National Strategy Energy Efficiency AU

8/13/2019 National Strategy Energy Efficiency AU

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NATIONAL STRATEGY ON ENERGY EFFICIENCY

Background

In October 2008, the Council of Australian Governments (COAG) agreed to develop a NationalStrategy for Energy Efficiency (the Strategy) to accelerate energy efficiency efforts, to streamlineroles and responsibilities across levels of governments, and to help households and businesses

prepare for the introduction of the Carbon Pollution Reduction Scheme (the Scheme). A first roundof stakeholder consultation was conducted in late January and early February 2009, with nationalworkshops covering energy efficiency in the buildings sector, appliances and equipment andindustry. The development of the draft Strategy drew on these consultations.

The draft Strategy set out in this paper is designed to substantially improve minimum standards forenergy efficiency and accelerate the introduction of new technologies through improving regulatory

processes and addressing the barriers to uptake of new energy-efficient products and technologies.

The Strategy aims to encourage and support innovation in energy efficiency technologies andapproaches. The Strategy incorporates and builds on measures already agreed by COAG and theMinisterial Council on Energy through the National Framework on Energy Efficiency(the Framework).

The development of the Strategy will be further progressed over the coming months. This willinclude the development of specific measures, implementation plans and targeted consultation withstakeholders. The final Strategy will be presented to COAG in mid-2009.

Strategy Themes

The measures in the Strategy are framed around the following four key themes:

1. Assisting households and businesses to transition to a low-carbon future;2. Reducing impediments to the uptake of energy efficiency;3. Making buildings more energy efficient; and4. Government working in partnership and leading the way.

Many of the measures outlined in this Strategy can potentially fit under one or more theme however, for simplicity, measures are listed in the Strategy only under the theme with which they

most closely align.

The processes required to establish and implement the measures are set out in the measuredescriptions. For a number of the measures, details of the process will require further developmentover the next few months.

1. Assisting Households and Businesses Transition to a Low-Carbon Future

Measures under this theme will assist households and businesses to transition to a low-carbon futureby providing material assistance as well as the information and skills necessary to improve theefficiency of energy use. Complemented by the Australian Governments Energy Efficient Homes

package, the Strategy will further help households, industry and businesses reduce energy use by


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ensuring that they are more aware of, and better positioned to, make well-informed decisionsregarding investments in energy efficiency.

One key element to support this transition is the development of a trained and fully engagedworkforce to provide sufficient numbers of skilled people to achieve Australias energy efficiency

potential. The Strategy is designed to encourage innovation and the development, enhancement,

deployment and operation of more energy efficient technologies in the Australian marketplace.The Strategy includes measures to improve consumer awareness of the need for and benefits ofenergy efficiency and the adoption of energy efficiency measures by informed choice.The collection of adequate baseline data is a critical component of the strategy to allow for effectiveimplementation and evaluation of policy measures.

1.1. Industry and Business:

The business sector is by far the largest energy user in the Australian economy. The industrialsector alone accounts for almost half of Australia's energy end use, and around two-thirds ofstationary energy use. Australia has one of the more energy intensive industrial sectors among the

developed countries,1

1International Energy Agency (IEA),Energy Use in the New Millennium Trends in IEA Countries. IEA/OECD 2007.

which partly reflects relatively low energy prices and high levels of energy-intensive raw material production and mineral processing. However, Australias past performancesuggests there may be potential for significant energy efficiency improvements in the industrialsector. Even under a carbon price signal from the Scheme, a range of market impediments maycombine to cause businesses to under-invest in energy efficiency. There is also an importanttransitional role for policy to help ensure businesses are well equipped to implement energyefficiency investments to help offset higher energy prices as the price on carbon generated from theCPRS flows through the economy.

The industry and business component of the Strategy will assist companies and smaller businessesto address market impediments to energy efficiency uptake. Initiatives will help ensure that

businesses have adequate knowledge, skills and capacity to operate in a low carbon economy.The Strategy has a strong focus on assisting businesses to make informed choices to improve theirenergy efficiency. Targeted outreach information, support to identify and implement projects withhigh energy savings potential, and help to assess and prioritise energy efficiency opportunities will

be part of the Strategy. Additionally, there will be measures targeted at small and mediumenterprises (SMEs).

