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					PEPS: Promoting an Energy-
  efficient Public Sector
       OVERVIEW
           CSD-14
          May 4, 2006
       Laura Van Wie McGrory
       Edgar Villaseñor Franco
            Philip Coleman
           OUTLINE


1) Why focus on the public sector?
2) PEPS partnership – goals, strategy
   & current projects
3) PEPS: Future directions
        Why the Public Sector?
1) Save energy, money, pollution and carbon
   – Large, cost-effective savings potential (>20%)
   – Historically low energy prices
2) Policy credibility
3) Market presence
   – Government is a large % of GDP
   – Biggest energy user
   – Biggest buyer of energy-using products
4) Market leadership (influence buyers & sellers)
   – Entry point for new technology
   – Implied endorsement
   – Example for others
5) Support Agenda 21 and Johannesburg Plan of
   Implementation principles
   – Integrate energy efficiency into policies, planning, and O&M of
      . . . public sector.
Government:10-20% of GDP

                                  60
Government Spending as % of GDP


                                  50

                                  40

                                           Malaysia                          Australia
                                  30
                                                      New Zealand
                                                Mexico
                                  20

                                                          So. Korea                       US
                                  10
                                                 Thailand
                                            China, Philippines, Russia                               Japan
                                  0
                                       0              10000              20000           30000               40000
                                                                                         Source: World Bank 2002
                                                              Per Capita GDP (US$)
                          Government Leadership
Number of Units
                          Transforms the Market




                  Efficiency
                                                      “Market pull”:
                  standards
                                                   Information, Rebates,
                                                       Public Sector
                                                        Leadership
                               Original Distribution
                                                                      RD&D
                                          New Distribution

                                                             Efficiency
                Building Blocks of
            Public Sector EE Program




Building           Building     Tracking
Retrofits        Benchmarks     Savings

  New Public         Energy-Efficient
   Buildings           Purchasing

                     Product
                                 Infrastructure: Life-Cycle
                    Testing &
                                 Street Lighting Cost Criteria
                     Labels
             Capable, Trained, & Motivated Staff!
               PEPS Partnership
• PEPS Partners
  –   Lawrence Berkeley National Laboratory
  –   ICLEI - Local Governments for Sustainability
  –   Alliance to Save Energy
  –   IIEC
  –   In-country partners: CSC (China), CONAE (Mexico)

• PEPS Goals
  – Help government agencies achieve direct energy and cost
    savings, with societal benefits (pollution prevention,
    reduced pressure on energy supply systems).

  – Mobilize public buying power and leadership to move the
    market toward energy-efficient products and services.
            PEPS Strategy

• Information and Decision Tools
  — Energy savings estimation software (EST)
  — Guidebook
  — Website

• Technical Assistance to Governments
  — Mexico
  — China
  — India
  — South Africa
  — APEC Economies
            Program Categories


1)   Policies and targets
2)   Public buildings (existing, new)
3)   Energy-efficient government procurement
4)   Public infrastructure: efficiency,
     renewable energy
     – Water/wastewater, transit, fleets, roads, public
       lighting and other public services
5) Information, training, incentives, and
   recognition
             PEPS Information
             and Decision Tools
• EST (Energy Savings Tool)
  – Spreadsheet application to estimate savings from
  E-E purchasing
  – Translated into Spanish and Chinese
  – Mexico: Municipalities trained in use of tool to
  estimate energy, cost, and pollution savings
  – China: Used to estimate savings from government
  purchasing of office equipment, lighting, and TVs
• Guidebook – Leading the Way: A Guide to
Efficient Energy Use in the Public Sector
  – Peer review – Spring, 2006
  – Expected publication – Summer, 2006
• Website: www.pepsonline.org
Guidebook and EST




             PEPS Energy Savings Tool
                    (version 1.0)
Website: www.pepsonline.org
                     PEPS in Mexico
• Municipal Purchasing Project:
   –   USAID funded
   –   Builds on ICLEI‟s Cities for Climate Protection (CCP) network
   –   Eight cities participated in pilot
   –   Purchasing guidelines and technical specifications
        • office equipment, interior lighting, public street lighting
   – Regulations (Normas) drafted for each municipality
   – Three training workshops

• Initial Results (through 2005):
   – Energy-efficient procurements by four cities
   – Estimated annual savings in the four cities:
        • 5,000+ MWh
        • $726,000
        • 3,295 metric tons of CO2e
           PEPS in Mexico: Next Steps

• Expand training to at least 15 new cities in 2006
   – Create critical mass of experience to help mainstream EE
     considerations within municipal procurement processes
   – Promote sharing of experiences among cities
   – Emphasis on targeted workshops, web tools, telephone, email
   – Two small grants awarded to municipalities to assist with
     purchase of energy-efficient products
• Include additional products
   – e.g., motors, refrigerators, air conditioners, pumping systems
• Extend program to federal government
   – leverage relationship between PEPS and CONAE (PEPS staff
     member housed at CONAE)
• Outreach to Latin American region
          Lessons Learned (1)

• Key mistake: Overly ambitious beginning
  – Tried to replicate and expand on mature U.S.
    federal purchasing program in short time frame.
  – Counted on resources at federal level, without
    proving concept first.
  – Focused just on technical tools, rather than
    reinforcing tool applications through conducting
    actual procurements to show results.

