PEPS Promoting an Energyefficient Public Sector OVERVIEW CSD14

PEPS: Promoting an Energyefficient Public Sector OVERVIEW CSD-14 May 4, 2006 Laura Van Wie Mc. Grory 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 Spending as % of GDP Government: 10 -20% of GDP 60 50 40 Malaysia 30 Australia New Zealand Mexico 20 So. Korea 10 US Thailand China, Philippines, Russia 0 0 10000 Japan 20000 Per Capita GDP (US$) 30000 40000 Source: World Bank 2002

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

Building Blocks of Public Sector EE Program Building Retrofits Building Benchmarks New Public Buildings Operations & Maintenance Goals & Targets Tracking Recognition, Savings Retained Savings Energy-Efficient Purchasing Product Testing & Labels Infrastructure: Water Systems Infrastructure: Life-Cycle 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) 2) 3) 4) Policies and targets Public buildings (existing, new) Energy-efficient government procurement 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 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, 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. ØInitial 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: • Goals: – CSC (China Standardization Center, formerly CECP) – National Development Reform Commission – Ministry of Finance • Co-sponsors: Energy Foundation, US EPA – Develop and implement mandatory policy for energyefficient 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/G 8 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) US Study Tours ECEEE ‘ 97, ’ 05 ICLEI Workshop APEC, Kunming Procurement Workshops China Procurement Kuwait Mexico Procurement Beijing 2003 India Public Bldgs. Kerala Workshop Capetown Energy Cities Conf.