DECREE. on Promulgation of Law on Energy saving. To promulgate Law on Energy saving, No 1136-XIV, as of July 13, 2000.

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1 DECREE on Promulgation of Law on Energy saving On the basis of item (1) article 93 of the Constitution of the Republic of Moldova, the President of the Republic of Moldova issues the following DECREE: To promulgate Law on Energy saving, No 1136-XIV, as of July 13, President of the Republic of Moldova Petru LUCINSCHI Chisinau, December 13, 2000 No II.

2 LAW ON ENERGY SAVING The Parliament adopts this organic Law. This Law shall establish the main principles of organization and regulation of activity in the sphere of energy saving to create adequate organizational and economic conditions for efficient use of energy resources in the process of extraction, production, processing, preservation, transportation, distribution and consumption thereof. CHAPTER I GENERAL PROVISIONS Article 1. Key Terms This Law shall use the following terms: Energy saving - organizational, scientific, practical, technical, economic and information activity aimed at the efficient use of energy resources in the process of their extraction, production, processing, preservation, transportation, distribution and consumption, as well as involvement of renewable kinds of energy into business turnover. Energy saving state policy administrative, legal, organizational, and economic and financial regulation of activities in the sphere of energy saving; Energy efficiency indicators absolute or weighted volume of consumption or loss of energy resources established by regulatory acts. Energy resources totality of all primary and transformed types of fuel and energy used in production and household. Secondary energy resources energy carriers generated in the form of by-product of the main production. Efficient use of energy resources maximal achievement of energy utilization efficiency, justified from the economic point of view and the actual level of technical and technological development, consistent with environmental protection; Renewable sources of energy solar, wind, geothermal, water current, biomass energy, etc. Article 2. Scope of Law The Law shall regulate: a) realization of monitoring and enhancement of efficient use of energy resources in the process of their extraction, production, processing, preservation, transportation, distribution and consumption; b) development and implementation of efficient technologies on energy recourses extraction, production, processing, preservation, transportation, distribution and consumption, as well as utilization and installation of modern fuel and energy consuming equipment, devices for record, control and regulation of energy consumption; c) correlation of energy saving and environmental protection activities;

3 d) financial provision and realization of economic energy saving mechanism; e) information support of energy saving, personnel training and advanced training; f) certification of energy saving and diagnostic equipment, materials, objects of construction, transport means, other energy consuming products and objects, as well as energy resources; g) stimulation of investments into development and implementation of technologies and equipment with minimal energy consumption; h) international collaboration in the sphere of energy consumption. Article 3. Basic Principles of State Energy Saving Policy The state energy saving policy shall be based on the following principles: a) implementation of energy saving programs on a priority basis; b) adoption of energy saving measures mandatory for all legal entities; c) realization of state control over the efficient use of energy resources; d) inclusion of energy efficiency indicators into national standards for equipment, materials, and constructions, means of transport, household appliances, as well as for any other kind of energy consumption products and services; e) mandatory energy expertise for construction and reconstruction, machine and device construction projects; f) combination of consumers, suppliers and producers of energy recourses interests, economic interest to utilize them efficiently; g) provision of scientific support to energy saving works; h) information support in the sphere of energy saving, training and advanced training of personnel in this area. Article 4. Competence of Government Government shall: CHAPTER II STATE MANAGEMENT OF ENERGY SAVING a) define basic directions of state policy in the sphere of energy saving; b) approve national energy saving programs, control realization thereof, organize scientific researches in this area; c) ensure elaboration, examination and adoption of regulatory acts on energy saving, and development of legislative acts projects with regard to these issues for further submitting them to the Parliament; d) examine and approve financial and economic mechanisms of energy saving;

