Equipment Energy Efficiency Program

March 2013

Registration and Compliance

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Outline

•  E3 Energy Rating Website •  Registration System •  Monitoring and Verification •  Enforcement •  Reporting and Information Sharing

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Background

•  Greenhouse and Energy Minimum Standards (GEMS) Act 2012 came into effect on 1 October 2012

•  Department of Climate Change and Energy Efficiency (DCCEE) has responsibility for administration of the Equipment Energy Efficiency (E3) Program in Australia

•  DCCEE administers all enquiries handling related to the program, application processing and approvals, variation and exemption requests and compliance activities

•  The Energy Rating website facilitates this work as most applications and requests come through the site or the Energy Rating mailbox, and it is the repository for all registration and compliance information and data.

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E3 Energy Rating Website

•  To promote and facilitate the sale of energy efficient appliances and educate stakeholders about the E3 Program

–  Single entry point for registration of prescribed products sold in Australia

–  Library of information –  Product search facility (comparison

tool)

www.energyrating.gov.au

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•  Houses the secure registration and compliance databases •  Focused on technical users – key stakeholders

–  Manufactures/ suppliers –  DCCEE and other government agencies –  Regulators –  Consultants –  Product Retailers –  Consumers

E3 Website Public Portal

•  Repository of information on the MEPS and Labelling Program for example –  Products regulated under the program –  Related documents and publications –  Labelling and/or MEPS requirements –  Process for the development of MEPS and

labels in Australia and New Zealand –  Updates relating to product standards –  Product profiles, regulatory impact

statements, fact sheets, reports, newsletters –  Comparison tool

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E3 Website Secure Portal

•  Secure site for regulators and administrators –  Requires log-in access (different access for suppliers,

regulators, DCCEE administrative staff) –  Suppliers can manage their information, make registration

applications, update contact details and product availability status etc

–  Regulators can manage registration applications, view registrations, use reporting tools

–  Program administrators can manage compliance activities, view registrations, use reporting tools, manage survey data

–  A sales data reporting tool is also to be added to the site to record sales data of registered models

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Registering a Product

•  Registration is via the secure portal •  Suppliers first need to apply for login •  Registration forms have mandatory fields for required

information and internal validations – only complete applications will be accepted for processing

•  Models must comply with the relevant GEMS Determination in order to be approved

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All prescribed products must be registered before being offered for sale or commercial use

Approved Registrations

•  Normally valid for a five year period unless there is a change to MEPS and/or labelling requirements –  If there is a change to the

requirements and the product is no longer compliant it is ‘superseded’ which means it can no longer be manufactured in Australia or imported from that date

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•  Once approved, key performance data from the registration is made available to the public via the comparison tool

Sales Data Reporting

•  A new requirement of the GEMS Act 2012 is that registrants must provide sales data to the GEMS Regulator when requested

•  Data will be used to inform and evaluate policy

•  A sales data reporting tool is under development and will facilitate the provision of sales data by registrants

•  The security of the sales data will be maintained by the Australian GEMS Regulator

•  Any commercially sensitive information will be protected in the reporting of any data

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E3 Compliance

•  Key Element of the E3 Program with aim of maintaining Program integrity –  Ensure stakeholders are aware of their responsibilities –  Give clear guidance on requirements –  Provide forum for exchange of ideas –  Administer an effective, coordinated testing and

surveillance regime –  Provide timely feedback to suppliers and retailers –  Review information to improve standards and protocols

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Monitoring, Verification and Enforcement

Why is Compliance Important?

•  Encourages operation of a market that is fair, consistent and encourages investment and innovation

•  Increases consumer confidence that non compliance will be identified and that products are “as described”

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E3 Compliance Activity

•  Market surveillance – registration and labelling •  Check testing – MEPS and labelling •  Enforcement •  Reporting and sharing results

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Market Surveillance

•  Compare the accuracy of mandatory labels against the registration database

•  Check the registration status of products against the registration database

•  Three key in-store surveys undertaken: –  Whitegoods (2009) - 256 retail stores, 25,000 products,

labelling compliance 98.1%, registration compliance 99.4% –  Air conditioners (2010) – 321 retail stores, 3371 products,

labelling compliance 89.1%, registration compliance 98.1% –  Televisions (2011) – 101 retail stores, 5140 products, labelling

compliance 93.2%, registration compliance 98.2% –  Lighting (2013) – commencing in March. Registration and

labelling compliance and purchase of models for check testing

•  Published reports and results provided to stores and suppliers

•  Also surveying internet sales

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Verification (Check) Testing

•  Cornerstone of the compliance activity of the E3 Program •  Confirms appliances are achieving declared energy

performance •  Safeguards integrity of program by maintaining

confidence •  Protects investment made by suppliers who are doing the

right thing –  1000 targeted tests conducted between 1991-2010

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Check Testing Selection Criteria

•  Risk based selection criteria including –  Models with a high market share –  Brands with a history of non-compliance –  New brands or brands with limited exposure to the Program –  Models supported by test laboratories with a history of failing

check tests or without a past history –  Product categories with highest greenhouse gas emissions –  Product categories with comparatively high levels of non-

compliance –  New product categories –  Complaints or intelligence from competitors, consumers,

overseas testing programs

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Check Testing Process

•  Models purchased anonymously from retailer •  Staged Approach

–  Stage 1 – full or part test usually on one sample (more for some product types)

–  Tested at an accredited laboratory – paid for by government

–  Pass result – supplier notified of the result and no further action

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Check Testing Process – Stage 1 Fail Result

•  Stage 1 Fail – regulator issues a Stage 1 Fail notification. Supplier options are to: –  Agree to cancellation –  Nominate to proceed to Stage 2 testing

The supplier must: –  Bear the cost of Stage 2 testing –  Provide 2-3 (or more) randomly selected

samples –  Organises testing at an accredited

laboratory

–  Pass result, no further action –  Fail result, move to enforcement action

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Enforcement Policy

•  Set of responses to incidents of non-compliance

•  Procedures used must be accurate and robust to support enforcement action

•  Action must be timely to be most effective

•  Should be based on a well developed enforcement strategy including a range of structured, elevating enforcement responses and sanctions that can be implemented depending on the type of non-compliance and responsiveness of the supplier

Check Testing Process – Stage 2 Fail Result

•  Stage 2 Fail – Regulator issues notice of cancellation •  If a ‘family’ registration then all models are affected •  Other model registrations relying on the same test

report also need to show cause why they shouldn’t be cancelled

•  Upon cancellation no further import or manufacture is permitted and remaining stock may not be sold

•  Regulator may impose future entry conditions on non-compliant suppliers

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Follow Up to Stage 1 and 2 Failures

•  May negotiate administrative settlement with non-compliant suppliers to compensate consumers and the environment

•  Administrative settlement actions have included –  Issue of public notice –  Recall and replacement of non-compliant units –  Rebate to consumers –  Purchase of carbon credits –  Technical support to rectify non-compliance

•  May impose future entry conditions •  May publicise results

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Reporting and Information Sharing

•  Vital to elevate the profile of compliance activities and increase perceived risk of non-compliance

•  Recent reports include –  Six monthly reports on E3 checktesting

activity (Jan-June 2011, July-Dec 2011 and Jan-June 2012)

–  Release of report on first 1000 E3 check tests •  Meetings and conferences •  Quarterly E3 newsletter •  Sharing ideas and results with other

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Thank you...

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