Joint Circular No. 142/2007/TTLT/BTC-BCT guiding the management and use of state budget funds for the implementation of the National Target Program on Rational Energy Use and Efficiency.

JOINT CIRCULAR

Guidelines for the management and use of state budget funds

for implementing the National Target Program on Rational Energy Use and Efficiency

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decision No. 79/2006/QD-TTg dated April 14, 2006 of the Prime Minister approving the National Target Program on Rational Energy Use and Efficiency for the period 2006-2015;  period 2006-2015;

Pursuant to Decision No. 42/2002/QD-TTg dated March 19, 2002 of the Prime Minister on the management and implementation of National Target Programs;

The Ministry of Finance and the Ministry of Industry and Trade jointly issue guidelines for the management and use of state budget funds for implementing the National Target Program on Rational Energy Use and Efficiency as follows: 

I- GENERAL PROVISIONS

1. These Circular guides the management and use of state budget funds for implementing the National Target Program on Rational Energy Use and Efficiency approved by Decision No. 79/2006/QD-TTg dated April 14, 2006 of the Prime Minister for the period 2006-2015 (hereinafter referred to as the National Target Program on Rational Energy Use).

2. Units using state budget funds to implement the National Target Program on Rational Energy Use must comply with the intended purpose, follow established regulations, be subject to inspection and supervision by competent authorities, and settle accounts for funds used annually and at the end of projects according to current regulations.

II- SPECIFIC PROVISIONS

1. Contents of Expenditure under the Program:

a) Developing and promulgating legal documents to strengthen state management over rational energy use;

b) Promoting awareness of rational energy use and efficiency, including: Producing television programs, radio broadcasts, press articles; establishing websites on energy conservation; displaying and introducing energy-saving technologies; organizing design competitions and model building contests for energy-efficient buildings; printing brochures, pamphlets, posters, and handbooks on energy conservation;

c) Developing training programs, compiling textbooks, and organizing teacher training sessions on incorporating knowledge about rational energy use and efficiency into various subjects suitable for each educational level within the national education system; printing textbooks and materials for integrated teaching;

d) Establishing pilot models: Rational energy use in individual households; managing and using energy efficiently in enterprises, and in buildings;

đ) Developing and promulgating minimum energy performance standards for selected equipment types as decided by the Prime Minister;

e) Labeling and certifying certain energy-saving products as selected;

g) Supporting some energy audit firms at key energy-consuming facilities and buildings;

h) Applying energy-saving solutions for transportation vehicles;

i) Evaluating and monitoring the implementation of specialized targets of each project;

k) Organizing seminars, training courses, and workshops on energy conservation for managers of key energy-consuming facilities, Departments of Industry, Departments of Construction, technical staff, and public relations officers;

l) Other expenditures to implement the program (if any).

2. Specific expenditure levels:

Units using state budget funds to implement the National Target Program on Rational Energy Use must adhere to current financial expenditure standards and regulations set by competent state authorities; this Circular provides additional guidance on specific expenditure levels as follows:

a) Regarding expenditure on model development:

- For household energy-saving models, the state budget will support up to 30% of material and equipment costs; for the model (two compact lamps, solar water heater), the maximum support is not more than 1,350,000 VND per model; for the model (two compact lamps, biogas digester), the maximum support is not more than 800,000 VND per model. For households classified as poor according to Decision No. 7901/2005/QD-TTg dated July 8, 2005 of the Prime Minister on the poverty standard for the period 2006-2010, the state budget support can be twice the aforementioned amount.

- For models on efficient energy use in buildings and enterprises, the state budget will support up to 30% of costs, but not exceeding 70 million VND per model.

b) Regarding energy audits of enterprises, the state budget will support up to 50% of audit costs (for independent auditing firms), but not exceeding 50 million VND per enterprise, and the time interval between two audits shall follow the guidelines of the Ministry of Industry and Trade;

c) Labeling energy-efficient products of enterprises, the state budget will support up to 30% of costs, but not exceeding 60 million VND per enterprise;

The above support levels are maximum amounts; based on specific cases, the heads of project management agencies shall approve appropriate support levels consistent with the nature and scale of each project.

