## Report on the Energy Conservation Amendment Act, 2022
**1. Executive Summary:**
This report analyzes the Energy Conservation Amendment Act, 2022, based solely on the provided government policy text. The amendment primarily focuses on promoting renewable energy, establishing a carbon market, expanding the scope of energy conservation building codes, increasing the Bureau of Energy Efficiency's (BEE) governing council members, and empowering State Electricity Regulatory Commissions. Key changes include defining terms like "carbon credit certificate" and "registered entity," mandating minimum non-fossil energy consumption, expanding the definition of "building", and modifying penalty provisions. The amendment aims to accelerate decarbonization of the Indian economy and achieve sustainable development goals.
**2. Introduction:**
The purpose of this report is to provide an informative overview of the Energy Conservation Amendment Act, 2022, based exclusively on the text of the Bill No. 177 of 2022 as introduced in Lok Sabha on August 3rd, 2022. This analysis will focus on the specific changes introduced by the amendment and their potential implications.
**3. Policy Overview:**
This document details amendments to the original Energy Conservation Act, 2001. The core objectives of the amendment, as inferred from the provided text, are:
* To promote renewable energy sources and facilitate the development of a domestic carbon market.
* To mandate the use of non-fossil sources of energy.
* To enhance the scope of energy conservation and building codes.
* To incentivize actions for emission reduction.
**4. Background and Rationale:**
This amendment to the Energy Conservation Act, 2001 appears to be driven by a need to address evolving energy market dynamics, specifically in the context of energy transition, and the promotion of renewable energy and the National Green Hydrogen Mission. The text suggests a desire to accelerate the decarbonization of the Indian economy and achieve sustainable development goals in line with the Paris Agreement. The amendment responds to the perceived need for legal provisions that mandate the consumption of non-fossil energy sources and establish a carbon market.
**5. Key Provisions / Changes:**
The Energy Conservation Amendment Act, 2022 introduces significant changes to the Energy Conservation Act, 2001. Key changes based on the provided text are:
* **Definition of "Building" (Amendment to Section 2(c)):** The original definition is replaced. The new definition specifies that a "building" means a structure constructed after energy conservation rules are notified, has a minimum connected load of 100kW or a contract demand of 120 kVA, and is used for commercial, office, or residential purposes. The State Government is empowered to specify lower load or demand limits. *Effect:* Broadens the scope of buildings subject to energy conservation regulations, especially including residential buildings which now fall under the Act.
* **Introduction of Carbon Market Mechanisms (New Clauses to Section 2):** The amendment inserts definitions for "carbon credit certificate" (2(da)) and "carbon credit trading scheme" (2(db)). *Effect:* Establishes a legal basis for carbon trading within the framework of the Act.
* **Definition of "Energy" (Amendment to Section 2(h)):** Redefines "energy" to explicitly include energy derived from fossil fuels, non-fossil sources, or renewable sources. *Effect:* Broadens the scope of what constitutes "energy" under the Act, explicitly incorporating renewable sources.
* **Definition of "Energy Auditor" (Amendment to Section 2):** Introduces definition of "energy auditor" which means any individual possessing the qualifications prescribed under clause m of section 14. *Effect:* Explicit inclusion of energy auditor.
* **Governing Council Expansion (Amendment to Section 4):** Increases the number of members in the Governing Council of the Bureau of Energy Efficiency by adding Secretaries from various key ministries (Environment, Housing, Road Transport, Steel, Civil Aviation, Ports, and Railways) and the Director-General of the National Productivity Council as ex-officio members. *Effect:* Broadens the expertise and representation within the BEE's governing body.
* **Standards Setting (Amendment to Section 14):** Expands the Central Government's power to prescribe standards to include vehicles and vessels. *Effect:* Extends the energy consumption standards and regulations to vehicles and vessels.
* **Carbon Credit Trading Scheme (Amendment to Section 14):** Empowers the Central Government to specify the carbon credit trading scheme. *Effect:* Provides a legal framework for the carbon credit trading scheme.
* **Energy Saving and Carbon Credit Certificates(Amendment to Section 14A and Insertion of Section 14AA):** Empowers the Central Government or any agency authorized by it to issue carbon credit certificate. *Effect:* Facilitates the carbon credit trading scheme.
