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40 PROPOSAL TO REVISE ENERGY EFFICIENCY REQUIREMENTS OF THE BUILDING CODE OF AUSTRALIA FOR COMMERCIAL BUILDINGS the collective of market barriers that impede voluntary adoption of increased energy efficiency. The COAG Intergovernmental Agreement signed 2 July 2009 (COAG 2009d) also highlights the government’s move towards mixing regulatory strategies — among them are information and labelling approaches. For example, governments have committed to mandatory disclosure which imposes an obligation to disclosure information about a building’s actual energy efficiency. Quasi-regulation Quasi-regulation often involves industry-led approaches that are less formal than regulation, but are stronger than self-regulation. They often involve industry or a party other than government monitoring and enforcing a code of conduct. The <strong>Australian</strong> Competition and Consumer Commission (ACCC) notes caution must be used when deciding if a code of conduct is appropriate. Ineffective (mandatory) codes may place compliance burdens on business without necessarily achieving any realisable benefits (ACCC 2005). Effective quasi-regulation codes require highly cohesive industries characterised by low rates of entry and exit. The building supply chain is recognised as being highly fragmented and disjointed. The supply of energy efficient buildings requires cooperation up and down the supply chain. Effective codes of conduct require bridging the various suppliers — from the point of design to construction. Moreover, commercial buildings often house several economic activities and occupants — all with different preferences and electricity demand profiles. This heterogeneity adds to the complication of clear preference signals being provided to influence building supply. The proposed changes amend existing regulation. The infrastructure to support awareness and compliance with the BCA is already in place. A code (or similar) approach would make aspects of the existing infrastructure redundant without necessarily achieving greater compliance. DTS versus alternative solutions The ABCB has advised that this RIS should specifically assess only the proposed DTS measures for commercial buildings. This was also the approach used in the 2006 RIS for commercial buildings (ABCB 2006a) (see box 3.3). As mentioned before, DTS is a prescriptive approach which provides simplicity for compliance. It involves establishing a set of www.TheCIE.com.au
PROPOSAL TO REVISE ENERGY EFFICIENCY REQUIREMENTS OF THE BUILDING CODE OF AUSTRALIA FOR COMMERCIAL BUILDINGS 41 minimum provisions that must be met. DTS is considered more userfriendly and easier to administer and enforce. In contrast, an Alternative Solution provides a greater degree of flexibility. Alternative Solutions allow for creative design that takes into account the fundamental design of the building (for example, orientation, etc) and the specific conditions of the building’s location. Compliance is generally software-verified but the option of developing an alternative <strong>Building</strong> Solution is also available. It is more extensive and typically referenced by the BCA. In other words, the potential permutations of solutions that meet the Performance Requirements are numerous. At the same time, it is thought to better facilitate innovation (relative to DTS). The extent to which Alternative Solutions are more cost-effective is case specific. It is generally viewed that the software approach is adopted only where they would deliver greater utility — for example, lower costs or delivery of certain amenities. 3.3 DTS versus Alternative Solutions ABCB (2006b) provides a discussion of DTS versus Alternative Solutions. It states: The analysis of the proposals contained in this RIS follows usual practice in focusing on the impact of the DTS Provisions. This reflects the fact that the DTS Provisions are the most widely adopted means of achieving compliance with the Performance Requirements, and also that the DTS Provisions constitute the only known detailed provisions capable of ex ante analysis as required in a RIS. The effect of adopting this DTS focused approach may be to somewhat over-estimate the likely construction costs, since Alternative Solutions will tend to be adopted only to the extent that cost savings can be made. Alternative DTS requirements This RIS only assesses the DTS requirements as proposed by the ABCB (ABCB 2009b). It is of course, feasible that the proposed changes could be implemented in a variety of ways. For example, the changes could apply in only certain climate zones or jurisdictions. Further, it is plausible that an alternative implementation of the proposed amendments could produce a preferable net impact on the community. Alternative approaches are not assessed here. Rather, this document provides a benchmark for industry and stakeholders to consider how alternative approaches could be devised, and if it would be appropriate to do so. www.TheCIE.com.au
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