Under the Strategy, actions will also be taken to identify skills gaps and support development of theskills and capacity of the energy services sector, particularly in the area of energy efficiency advice,audit and assessment. Developing these skills will not only assist the transition to a low carboneconomy but will help build the jobs of future. Finally, the strategy will seek to maximise the

potential for the application of co-generation, tri-generation and other distributed generationtechnologies that have the potential to increase energy efficiency.


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Measure Key Elements Process

1.1.1 Provide support to companies toassist them in improving theirenergy efficiency and to makeinformed choices regardingenergy efficiency by addressing

barriers.

- Develop a national approach toencourage companies to developinternal systems to assess andprioritise energy efficiencyopportunities.

- Extend the Energy EfficiencyOpportunities (EEO) program tosmaller users.

- Support companies to identify andimplement high energy saving energyefficiency opportunities includingthrough whole of supply chainassessments and systemsoptimisation of priority industrialtechnologies.

- Provide targeted support to fundenergy efficiency assessments inselected industry sectors.

- Cross-jurisdictional collaboration toimprove the effectiveness of energyefficiency support programs targetedat SMEs.

- Develop targeted outreachinformation to assist companies,including information on systemsoptimization of priority industrialtechnologies including motor andsteam systems.

1.1.2 Assist business and industry toensure they have adequate

knowledge skills and capacity tomeet the challenges of operatingin a low carbon economy.

- Identify skills gaps and fundactivities to address skills shortages

including in energy auditing andadvisory services, and energy-usingcorporations.

- Promote best practice and innovationwithin energy-using corporations andthe energy services sector (throughcase studies).

- Develop the skills and capacity of theenergy services sector and energyusing corporations. (noting that skillrequirements identified will beaddressed through the broader energyefficiency skills initiative outlined in1.2.1).

1.1.3 Maximise the potential for theapplication of co-generation,tri-generation and otherdistributed generationtechnologies that increaseenergy efficiency.

- Provision of information andassistance with the development ofcomplementary/mutuallybeneficial partnerships.

1.2. Skills and Training:

The transition to a low-carbon future will demand the development and application of knowledgeand skills that may not be sufficiently available in Australia at present. The skills and knowledge

requirements for the transition to a low carbon economy are many, from professionals inengineering, architecture, industrial design, energy services including audit and advice,


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environmental sciences, planning and policy, to technical skills in a wide range of trades andindustries.


1.2.1 Develop for approval in 2009and implementation in 2010, anational Energy EfficiencySkills Initiative as acomprehensive strategy toprovide for the future skillrequirements of a low carboneconomy and theimplementation of sustainabilitystrategies.

- Identify energy efficiency skillsrequirements across the economy andassociated training, accreditation andhigher education needs.

- Build on existing Framework processof identification of relevantprofessions and trades and associatedskills and training gaps.

- Develop training courses andmaterials, in association witheducational institutions and industry,to address gaps.

- Seek inclusion of energy efficiencyin relevant trades and professionaltraining, and integration ofaccreditation schemes andqualifications into existing licensing

regimes where appropriate.

- Develop accreditation standards andsystems to support the value ofenergy efficiency training andprovide consumers with confidencein accessing energy efficiencyservices.

- Publicise training and accreditationdevelopments to encourage market

for energy efficiency services,encourage training and providecustomer awareness and protection.

- Note: Development of trainingprograms should take strategicguidance from the proposed NationalAction Plan for Sustainability inVocational Education and TrainingSector.

- Task the Ministerial Council onEnergy to develop a national EnergyEfficiency Skills initiative andaccelerate current work under theFramework on trade and professionaltraining.

- MCE to consult with the MinisterialCouncil on Employment, Education,Training and Youth Affairs and theMinisterial Council for Vocationaland Technical Education (MCVTE)and have regard to the context of thebroader skills initiative beingoverseen by the MCVTE.

1.2.2 Strengthen national capability inenergy auditing and assessment.

- Rationalise existing energy efficiencyaudit and assessment processes withthe aim of achieving nationallyconsistent approaches and

requirements.

- Review need for additional trainingin energy auditing.

- Review (AS/NZ 3598:2000) and(AS/NZS 3598:2000) subject totiming of next scheduled review.

