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August 2014 Clean Energy Bundaberg Energy Transition Strategy for the Bundaberg

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August 2014

Clean Energy BundabergEnergy Transition Strategy for the Bundaberg Region

Table of Contents

1. Executive Summary..........................................................................................................3

2. Vision................................................................................................................................4

3. Goals.................................................................................................................................4

4. Objectives.........................................................................................................................4

5. Stakeholders.....................................................................................................................5

6. Bundaberg Region Clean Energy Working Group............................................................6

7. Priorities for a Successful Clean Energy Transition..........................................................8

Manage energy demand and consumption..........................................................................9

Reduce reliance on non-renewable energy sources............................................................9

Encourage clean energy investment and diversification......................................................9

Promote community education and engagement.................................................................9

8. Phased Approach for a Clean Energy Transition............................................................10

Phase I – Internal clean energy initiatives..........................................................................12

Phase II – External stakeholder engagement.....................................................................14

Phase III – Clean energy business attraction.....................................................................15

Phase IV – Regional engagement......................................................................................16

9. Inter-departmental Collaboration....................................................................................18

Major Projects.....................................................................................................................18

Procurement.......................................................................................................................18

Fleet Services.....................................................................................................................19

Asset Maintenance Services (AMS)...................................................................................19

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1. Executive Summary

The energy we consume has become an integral part of our everyday lives and

fundamentally influences how we live, communicate, work, and entertain ourselves. Energy

drives our society – from individual households to our entire economy, it provides our most

basic necessities and acts as a catalyst for continued innovation and progress.

However, energy prices are on the rise and are predicted to increase in the coming decade.

In conjunction with our increased reliance, the threat of higher energy prices represents a

significant risk to our energy security and ability to absorb dramatic swings in price based on

a finite supply and increasing demand. Furthermore, continued dependence on carbon-

based energy sources reinforces an energy policy that overlooks opportunities that support

environmental consciousness and our responsibility as stewards of our natural environment.

In response to these issues, Bundaberg Regional Council is building a plan to help our

region take hold of clean energy opportunities and transition away from non-renewable

energy sources. This plan represents the goals and vision for a self-sustaining region with

energy and resource management as a top priority. In particular, this document provides a

roadmap to achieve the following outcomes:

Implement clean energy policies that reduce Council’s overall energy consumption

and related operational costs based on clear, measureable targets.

Provide leadership that raises consciousness around clean energy adoption.

Transition from non-renewable energy sources towards emerging clean technologies.

Support economic diversification through carefully planned energy investment.

Expand Council’s clean energy practices to engage business and industry throughout

the Bundaberg Region in ways that are meaningful to promote behavior change and

uptake of clean energy technology/practices.

Understand our environmental impact and use our knowledge to make

environmentally consciousness decisions to preserve our natural resources.

Our growing need for a more cost effective, resilient and environmentally conscious future

naturally supports a transition to improved energy and resource management. This strategy

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sets the direction for delivering new and progressive energy management policies and

measuring the resulting benefits in the years to come.

2. Vision

To build an environmentally conscious, resilient region through the use of clean energy

technologies, efficient energy and resource management, and broad-based business and

community participation.

3. Goals

Implement clean energy policies that reduce Council’s overall energy consumption

and related operational costs based on clear, measureable targets.

Reinforce Bundaberg Regional Council’s commitment and leadership in clean energy

related initiatives to raise consciousness and adoption of similar policies throughout

the Bundaberg Region.

Promote clean energy policies and the use of renewable energy sources to mitigate

future risk related to the supply and demand of non-renewable fuel sources.

Build awareness among our region’s industry, business and broader community to

increase knowledge and related clean energy investment.

Expand Council’s clean energy practices to engage business and industry throughout

the Bundaberg Region in ways that are meaningful to promote behavior change and

uptake of clean energy technology/practices.

Preserve and protect our natural environment through environmentally conscious

energy management practices and efficient resource utilisation.

4. Objectives

Reduce Council’s annual electricity consumption/demand and related operational

costs by a pre-determined percentage (to be defined).

Achieve a Council-wide target of 5% fuel cost savings through Fleet Services.

To be recognised as one of Planet Footprint’s Australian Gold Standard Councils

who are committed to energy efficiency and environmental responsibility by 2020.

