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					Buildings and Appliances
      Task Force

       Action Plan
Contents

Introduction................................................................................................................................3

Sector Review ............................................................................................................................3

Goals, Objectives, and Metrics ..................................................................................................5

Buildings and Appliances Task Force Action Plan ...................................................................9

Project Results and Impact.......................................................................................................20

Future Areas of Interest and Potential Projects........................................................................21

Task Force Procedures.............................................................................................................21

Appendix A: Individual Project Plans ....................................................................................22

Appendix B: BATF Members and Observers.........................................................................97

Appendix C: Buildings and Appliance Data...........................................................................98

Appendix D: Existing Policies and Programs.......................................................................106

Appendix E: Related Initiatives by Regional Organizations ................................................129




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Introduction
The six countries of the Asia-Pacific Partnership on Clean Development and Climate—
Australia, China, India, Japan, the Republic of Korea, and the United States of America—are
cooperating to meet both their increased energy needs and associated challenges, including
those related to air pollution, energy security, and greenhouse gas intensities.

The Partnership has established public-private Task Forces in eight key sectors: (1) cleaner
fossil energy; (2) renewable energy and distributed generation; (3) power generation and
transmission; (4) steel; (5) aluminium; (6) cement; (7) coal mining; and (8) buildings and
appliances. The Task Forces are designed to meet Partnership goals through international
cooperation to facilitate the development, diffusion, deployment, and transfer of existing,
emerging and longer term cost-effective, cleaner, more efficient technologies and practices
among the Partners through concrete and substantial cooperation so as to achieve practical
results.

As a product of its first stage of collaboration, each Task Force has created an Action Plan
which has been endorsed by the Policy and Implementation Committee. The Action Plans
contain an initial set of priority activities for implementation. Some projects contained within
the Action Plans may need to be refined or elaborated. Financial resources are needed for the
implementation of the Action Plans. Some initial funding from some government and
industry sources has already been identified for the implementation of projects. Partner
countries will continue to work to mobilize further funding from both public and private
sectors in order to bring about full implementation of the practical projects identified in the
Action Plans and will continually develop new projects and add them to this set of activities.

Sector Review
The Buildings and Appliances Taskforce (BATF) of the Asia-Pacific Partnership on Clean
Development and Climate is tasked with developing projects that address the main sources of
greenhouse emissions in the residential and commercial sectors, with the exception of
transport.

By addressing the buildings in which most people work and live, and the key pieces of mass-
produced energy-using equipment used in these buildings, BATF activities have the potential
to significantly affect energy end-use in these two sectors. Industrial sector activities are
addressed in other working groups of the Partnership. The commercial sector’s role in
Partner country economies is expected to increase significantly over this period.

The buildings sector uses between 20% and 40% of total primary energy for all sectors,
depending on the Partner country (see Figure 1). The fraction of each country’s total energy-
related greenhouse gases attributed to buildings is similar to the share of primary energy.




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Figure 1: Buildings Sector Primary Energy Use as a Percent of Total National Energy Use
             Buildings Sector Prim ary Energy Use as a Percent of Total National Energy Use
 100%


   80%


   60%


   40%


   20%


    0%
             Australia           China             India            Japan             Korea               US

Source: APEC Energy Database <http://www.ieej.or.jp/egeda/database/database-top.html>, and IEA 2003 Energy Statistics
<http://www.iea.org/Textbase/stats/index.asp>.


Buildings account for an even larger share of total electricity use among the Partner
countries, ranging from 25% to 60% (see Figure 2).

Figure 2: Buildings Sector Electricity Use as Percent of Total National Electricity
                 Building Sector Electricity Use as Percent of Total National Electricity
 100%


   80%


   60%


   40%


   20%


    0%
             Australia           China             India            Japan             Korea               US


Source: APEC Energy Database <http://www.ieej.or.jp/egeda/database/database-top.html>, and IEA 2003 Energy Statistics
<http://www.iea.org/Textbase/stats/index.asp>.


Improved energy use in these sectors is important to an overall greenhouse response. Energy
efficiency can often be realized at no net cost or even with a net benefit to the economy as a
whole. This is achievable where energy efficiency measures address market barriers to
efficient energy management, which are common in sectors where energy use is a relatively
small part of expenditure. Energy efficiency can therefore save emissions and have financial
benefits to better support investment that may be needed in lower-emission supply
technologies. Improvements in energy efficiency can also defer the need for new investment



                                                                                                                        4
in energy supply to a time when low emission sources are more widely available and at lower
cost.

A number of previous studies have addressed the potential for energy and carbon savings in
the buildings sector; a recent review of findings is forthcoming in the Fourth Assessment
report of the Intergovernmental Panel on Climate Change.1 Future analysis by the BATF
members will review this and other sources for applicability to the buildings sector in Partner
countries.

Goals, Objectives, and Metrics
Goals
•   Use cooperative mechanisms to support the further uptake of increasingly more energy-
    efficient appliances, recognizing that extensive cooperative action is already occurring
    between Partner countries.

•   Promote best practice and demonstrate technologies and building design principles to
    increase energy efficiency in building materials and in new and existing buildings2.

•   Support the integration of appropriate mechanisms to increase the uptake of energy-
    efficient buildings and appliances into broader national efforts that support sustainable
    development, increase energy security and reduce environmental impacts.

•   Systematically identify and respond to the range of barriers that limit the implementation
    of end-use energy efficiency practices and technologies.

Objectives and Metrics
The Task Force intends to translate these strategic goals into quantitative terms, to the extent
necessary and practical through ongoing discussion of proposed projects, identification of
resources to support these projects, and additional analysis of energy and carbon savings
combined with post hoc evaluations of actual savings resulting from Partnership-related
activities.

The BATF will be considering whether it is feasible and appropriate to establish “aspirational
goals” for energy and carbon savings as of a specified date, expressed either in percentage or
absolute terms (GWh saved or avoided tons of CO2). While in the near term the focus will be
on identifying effective program strategies and promising areas for collaboration among the
Partner countries, this has the potential to become an important area for cooperative analysis,
discussion, and development of consensus, as suggested by the following BATF objectives:

•   Identify the cost-effective potential for the energy savings resulting from the BATF
    projects in each participating Partner country, along with associated energy cost savings
    and reduced carbon emissions.

1
  MD Levine, D Ürge-Vorsatz, et al. 2007. ‘Mitigation Options for Residential and Commercial Buildings.’
Chapter 6, IPCC Fourth Assessment Report. [Forthcoming.]
2
  Note that the phrase ‘best practice(s)’ is used in this action plan and in several project descriptions because it is
a term in common use in the energy efficiency field. The intent is not to imply that there are only one or a few
universally acceptable technical solutions or programmatic strategies to save energy, but rather the advantages
of clearly documenting and sharing examples of a range of ‘good’ practices that might be considered, with
suitable modifications to suit diverse local conditions.


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Proposed Metrics:
Each participating Partner in a BATF project has estimated their country’s expected energy
savings for that project, to the extent necessary and practical, using a consistent method and
assumptions among the participants (regarding baseline, time frame, economic assumptions,
etc.).

Potential energy savings have been translated into cost savings and reduced greenhouse gas
emissions using consistent methods.

•   Create or strengthen national goals, policies, and programs to promote greater efficiencies
    in appliances and buildings.

Proposed Metric:
Each Partner country has identified and put in place at least one policy or program to cost-
effectively address each market segment that represents a certain percentage (e.g. 10%, to be
determined by host countries) of total buildings sector energy use.

•   Assess impact of policies and programs and track progress toward greater efficiencies.

Proposed Metric:
All programs have provisions in place for collecting, reporting, and analyzing data, to the
extent necessary and practical, to assess their net impact on energy savings and cost-
effectiveness.

•   Share results and replicate successful pilot programs, where applicable, in all Partner
    countries.

Proposed Metrics:
Key findings on program results and lessons learned from successful or unsuccessful
strategies are documented and shared among Partner countries through reports, workshops,
and other means. Partner countries evaluate them for appropriateness for national
circumstances.

New programs have been implemented in other Partner countries or changes implemented
because of lessons learned.

•   Disseminate information across Partner countries and to non-Partner countries on
    policy/program successes, energy-efficient technologies, and lessons learned.

Proposed Metrics:
Program results and lessons learned have been made available to Partner countries and
interested non-Partner countries.

Policies or programs have been replicated in Partner countries and non-Partner countries.

•   Creation of new or enhanced international and country based networks focused on the
    ongoing improvement of environmental performance in the buildings and appliances
    sector.




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Proposed Metrics:
Number of stakeholders engaged in process.

Workshops and reports produced and disseminated.

The BATF members will estimate, to the extent necessary and practical, the energy savings
expected to result from the BATF projects that will be active in their countries. These
estimates would be based on a ten-year time horizon (i.e. 2015) and would represent the best
judgment of Task Force members of each project’s likely net addition to energy savings,
taking into account other existing or planned policies and programs outside of the
Partnership. The estimates for each project should include an explicit definition of the base
case used for estimating these savings, including the effects of projected changes in the stock
of buildings and appliances, usage patterns, and technology improvements independent of
Partnership projects.3 Project teams may wish to present ranges for the estimated energy,
cost, and CO2 savings for each participating country.

BATF members would develop these estimates of energy savings to help in project planning
and priority setting, rather than as a specific target to be achieved by existing or proposed
new policies and programs.

Partner countries may choose to cooperate in sponsoring a data and analysis task to support
future analysis needs, including:

•   Identification of energy savings potentials;

•   Project planning and estimates of future energy savings; and

•   Impact assessments for completed projects.

This task, which would call for a shared commitment of staff effort and resources, would
build on existing country-specific, regional, or international data and analysis activities such
as APERC, IEA, IECC, and others.

Project Development Process
The BATF recognizes the important role of energy efficiency in the residential and
commercial sectors, as well as the diversity of technologies and stakeholders involved.

The BATF members view the identification of policy and program opportunities as an
ongoing process, to be informed by each country’s unique needs and opportunities, market
conditions, characteristics of the current and projected stock of buildings and appliances,
prior program experience, and the availability of financial and institutional resources and
expertise. For Partner countries the challenge—and also the opportunity—is to define a
suitable common ground for collaboration that benefits all those participating in a project.

A collaborative Partnership project may involve two or more Partner countries in any number
of ways, including but not limited to:


3
  Considering the projected stocks of buildings and appliances in 2015 is especially important in China and
India, with expected high growth rates of construction and increased market penetration rates of home
appliances, office and consumer electronics, and air conditioning.


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•   Information sharing through exchange of reports, online documents, and interactive
    websites;

•   Cooperative efforts to compile information on existing policy and program experience
    develop and maintain online data bases, etc.;

•   Joint sponsorship and participation in workshops and training programs;

•   Technical advice and assistance, including site visits, project advisory panels, and
    working exchanges of technical staff;

•   Collaborative sponsorship of demonstration projects and pilot programs, and the sharing
    of measured energy performance data and program evaluation findings;

•   Cooperative activities to develop new methods (or harmonize existing ones) for appliance
    energy testing, and energy savings measurement and verification protocols.

In selecting collaborative projects, members of the BATF took into account a number of
considerations, which each Partner country must weigh in establishing their own priorities:

•   How large is the energy savings potential, as well as potential energy cost savings and
    reductions in greenhouse gas emissions?

•   What is the savings potential? This depends on factors such as:

How significant are the current energy use, peak demand, costs, and emissions (as a share of
the buildings sector total)? What is the expected growth rate in energy use, by building and
appliance type, end use, or region within a country?

Are there cost-effective energy saving technologies available that are appropriate for
conditions in Partner countries?

Is the market infrastructure in place to design, distribute, install, operate, and maintain the
technologies? (Note that further development of this market infrastructure may be one of the
major objectives of a project.)

•   Are there effective and tested program designs to address market or institutional barriers
    to deploying energy-efficient technologies—within a time frame and level of resources
    suitable for the Partnership?

•   Which program strategies can build on prior experience and complement rather than
    duplicate other ongoing, non-Partnership programs?

•   Are there approaches that can gain special benefit from the participation of several
    Partner countries, either to aggregate market demand for efficient products and services
    or to combine unique or complementary strengths of participating Partner countries? (For
    example, a strong interest by consumers in some countries in more efficient electronic
    products that are widely manufactured in another Partner country.)

•   Is there a shared interest in a project area by two or more Partner countries, with at least
    one Partner country prepared to commit resources and effort to lead the project?



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•   Is there a timely opportunity to incorporate energy efficiency within some other, non-
    energy market trend or major policy initiative? (Examples might include: a cyclical
    upturn in the new building construction market; classroom additions or renovations to
    meet a “bulge” in the school-age population; a government electrification campaign for
    under-served areas; or the planned major renovation of a district heating system.)

At the first BATF meeting in Berkeley, California (April 2006), each of the Partner countries
provided initial recommendations for proposed Partnership project areas or broader program
areas, issues, and strategic opportunities. More than 15 specific projects were suggested by
BATF members, with many common elements. Through extensive discussions, the Task
Force members consolidated these project suggestions into a smaller number of key areas,
and then indicated their priorities. The result was selection of eight initial project areas to be
further developed. As summarized below, and described in more detail in Appendix E, three
of these address appliances and four deal with buildings. The remaining project area,
financing and contracting, is grouped with the buildings projects but also has some
applicability to appliances and equipment.

In each case, one or more of the Partner countries agreed to serve as project lead or co-lead
for purposes of planning, while several others indicated their initial interest in participating in
the project. It was agreed that all Partner countries would have the opportunity to review and
comment on project drafts as they evolve, and that participation in a project would be open at
any time to all Partner countries, including but not limited to those who initially expressed
interest.

The BATF members view the project development process as an ongoing effort, and expect
to continue adding other project areas in the future.

Buildings and Appliances Task Force Action Plan
Appliances
Appliances, office and consumer electronics, and lighting represent a significant share of
energy use in most countries, and are a rapidly growing source of electricity demand and
associated greenhouse gas emissions as rising incomes allow consumers to purchase more
energy-using devices for comfort, convenience, and entertainment. As electronic controls,
displays, and portability (using rechargeable batteries) are built into an increasing variety of
consumer and commercial products, power use in “standby” mode (idle, or seemingly “off”)
is becoming another source of growing electricity demand.

At the same time, continuing technology advances are making it possible and increasingly
cost-effective to incorporate significant efficiency gains in appliances and other energy-using
products. Some of these gains are driven by the economic interest of manufacturers and
retailers, while others are in response to market-based policies, incentives, improved rating
and labeling information to consumers, and mandatory efficiency standards (see
Appendix D).

To complement existing policies and programs among the Partner countries, members of the
BATF have initially selected three project areas for cooperative action:

•   Harmonization of test procedures for energy-using appliance and equipment—to work
    toward common methods of testing and gauging energy performance of selected


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    appliances, in order to reduce the burden to manufacturers of multiple tests and to
    encourage the growth of international markets for more energy-efficient products and
    new energy-saving technologies.

•   Standby power—to build on existing national and international initiatives to better
    understand market trends and cost-effective technical opportunities to reduce standby
    power levels in a range of devices, and to encourage actions by each individual country to
    accelerate market acceptance of new technologies that can help reduce unnecessary
    standby power.

•   Market transformation—to encourage the sharing of experience among Partner countries
    with a range of market-oriented policies and programs, including voluntary labeling and
    recognition programs for efficient products, utility rebates and tax incentives to both
    consumers and manufacturers, training and information campaigns, and aggregating
    buyer demand (e.g. by government agencies) to create a “market-pull” for efficient
    products.

These project areas are summarized below, and described in detail in Appendix A.

Project 1—Harmonization of Test Procedures
In an effort to eliminate a major barrier to developing successful standards and labeling
programs, this project will develop harmonized test procedures for a number of agreed
products using a “communities of practice” model. The project includes the evaluation of
existing test procedures, and revisions to existing or the development of new test procedures
in an internationally harmonized manner. Data will then be amassed using the resulting test
procedure and potential mandatory and or voluntary efficiency levels will be developed for
use by various countries, as desired. In developing harmonized test procedures among the
Partner countries, all products that use standby energy should be considered in coordination
with activities under Project 2 (Standby Power). The project outputs will include harmonized
test procedures for at least four products from a priority list, robust data sets including
comparison test data in each test facility for each of the four products using the test
procedure, a list of additional products for BATF to pursue in the future, and a screening
method for prioritizing these products.

As a result of this project, all governments will have access to internationally harmonized test
procedures and can individually or in groups propose to develop potential performance levels
upon which to base mandatory or voluntary requirements or labeling schemes for these
products as projects to fall under the Partnership at a later date.

Project 2—Standby Power
Without any significant policy action, standby power could account for around 375 TWh/year
of household electricity consumption in 2030 in Partner countries (based on IEA projections
and data). Experts have demonstrated across a wide range of products that waste standby
power can be significantly and cost-effectively reduced without affecting product
functionality and performance. Initial estimates are that standby could be reduced to as little
as 100 TWh/year in 2030 with coordinated policy actions on standby. This reduction would
save more than 140 Mt/year of greenhouse gas emissions in 2030. The saving represents
more than the total projected electricity consumption for Australia in 2030 (for all sectors).
The project outputs will include standby data gathered for appropriate targets, mechanisms
for achieving targets, and an action plan(s) laying out targets for 2015.


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The ultimate goal of the effort is to develop a proposal that all Partner countries can endorse
which delivers the lowest feasible standby power for agreed appliance types by 2015. Once
formulated, Partner countries will implement measures to ensure achievement of agreed
levels, noting that not all Partner countries will reach agreed levels at the same date.

The project will also report on outcomes, noting areas where Partner countries have reached
agreed levels.

Project 3—Market Transformation
This project will facilitate changes in Partner countries’ domestic markets to increase the
penetration of energy-efficient products. With the cooperation of retailers/intermediaries as
well as the practical use of several incentives, consumers will enrich their practical
knowledge of the economic value of energy efficiency and enhance their motivation for
purchasing highly energy-efficient products. There will also be engagement with
manufacturers and support for training of government officials to enhance their use of
procurement policies to help transform markets for these goods. The project outputs include
a summary of the measures that Partner countries have already taken or are planning to take
to motivate consumers to purchase energy-efficient products, a “best practices” handbook and,
based on the best practices, demonstration activities on implementing model practices and
benchmarking them into specified areas in each member country. We will also possibly have
further discussions on the emerging issues that might be addressed in the future after
evaluating the results that the project will have achieved.

The project will contribute not only to reduction of environmental burdens, but assist private
companies in making profits to sustain production and innovation of energy-efficient
products. It will also lead Partner countries to change their domestic markets in order to
facilitate the penetration of these products.

Buildings
Increasing the energy efficiency of buildings demands consideration of a range of factors.
Regulatory approaches such as effective building codes represent an opportunity to “hard
wire” a minimum standard of environmental considerations into new buildings. Project 6,
Building Codes, creates an opportunity to exchange experience on the development,
implementation and governance technical information and tools of building codes. The aim
is to assist all participating Partner countries in enhancing mutual understanding of each
others’ building energy codes and ultimately, their further development and improvement.

While regulatory measures provide minimum standards and a “push” for increased efficiency,
consumer information is needed to promote a market “pull” for technologies that go beyond
the minimum. Building certification and ratings help to create this pull and Project 4 looks at
collecting information on current activities and strengthening and promoting the role that
certification can play in helping to overcome barriers to greater uptake of energy efficiency
technologies.

Improving the efficiency of existing buildings requires consideration of the financial
implications for owners, ongoing operation and maintenance, available services and
technology, and the level of upgrade that the building envelope and purpose allows.
Upgrading of existing buildings presents significant opportunities to implement low-cost
measures with fast payback times, which provide financial as well as energy benefits.



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Project 5, Existing buildings, aims to address and demonstrate the benefits of upgrade
activities and correct operation and maintenance of buildings.

New buildings present an opportunity to showcase the financial, environmental and social
benefits that are presented through advanced building design, construction and maintenance.
Project 7, High Performance Buildings, aims to demonstrate these benefits and show a
pathway for building design and construction to move “beyond code” toward an ultimate aim
of zero emission technology.

Project 4—Building Certification
Energy labeling is a key mechanism for ensuring effective energy-saving management and
has a broader, positive and important effect on economy-wide energy savings. The energy
evaluation and labeling of buildings will not only demonstrate their potential to save energy
but also improve market transparency, which can be a catalyst for greater energy efficiency in
buildings. In order to overcome institutional, market and other barriers, the project proposes
15 activities that will foster building energy labeling. These fall into four major areas:
1) policy and management systems, 2) technical standards and evaluation methods, 3) plans
for building energy labeling, and 4) exchange of information on building energy labeling.
The project outputs include a status report on building energy labeling in each Partner,
incentive policies on voluntary energy efficiency certification, research on calculation
methods of building energy consumption, technical guidelines for building energy labeling,
and training workshops.

If the activities can be implemented successfully, then building energy efficiency will rise to
a new level through effective building certification and labeling schemes.

Project 5—Improvements to Existing Buildings
The project will employ market transformation strategies to improve energy efficiency in
commercial and residential buildings, based on the rationale that abundant opportunities exist
to cost-effectively make such improvements by sharing experiences among Partner countries
and implementing proven program approaches. There are three subprogram elements:
Operations and Maintenance, with the goal of reducing energy use in participating
commercial buildings by 10 to 15% through no-cost/low-cost measures and cost-effective
retrofits; Residential Buildings, with the goal of improving energy efficiency through
improved installation of HVAC equipment and through addressing other barriers to improved
energy efficiency; and Program Design, with the goal of incorporating building performance
monitoring and recognition activities into government and business policies, programs, and
building portfolio management practices. The project outputs include training for building
owners and managers and government officials, case studies of implemented no-cost/low-
cost energy efficiency measures, and best practices workshops on the three subprogram
elements.

As a result of this project, it is anticipated that participating buildings will achieve
measurable energy savings, governments will have initiated and/or enhanced policies and
programs to advance energy efficiency improvements in the areas of project focus, and that
barriers to the installation of more efficient HVAC equipment will be overcome.

Project 6—Building Codes
A building code for energy conservation is the most basic and powerful measure of a
country’s available technologies and policies. A good and successful code can be used as a


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reference that allows other countries to reduce their investment of time and money in
developing and improving their own codes. This project includes exchanging each Partner
countries’ code information, policy systems, evaluation and rating systems, and lessons
learned through implementation. This project covers technical matters as well as governance
system of building codes. The project outputs include a survey on existing codes or efforts to
develop building energy codes; any mandatory and voluntary government programs already
under way; simplified tools to estimate future energy consumption; the impact of building
codes; and detailed information exchanges.

The project will result in the enhancement of Partner countries’ mutual understanding of each
others’ building energy codes and, ultimately, their further development and improvement.
In addition, it will reduce the time and expenditure needed to improve codes by allowing
members to refer to the experiences and technical systems of other countries with well-
organized building codes. Finally, this project will contribute to enhancing international
trade in building materials and systems and international cooperation among building
companies to develop new markets in the region.

Project 7—High-Performance Buildings and Development
The project aims to increase the proportion of new buildings and developments that
incorporate cost-effective measures that support the clean development and climate
objectives of the Partnership. The project also seeks to support the integration of efficient
buildings and infrastructure into larger abatement projects (e.g. “zero net energy” precincts)
and identify promising areas for technical and market development to support wider uptake
of advanced building design. Market-based strategies focused on accelerating the adoption of
these approaches must be able to draw on a verified base of relevant technical and economic
information. The project will collect, and disseminate to member countries, verified
technical and economic information, in a common framework, for use in building projects
and policy initiatives. The project outputs include a database of verified technical and
economic information about high-performance buildings and developments, methodologies
to assess the costs and benefits of alternative building designs through a common framework,
and member country pledges to support the construction of buildings or larger developments
(e.g. precincts, suburbs, towns, etc.).

This project will result in reduced energy consumption, on peak electricity demand and
associated CO2 emissions (e.g. per square meter) due to the incorporation of improved
building practices, building materials, equipment, controls and ongoing management, and
improved disaster resistance in buildings—e.g. lower mortality and property losses. It may
also lead to agreement on ways to recognize, for example, through a system of awards
significant efforts toward the project goal in member countries.

Project 8—Financing and Contracting
This project area broadly covers successful models of innovative approaches for overcoming
barriers to financing of and contracting for energy efficiency.

There are many barriers to the uptake of energy efficiency measures built into existing
financing and investment practices. BATF work within the finance and contracting sector
represents a significant opportunity to remove barriers and demonstrate incentives to increase
institutional support for energy efficiency activities and considerations in the buildings and
appliance sector.



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Utilities have great potential to finance and deliver end-use technology and services that
would impact on the energy efficiency of a vast majority of residential and commercial
buildings in many countries. However, competing incentives and barriers to action prevent
these opportunities from being realized. Project 8 Sub-Project 1 will increase the
understanding of regulatory and other incentives and help to develop and demonstrate
successful measures to overcome barriers.

Project 8 Sub-Project 2 looks at two key enabling mechanisms that will help to increase the
demand for energy-efficient buildings and appliances from users of buildings and residences.
“Smart systems” work to improve the information available to energy consumers and “green
leases” help to overcome the tenant–landlord split incentive barrier to improved energy
efficiency technologies and management practices.

Project 8 Sub-Project 3 focuses on ways to increase levels of private investment in energy
efficiency activities by strengthening the ability of support services to shift investment.

8 Sub-Project 1—Utility Regulation and Incentives
Experience in several Partner countries, and in a number of individual states within the
United States, has demonstrated that electric and gas utilities have enormous opportunities to
finance and deliver end-use energy technology and services to their customers—covering the
vast majority of residential and commercial buildings in many countries. This experience has
also shown that there are significant barriers to aggressive action by utilities in this area.
Until utilities have financial incentives or regulatory imperatives to pursue improvements in
energy efficiency, the adoption of efficiency measures will be severely inhibited.

The project will:

•   Identify and share successful models of innovative approaches for overcoming barriers to
    utility financing and implementation of energy efficiency programs;

•   Work to understand each country’s utility and regulatory systems to determine
    applicability of different innovative approaches; and

•   Enable member countries to voluntarily identify and jointly implement activities to
    demonstrate or expand selected approaches to removing barriers to effective utility
    financing of energy efficiency programs.

The project outputs include a report compiling experiences and successful practices from
Partners and other sources; a workshop to discuss and refine the draft report; identify needs
and design cooperative projects; a handbook for design and implementation of effective
utility regulation; and an assessment of the needs and potential of selected Partner countries.

As a result of this project, utility companies will shift a greater fraction of their considerable
financial and technical resources to financing and implementation of energy efficiency in
buildings. They will also play an expanded role as a delivery mechanism for energy-efficient
appliances, equipment and services to residential and commercial customers.

8 Sub-Project 2—Enabling Mechanisms
Overcoming barriers that inhibit the wider uptake of otherwise commercial energy efficiency
actions can be significantly achieved through promoting key underlying “smart” technologies
and working to more effectively allocate incentives and responsibilities for improved energy


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management. Such enabling mechanisms increase demand for energy-efficient buildings and
appliances as well as providing innovative market approaches to achieving energy efficiency,
greenhouse gas reductions and broader sustainability. This project focuses on two key
enabling mechanisms: residential “smart systems” for improved information and load control
and commercial building “green leases” to help overcome the tenant-landlord split incentive
barrier to improved energy management. The project outputs include the creation of a Smart
Meter Working Group, formulation of a conceptual cost/benefit framework for use by
electricity utilities that is adaptable to national circumstances, and development of supporting
tools to assist business case consideration of smart meters—guidelines, methodology,
templates and calculation tools, where appropriate.

The project will result in an increase in the market uptake of residential smart systems, in the
efficient energy management of commercial building operations through providing
transparent legal options to overcome the market failure of the tenant-landlord split incentive
problem, and in an increase in the uptake of energy efficiency building designs and
appliances in participating Partner countries through stimulating additional market demand.

8 Sub-Project 3—Commercial Financing
The overall goal is to facilitate increased levels of private investment in building energy
efficiency projects in Partner countries. The project will identify and share successful model
approaches to remove barriers to private financing of and contracting for energy efficiency
investment and enable member countries to voluntarily identify and implement joint projects
to remove barriers to private energy efficiency investment and demonstrate or expand
selected models. The project outputs include an inventory of successful approaches to
remove barriers to private energy efficiency financing and contracting, including assessments
of effectiveness, individual country selection of models to apply within their economies or to
share with other Partners, joint projects, and annual reviews of project progress.

The project will result in incremental change in private companies offering energy efficiency
services, measured in number of companies and total sales; in private investment in energy
efficiency in terms of number of investors and volume of equity investment; and in the
number of private financial institutions lending to energy efficiency projects and volume of
lending.

Integration of Project Results
The Buildings and Appliances Task Force can play a valuable role in pulling together results
of the individual projects and using them in a consolidated way to inform and develop future
on buildings and appliances (see Figure 3).

One of the benefits of the individual projects will be development of information networks
within and between participating Partner countries. The BATF can add value by facilitating
information exchange and network connection between projects to capitalize on the full suite
of results on the barriers to and incentives for improved uptake of energy efficiency in the
sector.

For example, the projects looking at existing buildings, finance and contracting and building
certification, while operating separately to achieve individual goals, will have results that can
be integrated. This will help in moving what we know about uptake of technologies and
services available to increase the efficiency of existing buildings to a more integrated and
sophisticated level. Opportunities can then be sought which help to integrate the different


                                                                                               15
project findings and develop options for the future. These could include, for example,
workshops, conferences, studies or demonstration projects.

Similar mechanisms and links could be explored between related projects on:

•   New buildings (finance and contracting, high performance buildings, building codes, and
    building certification).

•   Appliances (harmonization, standby, market transformation, finance and contracting—
    metering technologies).

•   Overall integration of buildings and appliances energy efficiency uptake measures.

The BATF will, with input and support from projects, explore ways in which it can capitalize
on this opportunity and encourage dialogue across projects to inform the development of
future projects in the sector.

Figure 3: BATF Role in Project Integration
                       Integration of Project Results

     Dialogue on Barriers and Incentives to Uptake of Efficiency Measures:
                               •     Existing Buildings
                                 •    New Buildings
                                   •    Appliances
                                                                                     Dialogue on
                                                                                    Future Action

                                                  BATF
                              Facilitation of Information and Technology
                                                Exchange
                                    and Networks on Buildings and
                                           Appliances Sector




                                           BATF PROJECTS
                                 Research, Analysis, Demonstration
                          Sharing of information and creation of project specific
                        networks between and within project participant countries

                             And Links to Those of Other Task Forces
                       Power Generation and Transmission (e.g., DSM activities),
                         Renewable Energy and Distributed Generation (e.g.,
                                buildings-related photo voltaics), and
                                 Cement (e.g., building materials).




