The Department has also released a discussion paper for New Development Regulations. Under theSecuring a Clean Energy Future Package, the Australian Government announced that new developments and expansion projects would be included in the EEO program. The aim is that projects that meet an energy use threshold when operational will be required to assess the potential for energy productivity improvements from the initial design concept through to commercial operation.
The energy use threshold includes projects where:
- the new development or expansion will utilise an additional energy use of 0.5 PJ per financial year or greater
- there are multiple new developments or expansions which will each utilise an additional energy use of greater than 0.25 PJ (but less than 0.5 PJ), and cumulatively add up to more than 0.5 PJ, when developed simultaneously
- there are multiple projects (five or more) which are all the same and will each add at least 0.1PJ of energy use when operating. (DRET, 2013)
While eligible projects in the Generation, Mining, Oil and Gas, Manufacturing and Infrastructure sectors are likely to trigger for EEO under the proposed changes, projects in the Buildings and Road Transport sectors are not.
Importantly Participants that can demonstrate to have substantially met the intent of the six Key Elements of the Assessment Framework will be able to seek an exemption from an EEO assessment. A reporting obligation will remain however.
Written feedback (page 7) for all the proposed changes will be accepted until the 31st of May.
As part of the Full Cycle Evaluation of the Energy Efficiency Opportunities Program, the Department of Resources, Energy and Tourism held public consultations in Brisbane, Perth, Melbourne and Sydney from the 13th to 24th of May 2013.
The Department tabled their proposed changes to the program which focussed on three major areas: Reporting, Assessment Framework and Recognition of Energy Management Excellence.
During the Melbourne consultation, Department representatives expressed desire to reduce compliance costs for business. Additionally, they stressed that the proposed changes will not add any additional compliance obligations to existing participants and that the changes will not affect first or second cycle assessment plans already approved by the Department.
In terms of Public Reporting the Department’s changes seek to simplify the mandatory reporting requirements of the EEO program, facilitate public communication of reporting outcomes and simplify the amalgamation of annual public reporting into existing corporate reporting methods and timelines. A summary of all changes is detailed in table 1.
For Government Reporting the time period of twice per cycle remains the same. However, as a replacement for the opportunity summary tables, participants have the option to provide either a list of the top 10 most viable energy efficiency opportunities or the number of opportunities equivalent to 80% of the total energy saving. Additionally, participants no longer have to provide energy performance indicators and can provide energy consumption and production data “to an appropriate level”. A summary of all changes is detailed in table 2.
Changes were proposed to the Assessment Framework to provide participants with greater flexibility as to how they meet the intent of the EEO assessment framework, simplify and reduce the information needed for key requirements and remove areas of duplication and requirements that do not add value. The largest proposed changes were removing the requirement to assess potential opportunities to an accuracy of +/- 30 % and instead assessing potential opportunities to accuracy commensurate with the financial investment associated with potential implementation.
The Department also introduced their new initiative “Recognition of Energy Performance Excellence”. The proposed initiative seeks to recognise participants that have excellent energy management systems and processes. It aims to reward participants who meet their criteria by publically reporting their achievements and by allowing recognised corporations to base their assessment on their own processes and systems rather than complying with specific requirements of the EEO Assessment Framework.
Written feedback (page 4) for all the proposed changes will be accepted until the 31st of May. The Department aims to have the revised regulations in place by August 2013 at the latest.
Summary of Proposed Changes to the EEO
Fulfil annual data requirements as stipulated in EEO public reporting templates and regulations
Corporations only required to publically report:
Corporations can now determine:
Fulfil annual data requirements (twice per cycle) as stipulated in EEO public reporting templates and regulations
As a replacement for the opportunity summary tables, proposal to provide either a list of the top 10 energy efficiency opportunities, or the number of opportunities equivalent to 80% of total energy savings with:
As a voluntary alternative to providing energy performance indicators:
1 – Leadership
Key Requirements unchanged
2 – People
Key Requirements 2.1 and 2.2 merged
3 – Information, data and analysis
4 – Opportunity identification and evaluation
5 – Decision making
6 – Communicating Outcomes
Slight changes to information requirements
The Department of Industry has released a new template spread sheet to assist in the EEO annual reporting requirement.
To make meeting the 31 December 2013 reporting deadline easier, the EEO Program has developed a spread sheet for submission of the Government Reports. This is an initial step in improving lodgement of reports and other EEO documentation.
How do I access the spread sheet?
Why should I use the spread sheet?
The spread sheet is designed to simplify the reporting process. It includes validation rules to quickly identify basic errors and is structured to enable faster feedback to corporations. There is also a quick reference guide to assist you to complete the template.
Get/give feedback on your report
To allow time for feedback and any changes that may be needed, the department encourages participants to submit drafts by December 1. Using the spread sheet to complete the Government Report will speed up this process.
What if I have already drafted my report using the old template?
You are still able to submit your report using the old versions of the template.
Next steps – EEO Net, an online portal for program participants
The EEO Program is in the process of developing an online portal for companies to lodge reports, Assessment Plans and registration applications. It is anticipated that this will be launched by late November 2013. Companies are encouraged to use this portal to lodge their Government Reports this year and will be informed when it is active. Until then please contact your ISO.
Highlights of November 2013 Newsletter
The latest Energy Efficiency Opportunities (EEO) newsletter can now be accessed from the EEO website. Some key information includes the achievements that Linfox, the largest trucking and logistics corporation in the Asia Pacific, has obtained by participating in the EEO Program. The corporation’s commitment to cut 50 of its 2006/07 emissions by 2015 is certainly admirable.
EEO participants are also encouraged to visit the findings of ClimateWorks Australia’s research project, Tracking Progress Towards a Low Carbon Economy, to gain a snapshot of most promising opportunities across different sectors and industries.
The Department of Industry is also seeking feedback with regards to the new reporting template (Excel Spreadsheet) and requesting participants to accompany a draft version of the spreadsheet along with other documentation before final submission. See our earlier post for further information.
The new online portal, EEO Net, is scheduled to be fully operational by the end of November. Participants will be notified of the date and activation instructions will be emailed to the EEO contact person.
The 2013 National Conference organised by the Energy Efficiency Council will be held on the 3rd and 4th of December in Melbourne. For further information and special offers for EEO participants, please visit the EEC website here.
The Commonwealth Government is also seeking input from the EEO participants with regards to design of the Emissions Reduction Fund (ERF) for inclusion of potential options of low-cost abatement.
The Clean Energy Regulator is planning to hold a series of workshops in the first half of 2014 on the sequestration group of methodologies. For more information and registration, please visit the Regulator’s CFI events webpage.
The Regulator is also urging project proponents who are currently operating under the following schemes to request for transition into the Carbon Farming Initiative if they believe their project may be eligible:
- Commonwealth Government’s Greenhouse Friendly TM initiative;
- NSW Government’s Greenhouse Gas Reduction Scheme;
- ACT Government’s Greenhouse Gas Abatement Scheme;
- Verified Carbon Standard administered by the VCS Association
The Regulator published emissions numbers reported by liable entities last week. Liable entities are required to purchase and surrender enough eligible emissions units to match the emissions number by 3 February 2014.
In addition, according to the Regulator, 10% of the reporters failed to fulfill their reporting obligation by 31st of October versus the 12% non-compliance rate in the last reporting year.