3. Conditions for receiving financial support to implement the program:

Organizations and individuals implementing projects on rational energy use and efficiency that receive funding from the National Target Program on Rational Energy Use must meet the following conditions:

a) The content must align with the National Target Program on Rational Energy Use approved by the Prime Minister;

b) The project must be selected according to the Regulation on Selecting Organizations and Individuals to Lead Projects under the National Target Program on Rational Energy Use and Efficiency issued together with Decision No. 02/QĐ-BCĐ dated September 20, 2006 of the Minister - Head of the Steering Committee for the National Target Program on Rational Energy Use and Efficiency;

c) Approval decision for the project by the competent authority;

d) Organizations or individuals who have invested capital or committed to invest sufficient funds for the implementation of the project that has been approved by the competent authority (after deducting the amount of funding supported by the state budget);

đ) Not having received support from any state financial source;

4. Budget Estimation, Execution, and Settlement:

The preparation of the budget estimate, execution, and settlement of funds allocated for tasks under the National Target Program on Efficient Energy Use shall be carried out in accordance with the provisions of the State Budget Law and current guiding documents; this Circular provides detailed guidance on certain matters as follows:

a) On budget estimation:

Annually, based on the Prime Minister's Directive, the Circular guiding the preparation of the state budget by the Ministry of Finance, the situation of implementation in the previous year, the content and volume of work to be implemented under the National Target Program on Efficient Energy Use for the planning year, economic and technical norms, current financial expenditure regulations, and certain expenditure levels specified in this Circular:

- Units assigned the task of implementing the contents of the National Target Program on Efficient Energy Use shall base their budget estimates on the requirements, content, and progress of the project implementation plan, report to the ministry or central agency responsible for the program for consolidation into the annual budget estimate of the ministry or central agency, which will then be submitted to the Ministry of Industry and Trade (the program management agency), the Ministry of Finance, and the Ministry of Planning and Investment.

- The Ministry of Industry and Trade shall prepare and consolidate the budget estimate for the implementation of the National Target Program on Efficient Energy Use (including funds managed by the Ministry of Industry and Trade and those of other ministries and central agencies responsible for managing the projects) and submit it to the Ministry of Finance and the Ministry of Planning and Investment at the time of annual budget estimation.

- Based on the total amount of funds for the National Target Program on Efficient Energy Use announced by the competent authority, the Ministry of Industry and Trade, in coordination with the Ministry of Finance and the Ministry of Planning and Investment, shall propose the allocation of funds for the National Target Program on Efficient Energy Use, both structurally and specifically, to the ministries and central agencies responsible for managing the projects, in accordance with the approved objectives and tasks; these proposals will be submitted to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the Government and the National Assembly for approval.

b) Regarding budget execution:

Based on the budget estimate assigned by the competent authority, the allocation and withdrawal of budget estimates by units shall be carried out in accordance with current regulations.

The State Treasury shall control expenditures according to the provisions of Circular No. 79/2003/TT-BTC dated August 13, 2003, issued by the Ministry of Finance, guiding the management, issuance, and payment of state budget expenditures through the State Treasury, current expenditure norms and regulations, and the provisions of this Circular.

Funds for the implementation of the National Target Program on Efficient Energy Use as stipulated in this Circular shall be reflected and settled according to the code number of the National Target Program on Efficient Energy Use and Efficiency issued together with Decision No. 75/2006/QĐ-BTC dated December 20, 2006, of the Minister of Finance.

c) Regarding budget settlement:

- Periodically, at the end of the year, and upon completion of the project, ministries and central agencies responsible for managing the projects shall organize the acceptance of work volumes by stages (for ongoing projects) or the final acceptance of the project (for completed projects) as the basis for payment and settlement of project funds.

- The procedures for preparing, reviewing, auditing reports, report forms, submission deadlines, and review times for the final settlement report shall be carried out in accordance with current regulations.

d) Inspection and Audit:

The Ministry of Industry and Trade (the program management agency) and ministries and central agencies responsible for managing the projects shall cooperate with the Ministry of Finance and the Ministry of Planning and Investment to periodically and randomly inspect the implementation of the program at units to ensure the proper and effective management and use of funds for the National Target Program on Efficient Energy Use.

e) Reporting on Program Implementation Results:

Every quarter and annually, ministries and central agencies responsible for managing the projects shall report on the results of program implementation to the Ministry of Industry and Trade for consolidation and reporting to the Prime Minister, while also sending copies to the Ministry of Finance and the Ministry of Planning and Investment.

III. IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette.

During implementation, if there are any difficulties, please reflect them to  the Ministry of Finance and the Ministry of Industry and Trade for prompt resolution.