The Ministry of Environment, Forest and Climate Change has implemented the Battery Waste Management (BWM) Rules, 2022, effective from 22nd August 2022, with subsequent amendments. These regulations are designed to manage the waste generated by all types of batteries, irrespective of their chemistry, shape, volume, weight, material composition, or use. This includes portable, automotive, industrial, and EV batteries, among others like lead-acid, lithium-ion, nickel-cadmium, and zinc-based batteries.

Guidelines for Environmental Compensation

Under Rule 13(3), the Central Pollution Control Board (CPCB) is tasked with preparing and recommending guidelines for imposing and collecting Environmental Compensation from producers and entities involved in refurbishment and recycling of waste batteries for non-compliance with the rules. In reference of same, CPCB has published guidelines for Environmental Compensation through a notice dated September 10, 2024.

1. The EC guidelines outline the procedures for calculating and imposing environmental compensation on entities that fail to comply with the Battery Waste Management Rules.
2. These Guidelines will be applicable to Producers, Recyclers, Refurbishers, and entities involved in the collection, segregation, and treatment of Waste Batteries.
3. Provisions of Battery Waste Management Rules, 2022, for which EC is to be levied are specified as Rule 4(11), 4(12), 4(15), 8(3), 8(5), 9(3), 9(5), 11(11 and 12), 13(1,4 and 5)

Environmental Compensation Regimes

1. EC is categorized into two regimes:
   1. EC Regime 1 targets non-fulfilment of metal-wise Extended Producer Responsibility (EPR) by Producers. The compensation calculation considers the cost of handling, collection, transportation of waste batteries, and processing to recover metal. This regime is further bifurcated reflecting the cost differences in collection, handling, and processing technologies as under –
      • Lead acid batteries
      • Lithium-ion & other batteries
   2. EC Regime 2 focuses on non-compliances of the rules by Producers, Recyclers, and Refurbishers, setting the registration application fees as per Standard Operating Procedures (SoP) (middle slab) as the compensation parameter.

