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Buildings and Appliances Task Force Action Plan Contents Introduction................................................................................................................................3 Sector Review ............................................................................................................................3 Goals, Objectives, and Metrics ..................................................................................................5 Buildings and Appliances Task Force Action Plan ...................................................................9 Project Results and Impact.......................................................................................................20 Future Areas of Interest and Potential Projects........................................................................21 Task Force Procedures.............................................................................................................21 Appendix A: Individual Project Plans ....................................................................................22 Appendix B: BATF Members and Observers.........................................................................97 Appendix C: Buildings and Appliance Data...........................................................................98 Appendix D: Existing Policies and Programs.......................................................................106 Appendix E: Related Initiatives by Regional Organizations ................................................129 2 Introduction The six countries of the Asia-Pacific Partnership on Clean Development and Climate— Australia, China, India, Japan, the Republic of Korea, and the United States of America—are cooperating to meet both their increased energy needs and associated challenges, including those related to air pollution, energy security, and greenhouse gas intensities. The Partnership has established public-private Task Forces in eight key sectors: (1) cleaner fossil energy; (2) renewable energy and distributed generation; (3) power generation and transmission; (4) steel; (5) aluminium; (6) cement; (7) coal mining; and (8) buildings and appliances. The Task Forces are designed to meet Partnership goals through international cooperation to facilitate the development, diffusion, deployment, and transfer of existing, emerging and longer term cost-effective, cleaner, more efficient technologies and practices among the Partners through concrete and substantial cooperation so as to achieve practical results. As a product of its first stage of collaboration, each Task Force has created an Action Plan which has been endorsed by the Policy and Implementation Committee. The Action Plans contain an initial set of priority activities for implementation. Some projects contained within the Action Plans may need to be refined or elaborated. Financial resources are needed for the implementation of the Action Plans. Some initial funding from some government and industry sources has already been identified for the implementation of projects. Partner countries will continue to work to mobilize further funding from both public and private sectors in order to bring about full implementation of the practical projects identified in the Action Plans and will continually develop new projects and add them to this set of activities. Sector Review The Buildings and Appliances Taskforce (BATF) of the Asia-Pacific Partnership on Clean Development and Climate is tasked with developing projects that address the main sources of greenhouse emissions in the residential and commercial sectors, with the exception of transport. By addressing the buildings in which most people work and live, and the key pieces of mass- produced energy-using equipment used in these buildings, BATF activities have the potential to significantly affect energy end-use in these two sectors. Industrial sector activities are addressed in other working groups of the Partnership. The commercial sector's role in Partner country economies is expected to increase significantly over this period. The buildings sector uses between 20% and 40% of total primary energy for all sectors, depending on the Partner country (see Figure 1). The fraction of each country's total energy- related greenhouse gases attributed to buildings is similar to the share of primary energy. 3 Figure 1: Buildings Sector Primary Energy Use as a Percent of Total National Energy Use Buildings Sector Prim ary Energy Use as a Percent of Total National Energy Use 100% 80% 60% 40% 20% 0% Australia China India Japan Korea US Source: APEC Energy Database <http://www.ieej.or.jp/egeda/database/database-top.html>, and IEA 2003 Energy Statistics <http://www.iea.org/Textbase/stats/index.asp>. Buildings account for an even larger share of total electricity use among the Partner countries, ranging from 25% to 60% (see Figure 2). Figure 2: Buildings Sector Electricity Use as Percent of Total National Electricity Building Sector Electricity Use as Percent of Total National Electricity 100% 80% 60% 40% 20% 0% Australia China India Japan Korea US Source: APEC Energy Database <http://www.ieej.or.jp/egeda/database/database-top.html>, and IEA 2003 Energy Statistics <http://www.iea.org/Textbase/stats/index.asp>. Improved energy use in these sectors is important to an overall greenhouse response. Energy efficiency can often be realized at no net cost or even with a net benefit to the economy as a whole. This is achievable where energy efficiency measures address market barriers to efficient energy management, which are common in sectors where energy use is a relatively small part of expenditure. Energy efficiency can therefore save emissions and have financial benefits to better support investment that may be needed in lower-emission supply technologies. Improvements in energy efficiency can also defer the need for new investment 4 in energy supply to a time when low emission sources are more widely available and at lower cost. A number of previous studies have addressed the potential for energy and carbon savings in the buildings sector; a recent review of findings is forthcoming in the Fourth Assessment report of the Intergovernmental Panel on Climate Change.1 Future analysis by the BATF members will review this and other sources for applicability to the buildings sector in Partner countries. Goals, Objectives, and Metrics Goals • Use cooperative mechanisms to support the further uptake of increasingly more energy- efficient appliances, recognizing that extensive cooperative action is already occurring between Partner countries. • Promote best practice and demonstrate technologies and building design principles to increase energy efficiency in building materials and in new and existing buildings2. • Support the integration of appropriate mechanisms to increase the uptake of energy- efficient buildings and appliances into broader national efforts that support sustainable development, increase energy security and reduce environmental impacts. • Systematically identify and respond to the range of barriers that limit the implementation of end-use energy efficiency practices and technologies. Objectives and Metrics The Task Force intends to translate these strategic goals into quantitative terms, to the extent necessary and practical through ongoing discussion of proposed projects, identification of resources to support these projects, and additional analysis of energy and carbon savings combined with post hoc evaluations of actual savings resulting from Partnership-related activities. The BATF will be considering whether it is feasible and appropriate to establish "aspirational goals" for energy and carbon savings as of a specified date, expressed either in percentage or absolute terms (GWh saved or avoided tons of CO2). While in the near term the focus will be on identifying effective program strategies and promising areas for collaboration among the Partner countries, this has the potential to become an important area for cooperative analysis, discussion, and development of consensus, as suggested by the following BATF objectives: • Identify the cost-effective potential for the energy savings resulting from the BATF projects in each participating Partner country, along with associated energy cost savings and reduced carbon emissions. 1 MD Levine, D Ürge-Vorsatz, et al. 2007. 'Mitigation Options for Residential and Commercial Buildings.' Chapter 6, IPCC Fourth Assessment Report. [Forthcoming.] 2 Note that the phrase 'best practice(s)' is used in this action plan and in several project descriptions because it is a term in common use in the energy efficiency field. The intent is not to imply that there are only one or a few universally acceptable technical solutions or programmatic strategies to save energy, but rather the advantages of clearly documenting and sharing examples of a range of 'good' practices that might be considered, with suitable modifications to suit diverse local conditions. 5 Proposed Metrics: Each participating Partner in a BATF project has estimated their country's expected energy savings for that project, to the extent necessary and practical, using a consistent method and assumptions among the participants (regarding baseline, time frame, economic assumptions, etc.). Potential energy savings have been translated into cost savings and reduced greenhouse gas emissions using consistent methods. • Create or strengthen national goals, policies, and programs to promote greater efficiencies in appliances and buildings. Proposed Metric: Each Partner country has identified and put in place at least one policy or program to cost- effectively address each market segment that represents a certain percentage (e.g. 10%, to be determined by host countries) of total buildings sector energy use. • Assess impact of policies and programs and track progress toward greater efficiencies. Proposed Metric: All programs have provisions in place for collecting, reporting, and analyzing data, to the extent necessary and practical, to assess their net impact on energy savings and cost- effectiveness. • Share results and replicate successful pilot programs, where applicable, in all Partner countries. Proposed Metrics: Key findings on program results and lessons learned from successful or unsuccessful strategies are documented and shared among Partner countries through reports, workshops, and other means. Partner countries evaluate them for appropriateness for national circumstances. New programs have been implemented in other Partner countries or changes implemented because of lessons learned. • Disseminate information across Partner countries and to non-Partner countries on policy/program successes, energy-efficient technologies, and lessons learned. Proposed Metrics: Program results and lessons learned have been made available to Partner countries and interested non-Partner countries. Policies or programs have been replicated in Partner countries and non-Partner countries. • Creation of new or enhanced international and country based networks focused on the ongoing improvement of environmental performance in the buildings and appliances sector. 6 Proposed Metrics: Number of stakeholders engaged in process. Workshops and reports produced and disseminated. The BATF members will estimate, to the extent necessary and practical, the energy savings expected to result from the BATF projects that will be active in their countries. These estimates would be based on a ten-year time horizon (i.e. 2015) and would represent the best judgment of Task Force members of each project's likely net addition to energy savings, taking into account other existing or planned policies and programs outside of the Partnership. The estimates for each project should include an explicit definition of the base case used for estimating these savings, including the effects of projected changes in the stock of buildings and appliances, usage patterns, and technology improvements independent of Partnership projects.3 Project teams may wish to present ranges for the estimated energy, cost, and CO2 savings for each participating country. BATF members would develop these estimates of energy savings to help in project planning and priority setting, rather than as a specific target to be achieved by existing or proposed new policies and programs. Partner countries may choose to cooperate in sponsoring a data and analysis task to support future analysis needs, including: • Identification of energy savings potentials; • Project planning and estimates of future energy savings; and • Impact assessments for completed projects. This task, which would call for a shared commitment of staff effort and resources, would build on existing country-specific, regional, or international data and analysis activities such as APERC, IEA, IECC, and others. Project Development Process The BATF recognizes the important role of energy efficiency in the residential and commercial sectors, as well as the diversity of technologies and stakeholders involved. The BATF members view the identification of policy and program opportunities as an ongoing process, to be informed by each country's unique needs and opportunities, market conditions, characteristics of the current and projected stock of buildings and appliances, prior program experience, and the availability of financial and institutional resources and expertise. For Partner countries the challenge—and also the opportunity—is to define a suitable common ground for collaboration that benefits all those participating in a project. A collaborative Partnership project may involve two or more Partner countries in any number of ways, including but not limited to: 3 Considering the projected stocks of buildings and appliances in 2015 is especially important in China and India, with expected high growth rates of construction and increased market penetration rates of home appliances, office and consumer electronics, and air conditioning. 7 • Information sharing through exchange of reports, online documents, and interactive websites; • Cooperative efforts to compile information on existing policy and program experience develop and maintain online data bases, etc.; • Joint sponsorship and participation in workshops and training programs; • Technical advice and assistance, including site visits, project advisory panels, and working exchanges of technical staff; • Collaborative sponsorship of demonstration projects and pilot programs, and the sharing of measured energy performance data and program evaluation findings; • Cooperative activities to develop new methods (or harmonize existing ones) for appliance energy testing, and energy savings measurement and verification protocols. In selecting collaborative projects, members of the BATF took into account a number of considerations, which each Partner country must weigh in establishing their own priorities: • How large is the energy savings potential, as well as potential energy cost savings and reductions in greenhouse gas emissions? • What is the savings potential? This depends on factors such as: How significant are the current energy use, peak demand, costs, and emissions (as a share of the buildings sector total)? What is the expected growth rate in energy use, by building and appliance type, end use, or region within a country? Are there cost-effective energy saving technologies available that are appropriate for conditions in Partner countries? Is the market infrastructure in place to design, distribute, install, operate, and maintain the technologies? (Note that further development of this market infrastructure may be one of the major objectives of a project.) • Are there effective and tested program designs to address market or institutional barriers to deploying energy-efficient technologies—within a time frame and level of resources suitable for the Partnership? • Which program strategies can build on prior experience and complement rather than duplicate other ongoing, non-Partnership programs? • Are there approaches that can gain special benefit from the participation of several Partner countries, either to aggregate market demand for efficient products and services or to combine unique or complementary strengths of participating Partner countries? (For example, a strong interest by consumers in some countries in more efficient electronic products that are widely manufactured in another Partner country.) • Is there a shared interest in a project area by two or more Partner countries, with at least one Partner country prepared to commit resources and effort to lead the project? 8 • Is there a timely opportunity to incorporate energy efficiency within some other, non- energy market trend or major policy initiative? (Examples might include: a cyclical upturn in the new building construction market; classroom additions or renovations to meet a "bulge" in the school-age population; a government electrification campaign for under-served areas; or the planned major renovation of a district heating system.) At the first BATF meeting in Berkeley, California (April 2006), each of the Partner countries provided initial recommendations for proposed Partnership project areas or broader program areas, issues, and strategic opportunities. More than 15 specific projects were suggested by BATF members, with many common elements. Through extensive discussions, the Task Force members consolidated these project suggestions into a smaller number of key areas, and then indicated their priorities. The result was selection of eight initial project areas to be further developed. As summarized below, and described in more detail in Appendix E, three of these address appliances and four deal with buildings. The remaining project area, financing and contracting, is grouped with the buildings projects but also has some applicability to appliances and equipment. In each case, one or more of the Partner countries agreed to serve as project lead or co-lead for purposes of planning, while several others indicated their initial interest in participating in the project. It was agreed that all Partner countries would have the opportunity to review and comment on project drafts as they evolve, and that participation in a project would be open at any time to all Partner countries, including but not limited to those who initially expressed interest. The BATF members view the project development process as an ongoing effort, and expect to continue adding other project areas in the future. Buildings and Appliances Task Force Action Plan Appliances Appliances, office and consumer electronics, and lighting represent a significant share of energy use in most countries, and are a rapidly growing source of electricity demand and associated greenhouse gas emissions as rising incomes allow consumers to purchase more energy-using devices for comfort, convenience, and entertainment. As electronic controls, displays, and portability (using rechargeable batteries) are built into an increasing variety of consumer and commercial products, power use in "standby" mode (idle, or seemingly "off") is becoming another source of growing electricity demand. At the same time, continuing technology advances are making it possible and increasingly cost-effective to incorporate significant efficiency gains in appliances and other energy-using products. Some of these gains are driven by the economic interest of manufacturers and retailers, while others are in response to market-based policies, incentives, improved rating and labeling information to consumers, and mandatory efficiency standards (see Appendix D). To complement existing policies and programs among the Partner countries, members of the BATF have initially selected three project areas for cooperative action: • Harmonization of test procedures for energy-using appliance and equipment—to work toward common methods of testing and gauging energy performance of selected 9 appliances, in order to reduce the burden to manufacturers of multiple tests and to encourage the growth of international markets for more energy-efficient products and new energy-saving technologies. • Standby power—to build on existing national and international initiatives to better understand market trends and cost-effective technical opportunities to reduce standby power levels in a range of devices, and to encourage actions by each individual country to accelerate market acceptance of new technologies that can help reduce unnecessary standby power. • Market transformation—to encourage the sharing of experience among Partner countries with a range of market-oriented policies and programs, including voluntary labeling and recognition programs for efficient products, utility rebates and tax incentives to both consumers and manufacturers, training and information campaigns, and aggregating buyer demand (e.g. by government agencies) to create a "market-pull" for efficient products. These project areas are summarized below, and described in detail in Appendix A. Project 1—Harmonization of Test Procedures In an effort to eliminate a major barrier to developing successful standards and labeling programs, this project will develop harmonized test procedures for a number of agreed products using a "communities of practice" model. The project includes the evaluation of existing test procedures, and revisions to existing or the development of new test procedures in an internationally harmonized manner. Data will then be amassed using the resulting test procedure and potential mandatory and or voluntary efficiency levels will be developed for use by various countries, as desired. In developing harmonized test procedures among the Partner countries, all products that use standby energy should be considered in coordination with activities under Project 2 (Standby Power). The project outputs will include harmonized test procedures for at least four products from a priority list, robust data sets including comparison test data in each test facility for each of the four products using the test procedure, a list of additional products for BATF to pursue in the future, and a screening method for prioritizing these products. As a result of this project, all governments will have access to internationally harmonized test procedures and can individually or in groups propose to develop potential performance levels upon which to base mandatory or voluntary requirements or labeling schemes for these products as projects to fall under the Partnership at a later date. Project 2—Standby Power Without any significant policy action, standby power could account for around 375 TWh/year of household electricity consumption in 2030 in Partner countries (based on IEA projections and data). Experts have demonstrated across a wide range of products that waste standby power can be significantly and cost-effectively reduced without affecting product functionality and performance. Initial estimates are that standby could be reduced to as little as 100 TWh/year in 2030 with coordinated policy actions on standby. This reduction would save more than 140 Mt/year of greenhouse gas emissions in 2030. The saving represents more than the total projected electricity consumption for Australia in 2030 (for all sectors). The project outputs will include standby data gathered for appropriate targets, mechanisms for achieving targets, and an action plan(s) laying out targets for 2015. 10 The ultimate goal of the effort is to develop a proposal that all Partner countries can endorse which delivers the lowest feasible standby power for agreed appliance types by 2015. Once formulated, Partner countries will implement measures to ensure achievement of agreed levels, noting that not all Partner countries will reach agreed levels at the same date. The project will also report on outcomes, noting areas where Partner countries have reached agreed levels. Project 3—Market Transformation This project will facilitate changes in Partner countries' domestic markets to increase the penetration of energy-efficient products. With the cooperation of retailers/intermediaries as well as the practical use of several incentives, consumers will enrich their practical knowledge of the economic value of energy efficiency and enhance their motivation for purchasing highly energy-efficient products. There will also be engagement with manufacturers and support for training of government officials to enhance their use of procurement policies to help transform markets for these goods. The project outputs include a summary of the measures that Partner countries have already taken or are planning to take to motivate consumers to purchase energy-efficient products, a "best practices" handbook and, based on the best practices, demonstration activities on implementing model practices and benchmarking them into specified areas in each member country. We will also possibly have further discussions on the emerging issues that might be addressed in the future after evaluating the results that the project will have achieved. The project will contribute not only to reduction of environmental burdens, but assist private companies in making profits to sustain production and innovation of energy-efficient products. It will also lead Partner countries to change their domestic markets in order to facilitate the penetration of these products. Buildings Increasing the energy efficiency of buildings demands consideration of a range of factors. Regulatory approaches such as effective building codes represent an opportunity to "hard wire" a minimum standard of environmental considerations into new buildings. Project 6, Building Codes, creates an opportunity to exchange experience on the development, implementation and governance technical information and tools of building codes. The aim is to assist all participating Partner countries in enhancing mutual understanding of each others' building energy codes and ultimately, their further development and improvement. While regulatory measures provide minimum standards and a "push" for increased efficiency, consumer information is needed to promote a market "pull" for technologies that go beyond the minimum. Building certification and ratings help to create this pull and Project 4 looks at collecting information on current activities and strengthening and promoting the role that certification can play in helping to overcome barriers to greater uptake of energy efficiency technologies. Improving the efficiency of existing buildings requires consideration of the financial implications for owners, ongoing operation and maintenance, available services and technology, and the level of upgrade that the building envelope and purpose allows. Upgrading of existing buildings presents significant opportunities to implement low-cost measures with fast payback times, which provide financial as well as energy benefits. 11 Project 5, Existing buildings, aims to address and demonstrate the benefits of upgrade activities and correct operation and maintenance of buildings. New buildings present an opportunity to showcase the financial, environmental and social benefits that are presented through advanced building design, construction and maintenance. Project 7, High Performance Buildings, aims to demonstrate these benefits and show a pathway for building design and construction to move "beyond code" toward an ultimate aim of zero emission technology. Project 4—Building Certification Energy labeling is a key mechanism for ensuring effective energy-saving management and has a broader, positive and important effect on economy-wide energy savings. The energy evaluation and labeling of buildings will not only demonstrate their potential to save energy but also improve market transparency, which can be a catalyst for greater energy efficiency in buildings. In order to overcome institutional, market and other barriers, the project proposes 15 activities that will foster building energy labeling. These fall into four major areas: 1) policy and management systems, 2) technical standards and evaluation methods, 3) plans for building energy labeling, and 4) exchange of information on building energy labeling. The project outputs include a status report on building energy labeling in each Partner, incentive policies on voluntary energy efficiency certification, research on calculation methods of building energy consumption, technical guidelines for building energy labeling, and training workshops. If the activities can be implemented successfully, then building energy efficiency will rise to a new level through effective building certification and labeling schemes. Project 5—Improvements to Existing Buildings The project will employ market transformation strategies to improve energy efficiency in commercial and residential buildings, based on the rationale that abundant opportunities exist to cost-effectively make such improvements by sharing experiences among Partner countries and implementing proven program approaches. There are three subprogram elements: Operations and Maintenance, with the goal of reducing energy use in participating commercial buildings by 10 to 15% through no-cost/low-cost measures and cost-effective retrofits; Residential Buildings, with the goal of improving energy efficiency through improved installation of HVAC equipment and through addressing other barriers to improved energy efficiency; and Program Design, with the goal of incorporating building performance monitoring and recognition activities into government and business policies, programs, and building portfolio management practices. The project outputs include training for building owners and managers and government officials, case studies of implemented no-cost/low- cost energy efficiency measures, and best practices workshops on the three subprogram elements. As a result of this project, it is anticipated that participating buildings will achieve measurable energy savings, governments will have initiated and/or enhanced policies and programs to advance energy efficiency improvements in the areas of project focus, and that barriers to the installation of more efficient HVAC equipment will be overcome. Project 6—Building Codes A building code for energy conservation is the most basic and powerful measure of a country's available technologies and policies. A good and successful code can be used as a 12 reference that allows other countries to reduce their investment of time and money in developing and improving their own codes. This project includes exchanging each Partner countries' code information, policy systems, evaluation and rating systems, and lessons learned through implementation. This project covers technical matters as well as governance system of building codes. The project outputs include a survey on existing codes or efforts to develop building energy codes; any mandatory and voluntary government programs already under way; simplified tools to estimate future energy consumption; the impact of building codes; and detailed information exchanges. The project will result in the enhancement of Partner countries' mutual understanding of each others' building energy codes and, ultimately, their further development and improvement. In addition, it will reduce the time and expenditure needed to improve codes by allowing members to refer to the experiences and technical systems of other countries with well- organized building codes. Finally, this project will contribute to enhancing international trade in building materials and systems and international cooperation among building companies to develop new markets in the region. Project 7—High-Performance Buildings and Development The project aims to increase the proportion of new buildings and developments that incorporate cost-effective measures that support the clean development and climate objectives of the Partnership. The project also seeks to support the integration of efficient buildings and infrastructure into larger abatement projects (e.g. "zero net energy" precincts) and identify promising areas for technical and market development to support wider uptake of advanced building design. Market-based strategies focused on accelerating the adoption of these approaches must be able to draw on a verified base of relevant technical and economic information. The project will collect, and disseminate to member countries, verified technical and economic information, in a common framework, for use in building projects and policy initiatives. The project outputs include a database of verified technical and economic information about high-performance buildings and developments, methodologies to assess the costs and benefits of alternative building designs through a common framework, and member country pledges to support the construction of buildings or larger developments (e.g. precincts, suburbs, towns, etc.). This project will result in reduced energy consumption, on peak electricity demand and associated CO2 emissions (e.g. per square meter) due to the incorporation of improved building practices, building materials, equipment, controls and ongoing management, and improved disaster resistance in buildings—e.g. lower mortality and property losses. It may also lead to agreement on ways to recognize, for example, through a system of awards significant efforts toward the project goal in member countries. Project 8—Financing and Contracting This project area broadly covers successful models of innovative approaches for overcoming barriers to financing of and contracting for energy efficiency. There are many barriers to the uptake of energy efficiency measures built into existing financing and investment practices. BATF work within the finance and contracting sector represents a significant opportunity to remove barriers and demonstrate incentives to increase institutional support for energy efficiency activities and considerations in the buildings and appliance sector. 13 Utilities have great potential to finance and deliver end-use technology and services that would impact on the energy efficiency of a vast majority of residential and commercial buildings in many countries. However, competing incentives and barriers to action prevent these opportunities from being realized. Project 8 Sub-Project 1 will increase the understanding of regulatory and other incentives and help to develop and demonstrate successful measures to overcome barriers. Project 8 Sub-Project 2 looks at two key enabling mechanisms that will help to increase the demand for energy-efficient buildings and appliances from users of buildings and residences. "Smart systems" work to improve the information available to energy consumers and "green leases" help to overcome the tenant–landlord split incentive barrier to improved energy efficiency technologies and management practices. Project 8 Sub-Project 3 focuses on ways to increase levels of private investment in energy efficiency activities by strengthening the ability of support services to shift investment. 8 Sub-Project 1—Utility Regulation and Incentives Experience in several Partner countries, and in a number of individual states within the United States, has demonstrated that electric and gas utilities have enormous opportunities to finance and deliver end-use energy technology and services to their customers—covering the vast majority of residential and commercial buildings in many countries. This experience has also shown that there are significant barriers to aggressive action by utilities in this area. Until utilities have financial incentives or regulatory imperatives to pursue improvements in energy efficiency, the adoption of efficiency measures will be severely inhibited. The project will: • Identify and share successful models of innovative approaches for overcoming barriers to utility financing and implementation of energy efficiency programs; • Work to understand each country's utility and regulatory systems to determine applicability of different innovative approaches; and • Enable member countries to voluntarily identify and jointly implement activities to demonstrate or expand selected approaches to removing barriers to effective utility financing of energy efficiency programs. The project outputs include a report compiling experiences and successful practices from Partners and other sources; a workshop to discuss and refine the draft report; identify needs and design cooperative projects; a handbook for design and implementation of effective utility regulation; and an assessment of the needs and potential of selected Partner countries. As a result of this project, utility companies will shift a greater fraction of their considerable financial and technical resources to financing and implementation of energy efficiency in buildings. They will also play an expanded role as a delivery mechanism for energy-efficient appliances, equipment and services to residential and commercial customers. 