Meta Data

Draft:

Revision of previous policy?:

Effective Start Year:

2007

Scope:

National

Document Type:

Overarching Policy

Economic Sector:

Energy

Energy Types:

All, Other

Issued by:

Department of the Environment and Water Resources

Source:

Department of the Environment and Energy

File:

Energy Efficiency in Government Operations (EEGO) Policy

Overall Summary:

The Energy Efficiency in Government Operations (EEGO) Policy is an updated version of the Australian Government’s 1997 policy Measures for Improving Energy Efficiency in Commonwealth Operations.

Efficiency

EE priorities:

AIM: To improve energy efficiency, and consequently reduce the whole of life cost and environmental impact of Government operations, and by so doing, lead the community by example.

EE targets:

This 2006 policy: > sets the strategy for Australian Government agencies to achieve revised energy intensity portfolio targets by the 2011-2012 financial year: 7,500 Megajoules (MJ)/person/annum for office tenant light & power; and 400 MJ/m2/annum for office central services; [...] GOALS 1. Overall reduction in the Australian Government’s energy intensity of its operations by 2011, including:> 25 per cent reduction in energy intensity for office – tenant light and power; and > 20 per cent reduction in energy intensity for office – central services. [...]

EE building standards:

This 2006 policy: [...] > provides an enhanced proactive management framework for agencies to identify, monitor and manage their energy consumption by specifying minimum energy performance standards (generally 4.5 stars on the Australian Building Greenhouse Rating (ABGR) or equivalent scheme) in contracts, leases and other relevant documentation for new buildings, major refurbishments and new leases over 2,000m2; [...]

Full Document Text

NOTE: Some content may not display correctly, including tables and figures. See PDF for full details.

ENERGY EFFICIENCY

IN GOVERNMENT OPERATIONS (EEGO) POLICY

Published by the Australian Greenhouse Office, in the Department of the Environment and Water Resources.

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth, available from the Department of the Environment and Water Resources. Requests and inquiries concerning reproduction and rights should be addressed to:

Assistant Secretary

Energy Efficiency and Community Branch

Department of the Environment and Water Resources

GPO Box 787

CANBERRA ACT 2601

IMPORTANT NOTICE – PLEASE READ

While reasonable efforts have been made to ensure that the contents of this publication are factually correct, the Commonwealth does not accept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of, or reliance on, the contents of this publication. ISBN 978-1-921297-85-4

Printed on an environmentally responsible paper, manufactured under the environmental management system ISO 14001 with Elemental Chlorine Free (ECF) pulps sourced from sustainable, well managed forests.

ENERGY EFFICIENCY

IN GOVERNMENT OPERATIONS (EEGO)

POLICY OVERVIEW

Energy Efficiency in Government Operations (EEGO) is	The Department of Defence will:
an updated version of the Australian Government’s	> d evelop a comprehensive energy management strategy;
1997 policy Measures for Improving Energy Efficiency in	and
Commonwealth Operations.	> p rogressively install sub-meters at Defence bases as part
This 2006 policy:	of a coordinated programme in order to better monitor
> sets the strategy for Australian Government agencies to	and manage energy and to more accurately report
achieve revised energy intensity portfolio targets by the 2011-2012 financial year: 7,500 Megajoules	against specific end use categories.
(MJ)/person/annum for office tenant light & power; and	DEW will:
400 MJ/m²/annum for office central services;	> a ggregate, summarise and analyse the verified data and
> provides an enhanced proactive management framework for agencies to identify, monitor and manage their energy consumption by specifying minimum energy performance standards (generally	produce a whole-of-government energy performance report, Energy Use in the Australian Government’s Operations, to be tabled in Parliament before the last working day of April of each year;
4.5 stars on the Australian Building Greenhouse Rating	> u ndertake scoping studies to identify energy efficiency
(ABGR) or equivalent scheme) in contracts, leases and	opportunities and develop energy intensity targets for
other relevant documentation for new buildings, major	public buildings, laboratories and computer centres;
refurbishments and new leases over 2,000m²;	> d evelop an existing building upgrade strategy to
> provides flexibility for exceptions where it is not	improve the energy efficiency of existing buildings and
practical or cost effective to achieve 4.5 stars ABGR	assist agencies in meeting energy intensity portfolio
or equivalent;	targets; and
> actively engages all stakeholders through industry	> u ndertake periodic reviews of the progress of the policy
workshops and energy forums and assists them to	with results and recommendation to be brought to
identify the whole of life and environmental benefits of adopting energy efficiency initiatives; > offers day to day support for agencies through a help desk function to clarify reporting requirements, energy efficiency advice and technical issues; and > includes a comprehensive communications and existing building strategy to identify and address misinformation about energy efficiency.	Government in 2008.

Secretaries of departments and heads of budget-dependent agencies will:

> report their organisations’ energy performance to their respective Ministers and the Department of the Environment and Water Resources (DEW) annually;

> determine how they can most effectively adopt the minimum energy performance measures to meet their individual needs and the revised portfolio energy intensity targets.

TAbLE OF CONTENTS

POLICY OVERVIEW 1 1 AIM _______4

2 GOALS _________________________________________________________________________________4 3 SCOPE _________________________________________________________________________________4 4 BACKGROUND __________________________________________________________________________5

4.1 Policy context ________________________________________________________________________5

4.2 Why is energy efficiency important? _______________________________________________________5

4.3 What is good energy management? ________________________________________________________5 5 KEY FEATURES __________________________________________________________________________6

5.1 Achievable energy intensity targets and performance standards __________________________________6

5.2 Lease-based partnership management model _______________________________________________6

5.3 Enhanced value for money ______________________________________________________________6

5.4 Improved consistency across Government ___________________________________________________6

5.5 Flexibility to integrate other sustainability outcomes and reporting frameworks _____________________6

5.6 Comprehensive education & awareness programme ___________________________________________7

5.7 Practical tools available to support implementation ___________________________________________7 Table 1 – Summary of 2006 EEGO policy _______________________________________________________8

6 ANNUAL ENERGY PERFORMANCE REPORTING ________________________________________________10

6.1 Purpose _____________________________________________________________________________10

6.2 Submission of agency data ______________________________________________________________10

6.3 Review of agency data __________________________________________________________________11

6.4 Reporting to Ministers __________________________________________________________________11 6.5 Energy Use in the Australian Government’s Operations _________________________________________11 7 ENERGY INTENSITY PORTFOLIO TARGETS ____________________________________________________12

7.1 Purpose _____________________________________________________________________________12

7.2 Revised portfolio targets ________________________________________________________________12

7.3 Calculation of energy intensity based on agency reports ________________________________________12 7.4 Specific Department of Defence requirements _______________________________________________12 Table 2 – Description of end-use categories and energy intensity targets ______________________________14 8 MINIMUM ENERGY PERFORMANCE STANDARDS ______________________________________________16

8.1 Purpose _____________________________________________________________________________16

8.2 New office buildings & major refurbishments ________________________________________________16

8.3 New lease agreements & Memorandums of Understanding (MOUs) _______________________________16

8.4 Ongoing energy management framework ___________________________________________________17

8.5 Exceptions – Lower energy performance standards ____________________________________________17

8.6 Existing buildings - lease extensions, voluntary improvement plans & minor refurbishments ___________18

8.7 Appliances & office equipment ___________________________________________________________18

8.8 Energy procurement ___________________________________________________________________18

8.9 Funding options & alternative project delivery mechanisms _____________________________________18

Table 3 – Minimum Energy Performance Standards for new Office Buildings, Major Refurbishments and

new leases ______________________________________________________________________19

Table 4 – Green Lease Schedule/Australian Building Greenhouse Rating, reporting & performance validation requirements for new leases ________________________________________________________20

9 DEW POLICY ADMINISTRATION RESPONSIBILITIES _____________________________________________21

9.1 Programme management _______________________________________________________________21

9.2 Communications ______________________________________________________________________21

9.3 Evaluation & reporting _________________________________________________________________21

ANNEX A – ANNUAL ENERGY CONSUMPTION REPORTING GUIDELINES _________________________________22

A1 What must be reported? _________________________________________________________________22 A2 How to estimate energy consumption rates when actual data is not available _______________________22 A3 Changes in levels of activity within organisations ______________________________________________22 A4 Changes in administrative responsibilities ___________________________________________________22