                                                                                                    16
     Major Milestones
                    Project Lead
                        and
                    Participants
  Project Areas                                   2006                             2007                           2008                          2009                          2010

Project 1:         Lead: Korea         Organize working group for      Finalize test procedures;       Complete market research of   For additional products,        For additional products,
Harmonization of   Co-Lead: United     priority products; gather and   circulate procedures to         priority products; choose     revise existing procedures or   finalize test procedures
Test Procedures    States & Japan      evaluate information on         respective industries for       additional products for       draft new test procedures       and circulate to
                   Participants:       existing test procedures;       testing of priority product     working group to address;     and circulate for review        respective industries for
                   Australia           revise existing procedures or   models; compile data for        gather information on test                                    testing of priority
                                       draft new test procedures       priority products               procedures for additional                                     product models
                                       and circulate for review                                        products

Project 2:         Lead: Australia     Identify products and sectors to be studied by establishing working groups, conducting        (2008-2011) Maintain a reporting function for new
Standby Power      Co-Lead: Korea      workshops on measurement, and analyzing proposed products for barriers to the adoption of     products entering the multinational market; measure
                   Participants:       standby energy efficiency; gather current standby data and future road map for each Partner   progress through continued benchmarking activities and
                   China, United       country; undertake benchmarking activities; publish Action Plan(s) with common targets for    data gathering, establishing and/or enhancing testing
                   States              2015 for selected product types                                                               capabilities, and identifying products not meeting the
                                                                                                                                     standby challenge



Project 3:         Lead: Japan         Share information on market     Summarize country               Select best practices for     Continue to carry out           Monitor and evaluate
Market             Co-Lead: Korea      transformation policies and     information and set             implementation; carry out     selected demonstration          the performance of
Transformation     Participants:       programs among Partner          benchmarks for best             demonstration activities      activities; expand ongoing      activities implemented
                   China, United       countries: Conduct project      practices; conduct workshop     based on best practices       activities and develop new      with reference to
                   States, India       meeting                         at Energy Expo in Tokyo;                                      activities                      market transformation
                                                                       conduct workshop and                                                                          towards energy-saving
                                                                       publication of “Best                                                                          and CO2-reducing
                                                                       Practice” Handbook                                                                            technologies

Project 4:         Lead: China         Collect information and         Evaluate policy and             Carry out pilot projects on   Establish an information
Building           Co-Lead: United     develop project plan; plan      management systems for          building energy labeling;     exchange network; continue
Certification      States              detailed activities and         building certification; carry   summarize and disseminate     to improve tools for energy
                   Participants:       develop implementation plan     out technical system            results of pilot projects     labeling
                   Australia, Japan,   for each country                research and stage
                   Korea, India                                        achievement report; design
                                                                       pilot projects




                                                                                                                                                                                           17
                      Project Lead
                          and
                      Participants
  Project Areas                                      2006                            2007                            2008                            2009                          2010

Project 5:           Lead: United        Begin initial activities under   Implement sub-projects including tool development,             Evaluation of project results
Existing Buildings   States              sub-projects (Operations &       workshops, technical assistance, and training
                     Participants:       Maintenance, Residential
                     Australia, China,   Buildings, and Program
                     Japan, India        Design) including stock-
                                         taking and data collection

Project 6:           Lead: Korea         Create working group to          Draft, circulate for review,    Report on current national     Submit scenarios to reduce       Finalize report on
Building Codes       Participants:       draft and disseminate a          and publish report, “Building   building consumption;          energy consumption; draft,       principles and scenarios
                     China, Japan,       building code survey to          Codes of Partner Countries;”    submit long-term national      circulate and revise report on   for national code
                     India               participant countries; collect   circulate assessment results    building code plans; develop   principles and scenarios for     enhancement; improve
                                         and evaluate country reports     from window workshop            simplified tools to estimate   national code enhancement;       recognition of window
                                         and compare main items of                                        future national energy         implement domestic window        cross-certification.
                                         building energy codes;                                           consumption; report long-      rating procedure
                                         conduct window workshop                                          term estimates of energy
                                         on energy-efficient window                                       consumption; complete
                                         potential                                                        technical basis and
                                                                                                          procedure for window
                                                                                                          ratings

Project 7:           Lead: Australia     PIC project endorsement;         Post collected data on          Conduct forum on high-                                          Promote national
High-                Co-Lead: Japan      collect national nominations     Partnership web site; review    performance buildings; agree                                    exemplar demonstration
Performance          Participants:       for project team                 high-performance buildings      on assessment methodology;                                      projects
Buildings &          China, United       membership; create               and measures                    conclude information
Communities          States, India       indicative budgets; establish                                    sharing agreement;
                                         data templates; select high-                                     implement policies for high-
                                         performance building                                             performance buildings
                                         examples; provide country
                                         building data; post sub-
                                         project information on
                                         Partnership web site; hold
                                         conferences on available
                                         technologies and building
                                         processes; agree on pilot
                                         projects, green precincts, and
                                         information- and
                                         technology-sharing protocols




                                                                                                                                                                                               18
                Project Lead
                    and
Project Areas   Participants                           2007                                              2008                                                2009

Project 8:      Lead: United                                                       Sub-project 1: Utility Regulation and Incentives
Financing &     States
Contracting     Co-Lead:
                                Develop report compiling experiences and           Implement cooperative projects and document          Complete handbook; conduct needs and
                Australia
                                successful practices; convene workshop to          results; draft handbook for design and               potentials assessments of selected member
                Participants:
                                discuss and refine draft report, identify needs,   implementation of effective utility regulation and   countries; support adoptions of successful
                India, Korea,
                                and design projects; issue year-one report         incentives                                           incentives
                Japan
                                                                                         Sub-project 2: Enabling Mechanisms


                                Smart Systems                                      Smart Systems                                        Smart Systems
                                Form Working Group and industry partnerships;      In collaboration with industry, develop              Complete, test, refine, and disseminate
                                complete strategy for subproject delivery,         standardized assessment framework and                assessment framework and supporting tools
                                monitoring and evaluation; review international    supporting tools                                     Green Leases (2009-2010)
                                smart systems and common business drivers          Green Leases                                         Demonstrations within key government
                                Green Leases:                                      Develop “model” green lease schedule template;       buildings and private sector champions
                                Form Working Group and industry partnerships;      tailor schedules and supporting tools to national    portfolios; develop and disseminate national
                                summarize international experience; circulate      circumstances                                        investment/ finance sector impact studies
                                report on participant’s national circumstances

                                                                                        Sub-project 3: Commercial Financing


                                (2006-2007) Identify successful models, useful     (2007-2008) Implement jointly approved               Continue and review implementation of joint
                                information, and joint demonstration activities;   projects                                             projects
                                issue reports on successful models and lessons
                                learned; contact vendors and financiers to
                                identify potential for activity expansion




                                                                                                                                                                                       19
Project Participants and Resources (US$’000)
                                           2007          2008           2009          2010           2011      Total
                                           Funding       Funding        Funding       Funding        Funding
Project 1:                  Funding        800           1,000          1,200         1,000          800       4,800
Harmonization of Test       needed
Procedures                  Funding
                            needed
Project 2: Standby          Funding        1,100         1,100          1,100         1,100          -         4,400
Power                       needed
                            Funding
                            needed
Project 3: Market           Funding        287                                                                 287
Transformation6             needed
                            Funding        87                                                                  TBD
                            needed         (Japan)
Project 4: Building         Funding                                                                            906
Certification               needed
                            Funding
                            needed
Project 5: Existing         Funding
Buildings                   needed
                            Funding
                            needed
Project 6: Building         Funding        900           900            1,100         1,100          1,100     5,100
Codes                       needed
                            Funding
                            needed
Project 7: High-            Funding                                                                            3,350
Performance                 needed
Buildings &                 Funding
Communities                 needed
Project 8: Financing        Funding        2,000         200            300           400            100       3,000
& Contracting4              needed
                            Funding
                            needed




Project Results and Impact
[To be added based on project data/evaluation.]

Project Accomplishments


Progress Towards Metrics



4
    This figure is a partial estimate and does not cover all of the activities under this project.


                                                                                                                     20
Impacts on Strategic Goals and Objectives


Future Areas of Interest and Potential Projects
At their initial April 2006 meeting in Berkeley, CA, BATF members identified a number of
potentially promising program areas and energy-saving technologies and practices. The
current proposals for work in eight project areas represent the priority-setting process at that
meeting, although it was envisioned at the time that additional program areas would continue
to be identified, and added to the Action Plan as Partner countries’ resources and interest
allow.

Task Force Procedures
[This section to be added for discussion at the November 2006 BATF meeting.]

Planning Process
•   Project selection guidelines

•   Funding procedures

•   Other

Meetings
•   Frequency, location, hosting

•   Participation by delegates, observers, invited experts

Project Management and Reporting

Coordination
•   Other Partnership Task Forces (e.g. Renewables/DG, Cement, Steel, Power
    Generation/Transmission (for DSM)

•   Buildings and appliances industries (as customers and providers of technologies/services)

•   Other multilateral organizations—APEC, IEA, multilateral lenders, etc.

Communications
•   Among TF members

•   Partners and stakeholders (industry, government, NGO, researchers)

•   Public (outreach and information campaigns)

•   Non-Partner countries




                                                                                              21
Annual Plan Updates



Appendix A: Individual Project Plans
BATF PR-012006—Harmonization of Test Procedures
Project number: APP BATF PR-012006                    Date: 31 August 2006
Title of project: Harmonization of Testing Procedures (Communities of Practice)
Leading member & co-leading member: Lead: Korea; Co-Leads: U.S. and Japan
Participants: Australia, India
Project Overseer: Mr. Jun-Young Choi, PhD, Energy Evaluation Team, Korea Testing Laboratory

Postal address (leading member): Gyeonggi Techno-Park, 1271-             Phone: +82-31-500-6360
11, Sa-1-Dong, Sangnok-Gu, Ansan-Si, Gyeonggi-Do, Korea, 426-            Fax: +82-31-500-6377
901                                                                      Email: liya67@ktl.re.kr
Financial           Total cost of proposal:
information         US$ 4.8 million
Type of project:
 Demonstration/pilot national policy, law, regulation appliance testing/labeling
  Seminar/symposium training & technical assistance public/consumer information
 Database/website survey, analysis, research others (please specify)
Project start date: 1 Nov 2006                        Project end date: 31Oct 2011
Project summary:
In an effort to eliminate a major barrier to developing successful standards and labeling programs, this
project will develop harmonized test procedures for a number of agreed upon products using a
“communities of practice” model. The project includes the evaluation of existing test procedures, and
revisions to existing or the development of new test procedures in an internationally harmonized
manner. Data will then be amassed using the resulting test procedure for use by various countries, as
desired.
Signature of Project Overseer: Jun-Young Choi
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:



Goals and Objectives
The goals of this project and its sub-projects are:

•   To develop a process for arriving at a methodology for test procedures that measure
    product energy efficiency and/or energy consumption which are harmonized among the
    participant countries, recognized as such by manufacturers, and could be adopted by other



                                                                                                       22
    countries interested in developing labeling, regulatory standards or voluntary levels for
    these products—termed the “communities of practice” model.

•   To develop the methodology of harmonization with test procedures for 4 or more
    products from the priority list using the process described above.

•   To share the developed new methodology, and to recommend the formal standards by an
    economy’s standards-setting agency or by an international agency such as the
    International Standards Organization (ISO) or International Electrotechnical Commission
    (IEC) or both.

•   To amass testing results using the test procedure and potentially existing test procedures
    for these priority products.

•   To develop a process for establishing a base on which mutual acceptance of accreditation
    of energy efficiency testing facilities and the results of test performed at these facilities
    can be achieved.

•   To develop a screening method to be used for prioritizing additional products for which to
    develop harmonized test procedures in the future.

As a result of this project, all Partner countries will have access to internationally harmonized
test procedures and can individually or in groups propose to develop potential performance
levels upon which to base mandatory or voluntary requirements or labeling schemes for these
products as projects to fall under the Partnership at a later date.

In addition, it is necessary to accomplish this project in cooperation with other international
bodies such as the International Standards Organization (ISO) or International
Electrotechnical Commission (IEC) or both. Furthermore, the International Energy Agency
(IEA) is advancing its studies (G8 programs of work: Strategic approach to Gleneagles Plan
of Action on transforming the way we use energy appliances). Their scope is similar to that
of this project, and we acknowledge that conformity is an essential element for these
activities.

Performance Indicators
1. Development of a step-by-step process for establishing the methodology of harmonization
   with test procedures that is inclusive and comprehensive.

2. Share the new methodology with harmonized test procedures and/or recommend to
   standards-setting agency or by an international agency such as the ISO or IEC (or both)
   for at least four products from priority list.

3. Robust data sets including comparison test data in each test facilities for each of the four
   products using the test procedure.

4. List of additional products for BATF to pursue in the future.

5. Screening method for prioritizing additional products of interest to pursue in the future.

The harmonization of test procedures as outlined in this project responds to the priorities set
by the PIC by allowing for collaboration to ‘create an enabling environment for the
development, diffusion, deployment and transfer of existing and new practices’ in the form of


                                                                                                23
the test procedures, as described by the Vision Statement. In addition, by evaluating the
appropriateness of an existing test procedure to serve as the resulting harmonized test
procedure, this project follows section 3.1 of the Action Plan Guidelines, which expects each
Task Force to “build on a wide range of actions already in place in Partner countries” and to
“leverage existing initiatives to maximize return on resources.” Lastly this project responds
to the Work Plan objectives by using “cooperative mechanisms to support further uptake of
increasingly more energy-efficient appliances” and attempting to “identify and respond to a
potentially significant barrier that would limit the implementation of end-use energy
efficiency practices and technologies.” If you cannot measure it, you would not know if it is
energy-efficient.

Background
Many countries have test procedures, standards, and labeling (mandatory and/or voluntary)
schemes for a wide variety of products. In the majority of cases, these test procedures and
resulting performance levels are different, resulting in a worldwide patchwork of testing and
performance requirements for manufacturers to meet in order to sell in that market. In
addition, for countries looking to develop a standards and labeling program the burden of
developing a test procedure and performance levels is daunting. Even if the country were
looking to use a test procedure developed by another, they would need to first evaluate all of
the existing test procedures to determine which is appropriate for the products in their market.
Each of these endeavors is intensive in terms of cost, time, and technical expertise to do it
properly. Harmonized test procedures are fully achievable for many products and would
greatly benefit these countries and reduce the burden on manufacturers of complying with the
multitude of standards worldwide.

Test procedures and rules may be published as formal standards by an economy’s standards-
setting agency or by an international agency such as the International Standards Organization
(ISO) or International Electrotechnical Commission (IEC) or both. Some products may
already have international test procedures, but they are not fully capable of testing energy
consumption on a comparative basis. In addition, it takes a long time to revise or modify an
existing test procedure with new technology or realistic test procedures. It should be noted
that we need harmonized test procedures for products in large trading and energy consuming
Partnership regions.

There have been internationally coordinated test procedure development activities, as well as
activities by national governments with limited international cooperation. For example, the
U.S. Department of Energy and the US Federal Trade Commission have led efforts since
1975 to develop standards for over 16 types of residential appliances and certain commercial
and industrial equipment. The DOE/FTC program was implemented in response to U.S.
federal legislation and allows for public/international input through a formal rulemaking
process. More recently, through voluntary program approaches, there have been efforts led
by the U.S. Environmental Protection Agency to develop testing procedures for external
power supplies and computer monitors. These initiatives actively involved international
counterparts in all aspects of procedure development and resulted in procedures that are
harmonized internationally, as was the goal. Similar efforts are currently under way to
develop internationally harmonized test procedures for televisions and compact fluorescent
light bulbs.

In addition, the Top Runner (TR) standards have been introduced as an energy conservation
standard in Japan. The TR system uses, as a base value, the value of the product with the


                                                                                             24
highest energy consumption efficiency on the market at the time of the standard
establishment process and sets standard values by considering potential technological
improvements added as efficiency improvements.5

The steps in setting a TR standard are, first, to study and decide on a test procedure, next, to
use this procedure to measure the energy-efficiency of all products, and then, to set the
standard at the “efficiency level of the most efficient product plus a margin for technological
improvement.” In the experience of Japan, it is important for appropriate to adopt relevant
test procedures that ensure domestic and international harmonization, based on specific
equipment’s actual usage. When determining methodology for reference values and test
procedures, individual technologies (and their technical limit) should be assessed correctly.

Methodology
For the list of products previously identified as priority by BATF (home digital appliances
(televisions, set-top boxes, personal computers), motors, HVAC-R (air conditioning,
refrigerators, refrigerated display cabinets, and others), lighting (including street lighting))

•   Gather information on existing test procedures or existing efforts to develop test
    procedures, as well as any mandatory and voluntary programs already under way
    internationally.

•   Evaluate quality of existing test procedures as a whole or in parts. It is necessary to
    consider following points for international harmonization of test procedures:

Methodological points;

Test/actual; and

Denominator definitions (e.g. volume).

•   A resulting internationally harmonized test procedure could be the product of putting
    together parts of several different test procedures.

•   Summarizing the methodological issues and set concrete goals for the identification of the
    best practices with harmonization of test procedures.

Circulate “Best practices with methodology with harmonization of test procedures” to
standards-setting agency or by an international agency such as the ISO or IEC or both.

•   If there are no existing test procedures, or existing procedures are inadequate, work with
    testing experts to draft a new test procedure via face-to-face meetings, conference calls,
    and email in working groups for the listed products.

Circulate draft(s) to international energy efficiency community and industry for comment via
e-mail and finalize.

•   Document the process for each product.


1 Target products (21 items): home/office appliances (air conditioners, refrigerators/freezers, microwave ovens,
rice cookers, fluorescent lights, TV sets, video cassette recorders, DVD recorders, PCs, magnetic disc units,
copying machines, etc), transformers, passenger vehicles, freight vehicles.


                                                                                                              25
Circulate a test procedure to manufacturers encouraging them to test products according to
this procedure and existing test procedures and submit results/data.

Get a comparison of test data from different test labs, using the harmonized test procedure
and existing test procedures for each product.

Conduct basic market research into these products and how they are sold in each country
including, but not limited to:

•   Define products and subcategories (classes).

•   Identify product manufacturers and brands sold locally.

•   Identify distribution channels and ratio of sales.

•   Understand the mix of local vs. imported products.

•   Survey manufacturers and/or local trade associations regarding number of products sold
    each year.

•   Determine plug load at various settings and market penetration (what does a typical home
    have, establish installed base of product) through available data or survey homes and
    businesses.

•   Establish an average or typical usage pattern for the product.

Choose a list of additional appliances/products that are of interest to the Task Force.

Establish spreadsheet-based methodology to assess potential benefits for improving the
efficiency of products of interest to include:

•   Establishing energy efficiency and/or energy consumption baselines for each product.

•   Estimating future product energy use and energy savings as a function of energy
    efficiency.

•   Potential environmental and monetary savings to be determined based on country specific
    inputs.

Narrow list of products to pursue based on product savings potential and market barriers and
opportunities. Follow steps 1–3 above for these additional products.




                                                                                              26
Milestones
                                                                                                              Step-1                            Step-2
                                                                                                              Year 1           Year 2           Year 3           Year 4           Year 5
Sub-Project                                                                                                   1   2    3   4   1   2    3   4   1   2    3   4   1   2    3   4   1   2    3    4
For priority products, gather information on existing test procedures and mandatory/voluntary programs
and evaluate
Either revise existing procedures or draft new test procedures and circulate new and existing test
procedures for review
For priority product, finalize test procedures, circulate new and existing test procedures to respective
industries for testing of priority product models
Organize working group for priority products
Amass data for original group of priority products
Complete market research of priority products
Simultaneously choose a list of additional products for the working group to address and being to
conduct market research and develop spreadsheet model for each product
For additional products, gather information on existing test procedures and mandatory/voluntary
programs and evaluate for additional products
For additional products, either revise existing procedures or draft new test procedures and circulate new
and existing test procedures for review
For additional products, finalize test procedures, circulate new and existing test procedures to respective
industries for testing of priority product models
For additional products, amass data for original group of priority products




                                                                                                                                                                                               27
Dissemination of Project Results
The majority of interaction and dissemination will occur via email. A dedicated website may
be established to facilitate posting of documents and comment on draft documents. Target
audience is technical consultants, testing laboratories, government agencies, and other in
Partner and (perhaps) other interested countries.

Assessment of Project
Project results include the actual test procedures to measure energy efficiency and/or energy
consumption for identified products. Energy savings and associated greenhouse gas
reduction can be measured using a variety of methods including Kw per sq m or CO2 per sq
m. For example, energy efficiency measures may reduce the sq m energy consumption and
the associated CO2 emissions may be further reduced where energy is produced by the
building, e.g. solar or thermal.


                                                                                2010
                                            2007        2008        2009        Funding    2011
                                            Funding     Funding     Funding     (US$1,00   Funding     Total
Sub-Project/Task                            (US$’000)   (US$’000)   (US$’000)   0)         (US$’000)   (US$’000)
1. For priority products, gather            200                                                        200
information on existing test procedures
and mandatory/voluntary programs and
evaluate
2. Either revise existing procedures or     400                                                        400
draft new test procedures and circulate
for review
3. Working groups (x3) & workshops          200         200         200         200        200         1,000
(x2/yr/WG)
4. Finalize test procedures, circulate to               400         200                                600
respective industries for testing of
priority product models
5. Complete market research of priority                 200         200                                400
products
6. Amass data for original group of                     200         200                                400
priority products and derive possible
spec/MEPS levels
7. For additional products, gather                                  200         200                    400
information on existing test procedures
and mandatory/voluntary programs and
evaluate
8. For additional products, either revise                           200         400                    600
existing procedures or draft new test
procedures and circulate for review
9. Finalize test procedures, circulate to                                                  400         400
respective industries for testing of
additional product models
10. Complete market research of                                                 200                    200
additional products
11. Amass data for original group of                                                       200         200
additional products and derive possible
spec/MEPS levels
Sub-total                                   800         1,000       1,200       1,000      800         4,800




                                                                                                               28
Participation and Management
Management
• Leader: Jun-Young Choi, Korea Testing Laboratory, Korea

•   Co-Leader: Keitaro Kimura, METI (Ministry of Economy, Trade and Industry), Japan

•   Andrew Fanara and Rachel Schmeltz, EPA, United States

Participation
• Japan: Keitaro Kimura, METI (Ministry of Economy, Trade and Industry); Kiyoshi Saito,
   JEMA (The Japan Electrical Manufacturers’ Association); Tsukasa Kimura, JEITA
   (Japan Electronics and Information Technology Industries Association); Narito Shibaike,
   Panasonic

•   United States: Andrew Fanara and Rachel Schmeltz of US EPA; Michael McCabe and
    Richard Karney of US DOE; Chuck Samuels of Association of Home Appliance
    Manufacturers

•   Australia: Shane Holt of Australia Green Office

•   Korea: Jeong-Ho Park, Korea Testing Laboratory

Funding
TBD




                                                                                        29
BATF PR-022006—Standby Power
Project number:                                Date:
APP BATF PR-022006                             31 August 2006
Title of project: Alignment of national standby power approaches
Leading member & co-leading member: Australia and Korea
Participants: United States and China
Project Overseer:
Charles Edlington, Assistant Director, Equipment and Appliances Team
Department of the Environment & Heritage
Postal address (leading member):                                 Phone: +61 2 6274 1340
        GPO Box 787                                              Fax: +61 2 6274 1814
        Canberra ACT 2601
        Australia                                                Email: charles.edlington@deh.gov.au

Financial           Total cost of proposal:
information         US$4.4 million
Type of project:
 Demonstration/pilot national policy, law, regulation appliance testing/labeling
  Seminar/symposium training & technical assistance public/consumer information
 Database/website survey, analysis, research others
Project start date: 1 Nov 2006                      Project end date: 2015
Project summary:
To develop a common approach that all Partner countries can endorse that delivers the lowest feasible
standby power for agreed appliance types by 2015.
Signature of Project Overseer: Charles Edlington
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:




Goals and Objectives
•   To reduce energy consumed by products which decreases the demand for primary energy
    and is a key to delivering better economic performance, increasing energy security and
    reducing greenhouse gas and air pollutant emissions.

•   To seek a common cost effective approach to address standby power for agreed product
    types by 2015, while understanding that each Partner may flexibly determine the
    application of the approach in their respective economy.

To encourage the understanding and acceptance of standard definitions for standby power as
set out in IEC 62301



                                                                                                        30
To develop a process for countries to gain an understanding of the impacts of standby power
in their markets.

Determine appropriate product sectors and performance levels

•   To provide a marketplace in which global equipment manufacturers can compete fairly
    and responsibly.

Please note it is at the discretion of each Partner to determine the level of their involvement in
this project. A common platform will be pursued, however individual targets and products
are to be determined by each Partner.

Performance Indicators
• A reduction in standby power consumption across Partner countries.

•   A common platform to deal with standby power across Partner countries.

•   The introduction of this approach to a list of agreed products.

The project is consistent with the objectives of the Policy and Implementation Committee,
particularly that articulated through the Buildings and Appliances Task Force objective to
“use cooperative mechanisms to support the further uptake of increasingly more energy-
efficient appliances.”

Addressing standby power is amongst the most cost-effective measures to increase the
efficiency of products.

Background
The Partners recognize that standby power is a growing concern in their respective countries,
however no two Partner countries approach standby power management using similar
approaches. Even Australia and Korea, which have the most similar schemes, yet operate
with uncoordinated appliance types, performance levels and implementation dates.

Past studies suggest standby power may account for as much as 10% of household energy use
in developed countries. It is reasonable to expect, in time, the same numbers for those
Partner countries with quickly developing economies. The IEA has produced reports
postulating the impact excessive standby could have upon the world were all countries to go
down the same product development path.

Methodology
The project would involve four stages:

Stage 1 (2006–08)—Publish action plan/s laying out an agreed common approach to achieve
goals by 2015.

•   Step 1: Process to identify products and sectors to be studied

Establish working group/s (WG) to include all stakeholders

Conduct workshops on measurement



                                                                                               31
Analyze proposed products to ensure there are no significant barriers to adoption of low
standby.

•   Step 2: Standby data gathering

Data gathering for regular country report.

Review current standby standard and future road map of each Partner country.

Undertake benchmarking activities based on the reports.

Set 2015 performance levels for agreed product types.

Stage 2 (2009–11)—Maintain a reporting function measuring the standby of new products
entering the multinational market

•   Process to measure progress by product types and by sectors.

Continue benchmarking activities, including data gathering.

Establish and/or enhance testing capabilities.

Identify products not meeting the standby challenge.

Stage 3 (2012)—Review progress against 2015 performance levels

•   Analyze data to determine whether available products are trending toward performance
    levels.

•   Establish and/or enhance mechanisms to achieve 2015 performance levels.

•   Implement measures to achieve agreed levels, noting that not all member countries may
    reach agreed levels at the same time.

•   Continue benchmarking activities in 2013–14.

Stage 4 (2015)—Report on compliance with 2015 performance levels

•   Determine whether nominated products met performance levels.

•   Report project outcome noting areas where member countries have reached agreed levels.

Milestones
The project would involve four stages:

•   Stage 1 (2006-08)—Publish action plan/s laying out common targets for 2015.

•   Stage 2 (2009-11)—Maintain an annual reporting function measuring the standby of new
    products entering Partner marketplaces.

•   Stage 3 (2012)—Review progress against 2015 targets.

•   Stage 4 (2015)—Report on compliance with 2015 targets.


                                                                                           32
Dissemination of Project Results
•   A website will be established to disseminate information to government, industry and
    other stakeholders within Partner countries.

•   Periodic reporting to government and interested parties will demonstrate progress toward
    the targets set for products

•   A secure site may also be considered to enable structured electronic communication
    within, and between, working groups.

Assessment of Project
•   Without any significant policy action, standby power could account for around
    375 TWh/year of household electricity consumption in 2030 in Partner countries (based
    on IEA projections and data). Experts have demonstrated across a wide range of products
    that waste standby power can be significantly and cost-effectively reduced without
    affecting product functionality and performance.

•   Initial estimates are that standby could be reduced to as little as 100 TWh/year in 2030
    with coordinated policy actions on standby. This reduction would save more than
    140 Mt/year of greenhouse gas emissions in 2030. The saving represents more than the
    total projected electricity consumption for Australia in 2030 (for all sectors).

•   Experts suggest that addressing waste standby power is very cost effective, if dealt with
    during the design phase of product development. Manufacturers need a clear signal from
    governments that the product should be designed using the lowest power possible to
    deliver the desired consumer service by the product.

Data Collection, Analysis, and Project Evaluation
• Data collection is currently undertaken by some Partner countries and the IEA.

•   Future data collection will be the subject of the project including

Annual testing of new products available in retail outlets.

Intrusive household surveys to ascertain the numbers and types of appliances purchased.

•   In the longer term, the project impact will be measured against business-as-usual
    projections within Partner countries.

