Ccreditation For Ndividuals and Companies Providing Integrated Energy Efficiency Retrofit Services

ACCREDITATION FOR INDIVIDUALS AND
COMPANIES PROVIDING INTEGRATED ENERGY EFFICIENCY RETROFIT SERVICES
CONSULTATION PAPER FOR

PROPOSED ACCREDITATION SCHEMES
PREPARED BY THE ENERGY EFFICIENCY COUNCIL JULY 2011
CONTENTS
TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. Executive summary .................................................................................................................... 3 The context ................................................................................................................................ 6 Project overview....................................................................................................................... 10 How will companies be assessed in the initial accreditation scheme? ....................................... 13 How will individuals be assessed in the initial accreditation scheme? ....................................... 18 What does an energy efficiency retrofit involve? ...................................................................... 21 What is the proposed application process? ............................................................................... 26 Management of the accreditation scheme................................................................................ 30 Long-term considerations ......................................................................................................... 31
10. The next steps ........................................................................................................................... 33 Appendix 1. Individual skills and how they will be assessed in the proposed scheme ....................... 34
TABLES
Table 1. Companies - Detailed assessment criteria........................................................................... 15 Table 2. Overview of the IPMVP Measurement and Verification options.......................................... 16 Table 3. Individuals - Overview of skills required .............................................................................. 19 Table 4. Individuals - Overview of qualifications and experience required........................................ 19 Table 5. Individuals - Application and documentation ...................................................................... 20 Table 6. Proposed structure for the management of the accreditation scheme ............................... 30 Table 7. Individuals - Detailed assessment criteria of skills ............................................................... 35
FIGURES
Figure 1. Scope of this project ......................................................................................................... 10 Figure 2. Steps in an integrated energy efficiency retrofit ................................................................ 24 Figure 3. Steps, actions and outcomes in an Energy Performance Contract ...................................... 25 Figure 4. Proposed assessment process ........................................................................................... 26 Figure 5. Considerations in the long term ........................................................................................ 32
Proposed accreditation for individuals and companies providing integrated energy efficiency retrofit services
July 2011 Page 2 of 35
1. EXECUTIVE SUMMARY
1.1 THE CONTEXT
Energy efficiency is one of Australias largest untapped opportunities. It has enormous potential to transform Australia into a competitive, innovative, low-emissions economy while keeping energy affordable. Retrofitting commercial buildings will be a major part of Australias energy efficiency transformation, it is estimated that at least two thirds of the commercial building stock in 2030 will be made-up of commercial buildings that exist today. Demand for energy efficiency services is increasing rapidly. A growing body of research demonstrates that more sustainable commercial buildings deliver better investment returns to owners and are sought after by tenants due to improved financial performance and working conditions for their employees. In addition, Australian government jurisdictions have recognised the need for greater energy efficiency in commercial buildings. They have announced major policies and programs focused on assessing energy efficiency opportunities, financing projects to improve sustainability performance and disclosing energy efficiency ratings to prospective tenants and purchasers of commercial buildings. Energy efficiency retrofits in commercial buildings are complex and dynamic. Every building is different and there are a range of solutions that may be considered. The retrofit process involves many steps, professional advice and technical skills, and these should be integrated to ensure that the project achieves its stated outcomes. In addition, there are numerous types of energy efficiency service providers, and different delivery models for clients to choose from. The energy efficiency industry needs to meet the growing demand for retrofits by delivering high quality projects that achieve intended outcomes and protect the industrys reputation and promote further growth. Also, clients need to understand the energy efficiency retrofit process and feel confident that they can procure competent and reliable energy efficiency service providers. Accreditation schemes are able to support industry and address some of the barriers to the take-up of energy efficiency by providing standards of practice that are recognised by industry, government and consumers. Accreditation also provides recognition for individuals and companies, helps consumers make informed decisions and increases the quality of practice and outcomes over time. There are already industry associations and professional bodies running a number of accreditation schemes in Australia such as Engineers Australia, Green Building Council of Australia and the Australian Institute of Refrigeration, Air conditioning and Heating. A recent project undertaken for Sustainability Victoria in 2010, recognised the value of these existing accreditation schemes and identified gaps where additional accreditation schemes could provide value. It is recognised that there is a critical gap in accreditation for those who are involved at all stages of the energy efficiency retrofit process. Considering the success of an energy efficiency retrofit is greatly influenced by the provision of an integrated service, a system that accredits the individuals or companies that oversee the entire retrofit process would provide critical quality control for consumers and the energy efficiency industry as a whole. Therefore, an accredited integrated service
(one that follows all of the steps in an energy efficiency retrofit from scoping the project, through to the energy audit, work specification, implementation, measurement and verification and actions to maintain and sustain the retrofit) is desirable.
1.2 THE PROJECT

Sustainability Victoria, on behalf of the National Framework for Energy Efficiency, contracted the Energy Efficiency Council to: 1. Undertake consultation to design an initial accreditation scheme for individuals and companies to meet demand for accreditation over the next one to three years. 2. Scope a more comprehensive long-term accreditation scheme that encourages continual improvement in industry and a pathway for new entrants. This consultation paper proposes an interim accreditation scheme for companies and individuals undertaking energy efficiency retrofits of commercial buildings in order to seek feedback from industry and further refine the schemes. You may be particularly interested in providing feedback if you are an: Energy efficiency service provider who may apply for accreditation; A commercial building owner who may procure energy efficiency services; A facility manager who may procure energy efficiency services or apply for an individual accreditation if you manage facility upgrades; or A government representative involved in energy efficiency programs, which may involve managing the upgrade of government buildings, procuring energy efficiency services or endorsing suppliers for government projects.
1.3 USING THIS CONSULTATION DOCUMENT

The structure of this document is described below.
SECTION 2: THE CONTEXT

This section defines the value proposition for energy efficiency retrofits in commercial buildings and the role that accreditation would play in supporting energy efficiency projects.
SECTION 3: PROJECT OVERVIEW

The scope of the project, including the key design questions and principles that were used to develop the proposed schemes are defined in this section. We encourage you to assess the proposed scheme against these questions and principles.
SECTION 4: HOW WILL COMPANIES BE ASSESSED IN THE INITIAL ACCREDITATION SCHEME?

This section proposes two types of accreditation 1) Integrated Energy Efficiency Retrofit and 2) Energy Performance Contracting, for both experienced and new companies. This section details how companies will be assessed for the two types of accreditation. Consultation will focus on
whether the proposed scheme is in line with demand, current practice and ensuring integrated energy efficiency retrofits that are focused on outcomes.
SECTION 5: HOW WILL INDIVIDUALS BE ASSESSED IN THE INITIAL ACCREDITATION SCHEME?

This section defines the role of an individual energy efficiency leader in an energy efficiency retrofit and details the skills (or competencies) that this role requires; the qualifications and experience an individual would be required to have in order to be accredited in the proposed scheme; and the assessment criteria for each of the skills. The proposed scheme describes an ideal combination of competencies, at the highest level, for the purposes of consultation. Identifying the necessary level of qualifications, experience and skills will be an important part of the consultation process.
SECTION 6: WHAT DOES AN ENERGY EFFICIENCY RETROFIT INVOLVE?

The purpose of this section is to define the energy efficiency retrofit process and delivery models related to this proposed accreditation including the 1) Integrated Energy Efficiency Retrofit and 2) Energy Performance Contracting. This will ensure that readers understand where the processes, skills and experience being assessed in the previous two sections derive from.
SECTION 7: WHAT IS THE PROPOSED APPLICATION PROCESS ?

The application process for accreditation is described including how applications will be assessed and key issues such as the establishment of the assessment panel; code of conduct; appeals process for applicants; and complaints process for clients. The aim was to propose a process that is transparent, confidential for participants and efficient.
SECTION 8: MANAGEMENT OF THE ACCREDITATION SCHEME

The proposed management of the accreditation scheme is shown in a diagram.
SECTION 9: LONG TERM CONSIDERATIONS

The schemes proposed in sections 4 and 5 are initial schemes that define the baseline for sound practice and accreditation in the short term. Section 9 raises some key issues to be considered in the development of a long-term scheme including meeting demand, and developing a pathway for new entrants and continuing professional development.
SECTION 10: THE NEXT STEPS

The Energy Efficiency Council, as administrators of this consultation process, is seeking feedback on this consultation document so that the proposed schemes can be refined in line with current practice and demand from the public and private sectors. To assist you in providing feedback, we have included key questions in sections 4, 5, 6 and 7. Feedback can be provided to the Energy Efficiency Council in writing or at public consultation sessions. The closing date for feedback will be COB on Friday 19 August 2011 and details for providing feedback are included in section 10 at the end of this document. We look forward to working with you in developing an accreditation scheme for the energy efficiency industry that adds value to suppliers and clients and assists us all in creating a competitive, sustainable and growing energy efficiency industry so support the commercial buildings sector.
2. THE CONTEXT
2.1 ENERGY EFFICIENCY IS AN ENORMOUS OPPORTUNITY
Energy efficiency presents an enormous opportunity to strengthen Australian businesses while reducing emissions. The scale of the opportunity is well documented in the commercial buildings sector. Retrofitting Australias existing commercial buildings over the next decade could save $1.4 billion a year1, cut building emissions by 30 per cent, and create 27,000 jobs 2. Australia has barely tapped this opportunity and our progress falls far behind many other countries.
2.2 DEMAND FOR ENERGY EFFICIENCY SERVICES IS INCREASING

