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Environmental Upgrade Agreements
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Overview
Key attributes of NSW EUA offer
- Delivery method
- Eligible buildings
- Eligible works
- Tenants’ contributions
Packaging EUAs Status Key lessons Current issues/next steps
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Environmental Upgrade Agreements The easy way to finance building - - PowerPoint PPT Presentation
Environmental Upgrade Agreements The easy way to finance building - - PowerPoint PPT Presentation
Environmental Upgrade Agreements The easy way to finance building upgrades A new way to finance environmental building upgrades Environmental Upgrade Agreements An opportunity to grow capital value & returns and unlock the value of
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Environmental Upgrade Agreements
Party to EUA - not a party to the loan Not liable for performance of works/use of funds Repayment conduit
- Transfer repayments to lenders (only if received)
- Cost recovery of processing fees
- Enforcement if default
Voluntary
- Offering EUAs and entering into an EUA
Promote EUAs with local stakeholders
Delivery - Local Councils
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Environmental Upgrade Agreements
Delivery – Role of OEH
Legislation Consultation Advice on policy intention as Template is being tested Support to pilot councils
- Seed funding (1.7M shared by 7 councils over 3 years)
- Knowledge sharing
Stakeholder engagement (peak bodies) Not a party to the EUA (commercial agreement)
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Environmental Upgrade Agreements
Eligible buildings
Non-strata and non-residential buildings:
- Offices
- Industrial
- Shopping centres
- Aged care, health and educational facilities
- Motels, hotels, backpacker accommodation
Once a Strata Template is released:
- Non-residential strata buildings
- Residential strata buildings (20+ lots)
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Environmental Upgrade Agreements
Eligible works
Broad eligibility “works to improve the energy, water or environmental efficiency or sustainability of the building”
- Energy or water efficiency
- Waste & greenhouse gas emissions
- Materials recovery or recycling
- Pollution prevention or reduction
- Renewable energy
- Reducing car use
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Environmental Upgrade Agreements
Tenants contributions
Net lease
- No consent required
- No change to lease
Gross lease
- Consent required
- Separate agreement
Tenants protection
- Contributions not to exceed
tenants’ savings on bills
- Landlord to notify
- Transparency of calculations
- Annual reports
- actual savings vs estimated
savings
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Environmental Upgrade Agreements
Packaging EUA with other offers
Referral to Energy Saver (ES) program
- Offers technical support to businesses for energy efficiency
projects
- Identify energy efficiency opportunities
- Subsidised energy audits and follow up (business case)
- Identify financing options, assist with application/calculations
- Energy Saving Certificates
- AusIndustry grants
- EUAs
Referral to Councils by ES team Referral to ES team by Councils
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Environmental Upgrade Agreements
Status
NSW State legislation February 2011 Commercial EUA Template October 2011 Councils offering EUAs:
- Sydney
October 2011
- Parramatta
February 2012
- North Sydney
July 2012
- Lake Macquarie
December 2012 First EUA signed in NSW December 2012 Next: Newcastle, Penrith, Wollongong March/June 2013
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Environmental Upgrade Agreements
Key lessons so far
Mid-tier sector
- Varied and unexplored
- Interested in retrofitting
- Unsure about finance options
It takes time
- Putting the project together
- Looking at technical and financial options
- Managing expectations
Multi facetted EUA
- Diverse pipeline
- Diversity of application
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Environmental Upgrade Agreements
Current issues / next steps
- Commercial Template, fine tuning
- On-going consultation
- Pilot phase
- Bringing more Councils on board
- Success factor
- Large stock of buildings
- Demand by industry
- Learning from the first EUAs
- Strata Template, work in progress
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Environmental Upgrade Agreements
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