* **State Energy Conservation Fund (Substitution of Section 16):** Mandates the establishment of a State Energy Conservation Fund by each State Government. *Effect:* Provides dedicated funding for energy conservation initiatives at the state level.
* **Penalty Provisions (Substitution of Section 26):** Modifies the penalty provisions for non-compliance with the Act's requirements. *Effect:* Potentially increases the severity of penalties for certain violations, including those related to industrial units and vehicles, aiming to improve compliance.
**6. Target Audience and Stakeholders:**
Based on the provided text, the following are directly affected by this amendment:
* **Building Owners/Developers:** Due to the expanded definition of "building" and the incorporation of energy conservation and sustainable building codes.
* **Industrial Units:** Subject to energy consumption standards and potential penalties for non-compliance.
* **Vehicle and Vessel Manufacturers:** Must comply with energy consumption standards.
* **Designated Consumers:** Required to meet minimum non-fossil energy consumption requirements.
* **Energy Auditors:** Their qualifications are now explicitly recognized within the Act.
* **State Governments:** Responsible for establishing State Energy Conservation Funds and implementing energy conservation measures.
* **Bureau of Energy Efficiency (BEE):** The BEE's responsibilities and powers are expanded.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Government, the Bureau of Energy Efficiency (BEE), State Governments, and State Electricity Regulatory Commissions (SERCs) are identified as key players in the implementation of the amended Act.
* **Timelines/Procedures:** The text mentions a transition period for industrial units to comply with new norms. Specifically, industrial units have two years from the date of notification of norms to comply.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes are:
* Increased use of renewable energy sources and reduced reliance on fossil fuels.
* Establishment of a functional carbon market to incentivize emissions reduction.
* Improved energy efficiency in buildings, industries, and transportation.
* Greater investment in clean energy and energy efficiency technologies.
* Achievement of sustainable development goals.
**9. Conclusion:**
The Energy Conservation Amendment Act, 2022 represents a significant step towards promoting energy efficiency and decarbonizing the Indian economy. The amendments, including the establishment of a carbon market and the expansion of the scope of energy conservation regulations, are intended to drive investment in clean energy and achieve India's climate goals. The success of the amendment will depend on effective implementation by the relevant government agencies and stakeholders.
Key Entities Referenced
Lok Sabha: The lower house of the Parliament of India, where the Bill was introduced.
Energy Conservation Act, 2001: The principal Act being amended by this Bill. It concerns the efficient use of energy and its conservation.
Energy Conservation Amendment Act, 2022: The short title of the Bill that seeks to amend the Energy Conservation Act, 2001.
Central Government: The government body empowered to appoint the date of enforcement of the amended Act and responsible for various notifications and authorisations under the Act.
Official Gazette: The official publication where the Central Government will announce the commencement date of the Act.
State Government: The government body responsible for specifying connected load or contract demand, implementing energy conservation building codes, and creating a State Energy Conservation Fund.
carbon credit certificate: A certificate issued by the Central Government or an authorised agency for compliance with the carbon credit trading scheme.
carbon credit trading scheme: A scheme for reduction of carbon emissions notified by the Central Government.
Motor Vehicles Act, 1988: Act that defines the meaning of 'vehicle' as referenced in the Energy Conservation Amendment Act, 2022.
Ministry of Environment, Forest and Climate Change: A Ministry of the Central Government of India.
Ministry of Housing and Urban Affairs: A Ministry of the Central Government of India.
Ministry of Road Transport and Highways: A Ministry of the Central Government of India.
Ministry of Steel: A Ministry of the Central Government of India.
Ministry of Civil Aviation: A Ministry of the Central Government of India.
Ministry of Ports, Shipping and Waterways: A Ministry of the Central Government of India.
Ministry of Railways: A Ministry of the Central Government of India.
Railway Board: The apex body of the Indian Railways, with a Member in charge of Energy.
National Productivity Council: An organization under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
Department for Promotion of Industry and Internal Trade: A department under the Ministry of Commerce and Industry.
Ministry of Commerce and Industry: A Ministry of the Central Government of India.
Bureau of Energy Efficiency: The statutory body established to implement the Energy Conservation Act, 2001.
