THE ENERGY CONSERVATION (AMENDMENT) BILL, 2022

About:

• The Bill seeks to amend the Energy Conservation Act, 2001. The Act promotes energy efficiency and conservation. It provides for the regulation of energy consumption by equipment, appliances, buildings, and industries.
• Obligation to use non-fossil sources of energy: The Act empowers the central government to specify energy consumption standards. The Bill adds that the government may require the designated consumers to meet a minimum share of energy consumption from non-fossil sources.
• Carbon trading: The Bill empowers the central government to specify a carbon credit trading scheme. Carbon credit implies a tradeable permit to produce a specified amount of carbon emissions.
• Energy conservation code for buildings: The Bill provides for an ‘energy conservation and sustainable building code’. This new code will provide norms for energy efficiency and conservation, use of renewable energy, and other requirements for green buildings.
• Applicability to residential buildings: Under the Bill, the new energy conservation and sustainable building code will also apply to the office and residential buildings meeting the above criteria.  The Bill also empowers the state governments to lower the load thresholds.
• Standards for vehicles and vessels: Under the Act, the energy consumption standards may be specified for equipment and appliances which consume, generate, transmit, or supply energy.  The Bill expands the scope to include vehicles (as defined under the Motor Vehicles Act, 1988), and vessels (includes ships and boats).