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ITEM EN8

ENVIRONMENT SCRUTINY COMMITTEE –
23 FEBRUARY 2005

OXFORDSHIRE COUNTY COUNCIL REVISED ENERGY POLICY (2005)

Report by Director for Resources

1. Tony Blair recently described climate change as ‘the most important environmental issue facing the world today.’ Others have gone so far as to claim it is the most serious threat to human existence. Many scientists indicate that recent warm years and the increase in frequency of extreme weather events are signs of an already changing world climate.
2. Energy use, in its various forms, is the most significant contributor of 'greenhouse gases' that are thought to be causing climate change. Furthermore, carbon dioxide (CO₂) is the most significant of these gases. In recognition of this, scientists have called for a 60% reduction in global CO₂ emission between 1990 and 2050. It can be argued that the more developed areas of the world (such as the UK) need to reduce their emissions by more than 60% to compensate for the inevitable increase in emissions that is happening through industrialisation of less developed nations.

International & National Measures to Reduce CO₂ emissions

3. Agreement about how to proceed as a global community is difficult to reach, as demonstrated by the struggle to ratify the Kyoto Protocol which makes only a start on the 60% reductions scientists say is required. Having said that, the UK Government has gone beyond the Kyoto commitment and adopted a target of a 20% reduction in CO₂ emissions by 2012 (as compared to 1990) and has, in the past, recognised the need to reduce greenhouse gas emissions by up to 90% in developed nations. It has promoted and implemented a number of initiatives to encourage and facilitate emission reductions. These include taxation (e.g. Climate Change Levy), information and advice programmes, capital grant schemes, tightening of Building Regulations and involvement in Emission Trading schemes. Unfortunately, despite these initiatives, in recent years emissions nationally have actually increased.

Reviews of Oxfordshire County Council’s Approach

4. A recent Inspection Report of the County Council’s approach to Sustainable Development by the Audit Commission, noted that the Council provides good Sustainable Development services but that its aims are broad and the implications for service delivery are not always clear. In addition, it stated that ‘the Council’s progress in improving its own sustainability has been inconsistent’ and ‘the Council’s integration of sustainable development into its property services is still developing’.
5. The Council’s Environmental Scrutiny Committee recently reviewed the Corporate Environmental Policy including in respect of climate change and energy and recommended that the Council should take all necessary measures to reduce its energy consumption and the carbon emissions caused by its own activities. It further recommended the adoption of a target of a 60% reduction in CO₂ emissions by 2050 (base year 1990) and the consideration of ways of increasing the capacity for renewable energy within Oxfordshire. The recommendations were not approved by the Executive, pending the outcome of the Audit Commission review.
6. In the 2003 publication ‘Raising our performance 2: Organisational Improvement Plan 2003 – 2005’, the County Council has acknowledged that ‘many of our buildings suffer from a history of under investment’ and that ‘failure to invest is short sighted … we need to turn this situation around.’’. While this applies most visibly to maintenance issues, it applies equally to energy use and resulting environmental impact. Furthermore, there is, in general, a link between maintenance and energy use in buildings.

Policies and Service Delivery

7. The County Council is a signatory to the Nottingham Declaration on Climate Change. Although not apparently a prime mover in terms of the Council’s actions to reduce its impacts, it does commit the Council to a number of actions including achieving significant reductions in greenhouse gas emissions from our own operations.

Energy Policy

8. The County Council has had an Energy policy relating solely to Buildings for some time. It is the one of the key guiding documents governing the delivery of the Energy Management service for the County Council’s properties. The Strategic Planning & Economic Development Team (Environment & Economy) has given some thought to a wider Council Energy Policy that would include transport, street lighting, purchasing and IT equipment, along with Buildings. Whilst that may be an outcome from ‘Future First’, the Buildings Energy Policy needs updating because the current emissions target expires at the end of 2004/05 and because of the new Property Consultant contract (the policy is an integral part of the Property Consultants Manual) and the objectives and targets contained therein.
9. The remainder of this document provides supporting information relating to the objectives, targets and actions identified in the Energy Policy.