Energy Conservation Building Code: Code which provides norms and standards for energy efficiency and its conservation, use of renewable energy and other green building requirements for a building.
State Energy Conservation Fund: A fund established by the State Government for promotion of efficient use of energy and its conservation within the State.
State Commission: An entity that may make regulations for discharging its functions under this Act.
India: Country presenting Panchamrit as five nectar elements in COP26 Conference of Parties 26 in Glasgow 2021.
Glasgow: Location where COP26 Conference of Parties 26 in 2021 was held.
Paris Agreement: International agreement to combat climate change.
State Electricity Regulatory Commissions: Empowered to make regulations for smooth discharge of its functions.
Government of India: Mentioned in financial memorandum
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LOK SABHA
————
The following Bill was introduced in Lok Sabha on 3rd August, 2022:—
BILL NO. 177 OF 2022
A Bill further to amend the Energy Conservation Act, 2001.
BE it enacted by Parliament in the Seventy-third Year of the Republic of India as
follows:––
1. (1) This Act may be called the Energy Conservation (Amendment) Act, 2022. Short title and
commencement.
(2) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint.2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
Amendment 2. In section 2 of the Energy Conservation Act, 2001 (hereinafter referred to as the 52 of 2001.
of section 2.
principal Act),––
(i) for clause (c), the following clause shall be substituted, namely:––
‘(c) “building” means any structure or erection or part of structure or
erection––
(i) constructed after the rules relating to energy conservation and
sustainable building codes have been notified by the Central Government
under clause (p) of section 14 and by the State Government under
clause (a) of section 15;
(ii) which has a minimum connected load of 100 Kilowatt (kW) or
contract demand of 120 Kilovolt Ampere (kVA); and
(iii) which is used or intended to be used for commercial purpose or
as an office building or for residential purpose:
Provided that the State Government may specify a lower connected load
or contract demand than the load or demand specified above;’;
(ii) after clause (d), the following clauses shall be inserted, namely:––
‘(da) “carbon credit certificate” means the certificate issued by the Central
Government or any agency authorised by it under section 14AA;
(db) “carbon credit trading scheme” means the scheme for reduction
of carbon emissions notified by the Central Government under clause (w) of
section 14;’;
(iii) for clause (h), the following clause shall be substituted, namely:––
‘(h) “energy” means any form of energy derived from fossil fuels or
non-fossil sources or renewable sources;’;
(iv) after clause (i), the following clause shall be inserted, namely:––
‘(ia) “energy auditor” means any individual possessing the qualifications
prescribed under clause (m) of section 14;’;
(v) for clause (j), the following clause shall be substituted, namely:––
‘(j) “energy conservation and sustainable building code” means the code
which provides norms and standards for energy efficiency and its conservation,
use of renewable energy and other green building requirements for a building;’;
(vi) after clause (q), the following clause shall be inserted, namely:––
‘(qa) “registered entity” means any entity, including designated
consumers, registered for carbon credit trading scheme specified under
clause (w) of section 14;’;
(vii) after clause (t), the following clauses shall be inserted, namely:—
‘(ta) “vehicle” shall have the same meaning as assigned to it in clause (28)
of section 2 of the Motor Vehicles Act, 1988; 59 of 1988.
(tb) “vessel” includes every description of water craft used or capable of
being used in inland waters or in coastal waters, including any ship, boat,
sailing vessel, tug, barge or other description of vessel including
non-displacement craft, amphibious craft, wing-in-ground craft, ferry,
roll-on-roll-off vessel, container vessel, tanker vessel, gas carrier or floatingSEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3
unit or dumb vessel used for transportation, storage or accommodation within
or through inland waters and coastal waters;’.
3. In section 4 of the principal Act,–– Amendment
of section 4.
