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Extending the Energy Efficiency Opportunities Program to Major New Developments and Expansion Projects – Implementation Regulation Impact Statement – Department of Resources, Energy and Tourism

On 19 June 2013, the Minister for Resources and Energy announced that the Government had finalised the details on how to extend the Energy Efficiency Opportunities (EEO) program to major new developments and expansion projects. The EEO program requires large energy users to undertake energy savings audits. While it is not mandatory for the large energy users to accept the recommendations from an energy savings audit it is publicly reported. The changes will require large construction projects to undertake an energy savings audit at the design stage of the project. Single projects with an annual energy use of over 0.5 petajoules will be captured. This equates to projects with approximately $10-$20 million per annum in energy expenses. The threshold means that most of the captured projects are expected to be mining related.  Evidence from recently completed large construction projects already captured in other ways by the EEO program identified that cost-effective energy savings were not being taken up at the design stage of projects, leading to higher whole of life costs. The final package of changes to the EEO program was informed by an implementation Regulation Impact Statement, which was assessed as adequate by the Office of Best Practice Regulation.