New Developments and Major Expansions EEO Sectoral Workshops Perth, 20 August 2013

1. New Developments and Major ExpansionsEEO Sectoral WorkshopsPerth, 20 August 2013 EEO for New Developments

2. Welcome • Emergency Evacuations • Facilities • Introductions • Agenda

3. Agenda EEO for New Developments

4. EEO for New Developments and Expansion ProjectsHow to make the regulations fit your business Dayne Thompson Project Manager – New Developments Industrial Energy Efficiency BranchDepartment of Resources, Energy & Tourism

5. New Developments and Expansions • EEO - New Developments and Expansions aims to encourage integration of energy efficiency into design practises • by • aligning a flexible energy efficiency framework to existing design stage processes.

6. Discussion Points • An interactive session stepping through the new regulations and providing examples. The broad topics we will cover are: • Which projects will trigger and when? • How do I plan an assessment? • What are the reporting requirements and what does it look like?

7. Which projects will trigger ?  A Project that will use 0.5PJ of energy once in operation  0.65 PJ 0.35 PJ The corporation is developing more than one project, at the same time and ALL Projects will use 0.25PJor more of energy once in operation   0.28 PJ 0.28 PJ 0.32 PJ 0.15 PJ 0.4 PJ 0.21 PJ  0.12 PJ 0.18 PJ  0.12 PJ 0.11 PJ Projects that will use 0.1PJ of energy once in operation, that add up to 0.5PJ, and they are identical. 0.11 PJ 0.12 PJ 0.11 PJ 0.12 PJ 0.11 PJ 0.09 PJ

8. When do projects trigger ? • Projects will trigger the EEO Regulations once they are publically announced. • So, what constitutes a public announcement?

9. What constitutes a public announcement?

10. What constitutes a public announcement?

11. What constitutes a public announcement?

12. What constitutes a public announcement? • What DOES NOT constitutes a public announcement? • Announcementof a lease agreement for exploration • Going out to tender for consultants to provide advise on early design

13. Next Steps Page 10 of the guidance material

14. Determining Participation Questions? EEO for New Developments

15. What does an assessment look like? EEO for New Developments

16. What is involved in an assessment? • 6 Requirements: • Leadership – setting goals, resourcing • People – ensuring a broad range of people are involved, appropriate to each design stage. • Data – obtaining the right data at the right times, ensuring accuracy is relevant to design stage and planning for future data needs • Evaluation – Evaluate ideas to the level appropriate to the design stage, progress ideas for further evaluation to the next design stage, ensure whole of site, whole of business • Decision making – ensuring the right information to the right people • Communication – communicate outcomes to the team, government and the public

17. Assessment Plan 5 Steps: • Identify a list of key projects that have been publically announced • Think about potential energy indicators for each project • Identify existing corporate processes that will be applied or will need to be adapted • Identify how, and when, reports on opportunities are likely to be submitted and how energy use data is to be assessed and collected • Consolidate into your Assessment Plan and submit to RET.

18. Timing of Assessment Plans Announced before 1 July 2013 When are assessment plans due. Announced before 31 Dec 2013 Announced on 1 Feb 2014 Assessment Plan is due before 30 June 2014 Assessment Plan is due before 31 Aug 2014 Announced on 3 Mar 2016 Assessment Plan is due before 2 Sep 2016

19. Energy KPIs • Leading indicator examples • Management support e.g. number of management communications • Resource availability e.g. % of resources or FTE roles • Embedding efficiency e.g. number of project team workshops on efficiency • Lagging indicator examples • Specific energy consumption e.g. GJ/t, GJ/MWhetc • Energy indicator based on specific energy index • e.g. set at 10 GJ/t = 1.0 at the start of the project and track the index • Energy saved through innovations e.g. target an x% saving in energy overall vsBaU scenario

20. Aligning Existing Processes • Must be able to demonstrate a process that embeds the six Requirements into each phase of the design stage • If using contractors for phases, must ensure that their processes meet the Requirements • Some examples of existing processes that may go some way to meeting the Requirements: • Value Improving Practice (VIP) for energy • Leading practice / technically feasible energy efficiency options • Early integration of sustainability in design e.g. SEAL, HSEC

21. Contract Types Page 25 of the guidance material

22. Assessment Plans Questions? EEO for New Developments

23. ReportingWhen and how EEO for New Developments

24. Reporting • Energy performance objectives, how these objectives were achieved over the design and up to commercial operation • Document KPIs and record performance • A chart indicating the change in estimated annual energy consumption over the lifecycle of the design • Description of significant opportunities identified during the assessment that contributed to energy savings throughout the design and development • Document ideas identified, evaluated and implemented

25. When? • Reports are due 12 months after the financial year in which the project reaches commercial operation. • Requirements include: • One Public report; and • One Government report

26. What information needs to be provided?

27. What information needs to be provided? • Leading / Lagging indicators. • Leading indicators may include: • Numbers of meetings held on Energy Efficiency • Time scheduled in the project plan for evaluation of ideas • Number of different crushing techniques investigated • Lagging indicators may include: • GJ/ Tonne of ore processed • Op Ex to Cap Ex ratio • NPV of the site EEO for New Developments EEO for New Developments