1.3. Advice and Education:

The efficient use of energy requires information that motivates, facilitates and reinforces rationaland responsible behaviour by business and consumers. The Strategy is designed to ensure

Australians have access to clear, consistent and credible information on energy efficient productsand services. The jurisdictions will collaborate when developing communications campaignsdesigned to change community attitudes and behaviours in relation to energy efficiency, and


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consumers will be given energy use benchmarking information. Governments will support theuptake of new technologies by showcasing and promoting energy efficient technologies and energyconservation measures.


1.3.1 Ensure access to clear andconsistent information onenergy efficient products andservices, reducing energyconsumption and incentives.

- Establish an energy efficiencyinnovation element in theCommonwealth web portal (currentlyknown as the On line Portal).

1.3.2 Jurisdictions will collaboratewhen developingcommunications campaignsdesigned to change communityattitudes and behaviours inrelation to energy efficiency toensure campaigns are based onnationally consistent (andclimatically relevant)information and advice.

- Recent examples include: Blackballoons ads; the E3 program EnergyLabels; and the Your Home suite ofproducts.

1.3.3 Implementation ofbenchmarking in consumerenergy bills.

- Provide energy use benchmarkinginformation on customers electricitybills.

- Continue to support the Frameworkproject on Energy BillBenchmarking, which will providehouseholders with information thatwill allow them to measure andcompare their energy consumption.

- A Regulatory Impact Analysis for theFramework Energy BillBenchmarking proposal will beprepared and released forconsultation during 2009.

1.3.4 Showcase and promote energyefficiency technologies andenergy conservation measures.

- Use community and governmentbuildings and educational facilities toshowcase new technologies.

- Establish a network/partnership ofkey research institutions to promotethe development of energy efficienttechnologies.

- Support innovation and the adoptionof best practices to reducing energyintensity in the way that Australianslive and work, with a focus on energyconservation measures that reduce oravoid the need for energy through

better design, planning and productlifecycle management.

1.4. Data:

Accurate, timely and comprehensive data is fundamental to the development and successfulimplementation of new energy efficiency measures. Currently, the availability of broad andconsistent energy efficiency data is limited, with little information about energy use in critical partsof the economy, for example commercial buildings. This Strategy seeks to improve data uponwhich national and jurisdictional energy efficiency policy development and evaluation, reporting,and benchmarking can be based.


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1.4.1 Improve data uponwhich national and jurisdictionalenergy efficiency policydevelopment, reporting andbenchmarking can be based.

- Continue with the Framework dataproject including scope of Phase 2data collection framework.

- Support energy efficiency data seriesand ad-hoc collections through the

Australian Bureau of Statistics.

2. Reducing Impediments to the Uptake of Energy Efficiency

The introduction of the Scheme will address the absence of a price signal for carbon emissions,however, impediments are likely to remain that prevent individuals and businesses from taking-upall cost-effective energy efficiency opportunities. These impediments arise from a range of marketfailures and barriers but in the main result from information failures and split incentives.

The Strategy is designed to encourage and enable action by individuals and business by providingthe right information and ensuring that the regulatory frameworks are in place to deliver continuingimprovements to: electricity markets (in bringing forward demand side initiatives), the energyefficiency of appliances and equipment, and the energy efficiency of the transport sector.

2.1. Electricity Markets:

Historically, energy prices have been relatively low in Australia compared to other OECDcountries. However, prices will continue to rise in the future as a result of the price on carbon underthe Scheme, the expanded renewable energy target (RET) and increasing capital expenditurerequirements to meet peak demand growth. These price increases together with more cost-

reflective retail prices, including the roll-back of retail price caps where competition is found to beeffective, will help drive more efficient use of energy. The roll-out of advanced meteringinfrastructure ("smart meters") combined with information on energy efficient equipment and

behaviours is also expected to assist customers to make energy-efficient consumption choices,while direct load control is also expected to assist manage peak demand growth.

Demand side initiatives include general demand reductions from energy efficiency, peak loadshifting, cost-reflective pricing, and measures to address asymmetry of information. There issubstantial overseas and local evidence to suggest that despite the existence of cost-effectivedemand side initiatives, they are often not effectively accessed by electricity markets as alternativesto expanded supply initiatives. The relatively low energy prices in Australia have providedconsumers with little incentive to act on energy consumption, but with energy prices expected torise, demand side measures are likely to become a higher priority for consumers.