Participation and Management
Management
• Lead: Australia—Department of the Environment and Heritage

•   Co-lead: Korea—KEMCO supported by KERI

Participation
Other Project Team Participants include:




                                                                                               33
     United States         US DOE
                           US EPA
                           LBNL
                           AHAM

     China                 CNIS
                           CEC

     Korea                 MOCIE
                           KEMCO
                           KERI

     Australia             AEEMA

     Japan                 METI
                           JEITA
                           JEMA



Estimated Budget and Funding Sources
                                        2007 Funding   2008 Funding   2009 Funding   2010 Funding
Sub-Project/Task                        $’000          $’000          $’000          $’000          Total $’000
Secretariat and communications          200            200            200            200            800
services
Working groups (x3) & workshops         300            300            300            300            1,200
(x2/yr/WG)
Expert analysis (inc data collection/   600            600            600            600            2,400
analysis, testing procedures)
Project total                                                                                       US$4.4
                                                                                                    million




                                                                                                              34
BATF PR-032006—Market Transformation
Project number: APP BATF PR-032006              Date: 31 August 2006
Title of project: Market Transformation
Leading member & co-leading member:
Leading Member=Japan & Co-Leading Member=China
Participants: All AP6 member countries
Project Overseer:
Keitaro Kimura, Deputy Director, Ministry of Economy, Trade and Industry of Japan
                                                                    Phone: (81)3-3501-6944
Postal address (leading member):
                                                                    Fax: (81)3-3580-2769
1-3-1 Kasumigaseki Chiyoda Tokyo Japan
                                                                    Email:kimura-keitaro@meti.go.jp
Financial           Total cost of proposal:
information         To be determined
Type of project:
 demonstration/pilot national policy, law, regulation appliance testing/labeling
  seminar/symposium training & technical assistance public/consumer information
  database/website survey, analysis, research others (please specify)
Project start date: September 2006                    Project end date: December 2008
Project summary:
This project leads Partner countries to change their domestic markets into the places where energy-
efficient appliances are facilitated to penetrate. With cooperation of retailers/intermediators as well as
practical use of several incentives, consumers will enrich their pragmatic knowledge of economic value
of energy-efficiency and enhance their motivation for purchasing highly energy-efficient appliances.
Manufacturers will also respond to demand and incentives and market highly efficient equipment. The
result will be a reduction of environmental burden, and private companies making profits to sustain
production and innovation of energy-efficient appliances.
We will summarize measures Partner countries have already taken or are planning to take to motivate
consumers to purchase energy-efficiency appliances, and publish as “best practices handbook.” Based
on the best practices, we will possibly carry out such demonstrative activities as implementing model
practices and benchmark them into specified areas in each Partner country.
Signature of Project Overseer: Keitaro Kimura
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:

Goals and Objectives
This project leads Partner countries to change their domestic markets into the places where
energy-efficient appliances are facilitated to penetrate.

And the project expects that the market transformation would save energy consumption and
CO2 emission for using appliances.




                                                                                                        35
Performance Indicators
Means to present the contributions to energy saving and reduction of CO2 emission by
measures of the project adopted should be considered. In addition to these indicators, the
following ones would be applicable:

•   Replies of retailers or consumers to questionnaires about the result of adoption of
    practical policies/programs.

•   Manufacturers’ reports of changes in volume of energy-efficient equipment models
    supplied to market.

•   Measures newly adopted with reference to ‘best practices handbook’, and number of
    applications for the measures.

•   Volume of access to the website of the Task Force.

Every indicator nominated in the proposal is understood as probable at present. Approaches
to indicators; definition, effect, data collection, etc., should be considered.

The “Market transformation” project (sharing best practice for market transformation in
member countries) is highly prioritized in the following statements from the Partnership
Work Plan:

•   “…sharing knowledge, experience and good practice examples of how industrial
    efficiency, energy efficiency and environmental outcomes can be improved…”

•   “In progressing its work, each Task Force will build on the wide range of actions already
    in place in Partners through national programmes and… seek to leverage existing
    initiatives to ensure maximum return on our resources.”

•    “Use cooperative mechanisms to support the further uptake of increasingly more energy-
    efficient appliances.”

Background
As the global population increases, energy consumption can be expected to increase
proportionally in the commercial and residential sectors.

Every Partner country has national programs for energy conservation, such as the labeling
system, but further conservation will be possible, for example through improving consumers’
recognition of and motivation to participate in these programs. This can be done by
introducing measures other Partner countries have already demonstrated as effective methods
of education or motivation for consumers or suppliers. This project will share and utilize
measures other Partner countries have already taken.

In Japan, for example, the energy-saving labeling system was introduced in 2000 to inform
consumers about the energy efficiency of home appliances and to promote energy-efficient
products. These labels indicate how much the product’s energy efficiency is improved. The
government is going to revise the system in 2006 to show the estimated annual energy charge
on the label.




                                                                                             36
Japan has another rationalized system for retailers. This energy-efficient product retailer
assessment system was introduced in 2003. Retailers who actively promote energy-efficient
products or provide appropriate energy conservation information are selected and receive
awards to use the “Outlets that Excel at Promoting Energy-Efficient Product” logo.

In addition to national programs in place in member countries, the project will identify and
build on existing cooperative projects involving Partner countries to encourage wider
implementation of measures to promote markets for energy-efficient equipment. The United
States, for example, is supporting cooperative activities on consumer education, incentives
and government procurement with partner organizations in China and India. These programs
are also supported by international organizations such as the Global Environment Facility, the
Energy Foundation and the United Nations Development Program. They can provide a
foundation for near-term value-added activities by the BATF, as well as documenting
successful practices.

Methodology
We are looking for more practical measures to facilitate market transformation by reviewing
and analyzing the following initiatives in member countries. The range of investigations may
become wider as the project progresses. In the course of the project, we may propose to form
sub-project groups as appropriate.

(1) Programs to Cultivate the Consumer Market
• National campaign to choose eco-friendly products (against global warming)

•   How to provide consumers with information on energy-efficient appliances. (e.g. labeling
    with annual energy consumption cost); and

•   Education for consumers, or supporting measures.

Education through retailers (e.g. promoting energy-efficient product retailer assessment
systems).

Environmental preference to be a “green consumer,” one who actively chooses eco-friendly
products.

(2) Programs to Shape the Leading Market (Government Procurement and Incentives)
• Government procurement

Coordination with labeled products programs, incorporation of energy efficiency requirement,
etc.

Development of materials and training programs for government procurement officials, etc.

•   Political incentives needed for market creation.

Incentives for steady supply and introduction of efficient products (subsidies, tax credits, etc.).

Investment and support for developing innovative technologies.

The output on finances or contracts may be transferred to or cooperated with project BATF
PR-082006 on financing and contracting.


                                                                                               37
This project should be separated into two stages. In each step presented below, information
exchange and further understanding will be progressed by investigating existing policies and
measures in Partner countries. At the Task Force meeting and workshops, we will review
and benchmark the outputs from the tasks of each step.



Milestones
                                     2006                                                2007                                     2008
Su bm ission of
Act ion P la n t o P IC                         TF Meet in g                                           TF Meet in g
    E n d of Au g.                                Nov.                         F eb..                    Oct ..



                                              Meeting for                   Workshop                  Workshop
                                              the project
                                                                            Energy Expo
                                                                              in Tokyo



        Stage 1 : To publish a “Best practice handbook”
                     Sharing information on
      Step 1
                     the policy/program of
                     AP6

                                               Summarizing the information and set
                                    Step 2
                                               benchmarks to collect the best
                                               practices

                                                                                                    Publish
                                                               Exchanging information               “Best Practice
                                                    Step 3
                                                               with related organizations           Handbook”
                                                               to ensure compatibility among each


                                                                                                                  Stage 2 : To implement
                                                                                                                            the “best practices”
                                                                                                             Carrying out possibly the demonstrative activities in
                                                                                                             specified area, based on the best practices
                                                                                                             collected in the Stage 1




Dissemination of Project Results
•       The target audience: consumers, retailers, and government policymakers.

•       Electronic formats will be uploaded on the website. Members can print copies if
        necessary.

Assessment of Project
This issue will be discussed in the project team together with the discussion on performance
indicators.

Participation and Management
Management
• Leader: Mr. Keitaro Kimura, Ministry of Economy, Trade and Industry, Japan

•       Co-Leader: Ms. Huo Dufang, China Household Electrical Appliances Association

Participation
All Partner countries participate in this project.


                                                                                                                                               38
It is also desirable that more retailers or other businesses in every Partner as well as
governments and industries will participate in it.

The Leader and Co-leader will carry out the following tasks:

•    Setting and management of schedule to lead the project.

•    Assigning tasks to the members.

•    Summarizing the results of opinions and information from each member.

•    Compiling the outcome (best practices handbook).

Proposal to Chair and Co-Chair of the Task Force

An “electronic forum” for each project should be set up on the website of the Task Force,
currently under construction. The Leader and Co-leader of this project should manage the
electronic forum of this project on behalf of the Task Force Chair and Co-Chair.

As the lead, Japan is preparing US$43,500 for the common activities of this project, such as
publishing the handbook and making a basic questionnaire. Other necessary costs may need
to be borne by individual member countries. These include:

•    Travel expenses for attending the project meeting/workshops.

•    Expenses of detailed survey on circumstances of individual country, etc.

Estimated Budget and Funding Sources
To be Considered
                     FY2006
Task                 Funding             2007 Funding   2008 Funding   2009 Funding   2010 Funding
1. Workshop          JP:
(Feb. 2007)          US$8500
                     (cash) for venue,
                     materials, etc.
2. Survey            JP: US$35,000
(Consultancy)        (cash) for
                     organizing the
                     members’ data,
                     etc.
3. Other necessary   US$100,000
Expenses
Project total        US$143,500          US$ 143,500                                  US$287,000
                                                                                      + Funding for
                                                                                      Stage 2 (see
                                                                                      note)




                                                                                                      39
BATF PR–042006—Building Certification
Project number: APP BATF PR–042006                  Date: 31 August 2006
Title of project: Building Certification
Leading member & co-leading member: Lead: China; Co-Lead: U.S.
Participants: Australia, Japan, Korea, India
Project Overseer: Dr. Liang Junqiang, Director of Building Energy Efficiency and New Material,
DOST, Ministry of Construction (MOC)
                                                    Phone: 010-58934548
Postal address (leading member):                    Fax: 010-58933151
To be supplied                                      Email: gjc.liang@mail.cin.gov.cn,
                                                    gjcliang@sina.com
Financial           Total cost of proposal:
information         To be determined
Type of project:
 demonstration/pilot national policy, law, regulation appliance testing/labeling
  seminar/symposium training & technical assistance public/consumer information
 database/website survey, analysis, research others (Please specify)
Project start date: 1 Nov 2006                     Project end date: 31Oct 2011
Project summary:
Energy labeling is a key mechanism for ensuring effective energy-saving management and has a
broader, positive and important effect on economy-wide energy savings. The energy evaluation and
labeling of buildings will not only demonstrate their potential to save energy but also improve market
transparency which can be a catalyst for greater energy efficiency in buildings. In order to overcome
institutional, market and other barriers, the project proposes 15 activities that will foster building
energy labeling. These fall into 4 major areas: 1) policy and management systems, 2) technical
standards and evaluation methods, 3) plan for building energy labeling, and 4) exchange of
information on building energy labeling. The project outputs include a status report on building
energy labeling in each Partner country, incentive policies on voluntary energy efficiency
certification, research on calculation methods of the building energy consumption, technical
guidelines for building energy labeling, and training workshops.
Signature of Project Overseer: Liang Junqiang
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:



Background
Analysis of Energy Consumption and CO2 Emissions
From the 1990s, the energy consumption of Partner countries has been increasing, rising from
36% of world total consumption in 1990 to 52% in 2002.




                                                                                                    40
Rapid growth in construction has led to a large increase in both building floor area and
energy consumption, especially in China, the country with the fastest rate of growth in
building energy consumption. Accompanying rapid urbanization and construction of new
towns, along with improved living standards, building energy consumption in China will
eventually increase to about 35% of total energy consumption.

Along with energy use, CO2 emissions from Partner countries are also increasing—rising
from 44% of the world total in 1990 to 50% in 2002.

Analysis of Building Energy Labeling
Energy labeling is a key strategy to encourage energy-efficient design and management of
buildings. Energy evaluation and labeling of buildings will not only demonstrate the relative
energy efficiency of a building, which can be an incentive to invest in more efficient
technologies and operating practices, but also improves the market transparency as a further
incentive to energy-efficient purchase and investment decisions by real estate developers,
thus speeding the development of a market for low-energy buildings.

The U.S. experience with Energy Star rating of both homes and commercial buildings has led
to some useful experience and practical lessons learned in energy labeling. Energy Star
ratings are based on the actual measured energy consumption of each building, with
comparisons to other similar buildings as a guide to when and where to consider energy-
saving measures. Energy efficiency is also an important part of the green building rating
system under the U.S. Leadership in Energy and Environmental Design (LEED) program,
which has resulted in more than 2,500 buildings certified to date.

Japan has also developed a labeling method to assess the environmental performance of
buildings, Comprehensive Assessment System for Building Environmental Efficiency
(CASBEE), which has been developed in a cooperative academic, industrial and
governmental project. CASBEE is intended for implementation of the environmental
assessment based on the new concept of BEE (Building Environmental Efficiency), which
enables CASBEE to evaluate both the improvement in living amenity for the building users
and the negative aspects of environmental impact.

China has also developed the “Energy Efficiency Labeling Management Method” as the first
stage of an energy labeling system covering specific building products and equipment. The
building energy labeling system has received increasing attention. In 2003 the “Assessment
System for Green Buildings of Beijing Olympics” was carried out, followed in the beginning
of 2006 by two other projects, “Evaluation Standard for Green Buildings” and “Technical
Standard for Performance Assessment of Residential Buildings.” China has thus made a start
on building energy labeling and setting up its own evaluation system and software.

Objectives
Building energy labeling offers a large potential to reduce the building energy consumption
in both developed and developing countries. If building energy labeling is successful in
helping to strictly implement the new building energy efficiency standard in China and to
keep retrofitting existing buildings, there is a potential for China alone to save 4.2 x 1011 kWh
of electricity and 2.6 x 108 tons of oil, while reducing greenhouse gas emissions as much as
8.46 x 108 tons of CO2.

The project objectives are:



                                                                                              41
•   Study experience to date with building labeling and establish technical approaches and
    incentive policies appropriate to each Partner.

•   Based on extensive data collection and analysis, and to the extent necessary and practical,
    begin development of practical benchmarking tools that can be used to monitor energy
    use in existing buildings and to establish performance targets for new buildings during the
    design phase, appropriately linked to building codes.

•   Establish continuous monitoring of energy performance as an accepted best practice in
    the management of large public buildings.

•   Set up the energy labeling method and procedure suitable to each country and continue to
    revise and improve it based on experience. Each Partner should establish its own
    benchmarking tools, or continue to refine existing tools.

•   Demonstrate the power of voluntary market transformation approaches, such as formal
    recognition programs, in improving energy efficiency in buildings.

•   Continue to educate the building sector and the public about building energy labeling, for
    both new and existing buildings.

•   By achieving the objectives mentioned above, encourage continued innovation in energy-
    efficient building design and construction materials to help significantly decrease building
    energy consumption.

A target for this effort might be to hold constant total energy use in buildings despite the
rapid increase in construction and building floor space, and perhaps eventually achieve
significant reductions in building energy use compared with that in 2000.

Analysis of Barriers and Gaps
Differing Policies and Management Systems for Building Energy Labeling
At present, the six Partner countries are pursuing different strategies and programs to save
energy in buildings, and approaches to building energy labeling—as well as the amount of
program experience with labeling to date—also vary considerably. Future sharing of
experience and results will be of benefit to all Partner countries, especially those like China
with little previous experience with regulations or policies on building energy efficiency
certification.

Existing Standards of Building Design and Construction Quality Also Differ
Due to the different climates and building styles for both residential and non-residential
buildings, among Partner countries and even within a Partner, the technical requirements for
energy-efficient envelopes, HVAC systems, renewable energy and building controls should
not necessarily be the same. Every country also has its own approaches to checking and
verifying compliance with energy-efficient requirements, at the design and construction
stages.

A Lack of Comparable Methods for Energy Efficiency Labeling
Some Partners have not yet established methods and procedures for building energy labeling,
while even those that have adopted such methods are using different approaches and different
methods of calculating and comparing performance.


                                                                                                  42
Implementation Programs are not Consistent
Differences in the orientation and emphasis in building energy labels among Partner countries
are sometimes a response to differing political systems and economic conditions, leading to
unique approaches to marketing the label, incentive policies, and so on.

A Lack of Basic Data on Building Energy Efficiency
There is a need for extensive data on building energy efficiency that can serve as the basis for
meaningful benchmarking tools to compare building energy performance.

Activities
In order to address these obstacles and encourage the rapid development or advancement of
building energy labeling, the following 15 activities are proposed for work in this area.
Successfully implementing these can contribute to substantial improvements in building
energy efficiency and reduction in greenhouse gas emissions.

Policy and Management Systems
There are three activities involving policy and management systems

1. Research on Building Energy Labeling Policy and Management
The project will convene a meeting of Partner countries’ experts, to summarize and discuss
the status of building energy labeling, related incentive policies and management systems in
the Partners. The meeting and subsequent work will identify good practices where possible
and discuss the applicability of various incentive and management policies that can meet each
Partner’s situation and market barriers. These results will be provided in reports of the
meeting and further analysis.

Results

•   The report on the status of building energy labeling in each Partner country.

•   The report on successful incentive policies for building energy labeling.

•   Documentation of good practices and recommendations on management systems for
    building energy labeling.

2. Good Practices for Government Promotion of Building Energy Labeling Under a Market
Economy.
The project will carry out consultation among the project participants and key stakeholders in
their countries, including building energy labeling management organization, technical
labeling units and end-users, to identify successful practices and roles for government
organizations to promote building energy labeling within a market economy.

Based on preliminary and extensive analysis and discussion, the project will document
programs that governments have implemented to promote building energy savings, such as
ENERGY STAR and CASBEE. The evaluation will highlight the difference between Partner
countries’ actual situations and programs to promote the building energy labeling. A report
will summarize the successful experiences, and make recommendations for programs and
policies to promote the building energy labeling under market economy.




                                                                                             43
Results:

•   The report on the experiences that developed countries promote the building energy
    labeling in their market situations.

•   Recommendations on promoting building energy labeling rapidly and efficiently in
    market economies.

3. Incentive Policies for Voluntary Energy Efficiency Certification
Voluntary energy efficiency certification programs have had notable successes, in the U.S.
and other Partner countries. After reviewing the experiences of successful programs in a
number of Partner countries, the project will study and recommend incentive policies on
voluntary energy efficiency certification. Each participating Partner will determine the
policies that are suitable to its specific situation. Where appropriate individual Partner
countries will take steps to adopt or modify incentives to accelerate voluntary energy
efficiency certification.

Result:

•   Incentive policies for voluntary energy efficiency certification.

Technical Standards and Methods
There are six activities on the area, to establish the technical basis for building energy
certification:

•   Collection and analysis of extensive building energy performance data.

•   Technical guidelines for building energy labeling.

•   Research on indices used for the building energy evaluation.

•   Methods for calculating building energy consumption.

•   Methods for measurement of building energy consumption.

•   Develop software to evaluate the building energy efficiency.

Each Partner should start the collection and analysis of extensive building energy
performance data to serve as the basis for development of energy efficiency certification
methods and the development of energy labeling. This will include establishment of standard
measurement and evaluation methods for building energy efficiency, mandatory or voluntary
labeling options for both residential buildings and public buildings. The project will draw on
study of the experiences of the developed countries and will identify approaches to integrate
building energy efficiency into design and inspection systems. The project will develop
software to be used for the calculation of building energy consumption. It will develop the
technical materials to support energy labeling and regulation energy labeling in the market.

Results:

•   Analysis of extensive building energy performance data of residential building.

•   Analysis of extensive building energy performance data of public building.


                                                                                             44
•   Technical guidelines for building energy labeling for residential building.

•   Research on indices used for the evaluation of energy consumption in residential
    buildings.

•   Research on calculation methods of the building energy consumption and related software
    for residential buildings.

•   Research on measurement methods for energy consumption in residential building.

•   Research and explore the software to evaluate the building energy consumption for
    residential buildings.

•   Technical guidelines for building energy labeling for public building.

•   Research the indices used for the evaluation energy consumption of public buildings.

•   Research on calculation methods for energy consumption public buildings and related
    software.

•   Research on measurement methods for energy consumption in public building.

•   Research and explore the software to evaluate the building energy consumption in public
    building.

Implementation Plan for Building Energy Labeling
There are four activities on implementation planning for building energy labeling.

    1. Establish continuous monitoring of energy performance in the management of large
    public buildings. Establish continuous monitoring of energy performance as an accepted
    best practice in the management of large public buildings.

    Result:

Measurement and analysis report on the energy efficiency in buildings for public building.

    2. Pilot project on mandatory building energy labeling. Start a pilot project on building
    energy labeling based on the label design, procedures and roles of government
    organizations and the market developed in previous activities.

    Result:

Mandatory building energy labeling results on the pilot project.

    3. Pilot project on voluntary energy efficiency certification programs. Implement a pilot
    project to test voluntary marking authentication procedure, with separate certification
    marks for public building and the residential buildings, and to develop experience to
    support broader implementation.

    Result:

Voluntary energy efficiency certification results on the pilot project.



                                                                                             45
   4. Publicize the building energy labeling programs. To establish a ‘Building Energy
   Efficiency Evaluation Committee’ for each Partner, drawing on experts, and compile
   material to be used for the popularization and training for the relevant technical personnel
   and labeling unit.

   Results:

Popularization material.

Training workshops

Building energy efficiency evaluation committee.

The Exchange of Information of Building Energy Labeling
There are two activities on exchange of information of building energy labeling.

   1. Information exchange on building energy labeling. In order to promote the work of
   energy labeling, set up a network to share experiences, organize technical communication
   on a scheduled basis, organize experts from developed Partner countries who can give
   training to developing Partner countries, build up a Partnership “Building Energy
   Efficiency Evaluation Experts Committee.” With the authorization of the PIC, a website
   for exchanging the information will be created.

   Result:

Partnership Building Energy Efficiency Evaluation Experts Committee.

Building energy labeling network for the Partnership.

   2. Communication of experiences and improvement of tools for building energy labeling.
   The project will summarize the results on the pilot projects of the participant Partner
   countries, and improve individual tools based on experience shared under this project.

   Result

Comparison and improvement of methods for the implementation, measurement and
evaluation of building labeling programs for Partner countries.

Organizations
To oversee the implementation of the “Action Plan for Building Certification (Energy
Rating/Labels)” and further activities, an organization is to be created, led by the relevant
organizations for building energy efficiency certification of each Partner.

This organization will include three separate parts: first, the leader group will take charge of
the schedule and implementation of the activities in each country; second, the experts
consultant system can give advice and suggestions to the activities and reports; third, the
project office, take charge of the detailed work of the plan, contact and communicate with
other organizations.




                                                                                                46
The functions are as follows:

     1. The leader group: composed of the director of the relevant organizations for building
     energy efficiency certification in each country, will take charge of the overall
     management of the project, correspond with the PIC office and Partnership project office.

     2. The experts consultant system: composed of the experts from each Partner familiar
     with the policy, technical, finance, society, and environmental situations and with
     experience in measurement of building energy consumption, and a wide range of the
     related knowledge, will present advice based on the highest level of each Partner’s
     building energy-saving and experiences in the implementation of the international project.

     3. The project office: composed of the research and measure organization or institute
     affiliated to the Ministry of construction will coordinate day-today implementation,
     establishment of standards and measurement of buildings.

Budget and Schedule
Budget
                                                                                                       Budget
       Activity
                                                                                                       (US$’000)
1      4.1.1 Research on building energy labeling policy and management.                               46
2      4.1.2 Good practices for government promotion of building energy labeling in a market economy   35
3      4.1.3 Incentive policies for voluntary energy efficiency certification                          40
4      4.2.1 Collection and analysis of extensive building energy performance data                     80
5      4.2.2 Technical guidelines for building energy labeling                                         42
6      4.2.3 Research on indices used for the building energy evaluation                               36
7      4.2.4 Methods for calculating building energy consumption                                       40
8      4.2.5 Methods for measurement of building energy consumption                                    50
9      4.2.6 Develop software to evaluate the building energy efficiency                               80
10     4.3.1 Establish continuous monitoring of energy performance in the management of large public
                                                                                                       125
       buildings.
11     4.3.2 Pilot project on mandatory building energy labeling                                       56
12     4.3.3 Pilot project on voluntary energy efficiency certification programs                       56
13     4.3.4 Publicize the building energy labeling                                                    60
14     4.4.1 Information exchange on building energy labeling                                          60
15     4.4.2 Communication of experiences and improvement of tools for building energy labeling        100
       Total                                                                                           906

Schedule
June 2006 – September              Collect information and develop project plan
2006

September 2006 –                   Plan detailed activities and develop implementation the plan for
December 2006                      each country

January 2007 – June                Evaluate policy and management systems, carry out technical
2007                               system research and stage achievement report




                                                                                                              47
July 2007 – December   Finish the policy and the management system, the technical system
2007                   research; Design the pilot projects

January 2008 – June    Pilot projects on building energy labeling
2008

July 2008 – December   Summarization and popularization
2008

January 2009 – June    Establish the information exchange network and continue
2009                   improving the tools for energy labeling




                                                                                     48
BATF PR-052006—Improvements to Existing Buildings
Project number: APP BATF PR-052006                   Date: 31 August 2006
Title of project: Existing Buildings
Leading member & co-leading member: U.S.
Participants: Australia, China, Japan, India
Project Overseer: Mr. Gary McNeil


Postal address (leading member):
International Capacity Building Branch
Climate Change Division (6205J)                      Phone: 202 343 9173
Office of Air and Radiation, USEPA                   Fax: +1 202 343 2342
Ariel Rios Building                                  Email: mcneil.gary@epa.gov
1200 Pennsylvania Ave NW
Washington, DC 20460 USA
Financial           Total cost of proposal (US$, by year): [to be determined based on continuing
information         discussion among BATF participants]
Type of project:
  demonstration/pilot national policy, law, regulation appliance testing/labeling
  seminar/symposium training & technical assistance public/consumer information
 database/website survey, analysis, research others (Please specify)
Project start date: 1 Nov 2006                       Project end date: 2009
Project summary:
The project would employ market transformation strategies to improve energy efficiency in commercial
and residential buildings, based on the rationale that abundant opportunities exist to cost-effectively
make such improvements by sharing experiences among Partner countries and implementing proven
program approaches. There are three subprogram elements:
Operations and Maintenance, with the goal of reducing energy use in participating commercial buildings
by 10 to 15%, through no-cost/low-cost measures and cost-effective retrofits.
Residential Buildings, with the goal of improving energy-efficiency through improved installation of
HVAC equipment and through addressing other barriers to improved energy efficiency.
Program Design, with the goal of incorporating building performance monitoring and recognition
activities into government and business policies, programs, and building portfolio management
practices.
Signature of Project Overseer: Mr. Gary McNeil
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:




                                                                                                    49
Goals and Objectives
Establish continuous monitoring of energy performance as an accepted best practice in the
management of large commercial buildings (also sometimes referred to as “public”
buildings).

Increase awareness of the value of low-cost/no-cost measures as cost-effective means to
improving energy performance in commercial buildings. Demonstrate the power of
voluntary market transformation approaches, such as formal recognition and
education/outreach programs, in improving energy efficiency in commercial buildings.

Demonstrate the value of portfolio management strategies to improve building energy
efficiency in commercial buildings in both the public and private sectors.

Accelerate the practice of cost-effective energy-efficiency retrofits based on life-cycle cost
analysis using a whole-building energy performance approach.

Improve the energy efficiency of residential buildings through improved installation of
HVAC equipment and through addressing other barriers.

Promote well-designed programs and activities that incorporate elements such as building
energy performance monitoring to improve efficiency of commercial and residential
buildings.

Performance Indicators
To be determined.

This project responds to the priorities of the PIC by embodying the following section from
the Partnership Vision Statement:

       “The partnership will collaborate to promote and create an enabling environment for
       the development, diffusion, deployment and transfer of existing and emerging cost-
       effective, cleaner technologies and practices, through concrete and substantial
       cooperation so as to achieve practical results (italics added).”

This project responds to the Action Plan Guidelines:

       “Each Task Force is expected to build on the wide range of actions already in place in
       Partner countries through national programs and other international cooperative
       arrangements and, where appropriate, seek to leverage existing initiatives to ensure
       maximum return on resources.”

       “The Action Plans should identify, and promote ways and means to deploy, the best
       of current commercially viable technologies and practices, as well as the uptake of
       emerging cleaner and more efficient technologies.”

The project responds to the following objectives from the Work Plan:

       “Promote best practice and demonstrate technologies and building design principles to
       increase energy efficiency in building materials and in new and existing buildings.”




                                                                                                 50
       “Support the integration of appropriate mechanisms to increase the uptake of energy-
       efficient buildings and appliances into broader national efforts that support sustainable
       development, increase energy security and reduce environmental impacts.”

       “Systematically identify and respond to the range of barriers that limit the
       implementation of end-use energy efficiency practices and technologies.”

Background
Based on the U.S. experience, and limited field research conducted by EPA in China and
India:

   •   Substantial opportunities exist to improve the energy performance of buildings
       through improvements in building operation and maintenance (O & M). There are
       also untapped opportunities for cost-effective retrofits to improve energy performance.

   •   In general, even many of the best-managed buildings do not collect and analyze
       energy use data and therefore are not prepared to effectively manage building energy
       performance. More effective management is the key to both improved O & M and
       implementation of retrofits when appropriate.

   •   There is a very high interest in training in building energy management.

   •   Many buildings are relatively new, and their owners and managers are typically
       reluctant to implement retrofits, because they are unwilling to replace functioning
       equipment. Consequently, in these buildings there is a high level of interest in low-
       cost and no-cost measures to improve energy performance.

   •   Building control systems are often not fully operational because of equipment and
       training problems. Improvements in control system operations can often improve
       efficiency quickly at low cost.

   •   A building energy services (ESCO) sector is not well established in China and India,
       which means that buildings typically must rely on in-house staff to improve energy
       performance. This creates an opportunity for training programs, and to strengthen the
       role of established energy service providers such as engineering firms and suppliers of
       control systems and HVAC equipment.

   •   Building owners and managers are eager to be formally recognized for achievements
       in energy efficiency.

   •   There is a general lack of experience with voluntary market transformation programs
       and portfolio-wide approaches to building energy management, which have been
       effective in the United States.

   •   The green buildings movement is increasingly influencing the design of new
       buildings in China and India, and offers an opportunity to promote energy efficiency.
       Energy efficiency is not always understood as an essential element of green building
       performance that delivers continuous cost savings and prevents pollution over the
       lifetime of the building. It is also not recognized that achieving these important
       benefits requires sustained long-term attention to building maintenance and operations.



                                                                                               51
   •    Installation practices are critical to achieving the potential savings from high-
        efficiency residential HVAC equipment. In some Partner countries, there are not
        clear guidelines for high-quality installation and technician training, and consequently
        these savings are not realized.

   •    Well-designed and well-managed government-sponsored voluntary programs can be
        powerful tools for promoting energy efficiency, environmental improvement and
        economic growth.

Methodology
   •    Share best practices such as recognition and technical assistance programs, and
        education and outreach.

   •    Demonstrate the value of data collection, data analysis, and monitoring energy
        performance in promoting no-cost/low-cost improvements and cost-effective retrofits
        in buildings. Work with stakeholders such as building owners, property management
        firms, architecture and engineering firms, equipment manufacturers, energy services
        providers, utilities, associations, and local/regional/national governments. Elements to
        include:

           –    Training.

