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Focus: Energy efficiency survives despite CPRS demise

4 May 2010

In brief: With last week's announcement by the Federal Government that the carbon pollution reduction scheme will not be introduced until at least 2013, regulatory initiatives designed to promote energy efficiency are likely to play an even greater role in Australian climate change policy. As part of our series on energy efficiency, we outline some recent developments in the building sector and the work of the Prime Minister's Task Group on Energy Efficiency.

How does it affect you?

  • A revised version of the Building Code of Australia, incorporating various energy efficiency measures, came into effect on 1 May 2010. Each jurisdiction has agreed to adopt the new measures by May 2011 at the latest.
  • A number of submission due dates for consultation on various energy efficiency initiatives are fast approaching. While submissions to the Prime Minister's Task Group on Energy Efficiency closed yesterday, there is still an opportunity to contribute through an on-line discussion forum until 7 May 2010. The deadlines for submissions regarding the national building energy standard-setting, assessment and rating framework is 7 May.

Background

Until recently, the CPRS underpinned the Government's energy efficiency agenda in that it was to be the primary means of promoting energy efficiency. The Rudd Government's decision to delay the introduction of the CPRS until at least 2013 signals a shift in federal and state climate policy away from carbon pricing and towards direct regulation, including the mandating of specific measures or standards to achieve energy efficiency.

(In the first article in our series on energy efficiency, we reported on the Building Energy Efficiency Disclosure Bill 2010, which aims to encourage energy efficiency in the commercial property sector.)

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Prime Minister's Task Group on Energy Efficiency

The Prime Minister's Task Group on Energy Efficiency was created to advise the Minister for Climate Change, Water and Energy Efficiency and the Minister for Resources and Energy on means to improve Australia's energy efficiency by 2020. The Task Group consists of the Secretary of the Department of Climate Change and Energy Efficiency and other senior public servants. On 30 March 2010, the Prime Minister announced the appointment of energy sector advisers to the Task Group. Electricity and resources companies, the Australian Energy Market Commission, social welfare and environmental organisations, the Climate Institute and the Energy Efficiency Council are all represented.

Issues paper

An issues paper has been released that identifies some of the issues about which the Task Group is seeking comment, including energy production efficiency, energy market efficiency and investment in energy efficiency. These issues are not intended to be exhaustive; the intention is to promote public discussion. Indeed, contributors are encouraged to provide input on matters as broad as where they see the greatest potential for energy efficiency over the next decade.

Submissions

While submissions to the Task Group closed on 3 May 2010, a less formal on-line forum is open until 7 May 2010. When announced in November last year, it was anticipated that the Task Group would report to Government by mid-2010 on options for new energy efficiency measures.

Relationship with CPRS

The Task Group's terms of reference explicitly seek recommendations on energy efficiency that complement the CPRS and the Renewable Energy Target (RET). It is unclear how the delay of the CPRS will change the Task Group's priorities and recommendations.

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National building energy standard-setting, assessment and rating framework

As part of COAG's National Strategy on Energy Efficiency (NSEE) of July 2009, Australian governments agreed to develop a national building energy standard-setting, assessment and rating framework. The framework will set minimum energy efficiency performance standards for new buildings and major renovations and will encourage consistency in the way that buildings are assessed and rated throughout Australia. The aim is for minimum energy efficiency standards to increase progressively over time.

The framework is designed to apply both to new and existing buildings. In respect of new buildings and major renovations, the framework will impose minimum standards, implemented through the Building Code of Australia, which will be renewed and increased periodically. For existing buildings, the framework will provide a consistent and national approach to measurement and reporting. It is expected that the framework will be presented for consideration by governments 'later in 2010'.

Scope

The standards would apply to all classes of residential and commercial buildings, and cover the building's characteristics as well as the energy efficiency of key building services. The standard also aims to harmonise the use of assessment and rating tools within the sector.

Working group and consultation

A working group, consisting of state, territory and federal government representatives, has been established to develop the framework in consultation with stakeholders. An expert reference group and an industry consultative forum have also been established. Interested persons may email the Department for regular updates on the framework's progress.

A public discussion paper on the framework was released in March and submissions are due by close of business on 7 May. Submissions need not exclusively address the issues or questions raised in the paper and may focus on any matter related to the framework.

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Amendments to the Building Code of Australia came into force 1 May 2010

The annual revision to the Building Code of Australia (the BCA) came into effect on 1 May 2010. The BCA applies to new building work and is referred to in state and territory building legislation. The BCA 2010 includes additional energy efficiency provisions. A number of the recent changes were introduced to ensure that measures taken to reduce greenhouse gas emissions, without necessarily reducing energy consumption, are acknowledged. These include the use of energy from renewable sources or sources with low greenhouse gas output.

The 2010 version of the BCA requires that new houses, townhouses and major renovations have a six-star energy efficiency rating equivalence. The energy efficiency rating of a building is determined with reference to its shell, including its roof, wall, floors and windows. It also imposes requirements regarding hot water and lighting in new houses and imposes more stringent energy efficiency requirements in respect of new commercial buildings.

Lists of amendments to volume 1 and 2 of the BCA since the previous edition of the BCA are available on the website of the Australian Building Codes Board.

Varied application between jurisdictions

The decision to include a six-star (or equivalent) residential rating requirement in the BCA 2010, commencing 1 May 2010, was taken by COAG in 2009. Each jurisdiction has agreed to pass enabling regulation that adopts the enhanced energy efficiency provisions no later than May 2011.

Various jurisdictions, including Victoria and Western Australia, have deferred the application of the BCA 2010's energy efficiency requirements pertaining to residential buildings until 1 May 2011, while imposing efficiency requirements for commercial buildings from 1 May 2010. Details of the varied application of the BCA 2010 in each jurisdiction can be obtained from the responsible department in each state/territory.

For further information, please contact:

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