Act on Promotion of Contracts of National Governments and Other Entities Involving Due Care for Reduction of Greenhouse Gas Emission (Tentative translation)
(Purpose)
Article 1 The purpose of this Act is to clarify the responsibilities of the State, etc. concerning the promotion of contracts of the State, etc. involving due care for reduction of greenhouse gas emissions etc., while aiming to reduce greenhouse gases etc. emitted by the State, etc. by formulating the Basic Policy and otherwise specifying necessary matters, thereby contributing to establishing a society that can develop sustainably with reduced environmental loads.
(Definition)
Article 2 (1) The term "greenhouse gases, etc." as used in this Act means substances causing greenhouse gases and other environmental loads (referring to environmental loads prescribed in Article 2, paragraph (1) of the Basic Environment Act (Act No. 91 of 1993); the same applies hereinafter).
(2) The term "the State, etc." as used in this Act means the State, incorporated administrative agencies, etc., local governments, and local incorporated administrative agencies.
(3) The term "incorporated administrative agencies, etc." as used in this Act means incorporated administrative agencies (referring to incorporated administrative agencies prescribed in Article 2, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies (Act No. 103 of 1999)) or special public corporations (referring to juridical persons directly incorporated by an act or juridical persons incorporated by special juristic act for establishment by a special act, to which the provision of Article 4, item (xv) of the Act for Establishment of the Ministry of Internal Affairs and Communications (Act No.91 of 1999) is applicable; the same applies hereinafter), which are corporations all or majority of whose capital is funded by the State or corporations, which mainly obtain financial resources for expenses necessary for operating projects from the State-issued grants or subsidies, as specified by Cabinet Order.
(4) The term "local incorporated administrative agencies" as used in this Act means local incorporated administrative agencies as prescribed in Article 2, paragraph (1) of the Local Independent Administrative Agency Act (Act No. 118 of 2003).
(5) The term "heads of ministries and agencies" as used in this Act means the heads of ministries and agencies as prescribed in Article 20, paragraph (2) of the Public Finance Act (Act No. 34 of 1947).
(Responsibility of the State and Incorporated Administrative Agency)
Article 3 The State and incorporated administrative agencies, etc. must, for the purpose of reducing their emission of greenhouse gases, etc., endeavor to implement reasonable and appropriate use, etc. of energy, and while giving due consideration to economic efficiency and considering various elements other than the price, endeavor to promote contracts of the State and said incorporated administrative agencies, etc. involving due care for the reduction of greenhouse gas emissions, etc.
(Responsibility of the Local Government and Local Incorporated Administrative Agency)
Article 4 Local governments and local incorporated administrative agencies shall, for the purpose of reducing their emission of greenhouse gases, etc., endeavor to implement reasonable and appropriate use, etc. of energy, and while giving due consideration to economic efficiency and considering various elements other than price in accordance with the natural and social conditions of the areas in local governments, and in accordance with the administration and undertakings of local incorporated administrative agencies, endeavor to promote contracts of said local governments and local incorporated administrative agencies involving due care for the reduction of greenhouse gas emissions, etc.
(Basic Policy)
Article 5 (1) The State must provide for a Basic Policy for promoting contracts of the State and incorporated administrative agencies, etc. involving due care for the reduction of greenhouse gas emissions, etc. (hereinafter referred to as the "Basic Policy").
(2) The Basic Policy shall provide for the following matters:
(i) Basic orientation for promoting contracts involving due care for the reduction of greenhouse gas emissions, etc.;
(ii) Basic matters concerning reduction of greenhouse gas emissions, etc., under the following contracts where consideration needs to be emphasized on reduction of greenhouse gas emissions, etc.;
(a) Electricity supply contracts;
(b) Purchase contracts for products emitting greenhouse gases, etc. accompanied by usage.
(iii) Basic matters concerning contracts pertaining to energy conservation improvement projects (referring to projects where, for the purpose of energy conservation and with regard to expenses pertaining to electricity and fuels, etc. resulting from using government buildings, a business operator assures the reduction of not less than the amount of expenses required for designing, construction and maintenance, etc. pertaining to improvements including structure and facilities, etc. of said government buildings (hereinafter referred to as the "designing, etc." in this item) and comprehensively conducts said designing, etc.; the same applies in Article 7);
(iv) Basic matters concerning reduction of greenhouse gas emissions, etc. under contracts concerning buildings and other contracts of the State and incorporated administrative agencies, etc. other than the contracts listed in the preceding two items;
(v) Other important matters concerning promoting contracts involving due care for the reduction of greenhouse gas emissions, etc.
(3) In providing for the Basic Policy, the State shall contribute to effective promotion of the implementation of the National Government Action Plan as prescribed in Article 20-2, paragraph (1) of the Act on Promotion of Global Warming Countermeasures (Act No. 117 of 1998), and give consideration to stable energy supply.
(4) The Minister of the Environment must, upon consultation with the heads of ministries and agencies, etc. in advance (the heads of ministries and agencies in the case of the State and its competent minister in the case of incorporated administrative agencies, etc.; the same applies hereinafter), prepare a draft of the Basic Policy and seek a cabinet decision.
(5) In consulting with the heads of ministries and agencies, etc. under the preceding paragraph, such consultation shall be conducted in accordance with the draft prepared jointly by the Minister of the Environment and the minister with jurisdiction over the project pertaining to contracts provided for in the Basic Policy.
