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Local Government Energy Efficiency Program

Program Guidelines—April 2013

Program Guidelines

APRIL 2013

Written and published by the Department of Climate Change and Energy Efficiency.

© Commonwealth of Australia 2013

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IMPORTANT NOTICE – PLEASE READ

This document is produced for general information only and does not represent a statement of the policy of the Commonwealth of Australia. The Commonwealth of Australia and all persons acting for the Commonwealth preparing this report accept no liability for the accuracy of or inferences from the material contained in this publication, or for any action as a result of any person’s or group’s interpretations, deductions, conclusions or actions in relying on this material.

CONTENTS

ABOUT THE PROGRAM GUIDELINES 2

1. PROGRAM OVERVIEW 3

1.1 Introduction 3

1.2 Program Objective 3

1.3 Program Key Dates 4

1.4 General Enquiries 4

2. ELIGIBLITY 5

2.1 Eligible Applicants 5

2.2 Low Socio-Economic Or Otherwise Disadvantaged Areas 5

2.3 Facilities Eligible Under The Program 5

2.4 Facilities Not Eligible Under The Program 5

2.5 Eligible Systems 6

2.6 Ineligible Systems 6

3. FUNDING INFORMATION 7

3.1 Funding 7

3.2 Low Socio-Economic Or Otherwise Disadvantaged Areas 8

3.3 Project Management Costs 8

3.4 Small-Scale Technology Certificates 8

4. APPLYING FOR A GRANT 9

4.1 How To Apply 9

4.2 Application Review Process 9

4.3 Incomplete Applications 9

4.4 Late Applications 10

4.5 Supporting Documentation 10

4.6 Obtaining Quotes 10

4.7 Preferred Quotes 11

5. FUNDING AGREEMENT 12

5.1 Receiving Funding 12

5.2 Funding Limitations 12

5.3 Project Duration 12

5.4 Regulatory Requirements 12

5.5 Reporting and Acquittal 13

5.6 Compliance 13

5.7 Ongoing Responsibility 13

6. ADDITIONAL INFORMATION 14

6.1 Contacts And Complaints 14

6.2 Review Of Decisions 14

6.3 Privacy And Confidentiality 15

7. GLOSSARY 16

7.1 Glossary Of Terms 16

ATTACHMENT A 18

ABOUT THE PROGRAM GUIDELINES 

The Program Guidelines provide an overview of the policy and intention of the Australian Government’s Local Government Energy Efficiency Program. Further information about the Local Government Energy Efficiency Program is available on the Department of Climate Change and Energy Efficiency’s website – www.climatechange.gov.au

These Guidelines include:

-an overview of the Local Government Energy Efficiency Program, including its objective;

-the eligibility requirements of the Program and how assistance will be calculated; and 

-how to apply for a grant under the Program.

These Guidelines may be varied by the Department from time to time. 

1. PROGRAM OVERVIEW

1.1 INTRODUCTION

The Australian Government has a comprehensive plan to move to a clean energy future. This includes:

-introducing a carbon price; 

-promoting innovation and investment in renewable energy;

-encouraging energy efficiency; and

-creating opportunities in the land sector to cut pollution. 

Improving the efficiency of our energy use is one of the fastest and most cost effective ways to reduce emissions. The Australian Government has implemented a raft of energy efficiency measures which will help improve the productivity of our economy and move Australia towards a prosperous low-carbon future. 

A key to improving energy efficiency is local action. The Australian Government, recognising its leadership role in supporting local governing authorities in their efforts to improve their energy efficiency, has established the Local Government Energy Efficiency Program (the Program). 

The $24 million Program is a non-competitive, capped allocation grant program. Each local governing authority is eligible to make one application for funding to support the installation of solar and heat pump hot water systems in one or more of their buildings or community facilities. Local governing authorities will be required to co-fund these projects, and eligible systems are those which attract 10 or more Small-scale Technology Certificates (STCs) at the time of installation. 

Local governing authorities will be eligible for a maximum grant amount according to their size and their socio-economic status according to the Socio-Economic Indexes for Australia (SEIFA) 2006 – Index of Relative Socio-economic Disadvantage (see Section 3: Funding Information). 

1.2 PROGRAM OBJECTIVE

The objective of the Program is to support local governing authorities to install energy efficient solar and heat pump hot water systems in their buildings and community facilities, particularly where those authorities are situated in low socio-economic or otherwise disadvantaged areas. 

1.3 PROGRAM KEY DATES 

Applications for grants under the Program will be accepted from 21 November 2012, and installations must be completed within 12 months of signing the funding agreement.