Develop an educational energy management program for residents and businesses

to follow and set a target for the number of participants.

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Collaboratively work with Council’s retail energy suppliers to reduce energy demand

and consumption (long-term).

5. Stakeholders

The following is a list of stakeholders with whom Council should communicate and engage

when developing its energy transition strategy and facilitating supporting initiatives:

Internal External Councilors

Executive management team

Economic Development

Parks, Sport & Natural Areas

Venues and Facilities

Fleet Services

Asset Maintenance Services

Procurement

Water and Wastewater

Major Projects

Waste Management

All Council staff to play a part of

helping Council to achieve energy

and resource efficiency goals

Regional business and industry

Residents

Community and not for profit

organisations

Clean tech businesses and investors

BMRG

WBBROC

BIEDO

CQUniversity

Electric retailer (Ergon)

CCIQ ecoBiz Queensland

Federal, state, and other local

governments

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6. Bundaberg Region Clean Energy Working Group

The clean energy working group has been formed to facilitate collaboration between key stakeholders within Council and throughout the

Bundaberg Region. The following stakeholders are included in the Clean Energy Working Group:

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Collaboration within the Clean Energy Working Group will assist with sharing information

between stakeholders on current projects, as well as distributing work across resources for

future priorities and initiatives. Current and future projects among external stakeholders may

revolve around the following areas:

ecoBiz QueenslandecoBiz provides programs and guidance to give Queensland businesses a competitive

advantage by helping them save money through reducing waste, water and power use,

becoming more sustainable, and releasing capital to fund growth and other initiatives.

Burnett Inland Economic Development Organisation (BIEDO) – Clean and CleverClean and Clever is a strategic regional program. In its current design framework, Clean and

Clever is envisioned to have a 10 year life-span. Ultimately, Clean and Clever will assist the

Burnett Inland to transition to an innovative, vibrant Green Economy, aligned with national

and global priorities for economic activity that is sustainable, responsibility and inter-

connected with social and environmental imperatives.

CQUniversityBundaberg Regional Council may explore potential ways to collaborate with CQUniversity

and leverage students and faculty for research and/or project participation.

Retail Energy ProvidersBundaberg Regional Council will be looking to partner with retail energy providers to identify

options for implementing clean energy technology (e.g. solar panels), as well as encourage

energy conservation and demand management programs.

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Energy Transition Actions

Manage energy

demand & consumption

Promote community education & engagement

Encourage clean energy investment

Reduce reliance on

non-renewable

fuels

7. Priorities for a Successful Clean Energy Transition

Bundaberg Regional Council has identified priority actions related to a successful clean

energy transition for the Bundaberg Region. These high level priorities highlight the areas of

opportunity where collective attention is needed.

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Manage energy demand and consumption

In response to increasing energy consumption and cost, a top priority will be for Council to

improve overall energy management practices. Short term priority will focus on internally

facing initiatives that help Council better manage energy consumption and demand, as well

as associated operational costs. As Council’s internal knowledge base and policies become

more established over time, Council will be better prepared to encourage and foster

implementation throughout the broader community.

Reduce reliance on non-renewable energy sources

Council must take a proactive stance in mitigating present and future risk associated with

reliance on non-renewable energy sources. These actions will help to reduce the impact of

future price volatility, as well as deliver the environmental benefits associated with clean

technology solutions. Particular consideration should be given to exploring viable renewable

energy sources and the long term benefits such solutions can provide, including a secure

source of clean, renewable energy, reduced ongoing costs, and positive impacts on the

environment.

Encourage clean energy investment and diversification

As part of Council’s long-term corporate plan and overarching economic development

strategy, Council supports opportunities around emerging clean technology as a means to

encourage economic investment and resilience through diversification. Council’s priority will

be to consider development of clean energy infrastructure that is financially viable, promotes

societal benefits, and demonstrates environmental responsibility.

Promote community education and engagement

Support for Council’s energy transition plan for the Bundaberg Region requires grassroots

support from business, industry, and the broader community. As part of this strategy, Council

must use education as a means to create awareness, raise the level of engagement, and

ultimately increase adoption among members of the community.