4 e) set up the procedure of organizing performance of the authority empowered in the sphere of energy saving and supervise its activity; f) exercise control over administration of the National Energy saving Fund resources. Article 5. Competence of Authority Empowered in Energy Saving (1) The State shall realize a unique energy saving policy concerning technical, economic, scientific, investment issues through the authority empowered in the sphere of energy saving (hereafter Empowered Authority) established within the central branch authority of public government. (2) The Empowered Authority shall be a legal entity functioning on the basis of business management principles. (3) The Empowered Authority shall be managed by a director assigned by the central branch authority of public government on a competitive base. (4) The activity of the Empowered Authority shall be financed from the funds received from services provided, the National Energy saving Fund s resources, other resources. The annual budget of this authority shall be approved by the central branch authority of public government. (5) The Empowered Authority shall carry out its activity in accordance with the legislation and Regulation about it, approved by the Government. (6) Empowered Authority shall: a) develop national program projects on energy saving, ensure its realization and monitor the activity with regard to energy saving; b) make control over the efficient use of energy resources; c) perform state expertise and energy audit in the sphere of energy saving; d) carry out together with Business entities practical performance with regard to implementation of energy saving actions; e) coordinate standardization and certification issues in the area; f) coordinate research works, experimental and technological developments in the sphere of energy saving; g) ensure and implement information performance in this area; h) coordinate activity on training and upgrading of personnel in the sphere of energy saving; i) conduct international collaboration in the area; j) perform other functions provided in the Regulation about it. (7). The Empowered Authority shall guarantee confidentiality of commercial information received from Business entities. Article 6. Energy saving Programs

5 (1) The state policy in the sphere of energy saving shall be realized on the basis of implementation of national, local and branch programs regarding energy saving, by business entities and state institutions. (2) Energy saving programs shall provide concrete actions of organizational, economic, technical and other nature, targeted to ensure efficient use and saving of energy resources. Article 7. Standardization, Certification and Metrological Supervision In Energy Saving (1) Standardization in the sphere of energy saving shall be done by: a) inclusion of energy efficiency indicators into national standards and regulatory documents on energy generation and consumption equipment, as well as installations, devices for record and control, construction materials, means of transport, machines and household appliances, other kinds of production that consume energy. b) elaboration and application of standards and technical conditions that determine methodological, organizational and technical bases of energy consumption and energy saving; c) establishment of requirements with regard to energy consuming technologies and equipment, norms of energy consumption and fuel, other requirements and indicators; d) inclusion of quality parameters of electric, thermal energy and nature gas into national standards; (2) Energy consuming products of any designation, as well as energy resources shall be subject to mandatory certification with respect to their compliance with energy efficiency indicators. The compliance of the mentioned products with normative document requirements in the part of energy consumption indicators shall be confirmed by mandatory marking. (3) Metrological control and supervision with regard to energy saving shall be made in the process of extraction, production, processing, preservation, transportation, distribution and consumption of energy resources, as well as in the process of their certification. Article 8. State Expertise and Audit in Energy Saving (1) State expertise and audit in the sphere of energy saving shall be mandatory for all Business entities and state institutions and carried out in accordance with the Regulation on Empowered Authority. (2) State institutions and Business entities regardless of the type of ownership and legal form of organization, consuming more than 0.5 thousand tones of conventional fuel annually, shall be subject to mandatory energy audit once in 5 years. (3) When the energy audit reveals that business entities and state institutions have energy efficiency increase reserves, they shall be obligated to develop and implement, within specified terms, programs on energy saving, which shall be monitored by the Empowered Authority. (4) The following shall be subject to state expertise in the sphere of energy saving: a) development projects of the national economy s branches; b) projects supplying with electrical and thermal energy, natural gas, water and other resources territories and localities; c) construction and reconstruction projects;

6 d) projects of creation and production of new materials, machines, mechanisms and technologies; e) projects of norms and rules in construction, other regulatory and technical documents regulating activity in the sphere of energy saving. (5) Based on the results of state expertise in the sphere of energy saving the Empowered Authority shall prepare an expert conclusion. (6) Prescriptions contained in the Empowered Authority s conclusion shall be mandatory for execution. Article 9. Scientific Support to Energy Saving Whereas provided with financial support, on competitive basis, from the National Energy saving Fund and other sources, the Empowered Authority together with institutions and organizations dealing with energy saving shall determine a topic and coordinate realization of research, experimental and development works on energy saving, and other resources, which shall be aimed at: a) development of national, local and branch programs regarding energy saving; b) search and implementation of scientific developments and innovations in the area; c) inclusion into energy balance and extension of the field with renewable sources and secondary energy resources applied; d) creation of new energy saving materials, engineering and technology; e) decrease of material, technical, labor, financial and other expenditures in use of energy resources; Article 10. Information Support to Energy Saving Information support to energy saving shall be realized through: a) provision of producers and consumers of energy resources with technical and economic information concerning their efficient utilization; b) organization of training courses, seminars and conferences; c) organization of exhibitions, competitions demonstrating installations and equipment of high energy efficiency; d) introduction of mandatory training programs about efficient use of energy resources at enterprises, institutions and organizations in technical schools. CHAPTER III FINANCIAL PROVISION AND ECONOMIC MECHANISMS OF ENERGY SAVING Article 11. National Energy Saving Fund (1) In order to ensure funding of the most efficient programs and projects with regard to energy saving the National Energy saving Fund (NECF) shall be established.