2.2.1 PUBLIC SECTOR
The federal, state and territory governments have identified energy efficiency as a critical tool to strengthen Australias economy and reduce greenhouse gas emissions. Governments have announced major energy efficiency policies and programs, including: The Governments recently announced Carbon Price Package has over $1.5 billion in grants and up to $5 billion in finance for energy efficiency The Energy Efficiency Opportunities (EEO) program, which requires large energy using companies to undertake rigorous energy assessments to identify, evaluate and make decisions on the implementation of energy efficiency opportunities Commercial Building Disclosure (CBD) program, which requires the disclosure of a NABERS energy star for a building at the point of lease or sale Low Carbon Communities - $80 million in grants for community facilities $1 billion in Tax Breaks for Green Buildings from July 2012 Low Carbon Australia and its energy efficiency program Loan schemes through the City of Melbourne and local governments in New South Wales State-based programs including New South Wales Energy Saving Action Plans, Victorian Energy and Resource Efficiency Plans and Queensland Smart Energy Savings Program Various other programs to drive energy efficiency in government buildings, such as the National Green Lease Project The success of these programs will depend on public and private-sector institutions being able to engage competent and reliable energy efficiency service providers including individuals and companies. A national accreditation scheme that is accepted by governments has the potential to assist government procure energy service providers and streamline the procurement process for government departments and the individuals and companies who tender for the projects.
ClimateWorks Australia 2010, A Low Carbon Growth Plan for Australia. Davis Langdon 2009, Retrogreening Offices in Australia, Davis Langdon Research Report, Davis Langdon
The schemes in this consultation paper have been developed so that they are fit-for-purpose for government endorsement as either a voluntary or mandatory part of energy efficiency programs.
2.2.2 PRIVATE SECTOR

From a private sector perspective, The Property Council of Australia and Investment Property Databank Limited (IPD) released a new Green Property Investment Index that shows that more sustainable commercial buildings deliver better returns to owners (www.ipd.com). The Index tracked the returns and capitalisation rates for office buildings over two years. Buildings with at least a 4-star NABERS rating had significantly higher net income returns and lower capitalisation rates (i.e. higher investment returns) than poorer-performing and non-rated buildings. Programs such as Commercial Building Disclosure mean that tenants will be more aware of and influenced by building performance than ever before; and government programs will drive investment in energy efficiency and increase the standard of all buildings. Energy efficiency is the future of commercial buildings, and buildings that dont meet increasing standards run the risk of lower returns, higher capitalisation rates and increasing vacancy.
2.3 ENERGY EFFICIENCY RETROFITS ARE COMPLEX AND REQUIRE EXTENSIVE

SKILLS AND PROCESSES
An energy efficiency retrofit is a complex and dynamic process. It requires many steps including business planning; procuring the service of suitably qualified consultants, including tendering; a Detailed Facility Study; work specifications; project management and other implementation activities; measurement and verification of results; and ongoing effort and action to maintain and sustain the retrofit benefits. Although these steps can be described in sequential order, in practice, they are addressed at multiples stages of the project through a continual process of development and refinement. There are numerous milestones, complex handovers and the scope of the project can change, particularly due to latent conditions (defects in the building infrastructure, plant or equipment that the company or individual, in exercising due diligence, could not have reasonably anticipated e.g. rusted pipes). In addition, every building is different so there is no such thing as a standard retrofit, and the composition of project teams can vary substantially between projects. Alongside this complexity, the process requires an extensive range of skills and competencies including all aspects of project management; awareness of relevant government and building engineering standards; ability to undertake cost-benefit analysis and develop business cases seeking funding approval; understanding energy consumption and energy efficiency technology; and understanding behaviour change and stakeholder management to name a few. As a result, there is often a large number of people and professions involved in a retrofit project. As a consequence, one of the key attributes of a successful retrofit project is integration. This integration can be achieved by appointing an individual to manage the project and/or a company that has the processes in place to ensure an integrated energy efficiency retrofit. Individuals and
companies may not carry out all of the components of a retrofit, but they will need to oversee them and take responsibility for them. An accreditation can endorse an integrated process and assess individuals and companies to ensure that they have the skills, competencies, processes and experience required to undertake sound retrofits.
2.4 THESE SKILLS ARE PRIMARILY PROCURED

Property owners may not undertake enough upgrades of their portfolios to justify developing an inhouse capacity to deliver energy efficiency upgrades, and consequently, in most instances, they invariably choose to procure energy efficiency services from outside their organisations. If building owners lack the ability or face high costs in distinguishing energy efficiency service providers based on their quality, there is a risk, particularly for retrofits driven by government subsidies, that building owners will engage insufficiently experienced individuals and companies leading to retrofit projects that dont achieve their desired outcomes. An accreditation scheme has the potential to assist property owners to identify and engage suitably qualified individuals and companies to support their projects.
2.5 THE BENEFITS OF ACCREDITATION SCHEMES

Accreditation and standards are particularly beneficial to new and growing industries. They provide quality assurance, which encourages the industry to develop best practice and also develop in a sound manner. This reduces the risk of low quality services for clients, protects the industrys reputation, and promotes further growth in the industry. Accreditation provides unique benefits as it: Enables prospective clients to distinguish between energy efficiency service providers based on an individuals experience and skills, and a companys experience and processes; Encourages companies to develop their staff and improve their processes through a defined development plan; Reduces the risk of poor quality retrofits, with consequent benefits for industry reputation; Provides energy efficiency service providers with recognition for their current level of experience and competence; Encourage transferrable skills and products, which allows greater industry development; Streamlines the procurement process; and Provides a baseline for accepted practice and a framework to achieve and be recognised for achieving best-practice. Feedback from our members and recent studies demonstrate that many energy efficiency service providers support the establishment of an accreditation scheme. A report undertaken by Swinburne
University of Technology found that the sector believes that accreditation would be beneficial; and a scheme would need a source of funding and the credibility, scope and rigor to be valued by clients 3. There are already many allied industry associations and professional bodies providing professional memberships, accreditations and accredited training including Engineers Australia, the Facility Management Association of Australia, the Green Building Council of Australia and the Australian Institute of Refrigeration, Air conditioning and Heating, to name a few. A recent project undertaken for Sustainability Victoria in 2010 recognised the value of these existing programs. It also identified gaps for specific roles in the retrofit process where additional accreditation schemes could provide value. The report recommended that a range of industry bodies should lead the development of accreditation for these roles in their relevant industries. A critical gap was identified in the area of accreditation for the role of the individual who oversees and integrates energy efficiency retrofits. This role is critical for ensuring integration throughout a project and that someone is responsible for the entire project. Some of the skills required for an energy efficiency retrofit are covered by accreditation systems and standards including energy audit standards and ratings schemes. However, there are substantial gaps in skills and there is no single scheme that covers the whole energy efficiency retrofit process. Considering the success of an energy efficiency retrofit is greatly influenced by the provision of an integrated service, a system that accredits an individual or company that oversees the entire retrofit would provide critical quality control for consumers and the energy efficiency industry as a whole. It is necessary for any new accreditation scheme to reference existing accreditations and standards. This will ensure consistency across the industry, reduce the burden on applicants who are applying for the accreditations, reduce unnecessary administration for organisations managing the schemes, reduce confusion from a client perspective and raise awareness of accreditation and standards for the industry overall. This can be achieved through: Referring to related accreditations and standards in a Code of Conduct; Where applicable recognising accreditations in the qualifying criteria; and Assessing knowledge of relevant programs in the assessment process. These principles were taken into account in the preparation of this document as described in the next section.
Gary McDonald, 2008, Department of Resources, Energy and Tourism, Final Report 2008, Accreditation Feasibility and Guidelines
Research for the Energy Services Sector
3. PROJECT OVERVIEW
3.1 SCOPE
Sustainability Victoria, on behalf of the National Framework for Energy Efficiency, contracted the Energy Efficiency Council to undertake consultation with the following two aims: design an initial accreditation scheme for individuals and companies to support energy efficiency retrofits of commercial buildings over the next one to three years. carry out the foundational work to scope a more comprehensive long-term accreditation scheme that encourages continual improvement in industry and a pathway for new entrants. Commercial buildings are defined as those that are non-residential and non-industrial, and therefore comprise a wide variety of buildings, including office buildings, schools, community centres and hospitals It is possible to rapidly design a basic and robust accreditation scheme for individuals and companies providing energy efficiency services by drawing on the expertise of industry and previous experience with Energy Service Company accreditation in Australia. An initial scheme could be implemented in the near future to assist in assuring the quality of practice for upcoming government programs. An upgraded scheme could vary substantially from a simple system; to a comprehensive analysis of skills, experience and processes that are potentially categorised by sectors, technologies, skills and client feedback. Developing a long-term plan for accreditation would require a vision for the ideal standard of practice of the energy efficiency industry and a pathway to move towards that vision. This project commenced in March 2011 and is due to be completed in August 2011. As described above, the scope includes the design of the initial scheme and scope of a long-term scheme, but not implementation of the schemes. The scope of the project is shown in Figure 1 below.
Initial scheme
Within the scope of this project Define the scope of the initial accreditation scheme
Long-term scheme
Define the scope of the long-term accreditation scheme
Design the accreditation scheme
Establish a project plan and budget to design the scheme
Outside the scope of this project
Implement the accreditation scheme
Design the accreditation scheme Implement the accreditation scheme
FIGURE 1. SCOPE OF THIS PROJECT
3.2 OUTCOMES
3.2.1 K EY DESIGN QUESTIONS
To design an effective scheme that meets the desired outcomes, extensive consultation is being undertaken to consider the following key design questions: Outcomes: What outcomes are we trying to achieve through the accreditation scheme, in light of current practice, government programs and private sector demand? Skills, processes and resources: What skills, processes and resources do individuals and companies need to undertake an integrated energy efficiency retrofit that achieves its stated outcomes? Levels of capability: What levels of capability are required to meet demand such as delivery methods, project sizes, sectors, and technologies? Process: How will the skills, processes and resources be assessed for individuals and companies as part of the accreditation scheme? Maintaining standards: After accreditation has been achieved, what will be the process to ensure that standards are maintained over time? Administration: How will the scheme be administered including timing, cost, a code of practice, an appeal process for applicants and a complaints process for clients? Providing support and marketing: How can we provide support to all stakeholders who will need to be made aware of the new accreditation scheme, and be provided with simple tools to seek accreditation and procure accredited individuals and companies? Vision: What is our vision for a long-term accreditation based on an understanding of the current standard of practice and a vision of what we would like industry to achieve in a defined timeframe?
3.2.2 K EY PRINCIPLES FOR THE SCHEME

