Announcement date
1 May 2024
Link to announcement
https://consultation.abcb.gov.au/engagement/consultation-ris-commercial-energy-efficiency/
Problem being addressed
The rationale for minimum energy efficiency standards is based on the proposition that industry would not make socially optimal energy efficiency decisions in commercial buildings without government intervention. That is, there are energy efficiency opportunities where the benefits to the community (including public benefits) outweigh the associated costs that would not be taken up in the absence of regulation. This is often referred to as the ‘energy efficiency gap’.
Proposal
The Australian Building Codes Board (ABCB) leads the work to scope potential changes for commercial buildings in the next edition of the National Construction Code (NCC). As part of the NCC development process, the ABCB engaged the Centre for International Economics (CIE) to develop this Consultation Regulation Impact Statement (CRIS) assessing the costs and benefits of proposed changes in energy efficiency requirements in the NCC.
The CRIS canvasses the options: maintaining the status quo (no policy change option); a non-regulatory option; and three new policy options of varying energy efficiency stringency.
Option 1: Base case. The base case establishes the baseline against which the proposed changes are compared. It is essentially the status quo, that is, new builds compliant with NCC 2022.
Option 2: Non-regulatory. Encourage improved energy efficiency performance of commercial buildings by providing relevant information to users and managers of commercial buildings. This could involve presenting the proposed policy options (below) as a voluntary guideline or within a handbook.
Policy Options
Option 3.1: Stringency Level 1. Cost-effective energy efficiency without mandated on-site photovoltaics (PV) — includes proposed energy efficiency provisions for better performance building envelop and equipment.
Option 3.2: Stringency Level 2. Cost-effective energy efficiency with mandated on-site PV —introduces additional mandated on-site PV requirements to Stringency Level 1
Option 3.3: Stringency Level 3. Least cost zero carbon ready buildings —covers least-cost zero carbon provisions that achieve net zero Green House Gas (GHG) emissions ready buildings (when the grid decarbonises) with respect to regulated energy. This option extends Stringency Level 2 to provide full electrification readiness or to require additional PV to offset emissions from gas appliances compared with an all-electric equivalent.
There is a mandatory requirement on EV charging under all options. The proposed provisions will also be fuel and technology neutral under all options.
Assessment
Compliant