意见稿)》公开征求意见的公告
Links: Source document (in Chinese) (link).

NB: This is a preliminary translation that is still being polished.

Since 2017, under the guidance of the Legislative Affairs Office of the State Council and the Ministry of Justice, the National Development and Reform Commission and the National Energy Administration organized the establishment of an expert group and special working group to further revise and improve the revised draft of the "Energy Law of the People's Republic of China (Draft for Review)", and has created this new "Energy Law of the People's Republic of China (Draft for comments)", which is now open to the public for comments again。

Relevant organizations and any person are welcome to submit their valued comments and suggestions on the "Energy Law of the People's Republic of China (Draft for comments)" by email ([email protected]) before May 9, 2020。

Thank you for your participation and support!

Annex:1. Energy Law of the People’s Republic of China (draft for comments)

2. Explanation on drafting process for the "Energy Law of the People’s Republic of China (Draft for Comments)"

 

National Energy Administration

April 3, 2020

Annex 1

 

Energy Law of the People’s Republic of China (draft for comments)

Chapter I General Provisions
Chapter 2 Energy Strategy and Planning
Chapter 3 Energy Development and Energy Conversion
Section 1 General Provisions
Section 2 Fossil Energy
Section 3 Non-fossil Energy
Chapter 4 Energy Supply and Utilization
Chapter 5 Energy Market
Chapter 6 Energy Security
Chapter 7 Technological Progress
Chapter 8 International Cooperation
Chapter 9 Supervision and Management
Chapter 10 Legal Liability
Chapter 11 Supplementary Provisions

Chapter I General Provisions

Article 1 〔Legislative purpose〕

This law is enacted in accordance with the constitution with a view to standardizing the development, utilization, supervision and administration of energy, ensuring energy security, optimizing energy structure, improving energy efficiency and promoting high-quality development of energy。

Article 2 Scope of applicability

This Law shall apply to the activities of energy development, utilization and supervision and management in the territory of the People's Republic of China and other maritime areas under its jurisdiction。

If other laws provide otherwise for energy development and utilization and supervision and management, its provisions shall apply。

Article 3 〔Strategy and System〕

Energy development and utilization should be adapted to ecological civilization, implement the concepts of innovation, coordination, greenness, openness and sharing of development, follow the development direction of promoting the consumption revolution, supply revolution, technological revolution, institutional revolution and all-round strengthening of international cooperation, implement the energy development strategy that is priority, based on domestic, green low carbon and innovation- driven, and build a clean, low-carbon, safe and efficient energy system。

Article 4 〔Structural Optimization〕

The State adjusts and optimizes the energy industry structure and consumption structure, gives priority to the development of renewable energy, develops nuclear power safely and efficiently, increases the proportion of non-fossil energy, and promotes the clean and efficient use of fossil energy and low-carbon development。

Article 5 〔Scientific and Technological Innovation〕

The State formulates economic policies on energy technology, conducts economic evaluation of new technology routes, encourages and supports research, development and application of energy science and technology, and promotes independent innovation and industrialization of energy science and technology。

Article 6 〔Safety Reserves and Emergency Responses〕

The State shall establish and improve the energy security reserve system, effectively control the development of strategic energy resources, improve the construction of strategic energy transportation channels and safety protection measures, improve the mechanism of early warning and emergency disposal of energy forecasts, enhance energy security and emergency disposal capabilities, and ensure energy security。

Article 7 〔Production Safety〕

The management of energy safety production should be people-oriented and adhere to safe development。Adhere to the principle of safety first, prevention first and comprehensive management, strengthen the implementation of the main responsibility of safe production, establish and improve the rules and regulations on safe production, strengthen the supervision and management of safe production, implement the responsibility of territorial supervision and department supervision, ensure safe production input, prevent and reduce production safety accidents。

Article 8 〔Regulation of Activities〕

Engaged in activities such as energy planning, survey, design, construction, production, processing conversion, storage, transportation, trading, supply and use shall comply with this Law and relevant laws and administrative regulations, improve the conditions for energy development and utilization, produce energy safely and efficiently, make scientific and rational use of energy and improve the efficiency of energy use。

Article 9 〔Land Use for Construction〕

Energy construction should effectively protect cultivated land and conserve land。Where land is to be expropriated or requisitioned, compensation or resettlement shall be made in accordance with the law。

Article 10 〔Professional Services〕

Units and individuals providing professional services for energy development and utilization shall provide professional and technical and management services in accordance with laws, administrative regulations and practice guidelines, and shall be responsible for the results of the services。

Article 11 〔Trade Associations〕

The relevant trade associations shall, in accordance with laws, administrative regulations and articles of association, provide energy technology, information and training services to relevant units and individuals, and play the role of self-discipline in the industry。

Article 12 〔Universal Service〕

The State has improved the universal energy service mechanism to ensure citizens' access to basic energy supplies and services。

Article 13 〔Supporting Rural Energy〕

In accordance with the principles of co-ordination of urban and rural areas, local conditions, multi-energy complementarities, comprehensive utilization and upgrading of services, the State formulates policies to support rural energy development, increase rural clean and high-quality energy supply, and improve the level of energy services。

The state supports the development of rural energy resources, promotes the use of renewable energy according to local conditions, improves the energy conditions for farmers' cooking, heating and other energy use, improves the efficiency of rural production and living energy, and increases the proportion of clean energy in rural energy consumption。

Article 14 〔Energy Marketization〕

The state insists on exerting the decisive role of the market in the allocation of resources, constructing the market structure and market mechanism of effective competition, forming the mechanism in the competitive field which mainly determines energy prices by the market, and establishing an effective energy supervision system。

The investment, operation and management subjects engaged in energy development and utilization activities shall compete fairly, and their legitimate rights and interests shall be protected by law。

Article 15 〔Supply Guarantee〕

The state supports energy infrastructure construction, improves energy security capacity, ensures a stable, reliable and effective supply of energy, and meets reasonable energy consumption needs。

Article 16 〔Supervision and Management〕

The competent department of energy under the State Council shall supervise and manage the energy development and utilization activities of the whole country in accordance with the duties stipulated in this Law and the State Council。

The competent energy department of the local people's government at or above the county level shall, in accordance with this Law and the duties prescribed by the people's government at the corresponding level, exercise supervision and management over energy development and utilization activities in the administrative areas。

The relevant departments of the State Council shall, within the scope of their respective duties and responsibilities, supervise and manage the energy development and utilization activities of the relevant industries and fields within the scope of their respective duties;the relevant departments of the local people's government at or above the county level shall supervise and manage the energy development and utilization activities in related industries and fields within the scope of their respective responsibilities in accordance with this Law and other relevant laws, administrative regulations and the responsibilities prescribed by the people's government at this level。