The following principles were determined to direct the answers to the design questions and underpin the development of the schemes. Through the next stages of consultation, we encourage participants to assess the proposed scheme against these principles: Meets demand: Meets current and projected demand for energy efficiency retrofits of commercial buildings from the public and private sectors Fit-for-purpose: Aligns with public and private sector procurement processes so that it is fitfor-purpose Encourages an integrated energy efficiency process: Encourages best practice integrated energy efficiency retrofits designed to achieve stated outcomes Appropriate assessment process: Transparent, objective and confidential application process with peer assessment Internal consistency: Consistency across accreditation schemes and associated assessment processes
Flexibility: Ability to adapt in the future to allow internal categorisation or expansion as described in section 9.4 Suitable assessment criteria: Recognition of existing skills, experience and essential processes Outcome focused: Focused on outcomes achieved in energy efficiency retrofit projects to assess applications and renew accreditations Cost recovery: Cost recovery model to ensure affordability and a streamlined process Alignment: Alignment with associated national and international accreditations and programs Vision: A long-term scheme that has a vision for the future of the industry Pathways: Creation of a pathway for graduates, companies and individuals to develop skills Support: Encourages support and uptake from the demand and supply side of the energy efficiency market These design questions and desired outcomes are being articulated so that they can be used to evaluate the accreditation schemes that are being proposed as part of this project.
3.3 CONSULTATION PROCESS

Extensive consultation was considered to be fundamental to this project to ensure that the proposed scheme accurately reflected energy efficiency procurement and practice in the public and private sectors, and to demonstrate that the development of the scheme was transparent. The consultation plan for this project involves four distinct groups: 1. Steering Group: The Steering Group comprises representatives from government and experts from the demand and supply sides of the commercial building energy efficiency industry. The Group is responsible for establishing the goals for the project, approving the project plan, monitoring progress and signing off on consultation documents and the accreditation schemes. 2. Targeted Consultation: Experts and representatives of key organisations have been invited to specific meetings to provide input into the development of the accreditation scheme. Their input is demonstrated in the detail of the proposed schemes in the following sections of this document 3. Wider Consultation: The draft scheme will be sent out for broad public consultation, made publicly available through the EEC website and discussed at public forums where comments will be invited from interested parties. This consultation document is the key tool for wider consultation 4. Stakeholders: Industry organisations that are part of the energy efficiency supply chain and have an interest in the development of the accreditation scheme will be kept informed of the progress of the project and invited to provide input that reflects their interest.
The consultation process is being administered by the Energy Efficiency Council, whose role is to develop the project plan, support the Steering Group, administer meetings, undertake background research to inform the development of the accreditation scheme and prepare the final reports.
4. HOW WILL COMPANIES BE ASSESSED IN THE INITIAL ACCREDITATION SCHEME ?

4.1 COMPANY ACCREDITATION OVERVIEW
The initial accreditation scheme sets the baseline for practice in the industry, to meet current demand for energy efficiency retrofits in the public and private sectors. The company accreditation will assess companies against their ability to deliver one or both of the following two delivery models: 1. Integrated energy efficiency retrofit (described in section 6.5.1, figure 2) 2. Energy Performance Contract (EPC) (described in section 6.5.2, figure 3) To address the need for integration in energy efficiency projects, the assessment for both of these delivery models will focus on the processes required to manage each step in an energy efficiency retrofit in an integrated manner. There are additional assessment requirements for the EPC accreditation, based on the fact that this delivery model includes guaranteed performance outcomes. The scheme will assess experienced companies to provide recognition to those who are practicing in line with the baseline or beyond. It will also provide an option for new companies to be accredited to encourage new companies to enter the market. The accreditation will be reviewed at regular interviews and membership of an industry organisation will not be a requirement of the accreditations.
4.1.1 OVERVIEW OF ASSESSMENT CRITERIA FOR EXPERIENCED COMPANIES

To qualify for a company accreditation, companies will be required to: A) Complete an application form and provide documentation demonstrating: 1. Experience with specific energy efficiency retrofits projects 2. Processes governing an energy efficiency retrofit 3. Project management capability 4. A quality assurance system 5. Company details B) Sign a Code of Conduct (see 7.3.4) C) Undertake an interview if further information or clarification is required
4.1.2 OVERVIEW OF ASSESSMENT CRITERIA FOR NEW COMPANIES

To encourage industry growth, and provide a pathway for new companies to enter the market, new companies will be invited to apply for a process accreditation. This accreditation will include all of the requirements listed above, with the exception of number 1, Experience with specific energy efficiency retrofit projects. This will be replaced with personnel qualifications and related experience.
To qualify for a process accreditation, new companies will be required to: A) Complete an application form and provide documentation demonstrating: 1. Personnel and their qualifications and related experience 2. Processes governing an energy efficiency retrofit 3. Project management capability 4. A quality assurance system 5. Company details B) Sign a Code of Conduct (see 7.3.4) C) Undertake an interview if required The specific requirements are detailed in the table below under Assessment Criteria.
4.2 DETAILED ASSESSMENT CRITERIA BY DELIVERY MODEL

4.2.1 APPLICATION AND DOCUMENTATION
Applicants will be required to submit the following information via the application form and additional documentation. The requirements for each delivery model are shown in the table below. C ATEGORY A SSESSMENT E NERGY P ERFORMANCE C ONTRACT I NTEGRATED
ENERGY EFFICIENCY RETROFIT
1.
Experienced companies: Experience with energy efficiency retrofits
New companies only
2.
Processes governing an energy efficiency retrofit
Details for three energy efficiency retrofit projects including: Project name Project value Scope including multiple technologies and processes e.g.: o Lighting o Heating, ventilation and cooling o Control systems o Building envelope o Compressed air Project timeline Outcomes achieved and extent of verification Client or supervising organisation and contact details New companies will also be required to provide: Number of technically qualified staff Details of qualifications Curricula Vitae demonstrating experience Provision of the applicants process or methodology for governing an energy efficiency retrofit: o Scoping the project o Energy audits covering electrical and mechanical services o Design engineering o Vendor Procurement Plan o Commissioning o Operations and maintenance of Energy Efficiency Technologies o Measuring and verifying energy savings o Enterprise wide risk management process
C ATEGORY
A SSESSMENT
E NERGY P ERFORMANCE C ONTRACT
I NTEGRATED
ENERGY EFFICIENCY RETROFIT
3.
4.
Project management capability Quality assurance system
5.
Confidential financial assessment (carried out by external financial assessor)
Provision of the applicants process or methodology for managing site works: o Construction Management o Environmental Management System for the construction site. Site environmental plan complying with ISO 14000 o OH&S Management Process A process addressing general project management skills applicable to a commercial building energy efficiency retrofit Third party certification to a recognised quality system such as the ISO 9001.2000 Quality Management Systems series or Provision of sufficient information to describe the adequacy of the companys procedures and auditing provisions External financial assessor Audited accounts from the previous three years Maximum desired contract size (total project cost) Proposed method of financing EPC projects Letter from the ESCOs financial institution stating the maximum level of finance and guarantee facilities available to the company for EPC purposes Details of experience of successfully financing EPCs Four financial tests to demonstrate stability and strength Financial tests: Test 1: The lowest dollar value of either: o Net Tangible Worth / 0.07 or o Working Capital / 0.14 Test 2: The lowest of either: o 50% of revenue or o Result of Test 1 Test 3: The highest of either: o 20% of Net Tangible Worth of o Result of Test 2 Test 4: The highest of either: o 1.35 times the largest completed project or o Result of Test 3 Company registration Affiliates Names of owners, directors and partners Organisational chart plus staff qualifications Number of years in business Evidence of adequate insurance coverage for an appropriate range of risks Employee relations policy Sustainability or environment policies
Not required
6.
Company details
TABLE 1. COMPANIES - DETAILED ASSESSMENT CRITERIA
4.2.2 M EASUREMENT AND V ERIFICATION

