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 Per Capita GDP (US$) Government Spending as % of GDP Source: World Bank 2002 US Japan So. Korea Mexico Australia New Zealand Thailand Malaysia China, Philippines, Russia

RD&D Government Leadership Transforms the Market Original Distribution Efficiency Number of Units New Distribution “Market pull”: Information, Rebates, Public Sector Leadership Efficiency standards

Building Blocks of Public Sector EE Program New Public Buildings Operations & Maintenance Energy-Efficient Purchasing Tracking Savings Building Benchmarks Product Testing & Labels Goals & Targets Infrastructure: Street Lighting Infrastructure: Water Systems Life-Cycle Cost Criteria Recognition, Retained Savings Capable, Trained, & Motivated Staff! Building Retrofits

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:

Guidebook and EST PEPS Energy Savings Tool (version 1.0)

Website:

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 CO 2 e

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