Chronicles of Energy Conservation Laws
< Legislation and Subsequent Amendments >

[Main contents of the law]

1. Measures for factories
   The law provides specific criteria (guidelines) for energy conservation for factories. Factories whose energy consumption is very large are regulated as designated energy management factories and obliged to appoint energy managers and record energy utilization. If required, a recommendation, etc. may be made for necessary measures to be taken for energy conservation.
    
2. Measures for buildings
   The law provides guidelines for energy conservation in buildings. For violation, guidance, advice and guiding principles are made. For serious violations, the name of the company may be announced to the public.
    
3. Measures for machinery and equipment
   The law provides guidelines for the energy consumption efficiency of the equipment consuming significant amount of energy, such as motor vehicles or air conditioners, etc., and if required, recommendations may be made for improving performance. Besides, there is an obligation for the labeling of energy consumption efficiency.

[Major items amended]

1. Revision of the purpose of the law
   With a view to dealing with global environmental issues, the purpose of the law was revised from "in consideration of Japan’s energy situation in which there is no choice but to depend on imports from abroad for fuel resources" to "to meet the economic and social environment of energy at home and abroad"
    
2. Establishment of fundamental policies
   New fundamental policies concerning energy conservation were established along with a call for energy conservation efforts by all energy users.
    
3. Mandatory periodic report, etc.
   The law adopted a mandatory periodic report to be made by the designated energy management factories. It also adopted measures including penalties so as to guarantee effective efforts for energy conservation regarding factories, buildings, and machinery and equipment.
    
4. Miscellaneous
   The responsibility to promote the development and implementation of energy conservation technologies were added to the activities of the New Energy and Industrial Technology Development Organization (NEDO).

[Major items amended]

1. Creation of a new category as to Type 2 designated energy management factory
   Along with Type 1 designated energy management factory, the category of Type 2 designated energy management factory (annual fuel consumption: greater or equal to 1,500 kl, annual electricity consumption: greater or equal to 6 million kWh) was created as a new category targeting factories in special need of promoting the rational use of energy.
    
2. Addition of an obligation for Type 1 designated energy management factories to submit a medium- to long-term plan
   The amendment obliged Type 1 designated energy management factories to submit a medium- to long-term plan on the rational use of energy.
    
3. Measures for Type 2 designated energy management factories
   It was obliged for Type 2 designated energy management factories to appoint an energy management officer, to attend periodical training courses, and to record the status of energy use.
    
4. Introduction, etc. of the "Top Runner" program
   • (a) With regard to the machinery and equipment specified by the Enforcement Ordinance (designated products), the Minister of Economy, Trade and Industry shall set the judgment standards of energy consumption efficiency for manufacturers, etc. of those products in consideration of the performance, etc. of the most energy efficient products commercially available in the market.
      
   • (b) If a manufacturer, etc. who had received recommendations for improvement in the performance of the designated products did not follow them, the Minister of Economy, Trade and Industry may take measures including public announcement and order against that non-compliance.

[Major items amended]

1. Abolition of the restriction of the category subject to Type 1 designated energy management factory
   The category of Type 1 designated energy management factory that had targeted five manufacturing industries, etc. was expanded to all industries.
    
2. The creation of exceptional provision with regard to the obligation to appoint energy managers
   With this amendment, it is stipulated that in terms of large office buildings, which are newly added to the category of Type 1 designated energy management factory, it is not necessary to appoint personnel certified as energy manager for each business establishment but they have only to participate in the process of drawing up a medium- to long-term plan.
    
3. Periodic reporting of Type 2 designated energy management factory
   With this amendment, Type 2 designated energy management factories were obliged to make periodic reports.
    
4. Obligation for the designated buildings to take energy conservation measures
   The owner of a designated building (buildings larger or equal to 2,000 m² excluding residential buildings) shall report energy conservation measures. Authority to provide guidance and advice on buildings shall be transferred from the Minister of Land, Infrastructure and Transportation to administrative agencies in charge (heads of local authorities, etc. who allocate supervisors as the Building Standard Law stipulates).

[Major items amended]

1. Integrated regulation of heat and electricity for designated energy management factories and offices
   The regulatory divisions of heat and electricity for factories and offices are abolished and integrated into a single amount of energy (to expand the designated energy management factories).
    
2. Strengthening energy conservation measures for residential buildings and construction sector
   It is obliged that the owners of the designated housings and buildings whose floor space are 2,000 m² or more shall be responsible to report on sufficient energy efficiency measures in terms of the standards for the rational use of energy, taken on new construction and large-scale repair, etc.
    
3. New obligations imposed on consigners and carriers (cargoes and passengers) for the transportation sector
   It is obliged that transportation companies both in cargo and passenger as well as cargo owners which are over a given level of business scale shall be responsible to draw up energy conservation plans and report the amount of energy consumption, etc. every year.
    
4. Obligation for energy suppliers and equipment retailers to make efforts to promote and disseminate energy-saving information
   In order to promote actively providing the consumer with information on energy conservation, it is institutionalized that energy suppliers such as electric companies, gas companies, etc. shall make efforts to disseminate highly energy-efficient equipment and publish information on the implementation and effects of energy conservation activities. It is also institutionalized that retailers of home electric appliances, etc. shall make efforts to display their energy efficiency performances in order for the consumer to easily get the information on annual electric consumption, fuel cost, etc. of those appliances at a store.

[Major items amended]

1. Regulatory Expansion in the Industrial Sector (enforced in April 2010)
   Regulatory structure is changed from regulating each factory or workplace to regulating the company wide management. The amendment obliges a company who uses a certain amount of energy as the whole company to regulate all of its factories and workplaces it has (the regulation is also introduced to a franchise chain such as convenience stores and restaurants, considering it to be a single company). Besides, it is stipulated that the activities are totally evaluated considering the benchmark for each sector, joint energy conservation activities, etc. Moreover, it is obliged that specified business operators and specified chain business operators shall appoint one energy management control officer, who may be selected from board members having a voice in the business operation, and one energy management planning promoter, who will assist the energy management control officer practically, in order to promote company-wide energy management system.
    
2. Strengthening energy conservation measures for residential sector (enforced in April 2009)
   While strengthening the measures for large residences and buildings (introduction of orders in addition to instructions and notices), it is newly obliged that owners of certain medium and small-sized residences and buildings shall be responsible to report. Additionally, the government introduces measures to encourage companies engaged in the construction and sales of residences to improve energy conservation performance of the residences. It is also stipulated that indication of the energy conservation performance of residences and buildings shall be promoted.