8 Sub-Project 2—Enabling Mechanisms Overcoming barriers that inhibit the wider uptake of otherwise commercial energy efficiency actions can be significantly achieved through promoting key underlying "smart" technologies and working to more effectively allocate incentives and responsibilities for improved energy 14 management. Such enabling mechanisms increase demand for energy-efficient buildings and appliances as well as providing innovative market approaches to achieving energy efficiency, greenhouse gas reductions and broader sustainability. This project focuses on two key enabling mechanisms: residential "smart systems" for improved information and load control and commercial building "green leases" to help overcome the tenant-landlord split incentive barrier to improved energy management. The project outputs include the creation of a Smart Meter Working Group, formulation of a conceptual cost/benefit framework for use by electricity utilities that is adaptable to national circumstances, and development of supporting tools to assist business case consideration of smart meters—guidelines, methodology, templates and calculation tools, where appropriate. The project will result in an increase in the market uptake of residential smart systems, in the efficient energy management of commercial building operations through providing transparent legal options to overcome the market failure of the tenant-landlord split incentive problem, and in an increase in the uptake of energy efficiency building designs and appliances in participating Partner countries through stimulating additional market demand. 8 Sub-Project 3—Commercial Financing The overall goal is to facilitate increased levels of private investment in building energy efficiency projects in Partner countries. The project will identify and share successful model approaches to remove barriers to private financing of and contracting for energy efficiency investment and enable member countries to voluntarily identify and implement joint projects to remove barriers to private energy efficiency investment and demonstrate or expand selected models. The project outputs include an inventory of successful approaches to remove barriers to private energy efficiency financing and contracting, including assessments of effectiveness, individual country selection of models to apply within their economies or to share with other Partners, joint projects, and annual reviews of project progress. The project will result in incremental change in private companies offering energy efficiency services, measured in number of companies and total sales; in private investment in energy efficiency in terms of number of investors and volume of equity investment; and in the number of private financial institutions lending to energy efficiency projects and volume of lending. Integration of Project Results The Buildings and Appliances Task Force can play a valuable role in pulling together results of the individual projects and using them in a consolidated way to inform and develop future on buildings and appliances (see Figure 3). One of the benefits of the individual projects will be development of information networks within and between participating Partner countries. The BATF can add value by facilitating information exchange and network connection between projects to capitalize on the full suite of results on the barriers to and incentives for improved uptake of energy efficiency in the sector. For example, the projects looking at existing buildings, finance and contracting and building certification, while operating separately to achieve individual goals, will have results that can be integrated. This will help in moving what we know about uptake of technologies and services available to increase the efficiency of existing buildings to a more integrated and sophisticated level. Opportunities can then be sought which help to integrate the different 15 project findings and develop options for the future. These could include, for example, workshops, conferences, studies or demonstration projects. Similar mechanisms and links could be explored between related projects on: • New buildings (finance and contracting, high performance buildings, building codes, and building certification). • Appliances (harmonization, standby, market transformation, finance and contracting— metering technologies). • Overall integration of buildings and appliances energy efficiency uptake measures. The BATF will, with input and support from projects, explore ways in which it can capitalize on this opportunity and encourage dialogue across projects to inform the development of future projects in the sector. Figure 3: BATF Role in Project Integration Integration of Project Results Dialogue on Barriers and Incentives to Uptake of Efficiency Measures: • Existing Buildings • New Buildings • Appliances Dialogue on Future Action BATF Facilitation of Information and Technology Exchange and Networks on Buildings and Appliances Sector BATF PROJECTS Research, Analysis, Demonstration Sharing of information and creation of project specific networks between and within project participant countries And Links to Those of Other Task Forces Power Generation and Transmission (e.g., DSM activities), Renewable Energy and Distributed Generation (e.g., buildings-related photo voltaics), and Cement (e.g., building materials). 16 Major Milestones Project Lead and Participants Project Areas 2006 2007 2008 2009 2010 Project 1: Lead: Korea Organize working group for Finalize test procedures; Complete market research of For additional products, For additional products, Harmonization of Co-Lead: United priority products; gather and circulate procedures to priority products; choose revise existing procedures or finalize test procedures Test Procedures States & Japan evaluate information on respective industries for additional products for draft new test procedures and circulate to Participants: existing test procedures; testing of priority product working group to address; and circulate for review respective industries for Australia revise existing procedures or models; compile data for gather information on test testing of priority draft new test procedures priority products procedures for additional product models and circulate for review products Project 2: Lead: Australia Identify products and sectors to be studied by establishing working groups, conducting (2008-2011) Maintain a reporting function for new Standby Power Co-Lead: Korea workshops on measurement, and analyzing proposed products for barriers to the adoption of products entering the multinational market; measure Participants: standby energy efficiency; gather current standby data and future road map for each Partner progress through continued benchmarking activities and China, United country; undertake benchmarking activities; publish Action Plan(s) with common targets for data gathering, establishing and/or enhancing testing States 2015 for selected product types capabilities, and identifying products not meeting the standby challenge Project 3: Lead: Japan Share information on market Summarize country Select best practices for Continue to carry out Monitor and evaluate Market Co-Lead: Korea transformation policies and information and set implementation; carry out selected demonstration the performance of Transformation Participants: programs among Partner benchmarks for best demonstration activities activities; expand ongoing activities implemented China, United countries: Conduct project practices; conduct workshop based on best practices activities and develop new with reference to States, India meeting at Energy Expo in Tokyo; activities market transformation conduct workshop and towards energy-saving publication of "Best and CO2-reducing Practice" Handbook technologies Project 4: Lead: China Collect information and Evaluate policy and Carry out pilot projects on Establish an information Building Co-Lead: United develop project plan; plan management systems for building energy labeling; exchange network; continue Certification States detailed activities and building certification; carry summarize and disseminate to improve tools for energy Participants: develop implementation plan out technical system results of pilot projects labeling Australia, Japan, for each country research and stage Korea, India achievement report; design pilot projects 17 Project Lead and Participants Project Areas 2006 2007 2008 2009 2010 Project 5: Lead: United Begin initial activities under Implement sub-projects including tool development, Evaluation of project results Existing Buildings States sub-projects (Operations & workshops, technical assistance, and training Participants: Maintenance, Residential Australia, China, Buildings, and Program Japan, India Design) including stock- taking and data collection Project 6: Lead: Korea Create working group to Draft, circulate for review, Report on current national Submit scenarios to reduce Finalize report on Building Codes Participants: draft and disseminate a and publish report, "Building building consumption; energy consumption; draft, principles and scenarios China, Japan, building code survey to Codes of Partner Countries;" submit long-term national circulate and revise report on for national code India participant countries; collect circulate assessment results building code plans; develop principles and scenarios for enhancement; improve and evaluate country reports from window workshop simplified tools to estimate national code enhancement; recognition of window and compare main items of future national energy implement domestic window cross-certification. building energy codes; consumption; report long- rating procedure conduct window workshop term estimates of energy on energy-efficient window consumption; complete potential technical basis and procedure for window ratings Project 7: Lead: Australia PIC project endorsement; Post collected data on Conduct forum on high- Promote national High- Co-Lead: Japan collect national nominations Partnership web site; review performance buildings; agree exemplar demonstration Performance Participants: for project team high-performance buildings on assessment methodology; projects Buildings & China, United membership; create and measures conclude information Communities States, India indicative budgets; establish sharing agreement; data templates; select high- implement policies for high- performance building performance buildings examples; provide country building data; post sub- project information on Partnership web site; hold conferences on available technologies and building processes; agree on pilot projects, green precincts, and information- and technology-sharing protocols 18 Project Lead and Project Areas Participants 2007 2008 2009 Project 8: Lead: United Sub-project 1: Utility Regulation and Incentives Financing & States Contracting Co-Lead: Develop report compiling experiences and Implement cooperative projects and document Complete handbook; conduct needs and Australia successful practices; convene workshop to results; draft handbook for design and potentials assessments of selected member Participants: discuss and refine draft report, identify needs, implementation of effective utility regulation and countries; support adoptions of successful India, Korea, and design projects; issue year-one report incentives incentives Japan Sub-project 2: Enabling Mechanisms Smart Systems Smart Systems Smart Systems Form Working Group and industry partnerships; In collaboration with industry, develop Complete, test, refine, and disseminate complete strategy for subproject delivery, standardized assessment framework and assessment framework and supporting tools monitoring and evaluation; review international supporting tools Green Leases (2009-2010) smart systems and common business drivers Green Leases Demonstrations within key government Green Leases: Develop "model" green lease schedule template; buildings and private sector champions Form Working Group and industry partnerships; tailor schedules and supporting tools to national portfolios; develop and disseminate national summarize international experience; circulate circumstances investment/ finance sector impact studies report on participant's national circumstances Sub-project 3: Commercial Financing (2006-2007) Identify successful models, useful (2007-2008) Implement jointly approved Continue and review implementation of joint information, and joint demonstration activities; projects projects issue reports on successful models and lessons learned; contact vendors and financiers to identify potential for activity expansion 19 Project Participants and Resources (US$'000) 2007 2008 2009 2010 2011 Total Funding Funding Funding Funding Funding Project 1: Funding 800 1,000 1,200 1,000 800 4,800 Harmonization of Test needed Procedures Funding needed Project 2: Standby Funding 1,100 1,100 1,100 1,100 - 4,400 Power needed Funding needed Project 3: Market Funding 287 287 Transformation6 needed Funding 87 TBD needed (Japan) Project 4: Building Funding 906 Certification needed Funding needed Project 5: Existing Funding Buildings needed Funding needed Project 6: Building Funding 900 900 1,100 1,100 1,100 5,100 Codes needed Funding needed Project 7: High- Funding 3,350 Performance needed Buildings & Funding Communities needed Project 8: Financing Funding 2,000 200 300 400 100 3,000 & Contracting4 needed Funding needed Project Results and Impact [To be added based on project data/evaluation.] Project Accomplishments Progress Towards Metrics 4 This figure is a partial estimate and does not cover all of the activities under this project. 20 Impacts on Strategic Goals and Objectives Future Areas of Interest and Potential Projects At their initial April 2006 meeting in Berkeley, CA, BATF members identified a number of potentially promising program areas and energy-saving technologies and practices. The current proposals for work in eight project areas represent the priority-setting process at that meeting, although it was envisioned at the time that additional program areas would continue to be identified, and added to the Action Plan as Partner countries' resources and interest allow. Task Force Procedures [This section to be added for discussion at the November 2006 BATF meeting.] Planning Process • Project selection guidelines • Funding procedures • Other Meetings • Frequency, location, hosting • Participation by delegates, observers, invited experts Project Management and Reporting Coordination • Other Partnership Task Forces (e.g. Renewables/DG, Cement, Steel, Power Generation/Transmission (for DSM) • Buildings and appliances industries (as customers and providers of technologies/services) • Other multilateral organizations—APEC, IEA, multilateral lenders, etc. Communications • Among TF members • Partners and stakeholders (industry, government, NGO, researchers) • Public (outreach and information campaigns) • Non-Partner countries 21 Annual Plan Updates Appendix A: Individual Project Plans BATF PR-012006—Harmonization of Test Procedures Project number: APP BATF PR-012006 Date: 31 August 2006 Title of project: Harmonization of Testing Procedures (Communities of Practice) Leading member & co-leading member: Lead: Korea; Co-Leads: U.S. and Japan Participants: Australia, India Project Overseer: Mr. Jun-Young Choi, PhD, Energy Evaluation Team, Korea Testing Laboratory Postal address (leading member): Gyeonggi Techno-Park, 1271- Phone: +82-31-500-6360 11, Sa-1-Dong, Sangnok-Gu, Ansan-Si, Gyeonggi-Do, Korea, 426- Fax: +82-31-500-6377 901 Email: firstname.lastname@example.com Financial Total cost of proposal: information US$ 4.8 million Type of project: Demonstration/pilot national policy, law, regulation appliance testing/labeling Seminar/symposium training & technical assistance public/consumer information Database/website survey, analysis, research others (please specify) Project start date: 1 Nov 2006 Project end date: 31Oct 2011 Project summary: In an effort to eliminate a major barrier to developing successful standards and labeling programs, this project will develop harmonized test procedures for a number of agreed upon products using a "communities of practice" model. The project includes the evaluation of existing test procedures, and revisions to existing or the development of new test procedures in an internationally harmonized manner. Data will then be amassed using the resulting test procedure for use by various countries, as desired. Signature of Project Overseer: Jun-Young Choi Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: Goals and Objectives The goals of this project and its sub-projects are: • To develop a process for arriving at a methodology for test procedures that measure product energy efficiency and/or energy consumption which are harmonized among the participant countries, recognized as such by manufacturers, and could be adopted by other 22 countries interested in developing labeling, regulatory standards or voluntary levels for these products—termed the "communities of practice" model. • To develop the methodology of harmonization with test procedures for 4 or more products from the priority list using the process described above. • To share the developed new methodology, and to recommend the formal standards by an economy's standards-setting agency or by an international agency such as the International Standards Organization (ISO) or International Electrotechnical Commission (IEC) or both. • To amass testing results using the test procedure and potentially existing test procedures for these priority products. • To develop a process for establishing a base on which mutual acceptance of accreditation of energy efficiency testing facilities and the results of test performed at these facilities can be achieved. • To develop a screening method to be used for prioritizing additional products for which to develop harmonized test procedures in the future. As a result of this project, all Partner countries will have access to internationally harmonized test procedures and can individually or in groups propose to develop potential performance levels upon which to base mandatory or voluntary requirements or labeling schemes for these products as projects to fall under the Partnership at a later date. In addition, it is necessary to accomplish this project in cooperation with other international bodies such as the International Standards Organization (ISO) or International Electrotechnical Commission (IEC) or both. Furthermore, the International Energy Agency (IEA) is advancing its studies (G8 programs of work: Strategic approach to Gleneagles Plan of Action on transforming the way we use energy appliances). Their scope is similar to that of this project, and we acknowledge that conformity is an essential element for these activities. Performance Indicators 1. Development of a step-by-step process for establishing the methodology of harmonization with test procedures that is inclusive and comprehensive. 2. Share the new methodology with harmonized test procedures and/or recommend to standards-setting agency or by an international agency such as the ISO or IEC (or both) for at least four products from priority list. 3. Robust data sets including comparison test data in each test facilities for each of the four products using the test procedure. 4. List of additional products for BATF to pursue in the future. 5. Screening method for prioritizing additional products of interest to pursue in the future. The harmonization of test procedures as outlined in this project responds to the priorities set by the PIC by allowing for collaboration to 'create an enabling environment for the development, diffusion, deployment and transfer of existing and new practices' in the form of 23 the test procedures, as described by the Vision Statement. In addition, by evaluating the appropriateness of an existing test procedure to serve as the resulting harmonized test procedure, this project follows section 3.1 of the Action Plan Guidelines, which expects each Task Force to "build on a wide range of actions already in place in Partner countries" and to "leverage existing initiatives to maximize return on resources." Lastly this project responds to the Work Plan objectives by using "cooperative mechanisms to support further uptake of increasingly more energy-efficient appliances" and attempting to "identify and respond to a potentially significant barrier that would limit the implementation of end-use energy efficiency practices and technologies." If you cannot measure it, you would not know if it is energy-efficient. Background Many countries have test procedures, standards, and labeling (mandatory and/or voluntary) schemes for a wide variety of products. In the majority of cases, these test procedures and resulting performance levels are different, resulting in a worldwide patchwork of testing and performance requirements for manufacturers to meet in order to sell in that market. In addition, for countries looking to develop a standards and labeling program the burden of developing a test procedure and performance levels is daunting. Even if the country were looking to use a test procedure developed by another, they would need to first evaluate all of the existing test procedures to determine which is appropriate for the products in their market. Each of these endeavors is intensive in terms of cost, time, and technical expertise to do it properly. Harmonized test procedures are fully achievable for many products and would greatly benefit these countries and reduce the burden on manufacturers of complying with the multitude of standards worldwide. Test procedures and rules may be published as formal standards by an economy's standards- setting agency or by an international agency such as the International Standards Organization (ISO) or International Electrotechnical Commission (IEC) or both. Some products may already have international test procedures, but they are not fully capable of testing energy consumption on a comparative basis. In addition, it takes a long time to revise or modify an existing test procedure with new technology or realistic test procedures. It should be noted that we need harmonized test procedures for products in large trading and energy consuming Partnership regions. There have been internationally coordinated test procedure development activities, as well as activities by national governments with limited international cooperation. For example, the U.S. Department of Energy and the US Federal Trade Commission have led efforts since 1975 to develop standards for over 16 types of residential appliances and certain commercial and industrial equipment. The DOE/FTC program was implemented in response to U.S. federal legislation and allows for public/international input through a formal rulemaking process. More recently, through voluntary program approaches, there have been efforts led by the U.S. Environmental Protection Agency to develop testing procedures for external power supplies and computer monitors. These initiatives actively involved international counterparts in all aspects of procedure development and resulted in procedures that are harmonized internationally, as was the goal. Similar efforts are currently under way to develop internationally harmonized test procedures for televisions and compact fluorescent light bulbs. In addition, the Top Runner (TR) standards have been introduced as an energy conservation standard in Japan. The TR system uses, as a base value, the value of the product with the 24 highest energy consumption efficiency on the market at the time of the standard establishment process and sets standard values by considering potential technological improvements added as efficiency improvements.5 The steps in setting a TR standard are, first, to study and decide on a test procedure, next, to use this procedure to measure the energy-efficiency of all products, and then, to set the standard at the "efficiency level of the most efficient product plus a margin for technological improvement." In the experience of Japan, it is important for appropriate to adopt relevant test procedures that ensure domestic and international harmonization, based on specific equipment's actual usage. When determining methodology for reference values and test procedures, individual technologies (and their technical limit) should be assessed correctly. Methodology For the list of products previously identified as priority by BATF (home digital appliances (televisions, set-top boxes, personal computers), motors, HVAC-R (air conditioning, refrigerators, refrigerated display cabinets, and others), lighting (including street lighting)) • Gather information on existing test procedures or existing efforts to develop test procedures, as well as any mandatory and voluntary programs already under way internationally. • Evaluate quality of existing test procedures as a whole or in parts. It is necessary to consider following points for international harmonization of test procedures: Methodological points; Test/actual; and Denominator definitions (e.g. volume). • A resulting internationally harmonized test procedure could be the product of putting together parts of several different test procedures. • Summarizing the methodological issues and set concrete goals for the identification of the best practices with harmonization of test procedures. Circulate "Best practices with methodology with harmonization of test procedures" to standards-setting agency or by an international agency such as the ISO or IEC or both. • If there are no existing test procedures, or existing procedures are inadequate, work with testing experts to draft a new test procedure via face-to-face meetings, conference calls, and email in working groups for the listed products. Circulate draft(s) to international energy efficiency community and industry for comment via e-mail and finalize. • Document the process for each product. 1 Target products (21 items): home/office appliances (air conditioners, refrigerators/freezers, microwave ovens, rice cookers, fluorescent lights, TV sets, video cassette recorders, DVD recorders, PCs, magnetic disc units, copying machines, etc), transformers, passenger vehicles, freight vehicles. 25 Circulate a test procedure to manufacturers encouraging them to test products according to this procedure and existing test procedures and submit results/data. Get a comparison of test data from different test labs, using the harmonized test procedure and existing test procedures for each product. Conduct basic market research into these products and how they are sold in each country including, but not limited to: • Define products and subcategories (classes). • Identify product manufacturers and brands sold locally. • Identify distribution channels and ratio of sales. • Understand the mix of local vs. imported products. • Survey manufacturers and/or local trade associations regarding number of products sold each year. • Determine plug load at various settings and market penetration (what does a typical home have, establish installed base of product) through available data or survey homes and businesses. • Establish an average or typical usage pattern for the product. Choose a list of additional appliances/products that are of interest to the Task Force. Establish spreadsheet-based methodology to assess potential benefits for improving the efficiency of products of interest to include: • Establishing energy efficiency and/or energy consumption baselines for each product. • Estimating future product energy use and energy savings as a function of energy efficiency. • Potential environmental and monetary savings to be determined based on country specific inputs. Narrow list of products to pursue based on product savings potential and market barriers and opportunities. Follow steps 1–3 above for these additional products. 26 Milestones Step-1 Step-2 Year 1 Year 2 Year 3 Year 4 Year 5 Sub-Project 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 For priority products, gather information on existing test procedures and mandatory/voluntary programs and evaluate Either revise existing procedures or draft new test procedures and circulate new and existing test procedures for review For priority product, finalize test procedures, circulate new and existing test procedures to respective industries for testing of priority product models Organize working group for priority products Amass data for original group of priority products Complete market research of priority products Simultaneously choose a list of additional products for the working group to address and being to conduct market research and develop spreadsheet model for each product For additional products, gather information on existing test procedures and mandatory/voluntary programs and evaluate for additional products For additional products, either revise existing procedures or draft new test procedures and circulate new and existing test procedures for review For additional products, finalize test procedures, circulate new and existing test procedures to respective industries for testing of priority product models For additional products, amass data for original group of priority products 27 Dissemination of Project Results The majority of interaction and dissemination will occur via email. A dedicated website may be established to facilitate posting of documents and comment on draft documents. Target audience is technical consultants, testing laboratories, government agencies, and other in Partner and (perhaps) other interested countries. Assessment of Project Project results include the actual test procedures to measure energy efficiency and/or energy consumption for identified products. Energy savings and associated greenhouse gas reduction can be measured using a variety of methods including Kw per sq m or CO2 per sq m. For example, energy efficiency measures may reduce the sq m energy consumption and the associated CO2 emissions may be further reduced where energy is produced by the building, e.g. solar or thermal. 2010 2007 2008 2009 Funding 2011 Funding Funding Funding (US$1,00 Funding Total Sub-Project/Task (US$'000) (US$'000) (US$'000) 0) (US$'000) (US$'000) 1. For priority products, gather 200 200 information on existing test procedures and mandatory/voluntary programs and evaluate 2. Either revise existing procedures or 400 400 draft new test procedures and circulate for review 3. Working groups (x3) & workshops 200 200 200 200 200 1,000 (x2/yr/WG) 4. Finalize test procedures, circulate to 400 200 600 respective industries for testing of priority product models 5. Complete market research of priority 200 200 400 products 6. Amass data for original group of 200 200 400 priority products and derive possible spec/MEPS levels 7. For additional products, gather 200 200 400 information on existing test procedures and mandatory/voluntary programs and evaluate 8. For additional products, either revise 200 400 600 existing procedures or draft new test procedures and circulate for review 9. Finalize test procedures, circulate to 400 400 respective industries for testing of additional product models 10. Complete market research of 200 200 additional products 11. Amass data for original group of 200 200 additional products and derive possible spec/MEPS levels Sub-total 800 1,000 1,200 1,000 800 4,800 28 Participation and Management Management • Leader: Jun-Young Choi, Korea Testing Laboratory, Korea • Co-Leader: Keitaro Kimura, METI (Ministry of Economy, Trade and Industry), Japan • Andrew Fanara and Rachel Schmeltz, EPA, United States Participation • Japan: Keitaro Kimura, METI (Ministry of Economy, Trade and Industry); Kiyoshi Saito, JEMA (The Japan Electrical Manufacturers' Association); Tsukasa Kimura, JEITA (Japan Electronics and Information Technology Industries Association); Narito Shibaike, Panasonic • United States: Andrew Fanara and Rachel Schmeltz of US EPA; Michael McCabe and Richard Karney of US DOE; Chuck Samuels of Association of Home Appliance Manufacturers • Australia: Shane Holt of Australia Green Office • Korea: Jeong-Ho Park, Korea Testing Laboratory Funding TBD 29 BATF PR-022006—Standby Power Project number: Date: APP BATF PR-022006 31 August 2006 Title of project: Alignment of national standby power approaches Leading member & co-leading member: Australia and Korea Participants: United States and China Project Overseer: Charles Edlington, Assistant Director, Equipment and Appliances Team Department of the Environment & Heritage Postal address (leading member): Phone: +61 2 6274 1340 GPO Box 787 Fax: +61 2 6274 1814 Canberra ACT 2601 Australia Email: firstname.lastname@example.com Financial Total cost of proposal: information US$4.4 million Type of project: Demonstration/pilot national policy, law, regulation appliance testing/labeling Seminar/symposium training & technical assistance public/consumer information Database/website survey, analysis, research others Project start date: 1 Nov 2006 Project end date: 2015 Project summary: To develop a common approach that all Partner countries can endorse that delivers the lowest feasible standby power for agreed appliance types by 2015. Signature of Project Overseer: Charles Edlington Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: Goals and Objectives • To reduce energy consumed by products which decreases the demand for primary energy and is a key to delivering better economic performance, increasing energy security and reducing greenhouse gas and air pollutant emissions. • To seek a common cost effective approach to address standby power for agreed product types by 2015, while understanding that each Partner may flexibly determine the application of the approach in their respective economy. To encourage the understanding and acceptance of standard definitions for standby power as set out in IEC 62301 30 To develop a process for countries to gain an understanding of the impacts of standby power in their markets. Determine appropriate product sectors and performance levels • To provide a marketplace in which global equipment manufacturers can compete fairly and responsibly. Please note it is at the discretion of each Partner to determine the level of their involvement in this project. A common platform will be pursued, however individual targets and products are to be determined by each Partner. Performance Indicators • A reduction in standby power consumption across Partner countries. • A common platform to deal with standby power across Partner countries. • The introduction of this approach to a list of agreed products. The project is consistent with the objectives of the Policy and Implementation Committee, particularly that articulated through the Buildings and Appliances Task Force objective to "use cooperative mechanisms to support the further uptake of increasingly more energy- efficient appliances." Addressing standby power is amongst the most cost-effective measures to increase the efficiency of products. Background The Partners recognize that standby power is a growing concern in their respective countries, however no two Partner countries approach standby power management using similar approaches. Even Australia and Korea, which have the most similar schemes, yet operate with uncoordinated appliance types, performance levels and implementation dates. Past studies suggest standby power may account for as much as 10% of household energy use in developed countries. It is reasonable to expect, in time, the same numbers for those Partner countries with quickly developing economies. The IEA has produced reports postulating the impact excessive standby could have upon the world were all countries to go down the same product development path. Methodology The project would involve four stages: Stage 1 (2006–08)—Publish action plan/s laying out an agreed common approach to achieve goals by 2015. • Step 1: Process to identify products and sectors to be studied Establish working group/s (WG) to include all stakeholders Conduct workshops on measurement 31 Analyze proposed products to ensure there are no significant barriers to adoption of low standby. • Step 2: Standby data gathering Data gathering for regular country report. Review current standby standard and future road map of each Partner country. Undertake benchmarking activities based on the reports. Set 2015 performance levels for agreed product types. Stage 2 (2009–11)—Maintain a reporting function measuring the standby of new products entering the multinational market • Process to measure progress by product types and by sectors. Continue benchmarking activities, including data gathering. Establish and/or enhance testing capabilities. Identify products not meeting the standby challenge. Stage 3 (2012)—Review progress against 2015 performance levels • Analyze data to determine whether available products are trending toward performance levels. • Establish and/or enhance mechanisms to achieve 2015 performance levels. • Implement measures to achieve agreed levels, noting that not all member countries may reach agreed levels at the same time. • Continue benchmarking activities in 2013–14. Stage 4 (2015)—Report on compliance with 2015 performance levels • Determine whether nominated products met performance levels. • Report project outcome noting areas where member countries have reached agreed levels. Milestones The project would involve four stages: • Stage 1 (2006-08)—Publish action plan/s laying out common targets for 2015. • Stage 2 (2009-11)—Maintain an annual reporting function measuring the standby of new products entering Partner marketplaces. • Stage 3 (2012)—Review progress against 2015 targets. • Stage 4 (2015)—Report on compliance with 2015 targets. 