Measurement and Verification (M&V) is a transparent and systematic method of quantifying and verifying energy and water savings of conservation measures. M&V in the accreditation schemes refers to the International Performance Measurement and Verification Protocol (IPMVP) methods developed by the Efficiency Valuation Organisation. There are four generic options for M&V that have different levels of complexity, savings uncertainty and cost. The method selected will depend on the conservation measure, the level of risk related to the project, the level of certainty required and the project budget. The four methods are described in the table below. This table is from A Best Practice Guide to Measurement and Verification of Energy Savings, 2004, and is an adaption of the IPMVPs volume 1 Overview of M&V Options.
IPMVP
OPTIONS
IPMVP NAME
Partially Measured Retrofit Isolation
H OW SAVINGS ARE
CALCULATED
C OMMON USE
For a single energy conservation measure (ECM) where the performance of the ECM can be measured but it may be best to stipulate its operation For a single ECM where the performance and operation of the ECM should be measured For single ECM or multiple ECMs with or without energy interactions within a whole facility or building. Energy use is measured by utility meters for at least 12 months of the base-year and continuously throughout the post retrofit period For a single ECM or multiple ECMs with or without energy interactions within a whole building but where no base-year data are available. Post retrofit measurements are used to calibrate the simulation model. Baseyear energy use and demand are generated by the simulation model
Option A
Engineering calculations using short term or continuous postretrofit measurements and stipulations Engineering calculations using short-term or continuous measurements Analysis of whole facility or building utility meter or submeter data, available continuously, using techniques from simple comparison to regression analysis Energy use simulation, calibrated with hourly or monthly utility billing data and/or end-use metering
Option B
Retrofit Isolation
Option C
Whole Facility (Building)
Option D
Calibrated Simulation
TABLE 2. OVERVIEW OF THE IPMVP MEASUREMENT AND VERIFICATION OPTIONS
4.2.3 INTERVIEW
All new companies will be invited to be interviewed by the review panel. The purpose of the interview is to substantiate the companys understanding of the processes involved in an energy efficiency retrofit. The questions in the interview will address the assessment criteria listed in Table 1 above. Experienced companies may also be invited to an interview if further clarification of evidence is required.
4.3 ONGOING ACCREDITATION

4.3.1 EXPERIENCED COMPANIES
To maintain the accreditation, accredited companies will be reviewed every three years. The review will assess the outcomes of energy efficiency retrofits undertaken during those three years. Specifically, companies will be asked to supply the names of client contacts and projects, and clients may be asked to complete a questionnaire, so that the review panel can assess the process, outcomes and obtain feedback about the conduct of the company.
4.3.2 NEW COMPANIES

To progress to one of the company accreditations, the companys experience with energy efficiency retrofits will be reviewed within one to three years, depending on the companys ability to supply examples of projects. The review will assess the outcomes of energy efficiency retrofits undertaken during the previous years. Specifically, a company will be asked to supply the names of client contacts and projects, so that the review panel can contact clients to discuss the process, outcomes and obtain feedback about the conduct of the company.
4.4 KEY QUESTIONS

1. Are the critical processes that are required for a company to lead an energy efficiency retrofit of a commercial building represented in the assessment criteria? 2. Is the level of experience required in this initial accreditation scheme appropriate for ensuring the quality of energy efficiency retrofits? 3. Is the proposed method of assessment adequate for identifying the processes and experience of a company and is it appropriately outcome-focused?
5. HOW WILL INDIVIDUALS BE ASSESSED IN THE INITIAL ACCREDITATION SCHEME? 5.1 INDIVIDUAL ACCREDITATION OVERVIEW
An energy efficiency retrofit of a commercial building is a complex and dynamic process. As outlined in previous sections, a successful project requires integration, which would include responsibility for the integration of the steps and actions; contract management; a focus on outcomes; and the project as a whole. We have found that good retrofit projects almost always have somebody formally in this role. These people come from a diverse range of fields, including project management and engineering. Sometimes the individual is not aware that they have this role, however, the more formally it is allocated to an individual, the more effective they will be in supporting the project. This role is critical for the clients experience in an energy efficiency retrofit. Clients have requested a streamlined process, where they have a single point of contact and assigned responsibility. For these reasons, this paper proposes the development of an individual accreditation. The proposed title for this individual is Certified Energy Efficiency Leader. A person who is certified would need exceptional project management skills and understanding and experience with energy efficiency retrofit projects and measurement and verification of project outcomes. This proposed accreditation scheme represents an ideal individual, at the highest level, as the basis for discussion.
5.2 OVERVIEW OF ASSESSMENT CRITERIA

The initial accreditation scheme sets the baseline for sound practice and provides recognition for those who are practicing at this level or beyond. It also provides a clear pathway for graduates and others who want to become effective Certified Energy Efficiency Leaders. At this stage, the initial accreditation will assess the skills and experience of individuals. To qualify as a Certified Energy Efficiency Leader, applicants will be required to: A) Have achieved a defined level of qualifications and experience in: 1. Project management 2. Energy efficiency and commercial building engineering services 3. Measurement and verification of the outcomes of retrofit projects B) Complete an application form and provide documentation demonstrating: 1. Experience with specific energy efficiency retrofit projects 2. Skills in project management and energy efficiency retrofit projects C) Sign a Code of Conduct (see 7.3.4) D) Undertake an interview This assessment will ensure that a Certified Energy Efficiency Leader has the qualifications, experience and skills to undertake an energy efficiency retrofit that achieves established outcomes. The specific requirements are detailed in the table below under Assessment Criteria.
5.2.1 SKILLS
Applicants will be required to demonstrate the following skills: P ROJECT M ANAGEMENT
1. 2. 3. 4. 5. 6. 7. Project management Risk management Determining objectives Performance management Contract management Cost benefit analysis and development of business cases Whole of system and services thinking
E NERGY E FFICIENCY
8. 9. 10. 11. 12. Awareness of relevant local standards, energy efficiency programs and grants Understanding of energy efficiency retrofit delivery/procurement pathways Energy consumption collection, billing, modeling and analysis Reviewing audit reports Understanding energy efficiency technology and engineering systems and processes Providing for ongoing maintenance Understanding barriers and justification of project implementation Understanding behaviour change options to achieve energy efficiency
M EASUREMENT AND V ERIFICATION

16. Understanding measurement and verification (M&V) processes and standards
13. 14. 15.
TABLE 3. INDIVIDUALS - OVERVIEW OF SKILLS REQUIRED
5.2.2 QUALIFICATIONS AND EXPERIENCE

Certified Energy Efficiency Leaders will be required to have achieved, and be able to demonstrate, qualifications and experience. Examples of the types of qualifications and experience that are proposed for the initial accreditation scheme are shown in the table below. P ROJECT M ANAGEMENT
P ROPOSED
QUALIFICATIONS THAT MAY FORM PART OF AN APPLI CATION
E NERGY E FFICIENCY
Engineering degree recognised by the Institute of Engineers Degree or diploma in construction industry disciplines including building services Accreditation for a related skill including Green Star and NABERS 2 to 5 years experience in energy efficiency retrofits Examples of at least 3 energy efficiency retrofit projects Or equivalent
M EASUREMENT AND V ERIFICATION

Certified Measurement and Verification Professional Undertaken Measurement and Verification training Mentored in Measurement and Verification through work experience show below
Bachelor of Project Management Diploma in Project Management Australian Institute of Project Management Accreditation
P ROPOSED
EXPERIENCE THAT MAY FORM PART OF AN APPLI CATION
2 to 5 years in project management Practicing as a project leader (as opposed to a project team member) Or equivalent
2 to 5 years experience in energy efficiency retrofit projects involving M&V Experience with different M&V models
TABLE 4. INDIVIDUALS - OVERVIEW OF QUALIFICATIONS AND EXPERIENCE REQUIRED
5.3 DETAILED ASSESSMENT CRITERIA