ANNEX B – CONSISTENCY WITH OFFICE ACCOMMODATION MINIMUM ENERGY

PERFORMANCE STANDARDS __________________________________________________________23

B1 Purpose _____________________________________________________________________________23

B2 Agency self assessment __________________________________________________________________23

B3 Consultation with DEW __________________________________________________________________23

Table 5 - Policy checklist for new office buildings, major refurbishments & new leases ≥ 2 years (including

options for extension) ______________________________________________ 24 ANNEX C – POSSIBLE EXCEPTIONS TO MINIMUM ENERGY PERFORMANCE STANDARDS 26

C1 Purpose _____________________________________________________________________________26

C2 Process for seeking DEW endorsement _____________________________________________________26

C3 Short term leases (< 2 years) _____________________________________________________________26

C4 Medium term leases (2 – 5 years) _________________________________________________________26

C5 Lease options ________________________________________________________________________26

C6 Location constraints ___________________________________________________________________26 C7 Heritage, security or other constraints _____________________________________________________26 C8 Tenancy fit-out _______________________________________________________________________27

C9 Exceptional circumstances ______________________________________________________________27

ANNEX D – DEFENCE ENERGY MANAGEMENT STRATEGY _____________________________________________28

D1 Purpose ____________________________________________________________________________28

D2 Background _________________________________________________________________________28

D3 Comprehensive portfolio energy management strategy ________________________________________28

D4 Defence bases metering, monitoring & management programme _______________________________28

ANNEX E – EEGO IMPLEMENTATION SUPPORT TOOLS _______________________________________________29

¹ Budget dependency is defined as deriving more than half of departmental/agency funding either directly or indirectly from Commonwealth funds. For example, an agency is indirectly budget dependent if it derives most of its funding by selling its services to other budget dependent agencies.

4 bACkGROuNd

4.1 POLICY CONTEXT Energy should be planned and managed in the same way as

Energy Efficiency in Government Operations (EEGO) is an other important operational resources of an organisation,

updated version of the 1997 policy Measures for Improving such as personnel, budgets and information technology

Energy Efficiency in Commonwealth Operations. The 1997 equipment. This is consistent with the Commonwealth

policy was one of a number of greenhouse gas emission Procurement Guidelines, January 2000, and its emphasis on

reduction policies announced by the Prime Minister value for money and whole of life costing.

in Safeguarding the Future: Australia’s Response to Good energy management is a function of:

Climate Change. > i nformed energy and building managers, employees,

This 2006 policy retains the original emphasis on tenant advocates and other service providers;

progressively improving overall agency energy performance > s enior management support;

through annual energy intensity reporting and minimum

efficiency requirements. However, the office building > l eases, performance agreements and other contracts

performance standards and portfolio energy intensity that acknowledge the joint responsibilities of targets have been adjusted to take into account recent developers, property owners, building managers and improvements in energy efficiency technologies and rating tenants and provide an appropriate profit or tools. The energy performance standards will also be other incentive or obligation to achieve energy expanded in the future to cover a broader range of end efficiency outcomes;

use categories such as laboratories, public buildings and > s ystems-based management structures that address ^{computer centres.}staff turnover and competing priorities;

^{A comprehensive management framework has been}> a ccess to energy data, fault reports and other records developed that incorporates energy efficiency standards that can be used to negotiate costs and detect into Australian Government leases and other procurement problems; and activities. While the focus is on energy, other sustainability

and help to meet its greenhouse gas emission reduction 4.0>m eet revised energy intensity portfolio targets.

outcomes such as water conservation and waste reduction > r egular review and reporting of actual performance can be integrated into this framework now or in the future. and targets.

The 2006 policy is supported by practical implementation tools The 2006 EEGO policy will facilitate good energy and an ongoing communications and education strategy. management by setting out enhanced processes and frameworks that empower Australian Government

4.2 WHY IS ENERGY EFFICIENCY IMPORTANT? _{agencies to:}

Energy use contributes more than 95 per cent of the > a ddress energy efficiency in an holistic manner; Australian Government’s greenhouse gas emissions.

Improved energy efficiency by Australian Government > m anage their current energy budgets more cost agencies will reduce Australia’s total energy consumption effectively; and

targets. It also demonstrates Government leadership and encourages wider market acceptance of related management tools and other efforts to mitigate further climate change impacts. This can be achieved through good energy management and using cost effective methods that do not distort markets or reduce productivity.

4.3 WHAT IS GOOD ENERGY MANAGEMENT?

Good energy management means not using more or paying more for power than is necessary. Improved energy efficiency means providing the same or better energy service by using less or the same amount of energy.

5 kEY FEATuRES

5.1 ACHIEVABLE ENERGY INTENSITY TARGETS	recognises that there is an ongoing relationship between
AND PERFORMANCE STANDARDS	the parties and reduces the need for litigation and penalties
As the 1997 portfolio targets no longer provided an incentive for continuous improvement, more challenging	in resolving disputes.
but achievable targets for office – tenant light and power	5.3 ENHANCED VALUE FOR MONEY
and office – central services have been introduced that are	The policy puts the Australian Government’s value for
to be met by 2011.	money and whole of life costing procurement principles
A number of recent Australian Government office projects have successfully demonstrated that energy efficient buildings up to the equivalent to 4.5 stars on the Australian Building Greenhouse Rating (ABGR) Scheme or other equivalent standard can be achieved with no additional	into action. An improved building energy management framework, regular performance review and enforcement mechanisms can ensure that agencies get what they paid for and that projected energy and dollar savings are actually realised for the life of a building or lease.
upfront cost, using proven technology and well established design and construction methods.	5.4 IMPROVED CONSISTENCY ACROSS GOVERNMENT
While some energy efficiency options involve higher capital	The GLS templates aim to provide consistency in lease
costs, such as better quality insulation and double glazing,	agreements across agencies. They focus on a few
these can often be offset by cost savings achieved in the	essential energy management components to achieve
building as a whole, such as smaller heating, ventilation	and maintain the target ABGR rating with optional
and air conditioning (HVAC) systems or different window:	clauses covering water, waste and other issues. Minor
masonry ratios in exterior walls. Good energy management	variations may be negotiated where agencies have less
practices are required to ensure that buildings operate at	bargaining power or to accommodate occupational health
their potential efficiency level and that ongoing savings are	and safety (OH&S), heritage, security or other special
actually realised.	or conflicting requirements. The GLS will minimise the need for compliance effort through a clear assignment of
5.2 LEASE-BASED PARTNERSHIP	responsibilities and dispute resolution processes.
MANAGEMENT MODEL The 2006 policy acknowledges the need for cooperation between building owners and tenants (and any relevant service providers and contractors). It addresses traditional structural barriers to implementation, such as split incentives between developers, building owners and tenants, by ensuring that the parties with influence over	Other risks have been addressed by providing templates and guides and by focusing on practical and cost-effective approaches. The systems-based approach ensures that good energy management does not depend on the expertise and motivation of individual employees (or contractors) or on pure chance.
key aspects of energy performance obtain some benefit from implementing the improvements. It provides a transparent legal and management framework, the Green Lease Schedule (GLS) to ensure that the parties identify and	5.5 FLEXIBILITY TO INTEGRATE OTHER SUSTAINABILITY OUTCOMES AND REPORTING FRAMEWORKS The GLS framework can be adapted to include clauses that
address problems promptly and efficiently.	cover water and waste management, cleaning contracts,
Attaching a GLS to a lease for a commercial building	alternative transport options and other environmental
obliges both the tenant and building owner to work	management issues.
towards achieving the operational ABGR requirement. The	Agencies are encouraged to integrate their energy efficiency
emphasis is on prevention and rectification, rather than	targets, management procedures and reporting into
retribution. The GLS and Energy Management Plan (EMP)	broader environmental management systems, Greenhouse
templates make it easier to identify problems, work out	Challenge agreements, public environment reports and
who is responsible and ensure that appropriate steps are taken to remedy the situation promptly. This approach	annual reports.^{^[1]}

Note: Agencies should seek legal advice about potential cost impacts, risks and legal/contractual obligations and implications of including other sustainability clauses into Green Lease Schedules and other agreements.

