Bill has provisions for regulating energy consumption by equipment, appliances, buildings and industries
The Lok Sabha passed Energy Conservation (Amendment) Bill 2022 August 9, 2022. The bill brings in a list of amendments to the Energy Conservation Act 2001 to promote energy efficiency and conservation.
The bill focuses on energy transition, favouring renewable energy sources and green hydrogen.
It adheres to the five points presented by India during the 26th Conference of Parties (CoP 26) to the United Nations Framework Convention on Climate Change Conference that took place in Glasgow in 2021.
The bill focuses on deploying renewable energy sources, introducing the national carbon market, realising carbon trading and authorising the utilisation of non-fossil energy resources to achieve decarbonisation and the Sustainable Development Goals as outlined in the Paris Agreement.
It has provisions for regulating energy consumption by equipment, appliances, buildings and industries.
The major amendments proposed are:
Mandatory utilisation of non-fossil sources of energy
Bill specifies the end users to meet minimal demand from fossil sources. The end users include the industrial sector, transport sector and commercial buildings.
Non-adherence to the obligation for utilisation of non-fossil sources of energy will attract a fine of up to Rs 10 lakh.
Carbon market
The bill allows the government to provide a carbon trading scheme. The government or any authorised agency may issue carbon certificates to registered units that comply with the scheme. The units will be permitted to purchase or sell the certificates.
Energy conservation code for large buildings
The code specifies the standards for energy consumption per square metre. The new code provides standards for energy conservation, utilisation of non-conventional sources of energy and other necessities for green and sustainable buildings.
Upgradation of the scope of the Energy Conservation Building Code to residential buildings
The Energy Conservation Code under the Act pertains to commercial buildings erected after the code’s notification with a 100-kilowatt connected load or with a contractual demand of 120 kilo-volt-ampere and above.
The new Energy Conservation Building Code will apply to office and residential buildings with the above specifications for commercial buildings. The bill also allows the state governments to reduce the load limit.
Extension of scope to include vehicles and vessels
The scope has been expanded to include the Vehicles (Motor Vehicles Act 1988) and Vessels (ships and boats), according to the bill.
A fine of up to Rs 10 lakh will be imposed for not adhering to standards. In the case of vessels, an additional fine of up to twice the amount of oil equivalent of energy that is consumed above the authorised level will be imposed.
In the case of the vehicle manufacturers, failure to adhere to fuel consumption norms will attract a penalty of up to Rs 50,000 for each unit of the sold vehicle.
Revised penalty provisions by SERCs
The State Electricity Regulatory Commissions (SERC) are allowed to adjudge the penalties under the Act. The bill includes that the SERCs may also form regulations to discharge their duties.
Arrangement of members in the governing council of BEE
The Act has a provision for the formation of the Bureau of Energy Efficiency (BEE).
The governing council of the BEE is constituted of members between 20 and 26, including the six secretaries of departments, regulatory authorities and Bureau of Indian Standards and four members from industries and consumers.
The bill has provisions for members between 31 and 37, and the number of secretaries is increased to 12. Seven members from the industries and consumers sector will represent the council.
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