Article 17 〔Standardization〕

The departments in charge of standardization under the State Council, the competent departments of energy under the State Council and the competent departments of relevant industries shall actively formulate advanced energy standards, improve the energy standard system and raise the level of energy standardization。

Article 18 〔Energy Conservation〕

The State shall adopt legal, economic, administrative and publicity and education measures to ensure energy resource conservation and efficient development and utilization, promote energy conservation in key areas and key links, and reasonably control the total amount of energy consumption。

The State encourages units and individuals to develop and utilize renewable energy sources。The competent department of energy under the State Council and the relevant departments under the State Council shall coordinate to support the comprehensive development of energy resources。Relevant units and individuals shall support the development of symbiotic and associated energy mineral resources。

Energy users should establish a sense of energy conservation and energy conservation。Users who pay for energy use with financial funds should become demonstration users of energy conservation;other users should strengthen energy conservation。

Article 19 〔Environmental Protection and Climate Change〕

Strengthening capacity-building in the energy sector for climate change mitigation and adaptation。

The state has stepped up its monitoring of pollutants and greenhouse gas emissions in the energy sector。Energy enterprises shall strengthen the control and control of the source of pollution and the prevention and control of environmental risks, reduce the damage to the ecological environment in the process of energy development and utilization, and reduce pollutants and greenhouse gas emissions;energy users shall reduce pollutant emissions and greenhouse gas emissions in the process of energy use。

Article 20 〔International cooperation〕

The State adheres to the principle of equality and mutual benefit, win-win cooperation and coordinated security, and strengthens international cooperation in all aspects。

Article 21 〔Information Disclosure and Publicity and Education〕

The State shall establish and improve the system of information disclosure in the field of energy, and clarify the scope, content, methods and procedures of information disclosure。Major planning and energy projects should be well communicated and publicly engaged。

National organizations carry out the dissemination and education of energy knowledge。

Chapter 2 Energy Strategy and Planning

Article 22 〔Status and Content of Energy Strategy〕

The national energy strategy is the overall strategy to guide the sustainable development of energy and ensure energy security, and it is the basic basis for the formulation of energy planning, policies and measures。

The national energy strategy is formulated in accordance with basic national conditions, national defense security, economic and social development needs, environmental protection needs and domestic and foreign energy development trends。

The energy strategy involving the layout of major projects should be subject to environmental impact demonstration in the formulation process and the views of relevant units, experts and the public should be heard in an appropriate form。

The national energy strategy should define the strategic thinking, strategic objectives, strategic layout and strategic focus of national energy development。

Article 23 〔Planning System〕

The State prepares and implements energy plans in accordance with the energy strategy to ensure the realization of the national energy strategy。

Energy planning includes integrated energy planning, sub-sector energy planning and regional energy planning。Sub-sector energy planning and regional energy planning should be subject to integrated energy planning。Regional energy planning and sub-sector energy planning should be coordinated。

The people's governments at or above the county level shall incorporate energy development into the national economic and social development plans and annual plans。

Article 24 〔Preparation and content of the National Comprehensive Energy Plan〕

The national comprehensive energy plan shall be prepared in accordance with the national economic and social development plan and the national energy strategy, and shall be connected with the relevant plan。

The national comprehensive energy plan shall be prepared by the energy department under the State Council and submitted to the State Council for approval for implementation after examination and approval by the development and reform department of the State Council。

Article 25 〔Preparation of national sub-sector energy planning〕

The national sub-sector energy planning shall be prepared and implemented by the energy department under the State Council in conjunction with the development and reform department of the State Council, in accordance with the national comprehensive energy planning organization。

Article 26 〔Preparation of regional energy plans〕

The competent department of energy under the State Council shall organize the relevant departments of the relevant provincial people's governments to prepare corresponding regional energy plans in accordance with the needs of regional economic and social development, as well as the endowment of energy resources and the characteristics of energy production and consumption。Regional energy planning should be in line with the national comprehensive energy plan and linked to the national sub-sector energy planning。

Regional energy planning involving national layout, total control and cross-provincial transport shall be approved by the competent department of energy under the State Council after the layout and total balance of the total amount shall be carried out by the development and reform department of the State Council。

Article 27 〔Preparation of local energy planning〕

The energy department of the provincial people's government shall prepare the provincial energy plan in accordance with the comprehensive energy plan of the whole country and the social economic development needs of the administrative region 。Provincial energy planning should be linked to national sub-sector energy planning and related regional energy planning。Among them, the provincial comprehensive energy planning shall be approved by the energy department under the State Council。

Article 28 〔Public Participation〕

The preparation of energy planning shall seek the opinions of relevant units, experts and the public for scientific demonstration。Where energy planning shall conduct an environmental impact assessment in accordance with the law, it shall be implemented in accordance with the scope approved by the State Council。

Energy plans shall be published in a timely manner, except for those required by the State to be kept confidential。

Article 29 〔Supervision and Inspection of Planning〕

The competent department of energy under the State Council and the provincial people's government shall strengthen supervision and inspection of the implementation of energy planning。

Article 30 〔Assessment and revision of the Plan〕

The energy planning department shall organize and carry out an assessment of the implementation of energy planning, revise the energy plan in due course according to the needs or assessment results, and report it to the original planning approval authority for implementation。

 

Chapter 3 Energy Development and Energy Conversion

Section I General Provisions

Article 31 〔Basic Principles〕

Energy development and energy conversion should follow the principles of rational layout, optimization of structure, conservation, efficiency, and clean and low carbon。

The State encourages units and individuals to invest in energy development and energy conversion projects in accordance with the law to protect the legitimate rights and interests of investors 。

Article 32 〔Optimizing the Energy Structure〕

The State encourages efficient and clean development and utilization of energy resources, supports the priority development of renewable energy sources, rational development of fossil energy resources, develops distributed energy sources according to local conditions, promotes alternative fossil energy to fossil fuels, low-carbon energy alternatives to high-carbon energy, and supports the development of new fuels and industrial raw materials for the application of alternative oil and natural gas。

Article 33 〔Development and Conversion Management〕

The State shall strengthen the supervision and management of energy development and energy conversion activities, and the competent departments of energy shall, together with the relevant departments, regulate the order of energy development and processing conversion and protect energy resources。

Where an administrative license is required by law, administrative regulations or the State Council to engage in energy development and processing conversion activities, it shall be in accordance with its provisions 。

