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Date: 12-Jul-2023 Category: Extra Ordinary State: Union Government Country: India

Environment (Utilisation of Crop residue by Thermal Power Plants) Rules, 2023

Issued by Ministry of Environment, Forest and Climate Change · Control of Pollution Division

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Executive Summary & Key Takeaways

What it means

  • The notification introduces the Environment (Utilisation of Crop residue by Thermal Power Plants) Rules, 2023, to regulate the use of crop residue by thermal power plants.
  • The rules mandate the use of crop residue-based pellets or briquettes in coal-based thermal power plants in the National Capital Region (NCR) and adjoining areas.
  • It also specifies environmental compensation for non-compliance.

Key Changes

  • Mandatory Use of Crop Residue: All coal-based thermal power plants must use a minimum of 5% blend of crop residue-based pellets or briquettes along with coal.
  • Applicability: The rules apply to the National Capital Region (NCR) and adjoining areas as defined in the Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021.
  • Environmental Compensation: Thermal power plants failing to meet the 5% crop residue usage requirement will be subject to environmental compensation.
  • Environmental Compensation Rates for 2024-2025: The environmental compensation rate varies based on the percentage of crop residue used. For usage less than or equal to 5% but more than 4%, the compensation is INR 0.0 per unit of electricity generated. The compensation increases incrementally as the percentage of crop residue used decreases.
  • Environmental Compensation Rates from 2025-2026 Onwards: The environmental compensation rate varies based on the percentage of crop residue used. For usage less than 5% but more than or equal to 4%, the compensation is INR 0.01 per unit of electricity generated. The compensation increases incrementally as the percentage of crop residue used decreases, reaching INR 0.05 for usage less than 1% but more than or equal to 0%.
  • Tariff Determination: The Central Electricity Regulatory Commission (CERC) or State Regulatory Commissions (SERCs) will determine tariffs under the Electricity Act, 2003, considering these rules.
  • Relaxation Provision: The Commission for Air Quality Management can grant relaxations to thermal power plants facing difficulties in complying with the rules due to circumstances beyond their control, after consulting with the Central Electricity Authority and the Central Pollution Control Board.

Impact Analysis

Thermal Power Plants

  • Opportunity for Innovation: Thermal power plants may explore innovative technologies for efficient crop residue utilization to minimize costs and maximize compliance.

Crop Residue Suppliers

  • Price Volatility: Crop residue prices may fluctuate based on demand and supply dynamics.

Environment

  • Potential for Soil Improvement: Reduced crop residue burning can improve soil health and fertility in the long run.

Regulatory Bodies

  • Granting Relaxations: The Commission for Air Quality Management will assess relaxation requests from thermal power plants on a case-by-case basis.

Suggested Action Items

  • Government: Provide incentives for crop residue utilization, promote research and development in related technologies, and raise awareness among stakeholders.

