Environmental Upgrade Agreements The easy way to finance building - - PowerPoint PPT Presentation

environmental upgrade agreements
SMART_READER_LITE
LIVE PREVIEW

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


slide-1
SLIDE 1

Environmental Upgrade Agreements

A new way to finance environmental building upgrades

An opportunity to grow capital value & returns – and unlock the value of older buildings

Dominique Hertzog – NSW Office of Environment and Heritage

Environmental Upgrade Agreements

The easy way to finance building upgrades

slide-2
SLIDE 2

Environmental Upgrade Agreements

2

Overview

Key attributes of NSW EUA offer

  • Delivery method
  • Eligible buildings
  • Eligible works
  • Tenants’ contributions

Packaging EUAs Status Key lessons Current issues/next steps

2

slide-3
SLIDE 3

3

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

slide-4
SLIDE 4

4

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)

slide-5
SLIDE 5

5

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)
slide-6
SLIDE 6

6

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

6

slide-7
SLIDE 7

7

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

slide-8
SLIDE 8

8

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

slide-9
SLIDE 9

9

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

slide-10
SLIDE 10

10

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
slide-11
SLIDE 11

11

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
slide-12
SLIDE 12

12

Environmental Upgrade Agreements

12

Dominique.Hertzog@environment.nsw.gov.au

More info: http://www.environment.nsw.gov.au/sustainbus/eua.htm