The Ministry of Environment, Forest and Climate Change has released the draft Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules 2023. These rules aim to regulate the usage of crop residue by thermal power plants, with a focus on reducing air pollution. This article provides an analysis of the draft rules, including the mandatory utilization of crop residue and the environmental compensation for non-compliance.
Analysis: The draft rules require all coal-based thermal power plants to use a minimum of five percent blend of pellets or briquettes made from crop residue in conjunction with coal. This measure aims to reduce the burning of crop residue, which contributes to air pollution. By mandating the use of crop residue as an alternative fuel source, the draft rules promote sustainable practices in the power generation sector.
Furthermore, the draft rules introduce environmental compensation for thermal power plants that fail to utilize the prescribed amount of crop residue. The Commission for Air Quality Management in the National Capital Region and Adjoining Areas, or an authorized officer, will impose and collect the environmental compensation annually. The rates of environmental compensation vary based on the percentage of crop residue utilization.
The Central Electricity Regulatory Commission or the State Regulatory Commissions will also consider the provisions of these rules when determining tariffs under the Electricity Act, 2003. This ensures that the utilization of crop residue is taken into account in the pricing of electricity.
Additionally, the Commission for Air Quality Management has the authority to grant relaxation to thermal power plants on a case-by-case basis in consultation with relevant authorities, such as the Central Electricity Authority and the Central Pollution Control Board. This provision allows flexibility in addressing difficulties arising from circumstances beyond the control of thermal power plants.
Conclusion: The draft Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules 2023 demonstrate the government’s commitment to reducing air pollution caused by the burning of crop residue. By mandating the utilization of crop residue as an alternative fuel source, these rules promote sustainable practices in the thermal power generation sector. The introduction of environmental compensation provides a mechanism to ensure compliance and encourages thermal power plants to adopt eco-friendly approaches. The draft rules, with their provisions for relaxation and tariff considerations, aim to strike a balance between environmental protection and the operational challenges faced by thermal power plants.
MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE
DRAFT NOTIFICATION
New Delhi, the 11th 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 the 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 along 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.