Distributed generation including co-generation and tri-generation can be a cost effective andeconomically efficient alternative to conventional supply arrangements, with the advantages ofgreater efficiency of use of the primary fuel, avoidance of transmission and distribution losses and

potential reduction of the need for network augmentation. However, factors such as lack ofintegrated planning and design for new buildings and uncertainty among users as to legal andcommercial aspects of such projects can act as barriers to the implementation of cost-effective andeconomically efficient distributed generation.

The Strategy includes measures to review and develop actions in consultation with the MinisterialCouncil on Energy to address barriers to harnessing electricity markets to better enable the uptake


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of economic and cost-effective distributed generation and demand side initiatives, whilemaintaining reliability of supply for consumers and industry.


2.1.1 Consider the effectiveness of theelectricity market in bringingforward demand-side energyefficiency measures.

- Initial consideration through thecurrent Australian Energy MarketCommission (AEMC) Demand SideParticipation Review aimed atidentifying obstacles in the Rules toefficient demand-side participationand options for addressing thesebarriers where there are benefits indoing so.

- If required, further independentreview to assess:

- impediments in electricitymarket settings to investment incost effective energy efficient

practices;- regulatory arrangements

affecting energy efficiency in

energy markets (in addition tothe National Energy Market),such as retailer obligationschemes; and

- barriers to the uptake andapplication of distributedgeneration, including tri-generation and co-generation.

- Issues that could be assessed includetechnical restrictions and barriers to

the efficient operation of the pricesignal in the market.

- Following conclusion of Phase Twoof the AEMC Demand SideParticipation Review, COAG todirect MCE to request AEMC toeither:

- include in its Phase Threereview the issues listed underKey Elements; or

- review the issues listed underKey Elements by anotherprocess.

- With the need for an independentreview in addition to the above to beassessed at that time.

2.2. Appliances and Equipment:

Energy consumed by residential appliances and industrial and commercial equipment is a majorsource of greenhouse gas emissions in Australia. By addressing a number of areas where low costenergy efficiency opportunities exist and are yet to be fully exploited, this strategy enablesAustralians to access highly energy efficient appliances and equipment for residential, commercialand industrial applications, aligned with leading international standards.

The Strategy embraces a range of measures aimed at increasing the energy efficiency of productsused in the residential, commercial and industrial sectors. Performance codes and standards are themost widely used measures internationally to reduce energy use and greenhouse gas emissions fromappliances and equipment. Energy efficiency labelling assists consumers by providing information,allowing them to make rational choices having regard to likely operating costs. Minimum energy

performance standards (MEPS) provide consumer protection in a higher energy price context byensuring that inefficient products are not available. These proposed measures include anacceleration of Australias current MEPS and labelling program through the Equipment EnergyEfficiency (E3) program. The program includes implementation of new and revised standards inthe E3 work plan which was developed through stakeholder engagement and a review ofinternational best practice.

Subject to a regulatory impact analysis, national legislation will be established to provide anationally consistent policy framework covering appliance and equipment minimum energy


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2.2.2 Establish national legislation forMEPS and labelling, and overtime move to add Greenhouseand Energy Minimum Standards(GEMS).

- Measure is intended to include anoverhaul and streamlining of theMEPS process to include targettimelines for development andimplementation of new standards.

- Including gas products in MEPS andlabelling.

- GEMS legislation expected to covernon-electrical appliances and systemcomponents that affect the energyefficiency of appliances (e.g. airconditioner ducting).

- Develop and implement in 2010(subject to regulatory impactassessment) national legislation forenergy performance standards.

- Include examination of issues andprocesses for introduction ofgreenhouse standards and labelling inthe regulatory impact analysis.

- The Commonwealth will lead theregulatory impact assessment processin consultation with the states andterritories through the Framework.

2.2.3 Phase-out inefficient lightingproducts in the Australianmarket, commencing withincandescent globes

- Implement import and salesrestrictions on incandescent globes in2009.

- Progressively increase the range oflighting products covered by the

phase out by introducing minimumenergy performance standards.