(a) in sub-section (1), for the words “twenty, but not exceeding twenty-six”, the
words “thirty-one, but not exceeding thirty-seven” shall be substituted;
(b) in sub-section (2),––
(i) after clause (g), the following clauses shall be inserted, namely:—
“(ga) the Secretary to the Government of India, in charge of the
Ministry or Department of the Central Government dealing with the
Environment, Forest and Climate Change—ex officio member;
(gb) the Secretary to the Government of India, in charge of the
Ministry or Department of the Central Government dealing with the
Housing and Urban Affairs—ex officio member;
(gc) the Secretary to the Government of India, in charge of the
Ministry or Department of the Central Government dealing with the Road
Transport and Highways—ex officio member;
(gd) the Secretary to the Government of India, in charge of the
Ministry or Department of the Central Government dealing with the
Steel— ex officio member;
(ge) the Secretary to the Government of India, in charge of the
Ministry or Department of the Central Government dealing with the Civil
Aviation—ex officio member;
(gf) the Secretary to the Government of India, in charge of the
Ministry or Department of the Central Government dealing with the Ports,
Shipping and Waterways—ex officio member;
(gg) Member of the Railway Board (in charge of Energy), Ministry
of Railways—ex officio member;”;
(ii) after clause (m), the following clause shall be inserted, namely:—
“(ma) Director-General of the National Productivity Council,
Department for Promotion of Industry and Internal Trade, Ministry of
Commerce and Industry—ex officio member;”;
(iii) for clause (o), the following clause shall be substituted, namely:––
“(o) one official each from the energy or power department of the
five States from the five power regions, not below the rank of Principal
Secretary to the State Government, to be appointed by the Central
Government—member;”;
(iv) for clause (p), the following clause shall be substituted, namely:––
“(p) such number of persons, not exceeding seven, as may be
prescribed, to be appointed by the Central Government as members, from
amongst persons who, in the opinion of the Central Government, are
experts or capable of representing industry, equipment and appliance
manufacturers, architects, institutes and consumers—members;”.
4. In section 13 of the principal Act, in sub-section (2),–– Amendment of
section 13.
(i) in clause (a), after the word and figures "section 14", the words “and other
standards required to be prescribed under other provisions of this Act” shall be
inserted;4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(ii) in clause (d), for the words “energy conservation building codes”, the
words “energy conservation and sustainable building codes” shall be substituted;
(iii) in clause (h), after the word “promote”, the words “or undertake” shall be
inserted;
(iv) after clause (t), the following clauses shall be inserted, namely:––
“(ta) collaborate with any international institution or organisation or to
obtain membership of bodies having similar objectives as that of the Bureau, in
consultation with the Central Government;
(tb) authorise any agency in the country or outside the country to carry
out any of the functions of the Bureau, for such purposes, and subject to such
terms and conditions, as may be specified by regulations;
(tc) undertake, or authorise any other body which meets with such
technical qualifications, as may be specified by regulations, to test samples for
purposes other than those specified in section 14;
(td) empanel technical experts to promote energy efficiency and carbon
credit trading activities undertaken to meet the objectives of the Act;
(te) recommend to the Central Government on the requirements to be
specified in the carbon credit trading scheme to be notified under clause (w) of
section 14;
(tf) recommend minimum share of consumption of non-fossil sources by
designated consumers as energy or feedstock;”.
Insertion of 5. After section 13 of the principal Act, the following section shall be inserted,
new namely:—
section13A.
Prohibition of “13A. (1) No person shall, without previous permission of the Bureau, use any
use of name which so nearly resembles the name of the Bureau as to deceive or likely to
deceptive deceive the public.
name, etc.
(2) Notwithstanding anything contained in any other law for the time being in
force, no registering authority shall register any company, firm or other body of
persons which bears any name or mark resembling the name of the Bureau.”.
Amendment 6. In section 14 of the principal Act,––
of section 14.