(6) When a cabinet decision under paragraph (4) is made, the Minister of the Environment must make public the Basic Policy without delay.
(7) The provisions of the preceding three paragraphs apply mutatis mutandis to any revision of the Basic Policy.
(Promotion of Contracts Involving Due Care for the Reduction of Greenhouse Gas Emissions in Accordance with the Basic Policy)
Article 6 The heads of ministries and agencies and the heads of incorporated administrative agencies, etc. (if said incorporated administrative agencies, etc. are special public corporations, the representatives thereof; the same applies hereinafter) must, as provided for by the Basic Policy, endeavor to implement necessary measures for the purpose of promoting contracts involving due care for the reduction of greenhouse gas emissions, etc.
(State-Incurred Debt)
Article 7 If the State incurs a debt regarding the energy conservation improvement projects, said debt is repaid within ten years from the relevant fiscal year.
(Publication of the Outline of the Contract Concluded)
Article 8 (1) At the end of each fiscal or business year, the heads of ministries and agencies and the heads of incorporated administrative agencies, etc. shall without delay, prepare and make public the outline of a record of contracts involving due care for the reduction of greenhouse gas emissions, etc. concluded, and notify the Minister of Environment to that effect.
(2) The heads of incorporated administrative agencies, etc. shall notify the Minister of Environment pursuant to the provision of the preceding paragraph through the competent minister of said incorporated administrative agencies, etc.
(Request of the Minister of the Environment)
Article 9 The Minister of Environment may request the heads of ministries and agencies, etc., to implement measures considered especially necessary for promoting contracts involving due care for the reduction of greenhouse gas emissions, etc.
(Arrangement of Information by the State)
Article 10 In order to contribute to the promotion of contracts involving due care for the reduction of greenhouse gas emissions, etc., the State shall arrange and analyze the status, etc. of the conclusion of contracts of the State and incorporated administrative agencies, etc. involving due care for the reduction of greenhouse gas emissions, etc., and widely provide the results thereof.
(Promotion of Contracts of Local Government and Local Incorporated Administrative Agency Involving Due Care for the Reduction of Greenhouse Gas Emissions)
Article 11 (1) Local governments and local incorporated administrative agencies shall endeavor to create a policy for promoting contracts of said local governments and local incorporated administrative agencies involving due care for the reduction of greenhouse gas emissions, etc.
(2) The policy referred to in the preceding paragraph shall provide for types of contracts involving due care for the reduction of greenhouse gas emissions, etc. in accordance with the natural and social conditions of the areas in local governments and in accordance with the administration and undertakings of local incorporated administrative agencies.
(3) Upon creating the policy referred to in paragraph (1), local governments and local incorporated administrative agencies shall, in accordance with said policy, endeavor to implement necessary measures for the purpose of promoting contracts involving due care for the reduction of greenhouse gas emissions, etc.
(4) Local governments and local incorporated administrative agencies shall endeavor to prepare and make public the outline of a record of contracts involving due care for the reduction of greenhouse gas emissions, etc. concluded.
(Securing Fair Competition)
Article 12 In formulating and implementing measures for promoting contracts of the State, etc. involving due care for the reduction of greenhouse gas emissions, etc., the State, etc. shall give consideration to securing fair competition, such as not bringing unreasonable disadvantages to small and medium-sized enterprises.
(Consistency with Other Measures)
Article 13 (1) In formulating and implementing measures for promoting contracts of the State, etc. involving due care for the reduction of greenhouse gas emissions, etc., the State, etc. shall secure consistency with other measures for contracts of the State, etc.
(2) In formulating and implementing measures for promoting contracts of the State, etc. involving due care for the reduction of greenhouse gas emissions, etc., the State, etc. shall secure consistency with the measures in accordance with the Basic Energy Plan prescribed in Article 12, paragraph (1) of the Basic Act on Energy Policy (Act No. 71 of 2002) and other measures in relation to the reduction of greenhouse gas emissions, etc. of the State, etc.
Supplementary Provisions
(Effective Date)
(1) This Act comes into effect as of the date to be specified by Cabinet Order within a period not exceeding six months from the date of promulgation.
(Review)
(2) The government shall, after 5 years having lapsed from the enforcement of this Act, conduct a review concerning the status, etc. of enforcement of this Act, and if it finds necessary, implement necessary measures based on the results thereof.
(3) While taking into consideration that electric power suppliers require a reasonable period of time for technical development for the purpose of reducing greenhouse gas emissions, etc. and changes in power source structures, and other similar issues, the government shall review the method, etc. for deciding a successful bidder by comprehensively evaluating electricity prices under electricity supply contracts to be concluded by the State and incorporated administrative agencies, etc., as well as coefficients indicating a degree of greenhouse gas emissions, etc. and the status of initiatives for reducing environmental loads (referred to as the "coefficients indicating a degree of greenhouse gas emissions, etc." in the following paragraph), and if it finds necessary, implement necessary measures based on the results thereof.
(4) With regard to electricity supply contracts to be concluded by the State and incorporated administrative agencies, etc., until otherwise provided for by this law, a successful bidder shall be decided among offerors pertaining to said bidding in accordance with the price pertaining to said offer, upon specifying the coefficients indicating a degree of greenhouse gas emissions, etc. as necessary qualifications for a participant to a bid.