- The range of lighting productscovered by minimum energyperformance standards will beincreased over time, subject to costeffective alternatives being availablein the Australian market.

2.2.4 Phase-out of inefficient andgreenhouse-intensive hot watersystems

- A set of measures (including energyefficiency standards) to phase-outconventional electric resistance waterheaters (except where the greenhouseintensity of the public electricitysupply is low) and increase efficiencyof other types.

- Appropriate regulatory mechanismsin each jurisdiction, (for exampleplumbing regulations in conjunctionwith the National Construction Code

when developed), will be used toprevent installation of high emissionelectric systems.

- MEPS to regulate remainingtechnologies.

- Education and industry developmentmeasures.

- Jurisdictions to work to betterintegrate, simplify and reduce redtape associated with incentiveschemes, such as by offering rebatesas point of sale discounts and offerone-stop shop approach for rebate

applications.

- Mandatory labelling of gas, solar andheat pump water heaters will also beintroduced.

- As per the current MinisterialCouncil on Energy program -implement a mix of regulatory andindustry development elementsthrough stakeholder engagement.

2.2.5 Develop and implementadditional consumer informationprograms

- Mandate the requirement for starratings of appliances to be displayedin advertising material such asbrochures, television advertisementsand web sites (subject to RegulatoryImpact Analyses).

- Develop information and advice toassist the promotion and sale of themost efficient products.


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2.3. Transport:

The need to reduce emissions from transport is becoming a major challenge for business and thecommunity. Greenhouse gas emissions from the transport sector in Australia continue to grow andamounted to some 13.7 per cent of total emissions in 2006. A number of government-led processescurrently under way are examining opportunities for energy efficiency and addressing emissions

reductions in the transport sector. These processes, under the Australian Transport Council (ATC)and the Environment Protection and Heritage Council (EPHC), will recommend potential measuresfor inclusion in this Strategy.


2.3.1 Develop a package of measuresto improve the fuel efficiency ofthe Australian vehicle fleet andtravel demand managementopportunities in Australia.

- Potential measures to be consideredby the ATC and EPHC include:

- CO2standards for new lightvehicles;

- fiscal measures to encourage thedemand and supply of lowemission vehicles;

- standards for non-enginecomponents; and

- a range of consumer informationmeasures.

- The Vehicle Fuel EfficiencyWorking Group will report to theATC and EPHC in May 2009 on theassessment of potential measures andrecommendations for future actions.

- The ATC is also consideringenvironment and climate changeissues in the development of theNational Transport Policy.Councils are then to provide areport to COAG.

- Recommendations from this reportagreed by COAG would becomeelements within the Strategy.

2.3.2 Encourage the domestic carmanufacturing industry todevelop and build more efficientpassenger motor vehicles.

- The CommonwealthGovernment's $6.2 billionA New CarPlan for a Greener Futureisdesigned to encourage innovativeindustry responses to market

challenges, particularly investment inenvironmentally-friendly automotivetechnologies.

- In particular, the $1.3 billion GreenCar Innovation Fund will provideassistance over ten years to design,develop and manufacture low-emission, fuel-efficient cars andcomponents in Australia.

3. Making Buildings More Efficient

Historically our buildings have not been built with energy efficiency as a key concern, althoughvoluntary industry action and reforms instituted over the past decade have begun to transform our

built environment. Energy consumption in buildings accounts for approximately 20 per cent ofAustralias greenhouse gas emissions split equally between commercial and residential buildings.

This Strategy sets the foundation for a transformation of Australias building stock. The Strategy isdesigned to drive significant improvement in minimum energy efficiency standards to deliversubstantial growth in the number of highly energy efficient homes and commercial buildings,reflecting international best practice. The transformation will be achieved through a combination ofmeasures addressing both new buildings construction and the existing building stock.


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New buildings will be constructed according to increasingly stringent energy efficiency standardsthat will lead to a reduction in energy consumption. These standards will account for climaticvariation. Major renovations will be subject to the same standards.

This Strategy also includes measures to help raise the energy efficiency of the existing buildingstock through voluntary action in response to better information about building energy use.