(i) in clause (a), for the word “appliance”, the words “appliance, vehicle, vessel,
industrial unit, building or establishment” shall be substituted;
(ii) in clause (b), after the words “class of equipment or appliances,”, the words
“or vehicle, vessel, industrial unit, building or establishment” shall be inserted;
(iii) for clause (c), the following clause shall be substituted, namely:––
“(c) prohibit manufacture or import of any equipment or appliance or
vehicle or vessel specified under clause (b), unless it conforms to energy
consumption standards specified under clause (a):
Provided that an industrial unit specified under clause (b) shall close its
operations unless it conforms to the norms for processes or energy consumption
standards specified under clause (a):
Provided further that from the date of notification of norms for processes
and energy consumption standards under clause (a), no notification prohibiting
such manufacture or import shall be issued––
(i) within a period of six months in the case of equipment or appliance
or vehicle or vessel; and
(ii) within a period of two years for closure of industrial unit:SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 5
Provided also that the Central Government may, having regard to the
market share and the technological development having impact on equipment
or appliance or vehicle or vessel, and for reasons to be recorded in writing,
extend the said period of six months referred to above, by a further period not
exceeding six months;”;
(iv) in clause (f), after the words “Energy Intensive Industries”, the words “and
other establishments” shall be inserted;
(v) in clause (h), after the words “Energy Intensive Industries”, the words “and
other establishments” shall be inserted;
(vi) in clause (l), for the words “energy manager”, the words “energy auditor or
energy manager” shall be substituted;
(vii) in clauses (p), (q) and (r), for the words “energy conservation building
codes”, the words “energy conservation and sustainable building codes” shall be
substituted;
(viii) after clause (v), the following clauses shall be inserted, namely:––
"(w) specify the carbon credit trading scheme;
(x) specify minimum share of consumption of non-fossil sources by
designated consumers as energy or feedstock, provided different share of
consumption may be specified for different types of non-fossil sources for
different designated consumers:”.
7. In section 14A of the principal Act,–– Amendment of
section 14A.
(a) for the marginal heading, the following shall be substituted, namely:––
“Issuance of energy savings certificate.”;
(b) in sub-section (1), after the words “Central Government”, the words “or
any agency authorised by it” shall be inserted;
(c) in sub-section (2), the following proviso shall be inserted, namely:––
“Provided that any other person may also purchase energy saving
certificate or carbon credit certificate on voluntary basis.”.
8. After section 14A of the principal Act, the following section shall be inserted, Insertion of
namely:–– new section
14AA.
“14AA. (1) The Central Government, or any agency authorised by it may issue Issuance of
carbon credit certificate to the registered entity which complies with the requirements carbon credit
certificate.
of the carbon credit trading scheme.
(2) The registered entity shall be entitled to purchase or sell the carbon credit
certificate in accordance with carbon credit trading scheme specified under clause (w)
of section 14.”.
9. In section 15 of the principal Act,–– Amendment
of section 15.
(i) in clause (a),––
(I) for the words “energy conservation building codes”, at both the places
where they occur, the words “energy conservation and sustainable building
codes” shall be substituted;
(II) after the words “energy in the buildings”, the words “and implement
the same through building bye-laws of the State” shall be substituted;6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(ii) in clause (b), for the words “energy conservation building codes”, the
words “energy conservation and sustainable building codes” shall be substituted;
(iii) after clause (h), the following clause shall be inserted, namely:––
“(ha) levy such fee as may be prescribed for the services rendered by the
designated agency to promote efficient use of energy and its conservation
under this Act;”.
Insertion of 10. After section 15 of the principal Act, the following section shall be inserted,
new section namely:—
15A.
Budget of “15A.The designated agency shall prepare, in such form and at such time in
designated each financial year as may be prescribed, its budget for the next financial year, showing
agency.
the estimated receipts and expenditure and forward the same to the State Government,
which shall include the same in the annual budget.”.
Substitution of 11. For section 16 of the principal Act, the following section shall be substituted,
new section namely:––
for section 16.
Establishment “16. (1) There shall be constituted a Fund for the purposes of promotion of
of Fund by efficient use of energy and its conservation within the State to be called the State
State
Energy Conservation Fund and there shall be credited thereto––
Government.
(a) all grants and loans that may be made by the State Government or the
Central Government or any other organisation or individual for the purposes of
this Act;
(b) all fees received by the State Government or the designated agency
under this Act;
(c) all sums received by the State Government or the designated agency
from such other sources as may be decided by the State Government.
(2) The Fund shall be utilised for meeting the expenses––
(a) of the designated agency in the discharge of its functions;
(b) for the objects and purposes authorised by or under this Act.
(3) The Fund created under sub-section (1) shall be administered by such
person or authority and in such manner as may be prescribed by the rules made by the
State Government.”.
Substitution of 12. For section 26 of the principal Act, the following section shall be substituted,
new section namely:––
for section 26.