1.4 GENERAL ENQUIRIES

Local governing authorities who are interested in applying for a grant under the Program, and would like further information, can contact the Department of Climate Change and Energy Efficiency’s Hotline on 1800 463 008, or via email at [email protected].

The Department’s website also contains additional information about the Program and information on the application process and can be accessed atwww.climatechange.gov.au/government/initiatives/lgeep.

2. ELIGIBLITY 

2.1 ELIGIBLE APPLICANTS

All local governing authorities (including the Australian Capital Territory) are eligible to apply for a grant under the Program. 

2.2 LOW SOCIO-ECONOMIC OR OTHERWISE DISADVANTAGED AREAS 

In order for local governing authorities to be eligible to apply for additional Commonwealth funding and lower co-funding percentages, they must be within the lowest half of the SEIFA 2006 – Index of Relative Socio-economic Disadvantage. A list of these local governing authorities is provided at Attachment A. 

2.3 FACILITIES ELIGIBLE UNDER THE PROGRAM

Eligible facilities and buildings are those owned, under long-term management responsibility or subject to a long-term lease (five years or more remaining at the time of application) by the applying local governing authority. 

Under the Program, local governing authorities are to install solar or heat pump systems in buildings or facilities that will improve energy efficiency and provide the best outcome for their local communities, particularly those facilities in low socio-economic areas.

Local governing authorities are to assess and provide information on why the proposed facility provides the best outcome for their local community.

2.4 FACILITIES NOT ELIGIBLE UNDER THE PROGRAM

Facilities or buildings which are not eligible include those that:

-are not owned, or under long-term management responsibility by the applying local governing authority;

-are subject to a short-term lease (less than five years remaining at the time of application, unless evidence is supplied of negotiations to extend the lease beyond this); or

-have already received funding, at the time of application, to install a solar or heat pump hot water system in a facility or building under a Commonwealth or State and Territory government program.

2.5 ELIGIBLE SYSTEMS

Eligible solar and heat pump hot water systems are those which attract 10 or more STCs at the time of installation and location in which the system is installed¹. 

Eligible systems must be new and complete solar or heat pump hot water systems. Retrofitting an existing system with new equipment or components does not attract STCs and as such is not eligible under the Program. However, if a complete new system is upgrading an existing solar or heat pump hot water service this would be considered an eligible system under the Program. 

More information on STCs can be found at the Clean Energy Regulator website http://ret.cleanenergyregulator.gov.au/Certificates/stcs. 

Eligible systems can replace existing electric or gas hot water systems as well as existing solar or heat pump hot water systems, which are no longer energy efficient due to relying solely on electric/gas booster switches or are no longer operational. 

Where a system is being replaced, information is to be provided on what system is being replaced and how its replacement improves energy efficiency and provides the best outcome for their local community.

Local governing authorities are also able to install heat pump hot water systems for the purposes of heating swimming pools, should they attract 10 or more STCs. 

2.6 INELIGIBLE SYSTEMS

Hot water systems which are not eligible include those that:

-do not attract 10 STCs or more;

-are solely electric or gas operated;

-are already purchased or installed before a funding agreement has been executed; or

-are not installed by a licensed installer.

1 The number of STCs an eligible solar or heat pump hot water system attracts varies depending on which of the four regions it is installed. As a consequence, systems may be eligible for funding in some regions but not in others.

3. FUNDING INFORMATION

3.1 FUNDING

For the purpose of the Program, local governing authorities are separated into three groups: 

-small regional and rural local governing authorities;

-medium-sized regional local governing authorities; and 

-metropolitan and large regional local governing authorities. 

This grouping of local governing authorities is based on the categories listed in the Australian Classification of Local Governments (Local Government National Report 2007/08, Department of Infrastructure, Transport, Regional Development and Local Government, 2010).

Local governing authorities in each group will be eligible for a maximum grant amount being a percentage of total project costs reflecting the expected scale of projects and resources available to the different groups of local governing authorities. 

The following table summarises the funding arrangements for local governing authorities not in the lowest half of the SEIFA 2006 – Index of Relative Socio-economic Disadvantage. 

3.2 LOW SOCIO-ECONOMIC OR OTHERWISE DISADVANTAGED AREAS 

In cases where local governing authorities are ranked in the lowest half of the SEIFA 2006 – Index of Relative Socio-economic Disadvantage, the following tables summarise the funding arrangements. 

A list of these local governing authorities is provided at Attachment A.

3.3 PROJECT MANAGEMENT COSTS

Within the maximum grant allocation, small regional and rural local governing authorities will also be eligible to apply for funding to meet project management costs of up to $1,000.

3.4 SMALL-SCALE TECHNOLOGY CERTIFICATES

Funding under the Program is provided net of the nominal STC value for the systems selected for installation under the project.

