LAW 697 OF 2001

(October 3)

Official Journal No. 44.573 of 05 October 2001

by which the rational and efficient use of energy is encouraged, the use of alternative energies is promoted and other provisions are dictated.

The Congress of Colombia,

DECRETA:

ARTICLE 1o. Declare the use of the National Energy and Energy Efficiency (ERU) as a matter of national social, public and convenience, fundamental to ensure full and timely energy supply, competitiveness of the Colombian economy, consumer protection and the promotion of the use of non-conventional energy in a sustainable way with the environment and natural resources.

ARTICLE 2o. The State must establish the rules and infrastructure necessary for the compliance of this law, creating the legal, technical, economic and financial structure necessary to achieve the development of concrete projects, ERUs, short, medium and long term, economically and environmentally viable, ensuring sustainable development, while generating awareness and knowledge and the use of alternative forms of energy.

ARTICLE 3o. DEFINITIONS. For the purposes of interpreting and applying this law, it is understood by

1. ERUs: It is the optimal use of energy in each and every energy chain, from the selection of the energy source, its production, transformation, transport, distribution, and consumption including its reuse where possible, looking at each and every activity, in the chain sustainable development.

2. Efficient use of energy: It is the use of energy, in such a way as to obtain the highest energy efficiency, either in an original form of energy and/or during any production, transformation, transport, distribution and consumption of the different forms of energy, within the framework of sustainable development and respecting standards, in force on the environment and renewable natural resources.

3. Sustainable development: Sustainable development is understood to lead to economic growth, to the elevation of the quality of life and to social welfare, without depleting the base of renewable natural resources on which it is based, nor to deteriorate the the environment or the right of future generations to use it for the satisfaction of their own needs.

4. Optimal use: It consists in seeking the greatest benefit-cost relationship in all activities involving the efficient use of energy, within the framework of sustainable development and respecting the current regulations on the environment and renewable natural resources.

5. Energy source: Every physical element of which we can obtain energy, in order to take advantage of it. They are divided into conventional and unconventional energy sources.

6. Energy Chain: It is the set of all processes and activities aimed at harnessing energy that starts with the energy source itself and extends to its final use.

7. Energy Efficiency: It is the relationship between the energy used and the total used in any process of the energy chain, within the framework of sustainable development and respecting the current regulations on the environment and the resources Renewable natural resources.

8. Conventional energy sources: For the purposes of this law, conventional energy sources are those used intensively and widely marketed in the country.

9. Non-conventional energy sources: For the purposes of this law are unconventional sources of energy, those energy sources available globally that are environmentally sustainable, but in the country are not employed or are used in a marginal way and are not widely marketed.

10. Solar Energy: Call solar energy, to the energy carried by the electromagnetic waves coming from the sun.

11. Wind Energy: Call the wind energy, the energy that can be obtained from the wind currents.

12. Geothermal: It is the energy that can be obtained from the heat of the terrestrial subsurface.

13. Biomass: It is any type of organic matter that has had its immediate origin as a consequence of a biological process and all plant matter originated by the process of photosynthesis, as well as the metabolic processes of the organisms heterotrofos.

14. Small hydro-energy uses: It is the potential energy of a hydraulic flow in a determined jump that does not exceed the equivalent of 10 MW.

ARTICLE 4. RESPONSIBLE ENTITY. The Ministry of Mines and Energy shall be the entity responsible for promoting, organizing, ensuring the development and monitoring of programs for the rational and efficient use of energy in accordance with the provisions of the present law, which aims to:

1. Promote and advise ERUs projects, presented by natural or legal persons governed by public or private law, in accordance with the guidelines of the Program for the Rational and Efficient Use of Energy and other forms of non-conventional energy (PROURE), studying economic, financial, technological and environmental feasibility.

2. Promote the use of non-conventional energy within the Program for the Rational and Efficient Use of Energy and other forms of Non-Conventional Energy (PROURE), studying technological, environmental and economic feasibility.

ARTICLE 5o. CREATION OF PROURE. Create the Program for the Rational and efficient use of energy and other forms of non-conventional energy "PROURE", which will be designed by the Ministry of Mines and Energy, whose purpose is to gradually implement programs for all the Energy chain, it is permanently complying with the minimum levels of energy efficiency and without prejudice to the provisions of current regulations on the environment and renewable natural resources.

ARTICLE 6o. SPECIAL OBLIGATIONS OF UTILITY COMPANIES. In addition to the obligations arising from particular programs designed, the Public Service Companies that generate, supply and market electric power and gas and carry out ERUs programs, they will have the special obligation within the context of this law, to carry out ERUs programs for users considering the technical and financial aspect of it and to advise its users for the implementation of the programs ERUs to be performed in compliance with this law.

ARTICLE 7o. STIMULI AND SANCTIONS.

1. For research: The National Government will promote the creation of research programs in the National and Efficient Use of Energy through Colciencias, as established in Law 29 of 1990 and Decree 393 of 1991.

2. For education: The Icetex will benefit from the granting of loans to students who want to study careers or specific courses specifically for application in the ERUs field.

3. Public Recognition: The National Government will create distinctions for natural or legal persons who stand out at the national level in application of the ERUs, which will be awarded annually. The Ministry of Mines and Energy will provide extensive deployment to the award-winning media in the country's most important media.

4. General: The National Government will establish incentives and impose sanctions, according to the program for the rational and efficient use of energy and other forms of non-conventional energy, according to the current legal norms.

ARTICLE 8o. DISCLOSURE. The Ministry of Mines and Energy in coordination with relevant public and private entities will design strategies for the education and promotion of the National and Efficient Use of Energy within the citizenry, based on campaigns information using mass media and other suitable channels. Utilities that provide electric power and gas services must print on the bill of receipt of invoice or collection, messages motivating, the rational and efficient use of the Energy and its benefits with the preservation of the environment environment.

ARTICLE 9o. PROMOTION OF THE USE OF NON-CONVENTIONAL ENERGY SOURCES. The Ministry of Mines and Energy will formulate the guidelines of policies, strategies and instruments for the promotion and promotion of non-conventional energy sources, with prelation in uninterconnected zones.

ARTICLE 10. The National Government through the programs that are designed, will encourage and promote companies that import or produce parts, heaters, solar panels, biogas generators, engines wind, and/or any other technology or product that uses as a total or partial source the non-conventional energies, either for direct sale to the public or for the production of other implements, oriented specifically to projects in the ERUs field, in accordance with current legal standards.

ARTICLE 11. VALIDITY. This law governs from the date of its enactment and repeals any provisions that are contrary to it.

The President of the honorable Senate of the Republic,

CARLOS GARCIA ORJUELA.

The Secretary General of the honorable Senate of the Republic,

MANUEL ENRIQUEZ ROSERO.

The President of the honorable House of Representatives,

GUILLERMO GAVIRIA ZAPATA.

The Secretary General of the honorable House of Representatives,

ANGELINO LIZANO RIVERA.

COLOMBIA-NATIONAL GOVERNMENT

Publish and comply.

Dada en Bogotá, D. C., 3 October 2001.

ANDRES PASTRANA ARANGO

The Minister of Mines and Energy,

LUIS RAMIRO VALENCIA COSSIO.