5.0development of strategies for laboratories, public buildings and computer centres. Agencies will receive information updates through agency forums, circulars and the Online System for Comprehensive Activity Reporting (OSCAR) online system.

5.6 COMPREHENSIVE EDUCATION & Key industry groups will be contacted directly and their

AWARENESS PROGRAMME A comprehensive communications strategy has been developed to raise awareness amongst internal & external stakeholders about the 2006 policy requirements and	members will be informed through journal articles and conference presentations. General information about the programme will be available via the AGO website.
Australian Government expectations in relation to energy efficiency. Training and information sessions will also be used to expand agencies’ knowledge of energy management and to build confidence that energy efficiency is a desirable objective and does not have to cost more upfront.^{^[2]}	5.7 PRACTICAL TOOLS AVAILABLE TO SUPPORT IMPLEMENTATION A range of practical resources have been developed to support implementation, including: an energy efficiency building design brief for inclusion in statements of
Communications activities will target:	requirements; generic green lease schedule templates;
> senior managers – in terms of accountability,	energy management plan templates; information
transparency, government energy policy, and hidden	guides; practice notes; and case studies. These include
costs and other risks associated with poor energy	guidance to agencies on raising employees’ awareness and
management practices;	understanding of the importance of energy efficiency and
> professional service providers, such as property lawyers, tenant advocates, engineers, architects and builders;	their responsibilities under relevant tenancy agreements.

> building owners and investors; Most EEGO implementation support tools are available

free of charge via the AGO website or on request from the > energy and building managers and contractors; and OSCAR Help Desk.

> energy suppliers.	Refer to Annex E for an annotated list of EEGO
The EEGO Inter-Departmental Committee (IDC) will continue to play an important consultative role, while joint working parties will be established to provide input to the	implementation support tools or check the AGO website.

TABLE 1 – SUMMARY OF 2006 EEGO POLICY

ANNUAL ENERGY REPORTING REqUIREMENTS

> Continued agency reporting against core energy performance indicators.

> E nergy data and draft summary reports to be submitted to DEW by close of business on the last working day of October each year. Reports to include an explanation of any inconsistencies with the requirements of this policy for new office buildings, major refurbishments & new leases. Thirty days to verify final data and reports, including changes recommended by DEW to address anomalies & gaps.

> E nergy Use in the Australian Government’s Operations to be tabled in Parliament before the last working day of April each year.

ENERGY INTENSITY PORTFOLIO TARGETS

> M inor revisions to some end use category definitions. Updated energy intensity portfolio targets for office buildings to be achieved by June 2011:

7,500 MJ/person/annum for office tenant light & power; and
400 MJ/m²/annum for office central services.

> R ecommendations for specific targets for non-office building categories (including laboratories, public buildings and computer centres) to be developed by June 2008.

> D evelopment of a comprehensive metering, monitoring and energy management strategy by the Department of Defence by the end of 2006. Strategy to be reviewed in 2008. Progress to be reported annually.

> Progressive installation of sub-meters at relevant Department of Defence bases as part of a coordinated programme to facilitate energy performance reporting against specific end use categories by 2011.

> R ecommendations for revised vehicle efficiency targets & appliance procurement procedures to be developed by June 2008.

> H ousing building requirements to reflect upgraded buildings codes and State and local government regulations. No specific targets or other requirements included in the 2006 policy.

MINIMUM ENERGY PERFORMANCE STANDARDS

> Revised efficiency measures for new office buildings, major refurbishments & new leases incorporate:

new minimum energy performance standard – generally 4.5 stars ABGR or equivalent;
no leniency for major refurbishments;
o ption to adopt and report a lower performance standard if 4.5 stars ABGR or equivalent is not practical or cost effective; and
ABGR assessment & evidence of market testing required before exercising a lease option.

> L ease-based management model (Green Lease Schedule – GLS). The GLS is based on mutual obligations and rewards for new buildings & major refurbishments with leases over 2 years & over 2,000m². Separate metering and lighting requirements apply to leases under 2,000m². No transfer of building owner compliance costs to tenants.

> S eparate metering of tenanted areas and central services required in new buildings & leases.

> O ngoing energy management framework (including building management committee & written energy management plan) for new leases > 2 years & >2,000m².

> I ndependent energy performance validation (eg ABGR assessment) required for all new office buildings, major refurbishments and new leases over 2,000m² within 15 months of handover. Annual performance validation required in new leases for office buildings over 2,000m².

> A ppliances must be US EPA ‘Energy Star’ compliant. Power management features to be enabled at the time of supply.

6 ANNuAL ENERGY PERFORMANCE REPORTING

6.1 PURPOSE	> T he number of instances where a required ABGR
The reporting process aims to ensure that departments and	or equivalent performance assessment was not
agencies are aware of how much energy they use and the	undertaken or the relevant ABGR target rating (or
relative efficiency of their energy use.	equivalent) was not achieved in two consecutive years
Individual reports are incorporated into an annual whole-of government energy report (Energy Use in the Australian	for a building over 2,000m² with a lease over two years in length.
Government’s Operations) to produce a simple measure of	The new reporting requirements take effect from the
the total energy consumption of the Australian Government.	2006–2007 reporting year. Agencies will be notified of any
This provides important information about the efficiency	changes to the reporting guidelines via OSCAR.
of energy use by Government and of the rate of progress in improving energy management.	Electronic reporting software, provided by DEW, will be used to facilitate this process. Agencies may use this software to
6.2 SUBMISSION OF AGENCY DATA Each department and agency covered by this policy will forward an energy performance summary report to DEW via	record energy consumption data on a more frequent basis, eg monthly or quarterly, but must only submit the required annual data in their summary report to DEW.
OSCAR by the close of business on the last working day of	Agencies are encouraged to use the ‘Notes’ section to
October each year.	explain unusual energy consumption and to promote
Reports to DEW that are not submitted or verified on time may be excluded from the annual report (Energy Use in the Australian Government’s Operations) and the organisations concerned clearly identified in the report. The energy performance summary will report on the following criteria: > The annual energy consumption data and relevant normalisation factors for all relevant end use categories (as outlined in Annex A). > The number of leases (including pre-commitment leases) signed for office facilities over 2,000m² in tenanted area and longer than two years (including options for extension) that specified less than 4.5 stars ABGR or equivalent and/or did not include all five essential elements of the ‘Green Lease Schedule’. > The number of design and construction contracts signed for new office facilities or major refurbishments over 2,000 m² in tenanted area or office space that specified less than 4.5 stars ABGR or equivalent. > The number of DEW-endorsed exceptions to office accommodation MEPS (over 2,000m² in area and longer than two years including options for extension).	examples of voluntary improvements & individual facility performance above 4.5 stars ABGR or equivalent.

6.3 REVIEW OF AGENCY DATA

DEW will review each agency’s energy performance summary report for completeness and accuracy. DEW will then forward a final energy performance summary report to the agency, including any proposed changes that address identified anomalies or missing information.

Agencies must verify their final energy performance summary report (including agreed changes) within 30 days of the date on which it was provided by DEW.

6.4 REPORTING TO MINISTERS

Secretaries of departments and heads of budget-dependent agencies will report the energy performance of their organisations to their Minister annually. As a minimum, the report will include total energy consumption for the previous financial year and progress towards achieving the energy intensity targets described in this policy.

Agencies are encouraged to validate their data before reporting performance to their Minister as final energy performance summary reports cannot be changed after they have been verified by agencies.

6.5 E NERGY USE IN THE AUSTRALIAN GOVERNMENT’S OPERATIONS

DEW will aggregate, summarise and analyse the verified data and produce the whole-of-government energy performance report (Energy Use in the Australian Government’s Operations), to be tabled in Parliament before the last working day of April each year. The report will include estimates of unreported central services energy consumption and total greenhouse gas emissions.

