PEPS: Promoting an Energyefficient Public Sector OVERVIEW

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PEPS Promoting an Energy-efficient Public
SectorOVERVIEW

• CSD-14
• May 4, 2006
• Laura Van Wie McGrory
• Edgar Villaseñor Franco
• Philip Coleman

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OUTLINE

• Why focus on the public sector?
• PEPS partnership goals, strategy current
  projects
• PEPS Future directions

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Why the Public Sector?

• Save energy, money, pollution and carbon
• Large, cost-effective savings potential (gt20)
• Historically low energy prices
• Policy credibility
• Market presence
• Government is a large of GDP
• Biggest energy user
• Biggest buyer of energy-using products
• Market leadership (influence buyers sellers)
• Entry point for new technology
• Implied endorsement
• Example for others
• Support Agenda 21 and Johannesburg Plan of
  Implementation principles
• Integrate energy efficiency into policies,
  planning, and OM of . . . public sector.

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Government10-20 of GDP
60
50
40
Government Spending as of GDP
30
20
10
0
0
10000
20000
30000
40000
Source World Bank 2002
Per Capita GDP (US)
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Government Leadership Transforms the Market
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Building Blocks ofPublic Sector EE Program
Goals Targets
Building Retrofits
Building Benchmarks
Tracking Savings
Recognition, Retained Savings
Infrastructure Water Systems
New Public Buildings
Energy-Efficient Purchasing
Product Testing Labels
Life-Cycle Cost Criteria
Operations Maintenance
Infrastructure Street Lighting
Capable, Trained, Motivated Staff!
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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.

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PEPS Strategy

• Information and Decision Tools
• Energy savings estimation software (EST)
• Guidebook
• Website
• Technical Assistance to Governments
• Mexico
• China
• India
• South Africa
• APEC Economies

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Program Categories

• 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
• Information, training, incentives, and recognition

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PEPS Informationand 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

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Guidebook and EST
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Website www.pepsonline.org
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PEPS in Mexico

• Municipal Purchasing Project
• USAID funded
• Builds on ICLEIs 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

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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

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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.

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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.

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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)

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PEPS in China (Contd.)

• 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

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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

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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

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Lessons Learned (2)

• The rapid adoption of the Procurement Law came
  with several tradeoffs
• Low level of authority
• Insufficient training
• Insufficient information materials

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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

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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 OM
  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 24
  commercial buildings

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PEPS in South Africa

• Activities to Date
• Energy in Cities Conference federal workshop
  (2003)
• ICLEI municipal energy-efficiency pilot project -
  Ekurhuleni (2005)

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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

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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)

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Future Directions (Contd.)

• Expand/update tools
• Disseminate PEPS Guide
• Building benchmarking
• Project finance toolkit
• Capacity building
• Working exchange visits
• Harmonize government purchasing criteria
• International Standards of Practice

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Putting Public Sector Energy Efficiency on the
Map
EU Purchasing (PROST)
ICLEI Workshop
APEC, Kunming
Beijing 2003
US Study Tours
ECEEE97,05
China Procurement
Kuwait
Mexico Procure-ment
India Public Bldgs.
Kerala Workshop
ProcurementWorkshops
Capetown Energy Cities Conf.