Report of Climate Change Officer
To
Corporate Director of Housing and Environment
For
Delegated Decision
On
19 June 2014
Approval of Civic Centre Heating and Carbon Reduction Projects
1.
SUMMARY
1.1
The purpose of this report is to approve the funding source for a heating
replacement project at the Civic Centre that will enable the Council to reduce
its energy use and carbon dioxide emissions, plus will ensure the continued
use of the building and a more robust and flexible energy supply.
1.2
Key Decision – This is a key decision as the proposed projects meet the
capital expenditure threshold (£250,000), therefore it is contained in the
Register of Key Decisions.
2.
RECOMMENDATION
To be resolved by the Corporate Director of Housing and Environment
(i)
That capital funding from the Council’s Energy Efficiency Budget be used to
replace the current coal fired heating at the Civic Centre with more energy
efficient alternative forms of heating.
3.
BACKGROUND
3.1
The Government has committed to reducing carbon dioxide emissions by
34% by 2020 and by 80% by 2050 (against a 1990 baseline), and to a target
of 20% of UK energy being from renewable sources by 2020. In all climate
and energy policy documents published by the Government, energy efficiency
and increased use of renewable energy are seen as central to achieving
carbon emissions reduction aims. Local government is a major consumer of
energy and as a community and business leader it must set a good example
and take a leading role in contributing to the achievement of these targets.
3.2
The Council signed the Climate Local Declaration in June 2013 and has been
working towards an agreed carbon reduction target of 35% from 2008/09 to
2013/14 through its Carbon Management Plan 2011. The proposed project
will make a contribution to achieving this target and future targets to be set in
the summer of 2014.
3.3
The Council set aside resources to fund energy efficiency projects with a
number of projects being undertaken since the Carbon Management Plan was
set up in 2011 and any unspent resources have been carried forward from
year to year. At its meeting on 4 March 2014, the Council approved the carry
forward of £323,000 (this was split between the solar panel scheme
[£180,000] and “other carbon schemes”, [£143,000]) for future schemes.
When schemes are developed, the projects are individually assessed on their
merits and overall cost and carbon dioxide savings compared against
payback period to ensure those initiatives with the highest return on
investment and/or carbon dioxide savings are prioritised. In 2010, delegated
authority was also given to the Corporate Director for Housing, Operational
and Property Services (now Corporate Director for Housing and Environment)
to allow budgets to be approved at Capital Programme Board meetings to
progress energy efficiency projects.
3.4
The Civic Centre is the final corporate building to be heated by coal, therefore
in order to demonstrate continued action to tackle climate change, these
boilers have now been prioritised for replacement. A direct replacement of the
coal boilers with gas fired boilers have been estimated to reduce CO2
emissions by at least 40% with an additional saving coming from the offset
electricity that will be created by an additional gas fired Combined Heat and
Power (CHP) system. Approval to proceed with this project was given at a
Capital Programme Board meeting on 13 May 2014. The Council also needs
to prioritise the resources that it has available, therefore the decision was
taken not to progress with the Solar Panel project and to use that budget for
the work required to replace the coal fired boilers with gas fired boilers.
3.5
Installing conventional boilers would ensure compatibility with the existing
distribution systems in terms of circulation temperatures, and ensure a reliable
and robust installation for what is an important ‘hub’ building. This will also
help to deal with concerns over heating supply stability, as the boilers are 28
years old and past their expected lifespan. The boilers are having to regularly
be repaired as they are leaking, (six major repairs, on both boilers have been
required in the last six months) and there are grave concerns from the
Council’s Senior Facilities Maintenance Technician and Cofely (who run the
maintenance contract on the boilers) about the boiler integrity, increased
costs for maintenance, increased difficulty in locating spare parts and the
reduced efficiency of the current system.
3.6
As the estimated costs for this work exceed £250,000, this project has been
placed on the Register of Key Decisions for approval separately from the
delegated authority approved in 2010. A further report will be prepared to
allow the funds from the Carbon Schemes – Solar Panel budget (£180,000) to
be vired to the unallocated Other Carbon Schemes budget (currently
£143,000) to allow this work to be progressed.