           –    Tools.

           –    Technical assistance.

           –    Case studies to profile energy efficiency practices and technologies.

   •    Train building managers in data collection and monitoring, to ensure that energy-
        efficient designs translate into energy-efficient performance.

   •    Work with high-profile green buildings to document energy savings and demonstrate
        the environmental and financial benefits of monitoring and improving energy
        performance during the operating life of the buildings.

Operations and Maintenance
A building’s energy use is significantly determined by O & M practices. No-cost and low-
cost measures can quickly reduce building energy use by 10–15%, and reduce operating costs
and greenhouse gas emissions without compromising tenant comfort or services.

With the goal of increasing awareness of the value of no-cost/low-cost measures as cost-
effective means to improve energy performance, the following activities are proposed:

    •   Train owners and managers of 500 buildings.

    •   Train 200 government officials.

    •   Prepare 20 case studies of no-cost/low-cost EE measures.

    •   Best practices workshop for national, regional and local government officials to
        promote whole-building energy performance.


                                                                                             52
    •   Workshops in 15 major cities in China and India.

   Based on assessment of global best practices, and research in participating countries,
   develop outreach and technical assistance programs based on the barriers to cost-effective
   retrofits identified in each country.

Residential Buildings
    • Identify barriers to increased energy efficiency in residential buildings (both single-
       and multi-family) and implement strategies to overcome those barriers.

    •   The Consortium for Energy Efficiency in the United States estimates that a high-
        quality installation of residential HVAC equipment can reduce energy consumption
        by as much as 35% and peak demand by as much as 25%. The United States is
        developing a set of consistent guidelines to define a standard set of practices for
        HVAC contractors. Establishment of an installation specification would enable
        training and certification of contractors, better-quality installations, and significant
        energy savings.

    •   Depending on climate, adding insulation to roofs and attics of small residential
        buildings and sealing cracks to reduce air leakage may be a more cost-effective way
        to improve energy efficiency in residential buildings. Replacing single-pane
        windows with insulated glass with low-E coatings may also be a cost-effective
        measure.

    •   Evaluate and share current practices in HVAC installation across Partner countries at
        initial workshop. Time and location to be determined.

    •   Review standards and certification that may exist across different Partner countries.

    •   Determine extent of need to develop installation specifications, and how they could
        be the same or different in the participating Partner countries.

    •   Develop training programs.

    •   Develop specifications.

Program Design.
   The United States has successfully implemented a range of programs to promote higher
   energy efficiency in existing buildings. A combination of policies is needed for market
   transformation:

    •   Technology development.

    •   Regulatory programs.

    •   Voluntary programs.

   Effective coordination across levels of government can strengthen implementation.

   Simple messages, education, outreach and training are very important.



                                                                                               53
    The sub-project would work with governments, businesses, and other organizations to
    incorporate building performance monitoring, improvement and recognition activities
    into policies, programs, and building portfolio management practices. For example, this
    might be accomplished through a “building tune-up” approach that would assess the
    potential for upgrades, and support and assist building owners who wish to undertake
    upgrades.

    This sub-project could begin by convening a workshop in 2007 to share best practices and
    determine country interests and needs.

Retrofit of Existing Building Chillers
•   Work with industry experts to document and demonstrate the energy, environmental, and
    cost advantages to new technologies for buildings, specifically the advances made in
    building chillers.

•   New model chillers offer potential for significant energy savings by operating 35% more
    efficiently than older models, providing increased reliability, requiring less maintenance,
    having lower probability of system failures, and reduced refrigerant leakages. Co-
    benefits of increased efficiency include reduced air pollution from thermal energy
    generation, mainly coal, oil, and gas based.

•   The opportunity to replace chiller equipment in existing buildings supports other
    subprojects addressing whole building energy efficient design, operation, and
    maintenance.

•   Support market transition to more energy-efficient chillers through continued efforts to
    identify and address country- and sector-specific barriers to the transition (i.e.,
    environmental and energy policy and regulations, building codes and standards, power
    supply infrastructure, competing investment options).

•   Identify and build on related actions that may be in place through national programs and
    other international cooperative arrangements and, where appropriate, seek to leverage
    existing initiatives to support project objectives through demonstration projects, data
    collection and reporting.

•   Develop case studies documenting energy, environmental, and cost advantages to
    building chiller replacements.

•   Based on research in participating countries, develop outreach and technical assistance
    programs based on the barriers to the uptake of more efficient chiller replacement
    equipment for existing buildings in each country.

Milestones
    2006–2007: Begin initial activities under sub-projects including stock-taking and data-
    collection activities.

    2007–2008: Implementation of sub-projects including tool development, workshops,
    technical assistance, and training.

    2009: Evaluation of project results.



                                                                                               54
Dissemination of Project Results
To be determined.

Assessment of Project
           •       Participating buildings are achieving measurable results.

           •       Governments have initiated policies and programs to advance energy efficiency
                   improvements in the areas of project focus.

           •       More specific expected results to be identified during project development.

Participation and Management
Management
Leader: Mr. Gary McNeil, U.S. Environmental Protection Agency

Participation
To be determined based on participating Partner interest.

Estimated Budget and Funding Sources
To be determined

Sub-                  2006 Funding                   2007 Funding   2008 Funding   2009 Funding   2010 Funding
Project/Task
1. [Sub-project]      Country 1: US$__K (cash, in-
                      kind)
                      Country 2: US$__K (cash, in-
                      kind)
                      etc.
2. [Sub-project]      etc.
3. [Sub-project]
4. [Sub-project]
5. [Sub-project]
etc.
Project total         Country 1: US$__K (cash, in-
                      kind)
                      Country 2: US$__K (cash, in-
                      kind)
                      etc.




                                                                                                           55
BATF PR-062006—Building Codes
Project number: APP BATF PR-062006                    Date: 31 August 2006
Title of project: Role enhancement of Building Energy Codes
Leading member & co-leading member: Lead: Korea; Co-Leads: U.S
Participants: China, Japan, United States, Australia, India
Project Overseer: Mr. Seung-Eon Lee, PhD, Building & Urban Research Department, Korea Institute
of Construction Technology
                                                                         Phone: +82-31-9100-357
Postal address (leading member): 2311, Daehwa-Dong, ilsan-Gu,
                                                                         Fax: +82-31-9100-361
Goyang-Si, Gyeonggi-Do, 411-712, Republic of Korea
                                                                         Email: selee2@kict.re.kr
Financial
                    Total cost of proposal: US$5.1 million
information
Type of project:
 Demonstration/pilot national policy, law, regulation appliance testing/labeling
  Seminar/symposium training & technical assistance public/consumer information
 Database/website survey, analysis, research others (Please specify)
Project start date: 1 Nov 2006                        Project end date: 31 Oct 2011
Project summary:
Building codes for energy conservation is the most basic and powerful measure of each country as the
essence of each country’s available technologies and policies. A good and successful code could be
used for a reference that allows other countries to reduce an investment of time and money for
developing and improving their own code. This project includes exchanging each Partner’s code
information, policy systems, evaluation and rating systems, and lessons learned acquired through
implementation. This project covers technical matters as well as governance system of building code.
Finally, this project should contribute to enhance international trades of building materials and systems
also international cooperation of building related companies to develop new markets.
Signature of Project Overseer: Seung-Eon Lee
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:



Goals and Objectives
The goal of this project is to enhance mutual understanding of each country’s building energy
code, with the ultimate objective to increase international trade among building industries as
well as developing and improving each member country’s own code.

As a result of this project:

1)      The Partner countries with well-organized codes have a chance to share their valuable
        experience with other Partner countries who are still seeking more advanced building
        energy codes and governance systems.



                                                                                                        56
2)     The Partner countries undergoing the development of more acceptable and stringent
       codes will reduce the time and expenditure for improving codes by using the
       experience and technical system of other Partner countries with well-organized
       building codes.

3)     By mutual understanding of other Partner countrie’s codes and finding the common
       principles of code systems, an agreed vision for future work of harmonized standards
       will be established.

4)     Harmonizing of underlining technical evaluation and rating provisions will foster the
       development of consistent codes that are robust and that have high levels of
       compliance from the manufacturer supplier and building construction industries.

Performance Indicators
1)     Publishing “The Comparison of Building Energy Code between APP Countries”

2)     Publishing “The Future Role of Building Energy Code for National Energy
       Conservation”

3)     Publishing (1+2) “A strategic vision for international cooperation on building energy
       codes”

4)     Visibility and detailed plans to implement or improve window labeling and
       certification programs leading to more robust and compliant building codes

The building codes as outlined in this project respond to the priorities set by the PIC by
allowing for collaboration to “create an enabling environment for the development, diffusion,
deployment and transfer of existing and new practices” in the form of the building codes, as
described by the Vision Statement. In addition, by evaluating the appropriateness of an
existing test procedure, this project follows section 3.1 of the Action Plan Guidelines that
expects each Task Force to “build on a wide range of actions already in place in partner
countries” and to “leverage existing initiatives to maximize return on resources.” Lastly, this
project responds to the Work Plan objectives by using “cooperative mechanisms to support
further uptake of increasingly more energy-efficient appliances” and attempting to “identify
and respond to a potentially significant barrier that would limit the implementation of end-use
energy efficiency practices and technologies.” The Partners will demonstrate technologies,
enhance and exchange information relating to energy efficiency codes, share experiences and
policies on best practices with regard to standards and codes, as well as labeling schemes for
buildings, building materials and appliances.

Background
Most Partner countries have their own building codes, standards, and labeling (mandatory
and/or voluntary) schemes for building energy conservation. And building code for energy
conservation is the most basic and powerful measure of the essence of each Partner countrie’s
available technologies and policies.

In the majority of cases, these building codes and performance levels required are different
according to the circumstances of each Partner, resulting in trade barriers for companies to
make inroads into the foreign markets.




                                                                                               57
A good and successful code could be used for a reference that allows other Partner countries
to reduce their investment of time and money for developing and improving their own code.

This project includes exchanging each Partner country’s code information, policy systems,
evaluation and rating systems and lessons learned. It could also cover technical matters as well
as governance systems of building codes.

Finally, this project should contribute to enhance international trade of building materials and
systems also international cooperation of building companies to develop new markets in
Partnership regions.

In addition, for Partner countries looking to develop or improve their codes and standards or
labeling program, this project will reduce the burden of code making, which needs intensive
endeavors in terms of cost, time, and technical expertise to do properly. They could refer to
codes developed by another Partner and evaluate them to determine which is appropriate for
their country’s circumstances and market situation.

This project will specifically address a critical area within the building code and building
construction arena. Windows are the weakest, or most energy-intensive, component of the
building thermal envelope. As a result there is an enormous opportunity for cost-effective
energy and carbon reduction with the introduction of new technologies. For example, the
development and significant penetration of Low E windows (residential > 50% and
commercial > 25%) in the U.S. economy has resulted in over US$30 billion in energy savings.
With this mature market, the manufacturing cost of Low E glass has dropped to about
US$0.50 to US$0.25 per square foot.

To achieve this significant penetration, an effective window rating, labeling and certification
program has been critical and has resulted in code adoption for more efficient window
products in both heating- and cooling-dominated climates.

By establishing and improving window labeling and certification programs cohesively among
Partner countries, the process of developing improved window ratings can be accomplished
more efficiently and with reduced cost for all Partner countries. The effective
implementation of more stringent window codes in all Partner countries will lead to greater
manufacturer investment in each country, promoting higher valued jobs, and will result in
positive net benefits to consumers and national economies.

Methodology
For the comparison of building energy code between Partner countries:

    •   Gather information on existing codes or efforts to develop building energy codes, as
        well as any mandatory and voluntary programs already underway executed by
        government.

    •   Establish working group and prepare survey sheet.

    •   Gathering Partner report in given survey sheet which include the scope, target
        buildings, performance level required, implementation method (mandatory or
        voluntary and prescriptive or performance based etc.) of building energy codes and
        general circumstances of each country (statistics related to building sector; existing
        building stocks, the amount of new building construction, population etc.).


                                                                                                 58
    •   Evaluate structures and level of existing codes of Partner countries.

    •   Submit a full version of code (related building energy) in English for mutual
        understanding of other Partner’s codes.

    •   Compare required level of basic and main items(insulation level, air tightness,
        efficiency of building systems etc.).

    •   If there is a need of new part or items for building energy codes, or existing codes are
        inadequate or should be improved, work with code experts to draft a new code
        contents via face-to-face meetings, conference calls, and e-mail in working groups.

    •   Establish spreadsheet-based methodology to assess resulting benefits of building
        code execution which include:

    –   National energy consumption reduction by code execution.

    –   Estimated reduction of GHGs by building energy code strengthening.

    •   Circulate a report “Building codes of APP countries” to Partner countries to review
        and amend it.

    •   Use data collected to develop various performance levels for use by policy makers.

For enhancing role of building energy code for national energy conservation:

    •   To enhance future role of building energy code, share experiences, find the new
        methodologies and gather idea of middle & long term plans for member countries,
        finally this work will contribute to the reduction of national energy consumption as
        well as developing new technology and extending market capacity.

    •   Analyze the relationship between the code enforcement and national energy
        consumption on long-term basis.

    •   Find the new role of codes to enhance building environment performance, leading
        capacity of technology development and market extension etc.

    •   Circulate a report “The Role of Building Energy Code for National Energy
        Conservation” to Partner countries to review and amend it.

For establishing or improving Window Labeling and Certification Programs

    •   Market information and analysis (Stage 1)

    •   Determination of standard and procedures for rating (stage 2)

    •   Implementation of the domestic rating procedure (stage 3)

    •   Recognition of cross-certification and labels (stage 4)

Project 1: The comparison of building energy codes between Partner countries



                                                                                               59
    •   Collect each Partner’s report written in given survey sheet on the general status of
        building energy code including scope, target building (usage, scale etc.)

    •   Submit a full version of code in English for improving mutual understanding between
        Partner countries.

    •   Report on current national codes and programs of each Partner.

    •   Report on code structure and main contents.

    •   Report on implementation system (mandatory or recommendation).

    •   Report on national circumstances regarding building energy consumption (weather,
        population, GDP, energy intensity, amount of building stock and new building and
        etc.).

Project 2: The future role of building energy code for national energy conservation

    •   Report on building energy consumption of each Partner.

    •   Report long-term estimation of energy consumption in building sector.

    •   Report possible scenarios to reduce energy consumption and GHGs by toughening or
        role enhancement of codes.

    •   Draft a report.

    •   Circulate to Partner countries for comments and to finalize.

Project 3: For establishing or improving window labeling and certification programs

    •   Market information and analysis (Stage 1)

   –    Hold workshop establishing status of energy-efficient window potential and needs of
        the industry with tangible next steps to help grow the industry.

   –    Gather information and analyze rating standards and operation documents (program
        documents) including available software tools for analyzing and calculating
        fenestration ratings.

   –    Market survey of types of buildings, construction practice and fenestration systems

   –    Survey and determination of market key players and survey the national and state
        level building codes with the other tasks of this project.

   –    Gather information about the national and local infrastructure, such as testing
        facilities and equipment available for testing and, simulation laboratories.

   •    Determination of standard and procedures for rating (Stage 2).

   –    Workshop/Conference discuss the findings and analysis of the stage 1.



                                                                                               60
–   Updating Simulation tools and databases to include all participating Partner countries.

–   Creating documentation for the use of simulation tools (simulation manuals) and
    testing laboratory equipment requirements, operations, quality control and designs.

–   Developing a quality control program and program documents.

–   Research co-ordination to develop the next generation windows and rating procedures.

•   Implementation of the domestic rating procedure (Stage 3)

–   Training, organizational development, etc.

•   Recognition of cross-certification and labels (Stage 4)

–   Procedure and/or label harmonization, improved window trade, code implementation,
    manufacturer investment in value added window production in domestic countries.




                                                                                          61
Milestones
Sub-Project                         Year 1           Year 2           Year 3           Year 4           Year 5
                                    1   2    3   4   1   2    3   4   1   2    3   4   1   2    3   4   1   2    3   4
Organize working group for
inquiry sheet
Collect country report with
inquiry sheet
Evaluate country report and
compare main items of building
energy codes
Submit full version of code in
English
Draft “Building codes of APP
countries”
Circulate and review a draft and
amend
Publish a final report with title
“Building codes of APP
countries”
Submit long term plans and
energy consumption data of each
country
Develop simplified estimation
tools to estimate future energy
consumption based on national
statistic data
Report long-term estimation of
energy consumption using
estimation tool
Report basic principles and
possible scenarios for role
enhancement of national codes
Circulate to member countries for
comments and to finalize




                                                                                                                         62
Dissemination of Project Results
Majority of interaction and dissemination will occur via email. A dedicated Partnership
website may be established to facilitate posting of documents and comment on draft
documents. Target audience is technical consultants, testing laboratories, government
agencies, and other in Partner and (perhaps) other interested countries.

Assessment of Project
Project results include the essential information of Partner’s codes and future effect of energy
code by enhancing its role. Possible energy consumption and GHGs reduction rate will be
presented by code’s role reasonably strengthened.

Participation and Management
Management
  Leader: Mr. Seung-Eon Lee, Korea Institute of Construction Technology

Participation
   Japan: Ms. Akiko Ito of Ministry of Land, Infrastructure and Transport; Mr. Hirokazu
   Ikezawa of Nikken Sekkei; Kiyoshi Sawaki of Agency for National Resources and
   Energy

     Australia: Mr. Michael Green , Tony Marker of DEH

     United States: Mr. Jean Boulin (*POC), Mr. Richard Karney and Mr. Marc LaFrance of
     U.S. DOE/Building Technologies; Ms. Jean Lupinacci of U.S. EPA/Energy Star; Mr. Joe
     Huang of LBNL; Mr. Ken Mentzer of NAIMA (Insulation Mfrs. Assoc.); Mr. Bipin Shaw,
     NFRC

     China: TBD

     India: TBD(will want to join for window)

Estimated Budget and Funding Sources
TBD

                         2007        2008        2009          20010       2011
                         Funding     Funding     Funding       Funding     Funding     Total
Sub-Project/Task         (US$’000)   (US$’000)   ((US$’000))   (US$’000)   (US$’000)   (US$’000)
1. The Comparison of     600         600         200           200         200         1,800
Building Energy Code
between Partner
countries
2. The Future Role of                            500           500         500         1,500
Building Energy Code
for National Energy
Conservation
3. Establishing or       300         300         400           400         400         1,800
improving Window
Labeling and
Certification Programs
Project total            900         900         1,100         1,100       1,100       5,100




                                                                                               63
BATF PR-072006—High-Performance Buildings and Development
Project number: APP BATF PR-072006                     Date: 31 August 2006
Title of project: High Performance Buildings and Developments
Leading member & co-leading member: Australia, Japan
Participants: China, United States, India
Project Overseer:
Dr Michael Green, General Manager, Manufacturing Engineering and Construction Division,
Department of Industry, Tourism and Resources
                                                       Phone: +61 2 9236 6799
Postal address (leading member):
                                                       Fax: +61 2 9237 5051
PO Box 9839
                                                       Email: michael.flaherty@industry.gov.au
Canberra City 2601
                                                       Copy please to: michael.green@industry.gov.au
Financial            Total cost of proposal:
information          To be determined
Type of project:
 demonstration/pilot national policy, law, regulation appliance testing/labeling
  seminar/symposium training & technical assistance public/consumer information
 database/website survey, analysis, research others (please specify)
Project start date: August 2006                        Project end date: December 2010
Project summary:
The project aims to increase the proportion of new buildings and developments that incorporate cost-
effective measures that support the clean development and climate objectives of the Partnership. The
project also aims to support the integration of efficient buildings and infrastructure into larger abatement
projects (e.g. “zero net energy” precincts), identify promising areas for technical and market
development to support wider uptake of advanced building design.
A number of recent iconic projects demonstrate advanced building technologies and practices that can
significantly improve building performance in areas like energy efficiency. However, high-performance
buildings should not be iconic projects alone. Low-cost, sustainable and disaster-resistant building
solutions are needed globally.
Market-based strategies aimed at accelerating the take-up of these approaches must be able to draw on a
verified base of relevant technical and economic information. The project will collect, and disseminate
to member countries, verified technical and economic information in a common framework for use in
building projects and policy initiatives. This would allow the development of an agreed methodology to
assess the costs and benefits of alternative building designs in common framework. Each member
country would then commit to supporting the construction of buildings or larger developments (e.g.
precincts, suburbs, towns etc) that exemplify the clean development and climate objectives of the
partnership. Consideration could be given to ways to recognize, through a system of awards for
example, significant efforts toward the project goal in member countries.
Signature of Project Overseer: Michael Green
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:




                                                                                                         64
Goals and Objectives
Objective
Promote the construction of and identify existing high-performance buildings and
developments for which information will be kept and maintained on the Partnership web
portal. Create proven building designs for mass production and deployment, using existing
technologies with proven energy reduction. Investigate building design options and issues
for construction in disaster prone areas.

Goals and Outcomes
   • To increase the number of high performance buildings to 25% of all large buildings
       being constructed.

   •    The incorporation of advanced building methods and energy-efficient appliances into
        mass production housing projects is achieved.

   •    Agreement reached on sharing of information and technologies to assist all member
        countries to achieve the clean development and climate objectives of the Partnership.

   •    Development of common methodologies to assess, both economically and against
        Partnership clean development and climate objectives, the performance of alternative
        building designs.

   •    Identify promising areas of building innovation that could cost-effectively deliver
        against the clean development and climate objectives of the Partnership.

   •    Improved approaches to building in disaster-prone areas.

Performance Indicators
    • Reduction in energy consumption and associated CO2 emissions (e.g., per square
       meter) due to the incorporation of improved building practices, building materials,
       equipment and ongoing management.

    •   Establishment of a database of verified technical and economic information about
        high performance buildings and developments that is valued in Partner countries.

    •   Agreement on a common evaluation methodology.

    •   Improved disaster resistance in buildings—e.g., lower mortality and property losses.

    •   Agreement on to ways to recognize, through a system of awards for example,
        significant efforts toward the project goal in member countries.

Partner countries facilitate the collection and dissemination of a verified base of relevant
technical and economic information. The accelerated take-up of identified technologies and
practices will provide opportunities for energy savings with exemplar projects providing
opportunities to cost and monitor real life application in each Partner. Adoption of
technologies and techniques in mass-production developments can reduce ongoing energy
costs and improve general living conditions by making affordable, efficient housing more
widely available. The development of common methodologies, possibly involving notional



                                                                                              65
carbon prices, to facilitate the building industry assess the long term cost and benefit risks of
alternative building technologies.

Background
A number of building and larger developments (e.g., precincts, suburbs, towns etc) have
occurred recently where improvements in building techniques have meant that some
buildings achieve significantly reduced energy consumption or other clean development and
climate objectives. In a number of cases these techniques can be incorporated at no
additional cost. The sharing of information and the commitment of Partner countries to the
introduction of these measures will significantly reduce energy consumption and the
associated emissions.

As buildings and built environments have typical lifetimes of 50 years or more, investors will
also benefit from agreed methodologies to assess the long term risks associated with various
design options both economically and against Partnership objectives. Such methodologies
could include how sensitive particular design alternatives are to future movements in prices
(e.g., for energy, carbon emissions, water and waste, or for new technologies as they become
produced in volume).

Methodology
After agreement is reached with participating Partner countries on providing information, an
agreed format and matrix would be developed to try to match existing available data. Partner
countries would nominate agencies that would provide data and details of high-performance
buildings and developments as well as data on general consumption in an agreed format.
This could include, but not be limited to, energy, water, waste, occupancy, operation, design,
management or technologies. This will allow comparisons to be made both within Partner
countries and across Partner countries. Details of high-performance buildings and advanced
production and management practices will be collected and collated. The database of
information will be accessible to members through the Partnership web portal. A common
framework to integrate and assess alternative building designs in terms of their economic and
clean development and climate outcomes will be agreed. Forums and conferences could be
held to discuss and expand on the collected information culminating in Partners agreeing to
take part in exemplar projects and continue to share information and developed technologies.




                                                                                               66
Sub-Project                            Major Tasks / Deliverables
Information Sharing:                       •    Partners agree to make available relevant information and data on high
Share and Disseminate Data and                  performance buildings.
Information on High Performance            •    Partners identify refinements or extensions to their current information
Buildings & Developments                        and data that enhance their value to the project. These may include, but
                                                are not limited to, providing real-time data (e.g. on energy
                                                consumption), web cam or interactive features.
                                           •    Agreement reached on protocols for sharing information including IP.
                                           •    Common methodology to assess alternative building designs in terms of
                                                their economic and clean development and climate outcomes would be
                                                agreed.
                                           •    Partners provide and share access to existing data and information on
                                                high performance buildings.
                                           •    A database of high performance buildings including measures
                                                incorporated and outcomes achieved created. Options for dissemination
                                                considered including web access and web cast.
                                           •    The verified information is made available to all participating Partner
                                                countries and forms the basis of future forums and seminars.
                                           Consideration given to developing Partner countries gaining access to new
                                           technologies to be incorporated into major urban expansion programs.
Improve Take-Up of Existing                •    Survey technologies available and identify organizations and support
Cost-Effective Technologies:                    programs. This could include assessment of how different potential
Create Proven Building Designs for              prices (e.g., for carbon emissions) might influence technology choices.
Mass Production and Deployment             •    Design options and technologies considered against the needs of
Using Existing Technologies                     particular Partner countries.
                                           •    Partner countries use available information to create and promote
                                                designs suitable for their particular requirements.
Low Net Energy Precincts:                  •    Identify current developments and technologies in each Partner.
Support the Integration of Efficient       •    Collect data on developments in policy covering larger abatement
Buildings and Infrastructure into               projects.
Larger Abatement Projects (e.g.,           •    Identification of relevant information on activities such as “embedded
"Zero Net Energy" Precincts)                    generation” and “zero net energy.”
                                           •    Agreement on sharing of information and agreement to work together to
                                                research options identified.
                                           •    Conferences to discuss and workshop options with exemplar projects
                                                identified and supported.
New Technologies for                       •    Identify and collate current research and outcomes.
Sustainable Buildings:                     •    Identify relevant information and organizations. This could include, but
Investigate New and Emerging                    not be limited to: glazing and window treatments, embedded generation,
Designs and Technologies for                    lighting, roofing, low-energy HVAC, DC lighting and appliances,
Energy Efficient Buildings and                  computer interfaces, training and organizational innovation.
Other Sustainability Objectives.           •    Agree to share information and research options identified.
                                           •    Workshop findings and identify demonstration options such as exemplar
                                                and demonstration projects.
Disaster-Resistant Designs and             •    Identify current developments and technologies in each Partner.
Technologies:                              •    Collect data on developments in regulations covering construction in
Investigate and Develop Designs                 disaster prone areas.
and Technologies that Can be               •    Identification of relevant information with agreement reached to share
Applied to Buildings in Areas                   information and technologies.
Subject to Natural Disasters Such          •    Agreement on sharing of information and agreement to work together to
as Hurricanes, Tsunamis,                        research options identified.
Earthquakes, etc.                          •    Conferences to discuss and workshop options with exemplar projects
                                                identified and supported.
Exemplar Projects:                         •    Member countries agree to support the building of exemplar projects to
Construction of exemplar and                    highlight cost effective measures that improve the performance of the
demonstration projects                          building.
                                           •    Exposure of the project at selected international conferences and other
                                                relevant forums.
                                           •    Member countries continue to share information and promote high
                                                performance buildings.
Recognition Framework:                     •    Agreement on the recognition framework, including categories to be
Recognition of Significant                      recognized.
Achievements                               •    Agreement on assessment process and form of recognition.
                                           •    Commitment of resources from Partner countries to support the
                                                recognition framework and assessment process.



                                                                                                                      67
                                 •   Initial award process.
                                 •   Ongoing implementation.



Milestones
There is a presumption that the three sub-projects would be developed in conjunction with
each other and that certain stages such as membership nominations would be conducted
concurrently.

High-Performance Buildings
June 2006          Draft work plan forwarded to participating Partner representatives.

August 2006          Nominations for project team membership and supporting / verification
                     organization for each supporting Partner received

October 2006         Agreement reached on data to be supplied by each Partner and the
                     template to be used. Commencement of process to develop common
                     methodologies.

December 2006        Examples of high-performance buildings with associated data provided
                     by each Partner.

March 2007           Data posted to the Partnership website and able to be accessed by all
                     Partners.

August 2007          Review of high-performance buildings and data including forums and
                     conferences to examine particular buildings and the associated high
                     performance measures.

December 2008        Forum to further examine the nominated high-performance buildings.
                     Agreed assessment methodology.

December 2008        Policy adopted for high performance buildings and agreement reached
                     on sharing of information.

December 2010        Each Partner to support the building of an exemplar project to both test
                     and promote high-performance buildings.

Proven Building Designs for Mass Production
July 2006           Nominations received and agreement reached on membership of sub
                    project.

September 2006       Agreement reached on information to be shared and template for
                     sharing information.

March 2007           Information provided and posted to the Partnership website for
                     consideration by member countries.

October 2007         Conference / Seminar to discuss technologies and building processes
                     available.



                                                                                             68
December 2007         Agreement reached on protocols for sharing information and
                      technologies. Agreement on developing pilot projects and green
                      precincts using available technologies.

Design of Buildings in Disaster Prone Areas
July 2006             Nominations received and agreement reached on membership of sub-
                      project.

September 2006        Agreement reached on information to be shared and template for
                      sharing information.

March 2007            Information provided and posted to the Partnership website for
                      consideration by Partner countries.

October 2007          Conference/seminar to discuss technologies and building processes
                      available.

December 2007         Agreement reached on protocols for sharing information and
                      technologies. Agreement on developing pilot projects and green
                      precincts using available technologies.



Dissemination of Project Results
Data and information would be accessible on the Partnership website; forums and
conferences would be held to discuss issues and gain agreement on future protocols.
Ongoing collection of data and arranging conferences to continue upskilling of Partner
building industry stakeholders.

Assessment of Project
Energy savings and associated greenhouse gas reduction can be measured using a variety of
methods including Kw per sq m or CO2 per sq m. As an example, energy efficiency
measures may reduce the sq m energy consumption and the associated CO2 emissions may be
further reduced where energy is produced by the building, e.g. solar or thermal.