Agencies may also voluntarily include their energy performance data and energy efficiency initiatives in their annual report or Greenhouse Challenge and other sustainability reports.

Refer to Annex A for more details about annual energy consumption reporting guidelines.

7 ENERGY INTENSITY PORTFOLIO TARGETS

7.1 PURPOSE

Energy efficient new buildings and major refurbishments can help to balance the effect of less efficient buildings as the energy intensity targets represent an average across the whole portfolio. Minor refurbishment of lighting systems and operating plant can improve the performance of less efficient buildings, although their cost effectiveness is influenced by the length of time remaining before the lease expires or major work is undertaken. Review of operating times, control settings, fault reports and metering data often reveals potential savings at little or no cost. Purchasing energy efficient appliances and office equipment also plays a key role in meeting the revised targets.

In order to progressively reduce portfolio energy intensity levels, it is highly recommended that agencies:

> discourage use of exceptions (eg. meet minimum 4.5 stars ABGR or equivalent) for all new buildings, major refurbishments & new leases;

> consider cost effective voluntary improvements & incorporation of energy efficiency measures into minor refurbishments (eg tenancy fit out, replacement of plant and equipment (P&E))

> purchase energy efficient appliances & office equipment;

> improve energy management systems (eg review building management system settings, monitor & report faults, analyse digital metering data, commission ABGR assessment or energy audit);

> install separate digital metering to increase the accuracy of reported energy use, isolate energy intensive facilities, such as computer centres, and avoid over-estimation using the EEGO formula based on floor area;

> incorporate energy efficiency considerations into service contracts eg maintenance, cleaning, security, facilities management; and

> introduce internal reporting mechanisms that provide early notification of problems, such as energy and cost blowouts, potential breaches of lease obligations and inconsistencies with policy requirements.

Energy intensity targets, in contrast to absolute energy consumption data, allow for changes in the size and activity levels of organisations and can be used to compare consumption rates over time and between departments and agencies. They will also highlight departments and agencies that have improved their energy performance as other elements of this policy are implemented and provide an incentive for continuous improvement.

7.2 REVISED PORTFOLIO TARGETS

Subject to the two-year review of the program in 2008, it is expected that all organisations will be performing at, or below, the target energy intensities in the 2011–2012 financial year.

DEW will conduct scoping studies to develop energy intensity targets for laboratories, public buildings and computer centres and passenger vehicles in consultation with departments and agencies reporting within these categories. Departments and agencies will be notified via OSCAR about new targets and relevant compliance dates when they have been agreed.

7.3 CALCULATION OF ENERGY INTENSITY BASED ON AGENCY REPORTS

Energy intensity is calculated automatically by the reporting software using the reported energy consumption data and should estimate their energy consumption using the relevant normalisation factors, such as building floor area, 7.0For more information about reporting against these number of people, and kilometres travelled. Each end categories and targets, contact the OSCAR help desk. use category has been allocated the indicator that best represents its energy efficiency, such as MJ/person.annum, 7.4 SPECIFIC DEPARTMENT OF DEFENCE

MJ/m².annum or MJ/km.annum. REqUIREMENTS

^{Where metering data is not available, agencies}_>The Department of Defence will:_develop a comprehensive energy management strategy

by 2006;

following formulae:
> Tenant Light & Power – 50 per cent of electricity pro	> e stablish a pilot metering, monitoring and
rata to the portion of total floor area or 500 MJ/m² if no	management programme for select Defence bases;
other data is available.	> r eport progress annually; and
> Central Services – 50 per cent of electricity and 100 per cent of gas.	> r eview the strategy in 2008 and make a recommendation to Government for a roll out of the pilot programme to other Defence bases responsible for

Note: Estimates for non-metered premises based on floor up to 80 per cent of the Department’s energy use.

areas are likely to raise reported energy intensity levels as For more information about the Department of Defence’s the formulae slightly overestimate energy consumption energy management strategy and metering, monitoring & rates. Agencies are therefore advised to obtain actual management programme for Defence bases, see Annex D. metering data wherever possible.

TABLE 2 – DESCRIPTION OF END-USE CATEGORIES AND ENERGY INTENSITY TARGETS

End-use category Description Key indicator Target
Office – Tenant Light	Energy used for tenant operations in buildings whose primary	MJ/person/annum	7,500 MJ/
& Power	function is office space. It includes tenancy lighting, office		person/
	equipment, supplementary air conditioners, boiling water units etc. The key indicator recognises that overall energy efficiency is a combination of the efficient use of space as well as the energy efficiency of the space. If not directly measured, energy consumption is approximately equal to 50% of electricity pro rata to the portion of total floor area, or 500 MJ/ m² if no other data is available.		annum
Office – Central Services	Energy used in the provision of services in office buildings common	MJ/m²/annum	400 MJ/m²/
	to all tenants. It includes building air conditioning, lifts, security & lobby lights, domestic hot water etc. If not directly measured, energy consumption is approximately equal to 50% of electricity and 100% of gas.		annum
Public Buildings	Energy consumed in buildings visited by the public in significant numbers. Typical buildings in the category are public libraries, museums or art galleries.	MJ/m²/annum
Laboratories	This category covers all energy use in buildings which, as their primary function, are used as laboratories.	MJ/m²/annum
Computer Centres	Energy consumed in buildings or parts thereof containing computer centres (where separately metered).	MJ/m²/annum
Climate Controlled Stores	Relates to buildings that are required to maintain 24-hour climate controlled conditions for the protection of the goods they house. This includes archives, safety equipment stores, art stores etc.	MJ/m²/annum
Other Buildings	This category is for facility types that do not fit the other buildings categories, eg. simple storage sheds, radio transmitter buildings. The actual type of building must be defined in the report.	MJ/m²/annum
Other Uses	Energy consumption of facilities that do not fit any of the	No key indicator
	above categories.	as category is too diverse

TABLE 2 – DESCRIPTION OF END-USE CATEGORIES AND ENERGY INTENSITY TARGETS (cont.)
End-use category Description Key indicator Target
Passenger Vehicles	Energy consumption of passenger cars, light commercial vehicles and mini buses and includes the consumption of Senior Executive Service (SES) vehicles.	MJ/km/annum
Other Transport	Energy consumption of all forms of transport other than passenger vehicles. It includes transport systems engaged exclusively for operational purposes. It does not include energy used for general public transport such as airlines, trains and buses.	No key indicator as category is too diverse
Defence Bases	Covers all buildings and facilities that are within established Defence bases. It might include other building categories unless they are separately measured. It does not include office buildings and stores outside bases that must be reported under the appropriate category.	GJ
Defence Operational Fuels	This category covers the fuel used in Defence Operations for aircraft, tanks, ships, vehicles etc.	No key indicator as category is too diverse and dependent on operational requirements
Law Courts	This category includes all types of court facilities, whether a relatively small space in a larger building, or housed in a specialised building.	MJ/m²/annum
Antarctic Bases	Covers all buildings and facilities at Antarctic Bases. Does not include transport at Antarctic Bases.	GJ

8 MINIMuM ENERGY PERFORMANCE

STANdARdS

8.1 PURPOSE

office buildings and appliances. The focus is on being cost	Separate on market status digital metering of tenanted
effective from day one. This is most likely to be achieved	areas and central services (and computer centres where
when energy efficiency is considered from the beginning of	cost effective) is required in all new buildings and
a project and is incorporated into other design, construction	major refurbishments.
and procurement proposals.	An independent ABGR performance assessment must be undertaken for all new buildings and major refurbishments
8.2 NEW OFFICE BUILDINGS & MAJOR	within 15 months of handover.
REFURBISHMENTS	DEW will undertake a scoping study of the impact of
All new and substantially refurbished buildings, whether	computer centres on energy management in government
owned or leased by the Australian Government, must meet	office buildings and will provide future management and
minimum energy performance standards based on the	reporting recommendations to the 2008 policy review.
Australian Building Greenhouse Rating Scheme (ABGR) or other approved scheme (Refer to Table 4 for details)⁴. These standards take effect immediately.	Refer to Annex B for more information about ‘Consistency with office accommodation minimum energy performance standards’.

