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“Bill on the Promotion of the Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Source Materials by Energy Suppliers” and “Bill to Amend the Act on the Promotion of the Development and Introduction of Alternative Energy”

“Bill on the Promotion of the Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Source Materials by Energy Suppliers” and “Bill to Amend the Act on the Promotion of the Development and Introduction of Alternative Energy”

The Ministry of Economy, Trade and Industry (METI) will submit two bills to the 171st ordinary session of the Diet: the “Bill on the Promotion of the Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers” and the “Bill to Amend the Act on the Promotion of the Development and Introduction of Alternative Energy.”

The aim of these bills is to ensure energy supply in a stable and appropriate manner to Japan by reviewing current alternative-energy policies and facilitating the use of nonfossil energy sources and the effective use of fossil energy materials.

1. Background of legislation and amendment

Japan has been lowering its dependence on oil through alternative-energy policies set pursuant to the Act on the Promotion of the Development and Introduction of Alternative Energy (Alternative Energy Law), which was instituted in response to the oil crisis.

However, Japan’s dependence on fossil fuels, including coal and natural gas, remain more than 80%. This raises the concern that, in the future, Japan may no longer be able to secure sufficient fossil fuels in either quantity or quality, as the global demand for energy has surged recently.

In addition, the nation’s goal of creating a low-carbon society has made it essential to take measures directed at each stage where energy is supplied and used.

2. Purpose of legislation and amendment

To respond to this situation, the government needs to review its alternative-energy policies and promote the use of nonfossil energy sources and the effective use of fossil energy materials by energy suppliers, and thereby ensure energy supply in a stable and appropriate manner to the country. This is why the above two bills will be submitted to the 171st ordinary session of the Diet.

3. Outline of the bills

(a) Bill on the Promotion of the Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers
This is aimed at prompting energy suppliers to use nonfossil energy sources and effectively use fossil energy materials through measures including the following:

  • (1) Use of nonfossil energy sources
    • Use of solar power, nuclear power and other nonfossil sources of power
    • Use of biofuel and biogas
    • Purchase of electricity at fair prices, regarding the use of electricity generated from solar power
  • (2) Effective use of fossil energy materials
    • Effective use of crude oil and natural gas in producing gasoline and town gas

(b) Bill to Amend the Act on the Promotion of the Development and Introduction of Alternative Energy
The current alternative-energy policies are to be reviewed in order to change the type of energy to be developed and introduced pursuant to this law from “alternative energy” to “nonfossil energy” (e.g., renewable energy, nuclear energy).

Release Date

March 10, 2009

Division in Charge

General Policy Division, Agency for Natural Resources and Energy