Participation and Management
Management
Australia is the partner in developing the project proposal, with Michael Green of the
Australian Department of Industry, Tourism and Resources the primary contact for
developing the project proposal. Project leadership and management during project
implementation remains to be agreed by the Buildings and Appliances Task Force.

Participation
All Partner countries will be asked to provide input to the project and will also be asked to
nominate the agency that manages building energy efficiency and sustainability issues to act
as a principal point of contact for verification and nomination.

Estimated Budget and Funding Sources
(To be determined.)


                                                                                            69
        Sub-Project/Task            Total Estimated Project    2007      2008      2009      2010
                                           Funding            Funding   Funding   Funding   Funding

1.Information sharing               US$600K

2. Improved take-up of existing     US$400K
cost-effective technologies

3. Low Net Energy Precincts         US$400K

4. New Technologies for             US$500K
Sustainable Buildings

5. Disaster Resistant Designs and   US$200K
Technologies

6. Exemplar Projects                US$500K

7. Recognition Framework            US$750K

         Project TOTAL              US$3 350K




                                                                                                 70
BATF PR-082006—Financing and Contracting
BATF PR-082006-Sub1—Utility Regulation and Incentives

Project number: APP BATF PR-082006-sub1                Date: 31 August 2006
Title of project: Utility Regulation and Incentives
Leading member & co-leading member: United States and Australia
Participants: India, Japan (others to be determined)
Project Overseer:
Paul Schwengels, Manager, Technology Cooperation, International Capacity Building Branch, USEPA
Postal address (leading member):
International Capacity Building Branch
Climate Change Division (6205J)
                                                       Phone: +1 202 343 9310Fax: +1 202 343 2342
Office of Air and Radiation, USEPA
                                                       Email: schwengels.paul@epa.gov
Ariel Rios Building, Mail Code: 6207J
1200 Pennsylvania Ave NW
Washington, DC 20460 USA
Financial           Total cost of proposal:
information         To be determined
Type of project:
  demonstration/pilot national policy, law, regulation appliance testing/labeling
  seminar/symposium training & technical assistance public/consumer information
 database/website survey, analysis, research others (Please specify)
Project start date: 1 Nov 2006                         Project end date:
Project summary: The project will:
(1) identify and share successful models of innovative approaches for overcoming barriers to utility
financing and implementation of energy efficiency programs;
(2) work to understand each country’s utility and regulatory systems to determine applicability of
different innovative approaches; and
(3) enable Partners to voluntarily identify and jointly implement activities to demonstrate or expand
selected approaches to removing barriers to effective utility financing of energy efficiency programs.
Signature of Project Overseer: Paul Schwengels
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:



Objectives
    •   Document successful approaches, in Partner countries and elsewhere, for enhancing
        the incentives of utilities to invest in effective end-use energy efficiency programs.




                                                                                                    71
   •   Demonstrate the benefits of enhanced utility incentives for energy efficiency in
       selected Partner countries.

   •   Increase the understanding of utility regulatory and other incentives, and level of
       implementation within the Partnership region.

This project supports the wider objectives of the Buildings and Appliances Task Force by:

   •   Ensuring that utility companies shift a greater fraction of their considerable financial
       and technical resources to financing and implementation of energy efficiency in
       buildings.

   •   Expand the role of utilities as a delivery mechanism for energy-efficient appliances,
       equipment and services to residential and commercial customers.

Background
Experience in several Partner countries, and in a number of individual states within the
United States, has demonstrated that electric and gas utilities have enormous opportunities to
finance and deliver end-use energy technology and services to their customers—covering the
vast majority of residential and commercial buildings in many countries. This experience has
also shown that there are significant barriers to aggressive action by utilities in this area.
Until utilities have financial incentives or regulatory imperatives to pursue improvements in
energy efficiency (that lead to reduced sales while retaining commerciality) the adoption of
efficiency measures will be severely inhibited.

Potential Benefits of Utility Programs: In many countries, electric and natural gas utilities
have been effective as direct providers of energy efficiency financing and technical advice to
their customers. Some utilities assist large customers with major retrofits to their facilities,
through utility energy service contracts. Many utilities also sponsor rebates and other
programs to assist all types of customers with smaller energy efficiency purchases and
improvements in their homes and businesses. Some of these utility programs specifically
target reductions in peak electricity demand.

The advantages of utility-sponsored demand side management programs (DSM) are:

   •   Utilities can reduce energy consumption at a cost that is lower than the cost of
       creating new supply.

   •   Utilities have regular, direct contact with energy consumers and can offer technical
       services and financing through monthly bills or other low cost loan mechanisms.

   •   Utility regulation has been used as a means of raising funds, through surcharges or
       benefits charges, which can be dedicated to energy efficiency investments and
       managed by governments, third parties, or by the utilities themselves.

   •   Utility-financed DSM can foster the development of financially sound energy
       management service providers.

   •   Utility funds can be broadly applied and directed at whichever sector can most
       efficiently translate the dollars into energy savings (e.g., funds can be provided to
       consumers through rebates; funds can be given directly to manufacturers to buy down


                                                                                               72
       the cost of more expensive efficient products; funds can be provided to retailers and
       then passed on to the consumer).

The successful programs have been achieved as a result of government interventions that
provide clear incentives or mandates targeted to overcome inherent barriers that have
previously hindered such programs.

Regulatory and Financial Barriers: One challenge in implementing DSM programs has been
traditional utility regulatory and rate-setting processes that may not allow utilities to recover
the revenue lost from reduced energy sales, or provide incentives to the utility’s shareholders
for energy savings achieved. Privately owned utilities historically have been in the business
of selling energy. Their profitability was dependent on the number of units of electricity or
gas they could sell. Rates have been established by a regulatory body primarily on the basis
of ensuring adequate return on utility investment in generating capacity and operation.

More recently, many governments have been moving toward deregulated energy markets
encouraging competition among suppliers/generators and allowing the market to set prices.
In either case, the prices are set outside of the utility’s control and the revenues of the
company are dependent on the volume of sales. Unless there is some intervention by
government regulators, this provides a substantial disincentive to investments in energy
efficiency.

In addition to the financial incentives, traditional utilities may have institutional inertia that
makes implementation of effective demand side measures difficult. It may take some time
before an organization oriented to marketing and selling energy can shift its perspective to
providing energy services through both supply of energy and reduction of demand in a cost-
effective mix. Although utilities generally have many highly trained technical experts on
their staffs, they may not have specific expertise in design, marketing, implementation and
monitoring of demand side programs.

Regulation and Incentives to Encourage Energy Efficiency: To overcome these barriers, some
governments and regulatory bodies have developed a number of regulatory and incentive
approaches including:

   •   Revenue adjustments: These accounting procedures are designed to mitigate the
       dependent relationship between electric distribution energy sales and profits,
       sometimes known as the “throughput incentive.” The adjustments shield the utility
       from the adverse impacts of reduced consumption by consumers as a result of the
       deployment of demand-side resources such as distributed generation, load
       management and energy efficiency. These adjustments allow for recovery of costs for
       demand side programs, plus profits equivalent to those that would have been received
       for equivalent energy sales.

   •   Integrated resource planning: Some regulators require that utilities engage in
       integrated resource planning to evaluate and select demand and supply investments on
       an equal basis.

   •   Mandated efficiency programs: Regulators in seven US states have adopted
       quantitative requirements (“Energy Efficiency Resource Standards” or EERS) as a
       component of utility or statewide energy resource plans. These standards require that
       utilities include in their resource plans a specified share of renewable or “demand-


                                                                                                 73
       side” resources (i.e., energy-efficiency, peak demand management, or demand-
       response).

   •   Demand side bidding: In some cases, utilities have been required or encouraged to
       carry out competitive solicitations for demand side programs similar to the
       competitive bidding for energy supply. The utilities select demand side resources if
       they are offered at lower cost than available supply.

   •   Public benefit funds: Some regulators require utilities to collect a surcharge on
       electricity or natural gas bills to finance ‘public benefits’ programs, primarily for end-
       use energy efficiency. These funds may be held by the utility and directed to demand
       side programs, or they may be managed by the government or a third party
       organization to support efficiency programs.

In the United States alone, regulators in more than half the states have directed utilities to
implement energy efficiency programs serving their customers, and/or have imposed public
benefits surcharges. A number of utility programs and policies are being explored as part of
the International Energy Agency (IEA) Program on Demand-Side Management, in which
four Partner countries currently participate (Australia, Japan, Korea, the United States).

This experience provides a basis for sharing of lessons learned and wider deployment of
effective regulation and incentives. This in turn will lead to rapid implementation of utility
financed energy efficiency programs that can significantly accelerate the penetration of
energy-efficient appliances, technology and services that reduce energy consumption in the
buildings sector.

Methodology
This project will compile experiences from Partner countries and identify innovative
practices in utility regulation or incentives, DSM programs, and third-party energy efficiency
programs relevant to utilities. It will not include broader issues of utility restructuring,
competition, etc., except as those relate specifically to the question of utility incentives for
investing in customer energy efficiency. The sub-project team will also identify needs for
technical information and assistance in participating Partner countries where regulation of
privately owned utilities is evolving.

The report will provide a basis for discussions among the Partner countries on ways to
cooperate in implementing regulatory or other strategies to improve utility incentives for
energy efficiency investments. A focal point for this discussion will be a proposed workshop
in mid-2007 or earlier, preferably tied to a utility conference in the Partnership region, but it
can begin very soon and also continue via e-mail and a shared website. Where existing
cooperative activities among Partners are identified, these can be incorporated into the
ongoing work of the project and enhanced by participation of additional Partners where
possible. These cooperative activities will be designed to encourage involvement by a range
of stakeholders, including state regulatory bodies such as the Maharashtra Electricity
Regulatory Commission (MERC) in India, and at the national level, for example, entities
such as the State Electricity Regulatory Commission (SERC) of China.

The team will propose new joint implementation activities based on utility circumstances in
each participating Partner, and on priorities identified by the preliminary team report and
subsequent discussion with technical experts.



                                                                                                 74
Milestones
2007            Report compiling experiences and successful practices from Partner countries
                and other sources.

                Workshop to discuss and refine draft report, identify needs and design
                cooperative projects

                Year one report to include: options for improving utility incentives,
                consensus (where appropriate) on good practices, experience with joint
                activities, and recommended future work.

2008            Implement cooperative projects and document results—pilot development of
                locally adapted approaches in selected Partner countries.

                Draft handbook for design and implementation of effective utility regulation
                and incentives

2009            Complete handbook

                Carry out assessment of needs and potentials of selected Partner countries.

                Support widespread adoption of successfully demonstrated regulation and
                incentives in Partner countries.



Dissemination of Results
Dissemination of project results will be achieved through:

   •   Cooperation with ongoing efforts such as the APEC Energy Efficiency Experts Group,
       the IEA Program on Demand Side Management, etc.

   •   Workshops at least annually, where possible on the margins of utility related
       conferences in the region.

   •   Provision of case studies and handbook through websites and industry groups.

   •   Briefings on project results for senior officials in regulatory bodies and utility
       companies within the region.

Assessment of the Project
The project team will carry out assessment, with consultation of the IEA DSM Program and
other experts in the region. Performance indicators are:

   •   Agreement on good practices for regulation and incentive programs.

   •   Successful completion and documentation of pilot programs in selected Partner
       countries.

   •   Development of case studies, handbooks and other tools to support wider application
       of successful approaches.


                                                                                              75
       •   Adoption of policy approaches on a widespread basis in Partner countries.

Participation and Management
The United States will lead this project with support from Australia and in consultation with
all other Partner countries. Other interested Partners are encouraged to participate actively.

Estimated Budget and Funding Sources
Estimated budget and funding to be determined based on discussion among BATF members.

Sub-               2006 Funding                   2007 Funding   2008 Funding   2009 Funding   2010 Funding
Project/Task
1. [Sub-project]   Country 1: US$__K (cash, in-
                   kind)
                   Country 2: US$__K (cash, in-
                   kind)
                   etc.
2. [Sub-project]   etc.
3. [Sub-project]
4. [Sub-project]
5. [Sub-project]
etc.
Project total      Country 1: US$__K (cash, in-
                   kind)
                   Country 2: US$__K (cash, in-
                   kind)
                   etc.




                                                                                                        76
BATF PR-082006—Financing and Contracting for Energy Efficiency
BATF PR-082006-Sub2—Enabling Mechanisms

Project number: APP BATF PR-082006-sub2            Date: 31 August 2006
Title of project: Enabling Mechanisms
Leading member & co-leading member: Australia and the United States
Participants: to be determined
Project Overseer:
Gene McGlynn, Assistant Secretary, Department of Environment and Heritage, Australia
Postal address (leading member):
                                                   Phone: +61 2 6274 1773
GPO Box 787
                                                   Fax:
Canberra ACT 2601
                                                   Email: Gene.mcglynn@deh.gov.au
Australia
Financial          Total cost of proposal
Information        To be determined
Type of project:
 demonstration/pilot national policy, law, regulation appliance testing/labeling
 seminar/symposium training & technical assistance public/consumer information
 database/website survey, analysis, research others
Project start date: 1 Nov 2006                     Project end date: [to be determined]
Project summary:
Overcoming barriers that inhibit the wider uptake of otherwise commercial energy efficiency actions
can be significantly achieved through promoting key underlying “smart” technologies and working to
more effectively allocate incentives and responsibilities for improved energy management. Such
enabling mechanisms increase demand for energy-efficient buildings and appliances as well as
providing innovative market approaches to achieving energy efficiency, greenhouse gas reductions
and broader sustainability.
This project focuses on two key enabling mechanisms:
    • Residential “smart systems” for improved information and load control (sub-project A);
   •   Commercial building “green leases” to help overcome the tenant-landlord split incentive
       barrier to improved energy management (sub-project B)
Signature of Project Overseer: Gene McGlynn
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:



Sub-Project A—Smart Systems
“Smart systems” are a key enabling technology that increases the knowledge, control and
innovative energy efficiency options available to end users and utility system operators. This
sub-project will focus on increasing the market take-up of residential smart systems by



                                                                                                 77
working with utilities and industry experts to develop business case rationales and supporting
tools to encourage their wider implementation.

Objectives
The objectives of the smart systems sub-project are to:

   •   Demonstrate the benefits of residential response infrastructure options to enhancing
       the economic efficiency of utility investments in energy services.

   •   Increase the market take-up of residential smart systems.

The smart metering project supports the wider objectives of the Buildings and Appliances
Task Force through:

        •    Creating an enabling environment for the development, diffusion, deployment
             and transfer of innovative energy efficiency approaches to utility supply of
             electricity and other energy sources.

        •    Supporting the integration of appropriate mechanisms to increase the uptake of
             energy-efficient buildings and appliances into broader national efforts that
             support sustainable development, increase energy security and reduce
             environmental impacts.

        •    Systematically identifying and responding to the range of barriers that limit the
             implementation of end-use energy efficiency practices and technologies.

Background
A key enabling technology for overcoming institutional and information barriers to reducing
energy use are “smart systems” and “smart metering.” These technologies allow for more
sophisticated exchanges of information between suppliers and end users of electricity (or
other resources such as natural gas) as well as improved electricity system operation and
reduction of costs. Smart systems are proven technologies that allow innovative offerings
within the energy market (such as utility demand side management techniques of time
reflective pricing or central load control and in home information displays). Smart systems
also support market stakeholders in addressing the increasing demands on reliability;
efficiency; environmental responsibility; value for money and customer service. In particular,
in areas where electricity use is growing or in areas with high levels of new electrification,
smart systems can assist in energy management options being identified and implemented
more quickly and effectively, thereby “future proofing” these customers interests.

Applications of smart systems technology to date have shown benefits or potential benefits
for:

   •   Increased network and supply security.

   •   Facilitating deferral of infrastructure investment, largely through load shifting.

   •   Avoiding outages during peak demand periods.




                                                                                                 78
   •   Use and support of “smart” appliances through central load control and
       preprogramming, assisting to deliver reliable electricity supply and efficient network
       operation.

   •   Reduction of “non-technical losses” that may be associated with tampering or theft.

   •   Reduced utility operating costs and increased utility profits (for example through
       remote meter reading and quicker fault detection).

   •   More accurate reflection of the value of distributed generation.

   •   Reduction of barriers to more cost and time reflective retail prices and network tariffs.

   •   Possible end-user financial savings through effective responses to time of use pricing.

   •   Energy use reductions, with possible associated greenhouse gas emission reductions.

   •   High levels of consumer acceptance and consumers becoming better informed on how
       to use their existing appliances efficiently.

Implementation of smart systems has been completed or is under way in Italy, Sweden,
Canada, and the United States. Other jurisdictions, including Australia and the European
Union, are considering rollouts over the next several years. To maximize the potential
benefits smart systems offer, electricity utilities need to be convinced of the business case for
investment that is relevant to their operating environment.

Methodology
This sub-project will focus on facilitating the understanding of the benefits of smart systems
within the residential sector by working with key industry partners to develop business case
rationales for use by the utilities sector.

Nationally tailored supporting tools will be developed, such as a standardized assessment
framework, allowing utilities to more efficiently assess the various options available and the
costs and benefits of adopting smart systems in certain market situations or as common
business practice. The supporting tools will be widely distributed to encourage further take-
up of smart systems within participating Partner countries.

Key elements include:

   •   Collaborating with government agencies and utilities to review international and
       participating country specific experience; secure a set of interested parties and
       contract relevant industry expertise as appropriate.

   •   Identifying a common set of drivers for installing, maintaining and operating smart
       systems and associated policies by utilities.

   •   Agreeing a delivery mechanism to communicate sub-project progress and success,
       including informing possible future government policy discussions.

   •   Agreeing a monitoring, reporting and evaluation strategy for the sub-project.



                                                                                               79
   •   Working with industry partners to develop a standardized assessment framework and
       supporting tools for evaluating the costs and benefits of smart meters to utilities
       (including guidelines, methodologies, templates and calculation tools where
       appropriate) that covers industry:

   –   A range of common situations where smart systems may be considered (e.g.
       established houses or new developments, including urban infill).

   –   Available technical options.

   –   Marketing and competitive advantage opportunities.

   –   Links to responsive pricing and intelligent load control.

   –   Administrative support arrangements.

   •   Working with industry partners to test and refine the assessment framework.

   •   Dissemination of the assessment framework more broadly to increase awareness of
       the opportunities for smart systems and encourage their widespread use and take-up
       by market stakeholders.

Milestones
2007           Smart Systems Working Group formed and industry partnerships established.

               Completed strategy for sub-project delivery, monitoring and evaluation.

               Completed international review and common business drivers developed.

2008           Commence development with industry of standardized assessment framework
               and supporting tools.

2009           Completed draft standardized assessment framework and supporting tools.

               Completed testing and refining of standardized assessment framework and
               supporting tools.

               Dissemination and communication of s assessment framework and supporting
               tools.



Dissemination of Project Results
Dissemination of project results will be undertaken through:

   •   Promotional mail outs to utilities highlighting the sub-project and tools availability.

   •   National launches involving all relevant stakeholders—utilities, smart system
       providers, government officials and other relevant industry groups.

   •   Provision of all tools developed in relevant government and industry websites.


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   •   Promotion at relevant national and regional industry conferences—including where
       possible linking with other BAFT events.

Assessment of Project
The assessment of the sub-project will be led by the Smart Systems Working Group
secretariat with the assistance of participating Partner countries.

Performance Indicators:
   • Agreement of detailed sub-project implementation plan by the Smart Meter Working
       Group.

   •   Agreement of a set of common drivers for promoting smart meters to utilities.

   •   Development of a conceptual cost/benefit framework for use by electricity utilities
       that is adaptable to national circumstances.

   •   Development of supporting tools to assist business case consideration of smart
       meters—including guidelines, methodology, templates and calculation tools where
       appropriate.

   •   Promotion of the sub-projects framework and tools—including the number of events
       and attendance at events.

   •   Ongoing monitoring and evaluation of industry take-up and satisfaction with tools
       developed with findings made available to participating countries (this will include
       quantification of number of tools used by the private sector over time and stakeholder
       surveys where appropriate).

Participation and Management
The management of this sub-project will be coordinated through development of a “Smart
Systems Working Group” to be chaired and supported by the Australian Government. This
Group will aim to involve key government officials and industry representatives from
participating Partner countries.

Estimated Budget and Funding Sources
The Secretariat for the Smart Systems Working Group will be funded by the Australian
Government. This secretariat will coordinate jointly funded activities with support from
participating Partner countries.

The Australian Government will fund the initial review of international experience.
Participating Partner countries will contribute specific national experience through
coordination of information or funding national studies to support the wider international
review.

The development of standardized assessment frameworks and supporting tools will be jointly
funded equally by all participating Partner countries.

National promotion activities, such as launch events, and any individual tailoring to specific
national circumstances will be funded by the Partner concerned.



                                                                                             81
Sub-Project/Task       2006 Funding               2007      2008         2009         2010
                                                  Funding   Funding      Funding      Funding
Residential Smart      Australia: US$1 million    $200k     $300k        $400k        $100k
Systems                (proposed funds only)
Project TOTAL          Country 2: US$__K (cash,
                       in-kind)
                       etc.                       etc.



Sub-Project B—Green Leases
This sub-project will help to overcome the tenant–landlord split incentive barrier to energy
efficiency in commercial building operations through increasing the use of green lease
schedules in participating Partner countries. Nationally tailored green lease schedules and
supporting tools will be developed and promoted through government demonstration,
industry champions and investment sector involvement.

Objectives
This sub-project assists to fulfill the objectives of the BAFT through providing an enabling
mechanism to overcome market barriers, which will ultimately increase the uptake and
effective management of energy-efficient buildings and appliances to assist with broader
national efforts towards sustainable development.

The objectives of the green leases sub-project are to:

    •    Increase the efficient energy management of commercial building operations through
         providing transparent legal options to overcome the market failure of the tenant–
         landlord split incentive problem.

    •    Increase the uptake of energy-efficient building designs and appliances in
         participating countries through stimulating additional market demand.

Background
Buildings designed to achieve high levels of efficiency often operate at far below their
potential without effective management of performance, sometimes doubling the energy
consumption and operating costs for the building. Under typical commercial building lease
arrangements the tenant pays the building energy costs yet does not have control over
equipment operation and cannot guarantee, or in some cases even measure, whether they are
achieving the energy efficiency outcomes they desire or have contracted for. In contrast the
owner has little incentive to properly maintain or upgrade plant and equipment or to strive to
achieve high levels of building energy management performance.

Typical green leases consist of an additional set of standard clauses to a “normal” building
lease contract. Green lease schedules provide for mutual contractual lease obligations for
tenants and owners to achieve energy efficiency targets (or potentially other environmental
obligations, such as water efficiency). This ensures that buildings operate at agreed levels
through regular monitoring and the ability to address issues as they arise. Green lease
schedules promote uniformity, consistency and market acceptance while minimizing the need
for legal advice on individual lease agreements relating to energy efficiency. Standard
clauses often deal with: specifying the agreed performance of the building (for example
through use of a national rating tool performance or standard metrics); agreed energy


                                                                                                82
management plans; metering and data elements; management committees; and dispute
resolution clauses).

In addition to standard legal clauses, national policies to implement green leases often also
include facilitation tools, such as explanatory guidance notes, example energy management
plans and specific fact sheets to facilitate market understanding.

The increased use of green lease schedules provides a positive feedback loop for other
infrastructure that supports energy efficiency, such as smart meters, energy service
companies, energy-efficient appliances and energy-efficient building design. For example,
green leases encourage the effective use of new advances in digital metering technology that
pinpoint energy consumption and provide more useful energy management information.
Green leases also encourage market demand for the use of energy service companies and
energy performance contracting in providing support services for landlords and tenants.

An essential element in the effectiveness of the green lease in the market place is to work
with the finance and investment sectors to ensure stakeholders are well informed of the
possible market transformation effects of the green lease and that they invest wisely for the
future. This is especially relevant to long-term or “institutional” investors that often hold
high levels of property or property trust investments, such as many superannuating funds.

Methodology
The sub-project will increase the uptake of commercial building green lease schedules and
supporting tools in participating Partner countries through:

   •   Developing nationally tailored green lease schedules and support tools for use in the
       public and private sectors.

   •   Using key players to demonstrate to the market the practical benefits of green lease
       schedules through implementation in key government buildings, industry “champion”
       portfolios and completing investment sector impact analyses.

   •   Encouraging the wider market adoption of green leases through active promotion and
       provision of green lease templates and key supporting tools.

Critical elements of this project include:

   •   Establishing a Green Lease Working Group, including key private sector stakeholders,
       to oversee sub-project activities and focus ongoing dialogue.

   •   Reviewing international approaches to green lease schedules, including their common
       key elements, successful application examples and market operating contexts (e.g.
       relevant legal approaches).

   •   Targeted consultation with key private sector stakeholders within participating Partner
       countries to determine the commercial building sector operating environment
       including identifying key factors to consider in development and promotion of green
       leases.

   •   Drafting a “model” green lease schedule template to form the basis for later tailoring
       to Partner countries’ national circumstances.


                                                                                                83
   •   Collaborating between participating Partner countries to draft tailored green lease
       schedules and supporting tools to national circumstances for use in both the public
       and private sectors (including translation to relevant languages and incorporation of
       specific legal advice).

   •   Governments leading by example through demonstrating the use of green leases in
       key government buildings and promoting wider government adoption (driven by
       government property portfolio managers from participating Partner countries).

   •   Private sector “champions” within the commercial buildings industry implementing
       and promoting green lease arrangements within their portfolios.

   •   Working with the investment and finance sectors to raise awareness and create
       demand for green leases through performing and disseminating national level impact
       studies, highlighting the “future proofing” benefits of investing in property trusts
       which use green leases.

Milestones
2007            Green Lease Working Group established, including key industry partners
                identified.

                International experience summarized.

                Consultation completed of participating Partner national circumstances and
                report circulated.

2008            International “model” green lease schedule template developed.

                Nationally tailored green lease schedules and supporting tools developed.

2009-2010       Demonstration within key government buildings.

                Demonstration within private sector champions portfolios.

                National level investment/finance sector impact studies completed and
                disseminated.



Dissemination of project results
A range of dissemination methods will be used for this sub-project, including:

   •   International and Partner specific review reports widely disseminated through relevant
       government and industry partner websites.

   •   Workshops/conferences to discuss and promote nationally tailored green leases and
       supporting tools. Where possible these workshops will coincide with other related
       workshops under the BAFT program, such as that proposed within the Existing
       Buildings project’s workshops throughout India and China.




                                                                                               84
   •   Investment sector impact studies to be disseminated by private sector partners (e.g.
       through company websites and promotional speeches) and on relevant government
       websites.

   •   Industry champions to promote wider private sector take-up through marketing and
       promotional speeches.

Assessment of project
Initial pre-project statistics will be collected as part of the international review exercise and
report. The participating Partner countries will collect further individual national statistics
annually, with central compilation, review and dissemination by the Green Lease Working
Group secretariat, for the duration of the project. Thereafter statistical collection will be the
responsibility of each individual Partner.

Performance indicators for the sub-project may include:

   •   International review report published.

   •   Number of nationally tailored green lease schedules developed.

   •   Number of government buildings to implement green lease schedules (above baseline
       levels).

   •   Number of industry champions to implement green leases (above baseline levels).

   •   Percentage of industry champion operations where green leases have been
       implemented (above baseline levels).

   •   Lowered energy use in demonstration projects.

   •   Number of promotional events for the green lease schedule and supporting tools.

   •   Investment/finance impact study completed in each participating Partner.

   •   Number of events promoting the investment/finance impact study.

   •   Number of participants at promotional events.

Participation and Management
The management of this sub-project will be coordinated through a “Green Lease Working
Group” to be chaired and supported by the Australian Government. This Group will aim to
involve key government officials and industry representatives from participating Partner
countries. Where possible the costs of sub-project participation will be managed by the
individual Partner countries involved. However, where practical, cost-shared tasks will be
managed by the Australian secretariat for the Working Group. The Secretariat will be funded
by the Australian Government.

Estimated Budget and Funding Sources
Cost elements include:



                                                                                                85
    •    Secretariat costs (including website establishment and maintenance, statistical
         compilation.

    •    International and participating country review costs.

    •    Development of tailored GLS and supporting tools.

    •    Investment sector impact studies per country.

    •    Promotional activities.

    •    Other—to be determined.

Sub-Project/Task             2006 Funding               2007      2008      2009      2010
                                                        Funding   Funding   Funding   Funding
Green Leases Project total   Australia: US $1 million
                             (proposed funds only)
                             Country 2: US$__K (cash,
                             in-kind)




                                                                                                86
BATF PR-082006—Financing and Contracting for Energy Efficiency
BATF PR-082006-Sub3—Commercial Financing

Project number: APP BATF PR-082006-sub3                Date: 31 August 2006
Title of project: Commercial Financing
Leading member & co-leading member: United States and Australia
Participants: India, Japan (others to be determined)
Project Overseer: Name, Title and Organization
Cynthia Wilson, Senior Advisor, Policy and International Affairs, U.S. Department of Energy
Postal address (leading member):
US Department of Energy                                Phone: +1 202 586 6708
Policy and International Affairs, MS-60                Fax: +1 202 586 0013
1000 Independence Ave., SW                             Email: cynthia.wilson@hq.doe.gov
Washington DC 20585 USA
Financial          Total cost of proposal:
information        To be determined
Type of project:
  demonstration/pilot national policy, law, regulation appliance testing/labeling
  seminar/symposium training & technical assistance public/consumer information
 database/website survey, analysis, research others (Please specify)
Project start date: 1 Nov 2006                         Project end date: [to be determined]
Project summary:
The project will:
   • Identify and share successful models of innovative approaches for overcoming barriers to
        private financing of and contracting for energy efficiency programs; and
    •   Enable Partner countries to voluntarily identify and jointly implement tasks to
        demonstrate or expand selected approaches to removing barriers to effective financing
        and contracting.
Signature of Project Overseer: Cynthia Wilson
Date: 25 August 2006
Signature of Task Force Chair: Hakdo Kim
Date: 31 August 2006
Remark:



Goals and objectives
The overall goal is to facilitate increased levels of private investment in building energy
efficiency projects in Partner countries. The project will (1) identify and share successful
model approaches to remove barriers to private financing of and contracting for energy
efficiency investment; and (2) enable member countries to voluntarily identify and implement
joint projects to remove barriers to private energy efficiency investment and demonstrate or
expand selected models.


                                                                                                87
Near-Term Performance Indicators
   • Completion of inventory of successful approaches to remove barriers to private
      energy efficiency financing and contracting, including assessments of effectiveness,
      as described in Section 7.