     Initial foray with Mexican federal government
      was unsuccessful; had to be abandoned when
      key collaborators left agency and critical mass
      had not yet been reached.
          Lessons Learned (2)

• Start small, get foothold
  – Started municipal effort with just eight
    municipalities and eight products.
  – Launched program within one year, gaining
    confidence of cities and developing momentum for
    expansion.
  – Focused on getting tangible results at a pilot level
    to allow for stronger expansion and improved
    government buy-in.
  – Success at municipal level has resulted in renewed
    interest (and resources) at federal level.
                PEPS in China
                               • Partners:
                                  – CSC (China
                                    Standardization Center,
                                    formerly CECP)
                                  – National Development
                                    Reform Commission
                                  – Ministry of Finance
                               • Co-sponsors: Energy
                                 Foundation, US EPA
• Goals:
– Develop and implement mandatory policy for energy-
  efficient government purchasing
– Support expanded public sector efficiency initiative
   (―short-listed‖ in study for next National Energy Plan)
        PEPS in China (Cont’d.)

• Government Procurement Project:
  – Energy-efficient government procurement to
    complement recently adopted testing and labeling
  – International workshop, Beijing (Sept. 2003)
  – Procurement Policy Issued (Dec. 15, 2004)
• Expanded Public Sector E-E Initiative:
  – International Symposium, Kunming (Aug. 2004)
  – China-US Study Tour (Nov. 2004) as groundwork
    for broader public sector initiatives (2005+)
  – Public sector energy efficiency on ―short list‖ in
    study for next National Energy Plan
   PEPS in China: Next Steps

• Aid CSC in implementation of procurement
  policy
• Expand program to new products
  – Help with product selection, specs development
• Tracking and feedback
• Harmonize procurement specs with other
  APEC economies
  – Initial focus: Japan, South Korea
• Help expand the policy agenda for public
  sector energy efficiency
      Lessons Learned (1)

• Factors contributing to the rapid
  adoption of the new Procurement Law:
  – An enabling policy in place
  – Existing structures on which to build
  – Immediate need (energy crisis)
  – Existence of a nationally authorized energy
    efficiency labeling program
  – A simple beginning
  – High-level political endorsement
         Lessons Learned (2)


• The rapid adoption of the Procurement
  Law came with several tradeoffs:
  – Low level of authority
  – Insufficient training
  – Insufficient information materials
       PEPS in India: Maharashtra

•   Funded by USAID Mission and USEPA
•   Began February, 2005
•   Goal: Long-term strategy for public building EE
•   Activities:
    – Pilot procurement for energy-efficient lighting
    – Standard scope and format for building energy audits
    – Standardize building energy use data collection for
      benchmarking
    – Case studies of exemplary projects
    – Technical assistance in identifying and implementing pilot
      retrofit projects
    – Training materials for professionals supporting energy
      efficiency in public buildings
     PEPS in India: Next Steps
• Follow-on Work with Maharashtra Public
  Works Dept: Expansion of EPA/AID Work and
  Proposal to Renewable Energy and Energy
  Efficiency Partnership (REEEP):
  – Create energy management screening toolkit:
     • knowledge-based model for more efficient energy auditing
     • performance-based framework to implement O&M measures
  – Train building managers and energy auditors in
    use of toolkit
  – Develop briefings for executives on positive
    benefits of timely intervention
  – Pilot-test application of toolkit in 2–4 commercial
    buildings
         PEPS in South Africa

• Activities to Date
  – Energy in Cities Conference; federal workshop (2003)
  – ICLEI municipal energy-efficiency pilot project -
    Ekurhuleni (2005)
       PEPS in APEC Economies

• Activities to Date
  – International Symposium on Government Sector Energy
   Management (Kunming, China, 8/04); proceedings
   posted on ESIS Web site
  – Scoping study for APEC procurement harmonization

• Next Steps (proposed projects)
  – ―Government Sector Energy Management Best
     Practices (GEMP)‖
  – ―Information Sharing on Financing Public Sector
     Energy Efficiency and Renewable Energy Projects‖
  PEPS: Future Directions

• Project follow-through:
  – China, Mexico, India, South Africa

• New opportunities:
  – Regional initiative in Latin America
  – Regional initiative in APEC region
• New sponsors (“base” funding)
• Expand partner base
  – Europe/OECD/G8 involvement
  – WSSD Partnership (9/05+)
    Future Directions (Cont’d.)

•   Expand/update tools
    –   Disseminate PEPS Guide
    –   Building benchmarking
    –   Project finance toolkit

•   Capacity building
    –   Working exchange visits
    –   Harmonize government purchasing criteria
    –   International “Standards of Practice”
               Putting Public Sector
           Energy Efficiency on the Map

                                EU Purchasing
                                  (PROST)
                                                  ICLEI
                                                Workshop
                                                 APEC,
                                                Kunming         Beijing
           US Study Tours ECEEE                                  2003
                          „97,‟05                            China
                                       Kuwait
                                                             Procurement
Mexico
                                                           India Public
Procure-
                                                              Bldgs.
ment
                                                 Kerala
      Procurement
                                                Workshop
       Workshops
                                Capetown
                                Energy Cities
                                Conf.

				
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