STCs can provide a discount on the upfront cost of solar or heat pump hot water systems.  ‘Net of STCs’ means the quoted cost of each system must reflect the price after any discountis applied.

More information on STCs can be found at the Clean Energy Regulator website http://ret.cleanenergyregulator.gov.au/Certificates/stcs. 

4. APPLYING FOR A GRANT

4.1 HOW TO APPLY

To apply for a grant, local governing authorities must submit a completed application form including all supporting documentation. An application form can be downloaded from www.climatechange.gov.au/government/initiatives/lgeep. 

Electronic applications must be emailed to [email protected] and identified as “Application for Local Government Energy Efficiency Program” in the subject field. 

Hard copy applications are available on request and can be mailed to: 

Local Government Energy Efficiency ProgramGrants Management Department of Climate Change and Energy EfficiencyGPO Box 854CANBERRA ACT 2601

Once a complete application is received, the Department will assess the eligibility (see Section 2 – Eligibility) of applicants as well as submitted quotes for the supply and installation of the solar or heat pump hot water systems. 

4.2 APPLICATION REVIEW PROCESS 

Applicants are encouraged to submit their application as soon as it is complete. The Department will assess all applications against eligibility criteria once they are received.

4.3 INCOMPLETE APPLICATIONS

If an application is incomplete or the applicant is ineligible, the Department will discuss this with the primary contact person responsible for lodging the application.

Applicants will not be permitted to amend their applications after the closing date, unless requested to do so by the Department.

In the event of the applicant having made an unintentional error or omission, the Department will decide whether to accept an amendment or additional information.

4.4 LATE APPLICATIONS 

Applications lodged within seven calendar days of the advertised closing date may be accepted in cases where the delay is due to exceptional circumstances. The decision to accept late applications will be at the discretion of the Department. 

For more information please contact the Program’s hotline on 1800 463 008.

4.5 SUPPORTING DOCUMENTATION

It is the responsibility of the local governing authority applying for funding under the Program to ensure applications are complete and all supporting documentation is attached, including three quotes for the proposed project. 

Where incomplete supporting documentation is received, the Department will contact the local governing authority to request further information or supporting documentation.

4.6 OBTAINING QUOTES

Local governing authorities will need to obtain and provide three or more quotes for the supply and installation of the solar or heat pump hot water systems with the completed Application Form. 

In obtaining quotes, local governing authorities will need to seek advice from installers on which system best meets the hot water needs of the facility or building where the system is to be installed.

If a local governing body is unable to obtain three quotes from within their jurisdiction, consideration may be given in exceptional circumstances where local governing authorities are located in remote areas. This will be determined on a case by case basis. 

Where an installation is considered too large for a single installer to complete, local governing authorities will be encouraged to divide the installation into smaller projects and seek three or more quotes for each part of the project.

4.7 PREFERRED QUOTES 

At the time of application, local governing authorities will also be required to identify their preferred quote and justification to ensure their proposed project is fit for purpose, represents value for money and will result in energy efficiency gains.

Additional information should also be provided in support of quotes, the engagement of local suppliers and the extent of local content.

Such considerations may include, for example, the size of the tank and collector, orientation, shading and the hot water usage of the facility or building and the type of system being replaced. An example of an energy efficient solution could be to replace an existing inefficient electric storage hot water system.

If an existing system is being replaced, local governing authorities will be required to provide an estimate of energy savings.

Local governing authorities are strongly encouraged to work with local manufacturers and installers to supply and install solar and heat pump hot water systems.

5. FUNDING AGREEMENT

5.1 RECEIVING FUNDING 

Local governing authorities that wish to participate in the Program will be required to enter into a Funding Agreement with the Australian Government. A condition of receiving a grant will require local governing authorities to comply with the terms and conditions of their Funding Agreement and with the Program Guidelines.

Once a local governing authority has entered into the Funding Agreement with the Commonwealth for the Program, an initial payment will be made to the applicant. The initial payment will represent 70 per cent of the total project amount, which must include the required contribution of the applicant. 

The remaining funds will be held back until the project is complete. The retention funds, 30 per cent of the total project amount, will be paid once applicants have completed the acquittal process. All payments under the Program will be made via electronic funds transfer.

5.2 FUNDING LIMITATIONS

As the Program is a non-competitive, capped initiative, if local governing authorities do not apply for the maximum funding amount and the application is approved, they will not be able to apply for the remainder at a later date.

Grants under the Program are not retrospective. Funding will not be provided for commitments made, items purchased or installed, or any work undertaken before a funding agreement hasbeen executed.