   •   Individual country selection of models to apply within their economies or to share
       with other Partner countries.

   •   Establishment of evaluation approaches to measure benefits of supported projects.

   •   Initiation of joint projects by September 2007.

Longer-Term Performance Indicators
   • Successful completion/documentation of joint projects.

   •   Incremental change in private companies offering energy efficiency services,
       measured in number of companies and total sales.

   •   Incremental change in private investment in energy efficiency in terms of number of
       investors and volume of equity investment.

   •   Incremental change in number of private financial institutions lending to energy
       efficiency projects and volume of lending.

   •   Reduction in GHG emissions attributed to the incremental change in private financing
       of building energy efficiency projects.

The private financing and contracting project will systematically identify and respond to the
barriers that limit the financing of end-use energy efficiency practices and technologies. It is
designed to use cooperative mechanisms to increase the efficiency of buildings throughout
each Partner. Such an increase will support sustainable development, increase energy
security and reduce environmental impacts by removing financial barriers to cost-effective
investment.

Background
Private financial markets are generally liquid in Partner countries. However, the volume of
private capital made available for energy efficiency investments is far below the level
required to fund all cost-effective projects and projects that have lower total costs than energy
supply alternatives. A wealth of energy efficiency investment projects remain
unimplemented, despite high financial rates of return, and payback periods which are 1–5
years (with many in the 1–2 year range) because of a number of regulatory, institutional and
market barriers. Issues that frequently foreclose financing of building energy efficiency
projects include:

   •   Lack of information on the benefits of energy efficiency investments.

   •   Uncertainty about the future prices of energy, the economy and policy changes.




                                                                                              88
    •   Small, often non replicable, projects, which limit the ability of traditional financing
        institutions to process loans, especially given the complexity of energy efficiency loan
        documentation.

    •   The need to use structured finance (i.e. cash flow based financing), rather than
        traditional asset-based financing, a practice that is not fully developed in many
        financial institutions. One reason for this is that markets for risk or “contingent
        claims” are frequently immature.

    •   Financially limited businesses, either the customer or the energy service provider,
        which do not have sufficient credit histories and/or assets to secure financing.

The recent UNEP-World Bank Three Country Energy Efficiency Study supports the concept
that financing and contracting mechanisms (also termed “project delivery mechanisms”) must
address these barriers and be designed in the context of local institutional structures. To that
end, the proposed projects are intended to help to overcome barriers by working within the
context of local institutions and cannot be fully designed until those institutions are engaged
in the Partnership process.

Sub-Project 1: Tools and Technical Capacity for Performance Contracting
Fundamentally, energy efficiency financing is based on project cash flow, not on the value of
physical property deployed in the project. This is a structured financing approach, where the
“asset” is the positive cash flow resulting from the energy savings. Creating, measuring and
securitizing the energy savings asset is a complex process, requiring (1) an ability to estimate
energy savings, i.e., conduct a valid audit; (2) methods to measure whether energy savings
have been realized, i.e., monitor and verify the savings; and (3) reliable and enforceable
contracts, including performance contracts.

Systematizing Audits, Monitoring and Verification. One of the most challenging aspects of
energy efficiency financing is the need to (1) conduct a reliable audit to estimate the savings
that can be financed and (2) measure and verify the energy savings to assure that the energy
savings asset is indeed created. The audit creates the energy savings asset and accurate
monitoring and verification determines the cash flow available to repay the financier of the
investment. The cash flow is used to secure the loan when the project is funded by outside
sources (e.g. banks, development agencies, etc.) or to gain management support for internally
financed projects.

This challenge is being addressed by the Efficiency Valuation Organization (EVO).6 EVO is
developing an International Energy Efficiency Financing Protocol (IEEFP). APEC is funding
early development of the IEEFP through two APEC countries (Thailand and Mexico), with
plans to expand into other APEC economies. The IEEFP is designed to bridge the
“disconnect” between traditional asset-based lending and the cash flow-based financing
needed for energy efficiency projects. The IEEFP aims for a long-term “grass roots” solution
that would ultimately become a blueprint for educating and training local financing
institutions and their customers around the world on the special requirements and benefits of
financing energy efficiency projects.

6
 EVO is a respected global group of energy efficiency practitioners who have worked together to create the
International Performance Measurement and Verification Protocol (IPMVP), a standardized method for
measuring the performance of energy efficiency projects. EVO is now expanding to address additional aspects
of energy efficiency, including financing and emissions benefits as well as water efficiency.


                                                                                                         89
Expediting Performance Contracts. Performance contracts establish how much energy
savings can be expected from an energy efficiency project and therefore provide an indication
of how much cash will be saved by implementing the project. Performance contracts are a
critical piece of the financing package for externally financed energy efficiency projects.
Specialized energy service companies (ESCOs) or energy management companies (EMCOs)
and owners and managers of buildings use performance contracts to identify energy-savings
measures and technologies, commit to implement the energy-saving program, and assign
risks.

The requirement to include a performance contract along with the audit and monitoring and
verification protocol cause energy efficiency financing contracts tend to be complex relative
to other structured financing contracts. Unfortunately, this complexity is particularly
challenging for many building energy efficiency projects because they tend to be small.
Small projects often cannot bear the costs of complex contract negotiations and savings
verification.

Experience in Partner countries has taught that developing a sound performance contracting
system requires extensive experience and appropriate institutions to manage the risks of these
complex agreements. Pre-accreditation of ESCOs/EMCOs, development of standard contract
documents, guides to contracting procedures, standard protocols for measurement and
verification of savings, etc. help to ensure success. Identifying and promoting successful
models of performance contracting can facilitate greater penetration of this approach in
business and government building. In addition, increased harmonization of procedures,
standards, and contract documents among Partner countries can encourage the growth of a
robust regional market for energy services and performance contracting.

Sub-project 2: Fostering Commercial Businesses to Finance and Deliver Energy Efficiency
Products and Services
Developing the businesses that have sufficient technical expertise and financial capability to
deliver energy efficiency products and services is a challenge. High processing costs, credit
risks (the lack of access to capital for providers or the lack of credit for the borrowers), and
performance risks (uncertainty about the effectiveness of a technology or a contracting
technique) are major barriers to realizing the benefits of energy efficiency.

In addition, before investors and lenders agree to finance a project, they engage in a complex
process to allocate and mitigate risks. Risk management can be cost ineffective and therefore
difficult for building energy efficiency projects because they: (1) tend to be small; (2) often
involve small and new companies with limited credit and performance histories; (3) propose
using new technologies or new applications of technologies that also pose unknown
performance risks; and (4) carry the risk that energy prices will decline, wiping out the
estimated financial savings and the cash flow needed to service the debt and pay a return to
the equity investors.

Numerous techniques have been employed or suggested to over come these barriers,
including:

   •   Government leadership in energy performance contracting to help to create credit
       worthy energy service providers.

   •   Revolving funds to overcome credit issues and reduce development risks.



                                                                                               90
   •   Incremental financing to reduce credit and performance.

   •   Manufacturer and vendor financing to mitigate performance risk.

   •   Insurance and publicly funded risk guarantees to enable lenders and borrowers to
       reduce credit and performance risks.

   •   Special purpose entities to reduce processing costs and increase market reach.

Government Leadership in Energy Performance Contracting. In several Partner countries,
much of the success of the ESCO (energy service company) model is attributable to the role
that central, state, and local governments played in creating an initial market for the industry.
In the early years, banks agreed to finance energy management projects in government
buildings because of the government’s credit quality, not because of the ESCO’s credit
capacity. In fact, newly formed ESCOs often had little or no credit when the programs
began. Over time, as the ESCOs completed increasing numbers of projects, two important
changes strengthened their ability to obtain credit to carry out further projects. First, the
companies gained experience that permitted banks and customers to evaluate their
performance. Second, the ESCOs accumulated capital that enabled them to finance (or at
least participate in the financing of) new energy management projects.

Alternative Business Models. In some situations, the ESCO/EMPC has proven to be a weak
business model, with applicability only in highly repetitive circumstances (e.g., water
pumping or lighting). Partners are encouraged to share alternative models that may provide
greater success in increasing energy efficiency in Partner countries.

Revolving Fund. One of the first risks energy efficiency project developers face is the risk of
expending capital on projects that may never be financed and built. Revolving funds that
underwrite project development costs reduce these risks. They have been successful in
Partners and also in APEC countries like Thailand. The BATF will seek sponsors and
candidate projects for a buildings energy efficiency revolving fund to be demonstrated in one
or more Partner countries.

Incremental Financing. In the initial stages of market development, private investment may
be limited by the perceived risks of performance contracting, including investors’ and
lenders’ concerns about the effectiveness of energy-saving technology, the accuracy of
energy audits and provisions for monitoring and verifying savings. Therefore, the BATF will
test models that rely on incremental financing and incremental increases in the sophistication
of energy audits, monitoring and verification, as illustrated in Figure 1.

Using this model, simple audits and monitoring and verification could be used to establish the
Phase 1 program. Documented savings from the Phase 1 program would be used for equity
in the financing of Phase 2. A similar approach in Phase 2 (audit, program, monitor, and
verify) would create savings that could be used as equity in Phase 3. As projects become
larger and more complex, the technical sophistication and complexity of energy audits and
monitoring and verification methods would increase to reflect the increased uncertainties and
risk, and thus the increased value of more accurate—but more costly—information.




                                                                                               91
                                    Fig. 1. Incremental Financing

    Cost of Energy Efficiency

                                       Reinvest             Phase 3: Longer Payback
                                                              (e.g., HVAC systems,
                                       Savings
          Improvement


                                                               building renovation)



                                                  Phase 2: Mid-term Payback
                                Reinvest            (e.g., lighting retrofits)         More
                                Savings
                                                                                      detailed
                                                                                      audits,
                                                                                       M&V
                                           Phase 1: Low-cost/No-Cost
                                           (e.g. info. campaign, O&M)




                                                    Energy Savings


Manufacturer and Vendor Financing. One of the key strategies of the Partnership process is
to engage private businesses to help expedite the transfer of energy-efficient technology.
Participating manufacturers can increase their sales by helping to mitigate risks and expedite
financing. Manufacturers and vendors can directly offer performance guarantees, warrantees,
and/or financing or help the customer arrange financing with lenders. The BATF will work
with manufacturers and vendors to assess opportunities to offer or arrange such financing. In
addition, BATF participants will engage export credit agencies to expand the capacity to
finance technology transfer.

Insurance and Partial Risk Guarantees Can Provide Targeted Risk Mitigation. Insurance
and partial risk guarantees can play an important role in getting projects financed and
implemented, by helping to manage the sources of technical, market, and financial risk,
answering questions such as:

   •                  Will the technology work as expected, to produce the expected energy savings?

   •                  Will future energy prices, and thus avoided costs, be at or above projected levels?

   •                  And will the customer be able to repay the debt from those cost savings?

Public agencies can share some of the project risk by offering insurance or guarantees to
encourage energy efficiency projects, particularly projects in publicly owned or leased
facilities. Private insurance companies, vendors, or manufacturers can also help solve the
risk dilemma by either offering insurance products or offering warranties or guarantees on
their equipment. BATF efforts can look at where insurance type products are needed, and
how they can be developed and implemented by public or private sector organizations.

Special purpose entities. One of the most successful models of energy efficiency financing is
the creation of special purpose entities (SPEs) to expedite the processing of transactions. An
SPE is a special financial vehicle, with dedicated funds and staff, to process loans. It is often
a local or specialized entity, with the ability to reach out to new energy efficiency customers.



                                                                                                            92
Many Partner countries have applied this model to energy efficiency financing, but more can
be done to extend its reach. Partner countries can share experiences and synthesize new
models to increase penetration of energy efficiency.

Methodology
This project will (1) identify successful commercial models for financing of and contracting
for energy efficiency; and (2) apply these models as appropriate in interested Partner
countries. The project recognizes the importance of implementing practical, on-the-ground
activities to support the mission of the overall Partnership, as well as to take advantage of
opportunities to build on existing and planned activities. All projects must be based on sound
analysis and comprehensive consideration of options and experience.

Project Strategy
   • Promote sustainable changes in financing and contracting practices and leverage
       financing resources by working closely with governments, companies, and financial
       institutions (commercial, multilateral, and bilateral).

   •   Pursue solutions that lead to sustainable energy efficiency markets by limiting
       subsidies to those areas where subsidies are likely to be productive, such as to reduce
       high start-up transaction costs, buy down risks of entering new markets, or pilot new
       projects. For longer-term commitments, participating governments may want to
       consider projects where societal benefits and government policy justify these
       commitments.

Approach
   • Compile information on and evaluate successful contracts, business models, and
      financing approaches from member countries and other international efforts (e.g.
      APEC) and share key findings and lessons learned among Partner countries.

   •   Implement joint projects to remove barriers and apply successful models for energy
       efficiency financing and contracting in those Partner countries that choose to
       participate.

   •   Document the outcomes of each task using qualitative and quantitative measures
       described in Section 7.

   •   Participate in annual reviews of project progress; share results with the expert group
       and other task teams, and incorporate input from all interested Partner countries into
       future plans for the tasks.

The candidate tasks will be drawn from successful models for financing and contracting from
any of the following sources: utilities, commercial lenders, and public institutions. Two tasks
are proposed. Additional tasks will be developed, based on this initial experience and on the
identified needs and interests of Partner countries. The initial proposed tasks are:

   •   Task 1: Simplifying and systematizing documentation of energy savings to for
       financing (U.S. lead); and

   •   Task 2: Fostering businesses to deliver energy efficiency products and services.



                                                                                            93
Task 1: Simplifying and Systematizing Documentation of Energy Savings for Financing
BATF activities in this area will compile experiences and results to identify effective
approaches to audits, monitoring and verification. The sub-tasks will include:

1) Survey ongoing and recent cooperation on audits, monitoring and verification, and
performance contracting and determine the needs for tools and technical assistance in
participating countries. For example, USAID, USEPA and the Renewable Energy and
Energy Efficiency Partnership (REEEP) with partners in India support ongoing work on
standardized audit methods and reporting formats for buildings in India.

This activity can also draw on examples, documents, and tools available from other
international efforts outside of the Partnership, such as the Efficiency Valuation Organization
(EVO), with their existing International Performance Measurement and Verification Protocol
(IPMVP), and work in progress on an International Energy Efficiency Financing Protocol
(IEEFP). Partners could consider how to build on these initiatives to encourage further
technical development and timely uptake across the region. Technical refinements of IPMVP
and IEEFP could include multiple levels of detail and complexity (see the “incremental
financing” model in Figure 1, above), as well as harmonization of these and other tools to
support a Partnership regional market for energy efficiency financing.

2) Develop, implement, or enhance joint activities to improve information, technical capacity,
and tools for effective performance contracting in selected Partner countries. The first
priority for these activities will be on refinement and standardization of tools, procedures, and
institutional capacity within the individual countries. Areas of focus will include:

   •   Standardized energy audit procedures and formats.

   •   Common templates to help reduce transaction costs for contracting, performance
       guarantees, and guides to contracting procedures.

   •   Standard protocols for measurement and verification of savings.

   •   Standard definitions of the types of risk in performance contracts and standard
       “templates” for allocating risk.

It is important to adapt tools and procedures to local conditions, needs, and capacities to
encourage practical implementation steps. Where appropriate, cooperation among Partner
countries could look for opportunities to harmonize these performance contracting methods
and tools across Partner countries, and to aim toward the highest international standards of
practice. This will facilitate the international business of energy service contracting and help
to increase the pool of technical experts and the effectiveness of performance contracting in
all Partner countries.

3) Report annually on results of compiling, refining, and adapting program models and tools,
as well as the results of joint activities implemented by the participating Partner countries.

Task 2: Fostering Businesses to Deliver Energy Efficiency Products and Services
BATF activities in this area will compile experiences and results to identify effective means
to foster businesses to deliver energy efficiency products and services. This task will build
on the findings of the recent UNEP-World Bank Three Country Energy Efficiency Study,
which found that developing appropriate financing mechanisms for energy efficiency projects


                                                                                              94
is primarily an institutional issue. Partnership projects can also build on the experience of
APEC and other international projects such as those sponsored by the Global Environment
Facility (GEF). Project implementation will also be coordinated where appropriate with
international finance institutions that can bring significant resources to development of
commercial markets for energy efficiency financing. For example, the Asian Development
Bank recently launched an Energy Efficiency Initiative (EEI) committed to expanding ADB’s
investments in energy efficiency in member countries to $1 Billion/year. Voluntary
participation will assure that each Partner can match their part of the overall project to local
conditions.

1) Survey the considerable experience among Partner countries on how to structure and
promote ESCO programs, including development of:

   •   Assessments of where ESCO/EMPC programs have been effective and where other
       business models may be more appropriate.

   •   Accreditation programs for energy auditors and ESCOs.

APEC is currently developing standard loan templates with input from local commercial
lending institutions, as the long-term objective is to sell “seasoned” loans to commercial
banks. These models can be deployed and refined in Partner countries’ markets. Discussions
and workshops with bankers, developers, owners, and ESCOs can provide examples of how
risk can be allocated in the financing of energy-saving projects.

2) Meet with equipment suppliers to identify capacity to finance projects and conditions for
expanding their financing activities.

3) Work with bilateral and multilateral funding institutions to identify where their programs
might fund programs and projects to support private investment in building energy efficiency.

4) Identify Partner countries to test models that rely on incremental financing and incremental
increases in the sophistication of energy audits, monitoring and verification, as discussed
above and illustrated in Figure 1.

5) Report annually on results of compiling, refining, and adapting program models and tools,
as well as the results of joint activities implemented by the participating Partner countries.

6) Identify interest in and sources of revolving funds, partial risk guarantees, and insurance
programs to overcome the risks associated with lack of information and experience in
markets that are just developing. The BATF will seek sponsors and candidate projects for a
buildings energy efficiency fund to be demonstrated in one or more Partner countries.

7) Sponsor a workshop on the experiences with SPEs and the potential to modify and expand
the models.

Milestones
2006–07          Begin initial activities, including identification of successful models,
                 information that can be shared, and joint demonstration activities. Prepare
                 reports for dissemination on successful models and lessons learned. Contact
                 vendors and financiers to identify how they might expand their activities.



                                                                                             95
2007-08          Implement jointly approved projects.

2009             Continue projects; review implementation of joint projects.



Dissemination of Project Results
Project results will be summarized in reports to be distributed to stakeholders within
countries and posted on appropriate websites, as available.

Assessment of Project
The project results will be measured in terms of:

   •   Incremental change in private companies offering energy efficiency services,
       measured in number of companies and total sales.

   •   Incremental change in private investment in energy efficiency in terms of number of
       investors and volume of equity investment.

   •   Incremental change in number of private financial institutions lending to energy
       efficiency projects and volume of lending.

   •   Reduction in GHG emissions attributed to the incremental change in private financing
       of building energy efficiency projects.

Data collection requirements and resources will be included in each task that is jointly
implemented.

Participation and Management
Management
The United States is the leader for this project. Partners who elect to participate in this
project will manage their in-country efforts and may elect to manage Partnership tasks.

Participation
Participation in this project will be tailored to each Partner’s situation; therefore, Partner
participation in its tasks will be voluntary. Participating Partner countries will determine
funding, based on the tasks selected and will seek funding from commercial lenders, vendors
and manufacturers, bilateral financing agencies, and multilateral development banks and
agencies.

Estimated Budget and Funding Sources
To be determined, pending discussions of interest with Partner countries, interested
companies, multilateral and bilateral funding institutions.

To be determined.




                                                                                              96
Appendix B: BATF Members and Observers
Buildings and Appliances Task Force
Prefix          First Name     Last Name   Organization
Australia
Mr.             Bryan          Douglas     AEEMA
Mr.             Paul           Edwards     Bovis Lend Lease
Dr.             Michael        Green       Australian Government, Industry Tourism Resources
Mr.             Mark           Lister      Szencorp
Mr.             Gene           McGlynn     Department of the Environment and Heritage
Ms.             Cathy          Zoi         Bayard Group
China
Mr.             Jianhong       Cheng       China National Institute of Standardization
Ms.             Huo            Dufang      Cheaa
Mr.             Liang          Junqiang    Energy Efficiency Office Ministry of Construction
Mr.             Lin            Lan         Kelon
Mr.             Tiesheng       Yang        National Development and Reform Commission
India
Mr.             Rajesh Kumar   Sethi       Ministry of Environment and Forests
Japan
Mr.             Hirokazu       Ikezawa     Nikken Sekkei
Mr.             Makoto         Kato        Ministry of Environment, Japan
                                           Japan Electronics & Information Technology Industries
Mr.             Tsukasa        Kimura      Associates
Mr.             Kiyoshi        Saito       Japan Electrical Manufacturers’ Association
Ms.             Akiko          Ito         Ministry of Land, Infrastructure and Transport
Dr.             Narito         Shibaike    Panasonic
Mr.             Kunihiko       Shimada     Ministry of the Environment
Mr.             Keitaro        Kimura      Ministry of Economy, Trade and Industry
Korea
Mr.             Sang Joo       Baek        Korea Energy Management Corporation
Mr.             Seong Wook     Cho         Ministry of Commerce, Industry & Energy
Dr.             Jun Young      Choi        Korea Testing Laboratory
Dr.             Hak Do         Kim         Ministry of Commerce, Industry & Energy
Mr.             In Soo         Kim         Korea Energy Management Corporation
Dr.             Nam Kyun       Kim         Korea Electrotechnology Research Institute
Dr.             Seung Eun      Lee         Korea Institute of Construction Technology
United States
Mr.             William        Breed       Agency for International Development
Ms.             Kateri         Callahan    Alliance to Save Energy
Mr.             Robert         Dixon       Siemens Building Technologies Inc.
Ms.             Kathleen       Hogan       Environmental Protection Agency
Ms.             Lisa           Jacobson    Business Council for Sustainable Energy
Mr.             Joseph         McGuire     Association of Home Appliance Manufacturers
Mr.             Joe            Maheady     US Green Building Council
Mr.             Kenneth        Mentzer     North American Insulation Manufacturers Association
Mr.             Edwin          Pinero      Office of the Federal Environmental Executive
Mr.             Mark           Ginsberg    Department of Energy
Mr.             Gary           Stanley     Department of Commerce




                                                                                                   97
Appendix C: Buildings and Appliance Data
The graphs in this appendix provide an analytical snapshot of energy consumption by
buildings and appliances across the Partner countries, along with factors that affect future
energy demand growth and opportunities to save energy. The data in some cases may be
imprecise or not fully consistent among Partner countries.

While Task Force members will continue to refine these data and estimates, the graphs can
still offer a useful overview of similarities, differences, and trends among Partner countries,
as a basis for identifying program opportunities and setting priorities.

Energy Use in Buildings
Within the buildings sector, the relevant importance of residential and commercial buildings
energy use (including public buildings) ranges significantly among the Partner countries.
The residential share of primary energy ranges from under 50% to over 80%.


                 Residential and Commercial Shares of Buildings
                      Sector Primary Energy Consumption
     100%

       80%
       60%
                                                                                                  Residential
       40%
                                                                                                  Commercial
       20%

        0%
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Source: IEA 2003 Energy Balances <http://www.iea.org/Textbase/stats/index.asp>. Data for commercial includes ‘public
services,’ which may include some non-buildings energy such as municipal water pumping and street lighting. Also, the category of
‘combustibles, renewables, and waste’ is excluded, since these include significant amounts of non-commercial energy, especially in China
and India, which are difficult to estimate.


The residential share of all electricity use in buildings ranges from 32% to 76% among the
Partner countries.




                                                                                                                                      98
               Residential and Commercial Shares of Buildings
                      Sector Electricity Consumption
    100%

      80%
      60%
                                                                                        Commercial
      40%                                                                               Residential
      20%

        0%
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2003 Energy Balances<http://www.iea.org/Textbase/stats/index.asp>. Data for commercial includes ‘public service,’ which may
include some non-buildings energy such as municipal water pumping and street lighting.


Building Types and Occupancies

                        Residential Buildings - Single-Family and Multifamily

    100%

     80%
                                                                                                      Single Family
     60%
                                                                                                      Large Multifamily
     40%                                                                                              Small Multifamily

     20%

       0%
              Australia        China         India         Japan         Korea           US
                                                                         (2000)



Sources: 2004 DOE Buildings Energy Data Book
<http://smartenergy.arch.uiuc.edu/pdf/clearinghouse/BuildingsEnergyDatabook-2004.pdf>. For the U.S.,
small MF is up to 4 units, large MF is 5+ units, and SF includes mobile homes (6% of total).
2003 Housing and Land Survey of Japan <http://www.stat.go.jp/data/jyutaku/2003/zuhyou/q1100000.xls>




                                                                                                                        99
                        U.S. Commercial Building Floorspace by Occupancy Type
                       1.0%      10.0%
                                                             18.0%
                                                                                                       Office
                   2.0%                                                                                Warehouse
                 3.0%                                                                                  Retail
                 4.0%                                                                                  Education
                                                                                                       Public Assembly
             5.0%
                                                                                                       Lodging
                                                                          16.0%                        Service
              7.0%                                                                                     Health Care
                                                                                                       Food Service
                   7.0%                                                                                Public Order/Safety
                                                                                                       Food Sales
                                                             15.0%                                     Vacant & Other
                                 13.0%


Source: 2004 DOE Buildings Energy Data Book
<http://smartenergy.arch.uiuc.edu/pdf/clearinghouse/BuildingsEnergyDatabook-2004.pdf>. The residential percent
shares are for buildings, however the commercial shares are by floor space.


Primary Energy Types Used by Buildings
The mix of energy types used in buildings varies dramatically among the Partner countries,
from Australia where 60% of primary energy is electricity, to India with only about 20%
electricity but 60% direct combustion of oil. Buildings in China use coal directly for about
40% of buildings sector primary energy, where almost no coal is used directly in U.S. or
Japanese buildings.

                   Proportion of Primary Fuel Types Consumed By
                                      Buildings
  100.0%
    80.0%                                                                                                Other
                                                                                                         Elec
    60.0%
                                                                                                         Gas
    40.0%                                                                                                Oil
    20.0%                                                                                                Coal

      0.0%
                                                                                        L
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Source: APEC Energy Database <http://www.ieej.or.jp/egeda/database/database-top.html>, and IEA 2003 Energy Statistics
<http://www.iea.org/Textbase/stats/index.asp]>. Also, the category of ‘combustibles, renewables, and waste’ is excluded, since
these include significant amounts of non-commercial energy, especially in China and India, which are difficult to estimate.




                                                                                                                           100
Efficiency/Intensity Per Unit Floor Space in Existing Buildings




Source: Oil Crises & Climate Challenges- 30 Years of Energy Use in IEA Countries
<http://www.iea.org/textbase/nppdf/free/2004/30years.pdf>.


Building Construction Trends
Preliminary data suggest that growth rates in the building stock in China are higher than other
Partner countries (typically 1–2% per year).

                     Annual Construction as a Percentage of Existing Floorspace
 5.0%

 4.0%

 3.0%
                                                                                                              Residential
 2.0%                                                                                                         Commercial


 1.0%

 0.0%
             Australia          China             India            Japan           Korea (est.)   US
                                (2004)


Source: 2004 China Statistical Yearbook <www.stats.gov.cn/tjsj/ndsj/2005/indexeh.htm>. Comparable data needed for Australia,
India, Japan, and the United States.




                                                                                                                       101
Appliance Saturations
Average appliance saturations vary by appliance type and also vary among Partner countries,
as shown here.7 There is significant potential for further growth in appliances, especially in
India and China (where saturations among rural households, especially, are much lower than
for urban households as shown).


                                              APP Country Saturations for Selected Home
                                                             Appliances
    Number of Units per Household




                                    2.5

                                    2.0

                                    1.5

                                    1.0

                                    0.5

                                    0.0
                                              Australia      China (Urban, India (2001)            Japan (1999, Korea (2004)         US (2001)
                                               (1998)            2004)                              2002-2004)

                                     Refrigerator   Air Conditioner (room, central)   Clothes Washer   TV   Fan   Personal Computer (at home)


Source: Australian Residential Building Sector Greenhouse Gas Emissions 1990-2010. Final report 1999, NSSO (National Sample Survey
Organization) March 2001: Consumption of some important commodities in India, “Survey on Electricity Consumption Characteristics of
Home Appliances,” KEPCO report 2004, EPA Trends in Household Consumption: “Kakei shouhi no doukou,” 9 Elec Co’s: “Sekiyu kagaku
shimbun,” Telecommunication Union (ITU) 2006: World Telecommunication Indicators 2005, Geneva: ITU, 2004 China Statistical
Yearbook, and SDOE Energy Information Administration: “Residential Energy Consumption Survey 2001.”




7
  Note that for the United States, the numbers shown for air conditioners, clothes washers, fans, and PCs are
based on the fraction of households with one or more of these appliances, rather than the total number of
appliances divided by total number of households. Data for China and some other countries appear high,
possibly because they include residential appliances outside of homes (e.g. clothes washers in shared laundry
facilities or commercial laundries).


                                                                                                                                                 102
Standby Power
Average standby power in homes (for consumer and office electronics, battery chargers, and
displays or controls installed in white goods, small appliances, and other equipment) already
uses about as much electricity as a refrigerator, in several industrial countries. Saturations of
these devices continue to grow rapidly in both developing and industrial countries.




Source: Adapted from ’Research Recommendations to Achieve Every Savings for Electronic Equipment 9 of 9 in Low Power Modes: A
Summary of Previous Project Work and Identification of Future Opportunities,’<http://standby.lbl.gov>.




                                                                                                                           103
End-Uses of Energy
The distribution of energy end-uses varies between residential and commercial buildings, as
well as among Partner countries.

                       Breakdown of Residential Primary Energy End-Uses (US)
                        1% 4%
                      5%
                5%                                                                    Space Heating

                                                        34%                           Lighting
             5%
                                                                                      Space Cooling
                                                                                      Water Heating
          8%                                                                          Refrigeration
                                                                                      Electronics
                                                                                      Cooking
                                                                                      Wet Clean (incl. laundry)
             13%
                                                                                      Computers
                                                  13%                                 Other
                               12%


                     Breakdown of Commercial Primary Energy End-Uses (US)
                         10%                    16%
                    3%                                                                     Space Heating
                                                                                           Lighting
                7%
                                                                                           Space Cooling
             2%                                                                            Water Heating
                                                                                           Refrigeration
             7%
                                                                                           Electronics
                                                          28%                              Cooking
               7%                                                                          Ventilation
                                                                                           Computers
                     7%                                                                    Other
                                   13%


Source: 2005 EIA Energy Data Book <http://buildingsdatabook.eere.energy.gov/>. Comparable data are needed for Australia,
China, India, Japan, and Korea (even if specific end-use categories may differ).




