THE ENERGY CONSERVATION (AMENDMENT) ACT, 2022

NO. 19 OF 2022

[19th December, 2022.]

An Act 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.

(2) It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint.

Short title and

commencement.

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EXTRAORDINARY

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PART II — Section 1

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PUBLISHED BY AUTHORITY

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NEW DELHI, TUESDAY, DECEMBER 20, 2022/AGRAHAYANA 29, 1944 (SAKA)

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Separate paging is given to this Part in order that it may be filed as a separate compilation.

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REGISTERED NO. DL—(N)04/0007/2003—22

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 20th December, 2022/Agrahayana 29, 1944 (Saka)

The following Act of Parliament received the assent of the President on the

19th December, 2022 and is hereby published for general information:—

सी.जी.-डी.एल.-अ.-20122022-241246

CG-DL-E-20122022-241246

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

2. In section 2 of the Energy Conservation Act, 2001 (hereinafter referred to as the

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;

(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 floating

Amendment

of section 2.

52 of 2001.

59 of 1988.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

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,––

(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),––

(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;

Amendment

of section 4.

Amendment of

section 13.

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;”.

5. After section 13 of the principal Act, the following section shall be inserted,

namely:—

“13A. (1) No person shall, without previous permission of the Bureau, use any

name which so nearly resembles the name of the Bureau as to deceive or likely to

deceive the public.

(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.”.

6. In section 14 of the principal Act,––

(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:

Insertion of

new

section13A.

Prohibition of

use of

deceptive

name, etc.

Amendment

of section 14.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

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,––

(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;

“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,

namely:––

“14AA. (1) The Central Government, or any agency authorised by it may issue

carbon credit certificate to the registered entity which complies with the requirements

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,––

(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;

Amendment of

section 14A.

Insertion of

new section

14AA.

Issuance of

carbon credit

certificate.

Amendment

of section 15.

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;”.

10. After section 15 of the principal Act, the following section shall be inserted,

namely:—

“15A.The designated agency shall prepare, in such form and at such time in

each financial year as may be prescribed, its budget for the next financial year, showing

the estimated receipts and expenditure and forward the same to the State Government,

which shall include the same in the annual budget.”.

11. For section 16 of the principal Act, the following section shall be substituted,

namely:––

“16. (1) There shall be constituted a Fund for the purposes of promotion of

efficient use of energy and its conservation within the State to be called the State

Energy Conservation Fund and there shall be credited thereto––

(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;

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.”.

12. For section 26 of the principal Act, the following section shall be substituted,

namely:––

“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:

Insertion of

new section

15A.

Budget of

designated

agency.

Substitution of

new section

for section 16.

Establishment

of Fund by

State

Government.

Substitution of

new section

for section 26.

Penalty.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

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,

namely:––

“27A. (1) The State Commission may, by notification, make regulations for

discharging its functions under this Act.

(2) In particular, and without prejudice to the generality of the foregoing power,

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

inserted, namely:––

“(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

“specified under clause (b) of section 14 shall supply the Bureau with such information, and

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.

Insertion of

new section

27A.

Power of State

Commission

to make

regulations.

Amendment of

section 28.

Amendment of

section 52.

16. In section 56 of the principal Act, in sub-section (2), in clause (l), for the words

“energy conservation building codes”, the words “energy conservation and sustainable

building codes” shall be substituted.

17. In section 57 of the principal Act, in sub-section (2),––

(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.

18. In section 58 of the principal Act, in sub-section (2), after clause (h), the following

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;”.

————

DR. REETA VASISHTA,

Secretary to the Govt. of India.

Amendment of

section 56.

Amendment

of section 57.

Amendment

of section 58.

MGIPMRND—2017GI(S3)—20-12-2022.

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—SEC. 1]

JAGANATHA

N ANANTHA

KUMAR

Digitally signed by

JAGANATHAN

ANANTHA KUMAR

Date: 2022.12.20

22:18:46 +05'30'