In particular, people seeking to buy or lease properties will be provided with information about theenergy efficiency of the buildings through proposed new mandatory disclosure provisions.Armed with this information, consumers and businesses will be able to make informed choicesabout the energy efficiency of the buildings they buy and lease and builders and building ownerswill respond to those market signals by investing in energy efficiency.

This Strategy encompasses early action in the commercial and residential sectors to significantlyimprove the energy efficiency of new buildings from 2010 and also to phase-in mandatorydisclosure commencing in 2010. This early action will be followed by major reforms to the

building standard setting and rating system in 2011 to deliver national consistency in the wayminimum standards for building energy efficiency are set and how performance outcomes and

design are assessed and rated.

Governments will set out a clear process and timetable for periodic review (for example, every threeyears starting in 2012) of energy efficiency standards so that over the life of this strategy energyefficiency requirements will be progressively increased. This will give industry greater confidenceto innovate and develop affordable solutions to improve building energy efficiency. Six, seven andeight star buildings, or equivalent, will become the norm in Australia, not the exception.


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3.1. Consistency in Standard Setting and Performance Assessment Frameworks:


3.1.1 All jurisdictions will worktogether to develop a consistentoutcomes-based nationalbuilding energy standard setting,assessment and ratingframework for drivingsignificant improvement in theenergy efficiency of Australiasbuilding stock - to beimplemented in 2011.

- This measure will be used to increasethe energy efficiency of newresidential and commercial buildingsand major renovations, for examplewith minimum standards to beincreased every three years.

- Energy efficiency improvements willcontinue to be communicated via starratings, underpinned from 2011 bynew national measurement andreporting metrics relevant to bothnew and existing buildings, under thenational framework.

- This framework will:- apply to new and existing

building stock;

- cover all classes of commercialand residential buildings;

- over time set increasinglystringent minimum performancestandards for new buildings

(subject to regulatory impactanalysis);

- include common metric(s) tounderpin standard setting andperformance assessment;

- include flexibility to account forclimatic variation;

- accommodate mandatorydisclosure of energyperformance at time of sale orlease;

- work towards convergence ofexisting, measurement-basedrating tools (eg, NABERS) forexisting buildings withpredictive or modelling-basedtools used for rating newbuildings; and

- be capable of extension overtime to cover broadersustainability elements,including water managementand greenhouse gas emissions;and the maintenance of energyefficiency performance throughcommissioning, operation andmaintenance of buildings.

- The Building Code of Australia(BCA) will be the instrument bywhich the framework is implementedfor both new building work andmajor renovation of existingbuildings.

- The revised code will:- increase the performance

standard for all new buildingsand transition to a nationallyconsistent performance basedassessment system by the end of2011;

- cover the building envelope andenergy efficiency of building

services;

- allow innovation in meetingdefined performance standards;

- provide for the use of ratingtools developed by the marketwhich provide an accurateassessment of a buildingsperformance, and that such toolsbe transparent and user friendly;and

- facilitate effective monitoringand compliance.

- Governance arrangements fordeveloping this framework will bedetermined as part of theintergovernmental agreement.


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3.2. Commercial Buildings Sector:


3.2.1 Significantly increase over timethe stringency of energyefficiency provisions for allcommercial buildings (i.e. Class3, 5 to 9) in the Building Codeof Australia (BCA) startingwith the 2010 version of theBCA.

- This measure will be achieved underthe new national framework forbuilding energy standard setting andrating.

- A package of energy efficiencymeasures for implementation in2010 for new buildings andmajor new work in existingbuildings which meets abenefit to cost ratio of 2:1.

- New efficiency provisions forheating, ventilation and air-conditioning systems and forartificial lighting.

- Enhancement of the nationalgovernance framework ofNABERS Energy as a part of thedevelopment of a unifiednational framework.

- Note: the last BCA update included apackage of commercial buildingsenergy efficiency measures with abenefit to cost ratio of 5:1.Tightening the energy efficiencymeasures such that the regulatoryimpact assessment comes in at 2:1represents a significant strengtheningof standards.

- Initially, task the Australian BuildingCodes Board (ABCB) withdeveloping more stringent energyefficiency provisions for allcommercial buildings for inclusion inBCA 2010 noting that changes to theBCA are subject to a full regulatoryimpact assessment process.

