The Central Pollution Control Board (“CPCB”) has invited comments on draft Guidelines for imposition of Environment Compensation (“EC”) on Producers, Importers and Bulk Generators for Extended Producer Responsibility (“EPR”) violations related to Used Oil. Comments/suggestions with details, if any, may be communicated at: eprusedoil.cpcb@gov.in by 5th June 2025.
In 2023 the CPCB had rolled out the Hazardous and Other Wastes (Management and Transboundary Movement) Second Amendment Rules, 2023 (“Amendment 2023”) by virtue of which the bulk generators are required to ensure that any used oil generated is handed over only to the registered recyclers or producer or collection agents and to set up collection points to facilitate collection agents for collection and transportation of used oil from premises. Amongst the changes, the CPCB was mandated to lay down guidelines for imposition and collection of environmental compensation on the producers in case of non-fulfilment of obligations and transaction or use of false EPR certificates.
Accordingly, CPCB has prepared the draft guidelines in accordance with the provisions laid down under the Amendment 2023. The guidelines outline the details on violations and methodology for calculating EC on the entities for various violations. This EC will facilitate in implementation of EPR framework by the Producers/Used Oil Importers/Recyclers/Collection Agents.
Applicability:
The Guidelines will be applicable to the entities mentioned below:
- Producers– any person or entity, irrespective of the selling technique used such as dealer, retailer, e-retailer, who, –
(i) manufactures and offers to sell base oil or lubrication oil domestically under its own brand; or
(ii) offers to sell lubrication oil domestically under its own brand, using the base oil manufactured by other manufacturers or suppliers; or
(iii) offers to sell imported base oil or lubrication oil domestically.
- Recyclers– any person or entity engaged in the process of recycling of used oil.
- Used Oil Importers– any person or entity who imports used oil.
- Collection Agents– any person or entity who collects used oil and supplies it to the recycler.
- Bulk generator– it includes any entity like automobile industry or railways or defence establishments or a transport company or industrial units or power transmission company or hotels or restaurants and other such entity which is generating more than 100 metric tonnes of used oil per annum.
Key Proposals includes:
- List of violations and regulatory actions as proposed in Table 1 which provides a comprehensive list of violations and its actions.
- Principles for assessment of EC cost to be levied on the violators, it classifies EC into two broad regimes.
- Determination of EC under the two regimes, it provides the methodology for calculating EC.
- List of type of EC to be levied for the violations specified in Table 2.
- Charges for delay in depositing EC within the stipulated timeframe along with revised EC and financial penalty to be levied on the violators.
- The funds collected from EC will be utilized by CPCB for various purposes.
- EC charges to be reviewed and revised by CPCB from time to time.
A copy of the Draft Guidelines is linked below for ease of reference.
Source: Central Pollution Control Board