Statement of Objectives

Statement 2.1 – Reduce pollution from energy use in buildings

10. This recognises that the Council has a greater level of ‘control’ over the energy and water performance of non-school sites than schools, where this responsibility has been delegated. Therefore, whilst, in theory, it is possible to implement measures at non-schools sites corporately, a range of actions can be taken to provide support, information and advice to schools to encourage and assist them to implement schemes, be they management or investment projects. As an example of this support, a programmed series of energy surveys has been undertaken at many establishments. These surveys identify opportunities for investments as well as changes in management practice. The surveys are hand-delivered to the establishment and a review meeting is held to highlight the findings in order to assist the establishment with the implementation of relevant measures.

Statement 2.2 – Achievements reducing water use.

11. This refers to the programme of water saving measures that was implemented across the County Council estate in the late-1980s and early-1990s. This involved appropriate sizing of water meters and the installation of urinal flushing controls, cistern dams and tap flow restrictors. Available data indicates that these savings have been maintained. Discussions with Thames Water have resulted in invoice and usage data now being obtained for all of the Council’s Oxfordshire-based establishments at one central location. This allows for more proactive monitoring of use and costs and for the development of performance indicators that, themselves, can be used to target investigations and assistance.

Statement 2.3 – Purchase at economical rates

12. We aim to undertake purchasing in such a way that we obtain the best combination of price and service, yielding best overall value. Significant savings have been achieved since competition and the objective is to free up resources which can be used for other purposes.

Statement 2.4 – Improve energy and water performance of new buildings

13. Good results have been achieved but there is a need to achieve consistency and to continue to move forward in light of technological developments and financial constraints. The new Property Consultants Contract has very clear performance indicators that will encourage improvements. In addition, the development of Building Environmental Standards as a component of the Property Consultants Manual will bring together a range of targets.

Statement 2.5 – On-site renewable energy generation

14. Whilst reducing energy use and purchasing renewable-source electricity reduce environmental impact there is a need to consider other options as well. Switching fuel source is another measure that can reduce environmental impact and many technologies are now available, including solar hot water systems, solar electricity generation (photovoltaics), wind turbines for electricity generation, heat pumps, and heat from burning biomass. On-site generation has a range of advantages including efficiency gains whilst the use of renewable sources, in place of fossil fuels, will reduce overall environmental impact. In some instances, the renewable fuel (e.g. wood) can be sourced in the vicinity of its use as a fuel thus helping to support the local economy.

Statement 2.6 – Good practice by occupants

15. Technology can achieve a considerable amount in terms of reducing use and environmental impact. However, building occupants have an important role to play both in understanding the limits and use of technology and in understanding the impacts of their own actions along with the things they can do to improve performance. Examples can be as simple as switching off lights and computers when not in use to understanding how boiler controls operate. The support given to occupants can take a number of forms from newsletters to survey reports to site visits and both general and targeted training. All of these have been used in the past and a range of measures will continue to be used.

Statement 2.7 – Act as an exemplar of good energy management

16. The County Council has an important role to play. Its properties are visible to and used by a significant proportion of the community, hence there is great potential for influencing others by implementing, demonstrating and publicising good practice and good results.

Statement 2.8 – Safe, comfortable and healthy internal environment

17. Energy efficiency and reduction in environmental impact must operate alongside a commitment to internal environmental conditions that promote well being and it is the Council’s intention to operate in this manner.

Targets

Statement 3.1 – 40% reduction in CO₂ emissions between 1990 and 2010

18. The current Energy Policy contains an objective of achieving a 30% reduction in CO₂ emissions between 1990 and 2005 in buildings directly under the control of the Council. It encourages a similar reduction in those establishments with delegated responsibility for energy use and costs (i.e. schools). By 2003/04, the reduction in CO₂ emissions was approaching 40% (almost 60% in ‘centrally managed’ sites and approximately 35% at delegated sites). This value is based on the CO₂ emission factors applicable to the initial year of the target period (i.e. 1990) – a different result would be obtained if another year’s emission factors were used as they vary from year to year for electricity, depending on the proportional mix of generating forms (coal, oil, gas, nuclear, hydro, other renewables, etc.) .
19. The reduction was achieved primarily through the purchase of renewable energy in supply contracts with British Gas and London Energy. Without these purchases, emissions over this period would have risen by more than 35% because of the steadily increasing use of electricity that can be attributed largely to the increase in the use of small electrical appliances such as computers, photocopiers, faxes, etc. As these purchases of renewable–sourced electricity cover all but two large secondary schools, there is really no further reduction in emissions available from this approach. Indeed, the demand nationally for such electricity now outstrips supply and there is no guarantee that future County Council electricity supply contracts will be from renewable sources.
20. There are some arguments about how valid it is to claim reductions in CO₂ emissions through purchasing renewable energy in the market place. This is because other measures, such as the Government’s requirement that suppliers provide a specified percentage of renewable-source electricity as part of their sales (3% by 2003, 5% by 2005 and 10% by 2010), is having a much bigger impact than customer’s specific requests for such electricity. Therefore, whilst the Council’s purchases of renewable electricity are providing support for this industry, the generation almost certainly would have been there anyway, and sold to another customer. Therefore, it can be argued that purchasing renewable electricity in the market place currently doesn’t have a major impact on the total CO₂ emissions in the UK.
21. The above factors suggest that future reductions in emissions must come from reductions in energy use, switching of fuel used for heating and hot water purposes (e.g. electricity to gas; oil or gas to biomass, fossil fuel to solar). On-site generation of electricity from renewables will help maintain the reductions achieved to date. The 40% target chosen in effect takes forward the nominal 2% per annum reduction within the current policy.