- A clear process and timetable forperiodic review of energy efficiencystandards will be established so thatover the life of the strategy thestringency of energy efficiency

standards is progressively increased.

- This will incorporate an examinationof how international best practice can

inform each periodic review. Forexample, including consideration ofhow measures such as the UK zero-carbon buildings target are drivinginnovation.

3.2.2

Phase-in from 2010 themandatory disclosure of theenergy efficiency of commercialbuildings.

- Implement a national mandatorydisclosure scheme for largecommercial office buildings (2000mor larger) (Phase 1).

- To also cover commercial buildingsowned or leased by Commonwealth,State and Territory Governments.

- Consideration of expandingmandatory disclosure to otherbuilding types, including hotels,retail, schools and hospitals(Phase 2).

- Develop legislation to implementmandatory disclosure. Noting that themandatory disclosure consultationRegulatory Impact Analysis processwas released by the FrameworkBuildings Committee in late 2008.

- Establish national administration unitto implement mandatory disclosurescheme.


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3.2.3 Implement the Heating,Ventilation and AirConditioning High EfficiencySystems Strategy (FrameworkCool Efficiency Program).

- A code of best practice formaintenance and operation.

- A building services log book(including codes of best practice andsystem documentation standards).

- Voluntary standards (including logbooks) for maintenance of heating,ventilation and air conditioning(HVAC) systems in commercialbuildings where standards are notmandatorily in place.

- Clean Efficiency Project: measureenergy savings achieved fromcleaning and protection of heatexchange services.

- Calculating Cool online tool forexperimental and interactive advice

about keeping buildings cool.- Measure monitor and meter selected

older HVAC systems to informcontrol strategies and reportingregimes to building managers.

- In partnership with peak industrybodies and relevant governmentagencies, deliver the projects of theCool Efficiency Program.

- Develop consistent guidelines forregulated and non-regulatedpractitioners.

3.3. Residential Buildings Sector:


3.3.1 Significantly increase thestringency of energy efficiencyprovisions for all newresidential buildings in theBuilding Code of Australia andbroaden coverage of efficiencyrequirements.

Minimum energy efficiencystandards will be upgraded to 6-stars, or equivalent, nationally inthe 2010 update of the BuildingCode of Australia, to beimplemented by May 2011 andreviewed regularly for potentialupgrade thereafter, for example

3-yearly from 2012.

- This measure will be underpinnedfrom 2011 by new measurement andreporting metrics under the singlenational framework.

- First step is to increaseminimum energy efficiencyrequirements in the 2010 versionof the BCA, so that newbuildings and major renovationsmust achieve a six-star rating orequivalent, noting that changesare subject to regulatory impactassessment.

- Include in the 2010 BCAseparate new energy efficiencyrequirements for hot watersystems and lighting.

- The Australian Building CodesBoard will be tasked with developingand implementing these newrequirements, including undertakingthe associated regulatory impactassessment.

- Subsequent increases in minimumenergy efficiency requirements (starratings or equivalent) will bedetermined through the processoutlined in measure 3.1.1.

3.3.2 Phase in mandatory disclosureof residential building energy,greenhouse and waterperformance at the time of saleor lease, commencing withenergy efficiency by May 2011.

- Credible and meaningful informationis publicly and readily available tomarket participants to assist them inmaking lease/purchase decisions.

- Progress the Framework mandatorydisclosure process and leverage workfrom the ACT mandatory disclosurescheme.

- Examine the implications of differentimplementation options, includingfor landlords and tenants.


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3.3.3 Provide incentives forresidential building owners toundertake energy efficiencyimprovements.

- Commonwealth: Energy EfficientHomes package (including: the lowemission plan for renters, thehousehold insulation program, andthe solar hot-water rebate).

- The range of States and Territoryprograms designed to improve theenergy efficiency of existingresidential housing stock.

3.3.4 States and Territories to auditthe energy efficiency of theirpublic housing stocks.

- States and Territories to considerimplementing cost-effectiveupgrades.

3.3.5 Address the opportunities thatcan be derived from building lotor precinct level layout thatsupport good solar access to

living areas, solar hot water, andsolar photovoltaic systems fornew buildings.

- Building on existing voluntarymeasures and investigating the use ofmandatory energy efficiencystandards for building lot layouts

which provide scope for passive solardesign of new buildings.