32 Dissemination of Project Results • A website will be established to disseminate information to government, industry and other stakeholders within Partner countries. • Periodic reporting to government and interested parties will demonstrate progress toward the targets set for products • A secure site may also be considered to enable structured electronic communication within, and between, working groups. Assessment of Project • Without any significant policy action, standby power could account for around 375 TWh/year of household electricity consumption in 2030 in Partner countries (based on IEA projections and data). Experts have demonstrated across a wide range of products that waste standby power can be significantly and cost-effectively reduced without affecting product functionality and performance. • Initial estimates are that standby could be reduced to as little as 100 TWh/year in 2030 with coordinated policy actions on standby. This reduction would save more than 140 Mt/year of greenhouse gas emissions in 2030. The saving represents more than the total projected electricity consumption for Australia in 2030 (for all sectors). • Experts suggest that addressing waste standby power is very cost effective, if dealt with during the design phase of product development. Manufacturers need a clear signal from governments that the product should be designed using the lowest power possible to deliver the desired consumer service by the product. Data Collection, Analysis, and Project Evaluation • Data collection is currently undertaken by some Partner countries and the IEA. • Future data collection will be the subject of the project including Annual testing of new products available in retail outlets. Intrusive household surveys to ascertain the numbers and types of appliances purchased. • In the longer term, the project impact will be measured against business-as-usual projections within Partner countries. Participation and Management Management • Lead: Australia—Department of the Environment and Heritage • Co-lead: Korea—KEMCO supported by KERI Participation Other Project Team Participants include: 33 United States US DOE US EPA LBNL AHAM China CNIS CEC Korea MOCIE KEMCO KERI Australia AEEMA Japan METI JEITA JEMA Estimated Budget and Funding Sources 2007 Funding 2008 Funding 2009 Funding 2010 Funding Sub-Project/Task $'000 $'000 $'000 $'000 Total $'000 Secretariat and communications 200 200 200 200 800 services Working groups (x3) & workshops 300 300 300 300 1,200 (x2/yr/WG) Expert analysis (inc data collection/ 600 600 600 600 2,400 analysis, testing procedures) Project total US$4.4 million 34 BATF PR-032006—Market Transformation Project number: APP BATF PR-032006 Date: 31 August 2006 Title of project: Market Transformation Leading member & co-leading member: Leading Member=Japan & Co-Leading Member=China Participants: All AP6 member countries Project Overseer: Keitaro Kimura, Deputy Director, Ministry of Economy, Trade and Industry of Japan Phone: (81)3-3501-6944 Postal address (leading member): Fax: (81)3-3580-2769 1-3-1 Kasumigaseki Chiyoda Tokyo Japan Email:firstname.lastname@example.com Financial Total cost of proposal: information To be determined Type of project: demonstration/pilot national policy, law, regulation appliance testing/labeling seminar/symposium training & technical assistance public/consumer information database/website survey, analysis, research others (please specify) Project start date: September 2006 Project end date: December 2008 Project summary: This project leads Partner countries to change their domestic markets into the places where energy- efficient appliances are facilitated to penetrate. With cooperation of retailers/intermediators as well as practical use of several incentives, consumers will enrich their pragmatic knowledge of economic value of energy-efficiency and enhance their motivation for purchasing highly energy-efficient appliances. Manufacturers will also respond to demand and incentives and market highly efficient equipment. The result will be a reduction of environmental burden, and private companies making profits to sustain production and innovation of energy-efficient appliances. We will summarize measures Partner countries have already taken or are planning to take to motivate consumers to purchase energy-efficiency appliances, and publish as "best practices handbook." Based on the best practices, we will possibly carry out such demonstrative activities as implementing model practices and benchmark them into specified areas in each Partner country. Signature of Project Overseer: Keitaro Kimura Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: Goals and Objectives This project leads Partner countries to change their domestic markets into the places where energy-efficient appliances are facilitated to penetrate. And the project expects that the market transformation would save energy consumption and CO2 emission for using appliances. 35 Performance Indicators Means to present the contributions to energy saving and reduction of CO2 emission by measures of the project adopted should be considered. In addition to these indicators, the following ones would be applicable: • Replies of retailers or consumers to questionnaires about the result of adoption of practical policies/programs. • Manufacturers' reports of changes in volume of energy-efficient equipment models supplied to market. • Measures newly adopted with reference to 'best practices handbook', and number of applications for the measures. • Volume of access to the website of the Task Force. Every indicator nominated in the proposal is understood as probable at present. Approaches to indicators; definition, effect, data collection, etc., should be considered. The "Market transformation" project (sharing best practice for market transformation in member countries) is highly prioritized in the following statements from the Partnership Work Plan: • "…sharing knowledge, experience and good practice examples of how industrial efficiency, energy efficiency and environmental outcomes can be improved…" • "In progressing its work, each Task Force will build on the wide range of actions already in place in Partners through national programmes and… seek to leverage existing initiatives to ensure maximum return on our resources." • "Use cooperative mechanisms to support the further uptake of increasingly more energy- efficient appliances." Background As the global population increases, energy consumption can be expected to increase proportionally in the commercial and residential sectors. Every Partner country has national programs for energy conservation, such as the labeling system, but further conservation will be possible, for example through improving consumers' recognition of and motivation to participate in these programs. This can be done by introducing measures other Partner countries have already demonstrated as effective methods of education or motivation for consumers or suppliers. This project will share and utilize measures other Partner countries have already taken. In Japan, for example, the energy-saving labeling system was introduced in 2000 to inform consumers about the energy efficiency of home appliances and to promote energy-efficient products. These labels indicate how much the product's energy efficiency is improved. The government is going to revise the system in 2006 to show the estimated annual energy charge on the label. 36 Japan has another rationalized system for retailers. This energy-efficient product retailer assessment system was introduced in 2003. Retailers who actively promote energy-efficient products or provide appropriate energy conservation information are selected and receive awards to use the "Outlets that Excel at Promoting Energy-Efficient Product" logo. In addition to national programs in place in member countries, the project will identify and build on existing cooperative projects involving Partner countries to encourage wider implementation of measures to promote markets for energy-efficient equipment. The United States, for example, is supporting cooperative activities on consumer education, incentives and government procurement with partner organizations in China and India. These programs are also supported by international organizations such as the Global Environment Facility, the Energy Foundation and the United Nations Development Program. They can provide a foundation for near-term value-added activities by the BATF, as well as documenting successful practices. Methodology We are looking for more practical measures to facilitate market transformation by reviewing and analyzing the following initiatives in member countries. The range of investigations may become wider as the project progresses. In the course of the project, we may propose to form sub-project groups as appropriate. (1) Programs to Cultivate the Consumer Market • National campaign to choose eco-friendly products (against global warming) • How to provide consumers with information on energy-efficient appliances. (e.g. labeling with annual energy consumption cost); and • Education for consumers, or supporting measures. Education through retailers (e.g. promoting energy-efficient product retailer assessment systems). Environmental preference to be a "green consumer," one who actively chooses eco-friendly products. (2) Programs to Shape the Leading Market (Government Procurement and Incentives) • Government procurement Coordination with labeled products programs, incorporation of energy efficiency requirement, etc. Development of materials and training programs for government procurement officials, etc. • Political incentives needed for market creation. Incentives for steady supply and introduction of efficient products (subsidies, tax credits, etc.). Investment and support for developing innovative technologies. The output on finances or contracts may be transferred to or cooperated with project BATF PR-082006 on financing and contracting. 37 This project should be separated into two stages. In each step presented below, information exchange and further understanding will be progressed by investigating existing policies and measures in Partner countries. At the Task Force meeting and workshops, we will review and benchmark the outputs from the tasks of each step. Milestones 2006 2007 2008 Su bm ission of Act ion P la n t o P IC TF Meet in g TF Meet in g E n d of Au g. Nov. F eb.. Oct .. Meeting for Workshop Workshop the project Energy Expo in Tokyo Stage 1 : To publish a "Best practice handbook" Sharing information on Step 1 the policy/program of AP6 Summarizing the information and set Step 2 benchmarks to collect the best practices Publish Exchanging information "Best Practice Step 3 with related organizations Handbook" to ensure compatibility among each Stage 2 : To implement the "best practices" Carrying out possibly the demonstrative activities in specified area, based on the best practices collected in the Stage 1 Dissemination of Project Results • The target audience: consumers, retailers, and government policymakers. • Electronic formats will be uploaded on the website. Members can print copies if necessary. Assessment of Project This issue will be discussed in the project team together with the discussion on performance indicators. Participation and Management Management • Leader: Mr. Keitaro Kimura, Ministry of Economy, Trade and Industry, Japan • Co-Leader: Ms. Huo Dufang, China Household Electrical Appliances Association Participation All Partner countries participate in this project. 38 It is also desirable that more retailers or other businesses in every Partner as well as governments and industries will participate in it. The Leader and Co-leader will carry out the following tasks: • Setting and management of schedule to lead the project. • Assigning tasks to the members. • Summarizing the results of opinions and information from each member. • Compiling the outcome (best practices handbook). Proposal to Chair and Co-Chair of the Task Force An "electronic forum" for each project should be set up on the website of the Task Force, currently under construction. The Leader and Co-leader of this project should manage the electronic forum of this project on behalf of the Task Force Chair and Co-Chair. As the lead, Japan is preparing US$43,500 for the common activities of this project, such as publishing the handbook and making a basic questionnaire. Other necessary costs may need to be borne by individual member countries. These include: • Travel expenses for attending the project meeting/workshops. • Expenses of detailed survey on circumstances of individual country, etc. Estimated Budget and Funding Sources To be Considered FY2006 Task Funding 2007 Funding 2008 Funding 2009 Funding 2010 Funding 1. Workshop JP: (Feb. 2007) US$8500 (cash) for venue, materials, etc. 2. Survey JP: US$35,000 (Consultancy) (cash) for organizing the members' data, etc. 3. Other necessary US$100,000 Expenses Project total US$143,500 US$ 143,500 US$287,000 + Funding for Stage 2 (see note) 39 BATF PR–042006—Building Certification Project number: APP BATF PR–042006 Date: 31 August 2006 Title of project: Building Certification Leading member & co-leading member: Lead: China; Co-Lead: U.S. Participants: Australia, Japan, Korea, India Project Overseer: Dr. Liang Junqiang, Director of Building Energy Efficiency and New Material, DOST, Ministry of Construction (MOC) Phone: 010-58934548 Postal address (leading member): Fax: 010-58933151 To be supplied Email: firstname.lastname@example.com, firstname.lastname@example.com Financial Total cost of proposal: information To be determined Type of project: demonstration/pilot national policy, law, regulation appliance testing/labeling seminar/symposium training & technical assistance public/consumer information database/website survey, analysis, research others (Please specify) Project start date: 1 Nov 2006 Project end date: 31Oct 2011 Project summary: Energy labeling is a key mechanism for ensuring effective energy-saving management and has a broader, positive and important effect on economy-wide energy savings. The energy evaluation and labeling of buildings will not only demonstrate their potential to save energy but also improve market transparency which can be a catalyst for greater energy efficiency in buildings. In order to overcome institutional, market and other barriers, the project proposes 15 activities that will foster building energy labeling. These fall into 4 major areas: 1) policy and management systems, 2) technical standards and evaluation methods, 3) plan for building energy labeling, and 4) exchange of information on building energy labeling. The project outputs include a status report on building energy labeling in each Partner country, incentive policies on voluntary energy efficiency certification, research on calculation methods of the building energy consumption, technical guidelines for building energy labeling, and training workshops. Signature of Project Overseer: Liang Junqiang Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: Background Analysis of Energy Consumption and CO2 Emissions From the 1990s, the energy consumption of Partner countries has been increasing, rising from 36% of world total consumption in 1990 to 52% in 2002. 40 Rapid growth in construction has led to a large increase in both building floor area and energy consumption, especially in China, the country with the fastest rate of growth in building energy consumption. Accompanying rapid urbanization and construction of new towns, along with improved living standards, building energy consumption in China will eventually increase to about 35% of total energy consumption. Along with energy use, CO2 emissions from Partner countries are also increasing—rising from 44% of the world total in 1990 to 50% in 2002. Analysis of Building Energy Labeling Energy labeling is a key strategy to encourage energy-efficient design and management of buildings. Energy evaluation and labeling of buildings will not only demonstrate the relative energy efficiency of a building, which can be an incentive to invest in more efficient technologies and operating practices, but also improves the market transparency as a further incentive to energy-efficient purchase and investment decisions by real estate developers, thus speeding the development of a market for low-energy buildings. The U.S. experience with Energy Star rating of both homes and commercial buildings has led to some useful experience and practical lessons learned in energy labeling. Energy Star ratings are based on the actual measured energy consumption of each building, with comparisons to other similar buildings as a guide to when and where to consider energy- saving measures. Energy efficiency is also an important part of the green building rating system under the U.S. Leadership in Energy and Environmental Design (LEED) program, which has resulted in more than 2,500 buildings certified to date. Japan has also developed a labeling method to assess the environmental performance of buildings, Comprehensive Assessment System for Building Environmental Efficiency (CASBEE), which has been developed in a cooperative academic, industrial and governmental project. CASBEE is intended for implementation of the environmental assessment based on the new concept of BEE (Building Environmental Efficiency), which enables CASBEE to evaluate both the improvement in living amenity for the building users and the negative aspects of environmental impact. China has also developed the "Energy Efficiency Labeling Management Method" as the first stage of an energy labeling system covering specific building products and equipment. The building energy labeling system has received increasing attention. In 2003 the "Assessment System for Green Buildings of Beijing Olympics" was carried out, followed in the beginning of 2006 by two other projects, "Evaluation Standard for Green Buildings" and "Technical Standard for Performance Assessment of Residential Buildings." China has thus made a start on building energy labeling and setting up its own evaluation system and software. Objectives Building energy labeling offers a large potential to reduce the building energy consumption in both developed and developing countries. If building energy labeling is successful in helping to strictly implement the new building energy efficiency standard in China and to keep retrofitting existing buildings, there is a potential for China alone to save 4.2 x 1011 kWh of electricity and 2.6 x 108 tons of oil, while reducing greenhouse gas emissions as much as 8.46 x 108 tons of CO2. The project objectives are: 41 • Study experience to date with building labeling and establish technical approaches and incentive policies appropriate to each Partner. • Based on extensive data collection and analysis, and to the extent necessary and practical, begin development of practical benchmarking tools that can be used to monitor energy use in existing buildings and to establish performance targets for new buildings during the design phase, appropriately linked to building codes. • Establish continuous monitoring of energy performance as an accepted best practice in the management of large public buildings. • Set up the energy labeling method and procedure suitable to each country and continue to revise and improve it based on experience. Each Partner should establish its own benchmarking tools, or continue to refine existing tools. • Demonstrate the power of voluntary market transformation approaches, such as formal recognition programs, in improving energy efficiency in buildings. • Continue to educate the building sector and the public about building energy labeling, for both new and existing buildings. • By achieving the objectives mentioned above, encourage continued innovation in energy- efficient building design and construction materials to help significantly decrease building energy consumption. A target for this effort might be to hold constant total energy use in buildings despite the rapid increase in construction and building floor space, and perhaps eventually achieve significant reductions in building energy use compared with that in 2000. Analysis of Barriers and Gaps Differing Policies and Management Systems for Building Energy Labeling At present, the six Partner countries are pursuing different strategies and programs to save energy in buildings, and approaches to building energy labeling—as well as the amount of program experience with labeling to date—also vary considerably. Future sharing of experience and results will be of benefit to all Partner countries, especially those like China with little previous experience with regulations or policies on building energy efficiency certification. Existing Standards of Building Design and Construction Quality Also Differ Due to the different climates and building styles for both residential and non-residential buildings, among Partner countries and even within a Partner, the technical requirements for energy-efficient envelopes, HVAC systems, renewable energy and building controls should not necessarily be the same. Every country also has its own approaches to checking and verifying compliance with energy-efficient requirements, at the design and construction stages. A Lack of Comparable Methods for Energy Efficiency Labeling Some Partners have not yet established methods and procedures for building energy labeling, while even those that have adopted such methods are using different approaches and different methods of calculating and comparing performance. 42 Implementation Programs are not Consistent Differences in the orientation and emphasis in building energy labels among Partner countries are sometimes a response to differing political systems and economic conditions, leading to unique approaches to marketing the label, incentive policies, and so on. A Lack of Basic Data on Building Energy Efficiency There is a need for extensive data on building energy efficiency that can serve as the basis for meaningful benchmarking tools to compare building energy performance. Activities In order to address these obstacles and encourage the rapid development or advancement of building energy labeling, the following 15 activities are proposed for work in this area. Successfully implementing these can contribute to substantial improvements in building energy efficiency and reduction in greenhouse gas emissions. Policy and Management Systems There are three activities involving policy and management systems 1. Research on Building Energy Labeling Policy and Management The project will convene a meeting of Partner countries' experts, to summarize and discuss the status of building energy labeling, related incentive policies and management systems in the Partners. The meeting and subsequent work will identify good practices where possible and discuss the applicability of various incentive and management policies that can meet each Partner's situation and market barriers. These results will be provided in reports of the meeting and further analysis. Results • The report on the status of building energy labeling in each Partner country. • The report on successful incentive policies for building energy labeling. • Documentation of good practices and recommendations on management systems for building energy labeling. 2. Good Practices for Government Promotion of Building Energy Labeling Under a Market Economy. The project will carry out consultation among the project participants and key stakeholders in their countries, including building energy labeling management organization, technical labeling units and end-users, to identify successful practices and roles for government organizations to promote building energy labeling within a market economy. Based on preliminary and extensive analysis and discussion, the project will document programs that governments have implemented to promote building energy savings, such as ENERGY STAR and CASBEE. The evaluation will highlight the difference between Partner countries' actual situations and programs to promote the building energy labeling. A report will summarize the successful experiences, and make recommendations for programs and policies to promote the building energy labeling under market economy. 43 Results: • The report on the experiences that developed countries promote the building energy labeling in their market situations. • Recommendations on promoting building energy labeling rapidly and efficiently in market economies. 3. Incentive Policies for Voluntary Energy Efficiency Certification Voluntary energy efficiency certification programs have had notable successes, in the U.S. and other Partner countries. After reviewing the experiences of successful programs in a number of Partner countries, the project will study and recommend incentive policies on voluntary energy efficiency certification. Each participating Partner will determine the policies that are suitable to its specific situation. Where appropriate individual Partner countries will take steps to adopt or modify incentives to accelerate voluntary energy efficiency certification. Result: • Incentive policies for voluntary energy efficiency certification. Technical Standards and Methods There are six activities on the area, to establish the technical basis for building energy certification: • Collection and analysis of extensive building energy performance data. • Technical guidelines for building energy labeling. • Research on indices used for the building energy evaluation. • Methods for calculating building energy consumption. • Methods for measurement of building energy consumption. • Develop software to evaluate the building energy efficiency. Each Partner should start the collection and analysis of extensive building energy performance data to serve as the basis for development of energy efficiency certification methods and the development of energy labeling. This will include establishment of standard measurement and evaluation methods for building energy efficiency, mandatory or voluntary labeling options for both residential buildings and public buildings. The project will draw on study of the experiences of the developed countries and will identify approaches to integrate building energy efficiency into design and inspection systems. The project will develop software to be used for the calculation of building energy consumption. It will develop the technical materials to support energy labeling and regulation energy labeling in the market. Results: • Analysis of extensive building energy performance data of residential building. • Analysis of extensive building energy performance data of public building. 44 • Technical guidelines for building energy labeling for residential building. • Research on indices used for the evaluation of energy consumption in residential buildings. • Research on calculation methods of the building energy consumption and related software for residential buildings. • Research on measurement methods for energy consumption in residential building. • Research and explore the software to evaluate the building energy consumption for residential buildings. • Technical guidelines for building energy labeling for public building. • Research the indices used for the evaluation energy consumption of public buildings. • Research on calculation methods for energy consumption public buildings and related software. • Research on measurement methods for energy consumption in public building. • Research and explore the software to evaluate the building energy consumption in public building. Implementation Plan for Building Energy Labeling There are four activities on implementation planning for building energy labeling. 1. Establish continuous monitoring of energy performance in the management of large public buildings. Establish continuous monitoring of energy performance as an accepted best practice in the management of large public buildings. Result: Measurement and analysis report on the energy efficiency in buildings for public building. 2. Pilot project on mandatory building energy labeling. Start a pilot project on building energy labeling based on the label design, procedures and roles of government organizations and the market developed in previous activities. Result: Mandatory building energy labeling results on the pilot project. 3. Pilot project on voluntary energy efficiency certification programs. Implement a pilot project to test voluntary marking authentication procedure, with separate certification marks for public building and the residential buildings, and to develop experience to support broader implementation. Result: Voluntary energy efficiency certification results on the pilot project. 45 4. Publicize the building energy labeling programs. To establish a 'Building Energy Efficiency Evaluation Committee' for each Partner, drawing on experts, and compile material to be used for the popularization and training for the relevant technical personnel and labeling unit. Results: Popularization material. Training workshops Building energy efficiency evaluation committee. The Exchange of Information of Building Energy Labeling There are two activities on exchange of information of building energy labeling. 1. Information exchange on building energy labeling. In order to promote the work of energy labeling, set up a network to share experiences, organize technical communication on a scheduled basis, organize experts from developed Partner countries who can give training to developing Partner countries, build up a Partnership "Building Energy Efficiency Evaluation Experts Committee." With the authorization of the PIC, a website for exchanging the information will be created. Result: Partnership Building Energy Efficiency Evaluation Experts Committee. Building energy labeling network for the Partnership. 2. Communication of experiences and improvement of tools for building energy labeling. The project will summarize the results on the pilot projects of the participant Partner countries, and improve individual tools based on experience shared under this project. Result Comparison and improvement of methods for the implementation, measurement and evaluation of building labeling programs for Partner countries. Organizations To oversee the implementation of the "Action Plan for Building Certification (Energy Rating/Labels)" and further activities, an organization is to be created, led by the relevant organizations for building energy efficiency certification of each Partner. This organization will include three separate parts: first, the leader group will take charge of the schedule and implementation of the activities in each country; second, the experts consultant system can give advice and suggestions to the activities and reports; third, the project office, take charge of the detailed work of the plan, contact and communicate with other organizations. 46 The functions are as follows: 1. The leader group: composed of the director of the relevant organizations for building energy efficiency certification in each country, will take charge of the overall management of the project, correspond with the PIC office and Partnership project office. 2. The experts consultant system: composed of the experts from each Partner familiar with the policy, technical, finance, society, and environmental situations and with experience in measurement of building energy consumption, and a wide range of the related knowledge, will present advice based on the highest level of each Partner's building energy-saving and experiences in the implementation of the international project. 3. The project office: composed of the research and measure organization or institute affiliated to the Ministry of construction will coordinate day-today implementation, establishment of standards and measurement of buildings. Budget and Schedule Budget Budget Activity (US$'000) 1 4.1.1 Research on building energy labeling policy and management. 46 2 4.1.2 Good practices for government promotion of building energy labeling in a market economy 35 3 4.1.3 Incentive policies for voluntary energy efficiency certification 40 4 4.2.1 Collection and analysis of extensive building energy performance data 80 5 4.2.2 Technical guidelines for building energy labeling 42 6 4.2.3 Research on indices used for the building energy evaluation 36 7 4.2.4 Methods for calculating building energy consumption 40 8 4.2.5 Methods for measurement of building energy consumption 50 9 4.2.6 Develop software to evaluate the building energy efficiency 80 10 4.3.1 Establish continuous monitoring of energy performance in the management of large public 125 buildings. 11 4.3.2 Pilot project on mandatory building energy labeling 56 12 4.3.3 Pilot project on voluntary energy efficiency certification programs 56 13 4.3.4 Publicize the building energy labeling 60 14 4.4.1 Information exchange on building energy labeling 60 15 4.4.2 Communication of experiences and improvement of tools for building energy labeling 100 Total 906 Schedule June 2006 – September Collect information and develop project plan 2006 September 2006 – Plan detailed activities and develop implementation the plan for December 2006 each country January 2007 – June Evaluate policy and management systems, carry out technical 2007 system research and stage achievement report 47 July 2007 – December Finish the policy and the management system, the technical system 2007 research; Design the pilot projects January 2008 – June Pilot projects on building energy labeling 2008 July 2008 – December Summarization and popularization 2008 January 2009 – June Establish the information exchange network and continue 2009 improving the tools for energy labeling 48 BATF PR-052006—Improvements to Existing Buildings Project number: APP BATF PR-052006 Date: 31 August 2006 Title of project: Existing Buildings Leading member & co-leading member: U.S. Participants: Australia, China, Japan, India Project Overseer: Mr. Gary McNeil Postal address (leading member): International Capacity Building Branch Climate Change Division (6205J) Phone: 202 343 9173 Office of Air and Radiation, USEPA Fax: +1 202 343 2342 Ariel Rios Building Email: firstname.lastname@example.com 1200 Pennsylvania Ave NW Washington, DC 20460 USA Financial Total cost of proposal (US$, by year): [to be determined based on continuing information discussion among BATF participants] Type of project: demonstration/pilot national policy, law, regulation appliance testing/labeling seminar/symposium training & technical assistance public/consumer information database/website survey, analysis, research others (Please specify) Project start date: 1 Nov 2006 Project end date: 2009 Project summary: The project would employ market transformation strategies to improve energy efficiency in commercial and residential buildings, based on the rationale that abundant opportunities exist to cost-effectively make such improvements by sharing experiences among Partner countries and implementing proven program approaches. There are three subprogram elements: Operations and Maintenance, with the goal of reducing energy use in participating commercial buildings by 10 to 15%, through no-cost/low-cost measures and cost-effective retrofits. Residential Buildings, with the goal of improving energy-efficiency through improved installation of HVAC equipment and through addressing other barriers to improved energy efficiency. Program Design, with the goal of incorporating building performance monitoring and recognition activities into government and business policies, programs, and building portfolio management practices. Signature of Project Overseer: Mr. Gary McNeil Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: 49 Goals and Objectives Establish continuous monitoring of energy performance as an accepted best practice in the management of large commercial buildings (also sometimes referred to as "public" buildings). Increase awareness of the value of low-cost/no-cost measures as cost-effective means to improving energy performance in commercial buildings. Demonstrate the power of voluntary market transformation approaches, such as formal recognition and education/outreach programs, in improving energy efficiency in commercial buildings. Demonstrate the value of portfolio management strategies to improve building energy efficiency in commercial buildings in both the public and private sectors. Accelerate the practice of cost-effective energy-efficiency retrofits based on life-cycle cost analysis using a whole-building energy performance approach. Improve the energy efficiency of residential buildings through improved installation of HVAC equipment and through addressing other barriers. Promote well-designed programs and activities that incorporate elements such as building energy performance monitoring to improve efficiency of commercial and residential buildings. Performance Indicators To be determined. This project responds to the priorities of the PIC by embodying the following section from the Partnership Vision Statement: "The partnership will collaborate to promote and create an enabling environment for the development, diffusion, deployment and transfer of existing and emerging cost- effective, cleaner technologies and practices, through concrete and substantial cooperation so as to achieve practical results (italics added)." This project responds to the Action Plan Guidelines: "Each Task Force is expected to build on the wide range of actions already in place in Partner countries through national programs and other international cooperative arrangements and, where appropriate, seek to leverage existing initiatives to ensure maximum return on resources." "The Action Plans should identify, and promote ways and means to deploy, the best of current commercially viable technologies and practices, as well as the uptake of emerging cleaner and more efficient technologies." The project responds to the following objectives from the Work Plan: "Promote best practice and demonstrate technologies and building design principles to increase energy efficiency in building materials and in new and existing buildings." 