                                                                                                                       104
                     Breakdown of Primary Residential Energy End-Uses (Korea)
                             2% 4%               12%
                       8%                                                                       TV
                                                                                                Refrigeration
                                                                                                Kimchi Refrigerator
                8%
                                                                                                Washing Machine
               3%                                                                               Fan
                                                                25%                             Air-Conditioner
                                                                                                Iron
                                                                                                Computers
               19%                                                                              Rice Cooker
                                                                                                Micro Oven
                            2% 6%                11%                                            Vacuum Cleaner


Source: ‘Survey on Electricity Consumption Characteristics of Home Appliances,’ KEPCO report, 12/2004.


Energy Costs

           Average Residential Electricity Price per kWh in $U.S.
                                  (2003)
         0.2


        0.15
  $US




         0.1


        0.05


          0
               Australia     China         India        Japan        Korea          US
                                                                     (2005)


Source: EIA International Electricity Prices and Fuel Costs
<http://www.eia.doe.gov/emeu/international/electricityprice.html>. China data from LBNL China Energy Group.




                                                                                                                      105
Appendix D: Existing Policies and Programs
The information summarized in this Appendix is designed to provide BATF members and
other interested readers with a common frame of reference for comparing existing policies
and programs across the Partner countries, and for considering additional initiatives or new
approaches to strengthen or broaden existing programs.

Energy efficiency programs and policies are grouped into the following categories:

•   Information, labeling, & certification.

•   Training & technical assistance.

•   Utility & government rebates and tax incentives.

•   Financing.

•   Utility regulatory incentives & industry voluntary targets.

•   Public sector leadership.

•   Mandatory measures.

•   Energy pricing & rate structure.

•   Technology development & demonstration.

•   Other.

For each category, we include programs that apply to new and existing residential buildings,
new and existing non-residential buildings, and appliances & equipment.

Information, Labeling and Certification
This category includes appliance labeling, building benchmarking, certification, and
disclosure (to prospective buyers or tenants), along with public awareness campaigns.

Australia
The Department of Environment and Heritage (DEH) works in partnership with stakeholder
groups to introduce programs that encourage market transformation by promoting highly
efficient equipment or by identifying selected energy-efficient products through appliance
labeling. The Australian Greenhouse Office (AGO) is currently working with its
stakeholders to reduce standby power losses. For more information, visit:
http://www.energyrating.gov.au/standby.html

More information on appliance energy labeling is at:

•   Energy All-stars—www.energyallstars.gov.au

•   Energy Rating—www.energyrating.gov.au

•   Energy Star—www.energystar.gov.au


                                                                                           106
The Australian Window Association and Australian Glass Association are currently working
with the National Fenestration Rating Council (NFRC) in the United States to establish a
unified energy performance rating and labeling system for windows and glazing systems.

The National Australian Built Environment Rating System (NABERS) is a performance-
based rating system that measures the sustainability of existing buildings and promotes
environmental improvement in the operation of Australian buildings using a set of key impact
categories. For more information, visit: www.nabers.com.au

Sustainable House Day (formally Solar House Day) allows people who are considering
building or renovating a house to gain a first-hand insight into the style, comfort and
economic benefits of real passive and active solar homes by touring homes of builders and
designers around the country. For more information, visit:
http://www.greenhouse.gov.au/buildings/solarhouseday.html

China
In 1998, the China Standard Certification Center (CSC, formerly Certification Center for
Energy Conservation Products, or CECP) was established as a non-government organization
under the National Development and Reform Commission (NDRC) with a mission of
developing appliance energy rating and labels. CSC develops the energy testing and
certification procedures for energy-saving, water-saving, and environmental-friendly
products. CSC also conducts fundamental research on energy efficiency for policymaking
and identifies ways to remove market barriers in order to promote energy-efficient, water-
saving and environmentally friendly products. For more information, visit:
http://www.cecp.org.cn/englishhtml/cecp.asp

Efficient Lighting Initiative (ELI) Project: CSC is also involved as administrator of ELI, an
international collaboration to support the use of high-quality energy-efficient lighting
products globally through creating a self-sustaining global certification service for efficient,
reliable lighting products. For more information, visit:
http://www.cecp.org.cn/englishhtml/introduction.asp

The China Green Lighting Promotion Project is a cooperative effort by the State Economic
and Trade Commission (SETC), United Nations Development Program (UNDP), and the
Global Environment Facility (GEF). For more information, visit:
http://www.cecp.org.cn/englishhtml/introduction.asp

The China Motor Systems Energy Conservation Program includes minimum energy
efficiency standards for motors and a voluntary “green motor” labeling program for high-
efficiency motors. For more information, visit:
http://eetd.lbl.gov/ea/indpart/publications/lbnl_51052.pdf

Leadership in Energy and Environmental Design (LEED) in China: Five Chinese buildings
are certified by the LEED rating system and one building under development is registered for
LEED (see the entry below, under United States). For more information, visit:
http://www.usgbc.org/LEED/Project/CertifiedProjectList.aspx?CMSPageID=247&CategoryI
D=19& and http://www.usgbc.org/LEED/Project/RegisteredProjectList.aspx

The U.S.-based Alliance to Save Energy and the Energy Foundation, in cooperation with the
China Ministry of Construction, is working to promote testing/simulation and labeling for



                                                                                              107
energy performance of window products, along with glass and window manufacturers in
China. For more information, visit: http://www.ase.org/section/country/china/

India
National Energy Labeling Program: A categorical label (1 to 5 stars) has been applied to
frost-free refrigerators and fluorescent tube lights (first voluntary and then mandatory over
time). For more information, visit: http://www.clasponline.org/listnews.php?no=413

The Government of India launched the “Ecomark” eco-labeling scheme in February 1991 for
easy identification of environment-friendly products. For more information, visit:
http://www.cpcb.nic.in/eco_criteria_elect.htm

The Bureau of Indian Standards (BIS) covers product quality certification, consumer affairs,
and development of technical standards. For more information, visit: http://www.bis.org.in/

Confederation of Indian Industries/Green Buildings Centre promotes the building of world
class “Green Buildings.” Several corporate buildings have been built to the United States
Green Building Council’s platinum and gold level LEED rating. For more information, visit:
http://greenbusinesscentre.com/

National Campaign on Energy Conservation 2006: One focus is the Domestic Sector. For
more information, visit: http://www.bee-india.nic.in/NCEC2006/NCEC06.htm

Japan
Labeling of Appliances under Japan Industrial Standard—Japan has mandatory energy
labeling for air conditioners and voluntary labeling for several other product categories. For
details see www.clasponline.org

CASBEE is the Comprehensive Assessment System for Building Environmental Efficiency,
a labeling system for building energy performance. For more information, visit:
http://www.ibec.or.jp/CASBEE/english/index.htm

The Housing Performance Indication Scheme offers a government-sponsored format for
sellers to voluntarily disclose to buyers, at the time of sale, certain features of the house
including energy efficiency. A summary of this program is on p. 49 at
http://www.olis.oecd.org/olis/2001doc.nsf/43bb6130e5e86e5fc12569fa005d004c/af860e391b
8304eec1256bd7004fc927/$FILE/JT00128202.DOC

The Top Runner Program identifies today’s most efficient technologies in a given appliance
and equipment category and sets a target date, in consultation with industry, for achieving
this level of performance as the average of all new appliances sold. For more information,
visit: http://www.enecho.meti.go.jp/english/toprunnner/program.pdf

Republic of Korea
Appliance efficiency standards and labels in Korea are summarized at the APEC-ESIS
website. For more information, visit: http://www.apec-
esis.org/countrysummary.php?country=USA and also www.clasponline.org

The Ministry of Commerce, Industry, and Energy (MOCIE), in cooperation with the Korea
Energy Management Corporation (KEMCO) sponsors the “High-efficiency Equipments


                                                                                            108
Certification Program,” a voluntary program that designates models that significantly exceed
minimum efficiency standards for 33 categories of products. For more information, visit:
http://www.kemco.or.kr/english/sub03_energyefficiency00.asp

The “e-Standby” program, jointly sponsored by MOCIE and KEMCO, provides a label
endorsing low standby power products for 17 types of home and office electronics. More
information is at http://www.kemco.or.kr/english/sub03_energyefficiency00.asp

The “Energy-Saving Office Equipment & Home Electronics Program” has been implemented
since 1 April, 1999 for the purpose of enhancing the introduction of energy-saving products
with low standby power, in cooperation with the U.S. Energy Star program, based on Article
13 of the Rational Energy Utilization Act of Korea.

Korea is developing a commercial building energy rating and benchmarking program, which
is expected to be launched in 2007.

An energy efficiency labeling program for residential buildings is being implemented; the
purpose is to encourage the supply of low-energy residential buildings. Also, residential
multi-family buildings with over 18 units are expected to adopt energy-saving equipment and
appliances.

The Public Campaign on Energy Efficiency and Conservation includes Energy Conservation
Month and Energy Conservation Day.

The Energy Conservation Exhibition (ENCONEX) promotes the latest energy conservation
technologies and equipment.

The Energy Conservation Convention is an event held annually in order to heighten public
energy conservation awareness and to honor those who have made a significant contribution
to the cause.

United States
U.S. appliance efficiency standards and labels are summarized, along with those of many
other countries, at the APEC-ESIS website. For more information, visit: http://www.apec-
esis.org/countrysummary.php?country=USA and also www.clasponline.org

The Energy Star for Homes program provides voluntary home energy efficiency ratings for
participating builders. For more information, visit:
http://www.energystar.gov/index.cfm?c=new_homes.hm_index

Energy Star Buildings is a voluntary partnership and recognition program for non-residential
buildings, sponsored by USEPA. For more information, visit:
http://www.energystar.gov/index.cfm?c=business.bus_index

The LEED (Leadership for Energy and Environmental Design) rating scheme for new and
existing buildings is sponsored by the U.S. Green Building Council. For more information,
visit: http://www.usgbc.org/LEED

A version of the LEED rating system is also being developed for homes. For more
information, visit: http://www.usgbc.org/LEED




                                                                                         109
The North Carolina SystemVision program also provides guidelines and rating criteria for
new home energy efficiency. For more information, visit:
http://www.advancedenergy.org/buildings/programs/affordable_housing/index.html

The Energy Policy Act of 2005 authorized a comprehensive national program to inform
consumers the need to save energy, benefits to consumers and the national economy, and
practical cost-effective measures (this program has not yet been funded). For more
information, visit: http://energycommerce.house.gov/108/energy_pdfs_2.htm

The Clean Energy–Environment State Partnership Program is a voluntary state–federal
partnership that supports state efforts to increase the use of clean energy. For more
information, visit: http://www.epa.gov/cleanenergy/pdf/gta/guide_action_full.pdf

U.S. DOE maintains a database on high-performance energy-efficient buildings. For more
information, visit: http://www.eere.energy.gov/buildings/highperformance/

U.S. DOE also sponsors the Zero Energy Homes program, with detailed energy performance
data and case studies. For more information, visit: http://fsec.ucf.edu/Bldg/baihp/index.htm

Training and Technical Assistance
Programs in this category include building energy audits, design assistance, and professional
training and certification on energy efficiency.

Australia
In 1998, the federal Department of Environment and Heritage signed a three-year partnership
agreement with the Housing Industry of Australia, called PATHE. The aim of this
partnership is to develop, demonstrate and promote technologies, design principles and
practices to improve environmental resource management in the housing industry. For more
information, visit: http://www.greensmart.com.au/

The Working Energy Resource Kit is designed to help local government develop best
practice by providing simple and effective methods for improving greenhouse performance.
For more information, visit: http://www.greenhouse.gov.au/lgmodules/wep/index.html

The Association of Building Sustainability Assessors (ABSA) is running a series of training
courses in building sustainability. The courses are suited to building and design practitioners
looking for a comprehensive understanding of sustainability regulation and practical, cost-
effective ways to meet the requirements. For more information, visit:
www.absa.net.au/training/courses.aspx

Your Home is a suite of consumer and technical guide materials and tools developed to
encourage the design, construction or renovation of homes to be comfortable, healthy and
more environmentally sustainable. For more information, visit:
http://www.greenhouse.gov.au/yourhome/index.htm

The Voluntary Building Industry Initiatives Programme of the Australian Greenhouse Office
(AGO) is designed to assist the building industry to encourage best greenhouse practice from
building and construction practitioners. For more information, visit:
http://www.greenhouse.gov.au/buildings/practices.html




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China
Energy Conservation Information Dissemination Centre (ECIDC): Developed nine best
practice cases on how best to install and operate energy systems. For more information, visit:
http://www.ieej.or.jp/aperc/pdf/project2002/efficiency.pdf

eeBuildings provides a voluntary, no-cost approach to improved energy efficiency. For more
information, visit: http://www.epa.gov/eeBuildings/china/index.html

India
Energy Audits for Buildings. For more information, visit: http://www.bee-
india.nic.in/Energy%20Auditor/Guidelines/Energy%20audit%20for%20buildings.pdf

The Federation of India Chambers of Commerce and Industry is conducting energy efficiency
training and audits. For more information, visit: http://www.ficci.com/services/energy.htm

The Petroleum Conservation Research Association (PCRA) provides energy audits. For
more information, visit: http://www.pcra.org/English/aboutus/default.htm

The Energy Conservation Act of 2001 called for training and certification of professionally
qualified energy managers and auditors with expertise in energy management, project
management, financing and implementation of energy efficiency projects, as well as policy
analysis. For more information, visit:
http://www.energymanagertraining.com/new_index.php

The Federation of India Chambers of Commerce and Industry is conducting energy efficiency
training. For more information, visit: http://www.ficci.com/services/energy.htm

The U.S. Asia Environmental Partnership (USAEP) in partnership with local governments,
builders, architects, and academic institutions regarding the promotion of green building for
the housing sector. For more information, visit:
http://www.usaep.org/activities/initiatives/india.htm#5a

eeBuildings/India: A pilot program cosponsored by USEPA, USAID/India, and the Indian
Bureau of Energy Efficiency (BEE) and the Maharashtra Energy Development Agency
(MEDA) provides a voluntary, no-cost approach to improved energy efficiency. For more
information, visit: http://www.epa.gov/eeBuildings/india/index.html

TERI Green Rating for Integrated Habitat Assessment (TERI–GRIHA): A voluntary program
whose primary objective of the rating system is to help design green buildings and, in turn,
help evaluate the “greenness” of the buildings. For more information, visit:
http://www.teri.res.in/core/griha/

Japan
A government affiliate (Institute of Building Environment and Energy Conservation)
provides training seminars on design and construction of energy saving building/housing.

A government affiliate (Institute of Building Environment and Energy Conservation)
provides Comprehensive Assessment System for Building Environmental Efficiency
(CASBEE) assessor accreditation and training program.




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Republic of Korea
Energy audits have been conducted mainly by KEMCO. In the industrial sector, there are two
kinds of energy audits: an in-depth audit and a free audit. In the commercial building sector,
energy audits are conducted for large residential and commercial buildings at the request of
the owners of those buildings. Depending on the results of the audits, technical assistance
and energy efficiency improvements, such as thermal insulation and double-glazed windows,
will be provided. For more information, visit:
http://www.kemco.or.kr/english/sub03_energyaudit.asp

Practical Business Training and Capacity Building Courses (including the personal capacity
and certifying the operators of small-sized boilers and pressure vessels, as well as the
operators of gas boilers and certified energy managers). Classes are held for seven hours per
day on topics such as energy conservation policies, laws and regulations which are also
related to rational energy utilization, efficiency and safety of energy-consuming equipment,
new conservation technologies, and measures to prepare for the Convention on Climate
Change.

Education for Provincial Energy Planning Officials.

Early Stage Education: Providing financial assistance, educational aids such as books and
other related materials for elementary and junior-high schools.

United States
The U.S. DOE supports software tools (REScheck and COMcheck) for checking compliance
with energy performance requirements recommended for new buildings and evaluating
performance trade-offs among efficiency measures.

The National Conference of States on Building Codes and Standards (NCSBCS) sponsors
training and information exchange on building code adoption and enforcement, not limited to
the energy efficiency aspect of building codes. For more information, visit:
http://www.ncsbcs.org/

Many utility companies offer energy audits to their residential and non-residential customers.

The Federal Energy Management Program (FEMP) provides energy audits to federal
agencies. For more information, visit:
http://www1.eere.energy.gov/femp/services/assessments.html

The U.S. DOE Home Weatherization Program offers an energy audit software tool for low-
income households. For more information, visit:
http://www.eere.energy.gov/weatherization/wxtech_neat.html

Another federal government-sponsored free software tool for self-audits by homeowners is
the Home Energy Saver. For more information, visit: http://hes.lbl.gov/

A number of professional and technical societies, as well as utility programs, provide energy
efficiency training and education programs. For more information, visit:
http://www.aeecenter.org/certification/CEMpage.htm
,http://www.aesp.org/i4a/pages/index.cfm?pageid=1
,http://www1.eere.energy.gov/education/adult_education.html



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The annual Solar Decathlon, a U.S. DOE program that sponsors university student teams to
design and build low-energy homes. For more information, visit:
http://www.eere.energy.gov/solar_decathlon/

Utility and Government Rebates and Tax Incentives
Included in this category are utility demand-side management (DSM) rebates and sales and
income tax incentives.

Australia
The Greenhouse Gas Abatement Programme (GGAP) uses Australian Government funding
grants to leverage private sector investment on projects to reduce greenhouse gas emissions,
such as co-generation, energy efficiency, travel demand management, alternative fuels,
coalmine gas technologies and fuel conversion. For more information, visit:
http://www.greenhouse.gov.au/ggap/index.html

Several state-based programs provide financial assistance.

The NSW Energy Savings Fund allocates $40 million a year for five years to encourage
savings in energy and peak electricity demand in New South Wales. For more information,
visit http://www.deus.nsw.gov.au/waterandenergysavings/

Victorian Energy Rebates provide funding for the installation of certain energy-efficient
systems including solar hot water, high efficiency gas heaters and hot water systems. For
more information, visit http://www.sustainability.vic.gov.au/www/html/1517-home-page.asp

The Victorian Sustainability Fund and provides grant-based financial support for a broad
range of environmental initiatives. For more information, visit
http://www.sustainability.vic.gov.au/www/html/1517-home-page.asp

China
Chinese jurisdictions offer property tax and city fee exemptions for energy-efficient
buildings, as defined by the Energy Efficient Design Standards for Hot Summer-Cold Winter
Region. For more information see the description on p. 37 of the APEC report at:
http://www.ieej.or.jp/aperc/pdf/project2002/efficiency.pdf

India
The Electricity Act of 2003: Sets up central and state-level independent regulatory
commissions, can mandate and finance DSM programs. For more information, visit:
http://www.bee-india.nic.in/sidelinks/Electricity_Act_2003.html

The Bangalore Electricity Supply Company (BESCOM) in Karnataka initiated a program,
Bescom Efficient Lighting Program (BELP), to promote the use of CFLs. For more
information, visit: http://www.bescom.org/en/news/belp.asp

Maharashtra Electricity Regulatory Commission (MERC) instituted a public-benefits type of
electricity charge on industry, funds from which can be used to finance renewable energy and
energy efficiency programs in the state. For more information, visit:
http:mercindia.org.in/Orders_2005.htm




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Japan
Information not available.

Republic of Korea
Rebates for High Energy Efficiency Appliances (Motor, Lamp Ballast, Vending machine,
Inverter, Pump, and Transformer). For more information, visit:
http://www.kemco.or.kr/rebate

The government provides tax incentives for energy efficiency investments (10% since 2005)
for replacement of old industrial kilns, and installation of energy-saving facilities, alternative
fuel-using facilities. For more information, visit:
http://www.kemco.or.kr/english/sub03_financial.asp , and
http://www.kemco.or.kr/english/sub03_financial02.asp

United States
Energy Efficiency Action Plan is a voluntary program initiated by USEPA and USDOE,
involving utility, industry, and state government leaders and covering all sectors not just
buildings. For more information, visit: http://www.epa.gov/cleanrgy/eeactionplan.htm

A number of states provide utility or state incentives, including rebates or tax benefits, for
energy efficiency measures in new or existing buildings, and for purchase of energy-efficient
appliances and equipment. For more information, visit: http://www.dsireusa.org/

The Consortium for Energy Efficiency (CEE) coordinates utility rebate programs. For more
information, visit: http://www.cee1.org/

Several states are considering sales tax incentives for purchasers of Energy Star appliances.
For more information, visit: http://www.ase.org/content/article/detail/2643

Financing
The range of financing programs includes conventional loans, government-subsidized ‘soft’
loans and loan guarantees, revolving funds for investment in energy efficiency, leasing of
energy-efficient buildings and equipment, financing of efficiency measures with repayment
through utility bills, and ESCO performance contracts.

Australia
Australasian Energy Performance Contracting Association (AEPCA): aims to support the
commercial growth of members and their market through education, industry promotion, self-
regulation and industry standards. In partnership with governments, it has developed industry
best practice guidelines to Energy Performance Contracting (EPCs) and measurement and
verification. For more information, visit: http://www.aepca.asn.au/

China
Three Country Energy Efficiency Project: Initiated in 2001 by the World Bank and UN
Environment Programme to substantially increase investments in energy efficiency by the
domestic financial sectors in Brazil, China and India. For more information, visit:
http://3countryee.org/




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India
Private ESCOs have mobilized and recently set up the Indian Council for Energy Efficiency
Business (ICPEEB) to network, provide input to policy makers, support business
development, and disseminate information on energy efficiency. For more information, visit:
http://www.shrishakti.com/alternativeenergy/index.html

ESCOs have worked with the Ahmadabad Electricity Company to implement efficient
lighting & other measures. For more information, visit:
http://www.usaid.gov/in/Pdfs/Draft_DSM%20Guidebook.pdf

Three Country Energy Efficiency Project: see China, above

Programme on Solar Water Heating: Regular interest rates are being subsidized by Ministry
of Non-Conventional Energy Sources (MNES), leading to installations of solar water heater
in households, hotels, hospitals, small scale businesses, medium enterprises, sugar mills, milk
processing plants, and food processing units. For more information, visit:
http://www.renewableenergyaccess.com/rea/news/story?id=43139

Japan
Environmentally Symbiotic Housing Model Project: Ministry of Land, Infrastructure and
Transport provides model projects with subsidy for expenses for permeable pavement,
greening facilities, etc.

Premium Loan Program by the Government Housing Loan Corporation: Additional loan
program and favorable interest rate for energy-saving performance has been provided by the
Government Housing Loan Corporation. In addition, a new program has been introduced
since 2005 that uses a mortgage-backed security approach to give favorable interest rate for
energy-efficient housing.

Low-interest Loans for Commercial Buildings: To promote environmentally friendly building
construction, the Development Bank of Japan offers low-interest loans to projects.

Subsidies for energy efficient system of residential and commercial buildings: New Energy
and Industrial Technology Development Organization (NEDO) promotes introduction of
highly energy-efficient systems in housing or other buildings with subsidies.

Local Housing Grants: Ministry of Land, Infrastructure and Transport provides local
governments with Local Housing Grants when they promote projects based on Local Housing
Plan.

Tax mitigation: Small and medium sized enterprises can enjoy corporate/income tax
mitigation when they acquire facilities for efficient use of energy.

Republic of Korea
Information not available.




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United States
ESCO Financing: Used by the private sector (large commercial buildings) and schools,
hospitals, and government offices. For more information regarding Federal government
programs to use ESCO financing for Energy-Savings Performance Contracts. For more
information, visit: http://www1.eere.energy.gov/femp/financing/mechanisms.html. Also, for
an overview of trends in the U.S. ESCO industry, visit: http://eetd.lbl.gov/EA/EMP/ee-
pubs.html

The Asia-Pacific Economic Cooperation (APEC) has conducted a number of studies of
energy efficiency and renewable energy projects, and sponsored pilots and demonstrations in
APEC member economies. For more information, visit:
http://www.apecsec.org.sg/apec/apec_groups/working_groups/energy.MedialibDownload.v1.
html?url=/etc/medialib/apec_media_library/downloads/workinggroups/ewg/pubs/1998.Par.00
02.File.v1.1

Energy Efficient Mortgage (EEM): In 1995 Congress mandated a national EEM program.
FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal
residence and incorporate the cost of energy-efficient improvements into the mortgage. For
more information, visit: http://www.hud.gov/offices/hsg/sfh/eem/eem_prog.cfm

Utility Regulatory Incentives and Industry Voluntary Targets
(Utility obligations with tradable “white” certificates, industry targets & voluntary
agreements).

Australia
The Mandatory Renewable Energy Target requires an additional 9,500 gWh hours of
electricity to be sourced from renewable sources by the year 2010. For more information,
visit: http://www.greenhouse.gov.au/markets/mret/index.html

Greenhouse Challenge Plus: Industry-Government partnerships to improve energy efficiency
and reduce greenhouse gas emissions, including supply and end-use efficiency aspects. For
more information, visit: http://www.greenhouse.gov.au/challenge/index.html

The NSW State Government Greenhouse Gas Abatement Scheme (GGAS): through the
Electricity Supply Amendment (Greenhouse Gas Emission Reduction) Act 2002 requires
electricity sector participants to surrender abatement certificates equaling set benchmarks.
These certificates can be created through various means including low-emission generation of
electricity and reduced consumption of electricity. For more information, visit:
http://www.greenhousegas.nsw.gov.au/

The Victorian State Government is undertaking a mandated rollout of interval “smart”
meters. For more information, visit: http://www.esc.vic.gov.au/public/Energy/

Several state-based electricity network initiatives to consider demand side management exist.
For more information, visit: http://www.iplan.nsw.gov.au/demandmgt/index.jsp and
http://www.sustainable.energy.sa.gov.au/pages/programs/dsm/demand_side.htm

China
Information not available.



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India
Information not available.

Japan
Kyoto Protocol Target Achievement Plan. For more information, visit:
http://www.env.go.kp/en/press/2005/0472b.html

Republic of Korea
The purpose of the Voluntary Agreement (VA) as a joint program between the government
and building owners is to reduce energy consumption and satisfy greenhouse gas emission
reduction targets by which building owners make their own target and try to achieve the goal
(recommendation: 5% saving through five years). The Korean Government is providing low
interest loans, tax incentives, technical support and PR promotion.

United States
California Green Building Initiative: 20% savings in commercial buildings in 10 years
(2015). For more information, visit: http://www.energy.ca.gov/greenbuilding/index.html

State-level “Renewable Portfolio Standards” which requires renewable energy to be a
minimum percentage of all electricity sales (or of new capacity), and typically include all
sectors not just buildings. For more information, visit: http://www.dsireusa.org/ (search for
“portfolio standards”).

Energy Efficiency Action Plan is a voluntary program initiated by U.S. EPA and U.S. DOE,
involving utility, industry, and state government leaders and covering all sectors, not just
buildings. For more information, visit: http://www.epa.gov/cleanrgy/eeactionplan.htm

The National Action Plan for Energy Efficiency presents policy recommendations for
creating a sustainable, aggressive national commitment to energy efficiency through gas and
electric utilities, utility regulators, and partner organizations. Two key components of the
National Action Plan for Energy Efficiency are participants identifying key barriers limiting
greater United States investment in energy efficiency, and developing/documenting sound
business practices for removing these barriers, as well as stakeholders committing to take
action to advance the recommendations in their spheres of influence. Regulators working
with utilities and other stakeholders, as well as boards working with publicly owned utilities,
can establish or reinforce several policies including overcoming the throughput incentive,
ensuring program cost recovery, and defining shareholder performance incentives. For more
information, visit: http://www.epa.gov/cleanrgy/actionplan/eeactionplan.htm

Public Sector Leadership
This category of programs includes energy-efficient government procurement, sustainable
construction, and energy management and retrofits of existing public facilities at all levels of
government.

Australia
Environmental Design Guide for Australian Public Buildings: This guide provides an
introduction to the key environmental issues relevant to office buildings and public buildings




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and what can be done to address these issues in building projects. For more information,
visit: http://www.deh.gov.au/settlements/publications/government/esd-design/index.html

The Australian Government’s policy Measures for Improving Energy Efficiency in
Commonwealth Operations requires the preparation of an annual whole-of-government report
on the total energy use and estimated greenhouse gas emissions of Australian Government
departments and agencies. For more information, visit:
http://www.greenhouse.gov.au/government/energyuse/pubs/measures.pdf

The Energy Efficiency in Government Operations Programme aims to reduce the energy use
and greenhouse gas emissions from Australian Government operations by setting energy
intensity targets in a number of end-use categories and requiring government office buildings
to be designed to meet energy efficiency performance criteria. It covers new public buildings
within federal, state, and local governments. There are some requirements through the
Energy Efficiency in Government Operations Programme for government energy-efficient
procurement.

China
Energy Efficiency in Government Agencies Project in Collaboration with LBNL, Energy
Foundation: Develop the research methodologies, surveys, analyze the collected data,
develop policy suggestions to the central energy conservation management agencies, and
participate in the development of government procurement policy for energy-efficient
products. For more information, visit: http://www.cecp.org.cn/englishhtml/introduction.asp

Since 2002, PePS (‘Promoting an energy-efficient Public Sector’) has been developing a pilot
project for government purchasing of energy-efficient products, utilizing China’s nascent
energy-efficient labeling scheme. For more information, visit:
http://www.pepsonline.org/countries/china.html

In 2004, the Ministry of Finance and the NDRC issued a policy document on
“Implementation of Government Energy Efficiency Procurement,” calling for a staged, three-
year program to establish energy-efficient purchasing practices at all levels of government in
China. For more information, visit: Treasury 2004 Number 185.pdf

‘Potential for Savings in China’s Government Energy Efficiency Procurement Program:
Preliminary Findings’ which estimates that cumulative 10-year savings could be as high as
10.9 TWh and over 10 million tonnes of CO2. For more information, visit: Potential for
Savings in China.pdf

Energy Conservation Products Certification Commission.

India
The PePS-India project was launched in 2005. It is currently enlisting partners from the
public sector in Maharashtra and will provide technical assistance, tools, and approaches that
have proven successful in other developing countries. For more information, visit
http://www.pepsonline.org/countries/india.html

The Prime Minister of India announced in 2002 that, “All Government Organizations [were]
to reduce their energy consumption by 30% in the next five years through contracts for
guaranteed levels of energy efficiency improvements involving energy service companies.”