Education Awareness Engagement Adoption

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8. Phased Approach for a Clean Energy Transition

The priority actions identified above will vary by complexity, stakeholders involved, level of

investment, as well as the length of time needed to enact positive change. Council has

therefore positioned its energy transition strategy to address our region’s challenges through

a phased approach that accounts for these variables. These phases include:

Phase I Implementing internal clean energy initiatives

Phase II Engaging external stakeholders

Phase III Attracting clean energy business

Phase IV Engaging the broader region and community

Throughout each of these phases, Council will identify and take the necessary actions to

confront these challenges and seek specific outcomes that foster an effective energy

transition.

It is important to note that these phases do not run sequentially; the end of one phase does

not signal the beginning of the next. Rather, these phases are meant to run in parallel to

provide continual leverage and support for confronting challenges across all phases.

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Phases of Bundaberg’s Clean Energy Transition Strategy

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The following sections highlight each of the four phases of Council’s clean energy transition

plan. Within each of the phases are the supporting initiatives, which are grouped by

Council’s clean energy transition priorities, found above on page 8. For information on

supporting actions, please reference the Bundaberg Regional Council Clean Energy Action

Plan.

Phase I – Internal clean energy initiatives

Phase I covers Council’s internal energy management policy and related clean energy

initiatives. Throughout this phase, Council will define the scope for energy efficiency

management, establish the means for measuring energy consumption and cost, set

achievable on reduction goals, and implement energy management solutions to achieve

these goals. Initiatives under this phase will focus on financial savings and the capacity to

reduce ongoing operational costs. These initiatives will reinforce Council’s commitment and

leadership in employing clean energy initiatives through proactive adoption and

implementation.

Manage energy demand and consumption

Develop a clean energy action plan to define internal scope across relevant Council

departments for energy efficiency initiatives, measurement and improvement.

Leverage Planet Footprint to report on and analyse Council’s energy consumption

and related operational costs to determine where efficiencies can be gained.

o Over time, Council may also consider more advanced reporting and analysis

capabilities that join energy consumption data to various production data (e.g.

volume of water pumped to service a communities, the amount of storm water

processed through Council’s storm water drainage systems, etc.).

Develop, implement, and measure energy reduction initiatives for achieving

consumption targets and reduction goals.

Provide “report card” audits on Council's annual energy cost and consumption; where

possible benchmark consumption against other Councils.

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Reduce reliance on non-renewable energy sources

Pursue solar power technology for installation on energy-intensive Council facilities

and sites.

Consider developing transport related measures that focus on a shift to more

sustainable travel. Possible areas of focus include:

o Changing work practices and driver behavior to reduce fuel consumption and

increase operational efficiency.

Where fuel reduction may not be feasible based upon operational

requirements, goals should be aligned with operating vehicles within

their optimal fuel consumption range.

o Optimisation of fleet vehicles based upon vehicle type and related

driving/operational requirements (e.g. petrol, diesel, hybrid, or electric).

In line with Bundaberg's Digital Economy Strategy, utilize technology/digital tools to

increase operational efficiency through:

o Telecommuting and teleconferencing, particularly the implementation of

desktop collaboration/video capability to reduce travel.

o The ability to have remote control over operations (e.g. sensors for water and

waste water network controls)

Encourage clean energy investment and diversification

Establish a Clean Energy Investment sinking fund, whereby 40% of the cost savings

from clean energy related initiatives is retained within the fund (with the other 60% of

savings returned to consolidated revenue). Disbursement of these funds to internal

Council departments will be contingent upon forthcoming guidelines and is reserved

for capital expenditure related to clean energy related investment/initiatives.

Develop a policy whereby the appropriate representatives from Council’s Clean

Energy Working Group provide input into energy efficiency design of major projects.

Investigate the potential for natural gas truck/bus fleet (long term). This technology is

relatively early in its lifecycle development, and the supporting infrastructure (e.g. fuel

station) comes at a substantial cost. This opportunity is to be considered at a later

phase when Council’s clean energy capabilities and related infrastructure are able to

support such investment.

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Explore opportunities around energy efficient fleet vehicles, including battery

powered equipment.