7 (2) NECF shall be managed by the Empowered Authority in accordance with the Regulation on the Fund, approved by the Government. (3) NECF s financial resources shall be formed of: a) transfers from the state budget to the amount envisaged in the state budget for the next year; [sub-item a) in the wording of Law No XV, as of ] b) resources from economic sanctions applied for the violation of this law - in the amount of 20 %; c) voluntary donations from natural persons and legal entities; d) other sources in compliance with legislation. (4) Control over allocations into NECF shall be made by the state fiscal authorities. (5) In order to supervise priority directions for using NECF s resources, the central branch authority of public government shall create the Supervision Council. (6) NECF s resources shall not be subject to taxation. Resources that have not been used in the current year shall be available in the next year. 7)Amount of income and expenditures of the NECF shall be annually approved in the Annex to the law on state budget for the corresponding year. [Item 7 introduced by Law No XV, as of ] Article 12. Use of Electric Energy Surplus [name of article in the wording of Law No XV, as of ] Business entities generating electric energy with established capacity not exceeding 20 MW, shall have the right to sell the surplus of electric energy at market prices. [Items 1,2,4 excluded by Law No XV, as of ] CHAPTER IV INTERENATIONAL COLABORATION IN ENERGY SAVING Article 13. International Collaboration (1) Collaboration of the Republic of Moldova with other countries in the sphere of energy saving shall be conducted in accordance with the national legislation and norms of international law. (2) The main directions of international collaboration in the sphere of energy saving shall be: a) participation of the Republic of Moldova to the corresponding international projects; b) mutually advantageous exchange with energy efficient technologies and information with the corresponding organizations and institutions from other countries, as well as with international organizations;

8 c) participation to international seminars, symposiums, conferences regarding energy saving; d) training and advanced training of personnel; e) coordination of energy efficiency indicators stipulated by the national standards with international standard requirements; f) mutual recognition of product certification results and energy resources with regard to energy efficiency indicators. PART V CONTROL AND SUPERVISION. LIABILITY IN THE SPHERE OF ENERGY SAVING Article 14. State Control and Supervision (1) Information about indicators and structure of energy resources consumption, as well as energy efficiency indicators shall be subject to the state statistics. (2) State control and supervision in the sphere of energy saving shall be subject to observation of regulatory acts requirements, regulatory and technical documents on energy saving and efficient use of energy resources by all producers, transporters, distributors and consumers of these resources within the territory of the Republic of Moldova. (3) The Empowered Authority shall carry out state control and supervision in the sphere of energy saving. (4) Prescriptions based on the results of control and supervision in the sphere of energy saving shall be subject to obligatory execution. Article 15. Liability for the violation of This Law (1) Violation of provisions of this Law shall bring about liability as required with legislation. (2) For the wasteful consumption and direct losses of energy resources, the Empowered Authority shall apply sanctions in accordance with legislation to enterprises, institutions and organizations. Article 16. The Government shall: a) within the period of 3 months: PART VI FINAL AND TRANSITIONAL PROVISIONS approve Regulation on the Empowered Authority in the sphere of energy saving and resolve issues with regard to organization of its performance; ensure development and approve the national programs on energy saving; elaborate and adopt regulatory acts with regard to the execution of this law; approve costs of services regarding the implementation of state expertise and audit in the sphere of energy saving; b) within the period of 6 months submit proposals to the Parliament to: make the corresponding legislation consistent with this Law; establish liability for natural and legal entities for the violation of provisions of this Law.

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