Minimum energy performance standards aim to encourage agencies to progressively improve their energy performance and meet the revised energy intensity targets through the procurement and ongoing management of energy efficient

Lower performance standards or variations to lease requirements may be permitted where it is not cost effective or practical to achieve the minimum 4.5 stars ABGR or equivalent standard. (Refer to ‘Exceptions’ below).

For more information about the design and construction

For the purposes of this policy, a ‘major refurbishment’ of energy efficient office buildings, refer to Considerations

includes work that impacts at least 2,000m² for incorporating energy efficiency into requirements for

and represents:

Australian Government owned and leased buildings (DEW > over 50 per cent of the base building, such as changes 2006) or ESD Design Guide for Australian Government to the building envelope, HVAC system, other plant &

Buildings (DEW 2005). See Annex E for more details.

equipment, and common areas; and/or

> over 50 per cent of the tenanted area, such as changes

to workstation layout, lighting, switching, floor and 8.3 NEW LEASE AGREEMENTS &

window dressings, and office appliances MEMORANDUMS OF UNDERSTANDING and equipment. (MOUs)⁵

All lease agreements and MOUs for new office buildings, major refurbishments and new leases over 2,000m² must include:

> a mutual obligation to achieve and maintain the relevant ABGR or equivalent performance standard;⁶

> a nnual ABGR (or equivalent) performance validation by an independent assessor;

⁴The Australian Building Greenhouse Rating (ABGR) Scheme has been selected as the preferred rating tool due to its broad acceptance by the industry and access to a low cost independent performance certification scheme. Agencies will be advised of other approved schemes that meet similar criteria via OSCAR. Contact DEW to have an alternative scheme recognised by this policy.

⁵MOUs are used when one government department/agency leases premises from another department/agency.

⁶This obligation should also be extended to facility managers, tenant advocates, maintenance contractors, cleaners, security and other relevant sub-contractors. Also note that the type of lease is relevant, eg gross leases provide a financial incentive for the building owner to select energy efficient plant and equipment (P&E) and to operate it in a way that minimises energy consumption of central services but not necessarily tenanted areas. Net leases should require building owners to consult with tenant on selection of P&E.

> separate on market status digital metering of tenanted	> e stablish an internal energy or building management
areas and central services (and computer centres where	committee; and
cost effective);^{^[3]}	> d evelop an energy management plan.
> establishment of a formal management committee comprising both tenant and building owner representatives (or integration into an existing building management committee);^{^[4]}	Ongoing energy management provisions are also highly recommended for buildings that are owned and occupied by the agency (i.e. not leased) and in existing leased buildings where this is cost effective and likely to facilitate
> development of an Energy Management Plan outlining minimum procedures required to maintain the relevant	energy performance or reporting improvements.

performance standard; and

An effective ongoing energy management framework

> remedial action/dispute resolution clauses. ensures that the building will achieve and maintain its potential energy performance standard. Most buildings

Departments and agencies must note in their annual energy operate well below their design rating unless there is a intensity report if any of these elements were not included clear delineation of tenants’ and building owners’ roles in a lease for a building over 2,000m² and with a lease term

& responsibilities; and processes to monitor, review and of over two years. enforce achievement of specified performance standards.

For more information about ongoing energy management

The Green Lease Schedule (GLS) templates are designed to procedures, an energy management plan template and facilitate implementation and ongoing compliance with checklists, refer to the Energy management guide for the relevant energy performance standard – otherwise

Australian Government owned and leased buildings savings are unlikely to be realised. The five essential

(DEW 2006). See Annex E for more details. elements of a GLS are:

> agreed target ABGR or equivalent performance standard (including annual assessment);

8.5 EXCEPTIONS – LOWER ENERGY

> separate digital on market status metering; PERFORMANCE STANDARDS

> building management committee (BMC); Short term leases (i.e. less than two years including options)

do not require any specific energy performance standard.

> energy management plan (EMP); and These are deemed to be consistent with the policy

> remedial action/dispute resolution clauses. (regardless of their level of energy performance) and do not need to be reported.

Refer to Annex B for more information about ‘Consistency

with office accommodation minimum energy performance standards’

In all other cases where achieving 4.5 stars ABGR or equivalent may be impractical or not cost effective, agencies or their representatives may submit a proposal for a lower

For more information about green lease schedules, obtain a copy of the Green Lease Schedule (GLS) templates & practice

energy performance standard to DEW for consideration.^{^[5]}

notes. See Annex E for more details.

While exceptions may apply, lower energy performance standards affect future property operating expenses and

8.4 ONGOING ENERGY MANAGEMENT average portfolio energy intensity levels. They also take

FRAMEWORK the same amount of time and other resources to properly

Lease agreements for buildings over 2,000m² must include manage a less energy efficient building.

an obligation to:	Refer to Annex C for more information about possible
> commission an annual independent ABGR (or equivalent) performance assessment;	exceptions & the DEW endorsement process.

> review metering data and other building reports at least quarterly;

8.6 E XISTING BUILDINGS – LEASE	8.7 APPLIANCES & OFFICE EqUIPMENT
EXTENSIONS, VOLUNTARY IMPROVEMENT	Departments and agencies must:
PLANS & MINOR REFURBISHMENTS	> e nsure that office equipment purchased complies
Agencies are encouraged to obtain an ABGR or other energy	with the US EPA ‘Energy Star’ standard, where such
performance assessment and develop energy management	equipment is available, fit for the purpose and cost
plans for owned and leased existing buildings, especially	effective; and
where refurbishment or lease renewals are not planned before 2011. While agencies are strongly encouraged to identify and	> e nable power management features at the time of supply.

implement cost effective energy improvements (such as

Purchasing energy efficient appliances and office

lighting system upgrades, installation of separate digital equipment, such as computers, fridges and photocopiers,

metering and plant and equipment replacement), all plays an important role in achieving 4.5 stars ABGR for

buildings will eventually reach the end of their current tenant light & power.

lease or require a major refurbishment.^{^[6]}

DEW will develop an existing building upgrade strategy by
2008 to improve the energy efficiency of existing buildings and	8.8 ENERGY PROCUREMENT
assist agencies in meeting energy intensity portfolio targets.	Departments and agencies are strongly encouraged to
DEW will provide training and guidance on developing agency-specific voluntary improvement plans for existing government owned & leased buildings.	undertake annual tariff reviews and to install separate revenue meters for their tenanted areas.

Note: This 2006 policy does not include any specific requirements for the purchase of ‘green power’.

Voluntary upgrades or replacement of inefficient lighting

Departments and agencies may voluntarily purchase

systems and plant & equipment can save agencies renewable electricity from retailers but do not qualify for

many thousands of dollars in terms of energy and credits towards their buildings’ ABGR ratings or energy

maintenance costs. They can also play an important role intensity targets. They should ensure it is compliant

in helping agencies to meet their revised energy intensity with the updated requirements in the National Green

portfolio targets.

Electricity Accreditation Scheme.

They generally have payback periods of between two and ten years but are more cost effective when

they are combined with other work, such as a minor 8.9 F UNDING OPTIONS & ALTERNATIVE refurbishment. Many factors influence the viability of PROJECT DELIVERY MECHANISMS voluntary improvements, such as: Agencies are encouraged to explore funding options > the length of the remaining lease term; and alternative project delivery mechanisms, such as energy performance contracts, grants and private public

> ‘make good’ and other clauses;

partnerships (PPP), in order to share costs, risks and benefits > an agency’s bargaining power when negotiating new equitably between relevant parties.

leases or extensions;

> the impact on workplace productivity; Energy performance contracting (EPC) is a form of

> _{the need to address recurrent faults or to replace very}contracting for energy efficiency services or more general facilities improvement. The contractor guarantees a level inefficient equipment; or

of energy consumption savings, modifies the energy-using

> difficulty in meeting portfolio targets. plant at its own expense to achieve the consumption targets, and is repaid over a number of years from the resulting stream of energy cost savings. EPC provides access to private sector capital, technology and technical expertise at minimal up-front cost to the client.

