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Review of the Commercial Building Disclosure Program

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Presentation on theme: "Review of the Commercial Building Disclosure Program"— Presentation transcript:

1 Review of the Commercial Building Disclosure Program
Stakeholder forum 22 February 2019 Presented by Phil Manners and Hayden Fisher Presented for the Department of the Environment and Energy

2 Outline Overview of CBD Program About the review
Context Scope General approach Review of current CBD Program Assessment of expansion options

3 Overview of the CBD Program
Mandatory disclosure of energy performance Applies to office space >1000m2 Sale or lease Must obtain a building energy efficiency certificate (BEEC) that discloses NABERS rating Tenancy Lighting Assessment Must be disclosed in all advertising material

4 The evolution of the CBD Program

5 Context and scope for review
Measure 9 of the National Energy Productivity Plan workplan focuses on the potential to expand commercial building ratings and disclosure, including a review of the CBD Program Ex-post review of the current CBD Program will focus on what lessons can be learned and whether they can be applied to other industries Proposed expansion of the Program will focus on: office tenancies; shopping centres; hotels; and data centres

6 Energy use of non-residential buildings
Source: pitt&sherry 2012, Baseline energy consumption and greenhouse gas emissions in commercial buildings in Australia; CIE analysis of CBD dataset.

7 General approach Qualitative elements Quantitative elements
Do the objectives remain relevant? Is the information disclosed under the CBD Program useful to stakeholders? Quantitative elements Cost-benefit analysis (CBA) of the current CBD Program, including the recent changes CBA of potential expansion to: Office tenancies Shopping centres Hotels Data centres

8 Costs and benefits of the CBD program
Costs of procuring BEECs for building owners, and administrative costs for building owners Reduced energy costs (Lower costs across energy supply chain covering generation, distribution, transmission and retail, which can be proxied by lower bills for commercial buildings) Administrative costs for Government Reduced costs from GHG emissions or other forms of air pollution from producing energy Negative changes in amenity of building from changes to improve energy efficiency Positive changes in amenity of building from changes to improve energy efficiency, such as improved comfort and health outcomes Cost of making changes to building to improve energy efficiency

9 Share of BEECs achieving different star ratings

10 Average energy use and average star rating

11 Improvement in rating over time

12 Change in energy use from different initial ratings

13 Energy use and different building sizes

14 Preliminary findings from the data
Largest changes are for the initially poorest performing buildings The more BEECS a building has had the higher the change in energy use Star ratings highest for larger buildings buildings with longer hours of occupancy Changes to incorporate smaller buildings likely to be having a larger relative impact

15 Information gaps Attribution Costs
To what extent can we attribute the observed improvements in energy performance to the CBD Program? Would they have occurred without the CBD Program? Costs How have the improvements in energy performance been achieved? Refurbishments/replacement of equipment Operational changes What were the associated costs?

16 Uses of disclosed information
Who are the main users of the NABERS rating/TLA? Building managers Investors/buyers Tenants Others? Is the information useful? How is the NABERS rating/TLA used?

17 How was energy performance improved?
What approaches did building owners/managers use to improve energy performance? Operational changes? Lighting upgrades? Refurbishment/replacement of major equipment? Survey of building owners/managers to gather statistical information on: which measures were used most frequently associated costs

18 Other issues with the existing program
Are there areas where existing program could be improved?

19 Potential expansion of the CBD Program
Hotels Shopping centres Data centres Office tenancies Any others?

20 Potential expansion of CBD
Transferability of impacts to other building types/industries Are the impacts due to specific characteristics of the office market? What are they? Do the building types have those characteristics? What aspects of the CBD Program encouraged participants to improve performance? Obtaining a NABERS rating Disclosure of the NABERS rating What was the underlying motivation for improving energy performance?

21 Possible expansion areas

22 Potential expansion of CBD Program
Scope for improvements in energy performance Effectiveness of mandatory disclosure in other markets/industries Design elements

23 Scope for improvements in energy performance
How can these buildings improve their energy performance? What are the challenges in these sectors? Why aren’t they doing it anyway?

24 Would mandatory disclosure be useful?
Who would use the information? Building managers Buyers/investors/tenants Clients/customers Other? How useful is benchmarking information for these stakeholders? How would the disclosed information be used?

25 Design elements What thresholds should apply? Trigger for a BEEC
Based on floor space? Any other options? Are there any natural thresholds that apply in the industry? Trigger for a BEEC Sale/lease? Periodic? How frequently?

26 Design elements What information should be disclosed?
What information is already disclosed? NABERS rating? Other options? Disclosure requirements Buyers/tenants Customers/clients Building foyer

27 Timing and opportunities for comment

28 Phil Manners Director | Hayden Fisher Associate Director |


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