Applicants will be required to submit the following information via the application form and additional documentation.
5.3.1 APPLICATION AND DOCUMENTATION

RPM Experience
1. Experience with specific energy efficiency retrofits
Assessment
Details for three energy efficiency retrofits including: Project name Project value Scope Project timeline Role in the project Outcomes achieved Client or supervising organisation and contact details Provision of work completed for energy efficiency projects as described: Project management: Project management plan and recent project progress report Risk management: Risk management matrix and or approach Determining objectives: Plans demonstrating the ability to determine client objectives e.g. sustainability, asset management and energy management plans Contract management: Contract management processes including meeting legislative requirements Cost benefit analysis: Analysis undertaken representing cost management including basic project cost benefit analysis approaches Reviewing audit reports: Copies of documents demonstrating queried audit findings and suggested measures. Energy consumption collection, billing, modeling and analysis: Examples of analysis undertaken on a project
2.
Skills in project management and energy efficiency
TABLE 5. INDIVIDUALS - APPLICATION AND DOCUMENTATION
5.3.2 INTERVIEW
The interview will involve questions pertaining to a selection of the skills shown in Table 3 at 5.2.1. Interviews are a critical method for assessing an individuals depth of knowledge, experience and problem solving skills. A complete list of the skills and how they will be assessed in an interview is included in Appendix 1.
5.4 ONGOING ACCREDITATION

To maintain the accreditation, Certified Energy Efficiency Leaders will be reviewed every three years. The review will assess the outcomes of energy efficiency retrofits undertaken during those years. Certified Energy Efficiency Leaders will be asked to supply the names of client contacts and projects, so that the review panel can contact clients to discuss the process, technologies, outcomes and conduct of the Certified Energy Efficiency Leader. It is not anticipated that Certified Energy Efficiency Leaders would have to re-demonstrate their skills after their initial accreditation is approved.
5.5 KEY QUESTIONS

1. Are the critical skills that are required for an individual to lead an energy efficiency retrofit of a commercial building included in the assessment process of this proposed scheme? 2. Is the level of competency proposed in this initial accreditation scheme appropriate for ensuring the quality of energy efficiency retrofits and meeting demand? 3. Is the proposed method of assessment adequate for identifying the skills and level of competency?
6. WHAT DOES AN ENERGY EFFICIENCY RETROFIT INVOLVE?

6.1 OVERVIEW
This section defines the energy efficiency retrofit process and delivery models related to the proposed accreditation. Articulating the process and delivery models is integral to determining the different types of company and individual accreditations proposed in this paper; and identifying the processes and skills that will be assessed. It is intended that the process and delivery models encourage best-practice energy efficiency retrofits such that they are integrated, outcome-focused and will meet public and private-sector demand.
6.2 DELIVERY MODELS

Generally, energy efficiency retrofits fall into two main categories: 1. Prescriptive-based retrofits: These are based around the design and installation of specific measures. There are a broad range of approaches, including stand-alone energy audits. 2. Performance-based retrofits: The foundation of this model is a guaranteed amount of energy or financial savings or achievement of a specified energy efficiency level (e.g. NABERS rating). In this document, this is referred to as Energy Performance Contracting (EPC).
6.3 PRESCRIPTIVE-BASED RETROFITS

Prescriptive-based energy efficiency retrofits often involve standard energy audits and implementation of specific energy efficiency initiatives. Specifically, energy audits are investigations of energy use in a defined area, building or site. The current AS/NZS3598:2000 describes an energy audit as identifying opportunities for cost effective investments to improve efficiency and effectiveness in the use of energy. The standard is currently undergoing a consultation review by National Framework for Energy Efficiency (NFEE) Commercial and Industrial Implementation Group. An energy audit starts with the establishment of an energy baseline; investigates when, where and how energy is used; then identifies opportunities to improve that baseline; and finally evaluates and reports on those opportunities in terms of energy savings and/or emissions savings potential, and capital cost effectiveness. Basically, energy audits are about defining current energy performance and then finding ways to improve that performance.
6.3.1 PRESCRIPTIVE-BASED RETROFITS SUITABILITY

A common concern with this delivery method relates to the evaluation of energy saving opportunities and potential lack of integration of each step in the process: Calculation of the potential energy savings could be seen to be superficial or inadequate, and requires an emphasis on rigorous methods, not rules of thumb or guesstimates
Costs to achieve the savings are not calculated to an adequate degree of precision, with many individuals or companies having limited experience in design and implementation of projects Business case analysis may not be relevant to the business and reporting savings in terms of simple payback may not provide enough accuracy. This can be avoided by careful scoping of the audit requirements The two steps, audit and implementation, may not be managed by one person or company that takes responsibility for the entire project and the lack of integration may affect the project outcomes Many projects cease after the audit report has been received and it is necessary to bridge the gap between the audit and implementation of the opportunities
6.4 ENERGY PERFORMANCE CONTRACT (EPC)

In broad terms an EPC is an integrated energy efficiency project that involves a guarantee on the financial and energy savings delivered. An EPC generally involves the engagement of one service provider known as an Energy Service Company, or ESCO, to design, install and commission energy and water efficiency measures at an existing building or group of buildings.
6.4.1 THE EPC PROCESS

A typical EPC process involves the following steps: Request for Proposal (RFP): A suitable provider is selected after an expression of interest and request for tender Detailed Facility Study (DFS): A DFS is generally provided according to a Level 3 Energy Audit AS/NZS3598 Work specification: This includes an implementation plan with a timeline, budget, project management structure and plans for risk management, procurement, commissioning, measurement and verification, and operation and maintenance Implementation: Energy efficiency measures identified and agreed in Energy Performance Contract are installed Measurement and Verification: Generally on an annual basis, the savings are measured and verified to ensure quality and the savings guarantee Sustaining the project: Operation, maintenance and continued measurement and verification are undertaken until the end of the contract These steps are expanded upon and detailed in figure 4 below. Specifically, ESCOs competitively audit the buildings during the tender process. This delivery model may include efficient supply of energy as well as reducing demand, by incorporating on-site embedded generation technologies such as tri-generation and renewable options. It also may include the option to provide project finance and/or asset ownership of the energy efficiency measures, allowing the client to keep the new capital equipment off-balance sheet.
After the project is complete, the ESCO is required to monitor and verify the project savings. Any shortfall in savings is reimbursed to the client by the ESCO. The EPC term may be typically five years in most cases, and up to 20 years in cases involving significant capital investment and internal rate of return requirement.
6.4.2 EPC SUITABILITY

There are some cases where the EPC delivery model is deemed inappropriate, including: Limited scale of facility/value of contract, often said to be under $500,000 Specific solution is sought and can be implemented effectively in-house
6.5 PROPOSED MODELS FOR THIS ACCREDITATION SCHEME

When determining the proposed models for the accreditation scheme, we considered all of the steps, actions and outcomes that may be involved in an energy efficiency retrofit of a commercial building. Thereafter, different delivery models were identified within these steps, which may reflect the contractual arrangement between the client and the energy efficiency service provider, the implementation method, the size of the project, and the unique requirements of each project. The risks in an energy efficiency retrofit were identified. These included risks to the project, client and supplier. Thereafter, the key methods of addressing those risks were considered and found to be: ensuring that the process is integrated and outcome-focused and there is one person or company responsible for the project as a whole. Another consideration was the demand for energy efficiency retrofits of commercial buildings that exists in the public and private sectors, now and in the near future. As a result, it was decided to include two key models in this accreditation scheme. The models are described as an Integrated Energy Efficiency Retrofit (figure 2) and an Energy Performance Contract (figure 3). These delivery models were then used to determine the two types of accreditation in the Company accreditation sections, and the processes and skills assessed in the company and individual accreditation schemes respectively.
6.6 KEY QUESTIONS

1. Are there any gaps in the descriptions of the two delivery models, Integrated Energy Efficiency Retrofit (figure 2) and EPC (figure 3)? 2. Do these models reflect the majority of energy efficiency retrofits being undertaken in Australia? This is necessary to ensure that the accreditation meets demand and is fit-forpurpose for existing energy efficiency programs.
6.6.1 K EY STEPS IN AN INTEGRATED ENERGY EFFICIENCY RETROFIT

As described, this figure includes steps and actions in an integrated energy efficiency retrofit. These will vary depending on each projects unique requirements. C LIENT : B USINESS PLANNING
This is the first step, when the client is aware of the potential of energy efficiency, realises they can act and starts planning.
C LIENT : REQUEST FOR PROPOSAL

The client prepares a request for proposal (RFP) so suppliers can submit an informed bid to undertake the work. The RFP includes the scope of the project including project requirements, technologies and level of accuracy for any figures.
C LIENT AND SUPPLIER : S COPING MEETING

This meeting is held between the client and chosen supplier to review the scope of the project and ensure there is a clear understanding of the aspects of the project, objectives, dependencies, responsibilities, budget, timing, limitations, risks and expected accuracy. This meeting is an opportunity for suppliers to make a presentation on existing energy consumption levels and patterns and to elicit information from key personnel.
S UPPLIER : E NERGY REVIEW

