Battery Waste Management in India: New Environmental Compensation Guidelines

On August 22, 2022, the Ministry of Environment, Forest and Climate Change (MoEFCC) notified the Battery Waste Management Rules, 2022, superseding the previous Batteries (Management and Handling) Rules, 2001.
These rules aim to ensure the environmentally sound management of all types of batteries, including electric vehicle (EV) batteries, portable batteries, automotive batteries, and industrial batteries.

Key Provisions of the Rules

Extended Producer Responsibility (EPR): Producers are mandated to collect and recycle or refurbish waste batteries, ensuring that they meet specific collection and recycling targets.
Online Registration: All producers, refurbishers, and recyclers must register on the CPCB's online portal.
Annual Returns: Producers are required to file annual returns detailing the quantity of waste batteries collected and recycled or refurbished.
Labelling Requirements: Batteries must be labelled with specific symbols indicating hazardous materials like lead (Pb), mercury (Hg), or cadmium (Cd).
Prohibition on Landfilling: The disposal of waste batteries in landfills or through incineration is prohibited.

The Environmental Compensation (EC) is a penalty mechanism introduced under the Battery Waste Management Rules, 2022, based on the Polluter Pays Principle.
It aims to hold producers, refurbishers and recyclers accountable for non-compliance with the EPR obligations and other provisions of the rules.

The Central Pollution Control Board (CPCB) is authorized to impose EC on producers for non-fulfillment of their EPR targets.
State Pollution Control Boards (SPCBs) are responsible for levying EC on entities involved in the refurbishment or recycling of waste batteries, as well as those engaged in collection, segregation, and treatment, within their jurisdiction.

EC Regime 1: Imposed on producers for non-fulfilment of metal-wise EPR targets, specifically for lead-acid and lithium-ion batteries.
EC Regime 2: Levied on any entity for non-compliance with the Battery Waste Management Rules, 2022, based on application fees.

Entities operating without registration, providing false information, or engaging in activities not adhering to the prescribed standards will be penalized under EC Regime 2.
Non-fulfilment of EPR obligations by producers will attract EC under Regime 1.

Unfulfilled EPR obligations for a particular year will be carried forward to the next year for a period of three subsequent years.
If the shortfall is addressed within this period, the EC levied will be refunded as follows:
- Within one year: 75% refund.
- Within two years: 60% refund.
- Within three years: 40% refund.
After three years, if the obligation remains unfulfilled, the entire EC amount will be forfeited.

The funds collected under EC will be kept in a separate escrow account by the CPCB or SPCBs.
These funds will be utilized for the collection, refurbishment, or recycling of uncollected and non-recycled or non-refurbished waste batteries.
The modalities for utilization will be recommended by the Committee for Implementation and approved by the Central Government.