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

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

Government Spending as % of GDP



                                           Malaysia                          Australia
                                                      New Zealand

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

                                                      “Market pull”:
                                                   Information, Rebates,
                                                       Public Sector
                               Original Distribution
                                          New Distribution

                Building Blocks of
            Public Sector EE Program

Building           Building     Tracking
Retrofits        Benchmarks     Savings

  New Public         Energy-Efficient
   Buildings           Purchasing

                                 Infrastructure: Life-Cycle
                    Testing &
                                 Street Lighting Cost Criteria
             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
             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
  – 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
• 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
    – 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
         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
                                                Kunming         Beijing
           US Study Tours ECEEE                                  2003
                          „97,‟05                            China
                                                           India Public
                                Energy Cities