Article 34 〔Safe Production, Environmental Protection and Climate Change〕

Units and individuals engaged in energy development, processing and conversion activities shall abide by laws and administrative regulations on safe production, occupational health and environmental protection, strengthen the management of safe production, reduce the consumption of resources, control and control pollution, reduce greenhouse gas emissions and protect the ecological environment。

Energy development and energy conversion construction projects shall be evaluated in accordance with the law。Energy-saving and environmental protection facilities, occupational health protection facilities and safety facilities of construction projects shall be designed, constructed at the same time, put into production or use at the same time as the main project。

Units and individuals engaged in energy development and processing and conversion activities shall fulfill their obligations for pollution control, ecological protection or land reclamation in accordance with the law。

Article 35 〔Ecological Compensation for Energy Development and Utilization〕

People's governments at all levels shall formulate plans and measures for pollution control, ecological restoration and land reclamation in major construction projects for energy development and processing conversion, and improve the relevant ecological protection compensation mechanism。

Article 36 〔Tax System〕

The state will establish and improve the system of energy-related taxes and fees, promote energy resource conservation, guide the rational development of energy resources, and guide the development of clean and low-carbon energy sources such as non-fossil energy。

Section 2 Fossil Energy

Article 37 〔Fossil Energy Surveys〕

The state has strengthened the exploration of fossil energy sources such as coal, oil and gas, and carried out rational development of fossil energy。

Article 38 〔Principles for the Development of Fossil Energy〕

The development and processing of coal, oil and gas should follow safe, green, intensive and efficient principles and improve the recovery rate of resources and the level of clean and efficient development and utilization。

Article 39 〔Coal Development and Utilization〕

Coal development and utilization adhere to unified planning, overall survey, orderly development, clean and efficient use 。The state optimizes the layout and production structure of coal development, promotes safe green mining of coal, encourages the development of circular economy in mining areas, promotes the clean and efficient use of coal, and appropriately develops coal-based fuels and chemical raw materials。

The state carries out protective mining of special and scarce coal species and encourages the priority mining of coal bed methane and the extraction and utilization of coal mine gas。

Article 40 〔Oil and Gas Development〕

Oil and gas development adheres to the land and offshore co-emphasis, and accelerates the development of offshore oil and gas fields。Oil and natural gas production enterprises shall adopt advanced technology。The State encourages the economic and effective development of unconventional and low-grade oil and gas resources such as dense oil and gas, shale oil, shale gas and coal seam gas, and encourages new theoretical research and research and reserve of new technologies for oil and gas exploration and development。Under the premise of protective development, the market subjects that meet the access requirements are allowed to participate in oil and gas exploration and exploitation 。

The state encourages large-scale, advanced and intensive oil processing conversion methods to optimize the layout and structure of the petroleum processing and conversion industry。

Article 41 〔Natural Gas Utilization〕

The energy department under the State Council, in conjunction with the relevant departments under the State Council, shall take measures to actively and rationally develop natural gas, optimize the structure of natural gas utilization and increase the proportion of natural gas in primary energy consumption。

Article 42 〔Thermal Power Development〕

The competent energy departments shall take measures to develop clean, safe and efficient thermal power generation and related technologies, improve energy efficiency, reduce pollutant emissions, optimize the structure of thermal power generation, and in accordance with local conditions, develop cogeneration of heat and power, tri-generation of heat, cooling and power, and co-generation of heat, power, and gas。

Section 3 Non-Fossil Energy

Article 43 〔Accelerating the Development of Non-fossil Energy〕

The relevant departments of the State Council shall take measures to promote the development of non-fossil energy sources such as renewable energy and nuclear energy, and monitor the annual target of the proportion of non-fossil energy to primary energy consumption。

Article 44 〔Renewable Energy Target System〕

The State has listed renewable energy as a priority area for energy development, formulated the national target for medium- and long-term total development and utilization of renewable energy and the target of the proportion of renewable energy in primary energy consumption, included binding targets in the national economic and social development plan and annual plan, and decomposed it into provinces, autonomous regions and municipalities directly under the Central Government。The competent department of energy under the State Council shall, together with the relevant departments of the State Council, monitor the implementation of the provinces, autonomous regions and municipalities directly under the Central Government and conduct annual assessments。

Article 45 〔System for the Guaranteed Consumption of Renewable Energy〕

The State has established a system of renewable energy electricity conservation, which sets a minimum weight target for the consumption of renewable energy in the electricity consumption of the provinces, autonomous regions and municipalities directly under the Central Government。Power supply, power sales enterprises and power users involved in market-oriented transactions shall complete the minimum weight index in their region。

Market subjects that have not completed the minimum proportion of renewable energy generation may fulfill their obligations through market-oriented trading to purchase quotas from over-completed market subjects。The relevant departments of the State Council shall adjust the subsidy policy for renewable energy generation according to the transaction situation。

Article 46 〔Renewable Energy Incentive Policy〕

The State formulates relevant fiscal, financial and price policies to support the development and utilization of renewable energy。

Article 47 〔Renewable Energy Development〕

The state implements the development of water energy resources in the basin rungs, actively and orderly lying under the premise of ecological priority, actively and orderly, moderately develops small and medium-sized hydropower stations, adheres to the principle of combining centralized and distributed, local digestion and delivery, and develops wind and solar power generation efficiently according to local conditions。The State encourages the promotion of geothermal and solar thermal utilization and actively promotes the development of marine energy。

The State encourages the development and utilization of renewable energy in cities and towns and rural areas, and the construction of a multi-functional and complementary distributed clean energy supply system。

Article 48 〔Corporate Guarantee Obligations〕

The State implements a system of prioritized access to the grid for renewable energy generation and guaranteed acquisition of power generation in accordance with the plan。Power grid enterprises should strengthen the construction of the power grid, expand the scope of renewable energy allocation, develop smart power grid and energy storage technology, and establish an energy-saving and low-carbon power dispatch and operation system。

Oil sales enterprises shall incorporate bioliquid fuels that meet national standards into their fuel sales systems。Urban energy infrastructure, such as thermal and gas pipe networks, shall receive renewable energy heat or gas that conforms to the technical standards for access to the network。

Article 49 〔Nuclear Power Development〕

The state adheres to the safe and efficient development of nuclear power, follows the principle of safety first, and strengthens the management and supervision of nuclear power planning, site selection, pre-construction, design, construction, operation and decommissioning。

Market access for investment and operation of nuclear power projects shall be stipulated by the State Council。

The energy department under the State Council coordinates the development and layout of nuclear power throughout the country, strengthens the protection of resources at nuclear power plant sites, promotes research and development of advanced nuclear power technologies and equipment and self-innovation, promotes advanced and mature nuclear power technology, promotes the technological progress and industrialization of nuclear power, and accelerates the training of nuclear power professionals。

