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4.6 Energy Conservation Assistance Law
The spirit of this law is to take actions for assisting business operators who voluntarily tackle such activities as rationalization of energy use and utilization of recycled resources. The contents concerned with the rationalization of energy use in the law are described below. In the law, "the rationalization of energy use" is considered as a concept covering the utilization of oil-substituted energy.
(1) Guidelines for efforts
The competent minister shall establish guidelines for voluntary efforts of business operators and building owners for the rationalization of energy use.
(2) Specific business activities
The following three categories of activities are defined as "specific business activities", and any business operator, etc. who is going to execute these activities can prepare and submit an activity plan to the competent minister, to obtain his approval:

a. to install or improve the equipment contributing to the rationalization of energy use in a factory or other business location belonging to any specific business category Note),

b. to use any building material or to install or improve any equipment respectively contributing to the rationalization of energy use in the construction of a building

c. to conduct R&D on the manufacturing technique of an industrial product contributing to the rationalization of energy use.

Note: The same business categories as covered by the designated energy management factory scheme (Section 1, Article 6, Energy Conservation Law)
(3) Approval of activity plan
The competent minister shall approve the activity plan if he recognizes that it satisfies the requirements properly in reference to the guidelines for efforts stated in (1).
(4) Assistance measures
For the specific business activities conducted in conformity with the approved activity plan, such assistance measures as

a. very low interest finance Note 1),

b. bond under Industrial Foundation Improvement Fund

c. exemptions in taxation Note 2)

can be taken.

Note 1: Financial institutions (Japan Development Bank, etc.) who lend the necessary funds have the
interests partially covered by Oil Special Account (budgetary action without any legal provision). The interest is far lower than the lowest interest for the fiscal investments and loans (a. 2.0% for the specific activities of factories, etc, b. 2.0% for those of buildings, as of February 17, 1999).

Note 2: For the acquisition of certain equipment contributing to the rationalization of energy use, a tax exemption of 7% or a specially added depreciation of 30% for the first fiscal year is admitted under the conventional tax system for promotion of investment in reformation of energy supply and demand structure (energy reformation tax system), and in addition, the management system type energy conservation investments in factories, etc. not covered by the energy reformation tax system can also be covered for similar tax exemption by this law subject to approval of activity plans. For technological development, a tax exemption of 6% is admitted.
(5) Specific facilities
Heat supply facilities required for regionally constructing an effective energy utilization system such as large-scale cogeneration regional heat supply system or cascade heat utilization type industrial complex are defined as "specific facilities", and the borrowed funds required for installing or improving those facilities are covered by the bonds of the Industrial Foundation Improvement Fund.
(6) Enforcement of the law
The law was enforced on June 25, 1993, and remains in force for only 10 years.


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