Zero Emissions Noosa is working with our State Member for Noosa Sandy Bolton, to achieve Queensland Government changes which will deliver significant financial and environmental benefits to households and businesses. Sandy Bolton has been a strong supporter of this initiative, which requires a zero cost legislative change to enable Environmental Upgrade Agreements (EUAs) to be facilitated by participating local governments across Queensland. At the bottom of this article, read Sandy’s parliamentary question on notice she asked
Environmental Upgrades must have a measurable environmental benefit making them ideal for sustainable improvements like solar PV, batteries and energy efficiency measures.
“Loans tied to building, not owner
No capital or security required
Repayments collected through council rates
Up to 100% finance including hard and soft costs”
Businesses in Victoria, NSW and SA already enjoy the benefits of EUAs, which can deliver significant savings through low interest environment upgrade loans with no upfront cost, which are tied to the property, with pay back periods up to 20 years. There are some compelling success stories on the financial benefits which are enjoyed by a wide cross section of business in these 3 states. We think it's time for Queensland to get on board!
ZEN submits a proposal
Zero Emissions Noosa Inc. has submitted a proposal to the Queensland Government COVID 19 Recovery Taskforce seeking legislation change in Queensland so Queensland property owners (businesses & households) have access to EUA's (also known Building Upgrade Finance in NSW & S.A.).
What is an environmental upgrade?
An environmental upgrade is an addition, enhancement, or modification to an existing building to improve its energy, water and resource efficiency.
What is an Environmental Upgrade Agreement (EUA)
Legislative changes in Victoria, NSW and SA have been made to enable building owners to access EUA's. An EUA facilitates a loan to a business/household from an external source that attaches to the property and is repaid through council rates over periods of up to 20 years. Because repayment of the loan is included in the Council rates, lenders see this as a very secure loan and so low interest rates apply. Property owners don’t have to pay upfront costs for upgrades, and the loan stays with the property, meaning owners are less resistant to upgrading buildings as they aren’t out of pocket and in most arrangements share these costs with tenants, who benefit the most from reduced operating costs to assist as part of the COVID 19 recovery.
How can this happen
ZEN Inc. proposed that amendments to the Queensland Local Government Act would enable property owners to make environmental upgrade their properties, enabling
reduced business/household power bills
greater uptake of innovative new technologies being developed in the renewable energies industry, and
boosting jobs in the renewable energy industry and stimulating economies, particularly important in regional areas
These outcomes are particularly important to assist businesses recover from COVID 19. If the legislation is amended, it would then be up to individual councils whether or not to participate and facilitate EUA loan repayments.
WATCH THIS SPACE!
Parliamentary Question on Notice by Member for Noosa - Sandy Bolton
Reproduced here is the parliamentary question on notice and the answer.
“Question on Notice
No. 145
Asked on Tuesday, 18 February 2020
MS S BOLTON ASKED MINISTER FOR HOUSING AND PUBLIC WORKS; MINISTER FOR DIGITAL TECHNOLOGY; MINISTER FOR SPORT (HON M DE BRENNI)
Will the Minister advise the outcomes from the department’s investigation of an Economic Upgrade Agreement framework for Queensland?
ANSWER
An Environmental Upgrade Agreement (EUA) is a financing mechanism used to upgrade the energy efficiency of existing buildings to improve their environmental performance and can provide benefits for the community, industry, building owners, building tenants, financial providers and local governments.
EUAs are fixed interest, long term loans, provided by lenders and secured through a local government charge on land. The cost savings resulting from the upgrades are used to repay the upgrade finance over time, through a charge included on the property’s rates.
Other jurisdictions (Victoria, New South Wales, South Australia) have each developed different frameworks for their adoption of EUAs and these frameworks share the common aims of incentivising energy upgrades of older, inefficient buildings; stimulating investment opportunities; and reducing operating costs.
The outcomes of the Department of Housing and Public Works’ investigations indicate EUAs can provide both environmental and economic opportunities for Queensland by facilitating access to investment in sustainability upgrade works for commercial buildings.
My Ministerial Construction Council has recently been consulted and is supportive of progressing the development of an EUA framework in Queensland.
The Department of Housing and Public Works is working across government to give further consideration to the proposed framework and its potential application.”