The supplier undertakes an energy review, or audit, that establishes an energy baseline; investigates when, where and how energy is used; identifies opportunities to improve that baseline; and evaluates and reports on those opportunities and their energy and/or emissions savings potential and cost effectiveness.
C LIENT AND SUPPLIER : I NTERIM MEETING

The client and supplier then meet to review the outcomes of the Energy Review and shortlist opportunities.
S UPPLIER : B USINESS CASES

The supplier develops buisness cases for the shortlisted opportunities with high level savings, and implementation and measurement and verification (M&V) plans.
S UPPLIER : T ECHNICAL SPECIFICATION

The supplier prepares the design response for the opportunities with refined savings, and implementation and M&V plans.
S UPPLIER : I MPLEMENTATION
The suppier oversess the implementation of the opportunities, including managing contractors and periodic inspections.
S UPPLIER : M EASUREMENT AND VERIFICATION

M&V is undertaken. M&V is a systematic method of quantifying and verifying energy and water savings. There are four key M&V methods. The methods vary in complexity and frequency, which is reflected in the cost of undertaking M&V. The M&V method should reflect each opportunitys complexity and risk.
S UPPLIER : S USTAINING THE PROJECT

The supplier sustains the project with M&V and tuning until the end of the contract. FIGURE 2. STEPS IN AN INTEGRATED ENERGY EFFICIENCY RETROFIT
6.6.2 K EY STEPS IN AN ENERGY P ERFORMANCE C ONTRACT

As described, this figure includes detailed steps, actions and outcomes in an EPC. These will vary depending on each projects unique requirements. S TEPS
Business Planning & RFP Select Proponent Initial Assessment Detailed Assessment: DFS Plan the implementation
A CTIONS
Client defines the project & identifies aspects, dependencies, budget, objectives, timing, limitations & risks. Undertake a scoping study. Decide on funding & delivery method. Client engages with proponents and seeks submissions. Client completes assessment, selects proponent/auditor & engages on suitable contract basis. Auditor is briefed & conducts initial site visit. Agrees measures list & procurement options. Establishes Measurement & Verification (M&V) baseline & high level M&V plan. Auditor conducts detailed analysis & prepares draft report. Client reviews draft report against brief with option for due diligence 2nd opinion. Supplier prepares implementation plan with timeline, project management structure, budget, risk management plan, procurement plan, commissioning plan, M&V plan, & operation & maintenance plan. Supplier identified & procures consultant &/or contractors for detailing of measure design. Designs & documents measures including M&V. Obtains sign off from auditor. Supplier prepares and issues tenders. Selects preferred tenderers. Engages contractors including agreeing terms & code of conduct. Contractor prepares design response including M&V plan. Implementation of additional monitoring if required. Obtain sign off from measure designer & auditor. Manage contractor payments. Manage variations and performance as required.
O UTCOMES
Site information brief including client goals & limitations statement and RFP.
Proponent engaged. Revised budget & plans as required.
Initial site assessment, established baseline & procurement option & high level M&V plan. Detailed Facility Study with detailed M&V plan.
Implementation plan with final M&V plan at accuracy defined in the proposal, timeline, budget & risk management plan.
Detailed Design for Measures Engagement of Contractor Work Specification
Auditor sign off & revised implementation plan including timeline, budget, risk management plan & M&V. Engaged contractor & revised implementation plan including timeline, budget, risk management plan & M&V. Design & auditor sign off & revised implementation plan including timeline, budget, risk management plan & M&V. Revised implementation plan including timeline, budget, risk management plan & M&V. Design & auditor sign off & revised implementation plan including timeline, budget, risk management plan & M&V. Training and handover.
Contract Management
Contractor Implementation
Contractor prepares commissioning plan & work method statements & commences implementation. Design and auditor sign off commissioning plan. As-builts & O&M manual received. Commissioning starts. Designer & auditor review commissioning & operation. Designer & auditor provide works sign off/defects list. Operation & maintenance initiated. Authority approvals received.
Commissioning
Works Sign-Off
Work signed-off.
Ongoing, 12 months to 15 years M&V M&V reports prepared as required under M&V plan. Auditor reviews each M&V report. Auditor identifies activities if measures under-performing. Designer/auditor review operation. Modifications & defects list produced. Contractor rectifies defects, undertakes modifications. End of Defects Liability Period non-EPC. Sign off infrastructure, continue performance management for EPC. Designer, auditor sign off on defects. End warranty. M&V reports prepared & audited & tuning requirements identified if necessary.
Tuning
Operation and maintenance.
Contractor Release
End warranty.
FIGURE 3. STEPS, ACTIONS AND OUTCOMES IN AN ENERGY PERFORMANCE CONTRACT
7. WHAT IS THE PROPOSED APPLICATION PROCESS?

7.1 OUTLINE OF THE PROPOSED APPLICATION PROCESS
Application by individuals and companies
Individual Complete application form and prepare documentation Send application to the administrator with the application fee Company - experienced Select accreditation type Complete application form and prepare documentation Send application to the administrator with the application fee Company - new Select accreditation type Complete application form and prepare documentation Send application to the administrator with the application fee
Administration by administrative body

Register applications Check applications are complete Send applications to assessment panel only to ensure confidentiality
Assessment by panel
Individual Qualifications Experience Skills Referees Interview Company - experienced Experience Processes Project management Quality assurance Company details Referees Company - new Staff qualifications Processes Project management Quality assurance Company details Interview
Decision by panel
Panel advises administrator of decision Additional information required Accepted Not accepted
Communication by administrator
Additional information required Request additional information as directed by the assessment panel Receive, register and send additional information to Assessment panel for review Accepted Advise applicant Provide Code of Conduct and promotional material e.g. logo Add to online register Advise organisations endorsing accreditation Not accepted Advise applicant of decision including feedback from the assessment panel Welcome reapplication when feedback is addressed Advise of appeals procedure
Review by administrator
Individual Review every 3 years based on project outcomes and referee feedback Company - experienced Review every 3 years based on project outcomes and referee feedback Company - new Review within 3 years, when the company is able to demonstrate project outcomes and provide referees Clients Feedback sent to administrator Complaints provided to assessment panel for review against code of conduct
FIGURE 4. PROPOSED ASSESSMENT PROCESS
7.2 ASSESSMENT PANEL

It is proposed that the panel comprises six people from across Australia who have the following expertise or background: 1. 2. 3. 4. 5. 6. Project management expertise Energy efficiency expertise Measurement and verification expertise Public sector client Private sector client Academic
It is proposed that the panel apply for the positions; that the positions have a defined tenure; the positions are paid; and the panel members are listed on the administrators website. A Steering Group will be established to manage the accreditation scheme (see Section 8. Proposed Management) and the Steering Group will be responsible for appointing the panel members. This process aims to ensure that: The panel has the relevant expertise, from the supply and demand sides of energy efficiency, to assess applications from individuals and companies The process is transparent The risks of bias and over-reliance on industry professionals are mitigated The positions are understood to be professional positions with roles and responsibilities The positions will be rotated to provide the opportunity for professionals to take part in the accreditation scheme
7.3 KEY ASPECTS OF THE ASSESSMENT PROCESS

7.3.1 APPLICATION FEE
An application fee will be calculated on a cost recovery basis for the scheme. The aim is to keep the price low to minimise the burden on applicants but also ensure that the accreditation scheme is financially viable in the long-term. A price has not been proposed as part of this document, as it will be determined by the final design of the scheme.
7.3.2 PANEL ASSESSMENT

The application will be sent to two of the assessment panel members for review. The specific panel members selected to review an application will not be known to the applicant. The panel members will review and score the application against the criteria listed in the Individual and Company accreditation sections. If there is a significant discrepancy between the reviews, the panel members will advise the administrator and the application will be sent to a third panel member. Thereafter, the administrator will administer the review until a decision is reached.
The panel members will advise the administrator of their decision, and the administrator will communicate with the applicant. Additional information required: If required by the panel, the administrator will request further information from the applicant and will administer the continuation of the review process by the panel. Accepted: Accepted applicants will be asked to sign a code of conduct and receive a logo for display on their website and documentation. The administrator will advise programs that endorse the accreditation scheme of the newly accredited individuals and companies. Not accepted: If the application is not accepted, the administrator will advise the applicant. The reasons underpinning the decision will be given to the applicant and the applicant will be welcome to apply again when the reasons are addressed. The administrator will also provide the applicant with an appeals procedure, in the event that the applicant is dissatisfied with the decision and reasons.
7.3.3 CONFIDENTIALITY
The applications will be treated as commercial-in-confidence. The applications will only be made available to the panel members reviewing the application and the applications will not be provided to a panel member who may be considered to be a competitor of the applicant.
7.3.4 CODE OF CONDUCT