Penalty. “26. (1) If any person fails to comply with the provisions of clause (h) or
clause (i) or clause (k) or clause (l) of section 14 or clause (c) or clause (h) of section 15,
he shall be liable to a penalty which shall not exceed ten lakh rupees:
Provided that in the case of continuing failures, the person shall be liable to an
additional penalty which may extend to ten thousand rupees for every day during
which such failures continue.
(2) Notwithstanding anything contained in this Act or any other Act for the
time being in force, if any person fails to comply with the provisions of clauses (c) and
(d) of section 14, he shall in addition to the penalty of ten lakh rupees, be also liable
to pay additional penalty which shall not exceed five thousand rupees per appliance
or equipment in relation to which the non-compliance has occurred, but shall not be
lower than two thousand rupees:SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 7
Provided that where such non-compliance relates to any industrial unit or vessel,
he shall also be liable to an additional penalty which shall not exceed twice the price
of every metric ton of oil equivalent consumed in excess of the prescribed norms:
Provided further that if the manufacturer of a vehicle fails to comply with the
fuel consumption norms, he shall also be liable to pay an additional penalty per unit
of vehicles sold in the corresponding year, as follows, namely:––
(i) twenty-five thousand rupees per vehicle for non-compliance of norms
up to 0.2 litres per 100 kms;
(ii) fifty thousand rupees per vehicle for non-compliance of norms above
0.2 litres per 100 kms.
(3) If any person fails to comply with the directions issued under clauses (n)
and (x) of section 14, he shall be liable to a penalty which shall not exceed ten lakh
rupees for each such failure:
Provided that he shall also be liable to an additional penalty which shall not
exceed twice the price of every metric ton of oil equivalent prescribed under this Act,
which is in excess of the prescribed norms.
(4) If a person fails to comply with the provisions of sub-section (1) of
section 13A or fails to provide any information under section 52, he shall be liable to a
penalty which may extend to fifty thousand rupees on first such non-compliance or failure:
Provided that for every subsequent non-compliance or failure, he shall be liable
to pay an additional penalty which shall not exceed ten thousand rupees per day of
such non-compliance or failure.
(5) Any amount payable under this section, if not paid, may be recovered as if
it were an arrear of land revenue.”.
13. After section 27 of the principal Act, the following section shall be inserted, Insertion of
namely:–– new section
27A.
“27A. (1) The State Commission may, by notification, make regulations for Power of State
discharging its functions under this Act. Commission
to make
(2) In particular, and without prejudice to the generality of the foregoing power, regulations.
such regulations may provide for—
(a) the manner of making application before the State Commission and
the fee payable;
(b) any other matter which is to be, or may be, provided by regulations by
the State Commission for the purposes of its function:
Provided that every regulation made by the State Commission under this section
shall be laid, as soon as may be after it is made, before each House of the State
Legislature where it consists of two Houses, or where such Legislature consists of
one House, before that House.”.
14. In section 28 of the principal Act, after clause (b), the following clause shall be Amendment of
inserted, namely:–– section 28.
“(c) the loss caused to a consumer and amount of compensation thereof.”.
15. In section 52 of the principal Act, for the words, brackets, letter and figures Amendment of
“specified under clause (b) of section 14 shall supply the Bureau with such information, and section 52.
with such samples”, the words “or any other person or entity covered under this Act shall
furnish to the Bureau such information, documents or records relating to energy
consumption, and such samples” shall be substituted.8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
Amendment of 16. In section 56 of the principal Act, in sub-section (2), in clause (l), for the words
section 56. “energy conservation building codes”, the words “energy conservation and sustainable
building codes” shall be substituted.
Amendment 17. In section 57 of the principal Act, in sub-section (2),––
of section 57.
(i) in clause (a), for the words “energy conservation building codes”, the words
“energy conservation and sustainable building codes” shall be substituted;
(ii) after clause (b), the following clauses shall be inserted, namely:––
“(ba) the fee to be levied for the services rendered by the designated
agency for promoting efficient use of energy and its conservation under
clause (ha) of section 15;
(bb) the form in which and the time at which, the budget of the designated
agency shall be prepared under section 15A;”;
(iii) in clause (c), for the word, brackets and figure “section (4)”, the word,
brackets and figure “section (3)” shall be substituted.
