Meeting documents

ITEM EX11

EXECUTIVE – 19 APRIL 2005

COUNTY COUNCIL ENERGY MANAGEMENT POLICY

Report by Head of Property

1. For many years the County Council has had an energy policy relating to its own buildings. However, it is in need of updating, especially in light of the fact that we are entering the final year of the existing target for reductions in the emissions of carbon dioxide (CO₂) and consideration is required as to how to proceed. This need is recognised in the reports on Corporate Environmental Policy and Prudential Funding for Repairs and Maintenance elsewhere on the present agenda.
2. In this connection the Executive has also instructed the Head of Property Services to bring forward a business case for the use of prudential borrowings to fund a programme of energy efficiency projects in our public buildings. This was reflected in estimates of Capital Expenditure for the period 2005/06 to 2007/08 on which the series of Prudential Indicators approved by the February Council was based.

Policy Proposals

3. It is envisaged that the proposed updated policy will ultimately be part of a wider Council energy policy (additionally covering transport, street lighting, purchasing and IT equipment) that will be developed within the Future First project. The proposed updated policy (and an accompanying explanatory note) is attached as Annex 1.
4. The original draft Policy was circulated for comment to Business Managers and the Strategic Policy and Economic Development (SPED) unit in Environment & Economy. In addition, the Leader of the Council and the Executive Member for Sustainable Development accepted an offer from Cllr Craig Simmons to review and comment on the draft, in view of his personal expertise in this area. The draft was also referred to the Environment Scrutiny Committee at their meeting on 23 February 2005.
5. The comments received from SPED, Cllr Simmons and members of the Scrutiny Committee. (together with my responses where appropriate) can be seen in the Members' Resource Centre. The proposed policy at Annex 1 takes account of many of these comments; for example, to make explicit the remit of the policy to cover both energy and water usage.
6. Key aspects of the policy are as follows:

• to extend the CO₂ emission reduction target for a further five years;
• to roll forward the target to reduce energy use;
• to continue to purchase renewable energy and to develop renewable energy projects at County Council properties;
• to adopt building environmental standards that will guide improvements in environmental performance; and
• to make a commitment to make financial resources available.

7. Existing budgeted resources will contribute significantly to achievement of the objectives and targets. Primarily, these are the resources of the Corporate Property Group and the funds available to purchase services from the Council's property consultants. However, additional resources will be required in order to achieve the objectives and targets, in the form of capital funds.
8. At its meeting on 27 January 2004, the Executive approved the use of Prudential Borrowing for Energy Conservation, subject to the submission of a robust Business Case. A Business Case has been prepared and presented to the Capital Steering Group, who approved it on 11 February 2005. This is attached as Annex 2 (download as .doc file).
9. It is proposed that Prudential Borrowing funds are used to invest in projects that will reduce energy use, consequent emissions of pollutants such as carbon dioxide, and ongoing utility costs. Furthermore, it is proposed that these funds could be used for on-site renewable energy schemes that will similarly reduce both emissions of pollutants and ongoing utility costs.
   
   (Notes accompanying the policy - download as .doc file)
   

RECOMMENDATIONS

10. The Executive is RECOMMENDED to:
    
    

NEIL MONAGHAN
Head of Property

Background Papers: Nil

Contact Officer: Darrell Marchand, Energy & Environmental Management Officer

Tel: (01865) 810429

April 2005

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