Law for the Rational Use of Energy

This Law is of public order and social interest, and its purpose is to promote rational and efficient use of energy, as well as to establish its competencies and activities for planning and implementation of energy efficiency, mechanisms for financing and promotion, management and systematization of information on energy efficiency, technical regulation, verification and monitoring processes for its compliance and applicable sanctions.

The Secretariat of State in the Office of Energy (SEN) together with the Secretariat of State in the Office of Finance (SEFIN), must establish the regulations and norms necessary for the compliance of this Law.

For purposes of this Law, the following definitions are stated:

• 1)

  Technical Barriers to Trade Agreement (TBT): Agreement promoted by the World Trade Organization (WTO), to promote that technical regulations, standards and conformity assessment procedures are not discriminatory and do not create unnecessary obstacles to international trade.

• 2)

  Energy Audit: Study that includes analysis of energy flows in an installation, process or system, identification of the current energy consumption level and evaluation of energy savings potentials and measures, to achieve them through the adoption of technologies or energy management practices, without these negatively affecting its performance.

• 3)

  Self-Producer: User who owns electric power generation equipment within their own home or internal facilities, capable of operating in parallel with the grid.

• 4)

  Inter-institutional Commission for Energy Information (CIIE): Instance of inter-institutional coordination in which actions are developed aimed at discussion, promotion, encouragement, database, reports, reports and other types of statistical information related to the energy sector.

• 5)

  Advisory Council: Is the advisory and consulting body of the Secretariat of State in the Office of Energy (SEN) and of the Fund.

• 6)

  General Directorate of Renewable Energy and Energy Efficiency (DGEREE): General directorate responsible for the application of this Law.

• 7)

  Energy Efficiency: Is a quality that is generated from actions, including responsible habits and the adoption of technologies, that lead to a reduction in energy consumption per unit of product produced or service provided and that ensure the same level of quality or higher.

• 8)

  National Strategy for Rational and Efficient Use of Energy: Planning, promotion and national policy instrument for the development of activities aimed at rational and efficient energy use.

• 9)

  Energy Efficiency Label: Adhesive affixed to equipment, apparatus or system available on the market, which provides verified and certified information about its energy consumption, its comparison with consumption of similar equipment, apparatus or systems and its compliance with applicable standards or norms.

• 10)

  Conformity Assessment: Determination of the degree of compliance of equipment, apparatus or system with international energy efficiency standards, national standards or other specifications, prescriptions or characteristics endorsed, issued or recognized in terms of this Law, which shall include, among others, sampling, testing, calibration, certification and verification procedures.

• 11)

  Fund: Is the Fund for Rational and Efficient Use of Energy (FUREE), intended for financing studies, energy audits and projects for rational and efficient use of energy.

• 12)

  Honduran Accreditation Body (OHA): Public entity responsible for evaluation and accreditation activities.

• 13)

  Honduran Standardization Organization (OHN): Public entity responsible for developing national technical standards and adopting international standards.

• 14)

  Regulated Organisms of Sectors or Activities that Carry Out Energy Consumption: Public or private entities that consume energy subject to compliance with legally binding obligations.

• 15)

  Demonstrative Projects: Those that have the purpose of proving the benefits of Energy Efficiency.

• 16)

  Regulation: Provisions of this Law developed through regulations together with specific technical norms.

• 17)

  Secretariat: The Secretariat of State in the Office of Energy (SEN), established by Executive Decree Number PCM-48-2017 of August 7, 2017 and published in the Official Gazette "La Gaceta" on this same date.

• 18)

  SIEN: Is the National Energy Information System.

• 19)

  National Quality System (SNC): Set that makes up the quality infrastructure, composed of three (3) organisms, the Honduran Accreditation Body, the Honduran Standardization Organization and the Honduran Metrology Center.

• 20)

  Rational Use of Energy: Is the use of energy to carry out a productive activity or service and that entails optimization between energy consumption and the products or services obtained.

The Secretariat of State in the Office of Energy (SEN), through the DGEREE shall be responsible for the application of this Law with the powers listed below in an enumerative and not limiting manner:

• 1)

  In matters of promotion of rational and efficient energy use: a) Promote actions for the promotion of rational and efficient energy use and self-production; and, b) Identify best international practices regarding energy efficiency and promote, as deemed appropriate, their implementation in Honduran territory.

• 2)

  In planning matters:

  • a)

    Prepare with the support of the Advisory Council, the National Strategy for Rational and Efficient Energy Use, as an instrument of planning, promotion and development of activities; which shall have a projection of eight (8) years and must be reviewed and updated every four (4) years;

  • b)

    Coordinate the execution of the actions established in the strategy; and, c) Promote, in coordination with the competent institutions, that in commercial, industrial and residential buildings, include within the requirements the use of intelligent technologies for controlling energy consumption.