Amendment 18. In section 58 of the principal Act, in sub-section (2), after clause (h), the following
of section 58. clauses shall be inserted, namely:—
“(ha) the purposes, and the terms and conditions subject to which, an agency
may be authorised to carry out the functions of the Bureau under clause (tb) of
sub-section (2) of section 13;
(hb)the technical qualification to test samples under clause (tc) of sub-section (2)
of section 13;”.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 9
STATEMENT OF OBJECTS AND REASONS
The Energy Conservation Act, 2001 was enacted to provide for efficient use of energy
and its conservation and for matters connected therewith or incidental thereto. The said
Act provides for establishment and incorporation of the Bureau of Energy Efficiency and
confers certain powers upon the Central Government, the State Government and the Bureau
of Energy Efficiency to enforce measures for efficient use of energy and its conservation.
2. The Energy Conservation Act, 2001 was amended in the year 2010 to address
various new factors which emerged with the development of the energy market over a
period of time and to provide for more efficient and effective use of energy and its
conservation.
3. With the passage of time, and in the context of energy transition with special focus
on promotion of new and renewable energy and National Green Hydrogen Mission, a need
has arisen to further amend the said Act to—(i) facilitate the achievement of “Panchamrit”—
as five nectar elements presented by India in COP-26 (Conference of Parties -26) in Glasgow
2021; (ii) promote renewable energy and development of domestic Carbon market to battle
climate change; (iii) introduce new concepts such as Carbon trading and mandate use of
non-fossil sources to ensure faster decarbonization of Indian economy and help in achieving
sustainable development goals in line with the Paris Agreement and various other actions
related to climate change.
4. It is considered necessary to have legal provisions to prescribe minimum
consumption of non-fossil energy sources as energy or feedstock by the designated
consumers. This will help in reduction of fossil fuel-based energy consumption and resultant
carbon emissions to the atmosphere. Similarly, a need is also felt to provide legal framework
for a carbon market with the objective of incentivizing actions for emission reduction leading
to increased investments in clean energy and energy efficiency areas, by the private sectors.
5. The Energy Conservation (Amendment) Bill, 2022, inter alia, seeks to—
(a) mandate use of non-fossil sources, including Green Hydrogen, Green
Ammonia, Biomass and Ethanol for energy and feedstock;
(b) establish Carbon Markets;
(c) bring large residential buildings within the fold of Energy Conservation
regime;
(d) enhance the scope of Energy Conservation Building Code;
(e) amend penalty provisions;
(f) increase members in the Governing Council of Bureau of Energy Efficiency;
(g) empower the State Electricity Regulatory Commissions to make regulations
for smooth discharge of its functions.
6. The Bill seeks to achieve the aforesaid objectives.
NEW DELHI; R.K. SINGH.
The 29th July, 2022.10 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 13 of the Bill seeks to insert a new section 27A in the Energy Conservation
Act, 2001 to empower the State Commission to make regulations to provide for (a) the
manner of making application before the State Commission and the fee payable; (b) any
other matter which may be provided by regulations by the State Commission.
Clause 17 of the Bill seeks to amend sub-section (2) of section 57 of the said Act to
empower the State Government to make rules to provide for the fee to be levied for the
services rendered by the designated agency for promoting efficient use of energy and its
conservation and the form in which and the time at which, the budget of the designated
agency shall be prepared.
Clause 18 of the Bill seeks to amend sub-section (2) of section 58 of the said Act to
empower the Bureau to make regulations, with the previous approval of the Central
Government and subject to the condition of previous publication, to provide for the purposes,
and the terms and conditions subject to which, an agency may be authorised to carry out
the functions of the Bureau and the technical qualification to test samples.
The matters in respect of which rules or regulations may be made are matters of
procedure and administrative detail and it is not practicable to provide for them in the Bill
itself. The delegation of legislative power is, therefore, of a normal character.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 11
FINANCIAL MEMORANDUM
There is no additional financial implication for the Government of India and this has
been approved by the Cabinet.
————
UTPAL KUMAR SINGH
Secretary General
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATION, DELHI–110054.
MGIPMRND—820GI(S3)—19.08.2022.