Key Entities Referenced

Environment (Protection) Act, 1986: The principal legislation under which the rules are framed, empowering the Central Government to take measures to protect and improve the environment. Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021: The Act establishing the Commission responsible for air quality management in the NCR and adjoining areas. The commission is tasked with enforcing the new rules and collecting environmental compensation. Central Electricity Regulatory Commission (CERC): The central regulatory body responsible for regulating the electricity sector, including tariff determination. State Regulatory Commissions (SERCs): State-level regulatory bodies responsible for regulating the electricity sector within their respective states, including tariff determination. Electricity Act, 2003: The primary legislation governing the electricity sector in India, which provides the framework for tariff determination and regulation. Central Electricity Authority: An advisory body to the Central Government on technical and policy matters related to the electricity sector. Central Pollution Control Board: A statutory organization responsible for pollution control and monitoring, providing technical expertise on environmental matters.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-12072023-247241 xxxGIDHxxx CG-DL-E-12072023-247241 xxxGIDExxx ऄसाधारण EXTRAORDINARY भाग II—खण् ड 3—ईप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 400] नइ ददल्ली, बुधवार, िुलाइ 12, 2023/अषाढ़ 21, 1945 No. 400] NEW DELHI, WEDNESDAY, JULY 12, 2023/ASHADHA 21, 1945 पयाावरण, वन और िलवाय ु पररवतना मत्रं ालय प्रारूप ऄजधसचू ना नइ ददल्ली, 11 िुलाइ, 2023 सा.का.जन. 499(ऄ).—केंद्रीय सरकार पयाावरण (संरक्षण) ऄजधजनयम, 1986 (1986 का 29) की धारा 3, धारा 6 और धारा 25 द्वारा प्रदत्त िजियों का प्रयोग करते हुए, तापीय जवद्युत संयंत्रों द्वारा फसल-ऄविेषों के ईपयोग को जवजनयजमत करने के जलए जनम्नजलजखत जनयम बनाती ह,ै ऄथाात:् - 1. संजक्षप्त नाम, लाग ूहोना और प्रारंभ. – (1) आन जनयमों का संजक्षप् त नाम पयाावरण (तापीय जवद्युत संयंत्रों द्वारा फसल ऄविेषों का ईपयोग) जनयम, 2023 ह।ै (2) ये राष्ट्रीय रािधानी क्षत्रे और जनकटवती क्षेत्रों म ें वायु क्व ाजलटी प्रबंध अयोग ऄजधजनयम, 2021 (2021 का 29) की धारा 2 की ईपधारा (1) के क्रमिः खंड (च) और खंड (क) म ें यथा पररभाजषत राष्‍टर ीय रािधानी क्षेत्र और जनकटवती क्षेत्रों पर लाग ू होंगे। (3) ये रािपत्र म ें ईनके प्रकािन की तारीख से प्रवृत् त होंगे। 2. फसल ऄविषे का ईपयोग. – जवद्युत ईत्पादन ईपयोजगताओं से संबंजधत सभी कोयला अधाररत तापीय जवद्युत संयंत्रों को कोयले के साथ ऄजनवाया रूप स े फसल ऄविेषों स े बने गुरटका (पले ेट्स) या जिकेटों के न्यूनतम पांच प्रजतित जमश्रण का ऄजनवाय ा रूप से ईपयोग करना होगा। 3. पयाावरणीय प्रजतकर. - जनयम 2 म ें यथा ईपबंजधत फसल ऄविेषों का ईपयोग न करने के जलए, राष्ट्रीय रािधानी क्षत्रे और जनकटवती क्षेत्रों म ें वाय ु क्व ाजलटी प्रबंध अयोग ऄजधजनयम, 2021 (2021 का 29) के ऄधीन गरित राष्ट्रीय 4448 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] रािधानी क्षत्रे और के जनकटवती क्षेत्रों म ें वाय ु क्व ाजलटी प्रबंध अयोग या ईस अयोग द्वारा पर ्ाजधकृत कोइ ऄजधकारी नीचे दी गइ सारणी म ें जवजनर्ददष्ट दर पर वार्षषक अधार पर ऐसे तापीय जवद्युत संयंत्रों को पयाावरणीय प्रजतकर ऄजधरोजपत करेगा और ईसकी वसूली करेगा: वषा 2024-2025 के जलए पयाावरणीय प्रजतकर की दर: वार्षषक अधार पर ईपयोग दकए गए फसल ऄविेष गुरटका (पेलेट्स) या पयाावरणीय प्रजतकर की दर (ईत्पाददत जिकेटों का प्रजतित जवद्युत की प्रजत यूजनट रु.) पााँच प्रजतित स े कम या ईसके बराबर ककतु चार प्रजतित स े ऄजधक 0.0 चार प्रजतित स े कम या ईसके बराबर ककतु तीन प्रजतित स ेऄजधक 0.0 तीन प्रजतित स ेकम या ईसके बराबर ककतु दो प्रजतित स े ऄजधक 0.01 दो प्रजतित स े कम या ईसके बराबर ककतु एक प्रजतित से ऄजधक। 0.02 एक प्रजतित स े कम या ईसके बराबर ककतु िून्य प्रजतित स े ऄजधक 0.03 वषा (2025-2026) से अग ेके जलए पयाावरणीय प्रजतकर की दर वार्षषक अधार पर ईपयोग दकए गए फसल ऄविेष गुरटका (पेलेट्स) या पयाावरणीय प्रजतकर की दर जिकेट का प्रजतित (ईत्पाददत जवद्युत की प्रजत यूजनट रु.) पााँच प्रजतित स े कम ककतु चार प्रजतित स ेऄजधक या ईसके बराबर 0.01 चार प्रजतित स े कम ककतु तीन प्रजतित स ेऄजधक या ईसके बराबर 0.02 तीन प्रजतित स ेकम ककतु दो प्रजतित स ेऄजधक या ईसके बराबर। 