PROJECT DURATION

 All installations must be completed within 12 months from execution of the funding agreement.  The 12 month installation timeframe is designed to allow local governing authorities sufficient  time to undertake projects. 

 Consideration for an extension could possibly be given in exceptional circumstances where  local governing authorities are located in regional and remote areas. This will be determined  on a case by case basis. 

REGULATORY REQUIREMENTS

 Local governing authorities will be responsible for ensuring installers comply with all relevant  Australian Standards, regulations, codes of practice and Workplace Health and Safety laws  associated with installing solar or heat pump systems at their facilities in the State or Territory  their project will be undertaken. 

5.5 REPORTING AND ACQUITTAL

Local governing authorities must demonstrate that they have expended funds in accordance with the Funding Agreement through the following reporting and acquittal requirements:

• a final report to demonstrate completion of the project;

• an installation report, including installer certification against relevant standards and regulatory requirements, invoices and photos of the installation, including panels, connections and the facility in its entirety; 

• itemised receipts or bank statements, to demonstrate that Program funding has been expended in accordance with the Funding Agreement; 

• information in support of supplied quotes, the engagement of local suppliers and the extent of local content; and

• if a replacement system is installed, evidence of the destruction of the old system.

5.6 COMPLIANCE

The Department will also be responsible for reviewing grant payments and auditing local governing authorities in accordance with the Program Guidelines and Terms and Conditions of the Funding Agreement. 

Auditing will be carried out on an exceptions basis or where compliance issues are uncovered. Compliance and audit checks of the Program may include:

-certification by licensed installers of the details of the solar or heat pump hot water system;

-STC eligibility; and

-spot checking using satellite/aerial imagery to verify installation.

The Department will take appropriate action where it is apparent that a deliberately false claim has been made. Providing false or misleading information is a serious offence and carries penalties under the Criminal Code Act 1995. 

5.7 ONGOING RESPONSIBILITY 

Local governing authorities that apply for a grant under the Program assume responsibility for the ongoing maintenance and upkeep of any solar hot water or heat pump systems installed under the terms of the Funding Agreement. 

The Department does not accept responsibility for technical (including faulty systems) or workmanship issues encountered with solar hot water or heat pump systems supplied and installed by third party suppliers under the Program.

6. ADDITIONAL INFORMATION 

6.1 CONTACTS AND COMPLAINTS

Further information regarding the Program is available on the Department’s website at www.climatechange.gov.au/government/initiatives/lgeep.

Or you may contact the Department as detailed below:

Email: [email protected]

Phone: 1800 463 008

Mail: Local Government Energy Efficiency Program Energy Branch Department of Climate Change and Energy Efficiency GPO Box 854 CANBERRA ACT 2601

Any complaints regarding the Program should be lodged using the contact details above. Complaints will be handled in accordance with the Department’s complaints handling mechanisms. The Department has a formal complaints service and local governing authorities can also lodge a complaint by phoning 1800 057 590 or via email [email protected].

6.2 REVIEW OF DECISIONS

Applicants may request a review of a decision made under this Program, but must do so within 28 days of the date on which they were notified about the decision. 

Upon receiving a request for review, the Department will conduct an internal review of the decision and make a determination as to whether the original decision should be affirmed, set aside, or varied. 

6.3 PRIVACY AND CONFIDENTIALITY 

The use and disclosure of information provided by applicants for the assistance under the Program is regulated by the relevant provisions and penalties of the Public Service Act 1999, the Privacy Act 1988, and the Freedom of Information Act 1982, the Crimes Act 1914, and the general laws of the Commonwealth of Australia.

The information contained in applications will be regarded as private and confidential and will be treated as such by the Department. This is subject to the operational need to provide applications to assessors, and any statutory or legal requirements to provide information to the Parliament and other organisations, for audit, law enforcement, investigative or other purpose. 

As part of the assessment of an application, the Department may need to consult with, and provide material from the application to other government agencies or authorities, other organisations and/or relevant individuals, in order to substantiate any claims or statements made in the application form, or to otherwise assist in the assessment of the application. If this occurs, the Department will endeavour to ensure that the parties who are consulted observe appropriate confidentiality provisions.

Following approval of an application, the broad details of an application will be disclosed by the Department for purposes such as promoting the program and reporting on its operation and policy development. This information may also be used in answering questions in the Commonwealth Parliament and its committees. In addition, the selected project information may be made publicly available. Public announcements may include the:

-name of the successful local governing body;

-title and description of the project and its intended outcomes; and

-value of the project and the amount of Commonwealth funding awarded.

7. GLOSSARY

7.1 GLOSSARY OF TERMS

ATTACHMENT A [...]

www.cleanenergyfuture.gov.au