50 "Support the integration of appropriate mechanisms to increase the uptake of energy- efficient buildings and appliances into broader national efforts that support sustainable development, increase energy security and reduce environmental impacts." "Systematically identify and respond to the range of barriers that limit the implementation of end-use energy efficiency practices and technologies." Background Based on the U.S. experience, and limited field research conducted by EPA in China and India: • Substantial opportunities exist to improve the energy performance of buildings through improvements in building operation and maintenance (O & M). There are also untapped opportunities for cost-effective retrofits to improve energy performance. • In general, even many of the best-managed buildings do not collect and analyze energy use data and therefore are not prepared to effectively manage building energy performance. More effective management is the key to both improved O & M and implementation of retrofits when appropriate. • There is a very high interest in training in building energy management. • Many buildings are relatively new, and their owners and managers are typically reluctant to implement retrofits, because they are unwilling to replace functioning equipment. Consequently, in these buildings there is a high level of interest in low- cost and no-cost measures to improve energy performance. • Building control systems are often not fully operational because of equipment and training problems. Improvements in control system operations can often improve efficiency quickly at low cost. • A building energy services (ESCO) sector is not well established in China and India, which means that buildings typically must rely on in-house staff to improve energy performance. This creates an opportunity for training programs, and to strengthen the role of established energy service providers such as engineering firms and suppliers of control systems and HVAC equipment. • Building owners and managers are eager to be formally recognized for achievements in energy efficiency. • There is a general lack of experience with voluntary market transformation programs and portfolio-wide approaches to building energy management, which have been effective in the United States. • The green buildings movement is increasingly influencing the design of new buildings in China and India, and offers an opportunity to promote energy efficiency. Energy efficiency is not always understood as an essential element of green building performance that delivers continuous cost savings and prevents pollution over the lifetime of the building. It is also not recognized that achieving these important benefits requires sustained long-term attention to building maintenance and operations. 51 • Installation practices are critical to achieving the potential savings from high- efficiency residential HVAC equipment. In some Partner countries, there are not clear guidelines for high-quality installation and technician training, and consequently these savings are not realized. • Well-designed and well-managed government-sponsored voluntary programs can be powerful tools for promoting energy efficiency, environmental improvement and economic growth. Methodology • Share best practices such as recognition and technical assistance programs, and education and outreach. • Demonstrate the value of data collection, data analysis, and monitoring energy performance in promoting no-cost/low-cost improvements and cost-effective retrofits in buildings. Work with stakeholders such as building owners, property management firms, architecture and engineering firms, equipment manufacturers, energy services providers, utilities, associations, and local/regional/national governments. Elements to include: – Training. – Tools. – Technical assistance. – Case studies to profile energy efficiency practices and technologies. • Train building managers in data collection and monitoring, to ensure that energy- efficient designs translate into energy-efficient performance. • Work with high-profile green buildings to document energy savings and demonstrate the environmental and financial benefits of monitoring and improving energy performance during the operating life of the buildings. Operations and Maintenance A building's energy use is significantly determined by O & M practices. No-cost and low- cost measures can quickly reduce building energy use by 10–15%, and reduce operating costs and greenhouse gas emissions without compromising tenant comfort or services. With the goal of increasing awareness of the value of no-cost/low-cost measures as cost- effective means to improve energy performance, the following activities are proposed: • Train owners and managers of 500 buildings. • Train 200 government officials. • Prepare 20 case studies of no-cost/low-cost EE measures. • Best practices workshop for national, regional and local government officials to promote whole-building energy performance. 52 • Workshops in 15 major cities in China and India. Based on assessment of global best practices, and research in participating countries, develop outreach and technical assistance programs based on the barriers to cost-effective retrofits identified in each country. Residential Buildings • Identify barriers to increased energy efficiency in residential buildings (both single- and multi-family) and implement strategies to overcome those barriers. • The Consortium for Energy Efficiency in the United States estimates that a high- quality installation of residential HVAC equipment can reduce energy consumption by as much as 35% and peak demand by as much as 25%. The United States is developing a set of consistent guidelines to define a standard set of practices for HVAC contractors. Establishment of an installation specification would enable training and certification of contractors, better-quality installations, and significant energy savings. • Depending on climate, adding insulation to roofs and attics of small residential buildings and sealing cracks to reduce air leakage may be a more cost-effective way to improve energy efficiency in residential buildings. Replacing single-pane windows with insulated glass with low-E coatings may also be a cost-effective measure. • Evaluate and share current practices in HVAC installation across Partner countries at initial workshop. Time and location to be determined. • Review standards and certification that may exist across different Partner countries. • Determine extent of need to develop installation specifications, and how they could be the same or different in the participating Partner countries. • Develop training programs. • Develop specifications. Program Design. The United States has successfully implemented a range of programs to promote higher energy efficiency in existing buildings. A combination of policies is needed for market transformation: • Technology development. • Regulatory programs. • Voluntary programs. Effective coordination across levels of government can strengthen implementation. Simple messages, education, outreach and training are very important. 53 The sub-project would work with governments, businesses, and other organizations to incorporate building performance monitoring, improvement and recognition activities into policies, programs, and building portfolio management practices. For example, this might be accomplished through a "building tune-up" approach that would assess the potential for upgrades, and support and assist building owners who wish to undertake upgrades. This sub-project could begin by convening a workshop in 2007 to share best practices and determine country interests and needs. Retrofit of Existing Building Chillers • Work with industry experts to document and demonstrate the energy, environmental, and cost advantages to new technologies for buildings, specifically the advances made in building chillers. • New model chillers offer potential for significant energy savings by operating 35% more efficiently than older models, providing increased reliability, requiring less maintenance, having lower probability of system failures, and reduced refrigerant leakages. Co- benefits of increased efficiency include reduced air pollution from thermal energy generation, mainly coal, oil, and gas based. • The opportunity to replace chiller equipment in existing buildings supports other subprojects addressing whole building energy efficient design, operation, and maintenance. • Support market transition to more energy-efficient chillers through continued efforts to identify and address country- and sector-specific barriers to the transition (i.e., environmental and energy policy and regulations, building codes and standards, power supply infrastructure, competing investment options). • Identify and build on related actions that may be in place through national programs and other international cooperative arrangements and, where appropriate, seek to leverage existing initiatives to support project objectives through demonstration projects, data collection and reporting. • Develop case studies documenting energy, environmental, and cost advantages to building chiller replacements. • Based on research in participating countries, develop outreach and technical assistance programs based on the barriers to the uptake of more efficient chiller replacement equipment for existing buildings in each country. Milestones 2006–2007: Begin initial activities under sub-projects including stock-taking and data- collection activities. 2007–2008: Implementation of sub-projects including tool development, workshops, technical assistance, and training. 2009: Evaluation of project results. 54 Dissemination of Project Results To be determined. Assessment of Project • Participating buildings are achieving measurable results. • Governments have initiated policies and programs to advance energy efficiency improvements in the areas of project focus. • More specific expected results to be identified during project development. Participation and Management Management Leader: Mr. Gary McNeil, U.S. Environmental Protection Agency Participation To be determined based on participating Partner interest. Estimated Budget and Funding Sources To be determined Sub- 2006 Funding 2007 Funding 2008 Funding 2009 Funding 2010 Funding Project/Task 1. [Sub-project] Country 1: US$__K (cash, in- kind) Country 2: US$__K (cash, in- kind) etc. 2. [Sub-project] etc. 3. [Sub-project] 4. [Sub-project] 5. [Sub-project] etc. Project total Country 1: US$__K (cash, in- kind) Country 2: US$__K (cash, in- kind) etc. 55 BATF PR-062006—Building Codes Project number: APP BATF PR-062006 Date: 31 August 2006 Title of project: Role enhancement of Building Energy Codes Leading member & co-leading member: Lead: Korea; Co-Leads: U.S Participants: China, Japan, United States, Australia, India Project Overseer: Mr. Seung-Eon Lee, PhD, Building & Urban Research Department, Korea Institute of Construction Technology Phone: +82-31-9100-357 Postal address (leading member): 2311, Daehwa-Dong, ilsan-Gu, Fax: +82-31-9100-361 Goyang-Si, Gyeonggi-Do, 411-712, Republic of Korea Email: email@example.com Financial Total cost of proposal: US$5.1 million information Type of project: Demonstration/pilot national policy, law, regulation appliance testing/labeling Seminar/symposium training & technical assistance public/consumer information Database/website survey, analysis, research others (Please specify) Project start date: 1 Nov 2006 Project end date: 31 Oct 2011 Project summary: Building codes for energy conservation is the most basic and powerful measure of each country as the essence of each country's available technologies and policies. A good and successful code could be used for a reference that allows other countries to reduce an investment of time and money for developing and improving their own code. This project includes exchanging each Partner's code information, policy systems, evaluation and rating systems, and lessons learned acquired through implementation. This project covers technical matters as well as governance system of building code. Finally, this project should contribute to enhance international trades of building materials and systems also international cooperation of building related companies to develop new markets. Signature of Project Overseer: Seung-Eon Lee Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: Goals and Objectives The goal of this project is to enhance mutual understanding of each country's building energy code, with the ultimate objective to increase international trade among building industries as well as developing and improving each member country's own code. As a result of this project: 1) The Partner countries with well-organized codes have a chance to share their valuable experience with other Partner countries who are still seeking more advanced building energy codes and governance systems. 56 2) The Partner countries undergoing the development of more acceptable and stringent codes will reduce the time and expenditure for improving codes by using the experience and technical system of other Partner countries with well-organized building codes. 3) By mutual understanding of other Partner countrie's codes and finding the common principles of code systems, an agreed vision for future work of harmonized standards will be established. 4) Harmonizing of underlining technical evaluation and rating provisions will foster the development of consistent codes that are robust and that have high levels of compliance from the manufacturer supplier and building construction industries. Performance Indicators 1) Publishing "The Comparison of Building Energy Code between APP Countries" 2) Publishing "The Future Role of Building Energy Code for National Energy Conservation" 3) Publishing (1+2) "A strategic vision for international cooperation on building energy codes" 4) Visibility and detailed plans to implement or improve window labeling and certification programs leading to more robust and compliant building codes The building codes as outlined in this project respond to the priorities set by the PIC by allowing for collaboration to "create an enabling environment for the development, diffusion, deployment and transfer of existing and new practices" in the form of the building codes, as described by the Vision Statement. In addition, by evaluating the appropriateness of an existing test procedure, this project follows section 3.1 of the Action Plan Guidelines that expects each Task Force to "build on a wide range of actions already in place in partner countries" and to "leverage existing initiatives to maximize return on resources." Lastly, this project responds to the Work Plan objectives by using "cooperative mechanisms to support further uptake of increasingly more energy-efficient appliances" and attempting to "identify and respond to a potentially significant barrier that would limit the implementation of end-use energy efficiency practices and technologies." The Partners will demonstrate technologies, enhance and exchange information relating to energy efficiency codes, share experiences and policies on best practices with regard to standards and codes, as well as labeling schemes for buildings, building materials and appliances. Background Most Partner countries have their own building codes, standards, and labeling (mandatory and/or voluntary) schemes for building energy conservation. And building code for energy conservation is the most basic and powerful measure of the essence of each Partner countrie's available technologies and policies. In the majority of cases, these building codes and performance levels required are different according to the circumstances of each Partner, resulting in trade barriers for companies to make inroads into the foreign markets. 57 A good and successful code could be used for a reference that allows other Partner countries to reduce their investment of time and money for developing and improving their own code. This project includes exchanging each Partner country's code information, policy systems, evaluation and rating systems and lessons learned. It could also cover technical matters as well as governance systems of building codes. Finally, this project should contribute to enhance international trade of building materials and systems also international cooperation of building companies to develop new markets in Partnership regions. In addition, for Partner countries looking to develop or improve their codes and standards or labeling program, this project will reduce the burden of code making, which needs intensive endeavors in terms of cost, time, and technical expertise to do properly. They could refer to codes developed by another Partner and evaluate them to determine which is appropriate for their country's circumstances and market situation. This project will specifically address a critical area within the building code and building construction arena. Windows are the weakest, or most energy-intensive, component of the building thermal envelope. As a result there is an enormous opportunity for cost-effective energy and carbon reduction with the introduction of new technologies. For example, the development and significant penetration of Low E windows (residential > 50% and commercial > 25%) in the U.S. economy has resulted in over US$30 billion in energy savings. With this mature market, the manufacturing cost of Low E glass has dropped to about US$0.50 to US$0.25 per square foot. To achieve this significant penetration, an effective window rating, labeling and certification program has been critical and has resulted in code adoption for more efficient window products in both heating- and cooling-dominated climates. By establishing and improving window labeling and certification programs cohesively among Partner countries, the process of developing improved window ratings can be accomplished more efficiently and with reduced cost for all Partner countries. The effective implementation of more stringent window codes in all Partner countries will lead to greater manufacturer investment in each country, promoting higher valued jobs, and will result in positive net benefits to consumers and national economies. Methodology For the comparison of building energy code between Partner countries: • Gather information on existing codes or efforts to develop building energy codes, as well as any mandatory and voluntary programs already underway executed by government. • Establish working group and prepare survey sheet. • Gathering Partner report in given survey sheet which include the scope, target buildings, performance level required, implementation method (mandatory or voluntary and prescriptive or performance based etc.) of building energy codes and general circumstances of each country (statistics related to building sector; existing building stocks, the amount of new building construction, population etc.). 58 • Evaluate structures and level of existing codes of Partner countries. • Submit a full version of code (related building energy) in English for mutual understanding of other Partner's codes. • Compare required level of basic and main items(insulation level, air tightness, efficiency of building systems etc.). • If there is a need of new part or items for building energy codes, or existing codes are inadequate or should be improved, work with code experts to draft a new code contents via face-to-face meetings, conference calls, and e-mail in working groups. • Establish spreadsheet-based methodology to assess resulting benefits of building code execution which include: – National energy consumption reduction by code execution. – Estimated reduction of GHGs by building energy code strengthening. • Circulate a report "Building codes of APP countries" to Partner countries to review and amend it. • Use data collected to develop various performance levels for use by policy makers. For enhancing role of building energy code for national energy conservation: • To enhance future role of building energy code, share experiences, find the new methodologies and gather idea of middle & long term plans for member countries, finally this work will contribute to the reduction of national energy consumption as well as developing new technology and extending market capacity. • Analyze the relationship between the code enforcement and national energy consumption on long-term basis. • Find the new role of codes to enhance building environment performance, leading capacity of technology development and market extension etc. • Circulate a report "The Role of Building Energy Code for National Energy Conservation" to Partner countries to review and amend it. For establishing or improving Window Labeling and Certification Programs • Market information and analysis (Stage 1) • Determination of standard and procedures for rating (stage 2) • Implementation of the domestic rating procedure (stage 3) • Recognition of cross-certification and labels (stage 4) Project 1: The comparison of building energy codes between Partner countries 59 • Collect each Partner's report written in given survey sheet on the general status of building energy code including scope, target building (usage, scale etc.) • Submit a full version of code in English for improving mutual understanding between Partner countries. • Report on current national codes and programs of each Partner. • Report on code structure and main contents. • Report on implementation system (mandatory or recommendation). • Report on national circumstances regarding building energy consumption (weather, population, GDP, energy intensity, amount of building stock and new building and etc.). Project 2: The future role of building energy code for national energy conservation • Report on building energy consumption of each Partner. • Report long-term estimation of energy consumption in building sector. • Report possible scenarios to reduce energy consumption and GHGs by toughening or role enhancement of codes. • Draft a report. • Circulate to Partner countries for comments and to finalize. Project 3: For establishing or improving window labeling and certification programs • Market information and analysis (Stage 1) – Hold workshop establishing status of energy-efficient window potential and needs of the industry with tangible next steps to help grow the industry. – Gather information and analyze rating standards and operation documents (program documents) including available software tools for analyzing and calculating fenestration ratings. – Market survey of types of buildings, construction practice and fenestration systems – Survey and determination of market key players and survey the national and state level building codes with the other tasks of this project. – Gather information about the national and local infrastructure, such as testing facilities and equipment available for testing and, simulation laboratories. • Determination of standard and procedures for rating (Stage 2). – Workshop/Conference discuss the findings and analysis of the stage 1. 60 – Updating Simulation tools and databases to include all participating Partner countries. – Creating documentation for the use of simulation tools (simulation manuals) and testing laboratory equipment requirements, operations, quality control and designs. – Developing a quality control program and program documents. – Research co-ordination to develop the next generation windows and rating procedures. • Implementation of the domestic rating procedure (Stage 3) – Training, organizational development, etc. • Recognition of cross-certification and labels (Stage 4) – Procedure and/or label harmonization, improved window trade, code implementation, manufacturer investment in value added window production in domestic countries. 61 Milestones Sub-Project Year 1 Year 2 Year 3 Year 4 Year 5 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Organize working group for inquiry sheet Collect country report with inquiry sheet Evaluate country report and compare main items of building energy codes Submit full version of code in English Draft "Building codes of APP countries" Circulate and review a draft and amend Publish a final report with title "Building codes of APP countries" Submit long term plans and energy consumption data of each country Develop simplified estimation tools to estimate future energy consumption based on national statistic data Report long-term estimation of energy consumption using estimation tool Report basic principles and possible scenarios for role enhancement of national codes Circulate to member countries for comments and to finalize 62 Dissemination of Project Results Majority of interaction and dissemination will occur via email. A dedicated Partnership website may be established to facilitate posting of documents and comment on draft documents. Target audience is technical consultants, testing laboratories, government agencies, and other in Partner and (perhaps) other interested countries. Assessment of Project Project results include the essential information of Partner's codes and future effect of energy code by enhancing its role. Possible energy consumption and GHGs reduction rate will be presented by code's role reasonably strengthened. Participation and Management Management Leader: Mr. Seung-Eon Lee, Korea Institute of Construction Technology Participation Japan: Ms. Akiko Ito of Ministry of Land, Infrastructure and Transport; Mr. Hirokazu Ikezawa of Nikken Sekkei; Kiyoshi Sawaki of Agency for National Resources and Energy Australia: Mr. Michael Green , Tony Marker of DEH United States: Mr. Jean Boulin (*POC), Mr. Richard Karney and Mr. Marc LaFrance of U.S. DOE/Building Technologies; Ms. Jean Lupinacci of U.S. EPA/Energy Star; Mr. Joe Huang of LBNL; Mr. Ken Mentzer of NAIMA (Insulation Mfrs. Assoc.); Mr. Bipin Shaw, NFRC China: TBD India: TBD(will want to join for window) Estimated Budget and Funding Sources TBD 2007 2008 2009 20010 2011 Funding Funding Funding Funding Funding Total Sub-Project/Task (US$'000) (US$'000) ((US$'000)) (US$'000) (US$'000) (US$'000) 1. The Comparison of 600 600 200 200 200 1,800 Building Energy Code between Partner countries 2. The Future Role of 500 500 500 1,500 Building Energy Code for National Energy Conservation 3. Establishing or 300 300 400 400 400 1,800 improving Window Labeling and Certification Programs Project total 900 900 1,100 1,100 1,100 5,100 63 BATF PR-072006—High-Performance Buildings and Development Project number: APP BATF PR-072006 Date: 31 August 2006 Title of project: High Performance Buildings and Developments Leading member & co-leading member: Australia, Japan Participants: China, United States, India Project Overseer: Dr Michael Green, General Manager, Manufacturing Engineering and Construction Division, Department of Industry, Tourism and Resources Phone: +61 2 9236 6799 Postal address (leading member): Fax: +61 2 9237 5051 PO Box 9839 Email: firstname.lastname@example.com Canberra City 2601 Copy please to: email@example.com Financial Total cost of proposal: information To be determined Type of project: demonstration/pilot national policy, law, regulation appliance testing/labeling seminar/symposium training & technical assistance public/consumer information database/website survey, analysis, research others (please specify) Project start date: August 2006 Project end date: December 2010 Project summary: The project aims to increase the proportion of new buildings and developments that incorporate cost- effective measures that support the clean development and climate objectives of the Partnership. The project also aims to support the integration of efficient buildings and infrastructure into larger abatement projects (e.g. "zero net energy" precincts), identify promising areas for technical and market development to support wider uptake of advanced building design. A number of recent iconic projects demonstrate advanced building technologies and practices that can significantly improve building performance in areas like energy efficiency. However, high-performance buildings should not be iconic projects alone. Low-cost, sustainable and disaster-resistant building solutions are needed globally. Market-based strategies aimed at accelerating the take-up of these approaches must be able to draw on a verified base of relevant technical and economic information. The project will collect, and disseminate to member countries, verified technical and economic information in a common framework for use in building projects and policy initiatives. This would allow the development of an agreed methodology to assess the costs and benefits of alternative building designs in common framework. Each member country would then commit to supporting the construction of buildings or larger developments (e.g. precincts, suburbs, towns etc) that exemplify the clean development and climate objectives of the partnership. Consideration could be given to ways to recognize, through a system of awards for example, significant efforts toward the project goal in member countries. Signature of Project Overseer: Michael Green Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: 64 Goals and Objectives Objective Promote the construction of and identify existing high-performance buildings and developments for which information will be kept and maintained on the Partnership web portal. Create proven building designs for mass production and deployment, using existing technologies with proven energy reduction. Investigate building design options and issues for construction in disaster prone areas. Goals and Outcomes • To increase the number of high performance buildings to 25% of all large buildings being constructed. • The incorporation of advanced building methods and energy-efficient appliances into mass production housing projects is achieved. • Agreement reached on sharing of information and technologies to assist all member countries to achieve the clean development and climate objectives of the Partnership. • Development of common methodologies to assess, both economically and against Partnership clean development and climate objectives, the performance of alternative building designs. • Identify promising areas of building innovation that could cost-effectively deliver against the clean development and climate objectives of the Partnership. • Improved approaches to building in disaster-prone areas. Performance Indicators • Reduction in energy consumption and associated CO2 emissions (e.g., per square meter) due to the incorporation of improved building practices, building materials, equipment and ongoing management. • Establishment of a database of verified technical and economic information about high performance buildings and developments that is valued in Partner countries. • Agreement on a common evaluation methodology. • Improved disaster resistance in buildings—e.g., lower mortality and property losses. • Agreement on to ways to recognize, through a system of awards for example, significant efforts toward the project goal in member countries. Partner countries facilitate the collection and dissemination of a verified base of relevant technical and economic information. The accelerated take-up of identified technologies and practices will provide opportunities for energy savings with exemplar projects providing opportunities to cost and monitor real life application in each Partner. Adoption of technologies and techniques in mass-production developments can reduce ongoing energy costs and improve general living conditions by making affordable, efficient housing more widely available. The development of common methodologies, possibly involving notional 65 carbon prices, to facilitate the building industry assess the long term cost and benefit risks of alternative building technologies. Background A number of building and larger developments (e.g., precincts, suburbs, towns etc) have occurred recently where improvements in building techniques have meant that some buildings achieve significantly reduced energy consumption or other clean development and climate objectives. In a number of cases these techniques can be incorporated at no additional cost. The sharing of information and the commitment of Partner countries to the introduction of these measures will significantly reduce energy consumption and the associated emissions. As buildings and built environments have typical lifetimes of 50 years or more, investors will also benefit from agreed methodologies to assess the long term risks associated with various design options both economically and against Partnership objectives. Such methodologies could include how sensitive particular design alternatives are to future movements in prices (e.g., for energy, carbon emissions, water and waste, or for new technologies as they become produced in volume). Methodology After agreement is reached with participating Partner countries on providing information, an agreed format and matrix would be developed to try to match existing available data. Partner countries would nominate agencies that would provide data and details of high-performance buildings and developments as well as data on general consumption in an agreed format. This could include, but not be limited to, energy, water, waste, occupancy, operation, design, management or technologies. This will allow comparisons to be made both within Partner countries and across Partner countries. Details of high-performance buildings and advanced production and management practices will be collected and collated. The database of information will be accessible to members through the Partnership web portal. A common framework to integrate and assess alternative building designs in terms of their economic and clean development and climate outcomes will be agreed. Forums and conferences could be held to discuss and expand on the collected information culminating in Partners agreeing to take part in exemplar projects and continue to share information and developed technologies. 66 Sub-Project Major Tasks / Deliverables Information Sharing: • Partners agree to make available relevant information and data on high Share and Disseminate Data and performance buildings. Information on High Performance • Partners identify refinements or extensions to their current information Buildings & Developments and data that enhance their value to the project. These may include, but are not limited to, providing real-time data (e.g. on energy consumption), web cam or interactive features. • Agreement reached on protocols for sharing information including IP. • Common methodology to assess alternative building designs in terms of their economic and clean development and climate outcomes would be agreed. • Partners provide and share access to existing data and information on high performance buildings. • A database of high performance buildings including measures incorporated and outcomes achieved created. Options for dissemination considered including web access and web cast. • The verified information is made available to all participating Partner countries and forms the basis of future forums and seminars. Consideration given to developing Partner countries gaining access to new technologies to be incorporated into major urban expansion programs. Improve Take-Up of Existing • Survey technologies available and identify organizations and support Cost-Effective Technologies: programs. This could include assessment of how different potential Create Proven Building Designs for prices (e.g., for carbon emissions) might influence technology choices. Mass Production and Deployment • Design options and technologies considered against the needs of Using Existing Technologies particular Partner countries. • Partner countries use available information to create and promote designs suitable for their particular requirements. Low Net Energy Precincts: • Identify current developments and technologies in each Partner. Support the Integration of Efficient • Collect data on developments in policy covering larger abatement Buildings and Infrastructure into projects. Larger Abatement Projects (e.g., • Identification of relevant information on activities such as "embedded "Zero Net Energy" Precincts) generation" and "zero net energy." • Agreement on sharing of information and agreement to work together to research options identified. • Conferences to discuss and workshop options with exemplar projects identified and supported. New Technologies for • Identify and collate current research and outcomes. Sustainable Buildings: • Identify relevant information and organizations. This could include, but Investigate New and Emerging not be limited to: glazing and window treatments, embedded generation, Designs and Technologies for lighting, roofing, low-energy HVAC, DC lighting and appliances, Energy Efficient Buildings and computer interfaces, training and organizational innovation. Other Sustainability Objectives. • Agree to share information and research options identified. • Workshop findings and identify demonstration options such as exemplar and demonstration projects. Disaster-Resistant Designs and • Identify current developments and technologies in each Partner. Technologies: • Collect data on developments in regulations covering construction in Investigate and Develop Designs disaster prone areas. and Technologies that Can be • Identification of relevant information with agreement reached to share Applied to Buildings in Areas information and technologies. Subject to Natural Disasters Such • Agreement on sharing of information and agreement to work together to as Hurricanes, Tsunamis, research options identified. Earthquakes, etc. • Conferences to discuss and workshop options with exemplar projects identified and supported. Exemplar Projects: • Member countries agree to support the building of exemplar projects to Construction of exemplar and highlight cost effective measures that improve the performance of the demonstration projects building. • Exposure of the project at selected international conferences and other relevant forums. • Member countries continue to share information and promote high performance buildings. Recognition Framework: • Agreement on the recognition framework, including categories to be Recognition of Significant recognized. Achievements • Agreement on assessment process and form of recognition. • Commitment of resources from Partner countries to support the recognition framework and assessment process. 