From Mongolian to English

LAW ON ENERGY CONSERVATION

CHAPTER ONE

GENERAL PROVISIONS

Article 1. The Purpose of the Law

1.1 The purpose of this Law shall be to regulate relations concerning energy conservation
and efficient use of energy.

Article 2. Legislation on Energy Conservation

2.1 The Legislation on Energy Conservation shall be comprised of the Energy Law, the
Renewable Energy Law, this Law and other laws and legal acts enacted in conformity with them.

2.2 If the rules, laid down in an international treaty of Mongolia, differ from those stipulated by
this Law, the rules of the international treaty shall be applied.

Article 3. Definition of legal terminology

3.1. The following terms used in this law shall have the following meanings:

3.1.1. “energy” means is as defined in Article 3.1.1 of the Energy Law;

3.1.2 “energy conservation” means a measured and calculated difference in amounts of

energy consumed prior to and after taking action, for the purpose of energy conservation;

3.1.3 “energy efficiency” means the ratio between total energy input and useful energy
output that are used during the manufacturing of goods or products, performing works or
rendering services.

3.1.4 “energy audit” means independent activities for verification, monitoring and
analysis of the use of energy by citizens, business entities and organizations, submission
of report, recommendations for improving energy efficiency, and using the conclusion;

3.1.5 “energy auditing agency” means any legal entities which holds a license for
auditing and provides services stated in Article 3.1.4 of this Law;

3.1.6 “energy auditor” means any person, who holds a license for energy auditing service;
 3.1.7 “energy service company” means any legal company which holds a license for
strengthening consultancy services and providing energy services in the field of energy
efficiency and its conservation requested by obligated, designated consumers and
citizens, legal entities and organizations;

3.1.8 “designated consumers” means any legal entity whose energy usage is above the
energy consumption threshold as defined by the government; and

3.1.9 “energy conservation manager” means any employee, who is authorized to work for
the designated consumers stated in Article 3.1.8 of this Law.

CHAPTER TWO.

MANDATE OF STATE ORGANIZATIONS WITH REGARD TO ENERGY

CONSERVATION

Article 4. Mandate of State Great Khural

4.1 The State Great Khural shall formulate the state policy on energy conservation.

Article 5. Mandate of the Government

5.1 The Government shall exercise the following powers with regard to energy conservation:

5.1.1 to ensure and organize implementation of the state policy and legislation on energy
conservation;

5.1.2 to approve the national energy conservation program; and

5.1.3 to approve regulations stated in Article 9.1.9 of this Law.

Article 6. Mandate of State Central Administrative Authority

6.1 The State Central Administrative Authority shall exercise the following powers with regard
to energy conservation and efficiency:

6.1.1 to organize and ensure the implementation of legislations and decisions on energy
conservation;
6.1.2 to specify and approve the norms and standards for buildings, equipment,
appliances, services and materials, and for generation, transmission and distribution of
energy regarding energy efficiency and its conservation; and
6.1.3 to develop the implementation plan of the state policy on energy conservation and
submit its performance to the Energy Conservation Council.
Article 7. Mandate of Governors of Aimags, the Capital City, Soums and Districts

7.1. Governors of aimags, the capital city, soums and districts shall organize implementation of
legislation on energy conservation and decisions issued by the authority in charge, in conformity
with this legislation, and develop a policy on energy conservation in their respective territories.

7.2. Governors of aimags, capital city, soums and districts shall determine local policy on energy
conservation and implement it in collaboration with related organizations.

7.3. Governors of aimags, capital city, soums and districts shall prepare progress reports of the
implementation related to energy conservation in aimags and the Capital city, and forward them
to the Energy Conservation Council.

Article 8. Energy Conservation Council

8.1. The Energy Regulatory Commission shall exercise powers of the Energy Conservation
Council which has duties of regulating and implementing policies on energy conservation.

8.2. Those structure of the Energy Regulatory Commission shall be compromised of a

specialized unit, which is responsible for implementing energy efficiency policies.

Article 9. Mandates of the Energy Conservation Council

9.1. The Energy Conservation Council shall exercise the following authorities:

9.1.1. to facilitate the implementation of the state policy and legislation regarding energy
conservation at the national level;

9.1.2 . to formulate national programs regarding energy conservation;

9.1.3. to ensure that annual performance and report of the designated consumers on
energy consumption are submitted;

9.1.4. to register designated consumers;

9.1.5. to grant or cancel an accreditation for energy auditing agencies and professional
organizations to provide energy efficiency services;

9.1.6. to grant a license for energy auditors and energy managers;

9.1.7. to create a database regarding efficient use of energy and its conservation, advertise
it to the public and organize public awareness campaign;
 9.1.8. to organize training and specializing programs for energy auditors and energy
conservation managers;

9.1.9. the Energy Conservation Council shall formulate the following regulations;

9.1.9.a. regulation for energy auditing activities stated in Articles 13.3 and 13.4 of
this Law;

9.1.9.b. regulation for accreditation procedures and requirements of the energy

auditing agency and professional energy organizations;

9.1.9.c. regulation for organizing the training for energy auditors and energy
conservation managers and granting and revoking accreditation;

9.1.9.d. regulation for classification, grading, labeling and monitoring of the

energy powered products, such as machinery, electronic equipment, home
appliances regarding their energy consumption;

9.1.9.e. regulation for defining and registering designated consumers and

regulation for an annual implementation plan and its reporting procedures
regarding energy conservation for the designated consumers and methodology of
the formulating and submitting its programs;

9.1.9.f. regulation for support and incentive awards for citizens, legal entities and
organizations who construct energy-efficient buildings, or manufacture and
import energy-efficient machinery, equipment, products and materials, or improve
the energy efficiency and make energy conservation; and

9.1.9.g. other applicable rules and regulations.