Promote community education and engagement

Council to educate staff regarding energy consumption and resource management of

its buildings, facilities and equipment.

o Provide energy efficiency tips and recommendations that can be integrated

into daily work routines.

o Proactively communicate energy reduction targets and provide departmental

scorecards on energy consumption. For example, report on consumption

levels and costs for electricity usage, vehicle fuel, etc.

o Inclusion of DROP principles within day to day operations (e.g. transition to

digital rather than paper-based records)

Promote relevant internal Council initiatives and successes to external audiences

that demonstrate Council’s leadership in clean energy policy adoption.

Phase I Outcomes

Reduce Council’s operation costs related to energy consumption.

Reinforce Council’s commitment and leadership in clean energy related initiatives

through proactive adoption and implementation.

Council staff to become increasingly aware of energy efficient policies and implement

actions into daily work routines.

Implementation of appropriate clean energy solutions where significant energy

efficiencies can be gained.

Preserve and protect our natural environment through environmentally conscious

energy management practices and efficient resource utilisation.

Phase II – External stakeholder engagement

Phase II will build upon Council’s internal efforts in Phase I and focus on externally-facing

clean energy initiatives that involve stakeholders throughout the region. The desired

outcome from these initiatives is to form collaborative relationships with key stakeholders to

further progress the visibility and importance of regional clean energy engagement.

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Manage energy demand and consumption

Council to find collaborative ways to partner with retail energy providers for

implementing energy conservation and demand management programs.

Encourage clean energy investment and diversification

Partner with external stakeholders such as CCIQ ecoBiz Queensland and BIEDO to

identify and promote clean energy related technology and initiatives.

Reduce reliance on non-renewable energy sources

Investigate opportunities to aggregate regional business and industry resources to

provide access to low-cost, renewable energy sources (i.e. biofuel).

Promote community education and engagement

Support education and adoption of sustainable building design and retrofitting

practices.

Promote clean energy projects that deliver meaningful results for business and

industry located throughout the Bundaberg Region.

Phase II Outcomes

Build awareness among our region’s business and industry to increase knowledge

and adoption of clean energy related technology and policies.

Engage business and industry in clean energy related initiatives to promote behavior

change and uptake of clean energy technology/practices.

Establish relationships with key external stakeholders and collaborate on clean

energy related initiatives that bring meaningful outcomes to the region.

Phase III – Clean energy business attraction

The Bundaberg Region Economic Development Strategy 2014-2024 reinforces the need for

business and industry attraction for new and innovative investment opportunities. Moreover,

Council acknowledges the importance of embracing sustainable business practices and will

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support innovative projects and investment to achieve economic resilience and

environmental sustainability. Council fully supports clean energy investment as part of its

overall business attraction strategy.

Reduce reliance on non-renewable energy sources

Expand clean energy and solar implementation program goals to investigate the

feasibility of other large-scale clean energy production that includes solar technology.

Discuss the merit of a feasibility report regarding other large scale renewable energy

sources (e.g. biodiesel, wind, etc.), as well as the opportunities and challenges that

alternative energy generation present to the Bundaberg Region.

Encourage clean energy investment and diversification

Develop a business attraction strategy built around Council’s vision for a resilient and

diversified region supported by clean energy investment.

Investigate and plan for long-term “clean-tech” related opportunities associated with

natural gas as an alternate energy source to future development.

Identify opportunities to strengthen the presence of clean energy businesses

throughout the Bundaberg Region.

Promote community education and engagement

Promote clean energy projects and policies that deliver meaningful results for

business and industry located throughout the Bundaberg Region.

Phase III Outcomes

Increased regional investment in clean energy technology from business and

industry.

Identification of established and emerging clean energy technologies that will help

encourage new and innovative investment opportunities.

Phase IV – Regional engagement

Phase IV encompasses the region as a whole in relation to Bundaberg’s energy transition

plan. Having set Council’s foundation in Phase I and subsequently built relationships with

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external stakeholders in Phases II and III, the objective of this phase is to leverage this

momentum to engage the broader community and promote wide-scale adoption.

Manage energy demand and consumption

Develop region-wide education and community engagement programs to help

residents understand the importance and benefits of engaging in energy efficiency

practices.

Reduce reliance on non-renewable energy sources

Develop sustainability workshops to address energy transition and resilience issues

including, but not limited to solar power generation, solar hot water, and household

energy efficiency.

