Energy Conservation Bill adds carbon credit certificates, expands building definition

This Bill amends the Energy Conservation Act, 2001 to expand the scope of energy efficiency regulations to include vehicles, vessels, industrial units, and buildings, and to establish a framework for carbon credit trading and the use of non-fossil energy sources.

Who it concerns: The law affects manufacturers and importers of equipment, appliances, vehicles, and vessels; industrial units and establishments; building owners and developers; designated consumers (large energy users); and State Governments and designated agencies responsible for implementing energy conservation measures.

What the bill does

• Expands the definition of 'building' to include structures with a minimum connected load of 100 kW or contract demand of 120 kVA used for commercial, office, or residential purposes.
• Introduces definitions for 'carbon credit certificate,' 'carbon credit trading scheme,' 'energy auditor,' and 'registered entity.'
• Increases the number of members in the National Energy Conservation Council from 20-26 to 31-37, adding ex-officio members from ministries dealing with Environment, Housing, Road Transport, Steel, Civil Aviation, Ports, and Railways.
• Empowers the Bureau to prohibit the manufacture or import of non-compliant vehicles, vessels, and equipment, and to mandate the closure of non-compliant industrial units after specified transition periods (6 months for equipment/vehicles, 2 years for industrial units).
• Mandates the Central Government to specify a carbon credit trading scheme and minimum shares of non-fossil energy consumption for designated consumers.
• Allows the Central Government or authorized agencies to issue carbon credit certificates to registered entities that comply with the trading scheme.
• Prohibits the use of names that resemble the Bureau's name to prevent deception.
• Establishes a State Energy Conservation Fund in each state to finance energy conservation activities and agency expenses.
• Requires State designated agencies to prepare annual budgets for inclusion in the state annual budget.

Also in the document

• The Bill introduces a new section (14AA) specifically for the issuance of carbon credit certificates.
• It creates a new section (13A) prohibiting the registration of companies or firms with names resembling the Bureau's name.
• It amends the principal Act to allow the Central Government to authorize agencies to carry out Bureau functions and to test samples.
• It allows for voluntary purchase of energy saving or carbon credit certificates by persons other than designated consumers.