Details of Provision along with applicable EC regime

#	Rules #	Provision Details	Violator	Violation	Environmental Compensation regime to be levied
1	4(11)	Producer shall file annual returns in Form 3 regarding the Waste Battery collected and recycled or refurbished towards fulfilling obligations under Extended Producer Responsibility with the Central Pollution Control Board and concerned State Pollution Control Board in Form 3 by 30th June of the next financial year. The details of the registered recyclers from whom the Extended Producer Responsibility certificates have been procured shall also be provided.	Producer	Non-submission of Annual Returns	EC Regime 2
2	4(12)	It shall be the responsibility of a Producer to, – (i) adhere to prohibitions and labelling requirements as prescribed in Schedule I;	Producer	Not following labelling requirements	EC Regime 2
3	4(15)	Producer shall not deal with any other entity not having registration mandated under these rules.	Producer	Engaging with entities not registered on the portal	EC Regime 2
4	8(3)	Refurbishers shall furnish quarterly returns in Form 4 regarding the information on quantity of used Battery collected or received from various producers or entities, refurbished quantities, quantity of hazardous and/or other waste including solid waste or plastic waste generated after refurbishment and disposal of such quantity as per extant rules and the quarterly return shall be filed by the end of the month succeeding the end of the quarter.	Recycler / Refurbisher	Non-submission of quarterly returns	EC Regime 2
5	8(5)	Refurbisher shall not deal with any other entity not having registration mandated under these rules.	Recycler / Refurbisher	Engaging with entities not registered on the portal	EC Regime 2
6	9(3)	Recyclers shall furnish the quarterly returns in Form 4 regarding the information on quantity of Waste Battery collected or received from various producers or entity, recycled quantities, compliance of material wise recovery percentage as per recovery targets provided under subrule 4 of rule 10, quantity of hazardous and/or other waste including solid waste or plastic waste generated after recycling and of such quantity as per as per extant rules and the quarterly return shall be filed by the end of the month succeeding the end of the quarter.	Producer, Recycler, and Refurbisher	Non-submission of quarterly returns	EC Regime 2
7	9(5)	Recycler shall not deal with any other entity not having registration mandated under these rules.	Recycler / Refurbisher	Engaging with entities not registered on the portal	EC Regime 2
8	11(11), 11(12)	(11) Central Pollution Control Board shall carry out audit of data, including using information from Goods and Services Tax Network portal, by itself or a designated agency, of the registered entity under these rules. (12) Central Pollution Control Board shall suspend and/or cancel the registration of Producer, and/or impose Environmental Compensation in case of violation of these rules by the registered entity.	Producer, Recycler, and Refurbisher	Noncompliance found in third party audit	EC regime 2
9	13(1)(i)	Environmental Compensation shall also be levied for the following activities based on polluter pays principle, – i. entities carrying out activities without registration as mandated under these rules;	Producer	False reporting / not registered on the Portal / improper handling of battery waste	EC regime 2
10	13(1)(ii)	Environmental Compensation shall also be levied for the following activities based on polluter pays principle, – ii. providing false information / wilful concealment of material facts by the entities registered under these rules;	Recycler	False reporting / not registered on the Portal / improper handling of battery waste	EC regime 2
11	13(1)(iii)	Environmental Compensation shall also be levied for the following activities based on polluter pays principle, – iii. submission of forged/manipulated documents by the entities registered under these rules;	Refurbisher	False reporting / not registered on the Portal / improper handling of battery waste	EC regime 2
12	13(1)(iv)	Environmental Compensation shall also be levied for the following activities based on polluter pays principle, – iv. entities engaged in collection, segregation, and treatment in respect to not following sound handling of Waste Battery.	Entities engaged in collection, segregation	False reporting / not registered on the Portal / improper handling of battery waste	EC regime 2
13	13(4)	Environmental Compensation shall be levied by Central Pollution Control Board on Producer operating with respect to non-fulfilment of their Extended Producer Responsibility targets, responsibilities and obligations set out in Schedule II of these rules.	Producer	Non-fulfilment of Targets	EC regime 1
14	13(5)	Environmental Compensation shall be levied by respective State Pollution Control Board on entities involved in refurbishment or recycling of Waste Battery as well as entities involved in collection, segregation and treatment, operating in their jurisdiction with respect to non-fulfilment of their responsibilities and obligations set out under these rules.	Recycler and Refurbisher	Non-fulfilment of the responsibilities laid out in the Rules	EC regime 2

Payment of Environmental Compensation does not exempt a Producer from the responsibility of fulfilling Extended Producer Responsibility (EPR) obligations as per these rules.

Any unmet EPR obligations for a particular year will be transferred to the next year, for a total duration of three years.

Refund of Environmental Compensation: If a Producer addresses their shortfall in EPR obligations within three years, a portion of the Environmental Compensation will be refunded as follows:

• 75% if settled within one year
• 60% if settled within two years
• 40% if settled within three years

If the EPR obligations are not met within three years, the entire Environmental Compensation amount will be forfeited. This approach shall supports the collection, refurbishment, or recycling of Waste Battery by relevant entities in subsequent years.

EC charges for Delay in EC deposition

Entities that breach the BWM Rules, 2022, are required to pay Environmental Compensation Charges and Financial Penalties. Failure to pay these charges within the specified time frame will lead to an increase in the amount, as detailed below –

1. Interest on Delayed Deposits:
   • Deposits delayed up to one month past the deadline incur a 12% annual interest.
   • Deposits delayed between one and three months will attract a 24% annual interest.
2. Sanctions for Payments Delayed Beyond Three Months:
   • Closure of the offending unit.
   • Seizure of trade documents.
   • Legal action under the Environmental Protection Act (EPA).

For a detailed information please refer copy of Notification annexed.

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