Article 50 〔Nuclear Power Safety〕

Relevant departments, relevant enterprises and institutions of the State Council shall, in accordance with relevant laws and administrative regulations, strengthen the safety and emergency management of nuclear power, strengthen nuclear safety supervision, strengthen the emergency preparedness and response system for nuclear accidents and the construction of a safety culture of nuclear power plants, and ensure the safe and efficient development of nuclear power。The nuclear facility operators have full responsibility for nuclear safety。

 

Chapter 4 Energy Supply and Utilization

Article 51 〔Infrastructure Construction〕

People's governments at or above the county level shall support energy infrastructure construction, protect energy infrastructure, ensure the smooth flow of energy transmission and improve energy supply capacity。

The competent department of energy under the State Council shall coordinate with the relevant departments of the State Council the construction of energy infrastructure such as oil, gas and power transmission networks across provinces, autonomous regions and municipalities directly under the Central Government;the relevant provincial people's governments shall, in accordance with the energy plan, reserve land for energy infrastructure construction and incorporate land use planning and urban and rural planning, and establish a dynamic adjustment mechanism between relevant plans。

Article 52 〔Rural Energy Construction〕

The state supports the development and utilization of rural energy, infrastructure and service systems, and improves the capacity and service level of rural energy supply 。The state focuses on supporting the construction of rural energy for ethnic minorities, remote and poor areas。

In the event of a shortage of energy supply, people's governments at all levels shall take emergency measures and coordinate energy enterprises to give priority to ensuring agricultural production and rural living energy。

Article 53 〔Management of the Pipeline Network〕

The facilities of energy transmission and pipeline networks such as power grids and oil and gas pipeline networks shall improve the fair access mechanism and open fairly and non-discriminatory to qualified energy production and sales enterprises and other market subjects in accordance with the law。

No organization or individual may restrict the market subject from applying for access to the energy transmission network in accordance with the relevant provisions of the State。

The State will strengthen the overall planning of the pipe network and promote the interconnection of pipelines。The facilities, equipment and products connected to the energy pipeline network shall comply with national standards 。

Article 54 〔Regulation of Enterprise Services〕

Energy supply enterprises shall operate in accordance with the law, ensure the quality of service, meet reasonable needs, accept the supervision of energy users and the public, and assume corresponding social responsibilities。

Article 55 〔Enterprise Supply Requirements〕

Enterprises undertaking energy supply such as electricity, gas and heat shall ensure that users in their business areas have access to safe, sustainable and reliable energy supply services, and shall not refuse or interrupt energy supply services without statutory or agreed reasons;if the service cannot be provided temporarily due to force majeure or other reasons, remedial measures shall be taken in a timely fashion, and the cause and effects shall be reported to the competent government department and publicly announced;if operations are ceased, settlement work should be done in accordance with the relevant state regulations。

Article 56 〔Disclosure of Information of Supply Enterprises〕

Enterprises that undertake energy supply such as electricity, gas and heat shall publicize the cost of their services, service norms, charging standards and complaint channels at their places of business and through other means that are accessible to the public through the Internet, and provide public inquiry services to users。

Article 57 〔User Obligations〕

Energy users of electricity, gas and heat shall use energy in accordance with the safe use norms and energy conservation requirements, and shall pay the fees in accordance with the provisions or agreed prices of the State。

Article 58 〔Universal Service〕

Enterprises undertaking energy supply such as electricity shall fulfill their corresponding universal service obligations in accordance with the relevant provisions of the State 。

The specific measures for compensation for universal services for energy shall be formulated by the competent department of energy under the State Council in conjunction with the financial department under the State Council, the competent price department and other relevant departments, and shall be promulgated and implemented after approval by the State Council。

Article 59 〔Mandatory Information Disclosure of Key Energy-Using Enterprises〕

The department seeking energy conservation shall, in conjunction with the relevant departments, publish the list of key energy-using enterprises in accordance with the law, require them to report on energy use and publish information on energy efficiency and energy consumption per unit of products。

Article 60 〔Demand-Side management〕

The people's governments at or above the county level are responsible for organizing the side management of energy demand in accordance with market rules。Energy supply enterprises shall implement the relevant provisions of the State on the side management of energy demand, and energy users shall cooperate with the energy demand side management。

Article 61 〔Obligations for Energy Conservation and Emission Reduction〕

Energy supply enterprises and energy-using units shall fulfill their obligations on environmental protection and energy conservation and emission reduction。Enterprises and units that have not completed energy conservation and emission reduction targets shall conduct energy audits or clean production audits in accordance with the law。

Article 62 〔Energy-saving Government Procurement〕

Government procurement should give priority to the procurement of products and services that use renewable energy, new energy, and energy-saving。

Article 63 〔Consumer Management Policy〕

The state supports the establishment of a green energy consumption market and encourages units and individuals to purchase clean and low-carbon energy sources such as renewable energy。

 

Chapter 5 Energy Market

Article 64 〔Market Entities〕

Natural monopoly business in the field of energy shall be operated separately from competitive business, and all types of investment entities shall be encouraged to participate in energy development and utilization activities and infrastructure construction on an equal footing in accordance with the law。

Article 65 〔Market Construction Objectives〕

The state distinguishes the characteristics of different energy varieties, promotes the construction of energy markets such as coal, electricity, oil and natural gas, establishes a diversified, unified and open, orderly competition and effective supervision of the energy market system, and achieves the optimal allocation of energy resources in a wider range。

The State promotes the establishment of a well-functioning, independent operation and standardized trading platform for energy markets, and encourages the development of all kinds of effective trading methods and trading instruments。

Article 66 〔Pricing Mechanism〕

The competitive link in the field of energy is mainly based on the market to form the price, the state promotes the formation of energy resources, market supply and demand, environmental costs, intergenerational equity sustainability and other factors to determine energy prices mechanism。

The price of the natural monopoly link is managed by the price authority。The authority and scope of the Government to set energy prices is based on the central and local pricing catalogues。

Article 67 〔Cost Price Supervision〕

The price authority shall conduct the supervision and examination of the cost of energy prices in accordance with the provisions。Energy enterprises shall, in accordance with the requirements of the price authorities, provide timely, truthful and accurate price cost data and accept price cost supervision。The price authorities shall, taking into account the market supply and demand situation of energy products or services, the scarcity of resources, the cost of environmental damage and the requirements of national economy and social development and social affordability, formulate and adjust the energy prices included in the government's pricing range in accordance with the principles of permitted costs, reasonable profits, taxation in accordance with the law and fair burden。