TABLE 3 – MINIMUM ENERGY PERFORMANCE STANDARDS FOR NEw OFFICE BUILDINGS, MAjOR REFURBIShMENTS AND NEw LEASES

TABLE 4 – GLS/ABGR, REPORTING & PERFORMANCE VALIDATION REQUIREMENTS

FOR NEw LEASES

> 2 year lease

C onsult DEW prior to finalising the RFT if 4.5 stars ABGR or an equivalent performance standard is likely to be impractical or not cost effective due to location, heritage, security constraints or other special circumstances. ≤ 2 year lease

•No specific ABGR or GLS requirement applies but separate digital revenue metering is highly recommended.

> 2,000m²Exception sought – < 2,000m²

Not required if ≤ 2 year lease

100% net 50 – 99% net < 50% net lettable area lettable area lettable area

GLS (A) • G LS (B) required • D EW-endorsed • GLS (D) optional
G LS (C) required • B ase Building – GLS & ABGR • A BGR target not
Whole ≥ 4.5 stars ABGR or • T enancy – ^required target or req’d ²building – equivalent equivalent • M ax 10W/m

≥ 4.5 stars • T enancy – ABGR or ≥4.5 stars • I nconsistent for lighting &

ABGR or ≥ 4.5 stars ABGR or equivalent with policy if not separate digital

equivalent equivalent DEW-endorsed metering req’d

RFT includes energy RFT includes energy RFT includes DEW-

RFT specifies performance target performance target < 4.5 endorsed energy

≥ 4.5 stars ABGR or stars ABGR or equivalent performance target & all separate dmetering & lighting igital

equivalent & all key or excludes key elements key elements of relevant

< 10W/m²elements of relevant GLS of relevant GLS GLS (unless < 2 years)

R eport number of DEW-
N o reporting • R eport number of cases

endorsed exceptions requirement as as inconsistent with

R eport as inconsistent if consistent with policy policy not DEW-endorsed

Performance validation obtained Actual performance does not achieve within first 15 months & every energy target rating or performance 12 months thereafter & actual validation not obtained within first

performance achieves energy 15 months and every 12 months

target rating thereafter

Seek appropriate remedy
R eport if target rating not achieved
N o performance validation reporting over following 12 months and/or if requirement target rating is downgraded to below

4.5 stars ABGR or equivalent

R eport number of cases that do not meet lighting & metering req’t

Performance assessment not required

N o performance validation reporting requirement

9 dEW POLICY AdMINISTRATION RESPONSIbILITIES

9.1 PROGRAMME MANAGEMENT > i nforming the market about the Australian

Government’s expectations in terms of energy DEW has responsibility for:

> developing and providing advice on EEGO policy; ^{performance in its operations;}

> advising on consistency of agency activities and > a lerting agencies to the importance of good energy management – including the benefits of tariff reviews, documentation with the policy;

load management and the hidden costs of poor

> providing advice and support to agencies on technical energy management; and/or administrative issues and improvements;

> a ddressing misinformation about the cost and other > developing and refining implementation support tools, barriers to improved energy efficiency; including the Green Lease Schedules;

> s eeking opportunities to collaborate with other > building capacity of agencies, industry and service programmes and organisations with similar or providers to implement the policy through targeted complementary aims; and training and other communication activities;

> u ndertaking ongoing consultation with stakeholders to > encouraging improved metering to enhance building identify communication needs, including information energy management, improve accuracy of agency gaps, research projects (technical or social) and reporting and minimise paperwork; persistent attitudinal barriers.

> consulting with energy intensive departments and key agencies on the development and implementation of

9.3 EVALUATION & REPORTING

this policy; and

> providing advice to the Joint Standing Parliamentary ^{DEW has responsibility for:}

> c ollating and analysing agency energy end-use

Public Works Committee on agency submissions for

intensity data; new buildings and major refurbishment works.

> t abling WOGER in Parliament by the last working day of April each year;

9.2 COMMUNICATIONS

> m onitoring achievement of portfolio targets

DEW has responsibility for: 9.0and consistency with procurement (and energy

> raising awareness of the 2006 policy and management) policy; and agency responsibilities;

> c ompleting mid-term and end of term independent policy reviews in 2008 and 2011 respectively.

ANNEX A — ANNuAL ENERGY

CONSuMPTION

REPORTING GuIdELINES

A1 WHAT MUST BE REPORTED?

Departments and budget dependent agencies must report all of the energy used over which they have direct control. Reports will be on a financial year basis, by fuel type and by end-use category (see Table 2). Energy consumption by fuel type is required to estimate greenhouse gas emissions. Normalisation factors, such as building floor area, number of people, and kilometres travelled, must also be reported where appropriate. Use net lettable area for all office space. Departments and agencies should also give reasons for any major changes in energy use.

A2 HOW TO ESTIMATE ENERGY CONSUMPTION RATES WHEN ACTUAL DATA IS NOT AVAILABLE

This policy recognises that the required information may not be readily available for all end-use categories. For example, tenants in privately-owned office buildings may not have access to energy consumption data for the building’s central services (eg air conditioning, lifts). In some cases, even the tenant light and power is not measured.

In Commonwealth-owned office buildings, the total energy use of the building is always available but central services energy use may not be metered separately from tenant light and power energy use.

Tenant light and power energy consumption must always be reported. If this information is not directly available, energy consumption for the space can be estimated per unit area as described in Table 2. Where only the total building consumption is known, estimation formulae are also given to apportion energy consumption from central services and tenant light and power to individual tenants.

Central services energy use will, wherever possible, be reported by the organization that is directly responsible for paying the bill. Central services energy use, for which private sector owners are responsible and which is factored into rent, will not normally be available. However, where a tenant is the sole occupant of a building, and the lease agreement requires the tenant to pay the total energy bill for the building, tenant organisations must report the central services energy use. In Commonwealth-owned buildings, the managing organisation will report the central services energy use.

The estimated consumption rate is set slightly above the target figures to provide an incentive to install meters to measure actual energy use. Lack of adequate metering presents a significant disincentive to the implementation of energy saving measures and prevents effective energy management.

A3 CHANGES IN LEVELS OF ACTIVITY WITHIN ORGANISATIONS

If annual normalisation factors, such as floor area and staff numbers vary throughout the reporting year, they will be averaged to equivalent full year factors. This is achieved by summing the normalisation factors that prevail at the end of each month and then dividing by 12. This calculation applies only to significant changes in normalisation factors and department/agencies should use discretion in deciding when it is to be applied.

For example, an occupancy of 500 people for 9 months and 1000 people for 3 months would have an equivalent full year average of 500×9/12+1000×3/12 which equals 625 people. Or, as another example, 500m² occupied for 3 months is equivalent to 500×3/12 which equals 125m² for a full year.

A4 CHANGES IN ADMINISTRATIVE RESPONSIBILITIES

Departments and agencies can be created or abolished, or may gain and lose functions or operational units as a result of administrative changes. When reporting energy use, departments and agencies must report on their structure as it exists on 30 June each year as if it had existed for the whole year. The receiving organisation should liaise with the organisation that is losing the unit to obtain energy data for the entire year. In some cases energy consumption may be impossible to obtain and will need to be estimated by the receiving organisation.

Under this method, if an operational unit is abolished or sold part way through the year, its energy consumption is unreported; a similar methodology is applied to buildings that are sold during the reporting year. This anomaly is accepted in the interests of reporting simplicity.

For example, Department A may lose an operational unit part way through a financial year but gain two other units from departments B and C. Department A makes no report on the energy use of the unit that it lost but reports on the full year’s energy use of the two operational units that it gained. Likewise Departments B and C make no report on the units that they lost.

ANNEX b — CONSISTENCY

WITH OFFICE

ACCOMMOdATION

MINIMuM ENERGY

PERFORMANCE STANdARdS

B1 PURPOSE

This guidance note outlines the process for assessing the consistency of office building development proposals for new buildings and major refurbishments and all new lease proposals with the Energy Efficiency Government Operations (EEGO) Policy.