67 • Initial award process. • Ongoing implementation. Milestones There is a presumption that the three sub-projects would be developed in conjunction with each other and that certain stages such as membership nominations would be conducted concurrently. High-Performance Buildings June 2006 Draft work plan forwarded to participating Partner representatives. August 2006 Nominations for project team membership and supporting / verification organization for each supporting Partner received October 2006 Agreement reached on data to be supplied by each Partner and the template to be used. Commencement of process to develop common methodologies. December 2006 Examples of high-performance buildings with associated data provided by each Partner. March 2007 Data posted to the Partnership website and able to be accessed by all Partners. August 2007 Review of high-performance buildings and data including forums and conferences to examine particular buildings and the associated high performance measures. December 2008 Forum to further examine the nominated high-performance buildings. Agreed assessment methodology. December 2008 Policy adopted for high performance buildings and agreement reached on sharing of information. December 2010 Each Partner to support the building of an exemplar project to both test and promote high-performance buildings. Proven Building Designs for Mass Production July 2006 Nominations received and agreement reached on membership of sub project. September 2006 Agreement reached on information to be shared and template for sharing information. March 2007 Information provided and posted to the Partnership website for consideration by member countries. October 2007 Conference / Seminar to discuss technologies and building processes available. 68 December 2007 Agreement reached on protocols for sharing information and technologies. Agreement on developing pilot projects and green precincts using available technologies. Design of Buildings in Disaster Prone Areas July 2006 Nominations received and agreement reached on membership of sub- project. September 2006 Agreement reached on information to be shared and template for sharing information. March 2007 Information provided and posted to the Partnership website for consideration by Partner countries. October 2007 Conference/seminar to discuss technologies and building processes available. December 2007 Agreement reached on protocols for sharing information and technologies. Agreement on developing pilot projects and green precincts using available technologies. Dissemination of Project Results Data and information would be accessible on the Partnership website; forums and conferences would be held to discuss issues and gain agreement on future protocols. Ongoing collection of data and arranging conferences to continue upskilling of Partner building industry stakeholders. Assessment of Project Energy savings and associated greenhouse gas reduction can be measured using a variety of methods including Kw per sq m or CO2 per sq m. As an example, energy efficiency measures may reduce the sq m energy consumption and the associated CO2 emissions may be further reduced where energy is produced by the building, e.g. solar or thermal. Participation and Management Management Australia is the partner in developing the project proposal, with Michael Green of the Australian Department of Industry, Tourism and Resources the primary contact for developing the project proposal. Project leadership and management during project implementation remains to be agreed by the Buildings and Appliances Task Force. Participation All Partner countries will be asked to provide input to the project and will also be asked to nominate the agency that manages building energy efficiency and sustainability issues to act as a principal point of contact for verification and nomination. Estimated Budget and Funding Sources (To be determined.) 69 Sub-Project/Task Total Estimated Project 2007 2008 2009 2010 Funding Funding Funding Funding Funding 1.Information sharing US$600K 2. Improved take-up of existing US$400K cost-effective technologies 3. Low Net Energy Precincts US$400K 4. New Technologies for US$500K Sustainable Buildings 5. Disaster Resistant Designs and US$200K Technologies 6. Exemplar Projects US$500K 7. Recognition Framework US$750K Project TOTAL US$3 350K 70 BATF PR-082006—Financing and Contracting BATF PR-082006-Sub1—Utility Regulation and Incentives Project number: APP BATF PR-082006-sub1 Date: 31 August 2006 Title of project: Utility Regulation and Incentives Leading member & co-leading member: United States and Australia Participants: India, Japan (others to be determined) Project Overseer: Paul Schwengels, Manager, Technology Cooperation, International Capacity Building Branch, USEPA Postal address (leading member): International Capacity Building Branch Climate Change Division (6205J) Phone: +1 202 343 9310Fax: +1 202 343 2342 Office of Air and Radiation, USEPA Email: email@example.com Ariel Rios Building, Mail Code: 6207J 1200 Pennsylvania Ave NW Washington, DC 20460 USA Financial Total cost of proposal: information To be determined Type of project: demonstration/pilot national policy, law, regulation appliance testing/labeling seminar/symposium training & technical assistance public/consumer information database/website survey, analysis, research others (Please specify) Project start date: 1 Nov 2006 Project end date: Project summary: The project will: (1) identify and share successful models of innovative approaches for overcoming barriers to utility financing and implementation of energy efficiency programs; (2) work to understand each country's utility and regulatory systems to determine applicability of different innovative approaches; and (3) enable Partners to voluntarily identify and jointly implement activities to demonstrate or expand selected approaches to removing barriers to effective utility financing of energy efficiency programs. Signature of Project Overseer: Paul Schwengels Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: Objectives • Document successful approaches, in Partner countries and elsewhere, for enhancing the incentives of utilities to invest in effective end-use energy efficiency programs. 71 • Demonstrate the benefits of enhanced utility incentives for energy efficiency in selected Partner countries. • Increase the understanding of utility regulatory and other incentives, and level of implementation within the Partnership region. This project supports the wider objectives of the Buildings and Appliances Task Force by: • Ensuring that utility companies shift a greater fraction of their considerable financial and technical resources to financing and implementation of energy efficiency in buildings. • Expand the role of utilities as a delivery mechanism for energy-efficient appliances, equipment and services to residential and commercial customers. Background Experience in several Partner countries, and in a number of individual states within the United States, has demonstrated that electric and gas utilities have enormous opportunities to finance and deliver end-use energy technology and services to their customers—covering the vast majority of residential and commercial buildings in many countries. This experience has also shown that there are significant barriers to aggressive action by utilities in this area. Until utilities have financial incentives or regulatory imperatives to pursue improvements in energy efficiency (that lead to reduced sales while retaining commerciality) the adoption of efficiency measures will be severely inhibited. Potential Benefits of Utility Programs: In many countries, electric and natural gas utilities have been effective as direct providers of energy efficiency financing and technical advice to their customers. Some utilities assist large customers with major retrofits to their facilities, through utility energy service contracts. Many utilities also sponsor rebates and other programs to assist all types of customers with smaller energy efficiency purchases and improvements in their homes and businesses. Some of these utility programs specifically target reductions in peak electricity demand. The advantages of utility-sponsored demand side management programs (DSM) are: • Utilities can reduce energy consumption at a cost that is lower than the cost of creating new supply. • Utilities have regular, direct contact with energy consumers and can offer technical services and financing through monthly bills or other low cost loan mechanisms. • Utility regulation has been used as a means of raising funds, through surcharges or benefits charges, which can be dedicated to energy efficiency investments and managed by governments, third parties, or by the utilities themselves. • Utility-financed DSM can foster the development of financially sound energy management service providers. • Utility funds can be broadly applied and directed at whichever sector can most efficiently translate the dollars into energy savings (e.g., funds can be provided to consumers through rebates; funds can be given directly to manufacturers to buy down 72 the cost of more expensive efficient products; funds can be provided to retailers and then passed on to the consumer). The successful programs have been achieved as a result of government interventions that provide clear incentives or mandates targeted to overcome inherent barriers that have previously hindered such programs. Regulatory and Financial Barriers: One challenge in implementing DSM programs has been traditional utility regulatory and rate-setting processes that may not allow utilities to recover the revenue lost from reduced energy sales, or provide incentives to the utility's shareholders for energy savings achieved. Privately owned utilities historically have been in the business of selling energy. Their profitability was dependent on the number of units of electricity or gas they could sell. Rates have been established by a regulatory body primarily on the basis of ensuring adequate return on utility investment in generating capacity and operation. More recently, many governments have been moving toward deregulated energy markets encouraging competition among suppliers/generators and allowing the market to set prices. In either case, the prices are set outside of the utility's control and the revenues of the company are dependent on the volume of sales. Unless there is some intervention by government regulators, this provides a substantial disincentive to investments in energy efficiency. In addition to the financial incentives, traditional utilities may have institutional inertia that makes implementation of effective demand side measures difficult. It may take some time before an organization oriented to marketing and selling energy can shift its perspective to providing energy services through both supply of energy and reduction of demand in a cost- effective mix. Although utilities generally have many highly trained technical experts on their staffs, they may not have specific expertise in design, marketing, implementation and monitoring of demand side programs. Regulation and Incentives to Encourage Energy Efficiency: To overcome these barriers, some governments and regulatory bodies have developed a number of regulatory and incentive approaches including: • Revenue adjustments: These accounting procedures are designed to mitigate the dependent relationship between electric distribution energy sales and profits, sometimes known as the "throughput incentive." The adjustments shield the utility from the adverse impacts of reduced consumption by consumers as a result of the deployment of demand-side resources such as distributed generation, load management and energy efficiency. These adjustments allow for recovery of costs for demand side programs, plus profits equivalent to those that would have been received for equivalent energy sales. • Integrated resource planning: Some regulators require that utilities engage in integrated resource planning to evaluate and select demand and supply investments on an equal basis. • Mandated efficiency programs: Regulators in seven US states have adopted quantitative requirements ("Energy Efficiency Resource Standards" or EERS) as a component of utility or statewide energy resource plans. These standards require that utilities include in their resource plans a specified share of renewable or "demand- 73 side" resources (i.e., energy-efficiency, peak demand management, or demand- response). • Demand side bidding: In some cases, utilities have been required or encouraged to carry out competitive solicitations for demand side programs similar to the competitive bidding for energy supply. The utilities select demand side resources if they are offered at lower cost than available supply. • Public benefit funds: Some regulators require utilities to collect a surcharge on electricity or natural gas bills to finance 'public benefits' programs, primarily for end- use energy efficiency. These funds may be held by the utility and directed to demand side programs, or they may be managed by the government or a third party organization to support efficiency programs. In the United States alone, regulators in more than half the states have directed utilities to implement energy efficiency programs serving their customers, and/or have imposed public benefits surcharges. A number of utility programs and policies are being explored as part of the International Energy Agency (IEA) Program on Demand-Side Management, in which four Partner countries currently participate (Australia, Japan, Korea, the United States). This experience provides a basis for sharing of lessons learned and wider deployment of effective regulation and incentives. This in turn will lead to rapid implementation of utility financed energy efficiency programs that can significantly accelerate the penetration of energy-efficient appliances, technology and services that reduce energy consumption in the buildings sector. Methodology This project will compile experiences from Partner countries and identify innovative practices in utility regulation or incentives, DSM programs, and third-party energy efficiency programs relevant to utilities. It will not include broader issues of utility restructuring, competition, etc., except as those relate specifically to the question of utility incentives for investing in customer energy efficiency. The sub-project team will also identify needs for technical information and assistance in participating Partner countries where regulation of privately owned utilities is evolving. The report will provide a basis for discussions among the Partner countries on ways to cooperate in implementing regulatory or other strategies to improve utility incentives for energy efficiency investments. A focal point for this discussion will be a proposed workshop in mid-2007 or earlier, preferably tied to a utility conference in the Partnership region, but it can begin very soon and also continue via e-mail and a shared website. Where existing cooperative activities among Partners are identified, these can be incorporated into the ongoing work of the project and enhanced by participation of additional Partners where possible. These cooperative activities will be designed to encourage involvement by a range of stakeholders, including state regulatory bodies such as the Maharashtra Electricity Regulatory Commission (MERC) in India, and at the national level, for example, entities such as the State Electricity Regulatory Commission (SERC) of China. The team will propose new joint implementation activities based on utility circumstances in each participating Partner, and on priorities identified by the preliminary team report and subsequent discussion with technical experts. 74 Milestones 2007 Report compiling experiences and successful practices from Partner countries and other sources. Workshop to discuss and refine draft report, identify needs and design cooperative projects Year one report to include: options for improving utility incentives, consensus (where appropriate) on good practices, experience with joint activities, and recommended future work. 2008 Implement cooperative projects and document results—pilot development of locally adapted approaches in selected Partner countries. Draft handbook for design and implementation of effective utility regulation and incentives 2009 Complete handbook Carry out assessment of needs and potentials of selected Partner countries. Support widespread adoption of successfully demonstrated regulation and incentives in Partner countries. Dissemination of Results Dissemination of project results will be achieved through: • Cooperation with ongoing efforts such as the APEC Energy Efficiency Experts Group, the IEA Program on Demand Side Management, etc. • Workshops at least annually, where possible on the margins of utility related conferences in the region. • Provision of case studies and handbook through websites and industry groups. • Briefings on project results for senior officials in regulatory bodies and utility companies within the region. Assessment of the Project The project team will carry out assessment, with consultation of the IEA DSM Program and other experts in the region. Performance indicators are: • Agreement on good practices for regulation and incentive programs. • Successful completion and documentation of pilot programs in selected Partner countries. • Development of case studies, handbooks and other tools to support wider application of successful approaches. 75 • Adoption of policy approaches on a widespread basis in Partner countries. Participation and Management The United States will lead this project with support from Australia and in consultation with all other Partner countries. Other interested Partners are encouraged to participate actively. Estimated Budget and Funding Sources Estimated budget and funding to be determined based on discussion among BATF members. Sub- 2006 Funding 2007 Funding 2008 Funding 2009 Funding 2010 Funding Project/Task 1. [Sub-project] Country 1: US$__K (cash, in- kind) Country 2: US$__K (cash, in- kind) etc. 2. [Sub-project] etc. 3. [Sub-project] 4. [Sub-project] 5. [Sub-project] etc. Project total Country 1: US$__K (cash, in- kind) Country 2: US$__K (cash, in- kind) etc. 76 BATF PR-082006—Financing and Contracting for Energy Efficiency BATF PR-082006-Sub2—Enabling Mechanisms Project number: APP BATF PR-082006-sub2 Date: 31 August 2006 Title of project: Enabling Mechanisms Leading member & co-leading member: Australia and the United States Participants: to be determined Project Overseer: Gene McGlynn, Assistant Secretary, Department of Environment and Heritage, Australia Postal address (leading member): Phone: +61 2 6274 1773 GPO Box 787 Fax: Canberra ACT 2601 Email: firstname.lastname@example.com Australia Financial Total cost of proposal Information To be determined Type of project: demonstration/pilot national policy, law, regulation appliance testing/labeling seminar/symposium training & technical assistance public/consumer information database/website survey, analysis, research others Project start date: 1 Nov 2006 Project end date: [to be determined] Project summary: Overcoming barriers that inhibit the wider uptake of otherwise commercial energy efficiency actions can be significantly achieved through promoting key underlying "smart" technologies and working to more effectively allocate incentives and responsibilities for improved energy management. Such enabling mechanisms increase demand for energy-efficient buildings and appliances as well as providing innovative market approaches to achieving energy efficiency, greenhouse gas reductions and broader sustainability. This project focuses on two key enabling mechanisms: • Residential "smart systems" for improved information and load control (sub-project A); • Commercial building "green leases" to help overcome the tenant-landlord split incentive barrier to improved energy management (sub-project B) Signature of Project Overseer: Gene McGlynn Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: Sub-Project A—Smart Systems "Smart systems" are a key enabling technology that increases the knowledge, control and innovative energy efficiency options available to end users and utility system operators. This sub-project will focus on increasing the market take-up of residential smart systems by 77 working with utilities and industry experts to develop business case rationales and supporting tools to encourage their wider implementation. Objectives The objectives of the smart systems sub-project are to: • Demonstrate the benefits of residential response infrastructure options to enhancing the economic efficiency of utility investments in energy services. • Increase the market take-up of residential smart systems. The smart metering project supports the wider objectives of the Buildings and Appliances Task Force through: • Creating an enabling environment for the development, diffusion, deployment and transfer of innovative energy efficiency approaches to utility supply of electricity and other energy sources. • Supporting the integration of appropriate mechanisms to increase the uptake of energy-efficient buildings and appliances into broader national efforts that support sustainable development, increase energy security and reduce environmental impacts. • Systematically identifying and responding to the range of barriers that limit the implementation of end-use energy efficiency practices and technologies. Background A key enabling technology for overcoming institutional and information barriers to reducing energy use are "smart systems" and "smart metering." These technologies allow for more sophisticated exchanges of information between suppliers and end users of electricity (or other resources such as natural gas) as well as improved electricity system operation and reduction of costs. Smart systems are proven technologies that allow innovative offerings within the energy market (such as utility demand side management techniques of time reflective pricing or central load control and in home information displays). Smart systems also support market stakeholders in addressing the increasing demands on reliability; efficiency; environmental responsibility; value for money and customer service. In particular, in areas where electricity use is growing or in areas with high levels of new electrification, smart systems can assist in energy management options being identified and implemented more quickly and effectively, thereby "future proofing" these customers interests. Applications of smart systems technology to date have shown benefits or potential benefits for: • Increased network and supply security. • Facilitating deferral of infrastructure investment, largely through load shifting. • Avoiding outages during peak demand periods. 78 • Use and support of "smart" appliances through central load control and preprogramming, assisting to deliver reliable electricity supply and efficient network operation. • Reduction of "non-technical losses" that may be associated with tampering or theft. • Reduced utility operating costs and increased utility profits (for example through remote meter reading and quicker fault detection). • More accurate reflection of the value of distributed generation. • Reduction of barriers to more cost and time reflective retail prices and network tariffs. • Possible end-user financial savings through effective responses to time of use pricing. • Energy use reductions, with possible associated greenhouse gas emission reductions. • High levels of consumer acceptance and consumers becoming better informed on how to use their existing appliances efficiently. Implementation of smart systems has been completed or is under way in Italy, Sweden, Canada, and the United States. Other jurisdictions, including Australia and the European Union, are considering rollouts over the next several years. To maximize the potential benefits smart systems offer, electricity utilities need to be convinced of the business case for investment that is relevant to their operating environment. Methodology This sub-project will focus on facilitating the understanding of the benefits of smart systems within the residential sector by working with key industry partners to develop business case rationales for use by the utilities sector. Nationally tailored supporting tools will be developed, such as a standardized assessment framework, allowing utilities to more efficiently assess the various options available and the costs and benefits of adopting smart systems in certain market situations or as common business practice. The supporting tools will be widely distributed to encourage further take- up of smart systems within participating Partner countries. Key elements include: • Collaborating with government agencies and utilities to review international and participating country specific experience; secure a set of interested parties and contract relevant industry expertise as appropriate. • Identifying a common set of drivers for installing, maintaining and operating smart systems and associated policies by utilities. • Agreeing a delivery mechanism to communicate sub-project progress and success, including informing possible future government policy discussions. • Agreeing a monitoring, reporting and evaluation strategy for the sub-project. 79 • Working with industry partners to develop a standardized assessment framework and supporting tools for evaluating the costs and benefits of smart meters to utilities (including guidelines, methodologies, templates and calculation tools where appropriate) that covers industry: – A range of common situations where smart systems may be considered (e.g. established houses or new developments, including urban infill). – Available technical options. – Marketing and competitive advantage opportunities. – Links to responsive pricing and intelligent load control. – Administrative support arrangements. • Working with industry partners to test and refine the assessment framework. • Dissemination of the assessment framework more broadly to increase awareness of the opportunities for smart systems and encourage their widespread use and take-up by market stakeholders. Milestones 2007 Smart Systems Working Group formed and industry partnerships established. Completed strategy for sub-project delivery, monitoring and evaluation. Completed international review and common business drivers developed. 2008 Commence development with industry of standardized assessment framework and supporting tools. 2009 Completed draft standardized assessment framework and supporting tools. Completed testing and refining of standardized assessment framework and supporting tools. Dissemination and communication of s assessment framework and supporting tools. Dissemination of Project Results Dissemination of project results will be undertaken through: • Promotional mail outs to utilities highlighting the sub-project and tools availability. • National launches involving all relevant stakeholders—utilities, smart system providers, government officials and other relevant industry groups. • Provision of all tools developed in relevant government and industry websites. 80 • Promotion at relevant national and regional industry conferences—including where possible linking with other BAFT events. Assessment of Project The assessment of the sub-project will be led by the Smart Systems Working Group secretariat with the assistance of participating Partner countries. Performance Indicators: • Agreement of detailed sub-project implementation plan by the Smart Meter Working Group. • Agreement of a set of common drivers for promoting smart meters to utilities. • Development of a conceptual cost/benefit framework for use by electricity utilities that is adaptable to national circumstances. • Development of supporting tools to assist business case consideration of smart meters—including guidelines, methodology, templates and calculation tools where appropriate. • Promotion of the sub-projects framework and tools—including the number of events and attendance at events. • Ongoing monitoring and evaluation of industry take-up and satisfaction with tools developed with findings made available to participating countries (this will include quantification of number of tools used by the private sector over time and stakeholder surveys where appropriate). Participation and Management The management of this sub-project will be coordinated through development of a "Smart Systems Working Group" to be chaired and supported by the Australian Government. This Group will aim to involve key government officials and industry representatives from participating Partner countries. Estimated Budget and Funding Sources The Secretariat for the Smart Systems Working Group will be funded by the Australian Government. This secretariat will coordinate jointly funded activities with support from participating Partner countries. The Australian Government will fund the initial review of international experience. Participating Partner countries will contribute specific national experience through coordination of information or funding national studies to support the wider international review. The development of standardized assessment frameworks and supporting tools will be jointly funded equally by all participating Partner countries. National promotion activities, such as launch events, and any individual tailoring to specific national circumstances will be funded by the Partner concerned. 81 Sub-Project/Task 2006 Funding 2007 2008 2009 2010 Funding Funding Funding Funding Residential Smart Australia: US$1 million $200k $300k $400k $100k Systems (proposed funds only) Project TOTAL Country 2: US$__K (cash, in-kind) etc. etc. Sub-Project B—Green Leases This sub-project will help to overcome the tenant–landlord split incentive barrier to energy efficiency in commercial building operations through increasing the use of green lease schedules in participating Partner countries. Nationally tailored green lease schedules and supporting tools will be developed and promoted through government demonstration, industry champions and investment sector involvement. Objectives This sub-project assists to fulfill the objectives of the BAFT through providing an enabling mechanism to overcome market barriers, which will ultimately increase the uptake and effective management of energy-efficient buildings and appliances to assist with broader national efforts towards sustainable development. The objectives of the green leases sub-project are to: • Increase the efficient energy management of commercial building operations through providing transparent legal options to overcome the market failure of the tenant– landlord split incentive problem. • Increase the uptake of energy-efficient building designs and appliances in participating countries through stimulating additional market demand. Background Buildings designed to achieve high levels of efficiency often operate at far below their potential without effective management of performance, sometimes doubling the energy consumption and operating costs for the building. Under typical commercial building lease arrangements the tenant pays the building energy costs yet does not have control over equipment operation and cannot guarantee, or in some cases even measure, whether they are achieving the energy efficiency outcomes they desire or have contracted for. In contrast the owner has little incentive to properly maintain or upgrade plant and equipment or to strive to achieve high levels of building energy management performance. Typical green leases consist of an additional set of standard clauses to a "normal" building lease contract. Green lease schedules provide for mutual contractual lease obligations for tenants and owners to achieve energy efficiency targets (or potentially other environmental obligations, such as water efficiency). This ensures that buildings operate at agreed levels through regular monitoring and the ability to address issues as they arise. Green lease schedules promote uniformity, consistency and market acceptance while minimizing the need for legal advice on individual lease agreements relating to energy efficiency. Standard clauses often deal with: specifying the agreed performance of the building (for example through use of a national rating tool performance or standard metrics); agreed energy 82 management plans; metering and data elements; management committees; and dispute resolution clauses). In addition to standard legal clauses, national policies to implement green leases often also include facilitation tools, such as explanatory guidance notes, example energy management plans and specific fact sheets to facilitate market understanding. The increased use of green lease schedules provides a positive feedback loop for other infrastructure that supports energy efficiency, such as smart meters, energy service companies, energy-efficient appliances and energy-efficient building design. For example, green leases encourage the effective use of new advances in digital metering technology that pinpoint energy consumption and provide more useful energy management information. Green leases also encourage market demand for the use of energy service companies and energy performance contracting in providing support services for landlords and tenants. An essential element in the effectiveness of the green lease in the market place is to work with the finance and investment sectors to ensure stakeholders are well informed of the possible market transformation effects of the green lease and that they invest wisely for the future. This is especially relevant to long-term or "institutional" investors that often hold high levels of property or property trust investments, such as many superannuating funds. Methodology The sub-project will increase the uptake of commercial building green lease schedules and supporting tools in participating Partner countries through: • Developing nationally tailored green lease schedules and support tools for use in the public and private sectors. • Using key players to demonstrate to the market the practical benefits of green lease schedules through implementation in key government buildings, industry "champion" portfolios and completing investment sector impact analyses. • Encouraging the wider market adoption of green leases through active promotion and provision of green lease templates and key supporting tools. Critical elements of this project include: • Establishing a Green Lease Working Group, including key private sector stakeholders, to oversee sub-project activities and focus ongoing dialogue. • Reviewing international approaches to green lease schedules, including their common key elements, successful application examples and market operating contexts (e.g. relevant legal approaches). • Targeted consultation with key private sector stakeholders within participating Partner countries to determine the commercial building sector operating environment including identifying key factors to consider in development and promotion of green leases. • Drafting a "model" green lease schedule template to form the basis for later tailoring to Partner countries' national circumstances. 83 • Collaborating between participating Partner countries to draft tailored green lease schedules and supporting tools to national circumstances for use in both the public and private sectors (including translation to relevant languages and incorporation of specific legal advice). • Governments leading by example through demonstrating the use of green leases in key government buildings and promoting wider government adoption (driven by government property portfolio managers from participating Partner countries). • Private sector "champions" within the commercial buildings industry implementing and promoting green lease arrangements within their portfolios. • Working with the investment and finance sectors to raise awareness and create demand for green leases through performing and disseminating national level impact studies, highlighting the "future proofing" benefits of investing in property trusts which use green leases. Milestones 2007 Green Lease Working Group established, including key industry partners identified. International experience summarized. Consultation completed of participating Partner national circumstances and report circulated. 2008 International "model" green lease schedule template developed. Nationally tailored green lease schedules and supporting tools developed. 