• 3)

  In regulatory matters:

  • a)

    Issue, in coordination with the competent authorities and departments, technical regulations on energy efficiency and evaluation, following good regulatory practices and respecting the Technical Barriers to Trade Agreement;

  • b)

    Issue the Regulation to conduct energy audits; and, c) Issue other regulations that derive from this Law.

• 4)

  In coordination matters:

  • a)

    Promote, in coordination with the Honduran Institute of Land Transport (IHTT), the municipal corporations with the highest vehicular flow in the country and the Secretariat of State in the Offices of Natural Resources and Environment (SERNA), a Standardization Plan on Energy Efficiency for passenger transport units, personal use and cargo;

  • b)

    The Secretariat of State in the Office of Energy (SEN), in coordination with the Honduran Institute of Land Transport (IHTT) must promote the transition of current public transport units to low-emission units;

  • c)

    Establish in coordination with the Honduran Institute of Land Transport (IHTT), the Secretariat of State in the Offices of Natural Resources and Environment (SERNA) and other institutions involved in the sector, the emission levels that must be complied with by motor vehicles of any kind, which are marketed in the country;

  • d)

    The Secretariat of State in the Office of Energy (SEN) in coordination with the Honduran Institute of Land Transport (IHTT), must establish the conditions and minimum requirements that must be met by vehicles used in public transport of people and cargo, prior to the granting of permits, in order to reduce fuel consumption and emissions of greenhouse gases;

  • e)

    The Secretariat of State in the Office of Energy (SEN) in coordination with the Secretariat of State in the Office of Education and the Council of Higher Education, must promote the incorporation in the curricula of the pre-basic, basic, secondary and university levels, contents on energy efficiency and renewable energy;

  • f)

    Promote the development of technical standards related to rational and efficient energy use, in coordination with the Honduran Standardization Organization (OHN), respecting the terms of the Technical Barriers to Trade Agreement of the World Trade Organization, the good standardization practices established by the International Organization for Standardization;

  • g)

    Promote through the different means of communication, disclosure initiatives in matters of rational and efficient energy use;

  • h)

    The Secretariat of State in the Office of Energy (SEN), in coordination with the Secretariat of State in the Office of Economic Development (SDE) through the Consumer Protection Directorate, shall be responsible for verifying and monitoring compliance with national and international technical standards on energy efficiency;

  • i)

    The Secretariat of State in the Office of Energy (SEN), in coordination with Municipal Corporations shall be responsible for the promotion of energy efficiency; and, j) The Secretariat of State in the Office of Energy (SEN) in coordination with the institutions that make up the Executive Branch, accompanied by the Legislative Branch and the Judicial Branch, must form Energy Savings and Efficiency Committees, in order to implement energy efficiency.

• 5)

  In labeling matters: a) The Secretariat of State in the Office of Energy (SEN) shall establish the characteristics of the labels based on international energy efficiency technical standards and those included in national regulation; and, b) The Secretariat of State in the Office of Energy (SEN) in coordination with the Secretariat of State in the Office of Economic Development (SDE) through the Consumer Protection Directorate, shall verify that energy efficiency labels comply with the parameters and requirements established;

• 6)

  In financing matters: The Secretariat of State in the Office of Energy (SEN), through the Fund and the Honduran Bank for Production and Housing (BANHPROVI), shall manage the financing of studies, energy audits, projects for rational and efficient energy use, self-production, by means of a short, medium or long-term loan; with clear rules and a transparent mechanism for the allocation of funds.

From the entry into force of this Law and its Regulation, new equipment, apparatus and systems that use electrical energy or fuel for their operation, which are imported and marketed in the country, must comply with the corresponding technical standards and include verified and certified information regarding consumption and energy performance through labels in accordance with the regulation.

Labels must be visible on equipment, apparatus, systems at exhibition points and in advertising material used for marketing at sales sites. In the case that equipment is labeled in a foreign language, the importer must attach to the side of the original label another with the corresponding translation into Spanish. Manufacturers and importers shall be responsible for the accuracy of the information contained in the label.

The adoption of standards and technical regulation related to rational energy use and energy efficiency shall be carried out respecting the terms of the Technical Barriers to Trade Agreement of the World Trade Organization (WTO) and international good standardization practices.

The Database of Energy Efficiency Indicators is created within the National Energy Information System (SIEN) under the responsibility of the Secretariat of State in the Office of Energy (SEN), in coordination with the Inter-institutional Commission for Energy Information; which has the purpose of registering, organizing, updating and disseminating information on rational and efficient energy use.

