Policy summary

The Energy Efficiency in Government Operations (EEGO) policy forms part of the Australian Government's climate change strategy. Its purpose is to reduce the energy consumption of Australian Government operations with particular emphasis on building energy efficiency.

The EEGO policy is administered by the Department of Climate Change and Energy Efficiency (DCCEE).

This document summarises the background and key features of the EEGO policy.

1. Background

The EEGO policy was announced by the Australian Government on 6 September 2006. The policy aims to progressively improve overall Australian Government energy performance by establishing energy efficiency targets for Government agency office buildings, including those relating to tenant use, and a commitment to the development of similar targets for other Government buildings. Energy efficiency improvements in Government office buildings are committed to by both building owners and Government tenants through the use of Green Lease Schedules (GLS). The Energy Use in the Australian Government's Operations report provides a detailed breakdown and analysis of annual energy use in Government operations and gives an indication of the overall effectiveness of the policy. The report ensures that agencies are aware of how much energy they use and the relative efficiency of their energy use.

2. Office buildings

2.1 Energy intensity targets

A key objective of the EEGO policy is for Government office buildings in each portfolio to achieve the following energy intensity targets by June 2011:

  • 7,500 MJ/person per annum for tenant light and power
  • 400 MJ/m2 annum for central services

2.2 Minimum energy performance standards

As a strategy for achieving the above targets, the EEGO policy contains minimum energy performance standards for Government office buildings. The standards are designed to ensure that departments and agencies progressively improve their energy performance and meet the revised energy intensity targets through the procurement and ongoing management of energy efficient office buildings and appliances.

The standards vary depending upon the tenanted area and are summarised in Table 1.

Table 1 - Minimum energy performance standards for government office buildings

Element 		Net lettable area
≥ 2000 m2 < 2000 m2
100% of total building area 50% to 99% of total building area < 50% of total building area
Base building ≥ 4.5 stars NABERS Energy, or equivalent, level of energy efficiency for whole building ≥ 4.5 stars NABERS Energy, or equivalent, level of energy efficiency No requirement No requirement
Tenanted area ≥ 4.5 stars NABERS Energy, or equivalent, level of energy efficiency ≥ 4.5 stars NABERS Energy, or equivalent, level of energy efficiency Separate digital metering and max
8 W/m2 for lighting
Lease To include a Green Lease Schedule No Requirement
Appliances US EPA 'Energy Star' compliant* with power management features enabled at the time of supply

* Where available, fit for purpose and cost-effective.

The minimum energy performance standards apply to Government office buildings that-

  • are new; or
  • have undergone major refurbishment affecting ≥ 2000 m2; or
  • are subject to a new lease (or MOU where the building is Government owned) of greater than 2 years duration, including options.

Note: In terms of major refurbishments, compliance with the minimum energy performance standards is only necessary where the refurbishment involves elements that affect the energy efficiency of the building.

2.3 NABERS Energy Rating

The National Australian Built Environment Rating System (NABERS) scheme is used by the EEGO policy as a methodology for measuring the ongoing level of energy efficiency of office buildings. Under the NABERS scheme, actual energy data is used to measure and rate the building's performance on an annual basis.

The NABERS scheme also considers the source of energy in determining the applicable star rating. It is important to note, however, that the EEGO policy does not allow any credit to be obtained from the use of GreenPower.

The EEGO policy allows the use of alternative schemes for measuring the level of energy efficiency where it can be demonstrated that the alternative will achieve an equivalent outcome.

2.4 Green Lease Schedules

Green Lease Schedules (GLSs) are intended to form part of lease documentation (or MOUs where the Government owns the building). They are designed to ensure that buildings are operated at the required level of energy efficiency and cover five essential elements:

  1. A mutual obligation between the building owner and tenant to achieve and maintain the agreed NABERS Energy, or equivalent, level of energy efficiency (to be validated annually by an independent assessor).
  2. Separate digital on-market status metering for tenanted areas and central services, as applicable.
  3. Development of an Energy Management Plan (EMP) outlining minimum procedures required to maintain the relevant performance standard.
  4. Establishment of a Building Management Committee (comprising building owner and tenant representatives) responsible for reviewing energy data on at least a quarterly basis and implementing the EMP.
  5. Remedial action/dispute resolution processes.

To assist in the implementation of GLSs, DCCEE has produced a number of standard templates that account for different types of leases (gross or net) and the proportion of the building that is tenanted. The GLS templates also contain optional clauses covering water conservation, waste management and other issues for those agencies who wish to capture broader building sustainability issues in their leases.

Standard EMP templates have also been produced by DCCEE. The GLS and EMP templates can be downloaded from the Department's website: www.greenhouse.gov.au/government.