A Code of Conduct will be prepared including key principles such as: Compliance with the Australian Procurement and Construction Council (APCC) National Code of Practice for the Construction Industry 1977; and Codes of Tendering and/or Codes of Practice and implementation Guidelines from governments and industry associations that may apply to their contracts Requirement that individuals and companies do not participate in collusive or anticompetitive conduct Requirement for professional conduct including a commitment to: o providing objective and accurate advice o providing an outcome-focused and integrated service within professional competencies o clear and honest communication with clients free of false or misleading statements Commitment to ensuring that employees and contractors comply with the Code of Conduct Commitment to use the International Performance Measurement and Verification Protocol (IPMVP) Requirement that records are maintained for projects undertaken while accredited, including client contact details, documents provided to the client and outcomes achieved Recommendation that individuals and companies work with people who hold accreditations from industry bodies that represent the profession or trade that they are being contracted for The purpose of the Code of Conduct will be to encourage professional conduct and provide the basis for a complaints process for clients described below.
7.3.5 C LIENT FEEDBACK

The administrator will include a client feedback form on the website. Clients will be able to provide feedback in writing to the administrator on the performance of an accredited company. If the feedback reports that the company has acted outside the Code of Conduct the administrator will: Record the complaint Provide the feedback form to the company Request a response from the company within 14 days Mediate discussion between the company and the client such that: o If the mediation finds that the company has acted within the Code of Conduct no further action will be taken o If no solution is reached within 14 days, and there is disagreement between the company and the client, a Dispute Resolution process will be managed by the panel The administrator may temporarily suspend the companys accreditation during the dispute resolution process If the company is found to have acted outside the Code of Conduct the administrator will remove the company from the list of accredited companies and advised endorsing programs
7.4 KEY QUESTION

1. Does the proposed assessment process provide you with confidence that it is fair, transparent, confidential and efficient?
8. MANAGEMENT OF THE ACCREDITATION SCHEME

8.1 OVERVIEW
Following is an outline of the proposed management structure of the accreditation scheme. The management structure reflects that of international programs and is designed to ensure the independence and relevance of the accreditation scheme. Feedback is welcome on this proposed outline of the management of the scheme and the members of each group.
8.1.1 OUTLINE OF THE PROPOSED MANAGEMENT OF THE SCHEME

Steering Group
Members Project management expertise Energy efficiency expertise Public sector client Private sector client Responsibilities Develop policies and procedures Strategic review of the scheme in line with changing social context and technical developments Strategic review of the administration body Strategic review of training and Continuing Professional Development (CPD) options Appoint the assessment panel Assess appeals
Administrators
Members Administrative body Responsibilities Develop application forms and materials and administer the application process Process queries Handle complaints Promote the scheme to public and private sector clients and the energy efficiency industry Work with relevant bodies to create training, CPD, mentor programs, and guidelines
Applicants
Companies Prepare applications Undertake CPD Provide feedback Individuals Prepare applications Undertake CPD Provide feedback
Clients
Public sector Feedback Private sector Feedback
Assessment Panel
Members Project management expertise Energy efficiency expertise Measurement and verification expertise Public sector client Private sector client Academic Responsibilities Assess applications Communicate decisions and queries to the administrators
TABLE 6. PROPOSED STRUCTURE FOR THE MANAGEMENT OF THE ACCREDITATION SCHEME
9. LONG-TERM CONSIDERATIONS
9.1 OVERVIEW
As previously described, the initial schemes set the baseline for acceptable practice in the industry and provide recognition for those who are practicing at this level or beyond. After the scheme has been designed and implemented, work needs to be done to support the scheme and prepare a longterm scheme with a defined pathway for individuals and companies who are entering the energy efficiency sector. Key considerations include: Creating demand for the accreditation schemes Developing training and Continued Professional Development (CPD) for new entrants Reviewing the interim scheme and adjusting it as required
9.2 CREATING DEMAND

Demand for the accreditation schemes needs to be fostered with both clients and suppliers. For public sector clients, this involves ensuring that the accreditation schemes are linked to programs and fit-for-purpose for government procurement processes. For private sector clients, this involves raising awareness about the benefits of energy efficiency, how to undertake energy efficiency retrofits and how to procure energy efficiency service providers. In addition, for suppliers, this means demonstrating the benefit of accreditation and providing tools to assist suppliers with the application process and promoting their accreditation to current and potential clients.
9.3 DEVELOPING TRAINING AND CONTINUED PROFESSIONAL DEVELOPMENT

A clear pathway needs to be developed for new companies and individuals who would like to supply energy efficiency services and become accredited, and a means of continuing professional development (CPD) for those who are accredited. Options include: Industry-based training courses CPD requirement as part of the accreditation Mentor program Masters programs tailored by tertiary institutions Guidelines and manuals Its valuable to identify preferred options early, program development takes time and resources.
9.4 REVIEWING THE SCHEME AND ADJUSTING AS REQUIRED

All schemes should undertake periodic reviews to ensure that they are effective, efficient, meet demand and foster the development of the sector. The review may take into consideration best practice, international accreditation schemes and new technologies.
Depending on the outcome of the review, there may be an opportunity to expand the accreditation scheme into additional sectors or environmental aspects, or categorise the current scheme to include specific technologies, delivery models or even customer feedback. Overall, the review, alongside the work on creating demand and developing training and CPD will direct the development of a long-term scheme. The following diagram provides an indication of the work that needs to be completed and timeframes. It is recommended that this work be completed in consultation with energy efficiency clients, suppliers and industry bodies, with consideration for government programs and evolving training courses developed privately and by industry bodies and academia. Feedback is welcome on the proposed considerations for the long-term scheme.
2011
Design and implement initial schemes Company Assessment based on: - Experience - Processes - Project management - Quality assurance - Company details - Referees Individual Assessment based on: - Qualifications - Experience - Skills - Referees - Interview Create demand for accreditation Public sector - Link to energy efficiency programs for the private sector - Link to procurement processes Energy efficiency industry - Promote accreditations to potential applicants Private sector - Promote accreditations - Educate on best practice energy efficiency retrofit process
2012
Continue implementing initial schemes Company Assessment based on: - Experience - Processes - Project management - Quality assurance - Company details - Referees Individual Assessment based on: - Qualifications - Experience - Skills - Referees - Interview Develop training and continued professional development Options to explore and develop - Training - CPD - Mentor program - Standards - Guidelines Create demand and develop links with government and industry Create demand - Government programs - Energy efficiency industry - Private sector Develop links - Associated accreditations - Standards - CPD with other industry bodies
2014
Review Review
2015
Implement stage 2 scheme Company Accreditation may be categorised into: - Sectors - Technologies - Energy efficiency delivery models Individual Accreditation may be categorised into: - Levels of project management - Sectors Deliver training and continued professional development Training and CPD Established pathway for new entrants and CPD - Training - CPD - Mentor program - Standards Reinforce demand and links with government and industry Links developed - Associated accreditations - Standards - CPD
FIGURE 5. CONSIDERATIONS IN THE LONG TERM
10. THE NEXT STEPS

10.1 PROVIDING FEEDBACK
The Energy Efficiency Council, as administrators of the consultation process, is seeking feedback on this consultation document so that the proposed schemes can be refined in line with current practice and demand from the public and private sectors. Feedback may be provided in writing or via public consultation sessions as detailed below.
10.1.1 CONSULTATION DOCUMENT AND UPDATES

This document and updates on the consultation process are available on the Energy Efficiency Council website: http://www.eec.org.au/node/192.
10.1.2 FEEDBACK IN WRITING

The closing date for feedback is COB Friday 19 August 2011. Feedback may be provided in writing to: Lisa de Kleyn, Manager Projects and Engagement, Energy Efficiency Council Level 1, 490 Spencer Street, West Melbourne, VIC, 3003 [email protected]
10.1.2 PUBLIC CONSULTATION SESSIONS

You are welcome to attend a public consultation session to discuss the key aspects of the proposed schemes, which are detailed in sections 4, 5, 6 and 7.
City Date Time Location Melbourne Friday 5 August 2011 9.00am 11.00am Ether Conference Centre Arbour Room 265 Little Bourke St Melbourne Monday 1 August 2011 Sydney Tuesday 9 August 2011 3.00pm 5.00pm University of Technology Sydney, Aerial Function Centre, Jones Room, Level 7, 235 Jones St, Ultimo Wednesday 3 August 2011 Brisbane Wednesday 10 August 2011 3.00pm 5.00pm Marque Hotel Brisbane Treasury Room 103 George Street Brisbane Thursday 4 August 2011
RSVP
Please RSVP to Lisa de Kleyn at [email protected] or 03 8327 8425.
10.2 KEY CONTACTS

Were very interested to receive your feedback on this project and look forward to working with you on progressing energy efficiency in Australia. Lisa de Kleyn Manager, Projects and Engagement Energy Efficiency Council [email protected] 03 8327 8425 Rob Murray-Leach Chief Executive Officer Energy Efficiency Council [email protected] 03 8327 8423
APPENDIX 1. INDIVIDUAL SKILLS AND HOW THEY WILL BE