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In line with government policy and this announcement, the Bureau of Energy Efficiency has
initiated a number of activities. For more information, visit: http://www.bee-
india.nic.in/aboutbee/Implementation/Building.html

Japan
Kyoto Protocol Target Achievement Plan. For more information, visit:
http://www.env.go.kp/en/press/2005/0472b.html

Plan for Measures the Government Must Implement in Order to Limit the Emission of
Greenhouse Gases in its Work and Projects (e.g. Cool Biz campaign).

Environmental Load Reduction Program on Government Facilities (Green Program).

Action Plan to Reduce CO2 Emissions from Government Facilities.

Standards for the Environmental Preservation Performance of Government Building
Facilities.

Standards for Assessment of the Environmental Preservation Performance of Government
Building Facilities and Renovation Plan.

ESCO Project (ESPC) Implementation Manual.

Handbook for Contributing to Global Warming Prevention Strategies in the Use of
Government Facilities.

Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the
State and Other Entities (Law on Promoting Green Purchasing).

Republic of Korea
Prime Minister’s Mandate: Public organizations including government buildings should
establish an energy-use efficiency improvements plan, report the actual result of energy
saving to the Prime Minister every year and get an on-site inspection in summer and winter.

New buildings should invest and adopt new and renewable systems by using 5% of building
construction budget (mandatory).

Prime Minister’s Mandate: They should follow “Energy saving guide for public
organizations.”

Preferential purchase for Energy-efficient appliances through Public Procurement Service by
Prime Minister’s Instruction 2005-5.

United States
New federal government buildings are required to be 30% more energy-efficient than the
code requirements for all other buildings (Energy Policy Act of 2005 (EPACT) Sec. 104).
For more information, visit: http://energycommerce.house.gov/108/energy_pdfs_2.htm

Energy Policy Act of 2005 requires that federal agencies reduce energy use in buildings by
2%/year for 10 years (EPACT Sec. 102). For more information, visit:
http://energycommerce.house.gov/108/energy_pdfs_2.htm


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The U.S. DOE Federal Energy Management program provides technical assistance and
information to other federal agencies in meeting this requirement, including energy audits
and standard contracts for ESCO and utility financing of energy-saving retrofits in federal
buildings. For more information, visit: http://www1.eere.energy.gov/femp/

Energy Policy Act of 2005 (Sec. 109) along with federal regulations and executive orders
require federal agencies to buy only Energy Star or FEMP-designated products in the top 25th
percentile of efficiency, where cost effective. For more information, visit:
http://www.eere.energy.gov/femp/procurement/ and www.energystar.gov/products

Executive Order 13221 requires federal agencies to buy products with 1-watt or other low
levels of standby as determined by USDOE/FEMP. For more information, visit:
http://www.eere.energy.gov/femp/pdfs/eo13221.pdf

Several state and municipal governments have also adopted the federal efficiency
requirements for their own purchasing. For more information, visit:
http://www.eere.energy.gov/femp/pdfs/eo13221.pdf,
http://www.pepsonline.org/countries/usa.html and http://www.cee1.org/gov/purch/purch-
main.php3

Mandatory Measures
Mandatory measures include building energy codes, appliance and equipment efficiency
standards, and mandatory equipment inspection and certification programs.

Australia
The National Appliance and Equipment Energy Efficiency Programme (NAEEEP) mandates
comparative energy labeling and minimum energy performance standards (MEPS) for
electrical and gas-powered domestic appliances, commercial products and industrial
equipment. For more information, visit: http://www.energyrating.gov.au/naeeec.html

The Australian Government’s Energy Efficiency Opportunities program encourages large
energy-using businesses to improve their energy efficiency by requiring businesses to
identify, evaluate and report publicly on cost-effective energy savings opportunities. For
more information, visit: http://www.energyefficiencyopportunities.gov.au/

Building Code of Australia—energy efficiency measures were introduced in January 2003 for
all building classifications to mandate performance above minimum standards through a
national standardized approach. For more information, visit:
http://www.greenhouse.gov.au/buildings/code.html & http://www.abcb.gov.au/

Several state mandatory measures exist to encourage energy efficiency. These include:

•   Queensland Sustainable Living Legislation: from 1 March 2006 all new homes built in
    Queensland are required to install energy-efficient hot water systems (solar, gas or
    electric heat pump) and use energy-efficient lighting for at least 40 % of internal floor
    space. For more information, visit: http://www.energy.qld.gov.au/sustainable_living.cfm

•   The Environmental Protection Authority of Victoria’s Protocol for Environmental
    Management (PEM) requires significant energy industries to take up cost-effective
    opportunities for greenhouse gas mitigation, and integrate consideration of greenhouse



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   and energy issues within existing environmental management procedures and programs.
   For more information, visit: http://www.epa.vic.gov.au/about_us/legislation/air.asp#pem

China
In 1989, the State Bureau of Technical Supervision issued the first set of standards related to
energy efficiency, including minimum efficiency standards for refrigerators, room air
conditioners, clothes washers, TVs, automatic rice cookers, radios, electric fans, and electric
irons.

The China National Institute for Standardization (CNIS) has technical responsibility for the
development of China’s minimum energy efficiency standards. Subsequently, CNIS has
developed, and the National Development and Reform Commission (NDRC) has issued,
strengthened regulations for household refrigerators, room air conditioners, clothes washers,
televisions, lighting, and other major energy-consuming equipment based on stringent
research and analytical techniques. In 2005, NDRC also launched a new mandatory
comparative information label for heavy appliances similar to those used in Australia, the
European Union, etc.

1999: Fluorescent lamp ballasts standards set, refrigerator standards updated.

2001: Revised room air conditioner standard.

Law of the People’s Republic of China on the Prevention and Control of Atmospheric
Pollution, Article 15-inspections, and Article 27: The competent department concerned under
the State Council shall, pursuant to the standards for boiler discharge of atmospheric
pollutants prescribed by the state, stipulate corresponding requirements in the boiler quality
standards. For more information, visit:
http://www.china.org.cn/english/environment/34422.htm

Heat Reform and Building Energy Efficiency: This $18 million GEF grant was approved in
March 2005 to support improvements in building energy efficiency through demonstrations
of better building designs, improved construction, and new materials, and through new
building codes and standards and their implementation. For more information, visit:
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/C
HINAEXTN/0,,contentMDK:20585167~pagePK:1497618~piPK:217854~theSitePK:318950,
00.html

India
Bureau of Energy Efficiency (BEE) has a mandate to set mandatory performance standards
and to include building design codes.

National Energy Labeling Programme: A categorical (1 to 5 stars) label applied to frost-free
refrigerators and fluorescent tube lights (first voluntary and then mandatory over time). For
more information, visit: http://www.clasponline.org/listnews.php?no=413

Under the Energy Conservation Act of 2001, development of energy performance codes has
been initiated for boilers, compressors, fans, pumps and cooling towers. For more
information, visit: http://www.techno-preneur.net/new-timeis/ScienceTechMag
/april04/energy.htm




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Minimum Energy Performance Standards (MEPS) on freezers, refrigerators, room air
conditioners. For more information, visit:
http://www.clasponline.org/countryinfosummary.php?country=India#National Test Standard

Japan
Act Concerning the Rational Use of Energy: Mandatory report on energy conservation.
Based on the Act Concerning the Rational Use of Energy, building owners are obligated to
make a report on energy conservation measures prior to new construction, extension,
alteration, as well as major repairs or remodeling to local authorities. Instruction to change
could be made by the local authorities in cases where measures are extremely insufficient
according to the standards. Official announcement could also be made when the owner does
not follow the instruction without good reason.

Republic of Korea
There are two main codes that are related to building energy conservation for new buildings:
one is the Building Law managed by the Ministry of Construction and Transportation and the
other is the Energy Efficiency Law managed by the Ministry of Commerce, Industry &
Energy.

Mandatory Standards for Building Insulation & Energy-Efficient Designs, Energy Efficiency
Labeling Program (commercial under construction), and the Green Building Certification
Program.

MOCIE (Ministry of Commerce, Industry and Energy) issues a regulation requiring that
some home appliances be tested and display the “Regulation on Energy Efficiency Labels
and Standards” label to allow consumers to compare energy use.

The companies obligated to undergo inspections are manufacturers of boilers and pressure
vessels (in regard to construction), and the owners or users of such equipment (in regard to
installation, in-service, alteration and relocation inspection). For more information, visit:
http://www.kemco.or.kr/english/sub03_energyaudit02.asp

United States
U.S. DOE provides technical guidance to states on energy standards for new construction,
based on ASHRAE Standard 90 (non-residential) and International Energy Conservation
Code (IECC—residential) standards. States and municipalities adopt and enforce building
energy codes, often following and sometimes exceeding these federal guidelines.

U.S. DOE Building Codes Program and compliance software tools. For more information,
visit: http://www.energycodes.gov/

Presentations at annual national workshops on state building energy codes. For more
information, visit: http://www.energycodes.gov/news/2005_workshop/index.stm

The Building Codes Assistance Project (BCAP) is a non-government organization that
advocates for strong building energy codes and enforcement programs. For more
information, visit: http://www.bcap-energy.org/home.php

The IECC Residential Energy Efficiency Standard publication. For more information, visit:
http://www.iccsafe.org/


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ASHRAE Standard 90.1-2004 for energy efficiency in new buildings. For more information,
visit: http://www.realread.com/prst/pageview/browse.cgi?book=1931862664

The Federal Trade Commission (FTC) issues regulations requiring that some appliances and
equipment be tested and labeled with the “EnergyGuide” label to allow consumers to
compare energy use and costs of different models. For more information, visit:
http://www.ftc.gov/bcp/conline/edcams/eande/contentframe_appliance_guide.html

U.S. DOE is authorized by law to adopt mandatory minimum appliance standards for
specified categories of appliances and building equipment. For more information, visit:
http://www.eere.energy.gov/buildings/appliance_standards/

U.S. DOE contracts with the National Institute of Standards and Technology (NIST) to
develop and update energy test procedures. For more information, visit:
http://www.bfrl.nist.gov/863/heat_transfer_group/appliance.htm

Some states, including California, also adopt their own appliance energy efficiency standards,
but in the case of all products covered by federal standards, a state must first obtain federal
approval from U.S. DOE to adopt a different standard. For more information, visit:
http://www.energy.ca.gov/appliances/index.html

The Appliance Standards Awareness Project is a non-governmental organization advocating
for stronger appliance efficiency standards. For more information, visit:
http://www.standardsasap.org/

New York, California, and other states require regular inspections of many larger boilers for
safety and pollutant emissions, but not (directly) for energy efficiency.

Energy Pricing and Rate Structure
Market mechanisms to encourage energy efficiency depend on the price signals that
consumers see, which include not only price levels (cost-based pricing) but also rate design
and rate structures—for example, time-of-use and real-time pricing, and inverted-block rates.
Other important pricing issues include net metering for on-site power and special incentive
rates or reduced utility connection fees that encourage energy efficiency.

Australia
The Solar Cities program was announced in the Energy White Paper, Securing Australia’s
Energy Future, in June 2004. The program is designed to demonstrate how solar power,
smart meters, energy efficiency and new approaches to electricity pricing can combine to
provide a sustainable energy future in urban locations throughout Australia. It is a
partnership approach that involves all levels of Government, the private sector and the local
community. For more information, visit:
http://www.greenhouse.gov.au/solarcities/index.html

Several smart metering and time-of-use pricing trails are being conducted in Australia
through governments or industry lead initiatives.

China
Information not available.



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India
Bangalore Electricity Supply Corporation: BESCOM Efficient Lighting Program. For more
information, visit: http://www.usaid.gov/in/Pdfs/Draft_DSM%20Guidebook.pdf

Japan
Information not available.

Republic of Korea
Information not available.

United States
Many utilities offer electricity and natural gas tariffs designed to encourage energy efficiency
and reduce waste by business customers and individual consumers.

California, Oregon, Utah, and Washington states have adopted inverted block electricity rates
for residential customers. For more information, visit:
http://www.epa.gov/cleanenergy/pdf/eeap_rates.pdf

Some utilities offer special tariffs or contract with their customers to reduce loads during high
demand periods. A 2004 study by the federal Government Accountability Office (GAO)
identified significant benefits from demand-response. For more information, visit:
http://www.gao.gov/new.items/d04844.pdf

Section 1252 of the Energy Policy Act of 2005 calls on state utility regulators to direct
utilities to install “smart meters,” establish time-of-use electricity tariffs, and consider
implementing demand-response programs. For more information, visit:
http://energycommerce.house.gov/108/energy_pdfs_2.htm

California funded a research program on demand-response. For more information, visit:
http://drrc.lbl.gov/

According to the DSIRE database, Arizona, Colorado, New Mexico, and Texas all offer a
utility rate incentive for new connections in the case of efficient homes. For more
information, visit: http://www.dsireusa.org/ , http://www.progress-
energy.com/custservice/carres/energyhome/index.asp

Technology Development and Demonstration
A wide range of demonstration and technology development programs can encourage the
introduction of energy-efficient technologies in buildings and appliances.

Australia
Energy Research for the Building Code of Australia 2000. For more information, visit:
http://www.greenhouse.gov.au/buildings/publications/pubs/energy_research.pdf

Scoping Study of Minimum Energy Performance Requirements for incorporation into the
Building Code of Australia 1999. For more information, visit:
http://www.greenhouse.gov.au/buildings/publications/pubs/s_study.pdf




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China
Energy Efficient Building Demonstration Project (MOST primary counterpart)—finished:
January 2004. In 1999, DOE and MOST signed a Statement of Work to build an Energy
Efficient Demonstration Building, by which when the Chinese partner built a normal
building, U.S. private firms would provide engineering, materials and technology to bring it
to higher specifications to achieve energy savings of 35%. For more information, visit:
http://www.uscc.gov/hearings/2003hearings/written_testimonies/031030bios/031030cobb.do
e_bilatattachme.htm and http://www.doe.gov/news/1781.htm

India
Confederation of Indian Industries/Green Buildings Centre promotes the building of world
class ‘Green Buildings’, several of which have been built to the US Business Council’s
platinum and gold LEED ratings. For more information, visit:
http://greenbusinesscentre.com/

Japan
Energy conservation building/housing awards.

Exhibition of new building environmental technology.

Field tests of fuel cells for housing.

R&D on sustainable buildings, fuel cell, Comprehensive Assessment System for Building
Environmental Efficiency (CASBEE), etc.

Republic of Korea
Research projects for building energy conservation and expanding new and renewable
systems to buildings have been conducted with the assistance of MOCIE and MOCT.
Research and Development programs include from key technology of building energy
systems to large-scale test bed by short & long term based.

United States
Annual awards are given for federal showcase buildings. For more information, visit:
http://www1.eere.energy.gov/femp/services/awards_fedshowcase.html.

The U.S. Navy’s “TechVal” program evaluates and sometimes tests potential energy-saving
technologies for the military services. For more information, visit: http://techval-
energy.nfesc.navy.mil/

Utilities in California collaborate in assessing new and emerging technologies. For more
information, visit: http://www.ca-etcc.com/

The U.S. DOE/FEMP New Technologies Demonstration Program. For more information,
visit: http://www.eere.energy.gov/femp/technologies/tech_demos.cfm

U.S. DOE Building Technologies program is the principal sponsor of buildings energy
efficiency and renewable energy research in the United States. For more information, visit:
http://www.eere.energy.gov/buildings/tech/index.html




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State government agencies and public universities, including those in New York, California,
Iowa, North Carolina, and Florida, also sponsor applied R&D on energy efficiency in
buildings, and undertake cooperative projects with each other and with U.S. DOE. For more
information, visit: http://www.asertti.org/

NY State Energy Research and Development Authority. For more information, visit:
http://www.nyserda.org/programs/buildng.asp

Building projects certified under the U.S. Green Building Council LEED rating system. For
more information, visit:
http://www.usgbc.org/LEED/Project/CertifiedProjectList.aspx?CMSPageID=247&CategoryI
D=19&

Other
This category of programs includes other activities that do not fit well into the above
categories, or cut across several of them.

Australia
Australia’s Energy White Paper, Securing Australia’s Energy Future, comprehensively
reviews energy policies and approaches, and provides a framework for a sustainable energy
future. For more information, visit:
http://www.dpmc.gov.au/publications/energy_future/index.htm

In August 2004, the Ministerial Council on Energy agreed to Stage 1 of a National
Framework on Energy Efficiency (NFEE) in recognition of the potential environmental and
economic benefits. For more information, visit: http://www.nfee.gov.au/home.jsp?xcid=48

China

The Energy Conservation Law of 1998 highlights end-use energy reduction and standards
and labels programs. For more information, visit:
http://www.unescap.org/esd/energy/publications/compend/ceccpart4chapter4.htm

China Sustainable Energy Program (CSEP) supports China’s policy efforts to increase energy
efficiency and renewable energy through both national policy and regional implementation.
For more information, visit: http://www.efchina.org/home.cfm

China Standard Certification Centre (CSC, formerly CECP) activities include establishing
and developing the certification system for energy conservation, water-saving and
environmental-friendly products; conducting fundamental research regarding energy for
policy making; promoting energy-efficient, water-saving and environmentally friendly
products; and removing the market barriers for energy conservation products. For more
information, visit: http://www.cecp.org.cn/englishhtml/cecp.asp

Alliance to Save Energy’s China Energy Efficiency Industry Partnership (EEIP) works
closely with suppliers of energy-saving equipment and services to educate energy end-users
on energy and money-saving improvements they can make in their facilities. For more
information, visit: http://www.ase.org/content/article/detail/610




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India
The Government of India has set a goal, Mission 2012: Power for All, which includes a
conservation strategy to optimize the utilization of electricity with a focus on demand side
management, load management and technology upgrades to provide energy-efficient
equipment. For more information, visit http://www.indiacore.com/power2.html

Ministry of Non-Conventional Energy Sources: Annual Report 2005–06. For more
information, visit: http://mnes.nic.in/frame.htm?majorprog.htm

From the Ministry of Power: National Energy Conservation Award—2005: Government and
Commercial Sector. For more information, visit:
http://www.energymanagertraining.com/eca2005/Award2005CD/list.htm

Petroleum Conservation Research Association: Mission is efficient energy utilization and
environment protection leading to improvement in quality of life. For more information,
visit: http://www.pcra.org/English/aboutus/default.htm

Japan
Kyoto Protocol Target Achievement Plan. For more information, visit:
http://www.env.go.kp/en/press/2005/0472b.html

Fundamental policies under the Act Concerning the Rational Use of Energy.

Republic of Korea
Rational Energy Utilization Act.

National Energy Efficiency Programs. For more information, visit:
http://www.kemco.or.kr/english/sub03_energyefficiency.asp?defmenu=3

Energy Efficiency Standards & Labeling Program. For more information, visit:
http://www.kemco.or.kr/english/sub03_energyefficiency.asp

Energy-saving Office Equipment & Home Electronics Program. For more information, visit:
http://www.kemco.or.kr/english/sub03_energyefficiency02.asp

The High-efficiency Equipments Certification Program. For more information, visit:
http://www.kemco.or.kr/english/sub03_energyefficiency03.asp

The guideline to install renewable energy equipments (MOCIE’s Notification 2006-9).

The regulation of the development of energy and resource technology (MOCIE’s Notification
2005-92).

The guideline on electricity prices from using renewable energy (MOCIE’s Notification
2004-104).

The guideline on trading of power generation from small renewable energy (MOCIE’s
Notification 2005-14).

The regulation of the certified renewable energy equipments (MOCIE’s Notification 2005-
134).


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The Voluntary Agreement: The Ministry of Commerce, Industry and Energy and the Ministry
of Environment manage a joint program between the government and industry. A company
that intends to join the agreement should submit a concrete action plan within three months
after submitting to KEMCO a letter of intent specifying energy consumption and greenhouse
gas emission reduction target.

The main areas that ESCOs cover include energy-efficient facility investment, maintenance
services for such facilities, and energy management monitoring. ESCOs invest in energy
utilizing facilities on behalf of the energy user if the user is unable to replace or improve
existing facilities due to technical or financial problems.

United States
President Bush—Greenhouse Gas intensity goals (2002): For more information, visit:
http://www.whitehouse.gov/ceq/global-change.html,
http://www.whitehouse.gov/news/releases/2002/02/20020214.html

U.S. DOE’s “Projected Benefits of Federal Energy Efficiency and Renewable Energy
Programs” (3/2006). For more information, visit:
http://www1.eere.energy.gov/ba/pdfs/39684_app_G.pdf

National Energy Policy (5/2001). For more information, visit:
http://www.energy.gov/about/nationalenergypolicy.htm2)

Energy Policy Act of 2005 (EPACT). For more information, visit:
http://energycommerce.house.gov/108/energy_pdfs_2.htm)

U.S. DOE Efficiency/Renewables Strategic Plan (2002). For more information, visit:
http://www1.eere.energy.gov/office_eere/pdfs/fy02_strategic_plan.pdf

U.S. DOE Buildings Program Strategic Plan (1998). For more information, visit:
http://www.eere.energy.gov/buildings/info/documents/pdfs/25096a.pdf

U.S. Dept. of Housing/Urban Development. (HUD) Energy Action Plan. For more
information, visit: http://www.hud.gov/energy/energyactionplan.pdf

Energy Star Plan. For more information, visit:
http://www.energystar.gov/ia/news/downloads/annual_report2004.pdf




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Appendix E: Related Initiatives by Regional Organizations
A number of existing regional and multinational activities and organizations are working to
improve energy efficiency in the buildings sector. This section includes a partial listing, with
additional entries and updates to be incorporated in the future.

AIT (Asian Institute of Technology)
Since 1979, the Asian Institute of Technology (AIT) in Thailand has been engaged in training
energy specialists in response to regional needs for developing capability for efficient
development and management of the energy sector. The focus of energy studies at AIT is on
energy and the environment, renewable energy and energy efficiency, energy systems (supply
and demand) management, energy economics and planning, and restructuring of energy
industries.

In October 2005 AIT successfully launched, through the School of Environment, Resources
and Development (AIT’s largest school), the project “Energy Code for New Buildings,”
which is to be concluded in December of 2006. This project aims to develop requirements on
efficiency of hot water generation and absorption chillers and to incorporate the results in
whole building energy compliance in the Building Energy Code. The project also aims to
develop procedures and tools, which include a computer code, to assist in the implementation
of the Building Energy Code on large buildings on a mandatory basis. For more information,
visit: http://www.ait.ac.th/, http://www.serd.ait.ac.th/ep/projects.htm

APEC – EWG EGEE&C (Experts Group on Energy Efficiency &
Conservation)
For more than a decade, the Experts Group for Energy Efficiency & Conservation
(EGEE&C), which was created by the Working Group (EWG) of APEC (Asia-Pacific
Economic Cooperation), has organized cooperative policy studies, workshops, and pilot
programs including a major focus on energy-efficiency standards and labeling (S&L)
harmonization. The EGEE&C promotes energy conservation and the application of energy-
efficient practices and technologies through advancing the application of demonstrated
energy-efficiency practices and technologies, and developing and enhancing trade between
APEC economies in products and services and energy-efficient practices and technologies. It
contributes to international efforts to reduce the adverse impacts of energy production and
consumption, and improve the analytical, technical, operational, and policy capacity for
energy efficiency and conservation within APEC economies. In April 2005, EGEE&C, along
with the City of Melbourne, organized the Rise of Green Building Workshop. Focusing on
the commercial office building sector, the workshop took a new approach to promoting the
uptake of energy-efficient and environmentally sustainable technologies and practices. For
more information, visit: http://www.egeec.apec.org/

CLASP (Collaborative Labeling and Appliance Standards Program)
CLASP was formed in 1999 as a partnership devoted to advancing the extent and quality of
energy efficiency standards and labeling in developing countries. Since then it has evolved
into a globally oriented, globally governed non-profit corporation. Recently, CLASP has
provided major assistance to S&L programs in China and India; played a key role in the
development of a UNDP-GEF global initiative in regional S&L; and partnered with APEC in
creating a website for global information on S&L. In each participating country, project


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results include enhanced institutional capacity for implementing standards and labeling
programs, increased production of energy-efficient products by manufacturers, improved
average energy efficiency of appliances and equipment, significant reductions in electricity
consumption, and lower energy-related emissions of greenhouse gases and other pollutants.
In 2005 CLASP developed a survey instrument to help practitioners of S&L collect the home
and business energy use necessary to design effective S&L programs. For more information,
visit: http://www.clasponline.org/

APERC (Asia Pacific Energy Research Center)
Established in July 1996 in Tokyo, APERC’s main function is to conduct energy research and
to foster understanding among APEC economies of global, regional and domestic energy
demand and supply trends, energy infrastructure, energy development, energy regulatory
reform and related policy issues in view of the regional prosperity. The Center advocates
rational energy policy formulation and enhances capacity building in energy research in the
region, following the APEC’s Non-binding Energy Policy Principles for furthering energy
security, economic growth, and environmental quality in an effort to implement their vision
of international cooperation. In 2006 APERC published its second APEC Energy Demand
and Supply Outlook. This document has been regularly reviewed and updated as the major
pillar of APERC’s work. For more information, visit: http://www.ieej.or.jp/aperc/index.html

APEC-ESIS (Energy Standards Information System)
The ESIS project team is an international consortium that provides up-to-date information
about appliance and equipment energy testing and standards and labeling, as well as an online
forum for discussing topics of interest to professionals working in this area. In 2004, APEC
partnered with CLASP and, more recently, with the Renewable Energy and Energy
Efficiency Partnership (REEEP) to expand its web-based Energy Standards Information
System (ESIS) beyond the APEC economies. APEC-ESIS includes a Standards Notification
Procedure for informing energy policy officials, manufacturers, and other interested parties
about new energy standards and regulations being developed or revised in APEC economies.
The joint ESIS-CLASP database has information on over 1,700 standards and also provides
contact information on personnel involved in S&L among the 17 participating APEC
economies, What’s New information, useful data called Quick Facts, a library of publications,
a site for benchmarking studies, and portals for communities of practice to exchange
information. For more information, visit: http://www.apec-esis.org

GEF (Global Environment Facility)
The Global Environment Facility (GEF), established in 1991, helps developing countries
fund projects and programs that protect the global environment. Projects addressing climate
change—those that reduce or avoid greenhouse gas emissions in the areas of renewable
energy, energy efficiency, and sustainable transport— make up the largest group of GEF-
funded projects.

The GEF has supported a number of projects in Partners related to improving the efficiency
of buildings and appliances. For example, the China Barrier Removal for Efficient Lighting
Products and Systems project seeks to reduce lighting energy use in China in 2010 by 10%
relative to a constant efficiency scenario; the China Utility-Based Energy Efficiency Finance
Program (CHUEE) aims to organize and provide marketing, development and financing
services to residential, commercial, and industrial sector energy users to implement energy
efficiency (EE) equipment installations; and the End Use Energy Efficiency project supports


                                                                                          130
the Chinese government’s program to boost energy efficiency in the industrial and building
sectors. There is also the Market Transformation through Consumer Awareness Programs for
Energy Efficiency Standards and Labeling project, whose objective will be the removal of the
existing barriers to the massive utilization of energy-efficient refrigeration products in India
(final approval pending). For more information, visit: http://www.gefweb.org

WBG (World Bank Group)
As one of the biggest promoters of renewable energy and energy efficiency projects in the
world, (financing about $9 billion in these projects), the WBG has made it a priority to help
developing countries with their energy needs while cushioning the environmental impact of
such growth. At the International Conference for Renewable Energies in Bonn in June 2004,
the WBG announced that it would commit to an average growth rate of 20 percent per year
over the next five years in its annual financial commitments for renewable energy and energy
efficiency projects. In addition, the WBG supports the Energy Sector Management
Assistance Programme (ESMAP); a global technical assistance program provides policy
advice on sustainable energy development to governments of developing countries and
economies in transition and contributes to the transfer of technology and knowledge in
energy sector management. The WBG also sponsors an annual international Energy Week
conference and other meetings. For more information, visit:
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTENERGY/0,,menuPK:33681
2~pagePK:149018~piPK:149093~theSitePK:336806,00.html

ADB (Asian Development Bank)
Through its Energy Policy, ADB is committed to promoting ways to increase access to clean
and affordable energy in its developing member countries. ADB promotes the development
of clean energy resources and supporting measures for cost-effective renewable energy and
energy efficiency technologies. As part of its commitment to clean energy, ADB has
established the Renewable Energy, Energy Efficiency and Climate Change (REACH)
Program to support capacity building, institutional development, and project development
activities. Another concrete effort to support clean energy and climate change mitigation is
the Carbon Market Initiative (CMI), a proposed co-financing facility that would provide up-
front funds as well as marketing and brokerage support to developers and sponsors of projects
with carbon credit content. For more information, visit: http://www.adb.org/

REEEP (Renewable Energy & Energy Efficiency Partnership)
Launched at the Johannesburg World Summit on Sustainable Development in August 2002,
REEEP is a public–private partnership that aims to accelerate the marketplace for renewable
energy and energy efficiency. REEEP focuses on the promotion of low-energy consumption
technology in the construction sector, as well as the investigation of current low-energy
buildings and the strategies used to reduce residential and commercial energy consumption.
In March 2006, REEEP’s Finance Committee approved the selection of 32 new projects for
funding. The current projects aim to increase attention to Africa (e.g. Liberia and Tunisia)
and towards the development of national policy frameworks to support marketplace
development of renewables and energy efficiency of buildings in China, Guatemala, Mexico,
and South Africa. Their existing 18 projects, centered on similar energy efficiency issues in
buildings, are still under way and due for completion in 2006. For more information, visit:
http://www.reeep.org/




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TERI (The Energy and Resources Institute)
Formally established in 1974, TERI—based in Delhi but with activities throughout Asia—
places great emphasis on the efficient utilization of energy, sustainable use of natural
resources, large-scale adoption of renewable energy technologies, and reduction of all forms
of waste as drivers of toward sustainable development. All activities in TERI move from
formulating local and national-level strategies to suggesting global solutions to critical energy
and environment-related issues. As a result of local to global initiatives, in April 2006 TERI,
in coordination with the Department of Power and the Government of National Capital
Territory of Delhi, organized a workshop outlining key measures for energy efficiency and
conservation programs in residential, commercial, and institutional buildings, as well as new
construction to improve the nation’s power supply. For more information, visit:
http://www.teriin.org/




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