Those entities that have an annual energy consumption exceeding the amount established by the Regulation to be issued for that purpose, are subject to the performance of an energy audit and to implement the improvement proposal derived from the audit. Those who are subject to an energy audit may request funding from the Fund for the audit and equally the resources for the implementation of the improvement proposals. Natural or legal persons who conduct energy audits must register with the Secretariat of State in the Office of Energy (SEN) through the DGEREE in accordance with the requirements established for such registration.

Those who conduct energy audits, whether natural or legal persons registered by the Secretariat of State in the Office of Energy (SEN), are obligated to respect the legal provisions provided in the Law of Transparency and Access to Public Information, and in such terms to keep classified as confidential the information related to the installations and processes of any nature of their clients.

The Fund for Rational and Efficient Use of Energy (FUREE) is created, administered by the Secretariat of State in the Office of Energy (SEN). The objective of the Fund is the financing of studies, energy audits, projects and implementation of improvement proposals related to energy efficiency and self-production projects.

Economic resources from the different sources of financing shall be administered through accounts created in the Central Bank of Honduras (BCH) or through investment funds with the Honduran Bank for Production and Housing (BANHPROVI).

Resources allocated to energy efficiency constitute non-attachable assets and come from the following sources:

• 1)

  From the General Budget of Income and Expenses of the Republic, for each fiscal year, an allocation of Twenty Million Lempiras (L.20,000,000.00);

• 2)

  Contributions from the Central Government, from programs that it executes and that are related to the subject of this Law;

• 3)

  External cooperation from bilateral and multilateral organizations;

• 4)

  Multilateral banking;

• 5)

  Private investments;

• 6)

  Contributions, allocations, donations, bequests or transfers by any title from natural or legal persons, national or foreign;

• 7)

  Income received from the imposition of sanctions established in the Regulation of this Law;

• 8)

  By exception up to ten percent (10%) of the economic resources referred to in

The Advisory Council is created as an instance of advisory and consultative character of the Secretariat of State in the Office of Energy (SEN).

The Advisory Council shall be composed of the following representatives:

• 1)

  The head of the Secretariat of State in the Office of Energy (SEN), who shall preside over it;

• 2)

  A representative of the Secretariat of State in the Office of Natural Resources and Environment (SERNA);

• 3)

  A representative of the Secretariat of State in the Office of Finance (SEFIN);

• 4)

  A representative of the Secretariat of State in the Office of Education (SEDUC);

• 5)

  A representative of the Secretariat of State in the Office of Economic Development (SDE);

• 6)

  A representative of the Honduran Institute of Land Transport (IHTT);

• 7)

  A representative of the National Company of Electrical Energy (ENEE);

• 8)

  A representative of the National Quality System (SNC);

• 9)

  A representative of the Association of Municipalities of Honduras (AMHON);

• 10)

  A representative of the Honduran Council of Private Enterprise (COHEP);

• 11)

  A representative of the Council of Higher Education; and,

• 12)

  A representative of the Association of Mechanical, Electrical and Chemical Engineers of Honduras (CIMEQH). When deemed convenient, the Council may invite to its sessions representatives of other departments or entities of the public sector, professional organizations, civil society, the private sector, national and international experts and the general population. All representatives in the Council shall participate on an ad-honorem basis.

The Secretariat of State in the Office of Energy (SEN), shall identify and regulate the establishment of non-fiscal incentives, in order to promote energy efficiency and self-production with renewable energy systems and their storage. To do this, it will work in coordination with the corresponding instances.

In the breach of the provisions of this Law and in the imposition of sanctions, the severity of the infraction, the damage caused, background and recidivism of the offender must be considered. The infractions shall be classified as minor, serious and very serious and shall be developed in the Regulation of this Law.

Once this Law and its regulations enter into force, as well as the regulations and regulations related to Rational and Efficient Energy Use adopted by the Secretariat of State in the Office of Energy (SEN), these are mandatory and must establish prudent times or terms for their application.

Distributors that have inventory of equipment, apparatus and systems, shall have a period of Twelve (12) months for the same to be labeled, in order to comply with what is established in this Law and its Regulation.

The Secretariat of State in the Office of Energy (SEN), must issue the Regulation of this Law within a maximum period of twelve (12) months, counted from the entry into force of this Law. In the same manner it shall issue and approve all those regulations related to rational and efficient use of energy and self-production.

For the compliance of this Law, the Secretariat of State in the Office of Energy (SEN) must be strengthened with human, material, financial and technical resources, for which the Secretariat of State in the Office of Finance (SEFIN), shall allocate the necessary financial resources.

This Decree shall enter into force on the day of its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the sixteenth day of the month of April of two thousand twenty-four.