0.03 दो प्रजतित स े कम ककतु एक प्रजतित स ेऄजधक या ईसके बराबर 0.04 एक प्रजतित स े कम ककतु िून्य प्रजतित स ेऄजधक या ईसके बराबर 0.05 4. कजतपय मामलों म ें आन जनयमों का लाग ू होना – यथाजस्ट्थजत, केंद्रीय जवद्युत जवजनयामक अयोग या राज्य जवजनयामक अयोग, जनयम 2 के ईपबंधों पर जवचार करने के पश् चात् जवद्युत ऄजधजनयम, 2003 (2003 का 36) के , ऄधीन टैररफ ऄवधाररत करेगा। 5. जिथलीकरण की िजि. - वाय ु क्व ाजलटी प्रबंध अयोग, मामला-दर-मामला के अधार पर, केंद्रीय जवद्युत प्राजधकरण और केंद्रीय प्रदषू ण जनयंत्रण बोडा के परामि ा स,े तापीय जवद्युत संयंत्र का ऐसे तापीय जवद्युत संयंत्रों के जनयंत्रण से परे पररजस्ट्थजतयों स े ईत्पन्न होने वाली दकसी भी करिनाइ के समाधान के जलए जनयम 2 और 3 के ईपबंधों के ऄनुपालन से जिथलीकरण कर सकेगा ह।ै [फा. स.ं क्य-ू 15014/16/2021-सीपीए (पाट-ा 1)] नरेि पाल गंगवार, ऄपर सजचव MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE DRAFT NOTIFICATION New Delhi, the 11th July, 2023 G.S.R. 499(E).—In exercise of the powers conferred by sections 3, 6 and 25 of the Environment (Protection) Act, 1986 (29 of 1986), the Central Government hereby makes the following rules to regulate the utilisation of crop-residue by the thermal power plants, namely:- 1. Short title, application and commencement. – (1) These rules may be called the Environment (Utilisation of Crop residue by Thermal Power Plants) Rules, 2023.[भाग II—खण् ड 3(i)] भारत का रािपत्र : ऄसाधारण 3 (2) They shall apply to the National Capital Region and the Adjoining Areas as defined respectively in clauses (f) and (a) of sub-section (1) of section 2 of the Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021(29 of 2021). (3) They shall come into force on the date of their publication in the Official Gazette. 2. Utilisation of crop residue. - All coal based thermal power plants of power generation utilities shall mandatorily use minimum five per cent blend of pellets or briquettes made of crop residue along with coal. 3. Environmental compensation.- For non-utilisation of crop residue as provided in rule 2, the Commission for Air Quality Management in National Capital Region and Adjoining Areas, constituted under the Commission for Air Quality Management of National Capital Region and Adjoining Areas Act, 2021 (29 of 2021), or any officer authorised by that Commission, shall impose and collect the environmental compensation from such thermal power plants on annual basis at the rates specified in the table given below: (1) Rate of environmental compensation for the year 2024-2025: Percentage of crop residue pellets or briquettes utilized on annual Rate of environmental Compensation (Rs. Per basis unit of electricity generated) Less than or equal to five per cent but more than four per cent 0.0 Less than or equal to four per cent but more than three per cent 0.0 Less than or equal to three per cent but more than two per cent 0.01 Less than or equal to two per cent but more than one per cent. 0.02 Less than or equal to one per cent but more than zero per cent 0.03 (2) Rate of environment compensation for the year (2025-2026) onwards Percentage of crop residue pellets or briquettes utilised on annual Rate of environmental Compensation (Rs. Per basis unit of electricity generated) Less than five per cent but more than or equal to four per cent 0.01 Less than four per cent but more than or equal to three per cent 0.02 Less than three per cent but more than or equal to two per cent. 0.03 Less than two per cent but more than or equal to one per cent 0.04 Less than one per cent but more than or equal to zero per cent 0.05 4. Application of these rules in certain cases- The Central Electricity Regulatory Commission or the State Regulatory Commissions, as the case may be, shall determine tariff under the Electricity Act, 2003 (36 of 2003) after taking into consideration the provisions of rule 2. 5. Power to grant relaxation - The Commission for Air Quality Management may, on case to case basis, grant relaxation to thermal power plants, in consultation with the Central Electricity Authority and the Central Pollution Control Board, for addressing any difficulty arising out of circumstances beyond the control of such thermal power plants in its compliance of the provisions of rule 2 and 3 above. [F. No. Q-15014/16/2021-CPA (part-1)] NARESH PAL GANGWAR, Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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