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Core Purpose

Draft notification proposing the Environment (Utilisation of Crop residue by Thermal Power Plants) Rules, 2023 under the Environment (Protection) Act, 1986, mandating minimum use of crop-residue pellets or briquettes by coal-based thermal power plants in the National Capital Region and Adjoining Areas.

Detailed Summary

By draft notification G.S.R. 499(E) dated 11th July 2023, the Ministry of Environment, Forest and Climate Change, acting under sections 3, 6 and 25 of the Environment (Protection) Act, 1986 (29 of 1986), proposed the Environment (Utilisation of Crop residue by Thermal Power Plants) Rules, 2023, applicable to the National Capital Region and Adjoining Areas as defined under the Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021 (29 of 2021); the draft rules mandate that all coal-based thermal power plants use a minimum 5% blend of pellets or briquettes made of crop residue with coal (rule 2), prescribe environmental compensation rates per unit of electricity generated for non-utilisation, ranging from nil to Rs.0.03 for the year 2024-2025 and from Rs.0.01 to Rs.0.05 from 2025-2026 onwards depending on the percentage shortfall (rule 3), require the Central Electricity Regulatory Commission or State Regulatory Commissions to factor rule 2 into tariff determination under the Electricity Act, 2003 (36 of 2003) (rule 4), and permit the Commission for Air Quality Management to grant case-by-case relaxation in consultation with the Central Electricity Authority and the Central Pollution Control Board (rule 5); the draft notification was signed by Naresh Pal Gangwar, Additional Secretary, under file number F. No. Q-15014/16/2021-CPA (part-1).

Full Text

EXTRAORDINARY PART II —Section 3 —Sub-section ( i) PUBLISHED BY AUTHORITY No. 400] NEW DEL HI, WEDNES DAY, JULY 12, 2023/ASHADHA 21, 194 5 CG-DL-E-12072023-247241 MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE DRAFT NOTIFICATION New Delhi, the 1 1th 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. (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 t he 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 alon g 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 basis Rate of environmental Compensation (Rs. Per 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 basis Rate of environmental Compensation (Rs. Per 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 Publicatio ns, Delhi -110054.

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