- Provision of incentives fordevelopment approval applicationsfor subdivisions and dwellings thatare designed to have outstandingenergy efficiency performance.

- Develop a standard for assessment ofefficient lot layout, and anaccompanying strategy to encouragethe take up of the standard into

planning and development systems.

3.3.6 Provide and promoteinformation on energy efficienthousing options

- Demonstration projects in a widerange of housing types to show whatcan be practically achieved tosignificantly enhance energyefficiency.

3.3.7 Improve our understanding ofthe energy efficiency ofAustralias existing housingstock.

- Undertake a comprehensive on-ground study to assess the actualenergy efficiency status of theexisting housing stock. This studywould include end use metering todetermine overall home energy use,energy use by home appliances andassess the thermal performance of thebuilding shell for different housingtypes.

- Subject to outcomes of the studies,determine possible cost effectiveoptions for increasing energyefficiency for a range of house types.

4. Government Working in Partnership and Leading the Way

Governments are significant users of energy in the community. Improving the energy efficiency ofCommonwealth, state and territory governments operations will therefore not only contribute toreducing Australias total energy consumption (and help to meet its greenhouse gas emissionreduction goals) but also, importantly, demonstrate leadership and thus encourage wider communityacceptance of management tools and other efforts to increase the efficiency of energy use.

The Strategy encompasses several ways to improve energy efficiency of Government operations,

and consequently reduce the whole of life cost and environmental impact. For example,governments are major clients in the commercial buildings market, with the CommonwealthGovernment alone representing around 13 percent of the commercial office market. To improve the


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performance of the building stock that Governments own or occupy, Australian, state and territorygovernments will jointly develop a national approach to improving the performance of their

buildings. Greater emphasis will also be placed on energy efficiency as part of broaderimprovements to the sustainable procurement practices of governments.

Governments will also aim to achieve transport energy efficiencies through using a national

TelePresence conferencing network to reduce government air travel. Street lighting is of variableefficiency across the country which presents opportunities for more efficient uptake. The Strategyincludes a measure to identify barriers to the uptake of more efficient street lighting and developstrategies to address any identified problems.


4.1.1 Governments to significantlyimprove the performance of thebuildings they own or occupy.

- Develop initiatives whichdemonstrate leadership tosignificantly increase theperformance of the buildings theyown or occupy.

- Promote the use of energyperformance contracting to upgradegovernment buildings.

- Develop a National Green LeasePolicy for Government buildings.

- Australian, State and TerritoryGovernments jointly develop anational policy approach, by mid-2009.

4.1.2 Reduce travel relating togovernment business and itsrelated greenhouse gasemissions.

- Establish a national TelePresenceconferencing network to reduceCOAG-related and other officialtravel.

- Roll out of TelePresence network inFirst Ministers departments in alljurisdictions by June 2010.

4.1.3 Place greater emphasis onenergy efficiency as part ofbroader improvements to the

sustainable procurementpractices of governments.

- Review the effectiveness of currentprocurement strategies in promotingenergy efficiency.

- Work through the AustralianProcurement and ConstructionCouncil to implement the Australian

and New Zealand GovernmentFramework for SustainableProcurement.

- Promote and accelerate the use ofenergy efficient equipment (includinginformation-communicationstechnology, refrigerators, etc) ingovernment operations, andinvestigate the adoption ofmandatory energy efficiency

requirements, including the use ofwhole-of-life costing.

- Governments will progressivelytransform their vehicle fleets to bemore fuel efficient.

- Jurisdictions to develop agreedminimum energy efficiency standardsfor government procured equipment.


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4.1.4 Increase the energy efficiency ofstreet lighting.

- Identify barriers to the uptake ofmore efficient street lighting anddevelop strategy to address anyidentified problems, includingconsidering introduction of

mandatory standards for lightingenergy efficiency and related costimplications for local government.

- Collect and make available to streetlighting service providers and localgovernments nation-wideinformation on energy efficient streetlighting.

- Consider whether an incentivemechanism for distributors to installefficient equipment is needed to giveeffect to this measure.

National Strategy Energy Efficiency AU

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Transcript of National Strategy Energy Efficiency AU