ASSESSED IN THE PROPOSED SCHEME
The following table demonstrates the highest level and ideal individual for consideration during public consultation. R ETROFIT P ROJECT M ANAGER SKILLS
1. Project management a. Project management framework (construction)
A SSESSMENT
Describe the key components of construction project management must identify scope, cost and procurement, time, risk, contract management and safety Provide examples of recent project definition/plans Describe how the project milestones are identified and prioritised. Explain how to determine time periods required for delivery Describe budget planning and cost estimating factors Describe alternative procurement methods and when to use each Describe at least one governance structures used on recent projects and explain benefits and disadvantages of each Describe the importance and benefits of good communication on projects and different styles of communication for different audiences/outcomes Describe experience in working with stakeholders at multiple levels including clients and site teams. Explain how you would communicate the advantages of energy efficiency to senior management. Explain how you have incorporated the clients knowledge and experience into your project Describe the components of a recent project progress report Describe previous experiences in facilitating risk management workshop on a project. Highlight the outcomes and effectiveness of risk mitigation actions and in particular the identification and treatment of latent conditions Describe past experiences and methodology of working with clients to determine needs, constraints, functional requirements and client objectives Examples may include organisational Sustainability Plans and programs, as well as property or portfolio asset management plans, energy management plans and leasing plans Describe experiences of using and managing a performance management process. Highlight problems and resolutions of using this framework Describe the available industry contract agreements available, as well as describing the process for assessing payment claims, recording variations, etc Describe the process for evaluating the feasibility/viability of a project during concept stage, including the meaning and purpose of carrying out a NPV/cost benefit analysis
b. c.
Scope definition and project planning Implementation planning and timeline management
d. e. f.
Budgeting, cost planning and management Procurement planning and tendering Project governance and cross functional team work/management Communication skills
g.
h.
Stakeholder engagement and support
i. 2.
Report writing
Risk management: Ability to identify risks (project and organisational) and apply a risk management framework
3.
Determining objectives: For example setting SMART objectives (Specific, Measureable, Achievable, Realistic and Timely) covering both client and project objectives
4.
Performance management: Contractor/employee performance management Contract management: Understanding of contract management, payment processes, variation and RFI procedures, and legislative requirements (Security of Payments Act) Cost benefit analysis: Good understanding of cost management including basic project cost benefit analysis approaches such as energy efficiency finance and financing options e.g. NPV, ROI, IRR, payback periods and where to find information
5.
6.
R ETROFIT P ROJECT M ANAGER SKILLS

7. 8. Whole of system and services thinking: Adopting an integrated approach (not getting stuck in the detail) Awareness of relevant local standards, energy efficiency programs and grants Understanding of energy efficiency retrofit delivery/procurement pathways e.g. audits, EPCs
A SSESSMENT
Describe past experience of using/applying a whole of building/system approach and the related outcomes Describe the expected local authority and AS applicable in a retro-fit project (BCA, DA and CC requirements, Electrical/Gas and water standards) Describe the procurement options available to clients, together with the benefits and risks of each pathway. Describe experience with at least one of the options and the outcomes of following that option Describe the type of data and documentation to be collected. Explain the role of modelling and energy analysis in the definition of an energy efficiency project Describe past experience in overseeing the energy audit process, highlighting how the information has been used in developing the project scope/ECMs and delivery staging and timing
9.
10. Energy consumption collection, billing, modeling and analysis: Basic understanding of energy consumption collection, billing, modeling and analysis in commercial buildings including tariff structures and relevant programs such as Tax Breaks for Green Buildings 11. Reviewing audit reports: Demonstrated ability to: a. identify if any obvious opportunities appear to have been overlooked. b. provide feedback to the auditor/requesting changes or additions as appropriate c. query assumptions behind ECMs as appropriate 12. Understanding energy efficiency technology and engineering processes and how they interact including: a. Lighting b. HVAC c. Hydraulics and pneumatics d. Control systems and program logic optimisation e. Building envelope and fabric changes f. Compressed air 13. Providing for ongoing maintenance
Describe at least two engineering solutions, technologies or processes that have been successfully used on projects in the past two years and what was the result in terms of energy efficiency outcomes
14. Understanding barriers and justification of project implementation including: a. tenant/landlord functions and relationships b. risk assessment of action vs. inaction including whole project or individual aspects c. energy efficiency/reduced outgoings valuation implications e.g. ensuring outcomes enhance and dont hinder productivity d. understanding the need to align with organisational sustainability/environmental programs and policies, strategic asset management plan and implications on project approvals and risks e. understanding of maintenance and facility management practices f. understanding and appreciation of the need to interface with existing systems and practices 15. Understanding behaviour change options to achieve energy efficiency: Demonstrated understanding of the benefits and appropriateness of using the following a. Owner and occupant behavioural factors b. Maintenance and operational factors c. Identifying the need for training programs and determining training content requirements 16. Understanding M&V (monitoring/measurement and verification): Understanding M&V including options, and its role in verifying outcomes
TABLE 7. INDIVIDUALS - DETAILED ASSESSMENT CRITERIA OF SKILLS
Describe experience in coordinating the delivery of the monitoring and tuning on a completed project during DLP Describe past experience in determining project prioritization, preparing project justification and presenting the financial benefits, operational benefits and non-tangible benefits of a potential project
Describe experience in the implementation of soft improvement measures and provide copies of reports or project plans/actions for the implementation of soft/non-mechanical solutions
Describe experience in coordinating the monitoring and tuning on a completed project during DLP and highlight difficulties and how these were overcome

Ccreditation For Ndividuals and Companies Providing Integrated Energy Efficiency Retrofit Services

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ACCREDITATION FOR INDIVIDUALS AND

COMPANIES PROVIDING INTEGRATED ENERGY EFFICIENCY RETROFIT SERVICES

CONSULTATION PAPER FOR

PREPARED BY THE ENERGY EFFICIENCY COUNCIL JULY 2011

July 2011 Page 2 of 35

July 2011 Page 3 of 35

1.2 THE PROJECT

1.3 USING THIS CONSULTATION DOCUMENT

SECTION 2: THE CONTEXT

SECTION 3: PROJECT OVERVIEW

SECTION 4: HOW WILL COMPANIES BE ASSESSED IN THE INITIAL ACCREDITATION SCHEME?

July 2011 Page 4 of 35

SECTION 5: HOW WILL INDIVIDUALS BE ASSESSED IN THE INITIAL ACCREDITATION SCHEME?

SECTION 6: WHAT DOES AN ENERGY EFFICIENCY RETROFIT INVOLVE?

SECTION 7: WHAT IS THE PROPOSED APPLICATION PROCESS ?

SECTION 8: MANAGEMENT OF THE ACCREDITATION SCHEME

SECTION 9: LONG TERM CONSIDERATIONS

SECTION 10: THE NEXT STEPS

July 2011 Page 5 of 35

2.2 DEMAND FOR ENERGY EFFICIENCY SERVICES IS INCREASING

July 2011 Page 6 of 35

2.2.2 PRIVATE SECTOR

2.3 ENERGY EFFICIENCY RETROFITS ARE COMPLEX AND REQUIRE EXTENSIVE

July 2011 Page 7 of 35

2.4 THESE SKILLS ARE PRIMARILY PROCURED

2.5 THE BENEFITS OF ACCREDITATION SCHEMES

July 2011 Page 8 of 35

Research for the Energy Services Sector

July 2011 Page 9 of 35

Design the accreditation scheme

Establish a project plan and budget to design the scheme

Outside the scope of this project

Implement the accreditation scheme

Design the accreditation scheme Implement the accreditation scheme

FIGURE 1. SCOPE OF THIS PROJECT

July 2011 Page 10 of 35

3.2.2 K EY PRINCIPLES FOR THE SCHEME

July 2011 Page 11 of 35

3.3 CONSULTATION PROCESS

July 2011 Page 12 of 35

4. HOW WILL COMPANIES BE ASSESSED IN THE INITIAL ACCREDITATION SCHEME ?

4.1.1 OVERVIEW OF ASSESSMENT CRITERIA FOR EXPERIENCED COMPANIES

4.1.2 OVERVIEW OF ASSESSMENT CRITERIA FOR NEW COMPANIES

July 2011 Page 13 of 35

4.2 DETAILED ASSESSMENT CRITERIA BY DELIVERY MODEL

Experienced companies: Experience with energy efficiency retrofits

New companies only

Processes governing an energy efficiency retrofit

July 2011 Page 14 of 35

E NERGY P ERFORMANCE C ONTRACT

Project management capability Quality assurance system

Confidential financial assessment (carried out by external financial assessor)

TABLE 1. COMPANIES - DETAILED ASSESSMENT CRITERIA

July 2011 Page 15 of 35

4.2.2 M EASUREMENT AND V ERIFICATION

Whole Facility (Building)

TABLE 2. OVERVIEW OF THE IPMVP MEASUREMENT AND VERIFICATION OPTIONS

July 2011 Page 16 of 35

4.3 ONGOING ACCREDITATION