9.1.10. to prepare implementation reports of the energy conservation policy and

legislation and submit it to the government annually; and

9.1.11. to resolve any dispute regarding professional services of energy conservation in

accordance with its jurisdiction.

9.2. The Energy Conservation Council can authorize non-governmental organizations to carry
out its functions stated in Articles 9.1.7 and 9.1.8 of this Law.

CHAPTER THREE.

RIGHTS AND OBLIGATIONS OF ENERGY CONSUMERS

Article 10. Rights and obligations of designated consumers

10.1. The designated consumers shall have the following rights:

 10.1.1. to select an Energy Auditing Agency;

10.1.2. to demand a reasonable explanation regarding conclusions and recommendations

of energy auditing;

10.1.3. to select and implement recommendations stated in Article 13.4.2 of this Law;
and

10.1.4. to receive incentives for implementing energy conservation measures.

10.2. The designated consumers shall have the following obligations:

10.2.1. to conserve energy and use it efficiently;

10.2.2. to obtain an energy audit on its energy consumption;

10.2.3. to formulate and implement programs regarding energy conservation and its
action plan for its own organization;

10.2.4. to submit a report of energy auditing and a report of implementation of the

program regarding energy conservation measures to the Energy Conservation Council
annually;

10.2.5. to notify in written form within 14 days to the Energy Conservation Council the
appointment and dismissal of an Energy Manager; and

10.2.6. to demand the Energy Conservation Council solve issues regarding energy
professional services by submitting complaints.

Article 11. Mandates of citizens, legal entities and organizations

11.1. The citizens, legal entities and organizations shall have the following rights and
obligations:

11.1.1. to ask advice regarding energy conservation matters from organizations that
provide energy conservation services; and

11.1.2. to obtain an energy audit voluntarily.

Article 12. Incentives

12.1. The citizens, legal entities and organizations who construct energy-efficient buildings, or
manufacture and import energy-efficient machinery, equipment, products and materials, or
improve energy efficiency and make energy conservation, shall receive incentives and the
incentive award procedure shall be regulated as provided in Article 9.1.9.e of this Law and
Articles 6.1.6, 6.1.8, and 6.1.11 of the Law on Air.
 CHAPTER FOUR.

ENERGY CONSERVATION SERVICES

Article 13. An Energy Auditing Agency, an Energy Auditor

13.1. An Energy Auditing Agency and an Energy Auditor shall conduct their energy auditing
services on the basis of accreditation.

13.2. Energy Auditing Activity shall be regulated as provided in Article 9.1.9.a of this Law.

13.3. An Energy Auditing Agency and an Energy Auditor shall have the following rights:

13.3.1. to obtain necessary explanations and materials from the designated consumers in
the course of auditing; and

13.3.2. to audit and provide conclusions on energy consumption upon request of citizens,
legal entities and organizations.

13.4. An Energy Auditing Agency and an Energy Auditor shall have the following obligations:

13.4.1. to calculate the efficiency, analyze and conclude the energy consumption of
designated consumers;

13.4.2. to provide technical feasibility and economic efficiency recommendations to

designated consumers; and

13.4.3. to explain the grounds of a given recommendation and/or conclusion upon request
of designated consumers.

Article 14. Professional organizations who conduct energy efficiency services

14.1. Professional organizations who conduct energy efficiency services shall conduct the
activities related to the promotion of efficient energy use on the basis of accreditation.

14.2. Professional organizations who conduct energy efficiency services shall conduct its
professional services based on the contract entered into with the designated consumer.

14.3. Professional organizations who conduct energy efficiency services may invest in the
process of energy efficiency services and shall take full responsibility for its risk.

Article 15. An Energy Manager

15.1. An Energy Manager shall be certified.

15.2. An Energy Manager shall have the following rights and obligations:
 15.2.1. to comply with the Energy Conservation Council’s orientations in its operations;

15.2.2. to organize and ensure the implementation of the plan of the designated consumer
regarding their energy conservation and energy efficiency;

15.2.3. to monitor the energy conservation activities of the designated consumer;

15.2.4. to submit a report of their activities to the Energy Conservation Council annually;
and

15.2.5. to participate in specialization training organized by the Energy Conservation

Council.

CHAPTER FIVE.

MISCELLANEOUS

Article 16. Liabilities for Violation of the Legislation on Energy Conservation

16.1. If a violation of the legislation on Energy Conservation is not subject to the Criminal Code,
the following administrative penalties shall be imposed by judges:

16.1.1. for failure of its obligation as provided in Article 10.2 of this Law, the official
shall be subject to a fine of 2-5 times the amount of the official minimum monthly wage
and legal entities and organizations shall be subject to a fine of 10-15 times the amount of
the official minimum monthly wage.

16.2. An Energy Auditing Agency and professional organizations, and an Energy Auditor, who
conduct insufficient services and cause damage to citizens, legal entities and organizations, shall
be liable to reimburse the damage and their accreditation will be revoked.

Article 17. Entry into Validity

17.1. This law shall enter into force on 26th November 2015.

CHAIRMAN OF THE STATE IKH KHURAL Z.ENHKBOLD