2009-2010 Demonstration within key government buildings. Demonstration within private sector champions portfolios. National level investment/finance sector impact studies completed and disseminated. Dissemination of project results A range of dissemination methods will be used for this sub-project, including: • International and Partner specific review reports widely disseminated through relevant government and industry partner websites. • Workshops/conferences to discuss and promote nationally tailored green leases and supporting tools. Where possible these workshops will coincide with other related workshops under the BAFT program, such as that proposed within the Existing Buildings project's workshops throughout India and China. 84 • Investment sector impact studies to be disseminated by private sector partners (e.g. through company websites and promotional speeches) and on relevant government websites. • Industry champions to promote wider private sector take-up through marketing and promotional speeches. Assessment of project Initial pre-project statistics will be collected as part of the international review exercise and report. The participating Partner countries will collect further individual national statistics annually, with central compilation, review and dissemination by the Green Lease Working Group secretariat, for the duration of the project. Thereafter statistical collection will be the responsibility of each individual Partner. Performance indicators for the sub-project may include: • International review report published. • Number of nationally tailored green lease schedules developed. • Number of government buildings to implement green lease schedules (above baseline levels). • Number of industry champions to implement green leases (above baseline levels). • Percentage of industry champion operations where green leases have been implemented (above baseline levels). • Lowered energy use in demonstration projects. • Number of promotional events for the green lease schedule and supporting tools. • Investment/finance impact study completed in each participating Partner. • Number of events promoting the investment/finance impact study. • Number of participants at promotional events. Participation and Management The management of this sub-project will be coordinated through a "Green Lease Working Group" to be chaired and supported by the Australian Government. This Group will aim to involve key government officials and industry representatives from participating Partner countries. Where possible the costs of sub-project participation will be managed by the individual Partner countries involved. However, where practical, cost-shared tasks will be managed by the Australian secretariat for the Working Group. The Secretariat will be funded by the Australian Government. Estimated Budget and Funding Sources Cost elements include: 85 • Secretariat costs (including website establishment and maintenance, statistical compilation. • International and participating country review costs. • Development of tailored GLS and supporting tools. • Investment sector impact studies per country. • Promotional activities. • Other—to be determined. Sub-Project/Task 2006 Funding 2007 2008 2009 2010 Funding Funding Funding Funding Green Leases Project total Australia: US $1 million (proposed funds only) Country 2: US$__K (cash, in-kind) 86 BATF PR-082006—Financing and Contracting for Energy Efficiency BATF PR-082006-Sub3—Commercial Financing Project number: APP BATF PR-082006-sub3 Date: 31 August 2006 Title of project: Commercial Financing Leading member & co-leading member: United States and Australia Participants: India, Japan (others to be determined) Project Overseer: Name, Title and Organization Cynthia Wilson, Senior Advisor, Policy and International Affairs, U.S. Department of Energy Postal address (leading member): US Department of Energy Phone: +1 202 586 6708 Policy and International Affairs, MS-60 Fax: +1 202 586 0013 1000 Independence Ave., SW Email: firstname.lastname@example.com Washington DC 20585 USA Financial Total cost of proposal: information To be determined Type of project: demonstration/pilot national policy, law, regulation appliance testing/labeling seminar/symposium training & technical assistance public/consumer information database/website survey, analysis, research others (Please specify) Project start date: 1 Nov 2006 Project end date: [to be determined] Project summary: The project will: • Identify and share successful models of innovative approaches for overcoming barriers to private financing of and contracting for energy efficiency programs; and • Enable Partner countries to voluntarily identify and jointly implement tasks to demonstrate or expand selected approaches to removing barriers to effective financing and contracting. Signature of Project Overseer: Cynthia Wilson Date: 25 August 2006 Signature of Task Force Chair: Hakdo Kim Date: 31 August 2006 Remark: Goals and objectives The overall goal is to facilitate increased levels of private investment in building energy efficiency projects in Partner countries. The project will (1) identify and share successful model approaches to remove barriers to private financing of and contracting for energy efficiency investment; and (2) enable member countries to voluntarily identify and implement joint projects to remove barriers to private energy efficiency investment and demonstrate or expand selected models. 87 Near-Term Performance Indicators • Completion of inventory of successful approaches to remove barriers to private energy efficiency financing and contracting, including assessments of effectiveness, as described in Section 7. • Individual country selection of models to apply within their economies or to share with other Partner countries. • Establishment of evaluation approaches to measure benefits of supported projects. • Initiation of joint projects by September 2007. Longer-Term Performance Indicators • Successful completion/documentation of joint projects. • Incremental change in private companies offering energy efficiency services, measured in number of companies and total sales. • Incremental change in private investment in energy efficiency in terms of number of investors and volume of equity investment. • Incremental change in number of private financial institutions lending to energy efficiency projects and volume of lending. • Reduction in GHG emissions attributed to the incremental change in private financing of building energy efficiency projects. The private financing and contracting project will systematically identify and respond to the barriers that limit the financing of end-use energy efficiency practices and technologies. It is designed to use cooperative mechanisms to increase the efficiency of buildings throughout each Partner. Such an increase will support sustainable development, increase energy security and reduce environmental impacts by removing financial barriers to cost-effective investment. Background Private financial markets are generally liquid in Partner countries. However, the volume of private capital made available for energy efficiency investments is far below the level required to fund all cost-effective projects and projects that have lower total costs than energy supply alternatives. A wealth of energy efficiency investment projects remain unimplemented, despite high financial rates of return, and payback periods which are 1–5 years (with many in the 1–2 year range) because of a number of regulatory, institutional and market barriers. Issues that frequently foreclose financing of building energy efficiency projects include: • Lack of information on the benefits of energy efficiency investments. • Uncertainty about the future prices of energy, the economy and policy changes. 88 • Small, often non replicable, projects, which limit the ability of traditional financing institutions to process loans, especially given the complexity of energy efficiency loan documentation. • The need to use structured finance (i.e. cash flow based financing), rather than traditional asset-based financing, a practice that is not fully developed in many financial institutions. One reason for this is that markets for risk or "contingent claims" are frequently immature. • Financially limited businesses, either the customer or the energy service provider, which do not have sufficient credit histories and/or assets to secure financing. The recent UNEP-World Bank Three Country Energy Efficiency Study supports the concept that financing and contracting mechanisms (also termed "project delivery mechanisms") must address these barriers and be designed in the context of local institutional structures. To that end, the proposed projects are intended to help to overcome barriers by working within the context of local institutions and cannot be fully designed until those institutions are engaged in the Partnership process. Sub-Project 1: Tools and Technical Capacity for Performance Contracting Fundamentally, energy efficiency financing is based on project cash flow, not on the value of physical property deployed in the project. This is a structured financing approach, where the "asset" is the positive cash flow resulting from the energy savings. Creating, measuring and securitizing the energy savings asset is a complex process, requiring (1) an ability to estimate energy savings, i.e., conduct a valid audit; (2) methods to measure whether energy savings have been realized, i.e., monitor and verify the savings; and (3) reliable and enforceable contracts, including performance contracts. Systematizing Audits, Monitoring and Verification. One of the most challenging aspects of energy efficiency financing is the need to (1) conduct a reliable audit to estimate the savings that can be financed and (2) measure and verify the energy savings to assure that the energy savings asset is indeed created. The audit creates the energy savings asset and accurate monitoring and verification determines the cash flow available to repay the financier of the investment. The cash flow is used to secure the loan when the project is funded by outside sources (e.g. banks, development agencies, etc.) or to gain management support for internally financed projects. This challenge is being addressed by the Efficiency Valuation Organization (EVO).6 EVO is developing an International Energy Efficiency Financing Protocol (IEEFP). APEC is funding early development of the IEEFP through two APEC countries (Thailand and Mexico), with plans to expand into other APEC economies. The IEEFP is designed to bridge the "disconnect" between traditional asset-based lending and the cash flow-based financing needed for energy efficiency projects. The IEEFP aims for a long-term "grass roots" solution that would ultimately become a blueprint for educating and training local financing institutions and their customers around the world on the special requirements and benefits of financing energy efficiency projects. 6 EVO is a respected global group of energy efficiency practitioners who have worked together to create the International Performance Measurement and Verification Protocol (IPMVP), a standardized method for measuring the performance of energy efficiency projects. EVO is now expanding to address additional aspects of energy efficiency, including financing and emissions benefits as well as water efficiency. 89 Expediting Performance Contracts. Performance contracts establish how much energy savings can be expected from an energy efficiency project and therefore provide an indication of how much cash will be saved by implementing the project. Performance contracts are a critical piece of the financing package for externally financed energy efficiency projects. Specialized energy service companies (ESCOs) or energy management companies (EMCOs) and owners and managers of buildings use performance contracts to identify energy-savings measures and technologies, commit to implement the energy-saving program, and assign risks. The requirement to include a performance contract along with the audit and monitoring and verification protocol cause energy efficiency financing contracts tend to be complex relative to other structured financing contracts. Unfortunately, this complexity is particularly challenging for many building energy efficiency projects because they tend to be small. Small projects often cannot bear the costs of complex contract negotiations and savings verification. Experience in Partner countries has taught that developing a sound performance contracting system requires extensive experience and appropriate institutions to manage the risks of these complex agreements. Pre-accreditation of ESCOs/EMCOs, development of standard contract documents, guides to contracting procedures, standard protocols for measurement and verification of savings, etc. help to ensure success. Identifying and promoting successful models of performance contracting can facilitate greater penetration of this approach in business and government building. In addition, increased harmonization of procedures, standards, and contract documents among Partner countries can encourage the growth of a robust regional market for energy services and performance contracting. Sub-project 2: Fostering Commercial Businesses to Finance and Deliver Energy Efficiency Products and Services Developing the businesses that have sufficient technical expertise and financial capability to deliver energy efficiency products and services is a challenge. High processing costs, credit risks (the lack of access to capital for providers or the lack of credit for the borrowers), and performance risks (uncertainty about the effectiveness of a technology or a contracting technique) are major barriers to realizing the benefits of energy efficiency. In addition, before investors and lenders agree to finance a project, they engage in a complex process to allocate and mitigate risks. Risk management can be cost ineffective and therefore difficult for building energy efficiency projects because they: (1) tend to be small; (2) often involve small and new companies with limited credit and performance histories; (3) propose using new technologies or new applications of technologies that also pose unknown performance risks; and (4) carry the risk that energy prices will decline, wiping out the estimated financial savings and the cash flow needed to service the debt and pay a return to the equity investors. Numerous techniques have been employed or suggested to over come these barriers, including: • Government leadership in energy performance contracting to help to create credit worthy energy service providers. • Revolving funds to overcome credit issues and reduce development risks. 90 • Incremental financing to reduce credit and performance. • Manufacturer and vendor financing to mitigate performance risk. • Insurance and publicly funded risk guarantees to enable lenders and borrowers to reduce credit and performance risks. • Special purpose entities to reduce processing costs and increase market reach. Government Leadership in Energy Performance Contracting. In several Partner countries, much of the success of the ESCO (energy service company) model is attributable to the role that central, state, and local governments played in creating an initial market for the industry. In the early years, banks agreed to finance energy management projects in government buildings because of the government's credit quality, not because of the ESCO's credit capacity. In fact, newly formed ESCOs often had little or no credit when the programs began. Over time, as the ESCOs completed increasing numbers of projects, two important changes strengthened their ability to obtain credit to carry out further projects. First, the companies gained experience that permitted banks and customers to evaluate their performance. Second, the ESCOs accumulated capital that enabled them to finance (or at least participate in the financing of) new energy management projects. Alternative Business Models. In some situations, the ESCO/EMPC has proven to be a weak business model, with applicability only in highly repetitive circumstances (e.g., water pumping or lighting). Partners are encouraged to share alternative models that may provide greater success in increasing energy efficiency in Partner countries. Revolving Fund. One of the first risks energy efficiency project developers face is the risk of expending capital on projects that may never be financed and built. Revolving funds that underwrite project development costs reduce these risks. They have been successful in Partners and also in APEC countries like Thailand. The BATF will seek sponsors and candidate projects for a buildings energy efficiency revolving fund to be demonstrated in one or more Partner countries. Incremental Financing. In the initial stages of market development, private investment may be limited by the perceived risks of performance contracting, including investors' and lenders' concerns about the effectiveness of energy-saving technology, the accuracy of energy audits and provisions for monitoring and verifying savings. Therefore, the BATF will test models that rely on incremental financing and incremental increases in the sophistication of energy audits, monitoring and verification, as illustrated in Figure 1. Using this model, simple audits and monitoring and verification could be used to establish the Phase 1 program. Documented savings from the Phase 1 program would be used for equity in the financing of Phase 2. A similar approach in Phase 2 (audit, program, monitor, and verify) would create savings that could be used as equity in Phase 3. As projects become larger and more complex, the technical sophistication and complexity of energy audits and monitoring and verification methods would increase to reflect the increased uncertainties and risk, and thus the increased value of more accurate—but more costly—information. 91 Fig. 1. Incremental Financing Cost of Energy Efficiency Reinvest Phase 3: Longer Payback (e.g., HVAC systems, Savings Improvement building renovation) Phase 2: Mid-term Payback Reinvest (e.g., lighting retrofits) More Savings detailed audits, M&V Phase 1: Low-cost/No-Cost (e.g. info. campaign, O&M) Energy Savings Manufacturer and Vendor Financing. One of the key strategies of the Partnership process is to engage private businesses to help expedite the transfer of energy-efficient technology. Participating manufacturers can increase their sales by helping to mitigate risks and expedite financing. Manufacturers and vendors can directly offer performance guarantees, warrantees, and/or financing or help the customer arrange financing with lenders. The BATF will work with manufacturers and vendors to assess opportunities to offer or arrange such financing. In addition, BATF participants will engage export credit agencies to expand the capacity to finance technology transfer. Insurance and Partial Risk Guarantees Can Provide Targeted Risk Mitigation. Insurance and partial risk guarantees can play an important role in getting projects financed and implemented, by helping to manage the sources of technical, market, and financial risk, answering questions such as: • Will the technology work as expected, to produce the expected energy savings? • Will future energy prices, and thus avoided costs, be at or above projected levels? • And will the customer be able to repay the debt from those cost savings? Public agencies can share some of the project risk by offering insurance or guarantees to encourage energy efficiency projects, particularly projects in publicly owned or leased facilities. Private insurance companies, vendors, or manufacturers can also help solve the risk dilemma by either offering insurance products or offering warranties or guarantees on their equipment. BATF efforts can look at where insurance type products are needed, and how they can be developed and implemented by public or private sector organizations. Special purpose entities. One of the most successful models of energy efficiency financing is the creation of special purpose entities (SPEs) to expedite the processing of transactions. An SPE is a special financial vehicle, with dedicated funds and staff, to process loans. It is often a local or specialized entity, with the ability to reach out to new energy efficiency customers. 92 Many Partner countries have applied this model to energy efficiency financing, but more can be done to extend its reach. Partner countries can share experiences and synthesize new models to increase penetration of energy efficiency. Methodology This project will (1) identify successful commercial models for financing of and contracting for energy efficiency; and (2) apply these models as appropriate in interested Partner countries. The project recognizes the importance of implementing practical, on-the-ground activities to support the mission of the overall Partnership, as well as to take advantage of opportunities to build on existing and planned activities. All projects must be based on sound analysis and comprehensive consideration of options and experience. Project Strategy • Promote sustainable changes in financing and contracting practices and leverage financing resources by working closely with governments, companies, and financial institutions (commercial, multilateral, and bilateral). • Pursue solutions that lead to sustainable energy efficiency markets by limiting subsidies to those areas where subsidies are likely to be productive, such as to reduce high start-up transaction costs, buy down risks of entering new markets, or pilot new projects. For longer-term commitments, participating governments may want to consider projects where societal benefits and government policy justify these commitments. Approach • Compile information on and evaluate successful contracts, business models, and financing approaches from member countries and other international efforts (e.g. APEC) and share key findings and lessons learned among Partner countries. • Implement joint projects to remove barriers and apply successful models for energy efficiency financing and contracting in those Partner countries that choose to participate. • Document the outcomes of each task using qualitative and quantitative measures described in Section 7. • Participate in annual reviews of project progress; share results with the expert group and other task teams, and incorporate input from all interested Partner countries into future plans for the tasks. The candidate tasks will be drawn from successful models for financing and contracting from any of the following sources: utilities, commercial lenders, and public institutions. Two tasks are proposed. Additional tasks will be developed, based on this initial experience and on the identified needs and interests of Partner countries. The initial proposed tasks are: • Task 1: Simplifying and systematizing documentation of energy savings to for financing (U.S. lead); and • Task 2: Fostering businesses to deliver energy efficiency products and services. 93 Task 1: Simplifying and Systematizing Documentation of Energy Savings for Financing BATF activities in this area will compile experiences and results to identify effective approaches to audits, monitoring and verification. The sub-tasks will include: 1) Survey ongoing and recent cooperation on audits, monitoring and verification, and performance contracting and determine the needs for tools and technical assistance in participating countries. For example, USAID, USEPA and the Renewable Energy and Energy Efficiency Partnership (REEEP) with partners in India support ongoing work on standardized audit methods and reporting formats for buildings in India. This activity can also draw on examples, documents, and tools available from other international efforts outside of the Partnership, such as the Efficiency Valuation Organization (EVO), with their existing International Performance Measurement and Verification Protocol (IPMVP), and work in progress on an International Energy Efficiency Financing Protocol (IEEFP). Partners could consider how to build on these initiatives to encourage further technical development and timely uptake across the region. Technical refinements of IPMVP and IEEFP could include multiple levels of detail and complexity (see the "incremental financing" model in Figure 1, above), as well as harmonization of these and other tools to support a Partnership regional market for energy efficiency financing. 2) Develop, implement, or enhance joint activities to improve information, technical capacity, and tools for effective performance contracting in selected Partner countries. The first priority for these activities will be on refinement and standardization of tools, procedures, and institutional capacity within the individual countries. Areas of focus will include: • Standardized energy audit procedures and formats. • Common templates to help reduce transaction costs for contracting, performance guarantees, and guides to contracting procedures. • Standard protocols for measurement and verification of savings. • Standard definitions of the types of risk in performance contracts and standard "templates" for allocating risk. It is important to adapt tools and procedures to local conditions, needs, and capacities to encourage practical implementation steps. Where appropriate, cooperation among Partner countries could look for opportunities to harmonize these performance contracting methods and tools across Partner countries, and to aim toward the highest international standards of practice. This will facilitate the international business of energy service contracting and help to increase the pool of technical experts and the effectiveness of performance contracting in all Partner countries. 3) Report annually on results of compiling, refining, and adapting program models and tools, as well as the results of joint activities implemented by the participating Partner countries. Task 2: Fostering Businesses to Deliver Energy Efficiency Products and Services BATF activities in this area will compile experiences and results to identify effective means to foster businesses to deliver energy efficiency products and services. This task will build on the findings of the recent UNEP-World Bank Three Country Energy Efficiency Study, which found that developing appropriate financing mechanisms for energy efficiency projects 94 is primarily an institutional issue. Partnership projects can also build on the experience of APEC and other international projects such as those sponsored by the Global Environment Facility (GEF). Project implementation will also be coordinated where appropriate with international finance institutions that can bring significant resources to development of commercial markets for energy efficiency financing. For example, the Asian Development Bank recently launched an Energy Efficiency Initiative (EEI) committed to expanding ADB's investments in energy efficiency in member countries to $1 Billion/year. Voluntary participation will assure that each Partner can match their part of the overall project to local conditions. 1) Survey the considerable experience among Partner countries on how to structure and promote ESCO programs, including development of: • Assessments of where ESCO/EMPC programs have been effective and where other business models may be more appropriate. • Accreditation programs for energy auditors and ESCOs. APEC is currently developing standard loan templates with input from local commercial lending institutions, as the long-term objective is to sell "seasoned" loans to commercial banks. These models can be deployed and refined in Partner countries' markets. Discussions and workshops with bankers, developers, owners, and ESCOs can provide examples of how risk can be allocated in the financing of energy-saving projects. 2) Meet with equipment suppliers to identify capacity to finance projects and conditions for expanding their financing activities. 3) Work with bilateral and multilateral funding institutions to identify where their programs might fund programs and projects to support private investment in building energy efficiency. 4) Identify Partner countries to test models that rely on incremental financing and incremental increases in the sophistication of energy audits, monitoring and verification, as discussed above and illustrated in Figure 1. 5) Report annually on results of compiling, refining, and adapting program models and tools, as well as the results of joint activities implemented by the participating Partner countries. 6) Identify interest in and sources of revolving funds, partial risk guarantees, and insurance programs to overcome the risks associated with lack of information and experience in markets that are just developing. The BATF will seek sponsors and candidate projects for a buildings energy efficiency fund to be demonstrated in one or more Partner countries. 7) Sponsor a workshop on the experiences with SPEs and the potential to modify and expand the models. Milestones 2006–07 Begin initial activities, including identification of successful models, information that can be shared, and joint demonstration activities. Prepare reports for dissemination on successful models and lessons learned. Contact vendors and financiers to identify how they might expand their activities. 95 2007-08 Implement jointly approved projects. 2009 Continue projects; review implementation of joint projects. Dissemination of Project Results Project results will be summarized in reports to be distributed to stakeholders within countries and posted on appropriate websites, as available. Assessment of Project The project results will be measured in terms of: • Incremental change in private companies offering energy efficiency services, measured in number of companies and total sales. • Incremental change in private investment in energy efficiency in terms of number of investors and volume of equity investment. • Incremental change in number of private financial institutions lending to energy efficiency projects and volume of lending. • Reduction in GHG emissions attributed to the incremental change in private financing of building energy efficiency projects. Data collection requirements and resources will be included in each task that is jointly implemented. Participation and Management Management The United States is the leader for this project. Partners who elect to participate in this project will manage their in-country efforts and may elect to manage Partnership tasks. Participation Participation in this project will be tailored to each Partner's situation; therefore, Partner participation in its tasks will be voluntary. Participating Partner countries will determine funding, based on the tasks selected and will seek funding from commercial lenders, vendors and manufacturers, bilateral financing agencies, and multilateral development banks and agencies. Estimated Budget and Funding Sources To be determined, pending discussions of interest with Partner countries, interested companies, multilateral and bilateral funding institutions. To be determined. 96 Appendix B: BATF Members and Observers Buildings and Appliances Task Force Prefix First Name Last Name Organization Australia Mr. Bryan Douglas AEEMA Mr. Paul Edwards Bovis Lend Lease Dr. Michael Green Australian Government, Industry Tourism Resources Mr. Mark Lister Szencorp Mr. Gene McGlynn Department of the Environment and Heritage Ms. Cathy Zoi Bayard Group China Mr. Jianhong Cheng China National Institute of Standardization Ms. Huo Dufang Cheaa Mr. Liang Junqiang Energy Efficiency Office Ministry of Construction Mr. Lin Lan Kelon Mr. Tiesheng Yang National Development and Reform Commission India Mr. Rajesh Kumar Sethi Ministry of Environment and Forests Japan Mr. Hirokazu Ikezawa Nikken Sekkei Mr. Makoto Kato Ministry of Environment, Japan Japan Electronics & Information Technology Industries Mr. Tsukasa Kimura Associates Mr. Kiyoshi Saito Japan Electrical Manufacturers' Association Ms. Akiko Ito Ministry of Land, Infrastructure and Transport Dr. Narito Shibaike Panasonic Mr. Kunihiko Shimada Ministry of the Environment Mr. Keitaro Kimura Ministry of Economy, Trade and Industry Korea Mr. Sang Joo Baek Korea Energy Management Corporation Mr. Seong Wook Cho Ministry of Commerce, Industry & Energy Dr. Jun Young Choi Korea Testing Laboratory Dr. Hak Do Kim Ministry of Commerce, Industry & Energy Mr. In Soo Kim Korea Energy Management Corporation Dr. Nam Kyun Kim Korea Electrotechnology Research Institute Dr. Seung Eun Lee Korea Institute of Construction Technology United States Mr. William Breed Agency for International Development Ms. Kateri Callahan Alliance to Save Energy Mr. Robert Dixon Siemens Building Technologies Inc. Ms. Kathleen Hogan Environmental Protection Agency Ms. Lisa Jacobson Business Council for Sustainable Energy Mr. Joseph McGuire Association of Home Appliance Manufacturers Mr. Joe Maheady US Green Building Council Mr. Kenneth Mentzer North American Insulation Manufacturers Association Mr. Edwin Pinero Office of the Federal Environmental Executive Mr. Mark Ginsberg Department of Energy Mr. Gary Stanley Department of Commerce 97 Appendix C: Buildings and Appliance Data The graphs in this appendix provide an analytical snapshot of energy consumption by buildings and appliances across the Partner countries, along with factors that affect future energy demand growth and opportunities to save energy. The data in some cases may be imprecise or not fully consistent among Partner countries. While Task Force members will continue to refine these data and estimates, the graphs can still offer a useful overview of similarities, differences, and trends among Partner countries, as a basis for identifying program opportunities and setting priorities. Energy Use in Buildings Within the buildings sector, the relevant importance of residential and commercial buildings energy use (including public buildings) ranges significantly among the Partner countries. The residential share of primary energy ranges from under 50% to over 80%. Residential and Commercial Shares of Buildings Sector Primary Energy Consumption 100% 80% 60% Residential 40% Commercial 20% 0% ia a n na S ea di pa al U hi or In tr Ja C us K A Source: IEA 2003 Energy Balances <http://www.iea.org/Textbase/stats/index.asp>. Data for commercial includes 'public services,' which may include some non-buildings energy such as municipal water pumping and street lighting. Also, the category of 'combustibles, renewables, and waste' is excluded, since these include significant amounts of non-commercial energy, especially in China and India, which are difficult to estimate. The residential share of all electricity use in buildings ranges from 32% to 76% among the Partner countries. 98 Residential and Commercial Shares of Buildings Sector Electricity Consumption 100% 80% 60% Commercial 40% Residential 20% 0% ia a n na S ea di pa al U hi or In tr Ja C us K A 2003 Energy Balances<http://www.iea.org/Textbase/stats/index.asp>. Data for commercial includes 'public service,' which may include some non-buildings energy such as municipal water pumping and street lighting. Building Types and Occupancies Residential Buildings - Single-Family and Multifamily 100% 80% Single Family 60% Large Multifamily 40% Small Multifamily 20% 0% Australia China India Japan Korea US (2000) Sources: 2004 DOE Buildings Energy Data Book <http://smartenergy.arch.uiuc.edu/pdf/clearinghouse/BuildingsEnergyDatabook-2004.pdf>. For the U.S., small MF is up to 4 units, large MF is 5+ units, and SF includes mobile homes (6% of total). 2003 Housing and Land Survey of Japan <http://www.stat.go.jp/data/jyutaku/2003/zuhyou/q1100000.xls> 99 U.S. Commercial Building Floorspace by Occupancy Type 1.0% 10.0% 18.0% Office 2.0% Warehouse 3.0% Retail 4.0% Education Public Assembly 5.0% Lodging 16.0% Service 7.0% Health Care Food Service 7.0% Public Order/Safety Food Sales 15.0% Vacant & Other 13.0% Source: 2004 DOE Buildings Energy Data Book <http://smartenergy.arch.uiuc.edu/pdf/clearinghouse/BuildingsEnergyDatabook-2004.pdf>. The residential percent shares are for buildings, however the commercial shares are by floor space. Primary Energy Types Used by Buildings The mix of energy types used in buildings varies dramatically among the Partner countries, from Australia where 60% of primary energy is electricity, to India with only about 20% electricity but 60% direct combustion of oil. Buildings in China use coal directly for about 40% of buildings sector primary energy, where almost no coal is used directly in U.S. or Japanese buildings. Proportion of Primary Fuel Types Consumed By Buildings 100.0% 80.0% Other Elec 60.0% Gas 40.0% Oil 20.0% Coal 0.0% L a US a lia n a in TA di re pa tra Ch In Ko Ja TO s Au P AP Source: APEC Energy Database <http://www.ieej.or.jp/egeda/database/database-top.html>, and IEA 2003 Energy Statistics <http://www.iea.org/Textbase/stats/index.asp]>. Also, the category of 'combustibles, renewables, and waste' is excluded, since these include significant amounts of non-commercial energy, especially in China and India, which are difficult to estimate. 