Article 68 〔Market Construction Content〕

The competent department of energy under the State Council and the relevant departments under the State Council shall promote the development of the energy market, rationally lay out trading institutions and trading platforms, and guide the formulation of energy market setup plans and market rules。

Article 69 〔Regulating the market order〕

The people's governments at or above the county level and their departments shall strengthen supervision over the operation order of the energy market and the natural monopoly links, and regulate and maintain a fair competition in the order of the energy market。

 

Chapter 6 Energy Security

Article 70 〔General Requirements〕

The State coordinates energy security, integrates energy security strategies into national security strategies, optimizes energy distribution, strengthens the construction of energy security reserves and peak ingest facilities, enhances energy supply security and emergency adjustment capabilities, improves energy security and emergency systems, and comprehensively enhances energy security and security capabilities。

Article 71 〔Protection of Energy Facilities and Grounds〕

Energy enterprises shall strengthen the safe management of facilities, equipment and premises for the production, conversion, transport, storage and supply of energy products。

Energy production, supply facilities and sites shall have quarantine areas or protected areas that meet safety requirements 。No unit or individual may engage in activities that endanger the safety of the relevant facilities, equipment and places。Local people's governments at all levels shall, in accordance with law, protect the safety of energy infrastructure such as oil, natural gas, heat and power transmission networks in their administrative areas。

Article 72 〔Network and Information Security〕

The competent department of energy under the State Council and the relevant departments under the State Council shall, in accordance with the division of responsibilities, be responsible for the protection and supervision and management of the energy industry network and information security, and promote the establishment and improvement of the legal and standard system of the energy industry network and information security。

Energy enterprises shall conscientiously implement laws, administrative regulations and standards on network and information security。

Article 73 〔Supply Guarantee〕

The state guarantees an effective supply of energy to meet the basic needs of the national economy and people's livelihood。

An energy production and supply enterprise shall supply energy on time and in quantity in accordance with laws, administrative regulations and energy supply contracts, and shall not interrupt or stop energy supply without authorization, or increase prices or reduce the quantity of supply without authorization。

Article 74 〔Emergency Capacity〕

In accordance with the principle of combining government reserves with enterprise reserves, combining reserves with production and supply and marketing systems, the State has established an energy security reserve system for oil, natural gas and coal, scientifically set the scale of reserves, continuously optimized the structure of categories, and continuously improved the efficiency of reserves 。

Government reserves include the operation of state direct investment and the strategic reserves entrusted by the state-funded enterprises。Enterprise reserves include corporate social responsibility reserves and other reserves formed by production and operation bank, production capacity reserves, etc.。

The people's governments at or above the county level and their relevant departments shall be responsible for capacity-building of energy security reserves and for the management of storage, rotation and utilization。

The specific measures for the strategic reserve of energy and mineral resources shall be formulated by the competent department of natural resources under the State Council in conjunction with the competent department of energy under the State Council, the financial department of the State Council and other relevant departments。

Article 75 〔Reserve Use〕

In one of the following cases, the designated department of the State Council shall, in conjunction with the financial department of the State Council, propose a plan for the use of energy reserves and submit it to the State Council for approval for implementation:

(1) The interruption or substantial reduction of energy supply throughout the country or in local areas caused by emergencies has or may cause a serious imbalance between supply and demand in the domestic market, and the national economy has suffered significant impact or damage;

(2) The need of the State to regulate and control the total amount of the national economy;

(3) Other circumstances prescribed by laws or administrative regulations or decided by the State Council 。

Article 76 〔Forecast and Early Warning〕

The competent department of energy under the State Council shall closely follow the international and domestic energy markets, establish and improve the forecasting and early warning mechanism, and improve emergency response capacity 。

The people's governments at or above the county level shall strengthen the early warning of energy forecasting and timely and effective forecasting and warning of changes in energy supply and demand, energy price fluctuations and the state of energy security risks。

Energy forecast warnings focus on supply, demand and security of important energy products such as oil, gas, electricity and coal。

The energy enterprise shall promptly report the energy forecast and early warning information to the people's government at or above the county level where it is located and its energy department。

Article 77 〔Energy Emergency Response〕

The State strengthens emergency capacity-building in the energy industry, improves the mechanism for coordinating and coordinating energy emergencies, establishes an energy emergency system, responds to severe shortages of energy supplies, interruptions in supply and other energy emergencies, maintains basic energy supply and consumption order, and ensures the smooth operation of the economy。

People's governments at all levels shall take effective measures to strengthen the construction of energy emergency-related facilities and management systems, improve emergency response capacity and effectively respond to energy emergencies。

Enterprises engaged in energy development, production, processing and conversion and supply, as well as key energy-using units, should strengthen emergency reserves, improve emergency response systems, improve emergency plans, strengthen emergency response, and strengthen emergency capacity-building。

 

Chapter 7 Technological Progress

Article 78 〔Scientific and Technological Innovation〕

The State encourages and promotes energy science and technology innovation, promotes the establishment of an energy science and technology innovation system with enterprise as the main body, market-oriented, and the combination of industry and research, and the establishment of a new energy technology innovation system, and takes measures to promote the research, development, demonstration, promotion and application of new energy technologies, new products and new equipment。The people's governments at or above the county level and their relevant departments organize the promotion and application of the outstanding achievements of original innovation, integrated innovation and the introduction of digestion and absorption and re-innovation in the field of energy。

Article 79 〔Key Areas of Science and Technology〕

The State supports innovative research and development applications of technologies such as energy resource exploration and development, energy processing conversion, energy transmission and distribution, energy clean and comprehensive utilization, energy conservation and emission reduction, and energy production safety。Scientific and technological research and industrial development of qualified energy development and utilization shall be incorporated into the national science, technology and industrial development-related plans。

Article 80 〔Support Policy〕

The State supports the research, development, demonstration and promotion of qualified basic, cutting-edge, critical and public-interest technical equipment and major technical standards in the energy field。

The state encourages enterprises and other social funds to invest in energy technology。

Article 81 〔Science and Technology Development Mechanism〕

The relevant departments of the State Council shall support the establishment of an innovation platform for energy research and development, relying on major energy projects, and focus on scientific and technological research activities。

Article 82 〔Talent Training〕

The State Council and the provincial education administrative departments and relevant departments shall support and guide institutions and vocational colleges to develop the training of energy-related professionals in the energy field in conjunction with the energy-related personnel training needs put forward by the energy department under the State Council, and encourage institutions of higher learning, vocational colleges, scientific research institutions and enterprises to cooperate in the training of energy-related professionals。