Statement 3.2 – 10% reduction in energy use between 2005 and 2010

22. As stated above, future reductions in CO₂ emissions will depend significantly on reducing energy use, hence it is consistent with the CO₂ objective but makes clear the intention to focus on reducing energy use. This will generate financial benefits as well in that there are opportunities for reducing energy use, either via good practice property management or capital investments that will generate revenue savings.

Statement 3.3 – Purchase renewable-source electricity

23. Despite the comments above, purchasing renewable-source electricity does signify the Council’s commitment to the environmental benefits it brings and, in reality, the Council is directly supporting this form of energy generation through the payments that ultimately reach the generators. At the moment, the renewable energy purchased by the County Council means that the Climate Change Levy is not chargeable. However, there is a premium for the renewable energy purchased which, at the moment, is equivalent to the level of the Climate Change Levy. Hence, in general, there is no net financial benefit or cost. This may or may not be the case in future years and a commitment to purchasing this form of electricity will signify the Council’s continuing support.

Statement 3.4 – Obtain 3% of energy use from on-site renewables by 2010

24. Currently, there is no on-site renewable generation of any significance at County Council establishments. Small scale projects must be seen as a significant future source and there are opportunities and some grant funding available. In general, these projects incur up-front capital costs but many generate revenue savings that means they will pay for themselves during the life of the project. In addition, the Council’s involvement will make a contribution to bringing down the cost of these technologies, will demonstrate the Council’s commitment and leadership and can act as demonstration and educational projects.
25. As an example, obtaining 3% of the Council’s energy use would be the equivalent of about 15 Primary Schools having woodchip boilers providing their heat requirements - 3 per year over 5 years.

Statement 3.5 – Work towards an establishment with ‘zero’ net carbon emissions by 2010

26. This is likely to be a real challenge but could be accomplished by firstly designing a building with energy demand that is as low as possible (given available technology and cost) and then generating both heat and electricity requirements from renewable sources. That could mean a biomass-burning boiler for heat and solar-based hot water and a combination of an on-site wind generator along with photovoltaics for electricity generation. It is likely that the pattern of on-site generation of electricity will not match precisely the pattern of use so it will be necessary to export to the grid at certain times and import at others but the intention would be to generate at least the same level of electricity as is used at the site over the course of a year. Whilst these the technologies have potential for further efficiency improvements, they are all available at the moment. The major barrier is likely to be cost, specifically initial capital cost. All but photovoltaics are likely to provide a financial benefit using whole-life costing procedures. Future development and market penetration (e.g. economies of scale) might make photovoltaics cost-effective in the future.
27. Major benefits of such an establishment will be promotional and demonstrational – signalling the County Council’s seriousness about reducing its environmental impact and leading by example. A further benefit is the educational value such a project can offer. Such a project could also be part of a joint initiative with the Universities in Oxford who themselves have both an interest in and the ability to provide support for such a project (e.g. in terms of academic analysis and possibly in helping to secure funding).

RECOMMENDATION

28. The Committee is asked to consider what advice, if any, to offer to the Executive

JOHN JACKSON
Director for Resources

Background papers:
Audit Commission Inspection Report on the County Council’s Approach to Sustainable Development
Raising Our Performance 2: Organisational Improvement Plan 2003-2005

Contact Officer: Darrell, Marchand Tel: (01865) 810429

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