100 Efficiency/Intensity Per Unit Floor Space in Existing Buildings Source: Oil Crises & Climate Challenges- 30 Years of Energy Use in IEA Countries <http://www.iea.org/textbase/nppdf/free/2004/30years.pdf>. Building Construction Trends Preliminary data suggest that growth rates in the building stock in China are higher than other Partner countries (typically 1–2% per year). Annual Construction as a Percentage of Existing Floorspace 5.0% 4.0% 3.0% Residential 2.0% Commercial 1.0% 0.0% Australia China India Japan Korea (est.) US (2004) Source: 2004 China Statistical Yearbook <www.stats.gov.cn/tjsj/ndsj/2005/indexeh.htm>. Comparable data needed for Australia, India, Japan, and the United States. 101 Appliance Saturations Average appliance saturations vary by appliance type and also vary among Partner countries, as shown here.7 There is significant potential for further growth in appliances, especially in India and China (where saturations among rural households, especially, are much lower than for urban households as shown). APP Country Saturations for Selected Home Appliances Number of Units per Household 2.5 2.0 1.5 1.0 0.5 0.0 Australia China (Urban, India (2001) Japan (1999, Korea (2004) US (2001) (1998) 2004) 2002-2004) Refrigerator Air Conditioner (room, central) Clothes Washer TV Fan Personal Computer (at home) Source: Australian Residential Building Sector Greenhouse Gas Emissions 1990-2010. Final report 1999, NSSO (National Sample Survey Organization) March 2001: Consumption of some important commodities in India, "Survey on Electricity Consumption Characteristics of Home Appliances," KEPCO report 2004, EPA Trends in Household Consumption: "Kakei shouhi no doukou," 9 Elec Co's: "Sekiyu kagaku shimbun," Telecommunication Union (ITU) 2006: World Telecommunication Indicators 2005, Geneva: ITU, 2004 China Statistical Yearbook, and SDOE Energy Information Administration: "Residential Energy Consumption Survey 2001." 7 Note that for the United States, the numbers shown for air conditioners, clothes washers, fans, and PCs are based on the fraction of households with one or more of these appliances, rather than the total number of appliances divided by total number of households. Data for China and some other countries appear high, possibly because they include residential appliances outside of homes (e.g. clothes washers in shared laundry facilities or commercial laundries). 102 Standby Power Average standby power in homes (for consumer and office electronics, battery chargers, and displays or controls installed in white goods, small appliances, and other equipment) already uses about as much electricity as a refrigerator, in several industrial countries. Saturations of these devices continue to grow rapidly in both developing and industrial countries. Source: Adapted from 'Research Recommendations to Achieve Every Savings for Electronic Equipment 9 of 9 in Low Power Modes: A Summary of Previous Project Work and Identification of Future Opportunities,'<http://standby.lbl.gov>. 103 End-Uses of Energy The distribution of energy end-uses varies between residential and commercial buildings, as well as among Partner countries. Breakdown of Residential Primary Energy End-Uses (US) 1% 4% 5% 5% Space Heating 34% Lighting 5% Space Cooling Water Heating 8% Refrigeration Electronics Cooking Wet Clean (incl. laundry) 13% Computers 13% Other 12% Breakdown of Commercial Primary Energy End-Uses (US) 10% 16% 3% Space Heating Lighting 7% Space Cooling 2% Water Heating Refrigeration 7% Electronics 28% Cooking 7% Ventilation Computers 7% Other 13% Source: 2005 EIA Energy Data Book <http://buildingsdatabook.eere.energy.gov/>. Comparable data are needed for Australia, China, India, Japan, and Korea (even if specific end-use categories may differ). 104 Breakdown of Primary Residential Energy End-Uses (Korea) 2% 4% 12% 8% TV Refrigeration Kimchi Refrigerator 8% Washing Machine 3% Fan 25% Air-Conditioner Iron Computers 19% Rice Cooker Micro Oven 2% 6% 11% Vacuum Cleaner Source: 'Survey on Electricity Consumption Characteristics of Home Appliances,' KEPCO report, 12/2004. Energy Costs Average Residential Electricity Price per kWh in $U.S. (2003) 0.2 0.15 $US 0.1 0.05 0 Australia China India Japan Korea US (2005) Source: EIA International Electricity Prices and Fuel Costs <http://www.eia.doe.gov/emeu/international/electricityprice.html>. China data from LBNL China Energy Group. 105 Appendix D: Existing Policies and Programs The information summarized in this Appendix is designed to provide BATF members and other interested readers with a common frame of reference for comparing existing policies and programs across the Partner countries, and for considering additional initiatives or new approaches to strengthen or broaden existing programs. Energy efficiency programs and policies are grouped into the following categories: • Information, labeling, & certification. • Training & technical assistance. • Utility & government rebates and tax incentives. • Financing. • Utility regulatory incentives & industry voluntary targets. • Public sector leadership. • Mandatory measures. • Energy pricing & rate structure. • Technology development & demonstration. • Other. For each category, we include programs that apply to new and existing residential buildings, new and existing non-residential buildings, and appliances & equipment. Information, Labeling and Certification This category includes appliance labeling, building benchmarking, certification, and disclosure (to prospective buyers or tenants), along with public awareness campaigns. Australia The Department of Environment and Heritage (DEH) works in partnership with stakeholder groups to introduce programs that encourage market transformation by promoting highly efficient equipment or by identifying selected energy-efficient products through appliance labeling. The Australian Greenhouse Office (AGO) is currently working with its stakeholders to reduce standby power losses. For more information, visit: http://www.energyrating.gov.au/standby.html More information on appliance energy labeling is at: • Energy All-stars—www.energyallstars.gov.au • Energy Rating—www.energyrating.gov.au • Energy Star—www.energystar.gov.au 106 The Australian Window Association and Australian Glass Association are currently working with the National Fenestration Rating Council (NFRC) in the United States to establish a unified energy performance rating and labeling system for windows and glazing systems. The National Australian Built Environment Rating System (NABERS) is a performance- based rating system that measures the sustainability of existing buildings and promotes environmental improvement in the operation of Australian buildings using a set of key impact categories. For more information, visit: www.nabers.com.au Sustainable House Day (formally Solar House Day) allows people who are considering building or renovating a house to gain a first-hand insight into the style, comfort and economic benefits of real passive and active solar homes by touring homes of builders and designers around the country. For more information, visit: http://www.greenhouse.gov.au/buildings/solarhouseday.html China In 1998, the China Standard Certification Center (CSC, formerly Certification Center for Energy Conservation Products, or CECP) was established as a non-government organization under the National Development and Reform Commission (NDRC) with a mission of developing appliance energy rating and labels. CSC develops the energy testing and certification procedures for energy-saving, water-saving, and environmental-friendly products. CSC also conducts fundamental research on energy efficiency for policymaking and identifies ways to remove market barriers in order to promote energy-efficient, water- saving and environmentally friendly products. For more information, visit: http://www.cecp.org.cn/englishhtml/cecp.asp Efficient Lighting Initiative (ELI) Project: CSC is also involved as administrator of ELI, an international collaboration to support the use of high-quality energy-efficient lighting products globally through creating a self-sustaining global certification service for efficient, reliable lighting products. For more information, visit: http://www.cecp.org.cn/englishhtml/introduction.asp The China Green Lighting Promotion Project is a cooperative effort by the State Economic and Trade Commission (SETC), United Nations Development Program (UNDP), and the Global Environment Facility (GEF). For more information, visit: http://www.cecp.org.cn/englishhtml/introduction.asp The China Motor Systems Energy Conservation Program includes minimum energy efficiency standards for motors and a voluntary "green motor" labeling program for high- efficiency motors. For more information, visit: http://eetd.lbl.gov/ea/indpart/publications/lbnl_51052.pdf Leadership in Energy and Environmental Design (LEED) in China: Five Chinese buildings are certified by the LEED rating system and one building under development is registered for LEED (see the entry below, under United States). For more information, visit: http://www.usgbc.org/LEED/Project/CertifiedProjectList.aspx?CMSPageID=247&CategoryI D=19& and http://www.usgbc.org/LEED/Project/RegisteredProjectList.aspx The U.S.-based Alliance to Save Energy and the Energy Foundation, in cooperation with the China Ministry of Construction, is working to promote testing/simulation and labeling for 107 energy performance of window products, along with glass and window manufacturers in China. For more information, visit: http://www.ase.org/section/country/china/ India National Energy Labeling Program: A categorical label (1 to 5 stars) has been applied to frost-free refrigerators and fluorescent tube lights (first voluntary and then mandatory over time). For more information, visit: http://www.clasponline.org/listnews.php?no=413 The Government of India launched the "Ecomark" eco-labeling scheme in February 1991 for easy identification of environment-friendly products. For more information, visit: http://www.cpcb.nic.in/eco_criteria_elect.htm The Bureau of Indian Standards (BIS) covers product quality certification, consumer affairs, and development of technical standards. For more information, visit: http://www.bis.org.in/ Confederation of Indian Industries/Green Buildings Centre promotes the building of world class "Green Buildings." Several corporate buildings have been built to the United States Green Building Council's platinum and gold level LEED rating. For more information, visit: http://greenbusinesscentre.com/ National Campaign on Energy Conservation 2006: One focus is the Domestic Sector. For more information, visit: http://www.bee-india.nic.in/NCEC2006/NCEC06.htm Japan Labeling of Appliances under Japan Industrial Standard—Japan has mandatory energy labeling for air conditioners and voluntary labeling for several other product categories. For details see www.clasponline.org CASBEE is the Comprehensive Assessment System for Building Environmental Efficiency, a labeling system for building energy performance. For more information, visit: http://www.ibec.or.jp/CASBEE/english/index.htm The Housing Performance Indication Scheme offers a government-sponsored format for sellers to voluntarily disclose to buyers, at the time of sale, certain features of the house including energy efficiency. A summary of this program is on p. 49 at http://www.olis.oecd.org/olis/2001doc.nsf/43bb6130e5e86e5fc12569fa005d004c/af860e391b 8304eec1256bd7004fc927/$FILE/JT00128202.DOC The Top Runner Program identifies today's most efficient technologies in a given appliance and equipment category and sets a target date, in consultation with industry, for achieving this level of performance as the average of all new appliances sold. For more information, visit: http://www.enecho.meti.go.jp/english/toprunnner/program.pdf Republic of Korea Appliance efficiency standards and labels in Korea are summarized at the APEC-ESIS website. For more information, visit: http://www.apec- esis.org/countrysummary.php?country=USA and also www.clasponline.org The Ministry of Commerce, Industry, and Energy (MOCIE), in cooperation with the Korea Energy Management Corporation (KEMCO) sponsors the "High-efficiency Equipments 108 Certification Program," a voluntary program that designates models that significantly exceed minimum efficiency standards for 33 categories of products. For more information, visit: http://www.kemco.or.kr/english/sub03_energyefficiency00.asp The "e-Standby" program, jointly sponsored by MOCIE and KEMCO, provides a label endorsing low standby power products for 17 types of home and office electronics. More information is at http://www.kemco.or.kr/english/sub03_energyefficiency00.asp The "Energy-Saving Office Equipment & Home Electronics Program" has been implemented since 1 April, 1999 for the purpose of enhancing the introduction of energy-saving products with low standby power, in cooperation with the U.S. Energy Star program, based on Article 13 of the Rational Energy Utilization Act of Korea. Korea is developing a commercial building energy rating and benchmarking program, which is expected to be launched in 2007. An energy efficiency labeling program for residential buildings is being implemented; the purpose is to encourage the supply of low-energy residential buildings. Also, residential multi-family buildings with over 18 units are expected to adopt energy-saving equipment and appliances. The Public Campaign on Energy Efficiency and Conservation includes Energy Conservation Month and Energy Conservation Day. The Energy Conservation Exhibition (ENCONEX) promotes the latest energy conservation technologies and equipment. The Energy Conservation Convention is an event held annually in order to heighten public energy conservation awareness and to honor those who have made a significant contribution to the cause. United States U.S. appliance efficiency standards and labels are summarized, along with those of many other countries, at the APEC-ESIS website. For more information, visit: http://www.apec- esis.org/countrysummary.php?country=USA and also www.clasponline.org The Energy Star for Homes program provides voluntary home energy efficiency ratings for participating builders. For more information, visit: http://www.energystar.gov/index.cfm?c=new_homes.hm_index Energy Star Buildings is a voluntary partnership and recognition program for non-residential buildings, sponsored by USEPA. For more information, visit: http://www.energystar.gov/index.cfm?c=business.bus_index The LEED (Leadership for Energy and Environmental Design) rating scheme for new and existing buildings is sponsored by the U.S. Green Building Council. For more information, visit: http://www.usgbc.org/LEED A version of the LEED rating system is also being developed for homes. For more information, visit: http://www.usgbc.org/LEED 109 The North Carolina SystemVision program also provides guidelines and rating criteria for new home energy efficiency. For more information, visit: http://www.advancedenergy.org/buildings/programs/affordable_housing/index.html The Energy Policy Act of 2005 authorized a comprehensive national program to inform consumers the need to save energy, benefits to consumers and the national economy, and practical cost-effective measures (this program has not yet been funded). For more information, visit: http://energycommerce.house.gov/108/energy_pdfs_2.htm The Clean Energy–Environment State Partnership Program is a voluntary state–federal partnership that supports state efforts to increase the use of clean energy. For more information, visit: http://www.epa.gov/cleanenergy/pdf/gta/guide_action_full.pdf U.S. DOE maintains a database on high-performance energy-efficient buildings. For more information, visit: http://www.eere.energy.gov/buildings/highperformance/ U.S. DOE also sponsors the Zero Energy Homes program, with detailed energy performance data and case studies. For more information, visit: http://fsec.ucf.edu/Bldg/baihp/index.htm Training and Technical Assistance Programs in this category include building energy audits, design assistance, and professional training and certification on energy efficiency. Australia In 1998, the federal Department of Environment and Heritage signed a three-year partnership agreement with the Housing Industry of Australia, called PATHE. The aim of this partnership is to develop, demonstrate and promote technologies, design principles and practices to improve environmental resource management in the housing industry. For more information, visit: http://www.greensmart.com.au/ The Working Energy Resource Kit is designed to help local government develop best practice by providing simple and effective methods for improving greenhouse performance. For more information, visit: http://www.greenhouse.gov.au/lgmodules/wep/index.html The Association of Building Sustainability Assessors (ABSA) is running a series of training courses in building sustainability. The courses are suited to building and design practitioners looking for a comprehensive understanding of sustainability regulation and practical, cost- effective ways to meet the requirements. For more information, visit: www.absa.net.au/training/courses.aspx Your Home is a suite of consumer and technical guide materials and tools developed to encourage the design, construction or renovation of homes to be comfortable, healthy and more environmentally sustainable. For more information, visit: http://www.greenhouse.gov.au/yourhome/index.htm The Voluntary Building Industry Initiatives Programme of the Australian Greenhouse Office (AGO) is designed to assist the building industry to encourage best greenhouse practice from building and construction practitioners. For more information, visit: http://www.greenhouse.gov.au/buildings/practices.html 110 China Energy Conservation Information Dissemination Centre (ECIDC): Developed nine best practice cases on how best to install and operate energy systems. For more information, visit: http://www.ieej.or.jp/aperc/pdf/project2002/efficiency.pdf eeBuildings provides a voluntary, no-cost approach to improved energy efficiency. For more information, visit: http://www.epa.gov/eeBuildings/china/index.html India Energy Audits for Buildings. For more information, visit: http://www.bee- india.nic.in/Energy%20Auditor/Guidelines/Energy%20audit%20for%20buildings.pdf The Federation of India Chambers of Commerce and Industry is conducting energy efficiency training and audits. For more information, visit: http://www.ficci.com/services/energy.htm The Petroleum Conservation Research Association (PCRA) provides energy audits. For more information, visit: http://www.pcra.org/English/aboutus/default.htm The Energy Conservation Act of 2001 called for training and certification of professionally qualified energy managers and auditors with expertise in energy management, project management, financing and implementation of energy efficiency projects, as well as policy analysis. For more information, visit: http://www.energymanagertraining.com/new_index.php The Federation of India Chambers of Commerce and Industry is conducting energy efficiency training. For more information, visit: http://www.ficci.com/services/energy.htm The U.S. Asia Environmental Partnership (USAEP) in partnership with local governments, builders, architects, and academic institutions regarding the promotion of green building for the housing sector. For more information, visit: http://www.usaep.org/activities/initiatives/india.htm#5a eeBuildings/India: A pilot program cosponsored by USEPA, USAID/India, and the Indian Bureau of Energy Efficiency (BEE) and the Maharashtra Energy Development Agency (MEDA) provides a voluntary, no-cost approach to improved energy efficiency. For more information, visit: http://www.epa.gov/eeBuildings/india/index.html TERI Green Rating for Integrated Habitat Assessment (TERI–GRIHA): A voluntary program whose primary objective of the rating system is to help design green buildings and, in turn, help evaluate the "greenness" of the buildings. For more information, visit: http://www.teri.res.in/core/griha/ Japan A government affiliate (Institute of Building Environment and Energy Conservation) provides training seminars on design and construction of energy saving building/housing. A government affiliate (Institute of Building Environment and Energy Conservation) provides Comprehensive Assessment System for Building Environmental Efficiency (CASBEE) assessor accreditation and training program. 111 Republic of Korea Energy audits have been conducted mainly by KEMCO. In the industrial sector, there are two kinds of energy audits: an in-depth audit and a free audit. In the commercial building sector, energy audits are conducted for large residential and commercial buildings at the request of the owners of those buildings. Depending on the results of the audits, technical assistance and energy efficiency improvements, such as thermal insulation and double-glazed windows, will be provided. For more information, visit: http://www.kemco.or.kr/english/sub03_energyaudit.asp Practical Business Training and Capacity Building Courses (including the personal capacity and certifying the operators of small-sized boilers and pressure vessels, as well as the operators of gas boilers and certified energy managers). Classes are held for seven hours per day on topics such as energy conservation policies, laws and regulations which are also related to rational energy utilization, efficiency and safety of energy-consuming equipment, new conservation technologies, and measures to prepare for the Convention on Climate Change. Education for Provincial Energy Planning Officials. Early Stage Education: Providing financial assistance, educational aids such as books and other related materials for elementary and junior-high schools. United States The U.S. DOE supports software tools (REScheck and COMcheck) for checking compliance with energy performance requirements recommended for new buildings and evaluating performance trade-offs among efficiency measures. The National Conference of States on Building Codes and Standards (NCSBCS) sponsors training and information exchange on building code adoption and enforcement, not limited to the energy efficiency aspect of building codes. For more information, visit: http://www.ncsbcs.org/ Many utility companies offer energy audits to their residential and non-residential customers. The Federal Energy Management Program (FEMP) provides energy audits to federal agencies. For more information, visit: http://www1.eere.energy.gov/femp/services/assessments.html The U.S. DOE Home Weatherization Program offers an energy audit software tool for low- income households. For more information, visit: http://www.eere.energy.gov/weatherization/wxtech_neat.html Another federal government-sponsored free software tool for self-audits by homeowners is the Home Energy Saver. For more information, visit: http://hes.lbl.gov/ A number of professional and technical societies, as well as utility programs, provide energy efficiency training and education programs. For more information, visit: http://www.aeecenter.org/certification/CEMpage.htm ,http://www.aesp.org/i4a/pages/index.cfm?pageid=1 ,http://www1.eere.energy.gov/education/adult_education.html 112 The annual Solar Decathlon, a U.S. DOE program that sponsors university student teams to design and build low-energy homes. For more information, visit: http://www.eere.energy.gov/solar_decathlon/ Utility and Government Rebates and Tax Incentives Included in this category are utility demand-side management (DSM) rebates and sales and income tax incentives. Australia The Greenhouse Gas Abatement Programme (GGAP) uses Australian Government funding grants to leverage private sector investment on projects to reduce greenhouse gas emissions, such as co-generation, energy efficiency, travel demand management, alternative fuels, coalmine gas technologies and fuel conversion. For more information, visit: http://www.greenhouse.gov.au/ggap/index.html Several state-based programs provide financial assistance. The NSW Energy Savings Fund allocates $40 million a year for five years to encourage savings in energy and peak electricity demand in New South Wales. For more information, visit http://www.deus.nsw.gov.au/waterandenergysavings/ Victorian Energy Rebates provide funding for the installation of certain energy-efficient systems including solar hot water, high efficiency gas heaters and hot water systems. For more information, visit http://www.sustainability.vic.gov.au/www/html/1517-home-page.asp The Victorian Sustainability Fund and provides grant-based financial support for a broad range of environmental initiatives. For more information, visit http://www.sustainability.vic.gov.au/www/html/1517-home-page.asp China Chinese jurisdictions offer property tax and city fee exemptions for energy-efficient buildings, as defined by the Energy Efficient Design Standards for Hot Summer-Cold Winter Region. For more information see the description on p. 37 of the APEC report at: http://www.ieej.or.jp/aperc/pdf/project2002/efficiency.pdf India The Electricity Act of 2003: Sets up central and state-level independent regulatory commissions, can mandate and finance DSM programs. For more information, visit: http://www.bee-india.nic.in/sidelinks/Electricity_Act_2003.html The Bangalore Electricity Supply Company (BESCOM) in Karnataka initiated a program, Bescom Efficient Lighting Program (BELP), to promote the use of CFLs. For more information, visit: http://www.bescom.org/en/news/belp.asp Maharashtra Electricity Regulatory Commission (MERC) instituted a public-benefits type of electricity charge on industry, funds from which can be used to finance renewable energy and energy efficiency programs in the state. For more information, visit: http:mercindia.org.in/Orders_2005.htm 113 Japan Information not available. Republic of Korea Rebates for High Energy Efficiency Appliances (Motor, Lamp Ballast, Vending machine, Inverter, Pump, and Transformer). For more information, visit: http://www.kemco.or.kr/rebate The government provides tax incentives for energy efficiency investments (10% since 2005) for replacement of old industrial kilns, and installation of energy-saving facilities, alternative fuel-using facilities. For more information, visit: http://www.kemco.or.kr/english/sub03_financial.asp , and http://www.kemco.or.kr/english/sub03_financial02.asp United States Energy Efficiency Action Plan is a voluntary program initiated by USEPA and USDOE, involving utility, industry, and state government leaders and covering all sectors not just buildings. For more information, visit: http://www.epa.gov/cleanrgy/eeactionplan.htm A number of states provide utility or state incentives, including rebates or tax benefits, for energy efficiency measures in new or existing buildings, and for purchase of energy-efficient appliances and equipment. For more information, visit: http://www.dsireusa.org/ The Consortium for Energy Efficiency (CEE) coordinates utility rebate programs. For more information, visit: http://www.cee1.org/ Several states are considering sales tax incentives for purchasers of Energy Star appliances. For more information, visit: http://www.ase.org/content/article/detail/2643 Financing The range of financing programs includes conventional loans, government-subsidized 'soft' loans and loan guarantees, revolving funds for investment in energy efficiency, leasing of energy-efficient buildings and equipment, financing of efficiency measures with repayment through utility bills, and ESCO performance contracts. Australia Australasian Energy Performance Contracting Association (AEPCA): aims to support the commercial growth of members and their market through education, industry promotion, self- regulation and industry standards. In partnership with governments, it has developed industry best practice guidelines to Energy Performance Contracting (EPCs) and measurement and verification. For more information, visit: http://www.aepca.asn.au/ China Three Country Energy Efficiency Project: Initiated in 2001 by the World Bank and UN Environment Programme to substantially increase investments in energy efficiency by the domestic financial sectors in Brazil, China and India. For more information, visit: http://3countryee.org/ 114 India Private ESCOs have mobilized and recently set up the Indian Council for Energy Efficiency Business (ICPEEB) to network, provide input to policy makers, support business development, and disseminate information on energy efficiency. For more information, visit: http://www.shrishakti.com/alternativeenergy/index.html ESCOs have worked with the Ahmadabad Electricity Company to implement efficient lighting & other measures. For more information, visit: http://www.usaid.gov/in/Pdfs/Draft_DSM%20Guidebook.pdf Three Country Energy Efficiency Project: see China, above Programme on Solar Water Heating: Regular interest rates are being subsidized by Ministry of Non-Conventional Energy Sources (MNES), leading to installations of solar water heater in households, hotels, hospitals, small scale businesses, medium enterprises, sugar mills, milk processing plants, and food processing units. For more information, visit: http://www.renewableenergyaccess.com/rea/news/story?id=43139 Japan Environmentally Symbiotic Housing Model Project: Ministry of Land, Infrastructure and Transport provides model projects with subsidy for expenses for permeable pavement, greening facilities, etc. Premium Loan Program by the Government Housing Loan Corporation: Additional loan program and favorable interest rate for energy-saving performance has been provided by the Government Housing Loan Corporation. In addition, a new program has been introduced since 2005 that uses a mortgage-backed security approach to give favorable interest rate for energy-efficient housing. Low-interest Loans for Commercial Buildings: To promote environmentally friendly building construction, the Development Bank of Japan offers low-interest loans to projects. Subsidies for energy efficient system of residential and commercial buildings: New Energy and Industrial Technology Development Organization (NEDO) promotes introduction of highly energy-efficient systems in housing or other buildings with subsidies. Local Housing Grants: Ministry of Land, Infrastructure and Transport provides local governments with Local Housing Grants when they promote projects based on Local Housing Plan. Tax mitigation: Small and medium sized enterprises can enjoy corporate/income tax mitigation when they acquire facilities for efficient use of energy. Republic of Korea Information not available. 115 United States ESCO Financing: Used by the private sector (large commercial buildings) and schools, hospitals, and government offices. For more information regarding Federal government programs to use ESCO financing for Energy-Savings Performance Contracts. For more information, visit: http://www1.eere.energy.gov/femp/financing/mechanisms.html. Also, for an overview of trends in the U.S. ESCO industry, visit: http://eetd.lbl.gov/EA/EMP/ee- pubs.html The Asia-Pacific Economic Cooperation (APEC) has conducted a number of studies of energy efficiency and renewable energy projects, and sponsored pilots and demonstrations in APEC member economies. For more information, visit: http://www.apecsec.org.sg/apec/apec_groups/working_groups/energy.MedialibDownload.v1. html?url=/etc/medialib/apec_media_library/downloads/workinggroups/ewg/pubs/1998.Par.00 02.File.v1.1 Energy Efficient Mortgage (EEM): In 1995 Congress mandated a national EEM program. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy-efficient improvements into the mortgage. For more information, visit: http://www.hud.gov/offices/hsg/sfh/eem/eem_prog.cfm Utility Regulatory Incentives and Industry Voluntary Targets (Utility obligations with tradable "white" certificates, industry targets & voluntary agreements). Australia The Mandatory Renewable Energy Target requires an additional 9,500 gWh hours of electricity to be sourced from renewable sources by the year 2010. For more information, visit: http://www.greenhouse.gov.au/markets/mret/index.html Greenhouse Challenge Plus: Industry-Government partnerships to improve energy efficiency and reduce greenhouse gas emissions, including supply and end-use efficiency aspects. For more information, visit: http://www.greenhouse.gov.au/challenge/index.html The NSW State Government Greenhouse Gas Abatement Scheme (GGAS): through the Electricity Supply Amendment (Greenhouse Gas Emission Reduction) Act 2002 requires electricity sector participants to surrender abatement certificates equaling set benchmarks. These certificates can be created through various means including low-emission generation of electricity and reduced consumption of electricity. For more information, visit: http://www.greenhousegas.nsw.gov.au/ The Victorian State Government is undertaking a mandated rollout of interval "smart" meters. For more information, visit: http://www.esc.vic.gov.au/public/Energy/ Several state-based electricity network initiatives to consider demand side management exist. For more information, visit: http://www.iplan.nsw.gov.au/demandmgt/index.jsp and http://www.sustainable.energy.sa.gov.au/pages/programs/dsm/demand_side.htm China Information not available. 116 India Information not available. Japan Kyoto Protocol Target Achievement Plan. For more information, visit: http://www.env.go.kp/en/press/2005/0472b.html Republic of Korea The purpose of the Voluntary Agreement (VA) as a joint program between the government and building owners is to reduce energy consumption and satisfy greenhouse gas emission reduction targets by which building owners make their own target and try to achieve the goal (recommendation: 5% saving through five years). The Korean Government is providing low interest loans, tax incentives, technical support and PR promotion. United States California Green Building Initiative: 20% savings in commercial buildings in 10 years (2015). For more information, visit: http://www.energy.ca.gov/greenbuilding/index.html State-level "Renewable Portfolio Standards" which requires renewable energy to be a minimum percentage of all electricity sales (or of new capacity), and typically include all sectors not just buildings. For more information, visit: http://www.dsireusa.org/ (search for "portfolio standards"). Energy Efficiency Action Plan is a voluntary program initiated by U.S. EPA and U.S. DOE, involving utility, industry, and state government leaders and covering all sectors, not just buildings. For more information, visit: http://www.epa.gov/cleanrgy/eeactionplan.htm The National Action Plan for Energy Efficiency presents policy recommendations for creating a sustainable, aggressive national commitment to energy efficiency through gas and electric utilities, utility regulators, and partner organizations. Two key components of the National Action Plan for Energy Efficiency are participants identifying key barriers limiting greater United States investment in energy efficiency, and developing/documenting sound business practices for removing these barriers, as well as stakeholders committing to take action to advance the recommendations in their spheres of influence. Regulators working with utilities and other stakeholders, as well as boards working with publicly owned utilities, can establish or reinforce several policies including overcoming the throughput incentive, ensuring program cost recovery, and defining shareholder performance incentives. For more information, visit: http://www.epa.gov/cleanrgy/actionplan/eeactionplan.htm Public Sector Leadership This category of programs includes energy-efficient government procurement, sustainable construction, and energy management and retrofits of existing public facilities at all levels of government. Australia Environmental Design Guide for Australian Public Buildings: This guide provides an introduction to the key environmental issues relevant to office buildings and public buildings 117 and what can be done to address these issues in building projects. For more information, visit: http://www.deh.gov.au/settlements/publications/government/esd-design/index.html The Australian Government's policy Measures for Improving Energy Efficiency in Commonwealth Operations requires the preparation of an annual whole-of-government report on the total energy use and estimated greenhouse gas emissions of Australian Government departments and agencies. For more information, visit: http://www.greenhouse.gov.au/government/energyuse/pubs/measures.pdf The Energy Efficiency in Government Operations Programme aims to reduce the energy use and greenhouse gas emissions from Australian Government operations by setting energy intensity targets in a number of end-use categories and requiring government office buildings to be designed to meet energy efficiency performance criteria. It covers new public buildings within federal, state, and local governments. There are some requirements through the Energy Efficiency in Government Operations Programme for government energy-efficient procurement. China Energy Efficiency in Government Agencies Project in Collaboration with LBNL, Energy Foundation: Develop the research methodologies, surveys, analyze the collected data, develop policy suggestions to the central energy conservation management agencies, and participate in the development of government procurement policy for energy-efficient products. For more information, visit: http://www.cecp.org.cn/englishhtml/introduction.asp Since 2002, PePS ('Promoting an energy-efficient Public Sector') has been developing a pilot project for government purchasing of energy-efficient products, utilizing China's nascent energy-efficient labeling scheme. For more information, visit: http://www.pepsonline.org/countries/china.html In 2004, the Ministry of Finance and the NDRC issued a policy document on "Implementation of Government Energy Efficiency Procurement," calling for a staged, three- year program to establish energy-efficient purchasing practices at all levels of government in China. For more information, visit: Treasury 2004 Number 185.pdf 'Potential for Savings in China's Government Energy Efficiency Procurement Program: Preliminary Findings' which estimates that cumulative 10-year savings could be as high as 10.9 TWh and over 10 million tonnes of CO2. For more information, visit: Potential for Savings in China.pdf Energy Conservation Products Certification Commission. India The PePS-India project was launched in 2005. It is currently enlisting partners from the public sector in Maharashtra and will provide technical assistance, tools, and approaches that have proven successful in other developing countries. For more information, visit http://www.pepsonline.org/countries/india.html The Prime Minister of India announced in 2002 that, "All Government Organizations [were] to reduce their energy consumption by 30% in the next five years through contracts for guaranteed levels of energy efficiency improvements involving energy service companies." 