B2 AGENCY SELF ASSESSMENT

An EEGO Request for Tender (RFT) Checklist is provided as a rough guide to help agencies check that all relevant documentation related to new office buildings, major refurbishments and new leases is consistent with this policy.

Refer to Table 5 – Policy checklist for new office buildings, major refurbishments & new leases ≥ 2 years..

B3 CONSULTATION WITH DEW

If it is likely to be impractical or not cost effective to achieve 4.5 stars ABGR or an equivalent energy performance standard, then the agency should consult DEW to discuss whether an exception to this policy applies.

Agencies may seek advice from DEW at the draft RFT stage for any development or lease proposals over 2000m² and over 50 per cent of the net lettable area of a building or development. Agencies need to allow up to five working days in their timeline for this assessment process.

DEW-endorsed exceptions are considered to be consistent with this policy but must still be included in the notes section of the agency’s annual energy intensity report for the financial year in which leases or contracts are signed. Lower performance standards that are not endorsed must be reported as being inconsistent with this policy.

Refer to Annex C for more information about possible exceptions for short term leases and location, heritage or security or other special circumstances.

TAbLE 5 – POLICY CHECkLIST FOR NEW OFFICE buILdINGS, MAJOR REFuRbISHMENTS & NEW LEASES ≥ 2 YEARS (INCLudING OPTIONS FOR EXTENSION)

For buildings over 2000 m², does the RFT and other Y/N Notes relevant documentation require:
• T he base building to achieve a design rating of at least 4.5 stars ABGR or equivalent? If not, has DEW endorsed a proposal for a lower energy performance standard?		Whole building rating of 4.5 stars ABGR or equivalent is required if the tenant occupies 100% of the building. Base building requirement does not apply where the tenant occupies less than 50% of total net lettable area. No ABGR requirement < 2,000m².
• T he tenantedarea to achieve a design rating of at least 4.5 stars ABGR or equivalent? If not, has DEW endorsed a proposal for a lower energy performance standard?		No ABGR requirement < 2,000m².
• E vidence of the design’s potential to achieve the specified ABGR rating or equivalent?		Energy modelling or simulation is essential to demonstrate heat loads for HVAC design and should not incur additional costs. Modelling should also be undertaken when changes are proposed during the design and construction stages and at handover/commissioning. Further verification may also be required if seeking a formal environmental accreditation.
• L ighting intensity average of no more than 10W/m² or equivalent (preferably 7.5W/m²)?		Lighting upgrades should not incur an additional upfront cost in new buildings and major refurbishments. If no other work is planned, they are generally cost effective for leases over five years.
• S eparate switching every 250m²and energy efficient lighting controls?		Separate gas and water metering is also recommended for tenancies over 2,000m² and over 50% of total net lettable area.
• G eneral power intensity average (computers & other equipment) of no more than 9W/m² or equivalent?		Ensure compliance of office equipment with US EPA ‘Energy Star’ standard
• S eparate digital on market status electricity metering for tenanted areas and central services?		Separate market compliant revenue metering for the tenanted area is optional but highly recommended for energy procurement purposes.

For buildings over 2000 m², does the lease or MOU^{^[7]} Y/N Notes include a mutual obligation to:

A chieve and maintain the relevant ABGR or equivalent performance standard?
O btain an independent annual ABGR (or equivalent) assessment?
P rovide access to relevant energy data and building reports?
E stablish a formal management committee comprising BMC is not required where tenant occupies both tenant and building owner representatives? less than 50% of total net lettable area.

Representatives need not be located on site.

D evelop an Energy Management Plan outlining the Refer to EMP guide for template minimum procedures required to maintain the relevant and guidance. energy performance standard?
T ake remedial action and resolve disputes?

Are contracts for facility management, tenant advocacy, maintenance, cleaning, security & other relevant services consistent with this obligation?

Does the type of lease provide an incentive for building Note impact of gross or net lease.

owners & tenants to purchase energy efficient plant & equipment and to operate it in a manner that helps both parties to meet their obligations?

For proposed lease extensions that do not specify 4.5 stars AGBR or equivalent, has the agency:

O btained an ABGR or equivalent assessment?
Provided evidence of market testing?
Considered improvement opportunities in consultation with the building owner?

For buildings under 2000m², does the lease, RFT and other relevant documentation specify:

L ighting intensity average of no more than 10W/m² or Separate switching every 250m², energy equivalent (preferably 7.5W/m²)? efficient lighting controls, and general

power intensity average (computers & other equipment) of no more than 9W/ m² or equivalent are optional but highly recommended.

S eparate electricity metering for tenanted areas and Separate market compliant revenue

central services? metering for the tenanted area is also highly

recommended for energy procurement purposes.

ANNEX C — POSSIbLE	C4 MEDIUM TERM LEASES (2 – 5 YEARS) Achieving 4.5 stars ABGR or an equivalent energy
EXCEPTIONS TO	performance standard for medium term leases of between two and five years may not always be cost-effective. Where
MINIMuM ENERGY	this is likely to be the case, agencies should discuss options with DEW to agree an outcome that can be reported as fully
PERFORMANCE	consistent with implementation of the policy.
STANdARdS	C5 LEASE OPTIONS
C1 PURPOSE	Where an agency wishes to exercise a lease option to remain
This guidance note outlines the Energy Efficiency in	in their current premises, it should obtain an independent
Government Operations (EEGO) Policy’s requirements	ABGR or equivalent assessment. Where the building is
when achieving 4.5 stars ABGR or an equivalent energy	found to be operating below the relevant minimum energy
performance standard is impractical or not cost effective.	performance standard, agencies must able to demonstrate
This may be due to factors such as: short lease terms;	that they have conducted market testing of more energy
smaller tenancies; location constraints; or specific heritage,	efficient alternative premises and have tried to negotiate
security or other design or operational imperatives	cost effective energy efficiency improvements, preferably as
that limit agencies’ bargaining power and capacity to	part of a comprehensive voluntary improvement plan.
negotiate energy efficiency improvements in existing or	While exercising a lease option does not generally provide
new buildings.	scope to vary the lease agreement, building owners may agree to capital works or changes to energy management
C2 PROCESS FOR SEEKING DEW ENDORSEMENT When seeking DEW endorsement for a lower performance standard, departments, agencies or their representatives	procedures that reduce their costs, encourage the tenant to extend the lease or provide other benefits, especially if a refurbishment is planned.
should:^{^[8]} > demonstrate to DEW how the specific constraint affects	C6 LOCATION CONSTRAINTS Where an agency has less market power or flexibility due
the achievement of the default minimum energy	to a policy directive to locate in a specific area or site, it
efficiency performance standard (4.5 stars ABGR or	should consult with DEW to consider what can be achieved
equivalent);	in a restricted property market. For example, cheaper
> nominate an appropriate ABGR rating or equivalent	rent in some regional areas may offset the cost of lighting
that can be achieved and maintained over the life of	upgrades or other energy efficiency improvements if the
the lease or building; and	pay back period is less than the lease term, especially where
> provide supporting documentation. DEW endorsement is not required for new leases that are	a refurbishment is planned.
less than two years in length (including any options for	C7 HERITAGE, SECURITY OR OTHER
extension) as they do not need to meet a minimum energy	CONSTRAINTS
performance standard.	Where a heritage classification, heritage planning scheme, security requirement or other design or operational requirement constrains the integration of internal or
C3 SHORT TERM LEASES (< 2 YEARS)	external energy efficiency measures, agencies or their
Short term leases reduce an agency’s market power and	representatives should consult with DEW to consider their
make it difficult to justify energy efficiency measures	options or to seek endorsement for a performance standard
requiring longer payback periods. However, it may still be	of lower than 4.5 stars ABGR or equivalent.
possible and desirable to voluntarily specify 4.5 stars ABGR	Note: Buildings with specific heritage, security and other
or equivalent and/or to negotiate minor refurbishments	constraints may have higher maintenance and operational
and good energy management practices.	costs that provide extra incentive to minimise energy costs.

C8 TENANCY FIT-OUT

A minimum energy performance standard of 4.5 stars ABGR or equivalent for tenant light and power applies when more than 50 per cent of the tenanted area is undergoing a tenancy fit-out.