Article 83 〔Scientific Education〕

The people's governments at or above the county level and their competent departments of energy, science and technology shall actively carry out activities to popularize knowledge of energy science and technology, support relevant units and individuals such as social intermediaries to engage in energy science and technology consulting and services, and raise the level of knowledge and scientific energy use of energy science and technology for all。

 

Chapter 8 International Cooperation

Article 84 〔International Cooperation Methods〕

The State strengthens all-round international cooperation through the conclusion of international treaties, the signing of bilateral or multilateral energy cooperation documents, participation in or establishment of international energy organizations, the coordination of energy policies and energy standards, the resolution of major issues through consultation and the implementation of joint planning, joint development, personnel exchange and information exchange。

Article 85 〔Domestic Energy Cooperation〕

The State protects the lawful rights and interests of foreign citizens, legal persons and other organizations engaged in energy development and utilization activities in China in accordance with the law。

Article 86 〔Investment and Trade Cooperation〕

The State strengthens bilateral and multilateral investment and trade cooperation in the field of energy, prevents and responds to international energy market risks, promotes two-way investment in energy and trade in products, technologies and services, mobilizes the enthusiasm of various market players, and builds a diversified supply system。

The State encourages the import of clean, high-quality energy, the introduction of advanced energy technologies, and the strengthening of the supervision and management of imports and exports of fossil energy and energy-intensive products。

Article 87 〔Cross-border energy infrastructure〕

Cross-border energy transmission networks, energy transport ation channels and supporting facilities for investment, development, construction and operation shall be in accordance with the national energy strategy and planning and shall be subject to the management, coordination and supervision of the investment department under the State Council, the competent department of energy and the relevant departments under the State Council。

Article 88 〔Cooperation in Science and Technology and Education〕

The State encourages international exchanges and cooperation in energy science and technology, education and personnel training to promote the research, application and transformation of advanced energy science and technology。

Article 89 〔International Cooperation Information Service〕

The energy department of the State Council, together with the relevant departments of the State Council, will establish an information platform for energy international cooperation, improve the information service system for international cooperation in energy, and promote international energy information sharing。

 

Chapter 9 Supervision and Management

Article 90 〔Supervisory and Management Responsibilities〕

The competent energy departments and relevant departments shall, in accordance with the division of duties, supervise and manage the implementation of energy planning, energy development and utilization activities, energy markets and related safety and security。

The regulations on energy regulations shall be formulated by the State Council。

Article 91 〔Supervision and Inspection〕

The units and individuals concerned shall, in accordance with the relevant provisions, record and preserve materials related to energy production and operation, access the regulatory information system in accordance with the requirements of the regulatory authorities, submit regulatory information, and accept and cooperate with the supervision and inspection of the competent energy departments and relevant departments。

When the competent energy department and the relevant departments conduct inspections, they shall carry out the inspection in accordance with the prescribed procedures and keep trade secrets and other secrets for the units and individuals under inspection。

Article 92 〔Administrative License or Acceptance Testing〕

The competent department of energy and the relevant departments shall, in accordance with the provisions of the relevant laws and administrative regulations, strictly examine or accept the development, operation and operation of energy that require administrative license or acceptance testing;where conditions stipulated in the relevant laws and administrative regulations are not met, no administrative license shall be given or acceptance testing will not be considered passed。If administrative license is not granted or acceptance testing is not passed, the reasons shall be explained, and the parties statements and arguments shall be heard。If its statements and defences are valid, it shall be adopted。

For units that have not obtained administrative licenses according to law or are not qualified to pass acceptance testing to engage in relevant energy development and utilization, production and operation activities, the department responsible for administrative license or acceptance testing shall immediately order them to stop the corresponding activities or make rectification within a time limit after inspection and discovery or receipt of a report。For units that have obtained administrative licenses in accordance with the law, if the department responsible for administrative licensing finds that it no longer has the conditions for administrative licensing, it shall revoke the original administrative license, explain the reasons, listen to the parties' statements, plead, and inform the parties of their right and way to apply for relief。

Article 93 〔Supply Supervision〕

The competent departments of energy and relevant departments shall supervise and inspect the energy supply in accordance with the division of duties, and urge energy supply enterprises to do a good job in ensuring energy supply。

Article 94 〔Fair and Open Supervision of The Pipeline Network〕

The competent departments of energy and relevant departments shall, in accordance with the division of duties, supervise the fair opening of the power grid, the oil and gas pipeline network and other energy distribution networks with natural monopoly characteristics, and the efficiency of investment operation, so as to promote fair competition and protect the rights and interests of consumers。

Article 95 〔Safety Reserve Supervision and Administration〕

The relevant departments of the State Council shall supervise and manage the implementation of energy security reserves in accordance with the division of duties。

Article 96 〔Emergency Supervision and Inspection〕

In accordance with the provisions of this Law and relevant laws and administrative regulations, the competent departments of energy and relevant departments shall, in accordance with the provisions of this Law and relevant laws and administrative regulations, carry out supervision and inspection on energy emergency plans, emergency system construction and emergency disposal measures for energy enterprises and key energy-using units, and participate in the disposal of energy emergencies in accordance with the law。

Article 97 〔On-site Inspection〕

In order to perform their statutory duties, the competent department of energy and the relevant departments may enter the production and operation places of energy enterprises and energy-using units to carry out on-site inspections, consult and copy documents and materials related to the inspection matters, and seal them for possible transfer, concealment or destruction。

Article 98 〔Off-site Supervision〕

The competent energy departments and relevant departments shall establish an energy regulatory information system to achieve off-site supervision of the planning and construction, processing conversion and safe production of energy enterprises through real-time online monitoring and information transmission。

Energy enterprises shall take the initiative to accept off-site supervision by the energy authorities and relevant departments, and actively cooperate with the energy authorities in doing a good job in system access and data information transmission。

Article 99 〔Coercive Measures〕

In the supervision and inspection, the competent energy department and the relevant department sought to apply to the people's court for freezing the illegal use of energy products, technologies or equipment that do not conform to national standards or which are prohibited by the State in accordance with the procedures and requirements prescribed by the administrative compulsory law;if an energy enterprise or energy consuming organization is suspected of transferring, concealing funds, or destroying property, it may apply to the People's Court for freezing。

Article 100 〔Obligation of Enterprises to Cooperate〕

Energy enterprises and energy-using units shall cooperate with the acts of the energy departments and the supervisors and inspectors of the relevant departments in carrying out their duties of supervision and inspection in accordance with the law, and shall not refuse or obstruct them。

The supervision and inspection personnel shall comply with the legal procedures for conducting on-site inspections。The unit under inspection shall cooperate with the inspection, truthfully reflect the situation and provide the necessary conditions and information。