28. Reporting Questions? EEO for New Developments

29. Example Obligations • Example 1: You are an EEO company and you have a mining project currently in construction, • What do you need to do? • You do not need to retrospectively conduct assessments. • You do need to undertake an assessment after construction which may include optimisation during “debottlenecking” • When? • Submit an assessment plan before 1 July 2014 (12 months after the regulations came into effect) • Report 12 months after the financial year in which the project reaches commercial operation

30. Example Obligations • Example 2: You have a project in concept which will may be publically announced some time in the future, • What do you need to do? • You do need to align the EEO framework to your design process from concept right through to commercial operation; BUT • You do not need to submit an assessment plan until the project is publically announced. • The previous assessment plan can cover this project. If so, only the project details need to be submitted. • When? • You must submit an assessment plan 6 months after public announcement • You must report 12 months after the financial year in which the project reaches commercial operation

31. Example Obligations • Example 3: EEO company GrindCorphas a mining project currently in prefeasibility. The project will be publically announced on 20 Jan 2014 when it progresses to feasibility, • What do they need to do? • It’s their first project, so assess the project from feasibility through to commercial operation. • When? • Submit an assessment plan before 20 July 2014 (6 months after public announcement) • Report 12 months after the financial year in which the project reaches commercial operation

32. Example Obligations • Example 4: A New Company not currently registered with EEO “Stonecrush” has a project currently in detailed design. The project has been be publically announced. • What do they need to do? • It’s their first project, so assess the project from detailed design through to commercial operation. • After an assessment plan is submitted, the department will comment. Stonecrush will only have to act on design stages not yet commenced. • When? • Register by 31 March 2014 ( 9 months from 1 July 13) • Submit an assessment plan before 31 Dec 2014 (9 months after registration) • Report 12 months after the financial year in which the project reaches commercial operation

33. Example Obligations • Example 5: EEO company “ROCK DIG” has a design stage process which already meets the intent of the assessment framework. This is demonstrated in their EIS and complemented by internal design procedures. • What do they need to do? • Contact the department and apply for an exemption. • When? • The exemption must be received and approved before an Assessment Plan if due

34. Questions? • Dayne Thompson • Project Manager • New Developments and Expansion • EEO Development & Evaluation • EMAIL:dayne.thompson@ret.gov.au • PHONE: (02) 6243 7546

35. Trial company presentationKarara Mining Ltd EEO for New Developments

36. AFTERNOON BREAK EEO for New Developments

37. Trial company presentationWater Corporation (WA) EEO for New Developments

38. PROJECT PHASES Emma Kreukniet Assistant Manager - Capacity Building New Developments Industrial Energy Efficiency BranchDepartment of Resources, Energy & Tourism

39. Project Phases Develop Procurement Strategy Develop Spec and Tender Tender Selection and Award Financial Close Concept Study Pre-Feasibility Feasibility Study Front End Engineering Design (FEED) Detailed Engineering Construction Management Commissioning and Acceptance Commercial Operation Establish Commercial Arrangements Establish Business Need Develop Business Case Project Implementation Page 25 of the guidance material

40. Establish Business Need Concept Study Pre-Feasibility Establish Business Need

41. Develop Business Case Feasibility Study Front End Engineering Design (FEED) Develop Business Case

42. Establish Commercial Arrangements Develop Procurement Strategy Develop Spec and Tender Tender Selection and Award Financial Close Establish Commercial Arrangements

43. Project Implementation Detailed Engineering Construction Management Commissioning and Acceptance Project Implementation

44. Commercial Operation Commercial Operation

45. Group Exercise • How might the leadership team demonstrate support for energy efficiency throughout this phase? • Which people should you involve? • What data might be available? Also consider non-energy data. • How could this data be utilised to identify opportunities?

46. Requirement 3Information, Data and Analysis Concept Study Pre-Feasibility Establish Business Need • How might the leadership team demonstrate support for energy efficiency throughout this phase? • Which people should you involve? • What data might be available? Also consider non-energy data. • How could this data be utilised to identify opportunities?

47. Requirement 3Information, Data and Analysis Feasibility Study Front End Engineering Design (FEED) Develop Business Case • How might the leadership team demonstrate support for energy efficiency throughout this phase? • Which people should you involve? • What data might be available? Also consider non-energy data. • How could this data be utilised to identify opportunities?

48. Requirement 3Information, Data and Analysis Develop Procurement Strategy Develop Spec and Tender Tender Selection and Award Financial Close Establish Commercial Arrangements • How might the leadership team demonstrate support for energy efficiency throughout this phase? • Which people should you involve? • What data might be available? Also consider non-energy data. • How could this data be utilised to identify opportunities?

49. Requirement 3Information, Data and Analysis Detailed Engineering Construction Management Commissioning and Acceptance Project Implementation • How might the leadership team demonstrate support for energy efficiency throughout this phase? • Which people should you involve? • What data might be available? Also consider non-energy data. • How could this data be utilised to identify opportunities?

50. PANEL SESSION EEO for New Developments