Promote active transport (walking and cycling), by developing a network of cycle

routes and pedestrian paths.

Encourage clean energy investment and diversification

Stimulate community wide domestic and commercial uptake of solar and clean

energy related technologies

Promote community education and engagement

Develop and implement information, training, and communication programs to foster

energy and waste management capacity of the community, industry and businesses.

o Partner with other local, state and federal campaigns to collaborate and/or

provide complimentary programs for increased engagement in the Bundaberg

Region (e.g. Sunshine Coast LivingSmart, EcoBiz, etc.)

Implement organic waste minimisation programs

Support community education and awareness of sustainable building design and

retrofitting practices

Phase IV Outcomes

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Increased awareness and broad-based participation among our region’s communities

to improve knowledge and adoption of clean energy related technology and policies.

9. Inter-departmental Collaboration

Major Projects

Major Projects delivers large scale assets and infrastructure improvements on behalf of

other Council departments. As future projects are undertaken, it will become increasingly

important for both Major Projects and individual departments to become aware of clean

energy solutions and the benefits of integrating them into upfront design and construction.

A continual challenge will be justifying the initial capital outlay for energy efficient technology

in these major projects. Council must consciously commit to making provisions in annual

budgets for clean energy related investment. The opportunity cost for not integrating clean

energy technology at the outset of these projects becomes significantly larger when

compared to higher annual operating costs, lost savings that could otherwise be applied to

other projects, as well as the costs for retrofitting old facilities/infrastructure. Long-term

project planning should also include consideration for longevity of facilities, overall efficiency

(e.g. ongoing maintenance), whole of life costs, recurring budgetary considerations, etc.

Procurement

Council’s procurement policy should include elements that support its overall clean energy

strategy. Furthermore, these policies should reinforce the process for procuring products and

services using a standard approach to evaluate criteria around clean energy

solutions/technology. The procurement process may include clean energy policies that

specifically highlight:

Value for money – sustainability factors, whole of life costs, etc.

Open and effective competition – consideration of all suppliers, particularly those

that have adopted clean energy as a core part of their business or service offering.

Development of competitive local business and industry – consideration of local

companies with clean energy/sustainable service offerings to help establish related

industry in Bundaberg.

Environmental protections – inclusion of environmentally conscious criteria.

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In addition, education/training relative to the procurement policies around energy efficiency,

clean energy practices, and sustainability would further aid in Council’s efforts to

communicate its policies with external vendors and reinforce the heightened importance that

Council places on environmental responsibility.

Furthermore, Council is currently working with LocalBuy to review Council’s electricity

contracts and ensure that optimal tariffs are applied to the various areas of Council

operations. This review and collaboration should continue and be conducted on a periodic

basis as deemed necessary.

Fleet Services

Fleet Services manages all business related to the purchase, hire, maintenance and

disposal of Council owned vehicles. Fleet Services hires vehicles to all departments of

Council, which includes light vehicles, heavy vehicles, plant, yellow plant and maintenance

equipment.

There is significant opportunity around GPS tracking devices and the data that can be

captured, reported and analysed. This technology is currently being trialed along with

custom reports that will provide detailed insight into vehicle equipment usage, productivity,

and efficiency. It should be stressed that the intent of this technology is to identify how

Council can improve overall safety and operations, while reducing and financial expenditure.

Employee “buy-in” will be critical to increased efficiency and will only be possible through

clear communication to employees as to why this technology is being deployed, the benefits,

and what it means to Council and employees. Based upon pilot results, Council may

consider developing a business case for deploying this technology to additional vehicles

within its overall fleet.

Asset Maintenance Services (AMS)

AMS provides broad services for updating and maintaining buildings and facilities for all

Council departments. AMS is continually looking at ways to increase efficiency through

energy efficient appliances/devices, use of building management systems, as well as staff

behavioral change. Moreover, AMS has a defined process for engaging external contractors

and methodically reviewing project quotes and proposals to understand proposed projects,

equipment, and where applicable, related energy efficiency gains and total savings.

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For relevant projects (including work undertaken by Major Projects), input from AMS may

help to identify appropriate clean energy solutions, and furthermore can provide consistency

across Council projects to ensure that optimal solutions are implemented.

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