Even seemingly cosmetic changes, such as painting, recarpeting and changing window dressings, can have a significant impact on heating and cooling loads and lighting requirements. Agencies or their representatives may, however, seek a DEW-endorsed exception as long as the proposed fit-out is not likely to result in increased energy consumption.

C9 EXCEPTIONAL CIRCUMSTANCES

Requests for a lower performance standard may be considered if the government is already committed to an alternative standard or a government decision necessitates an unexpected change to accommodation circumstances with little notice.

However, exceptions are not intended to apply where the problem is caused primarily by a failure to pre-plan accommodation needs or to ensure a sufficient lead time (at least 18-24 months) for the procurement process. In such cases, the Government has little bargaining power is likely to pay far more for energy as well as rent and other outgoings. This does not represent value for money from the government’s point of view.

ANNEX d —	> d evelopment of voluntary improvement plans by the end of 2007, for existing buildings on relevant
dEFENCE ENERGY	defence bases which account for approximately 80 per cent of defence energy consumption. The
MANAGEMENT	voluntary improvement plans are to identify cost effective opportunities to reduce energy costs and
STRATEGY	improve overall portfolio energy intensity and will be undertaken in consultation with DEW. They will
D1 PURPOSE	take into account the approach recommended by the
The aim of this section is to outline the approach being	proposed EEGO existing building upgrade strategy; and
adopted by the Department of Defence to improve its capacity to manage energy across all of its operations. The strategy includes a metering, monitoring and	> a n ongoing awareness and education strategy for all relevant energy users.
management programme for relevant Defence bases that	The strategy will be reviewed in 2008. A progress report
will facilitate reporting against EEGO’s mainstream end use	on the pilot project will be provided to Government in 2008
categories by 2011.	with a recommendation for a roll out of a refined metering, monitoring and management programme for relevant Defence bases responsible for approximately 80 per cent of
D2 BACKGROUND The Department of Defence accounts for around half of the energy used by the Australian Government and has	the Department’s energy consumption.
a significant impact on this sector’s energy consumption	D4 DEFENCE BASES METERING, MONITORING
and greenhouse gas emissions. The Department has	& MANAGEMENT PROGRAMME
sought to improve its energy performance in the past,	The Department of Defence will progressively install
through initiatives such as the Defence Energy Efficiency	sub-meters at relevant Defence bases in order to measure
Program (DEEP).	and monitor energy usage and to identify efficiency opportunities, address problems and evaluate outcomes.
Defence bases comprise a wide range of end use	Installation of meters and ongoing monitoring of energy
facilities that may not be separately metered, such as	data will be based on a strategic energy plan that takes
offices, climate-controlled stores, laboratories, hospitals,	advantage of recent improvements in metering technology
accommodation and extensive communications and computer facilities. In recognition of this problem, the	and expertise.
1997 policy established a notional energy intensity target	This will also allow the Department to more accurately
for Defence bases of 2.5 Petajoules per annum.	calculate and report energy consumption against specific end use categories, such as: office – tenant light & power;
Energy reporting at bases is further complicated by 24-hour	office – central services; climate-controlled stores; and
operations and variable operational loads, such as national	laboratories, rather than being incorporated into a single
and foreign ships at berth. Many buildings are also subject to strict heritage and security requirements that constrain	‘Defence bases’ category.
potential energy efficiency improvements, such as external	Defence will liaise with DEW to ensure that the programme
shading or natural ventilation.	takes into account the results of scoping studies for nonoffice buildings and computer centres.
D3 COMPREHENSIVE PORTFOLIO ENERGY MANAGEMENT STRATEGY The Department of Defence will develop a comprehensive	End uses, such as drill halls, hospitals and depots, that do not fit into other specific end use categories will continue to be reported under the ‘Defence bases’ category.
energy management strategy for the entire portfolio by the	Any recommendations for changing the name and
end of 2006. It will include:	definition of the ‘Defence bases’ end use category will be
> integration of energy efficiency considerations into corporate systems, procedures, user behaviour and culture by the end of 2007;	communicated to DEW for inclusion in reviews of the EEGO policy in 2008 and 2011.

> establishment of a pilot metering, monitoring and management programme for a selection of large

Defence bases by the end of 2006;

The 2006 EEGO policy does not include an aggregate energy	GLS practice notes assist property managers and lawyers
consumption target for the ‘Defence bases’ category due to	in negotiating an effective lease schedule without
its diverse nature and the impact of highly variable internal	compromising the original intent of the EEGO policy or
and external operational demands on power consumption.	energy efficiency outcomes.
Defence will continue to report against end use categories	>	E nergy management guide for Australian Government
that do not rely on the implementation of the Defence		owned and leased buildings (DEW 2006) includes an
bases metering, monitoring and management programme.		energy management plan template & checklists to help
These categories include: passenger vehicles; other		building owners, tenants and other key stakeholders
transport; Defence operational fuels; and other uses.		to identify and review critical management practices, energy data and building reports on a regular basis and to conduct walk-through audits. The guide
ANNEX E — EEGO		also includes suggestions for employee education & awareness strategies and new staff orientation.
IMPLEMENTATION SuPPORT TOOLS > E SD Design Guide for Australian Government Buildings (DEW 2005) outlines the principles of environmentally	>	I nformation sheets and other publications on topics such as: the hidden costs of poor energy management; t he importance of separate on market status digital metering;
sustainable building design and describes a wide range		• d eveloping voluntary energy improvement plans for
of ESD opportunities, including energy use, ozone		existing buildings;
depletion, waste minimisation, water conservation, biodiversity, indoor air quality and occupant comfort. It is supported by numerous photos, diagrams and		• purchasing energy efficient appliances and fleet vehicles; and
detailed case studies that highlight recent success		• linking to other sustainability issues and reporting
stories in the public and private sectors.		frameworks.
> C onsiderations for incorporating energy efficiency into	Many other support tools and energy management
requirements for Australian Government owned and	publications are available via the AGO website, such as:
leased buildings (DEW 2006) provides an overview of	the Working Energy Guide; environmental purchasing
the environmental impacts of office buildings and	and other checklists; Greenhouse Challenge & Greening
stresses the importance of incorporating sustainability	of Government publications. The ABGR, AEPCA, state/
goals as early as possible in the design process. It also	territory government and relevant industry association,
provides case studies and handy tips on monitoring and	professional institute and other websites also provide
managing the design and construction process from concept to handover and acceptance to ensure that such goals are integrated into the design process and are not compromised along the way.	useful information.

A detailed template of possible design & construction specifications assists agencies and their representatives in developing statements of requirements to achieve specific energy efficiency goals related to the site layout, building envelope, central services, tenancy fit-out, metering and landscaping.

> G reen Lease Schedule (GLS) templates define building owner & tenant responsibilities and establish a cooperative measurable and enforceable framework for ongoing energy management and achievement of target energy performance standards. The specific template clauses in each schedule vary according to the floor area of the tenanted area and the per centage of the net lettable area involved.

[1] The Environment Protection & Biodiversity Conservation Act 1999 s. 516 provides for reporting of measures taken to minimise the impact of their activities on the environment in Agencies’ annual reports.

[2] Agency consultation revealed confusion over minimum energy performance standards and an assumption that energy efficient buildings and appliances cost more than less efficient alternatives.

[3] Preferably with separate revenue meters for tenanted areas.

[4] A formal management committee is not required where tenanted area is less than 50 per cent of total net lettable area.

[5] There is scope in the GLS template to downgrade the performance standard if the original design rating proves not to be viable for the remainder of the lease term. Contact DEW for details.

[6] The GLS includes a clause to cover cases where both parties wish to achieve an improved rating mid-lease. The ‘D’ Green Lease Schedule template has been provided to assist agencies to voluntarily set and achieve a target ABGR rating in a small tenancy.

[7] MOUs are used when one government department/agency leases premises from another department/agency.

[8] Agencies should allow at least five working days for DEW review of documentation and response.

POLICY OVERVIEW ____________________________________________________________________________1 1 AIM ___________________________________________________________________________________4