Article 101 〔Law Enforcement Requirements〕

Energy supervision and inspection personnel shall exercise due diligence and enforce the law impartially。

When carrying out the task of supervision and inspection, the energy supervision and inspection personnel shall produce valid supervision and enforcement documents。

Article 102 〔Restraint of Law Enforcement Acts〕

The competent department of energy and the relevant department shall not charge any fees for administrative license or acceptance of matters involving energy development and utilization, unless otherwise provided by laws and regulations。

The competent department of energy and the relevant department shall not require the unit that has accepted the administrative license or acceptance to purchase the relevant equipment, equipment or other products of its designated brand or designated production or sales unit。

Article 103 〔Joint Inspection〕

The department in charge of energy and the relevant departments shall cooperate with each other in the supervision and inspection and may carry out joint inspections;where they shall conduct separate inspections, they shall exchange information, and if the illegal problems found to be handled by other relevant departments, they shall promptly transfer and form records for examination, and the departments that accept the transfer shall handle them in a timely manner。

Article 104 〔Social Supervision and Reporting System〕

Any unit or individual shall have the right to make opinions and suggestions on the performance of duties by the competent energy departments and relevant departments, and to report energy violations。

The competent energy department and the relevant departments shall establish a reporting system to publicly report telephone, mail or e-mail addresses and receive reports of energy violations。The result of the handling of the accepted report shall be communicated to the whistleblower in a timely manner。

Article 105 〔Information Disclosure and Credit System Construction〕

The competent energy departments and relevant departments shall disclose the information on energy supervision in accordance with the energy information supervision system。

The energy department sits in charge and the relevant departments shall establish a credit system for the energy industry and establish a new energy supervision mechanism based on credit。

Article 106 〔Energy Metering〕

Energy enterprises shall strengthen energy metering in accordance with the relevant provisions of the State, equip them with energy metering instruments and improve the energy metering system, and energy metering instruments shall be checked or calibrated in accordance with the relevant provisions of the State。The competent department of measurement administration shall strengthen the supervision and management of energy measurement。

 

Chapter 10 Legal Liability

Article 107 〔Governmental Regulatory Responsibility〕

The competent department of energy, other relevant departments and their staff members who, in violation of the provisions of this Law, abuse their power, neglect their duties or engage in fraud for personal gain in the supervision and administration shall be punished according to law;If the case constitutes a crime, criminal responsibility shall be investigated according to law。

Article 108 〔Responsibility for the Opening of the Pipe Network〕

If an enterprise operating an energy pipeline network facility violates the provisions of this Law, it shall be ordered by the competent energy department to make corrections if it has committed any of the following circumstances;if the economic loss of one party is caused, the responsible party shall be fined two times or less than five times the amount of economic loss per day;If the case constitutes a crime, criminal responsibility shall be investigated according to law:

(1) Violating the provisions of the law and failing to fulfil the obligation of opening the pipe network fairly and without discrimination;

(2) The facilities, equipment and products of the energy pipeline network do not meet the national standards。

Article 109 〔Responsibility for Universal Service〕

If an enterprise undertaking the obligation of universal service to energy interrupts or stops fulfilling the obligation of universal service without authorization, it shall be ordered by the competent energy department to make corrections;if the user's economic loss is caused, the responsible party shall be fined more than twice the amount of the loss or less than twice the amount;If the case constitutes a crime, criminal responsibility shall be investigated according to law。

Article 110 〔Responsibility for Disclosure of Reports〕

If an energy enterprise and related units violate the provisions of this Law, the competent energy department shall order the correction, and if it fails to do so within the time limit, it shall be fined from 100,000 yuan to 200,000 yuan:

(1) failing to provide the documents and information such as statements and reports in accordance with the provisions;

(2) providing false or concealing statements, reports and other documents and information;

(3) failing to submit relevant information in accordance with the regulatory requirements;

(4) failing to disclose the relevant information in a timely, truthful, accurate and complete manner in accordance with the provisions。

Article 111 〔Responsibility for Law Enforcement Cooperation〕

If an energy enterprise violates the provisions of this Law, it shall be ordered by the competent department of energy or other relevant departments to make corrections and impose a fine of between 100,000 yuan and 500,000 yuan;if it fails to do so within the time limit or if the circumstances are serious, it may order it to suspend its business or revoke its production or business license;If the case constitutes a crime, criminal responsibility shall be investigated according to law:

(1) failure to truthfully reflect the situation, provide false information or refuse to provide the necessary conditions in the supervision and inspection;

(2) obstructing the supervision and inspection personnel from performing their duties in accordance with the law;

(3) Preventing the energy authorities from taking major emergency response actions。

Article 112 〔Responsibility for Horizontal Collaboration〕

If an energy enterprise violates the provisions of this Law, it shall be ordered by the competent energy department to make corrections and impose a fine of not more than 200,000 yuan and not more than one million yuan;if the circumstances are serious, it may order the suspension of business to rectify or revoke its production or business license;If the case constitutes a crime, criminal responsibility shall be investigated according to law:

(1) engaged in energy development and production activities and failed to develop symbiotic and associated energy mineral resources in accordance with the law;

(2) If an energy supply enterprise fails to fulfill its obligations on energy supply security and the obligation of inquiry on relevant public notices in accordance with the law;

(3) failing to implement the energy emergency plan or emergency instructions, and failing to undertake the relevant emergency tasks。

Article 113 〔Compulsory Disclosure of Information〕

If the key energy-using enterprise fails to report to the department that manages energy conservation or to the society, the department that manages the energy-saving work shall order the correction and impose a fine of between 100,000 yuan and 500,000 yuan。

Article 114 〔Legal and Accountability Link Clause〕

The penalties stipulated in this Law shall be determined by the competent energy department and the relevant departments in accordance with the division of duties。If other laws provide otherwise for the types, magnitudes and decision-up organs of administrative penalties, they shall be in accordance with their provisions。

 

Chapter 11 Supplementary Provisions

Article 115 〔Legal Interpretation of Terms〕

The meaning of the following terms in this Act:

(1) Energy means the resources for generating energy such as heat, mechanical energy, electricity, nuclear energy and chemical energy, including coal, oil, natural gas (including shale gas, coal seam gas, bio natural gas, etc.), nuclear energy, hydrogen energy, wind energy, solar energy, hydroenergy, biomass energy, geothermal energy, marine energy, electricity and heat, and other resources that are directly or through processing and conversion。

(2) Fossil energy refers to the energy that evolved from the fossils of ancient plants and animals, including coal, oil and gas。

