Proposed decision – For KCC, subject to S151 officer sign off, to accept a Grant from the Public Sector Decarbonisation Fund from Salix Finance on behalf of the Department of Business, Energy, and Industrial Strategy. (BEIS). The grant funding will be for up to £21m for several proposed energy projects, and up to a further £2.25m for school site energy projects. A Section 31 grant is proposed.
The Department for Business, Energy, and Industrial Strategy (BEIS) launched the Public Sector Decarbonisation Scheme in autumn 2020 which is being delivered on its behalf by Salix Finance.
The Grant Scheme offered £1bn of grant funding which aligned with BEIS’s new mission and priorities: fighting coronavirus, backing business, unleashing innovation and tackling climate change. The scheme will also encourage green investment, supporting the Government’s net-zero and clean growth goals.
The scheme provides funding for capital energy efficiency and heat decarbonisation projects within public sector non-domestic buildings, including central government departments and non-departmental public bodies in England only, and will deliver the following objectives:
• Deliver stimulus to the energy efficiency and heat decarbonisation sectors, supporting jobs.
• Deliver significant carbon savings within the public sector.
The scheme allows public sector bodies including eligible central government departments and their non-departmental public bodies in England only to apply for a grant to finance up to 100% of the costs of capital energy-saving projects that meet the scheme criteria.
This FED is in recognition of BEIS wishing to award KCC a grant totalling £20,643,013.64 for several energy projects to decarbonise the KCC estate. These include two solar park projects, solar PV (photovoltaic) on KCC buildings, funding for a Maidstone Heat Network, heat pump projects and funding for LED (light-emitting diode) lighting projects.
This FED is additionally in anticipation of a further £2.25m for school site energy projects that will support schools’ efforts to also reach Net Zero.
Reason for Urgency
The Grant Offer Letter requires KCC to sign and return binding documents accepting the grant by1 March 2021.
This funding has the potential to help KCC make significant reductions to it carbon emissions and meet its target to be net zero by 2030. It also has the added benefits of reducing KCC’s energy costs and providing an income to KCC. It also helps to stimulate the low carbon economy in Kent and create local jobs as well as set up some key development infrastructure to meet future energy challenges such as security of supply.
Decision type: Key
Decision status: Recommendations Approved
Division affected: (All Division);
Notice of proposed decision first published: 01/03/2021
This decision will be taken under urgency procedures.
Decision due: 1 Mar 2021 by Cabinet Member for Environment
Reason: Urgent Decision - Immediate implementation
Lead member: Cabinet Member for Environment
Lead director: Stephanie Holt-Castle
Contact: Steve Baggs, Energy Manager Email: steve.baggs@kent.gov.uk Tel: 01622 605307.
Consultees
No Cabinet Committee consultation due to urgency.
Consultation will take place on individual projects as required.
Financial implications: • Financial Implications • 100% grant funding to the value of £20.6m. • Funding has to be spent by March 31st 2022. • Project should complete by September 2021, but extensions are available on request to complete projects. KCC will not accept the grant funding without the S151 officer having reviewed and agreed with the final terms and conditions as they apply to each of the projects KCC intends to accept grant funding for.
Legal implications: KCC will not accept the grant funding without the S151 officer having reviewed and agreed with the final terms and conditions. A Section 31 grant is proposed to enable prompt payment.
Equalities implications: EqIAs are being undertaken or will be undertaken for the projects that have been identified against the £20.6m bid and grant, and £5.0m bid and grant.