Page 3301 - Week 09 - Wednesday, 19 August 2009

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So what is the big picture? The government has announced ambitious aims for the territory in relation to reducing its greenhouse gas emissions. Gradual removal of the most carbon-intensive water heaters from residences will assist in achieving a reduction in carbon emissions from individual households and reduce operational costs.

However, Madam Assistant Speaker, mandating alternative technologies runs the risk of not necessarily delivering the environmental or financial benefits if the regulation does not contain provisions to optimise the functioning of these technologies and ensure their effectiveness in the ACT climate. While this bill is a significant improvement on the original bill the Greens introduced into the Assembly, there are still a number of issues with the initiative that will require further attention before any legislation of this nature is passed.

I do not intend to comment on all of the provisions in the bill but there are some of notable concerns. These include the treatment of temporary systems, the lack of consideration regarding households with on-site renewables that provide a residence’s entire energy usage, the apparent preclusion of other suitable technologies such as ground-source heat pumps and small electric instantaneous water heaters and the lack of installation requirements for solar collectors, which I understand ACTPLA is currently investigating. The bill also continues to confuse the climate zones applicable under the Building Code of Australia with those used to calculate renewable energy certificates.

Madam Assistant Speaker, this policy area has been the subject of a concerted national policy approach which the ACT government has been heavily engaged with. On 12 December 2008 the Ministerial Council on Energy agreed to an initial three-year implementation plan of the national hot water strategic framework for the period 2008-09 to 2010-11, including key actions and time frames. The strategic framework involves the phase-out of conventional electric resistance water heaters, except in regions where the emissions intensity factor of the public electricity supply is low.

It initially covers from 2010 all new houses and established houses in gas reticulated areas; from 2012 all new flats and apartments in gas reticulated areas and established houses in gas non-reticulated areas; minimum energy performance standards for the types of water heaters, such as gas, solar, heat pump and small electric systems that will continue to be available, subject to a regulatory impact statement; and supporting measures including harmonisation, information, education, compliance and innovation support.

The initiative, which goes significantly further than what is being proposed through the Greens party bill, is also incorporated in its entirety into the national strategy on energy efficiency, which was agreed to by COAG on 2 July 2009. What is especially important to note about this process is that it will not only introduce technical provisions for water heaters. Instead, the national process will entail specific consultation with national regulatory bodies, training organisations, practitioner associations, manufacturers, suppliers and retailers, and consumer groups. It will also produce an analysis of the regulatory impact on ACT citizens, including the costs and


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