(3) Non-fossil energy refers to primary energy sources other than fossil energy, including hydro, nuclear, wind, solar, biomass, geothermal and marine energy。

(4) Renewable energy refers to one-time energy that can be recycled and used repeatedly and continuously in nature, including hydro, wind, solar, biomass, geothermal and marine energy。

(5) Clean energy refers to energy sources that emit zero or low emissions of greenhouse gases such as environmental pollutants and carbon dioxide during the development and utilization and use。

(6) Gas means gas fuels such as natural gas (including shale gas, coal seam gas, biogas, etc.), artificial gas, liquefied petroleum gas and biogas。

(7) Energy enterprises refer to enterprises whose main business is energy development and production, processing and conversion, storage, transportation, distribution, supply, trade and services。

(8) Energy units refer to citizens, enterprises and institutions and other social organizations that purchase, use and consume energy products。

(9) Energy development and utilization refers to activities such as planning, surveying, designing, construction, production, processing conversion, storage, transportation, trading, supply, use, disposal and protection of energy resources, as well as energy professional services。

(10) Energy emergencies refer to serious shortages of energy supply, supply interruptions and other events that occur suddenly, cause or are likely to cause serious social harm, require emergency disposal measures to deal with them。

(11) Energy processing conversion refers to the process of changing the physical form or energy form of energy through a certain process and producing other energy products, excluding the activities of producing other products from energy as raw material。

(12) Energy infrastructure means facilities for safeguarding basic energy public services, including power transmission and distribution networks, oil and gas pipeline networks, energy reserve facilities, energy terminals, liquified natural gas receiving stations and railway lines。

(13) Energy demand side management refers to energy management activities that the government or public utility units can use by adopting incentives to guide energy units to change the energy use method, improve the efficiency of end-use energy use, and minimize the cost of energy services。

(14) Energy audit refers to the quantitative analysis and evaluation of the rationality and effectiveness of energy utilization activities of energy-using units by qualified energy auditinstitutions in accordance with laws, administrative regulations and relevant standards。

Article 116 〔Legislative Authorization〕

The construction, management and exploitation of military energy shall be separately stipulated by the State Council and the Central Military Commission in accordance with this Law。

Article 117 〔When the Law comes into effect〕

This Law shall come into effect as of xx/xx/xxxx。

 

 

 

Annex 2

 

Explanation on drafting process for the "Energy Law of the People’s Republic of China (Draft for Comments)"

Based on the “Energy Law (Draft for Review )”, this “Energy Law of the People’ s Republic of China (Draft for Comment)” was made with further revisions by the National Development and Reform Commission and the National Energy Administration. The new Law is enacted to serve the new energy security strategy of “Four revolutions, One Cooperation” put forth by the General Secretary Xi Jinping with the aim to build a sound and comprehensive energy governance system, to modernize energy governance capacity, and to contribute to the high-quality development of energy. The section below further explains the background in drafting of the law:

1. Necessity for enacting the "Energy Law"

Energy plays an important role in national economy。The development of energy in the new era has been an important driving force behind the transformation of the mode of production and lifestyle, and the modernization of the economic system。However, a fundamental energy law has long been absent in China。It is necessary to enact an inclusive energy law for the following reasons: first, the new Energy Law is a much-needed response to the new energy security strategy of “four revolutions, one cooperation”。Given the latest development in the area of energy and issues arising from it, the CPC Central Committee put forward a new strategy for energy security, i.e. “ four revolutions, one cooperation”. The task of “pushing for energy revolution and building a clean, low-carbon, safe and efficient energy system” was emphasized at the Fourth Plenary Session of the 19th CPC Central Committee。Meanwhile, Energy Production and Consumption Revolution Strategy (2016-2030), the 13th Energy Development Five Year Plan among 14 energy special programs have been rolled out to support the task. Against this backdrop, a clear legal definition of the goal of energy reform and its top-level design is of great urgency so that energy development has a road map to follow and consistency of the basic system can be guaranteed 。Second, the new Energy Law is integral to the high-quality energy development。The energy sector is undergoing profound institutional transformation. As the reform in the areas of power, oil and gas moves forward with relevant policies and supporting documents in place, the energy reform is in full swing across China. Therefore, legal constraints and institutions are much needed to clarify the legal status of market players, lay down a set of market rules, level the playing field, and set straight the legal relationships for the purpose of achieving high-quality energy development that is safe, efficient, green, smart and beneficial to all。Third, the new Energy Law is vital to the modernization of energy governance system and capability。An effectively competitive energy market has not yet fully developed;the potential of the interconnectivity among modern governance measures such as energy planning, policy-making, supervising, and standard setting is yet to be reached;the optimization and integration of different types of energy varieties haven’t been fully materialized. Therefore, we need a fundamental and comprehensive law to regulate the issues concerning energy mix and energy market which are complex and tend to have widespread implications. We also need this law to provide legal safeguard to modernize energy governance。

2. The Proposed Legal System

The law draft for comments is guided by Xi Jinping ’s Thought on Socialism with Chinese Characteristics in the New Era and faithfully reflects the spirit of the 19th National Congress of the CPC and the Second, Third, and Fourth Plenary Sessions of the 19th CPC Central Committee and General Secretary Xi Jinping ’s energy security strategy of “Four Revolutions, One Cooperation” . The new law is drafted in response to the latest development in the area of energy and challenges facing it. The law, focused on problem-solving with clear priorities, is set to improve the energy governance system and contribute to the high-quality energy development。

The proposed legal systems set up in the law draft are expected to :a. guide energy development and utilization through holistic strategies and plans so as to promote clean and low-carbon development of energy;b. promote reasonable energy development and infrastructure construction to improve energy supply capacity;c. meet people's daily demand for energy by improving the universal energy service mechanism;d. support technological innovation for a higher level of standardization and faster technological advances;e. support the reform of the energy system and mechanism and speed up the market-oriented reform;f. establish an energy reserve system, strengthen the capacity building for emergency response, and ensure energy security;and g. strengthen supervision and management of energy development and utilization in accordance with the law, and improve the supervision system so as to modernize the energy governance system and governance capacity。

3. The Drafting Process

Since 2017, under the guidance of the former Legislative Affairs Office of the State Council and the Ministry of Justice, the National Development and Reform Commission and the National Energy Administration have formed an expert group and a task force to conduct several rounds of in-depth study, investigation, and exchange of opinions. Based the revised draft of the Energy Law of the People's Republic of China (submitted for review) submitted by the National Development and Reform Commission to the former Legislative Affairs Office of the State Council, this draft has been further revised and improved, and now is opening for comments。

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