2.5 Exceptions

The EEGO policy provides some flexibility in situations where it is too difficult for a particular office building to achieve 4.5 stars NABERS Energy rating. A lower NABERS Energy rating may be endorsed by DCCEE where it is clearly demonstrated that it is not practical or cost-effective to achieve 4.5 stars NABERS Energy rating due to factors such as location, heritage, security or operational constraints. In such instances, DCCEE requires documentation to support the exception, demonstrating that sufficient market testing has been carried out and that the highest possible NABERS Energy rating will be achieved.

2.6 Existing buildings

For existing office buildings, where major refurbishment or lease renewals are not planned, agencies are encouraged to obtain an NABERS Energy rating, or equivalent, and develop an EMP. This will further assist agencies in achieving their energy intensity targets.

3. Annual energy reporting

EEGO policy requires each agency to report its energy consumption against core performance indicators. The reporting requirements aim to ensure that agencies are aware of how much energy they use and the relative efficiency of their energy use.

Agency energy data is to be supplied to DCCEE by the last working day of October each year. The data is required to be accompanied by a report from each agency, which explains any variations from the previous year and any inconsistencies with the policy requirements for office buildings.

The secretaries of departments and heads of relevant agencies are required to report the energy performance of their operations to their respective ministers annually. As a minimum, this report should include the energy consumption of the previous financial year and the department's or agency's progress towards achieving the policy's energy intensity targets for office buildings.

DCCEE consolidates the energy data and reports from all agencies into one report, Energy Use in the Australian Government's Operations. The consolidated report is tabled in Parliament each year.

4. Department of Defence

The EEGO policy contains unique provisions for the Department of Defence because it accounts for approximately half of the energy used by Australian Government operations.

The policy required Defence to develop a comprehensive energy management strategy by the end of 2006. This strategy included the establishment of a pilot metering, monitoring and management program for a selection of large Defence bases.

The energy management strategy was reviewed in 2008 and a progress report on the pilot study provided to the Government. This included recommendations for the implementation of a refined metering, monitoring and management program on bases responsible for approximately 80 per cent of Defence's energy consumption.

The EEGO policy also requires sub-meters to be progressively installed at all relevant Defence bases. This will ensure that energy performance reporting by 2011 is carried out against specific end-use categories, rather than the current single 'Defence establishments' category.

5. DCCEE's roles and resposibilities

DCCEE has overall responsibility for the administration of the EEGO policy. This includes the following activities:

5.1 Communication and policy management

  • Raising awareness about the policy and agencies' responsibilities.
  • Delivering a comprehensive education program to build the capacity of agencies and other stakeholders to implement the policy. This includes the provision of technical advice and support tools such as GLS and EMP templates, and compliance fact sheets.
  • Providing training and guidance on the development of agency-specific voluntary improvement plans for existing office buildings.
  • Encouraging the installation and use of more accurate metering in order to improve agencies' energy management practices and reporting.
  • Alerting agencies to the importance of good energy management, including the benefits of tariff reviews, load management and the hidden costs of poor energy management.
  • Providing advice to the Joint Standing Parliamentary Public Works Committee on the compliance of proposed new buildings and major refurbishments with the EEGO policy.

5.2 Policy reporting, development and review

  • Collating and analysing agency energy data and tabling a whole-of-government energy report in Parliament by the last day of April each year.
  • Chairing the EEGO Inter-Departmental Committee and joint working groups, who have a consultative role in the implementation and further development of the policy.
  • Developing recommendations on specific energy targets and strategies for Government operated laboratories, public buildings and computer centres by June 2008.
  • Developing recommendations on revised vehicle efficiency targets and appliance procurement procedures by June 2008.
  • Commissioning independent mid-term and end-of-term policy reviews.

6. Terminology

The following terminology applies to the EEGO policy:

NABERS Energy Rating means the star rating of an office building's energy performance determined in accordance with the National Australian Built Environment Rating System

Base building means the structure (walls, floors and roofs) and central services in a building.

Central services means the building services provided to all tenants including building air-conditioning, lifts, security and common area lighting, domestic hot water, etc.

Energy intensity means the average energy consumption of the buildings across a whole department or agency, taking into account the number of staff or floor area served.

Gross lease means a lease in which the tenant simply pays for the tenanted area of the building and the tenant light and power. The lessor (or building owner) pays the costs associated with the operation of the building including the operation of the central services and building maintenance.

Major refurbishment means any refurbishment, renovation, or restoration that impacts on a floor area of not less than 2000 m2 and affects at least half of the base building or at least half of the tenanted area (e.g. office layout, lighting, switching, floor and window dressing, appliances and equipment, etc).

Net lease means a lease in which the tenant pays for a proportion of the costs associated with the operation of the central services in addition to the tenanted area of the building and the tenant light and power.

Net lettable area means the floor area of the tenanted area measured within the enclosing walls.

Tenant light and power means the energy used within the tenanted area of a building for lighting, office equipment, supplementary air-conditioners, boiling water units, etc.