4.
OPTIONS AVAILABLE
4.1
The recommended option is to approve the use of the Council’s Energy
Efficiency Budget to replace the current coal fired boilers at the Civic Centre.
4.2
Do nothing – this is not a viable option as it is not in keeping with the council’s
position as a signatory of the Climate Local Declaration, it will not address the
concerns over climate change or the need to address the Government targets
over carbon dioxide reduction. It will also not address the Council’s energy
and resource use issues and will not deal with the concerns over the
continued use of the Civic Centre as a main Council asset.
6.
RISK ASSESSMENT OF RECOMMENDATIONS
Risk
Risk Assessment
Risk
Level
Risk Management
What is the risk
e.g.
Explanation of the risk
High/Medi
um
How the risk is to be mitigated.
Reputation
The failure to meet
Climate Local and
Government targets
on Climate change will
damage the Council’s
green credentials
Med
The setting of a future
challenging target for CO2
reduction and the continuation
of the carbon management
plan through the installation of
more energy efficient heating
systems.
Timescales
There is at least a six
month lead in time for
this project, because
of the need to design
and procure a suitable
gas supply to the Civic
Centre, on top of the
heating system
Med.
Council failing
to achieve its
own targets
for CO2
reduction
The Council failing to
meet its own CO2
reduction targets
would be costly and
would damage the
Council’s green
credentials
Medium
This project will be individually
monitored against its own
specific risks (contained within
the Business Case submitted
to CMT on 29 April 2014) by
the Climate Change Officer
and the Capital Programme
Board. The board has already
been made aware of a
potential requirement for a
contingency plan if the heating
cannot be replaced before the
current boilers become
obsolete.
The project will help the
Council to cut its current CO2
emissions from the Civic
Centre by at least 40% and
make a dramatic impact on
the Council’s emissions as a
whole.
7.
ALIGNMENT TO COUNCIL PRIORITIES
7.1
This will align with Mansfield Sustainable Community Strategy and the climate
change agenda. The reduction in energy use will reduce emissions of all other
pollutants as well as reducing CO2 emissions and this target will therefore
contribute to the council’s own priority of a Clean, Green and Pleasant
Environment.
8.
IMPLICATIONS
(a)
Relevant Legislation – The Sustainable Energy Act 2003 – makes provision
for the development and promotion of a sustainable energy policy in the
United Kingdom. The Climate Change and Sustainable Energy Act 2006 aimed at encouraging energy efficiency and micro-generation and reducing
fuel poverty. Part 1, section 2 (1) of The Local Government Act 2000 enables
the council to do anything which it considers is likely to achieve economic,
social, and environmental wellbeing of its area. In determining whether, or
how to exercise the power under subsection (1), a local authority must have
regard to their sustainable community strategy. One of the priorities for action
within Mansfield’s community strategy is to tackle Climate Change and reduce
carbon emissions across the District. This project therefore helps to achieve
economic and environmental improvements, through reduced emissions and
improved efficiency for the Council and helps towards mitigation against the
predicted effects of Climate Change and other environmental impacts.
(b)
Human Rights – No implication.
(c)
Equality and Diversity – Any contractor engaged on work which is generated
by this agenda will be required to show commitment to the council’s equality
and diversity standards.
(d)
Climate change and environmental sustainability – Implicit in the report
(e)
Crime and Disorder – No implication
(f)
Budget /Resource – There is £323,000 remaining in the Energy Efficiency
budget which is sufficient to undertake the heating work required.
9.
COMMENTS OF STATUTORY OFFICERS
(a)
Head of Paid Service – No comments
(b)
Monitoring Officer – No specific comments.
(c)
Section 151 Officer – The resources within the Energy Efficiency Fund is
sufficient to meet the estimated costs of these works.
10.
CONSULTATION
None
11.
BACKGROUND PAPERS
None
Report Author
Designation
Telephone
E-mail
-
Helen Bartle
Climate Change Officer
463812
hbartle@mansfield.gov.uk