118 In line with government policy and this announcement, the Bureau of Energy Efficiency has initiated a number of activities. For more information, visit: http://www.bee- india.nic.in/aboutbee/Implementation/Building.html Japan Kyoto Protocol Target Achievement Plan. For more information, visit: http://www.env.go.kp/en/press/2005/0472b.html Plan for Measures the Government Must Implement in Order to Limit the Emission of Greenhouse Gases in its Work and Projects (e.g. Cool Biz campaign). Environmental Load Reduction Program on Government Facilities (Green Program). Action Plan to Reduce CO2 Emissions from Government Facilities. Standards for the Environmental Preservation Performance of Government Building Facilities. Standards for Assessment of the Environmental Preservation Performance of Government Building Facilities and Renovation Plan. ESCO Project (ESPC) Implementation Manual. Handbook for Contributing to Global Warming Prevention Strategies in the Use of Government Facilities. Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities (Law on Promoting Green Purchasing). Republic of Korea Prime Minister's Mandate: Public organizations including government buildings should establish an energy-use efficiency improvements plan, report the actual result of energy saving to the Prime Minister every year and get an on-site inspection in summer and winter. New buildings should invest and adopt new and renewable systems by using 5% of building construction budget (mandatory). Prime Minister's Mandate: They should follow "Energy saving guide for public organizations." Preferential purchase for Energy-efficient appliances through Public Procurement Service by Prime Minister's Instruction 2005-5. United States New federal government buildings are required to be 30% more energy-efficient than the code requirements for all other buildings (Energy Policy Act of 2005 (EPACT) Sec. 104). For more information, visit: http://energycommerce.house.gov/108/energy_pdfs_2.htm Energy Policy Act of 2005 requires that federal agencies reduce energy use in buildings by 2%/year for 10 years (EPACT Sec. 102). For more information, visit: http://energycommerce.house.gov/108/energy_pdfs_2.htm 119 The U.S. DOE Federal Energy Management program provides technical assistance and information to other federal agencies in meeting this requirement, including energy audits and standard contracts for ESCO and utility financing of energy-saving retrofits in federal buildings. For more information, visit: http://www1.eere.energy.gov/femp/ Energy Policy Act of 2005 (Sec. 109) along with federal regulations and executive orders require federal agencies to buy only Energy Star or FEMP-designated products in the top 25th percentile of efficiency, where cost effective. For more information, visit: http://www.eere.energy.gov/femp/procurement/ and www.energystar.gov/products Executive Order 13221 requires federal agencies to buy products with 1-watt or other low levels of standby as determined by USDOE/FEMP. For more information, visit: http://www.eere.energy.gov/femp/pdfs/eo13221.pdf Several state and municipal governments have also adopted the federal efficiency requirements for their own purchasing. For more information, visit: http://www.eere.energy.gov/femp/pdfs/eo13221.pdf, http://www.pepsonline.org/countries/usa.html and http://www.cee1.org/gov/purch/purch- main.php3 Mandatory Measures Mandatory measures include building energy codes, appliance and equipment efficiency standards, and mandatory equipment inspection and certification programs. Australia The National Appliance and Equipment Energy Efficiency Programme (NAEEEP) mandates comparative energy labeling and minimum energy performance standards (MEPS) for electrical and gas-powered domestic appliances, commercial products and industrial equipment. For more information, visit: http://www.energyrating.gov.au/naeeec.html The Australian Government's Energy Efficiency Opportunities program encourages large energy-using businesses to improve their energy efficiency by requiring businesses to identify, evaluate and report publicly on cost-effective energy savings opportunities. For more information, visit: http://www.energyefficiencyopportunities.gov.au/ Building Code of Australia—energy efficiency measures were introduced in January 2003 for all building classifications to mandate performance above minimum standards through a national standardized approach. For more information, visit: http://www.greenhouse.gov.au/buildings/code.html & http://www.abcb.gov.au/ Several state mandatory measures exist to encourage energy efficiency. These include: • Queensland Sustainable Living Legislation: from 1 March 2006 all new homes built in Queensland are required to install energy-efficient hot water systems (solar, gas or electric heat pump) and use energy-efficient lighting for at least 40 % of internal floor space. For more information, visit: http://www.energy.qld.gov.au/sustainable_living.cfm • The Environmental Protection Authority of Victoria's Protocol for Environmental Management (PEM) requires significant energy industries to take up cost-effective opportunities for greenhouse gas mitigation, and integrate consideration of greenhouse 120 and energy issues within existing environmental management procedures and programs. For more information, visit: http://www.epa.vic.gov.au/about_us/legislation/air.asp#pem China In 1989, the State Bureau of Technical Supervision issued the first set of standards related to energy efficiency, including minimum efficiency standards for refrigerators, room air conditioners, clothes washers, TVs, automatic rice cookers, radios, electric fans, and electric irons. The China National Institute for Standardization (CNIS) has technical responsibility for the development of China's minimum energy efficiency standards. Subsequently, CNIS has developed, and the National Development and Reform Commission (NDRC) has issued, strengthened regulations for household refrigerators, room air conditioners, clothes washers, televisions, lighting, and other major energy-consuming equipment based on stringent research and analytical techniques. In 2005, NDRC also launched a new mandatory comparative information label for heavy appliances similar to those used in Australia, the European Union, etc. 1999: Fluorescent lamp ballasts standards set, refrigerator standards updated. 2001: Revised room air conditioner standard. Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, Article 15-inspections, and Article 27: The competent department concerned under the State Council shall, pursuant to the standards for boiler discharge of atmospheric pollutants prescribed by the state, stipulate corresponding requirements in the boiler quality standards. For more information, visit: http://www.china.org.cn/english/environment/34422.htm Heat Reform and Building Energy Efficiency: This $18 million GEF grant was approved in March 2005 to support improvements in building energy efficiency through demonstrations of better building designs, improved construction, and new materials, and through new building codes and standards and their implementation. For more information, visit: http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/C HINAEXTN/0,,contentMDK:20585167~pagePK:1497618~piPK:217854~theSitePK:318950, 00.html India Bureau of Energy Efficiency (BEE) has a mandate to set mandatory performance standards and to include building design codes. National Energy Labeling Programme: A categorical (1 to 5 stars) label applied to frost-free refrigerators and fluorescent tube lights (first voluntary and then mandatory over time). For more information, visit: http://www.clasponline.org/listnews.php?no=413 Under the Energy Conservation Act of 2001, development of energy performance codes has been initiated for boilers, compressors, fans, pumps and cooling towers. For more information, visit: http://www.techno-preneur.net/new-timeis/ScienceTechMag /april04/energy.htm 121 Minimum Energy Performance Standards (MEPS) on freezers, refrigerators, room air conditioners. For more information, visit: http://www.clasponline.org/countryinfosummary.php?country=India#National Test Standard Japan Act Concerning the Rational Use of Energy: Mandatory report on energy conservation. Based on the Act Concerning the Rational Use of Energy, building owners are obligated to make a report on energy conservation measures prior to new construction, extension, alteration, as well as major repairs or remodeling to local authorities. Instruction to change could be made by the local authorities in cases where measures are extremely insufficient according to the standards. Official announcement could also be made when the owner does not follow the instruction without good reason. Republic of Korea There are two main codes that are related to building energy conservation for new buildings: one is the Building Law managed by the Ministry of Construction and Transportation and the other is the Energy Efficiency Law managed by the Ministry of Commerce, Industry & Energy. Mandatory Standards for Building Insulation & Energy-Efficient Designs, Energy Efficiency Labeling Program (commercial under construction), and the Green Building Certification Program. MOCIE (Ministry of Commerce, Industry and Energy) issues a regulation requiring that some home appliances be tested and display the "Regulation on Energy Efficiency Labels and Standards" label to allow consumers to compare energy use. The companies obligated to undergo inspections are manufacturers of boilers and pressure vessels (in regard to construction), and the owners or users of such equipment (in regard to installation, in-service, alteration and relocation inspection). For more information, visit: http://www.kemco.or.kr/english/sub03_energyaudit02.asp United States U.S. DOE provides technical guidance to states on energy standards for new construction, based on ASHRAE Standard 90 (non-residential) and International Energy Conservation Code (IECC—residential) standards. States and municipalities adopt and enforce building energy codes, often following and sometimes exceeding these federal guidelines. U.S. DOE Building Codes Program and compliance software tools. For more information, visit: http://www.energycodes.gov/ Presentations at annual national workshops on state building energy codes. For more information, visit: http://www.energycodes.gov/news/2005_workshop/index.stm The Building Codes Assistance Project (BCAP) is a non-government organization that advocates for strong building energy codes and enforcement programs. For more information, visit: http://www.bcap-energy.org/home.php The IECC Residential Energy Efficiency Standard publication. For more information, visit: http://www.iccsafe.org/ 122 ASHRAE Standard 90.1-2004 for energy efficiency in new buildings. For more information, visit: http://www.realread.com/prst/pageview/browse.cgi?book=1931862664 The Federal Trade Commission (FTC) issues regulations requiring that some appliances and equipment be tested and labeled with the "EnergyGuide" label to allow consumers to compare energy use and costs of different models. For more information, visit: http://www.ftc.gov/bcp/conline/edcams/eande/contentframe_appliance_guide.html U.S. DOE is authorized by law to adopt mandatory minimum appliance standards for specified categories of appliances and building equipment. For more information, visit: http://www.eere.energy.gov/buildings/appliance_standards/ U.S. DOE contracts with the National Institute of Standards and Technology (NIST) to develop and update energy test procedures. For more information, visit: http://www.bfrl.nist.gov/863/heat_transfer_group/appliance.htm Some states, including California, also adopt their own appliance energy efficiency standards, but in the case of all products covered by federal standards, a state must first obtain federal approval from U.S. DOE to adopt a different standard. For more information, visit: http://www.energy.ca.gov/appliances/index.html The Appliance Standards Awareness Project is a non-governmental organization advocating for stronger appliance efficiency standards. For more information, visit: http://www.standardsasap.org/ New York, California, and other states require regular inspections of many larger boilers for safety and pollutant emissions, but not (directly) for energy efficiency. Energy Pricing and Rate Structure Market mechanisms to encourage energy efficiency depend on the price signals that consumers see, which include not only price levels (cost-based pricing) but also rate design and rate structures—for example, time-of-use and real-time pricing, and inverted-block rates. Other important pricing issues include net metering for on-site power and special incentive rates or reduced utility connection fees that encourage energy efficiency. Australia The Solar Cities program was announced in the Energy White Paper, Securing Australia's Energy Future, in June 2004. The program is designed to demonstrate how solar power, smart meters, energy efficiency and new approaches to electricity pricing can combine to provide a sustainable energy future in urban locations throughout Australia. It is a partnership approach that involves all levels of Government, the private sector and the local community. For more information, visit: http://www.greenhouse.gov.au/solarcities/index.html Several smart metering and time-of-use pricing trails are being conducted in Australia through governments or industry lead initiatives. China Information not available. 123 India Bangalore Electricity Supply Corporation: BESCOM Efficient Lighting Program. For more information, visit: http://www.usaid.gov/in/Pdfs/Draft_DSM%20Guidebook.pdf Japan Information not available. Republic of Korea Information not available. United States Many utilities offer electricity and natural gas tariffs designed to encourage energy efficiency and reduce waste by business customers and individual consumers. California, Oregon, Utah, and Washington states have adopted inverted block electricity rates for residential customers. For more information, visit: http://www.epa.gov/cleanenergy/pdf/eeap_rates.pdf Some utilities offer special tariffs or contract with their customers to reduce loads during high demand periods. A 2004 study by the federal Government Accountability Office (GAO) identified significant benefits from demand-response. For more information, visit: http://www.gao.gov/new.items/d04844.pdf Section 1252 of the Energy Policy Act of 2005 calls on state utility regulators to direct utilities to install "smart meters," establish time-of-use electricity tariffs, and consider implementing demand-response programs. For more information, visit: http://energycommerce.house.gov/108/energy_pdfs_2.htm California funded a research program on demand-response. For more information, visit: http://drrc.lbl.gov/ According to the DSIRE database, Arizona, Colorado, New Mexico, and Texas all offer a utility rate incentive for new connections in the case of efficient homes. For more information, visit: http://www.dsireusa.org/ , http://www.progress- energy.com/custservice/carres/energyhome/index.asp Technology Development and Demonstration A wide range of demonstration and technology development programs can encourage the introduction of energy-efficient technologies in buildings and appliances. Australia Energy Research for the Building Code of Australia 2000. For more information, visit: http://www.greenhouse.gov.au/buildings/publications/pubs/energy_research.pdf Scoping Study of Minimum Energy Performance Requirements for incorporation into the Building Code of Australia 1999. For more information, visit: http://www.greenhouse.gov.au/buildings/publications/pubs/s_study.pdf 124 China Energy Efficient Building Demonstration Project (MOST primary counterpart)—finished: January 2004. In 1999, DOE and MOST signed a Statement of Work to build an Energy Efficient Demonstration Building, by which when the Chinese partner built a normal building, U.S. private firms would provide engineering, materials and technology to bring it to higher specifications to achieve energy savings of 35%. For more information, visit: http://www.uscc.gov/hearings/2003hearings/written_testimonies/031030bios/031030cobb.do e_bilatattachme.htm and http://www.doe.gov/news/1781.htm India Confederation of Indian Industries/Green Buildings Centre promotes the building of world class 'Green Buildings', several of which have been built to the US Business Council's platinum and gold LEED ratings. For more information, visit: http://greenbusinesscentre.com/ Japan Energy conservation building/housing awards. Exhibition of new building environmental technology. Field tests of fuel cells for housing. R&D on sustainable buildings, fuel cell, Comprehensive Assessment System for Building Environmental Efficiency (CASBEE), etc. Republic of Korea Research projects for building energy conservation and expanding new and renewable systems to buildings have been conducted with the assistance of MOCIE and MOCT. Research and Development programs include from key technology of building energy systems to large-scale test bed by short & long term based. United States Annual awards are given for federal showcase buildings. For more information, visit: http://www1.eere.energy.gov/femp/services/awards_fedshowcase.html. The U.S. Navy's "TechVal" program evaluates and sometimes tests potential energy-saving technologies for the military services. For more information, visit: http://techval- energy.nfesc.navy.mil/ Utilities in California collaborate in assessing new and emerging technologies. For more information, visit: http://www.ca-etcc.com/ The U.S. DOE/FEMP New Technologies Demonstration Program. For more information, visit: http://www.eere.energy.gov/femp/technologies/tech_demos.cfm U.S. DOE Building Technologies program is the principal sponsor of buildings energy efficiency and renewable energy research in the United States. For more information, visit: http://www.eere.energy.gov/buildings/tech/index.html 125 State government agencies and public universities, including those in New York, California, Iowa, North Carolina, and Florida, also sponsor applied R&D on energy efficiency in buildings, and undertake cooperative projects with each other and with U.S. DOE. For more information, visit: http://www.asertti.org/ NY State Energy Research and Development Authority. For more information, visit: http://www.nyserda.org/programs/buildng.asp Building projects certified under the U.S. Green Building Council LEED rating system. For more information, visit: http://www.usgbc.org/LEED/Project/CertifiedProjectList.aspx?CMSPageID=247&CategoryI D=19& Other This category of programs includes other activities that do not fit well into the above categories, or cut across several of them. Australia Australia's Energy White Paper, Securing Australia's Energy Future, comprehensively reviews energy policies and approaches, and provides a framework for a sustainable energy future. For more information, visit: http://www.dpmc.gov.au/publications/energy_future/index.htm In August 2004, the Ministerial Council on Energy agreed to Stage 1 of a National Framework on Energy Efficiency (NFEE) in recognition of the potential environmental and economic benefits. For more information, visit: http://www.nfee.gov.au/home.jsp?xcid=48 China The Energy Conservation Law of 1998 highlights end-use energy reduction and standards and labels programs. For more information, visit: http://www.unescap.org/esd/energy/publications/compend/ceccpart4chapter4.htm China Sustainable Energy Program (CSEP) supports China's policy efforts to increase energy efficiency and renewable energy through both national policy and regional implementation. For more information, visit: http://www.efchina.org/home.cfm China Standard Certification Centre (CSC, formerly CECP) activities include establishing and developing the certification system for energy conservation, water-saving and environmental-friendly products; conducting fundamental research regarding energy for policy making; promoting energy-efficient, water-saving and environmentally friendly products; and removing the market barriers for energy conservation products. For more information, visit: http://www.cecp.org.cn/englishhtml/cecp.asp Alliance to Save Energy's China Energy Efficiency Industry Partnership (EEIP) works closely with suppliers of energy-saving equipment and services to educate energy end-users on energy and money-saving improvements they can make in their facilities. For more information, visit: http://www.ase.org/content/article/detail/610 126 India The Government of India has set a goal, Mission 2012: Power for All, which includes a conservation strategy to optimize the utilization of electricity with a focus on demand side management, load management and technology upgrades to provide energy-efficient equipment. For more information, visit http://www.indiacore.com/power2.html Ministry of Non-Conventional Energy Sources: Annual Report 2005–06. For more information, visit: http://mnes.nic.in/frame.htm?majorprog.htm From the Ministry of Power: National Energy Conservation Award—2005: Government and Commercial Sector. For more information, visit: http://www.energymanagertraining.com/eca2005/Award2005CD/list.htm Petroleum Conservation Research Association: Mission is efficient energy utilization and environment protection leading to improvement in quality of life. For more information, visit: http://www.pcra.org/English/aboutus/default.htm Japan Kyoto Protocol Target Achievement Plan. For more information, visit: http://www.env.go.kp/en/press/2005/0472b.html Fundamental policies under the Act Concerning the Rational Use of Energy. Republic of Korea Rational Energy Utilization Act. National Energy Efficiency Programs. For more information, visit: http://www.kemco.or.kr/english/sub03_energyefficiency.asp?defmenu=3 Energy Efficiency Standards & Labeling Program. For more information, visit: http://www.kemco.or.kr/english/sub03_energyefficiency.asp Energy-saving Office Equipment & Home Electronics Program. For more information, visit: http://www.kemco.or.kr/english/sub03_energyefficiency02.asp The High-efficiency Equipments Certification Program. For more information, visit: http://www.kemco.or.kr/english/sub03_energyefficiency03.asp The guideline to install renewable energy equipments (MOCIE's Notification 2006-9). The regulation of the development of energy and resource technology (MOCIE's Notification 2005-92). The guideline on electricity prices from using renewable energy (MOCIE's Notification 2004-104). The guideline on trading of power generation from small renewable energy (MOCIE's Notification 2005-14). The regulation of the certified renewable energy equipments (MOCIE's Notification 2005- 134). 127 The Voluntary Agreement: The Ministry of Commerce, Industry and Energy and the Ministry of Environment manage a joint program between the government and industry. A company that intends to join the agreement should submit a concrete action plan within three months after submitting to KEMCO a letter of intent specifying energy consumption and greenhouse gas emission reduction target. The main areas that ESCOs cover include energy-efficient facility investment, maintenance services for such facilities, and energy management monitoring. ESCOs invest in energy utilizing facilities on behalf of the energy user if the user is unable to replace or improve existing facilities due to technical or financial problems. United States President Bush—Greenhouse Gas intensity goals (2002): For more information, visit: http://www.whitehouse.gov/ceq/global-change.html, http://www.whitehouse.gov/news/releases/2002/02/20020214.html U.S. DOE's "Projected Benefits of Federal Energy Efficiency and Renewable Energy Programs" (3/2006). For more information, visit: http://www1.eere.energy.gov/ba/pdfs/39684_app_G.pdf National Energy Policy (5/2001). For more information, visit: http://www.energy.gov/about/nationalenergypolicy.htm2) Energy Policy Act of 2005 (EPACT). For more information, visit: http://energycommerce.house.gov/108/energy_pdfs_2.htm) U.S. DOE Efficiency/Renewables Strategic Plan (2002). For more information, visit: http://www1.eere.energy.gov/office_eere/pdfs/fy02_strategic_plan.pdf U.S. DOE Buildings Program Strategic Plan (1998). For more information, visit: http://www.eere.energy.gov/buildings/info/documents/pdfs/25096a.pdf U.S. Dept. of Housing/Urban Development. (HUD) Energy Action Plan. For more information, visit: http://www.hud.gov/energy/energyactionplan.pdf Energy Star Plan. For more information, visit: http://www.energystar.gov/ia/news/downloads/annual_report2004.pdf 128 Appendix E: Related Initiatives by Regional Organizations A number of existing regional and multinational activities and organizations are working to improve energy efficiency in the buildings sector. This section includes a partial listing, with additional entries and updates to be incorporated in the future. AIT (Asian Institute of Technology) Since 1979, the Asian Institute of Technology (AIT) in Thailand has been engaged in training energy specialists in response to regional needs for developing capability for efficient development and management of the energy sector. The focus of energy studies at AIT is on energy and the environment, renewable energy and energy efficiency, energy systems (supply and demand) management, energy economics and planning, and restructuring of energy industries. In October 2005 AIT successfully launched, through the School of Environment, Resources and Development (AIT's largest school), the project "Energy Code for New Buildings," which is to be concluded in December of 2006. This project aims to develop requirements on efficiency of hot water generation and absorption chillers and to incorporate the results in whole building energy compliance in the Building Energy Code. The project also aims to develop procedures and tools, which include a computer code, to assist in the implementation of the Building Energy Code on large buildings on a mandatory basis. For more information, visit: http://www.ait.ac.th/, http://www.serd.ait.ac.th/ep/projects.htm APEC – EWG EGEE&C (Experts Group on Energy Efficiency & Conservation) For more than a decade, the Experts Group for Energy Efficiency & Conservation (EGEE&C), which was created by the Working Group (EWG) of APEC (Asia-Pacific Economic Cooperation), has organized cooperative policy studies, workshops, and pilot programs including a major focus on energy-efficiency standards and labeling (S&L) harmonization. The EGEE&C promotes energy conservation and the application of energy- efficient practices and technologies through advancing the application of demonstrated energy-efficiency practices and technologies, and developing and enhancing trade between APEC economies in products and services and energy-efficient practices and technologies. It contributes to international efforts to reduce the adverse impacts of energy production and consumption, and improve the analytical, technical, operational, and policy capacity for energy efficiency and conservation within APEC economies. In April 2005, EGEE&C, along with the City of Melbourne, organized the Rise of Green Building Workshop. Focusing on the commercial office building sector, the workshop took a new approach to promoting the uptake of energy-efficient and environmentally sustainable technologies and practices. For more information, visit: http://www.egeec.apec.org/ CLASP (Collaborative Labeling and Appliance Standards Program) CLASP was formed in 1999 as a partnership devoted to advancing the extent and quality of energy efficiency standards and labeling in developing countries. Since then it has evolved into a globally oriented, globally governed non-profit corporation. Recently, CLASP has provided major assistance to S&L programs in China and India; played a key role in the development of a UNDP-GEF global initiative in regional S&L; and partnered with APEC in creating a website for global information on S&L. In each participating country, project 129 results include enhanced institutional capacity for implementing standards and labeling programs, increased production of energy-efficient products by manufacturers, improved average energy efficiency of appliances and equipment, significant reductions in electricity consumption, and lower energy-related emissions of greenhouse gases and other pollutants. In 2005 CLASP developed a survey instrument to help practitioners of S&L collect the home and business energy use necessary to design effective S&L programs. For more information, visit: http://www.clasponline.org/ APERC (Asia Pacific Energy Research Center) Established in July 1996 in Tokyo, APERC's main function is to conduct energy research and to foster understanding among APEC economies of global, regional and domestic energy demand and supply trends, energy infrastructure, energy development, energy regulatory reform and related policy issues in view of the regional prosperity. The Center advocates rational energy policy formulation and enhances capacity building in energy research in the region, following the APEC's Non-binding Energy Policy Principles for furthering energy security, economic growth, and environmental quality in an effort to implement their vision of international cooperation. In 2006 APERC published its second APEC Energy Demand and Supply Outlook. This document has been regularly reviewed and updated as the major pillar of APERC's work. For more information, visit: http://www.ieej.or.jp/aperc/index.html APEC-ESIS (Energy Standards Information System) The ESIS project team is an international consortium that provides up-to-date information about appliance and equipment energy testing and standards and labeling, as well as an online forum for discussing topics of interest to professionals working in this area. In 2004, APEC partnered with CLASP and, more recently, with the Renewable Energy and Energy Efficiency Partnership (REEEP) to expand its web-based Energy Standards Information System (ESIS) beyond the APEC economies. APEC-ESIS includes a Standards Notification Procedure for informing energy policy officials, manufacturers, and other interested parties about new energy standards and regulations being developed or revised in APEC economies. The joint ESIS-CLASP database has information on over 1,700 standards and also provides contact information on personnel involved in S&L among the 17 participating APEC economies, What's New information, useful data called Quick Facts, a library of publications, a site for benchmarking studies, and portals for communities of practice to exchange information. For more information, visit: http://www.apec-esis.org GEF (Global Environment Facility) The Global Environment Facility (GEF), established in 1991, helps developing countries fund projects and programs that protect the global environment. Projects addressing climate change—those that reduce or avoid greenhouse gas emissions in the areas of renewable energy, energy efficiency, and sustainable transport— make up the largest group of GEF- funded projects. The GEF has supported a number of projects in Partners related to improving the efficiency of buildings and appliances. For example, the China Barrier Removal for Efficient Lighting Products and Systems project seeks to reduce lighting energy use in China in 2010 by 10% relative to a constant efficiency scenario; the China Utility-Based Energy Efficiency Finance Program (CHUEE) aims to organize and provide marketing, development and financing services to residential, commercial, and industrial sector energy users to implement energy efficiency (EE) equipment installations; and the End Use Energy Efficiency project supports 130 the Chinese government's program to boost energy efficiency in the industrial and building sectors. There is also the Market Transformation through Consumer Awareness Programs for Energy Efficiency Standards and Labeling project, whose objective will be the removal of the existing barriers to the massive utilization of energy-efficient refrigeration products in India (final approval pending). For more information, visit: http://www.gefweb.org WBG (World Bank Group) As one of the biggest promoters of renewable energy and energy efficiency projects in the world, (financing about $9 billion in these projects), the WBG has made it a priority to help developing countries with their energy needs while cushioning the environmental impact of such growth. At the International Conference for Renewable Energies in Bonn in June 2004, the WBG announced that it would commit to an average growth rate of 20 percent per year over the next five years in its annual financial commitments for renewable energy and energy efficiency projects. In addition, the WBG supports the Energy Sector Management Assistance Programme (ESMAP); a global technical assistance program provides policy advice on sustainable energy development to governments of developing countries and economies in transition and contributes to the transfer of technology and knowledge in energy sector management. The WBG also sponsors an annual international Energy Week conference and other meetings. For more information, visit: http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTENERGY/0,,menuPK:33681 2~pagePK:149018~piPK:149093~theSitePK:336806,00.html ADB (Asian Development Bank) Through its Energy Policy, ADB is committed to promoting ways to increase access to clean and affordable energy in its developing member countries. ADB promotes the development of clean energy resources and supporting measures for cost-effective renewable energy and energy efficiency technologies. As part of its commitment to clean energy, ADB has established the Renewable Energy, Energy Efficiency and Climate Change (REACH) Program to support capacity building, institutional development, and project development activities. Another concrete effort to support clean energy and climate change mitigation is the Carbon Market Initiative (CMI), a proposed co-financing facility that would provide up- front funds as well as marketing and brokerage support to developers and sponsors of projects with carbon credit content. For more information, visit: http://www.adb.org/ REEEP (Renewable Energy & Energy Efficiency Partnership) Launched at the Johannesburg World Summit on Sustainable Development in August 2002, REEEP is a public–private partnership that aims to accelerate the marketplace for renewable energy and energy efficiency. REEEP focuses on the promotion of low-energy consumption technology in the construction sector, as well as the investigation of current low-energy buildings and the strategies used to reduce residential and commercial energy consumption. In March 2006, REEEP's Finance Committee approved the selection of 32 new projects for funding. The current projects aim to increase attention to Africa (e.g. Liberia and Tunisia) and towards the development of national policy frameworks to support marketplace development of renewables and energy efficiency of buildings in China, Guatemala, Mexico, and South Africa. Their existing 18 projects, centered on similar energy efficiency issues in buildings, are still under way and due for completion in 2006. For more information, visit: http://www.reeep.org/ 131 TERI (The Energy and Resources Institute) Formally established in 1974, TERI—based in Delhi but with activities throughout Asia— places great emphasis on the efficient utilization of energy, sustainable use of natural resources, large-scale adoption of renewable energy technologies, and reduction of all forms of waste as drivers of toward sustainable development. All activities in TERI move from formulating local and national-level strategies to suggesting global solutions to critical energy and environment-related issues. As a result of local to global initiatives, in April 2006 TERI, in coordination with the Department of Power and the Government of National Capital Territory of Delhi, organized a workshop outlining key measures for energy efficiency and conservation programs in residential, commercial, and institutional buildings, as well as new construction to improve the nation's power supply. For more information, visit: http://www.teriin.org/ 132
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