Heat in buildings: Local Government Oversight Group minutes - March 2023

Attendees and apologies

• James Fowlie, COSLA
• Robert Nicol, COSLA
• Calum Lindsay, COSLA
• Mike Callaghan, COSLA
• Sue Kearns, Scottish Government
• Alice Hunter, Scottish Government
• Amy Tickell, Scottish Government
• Christine McKay, Scottish Government
• Ciara O'Conner, Scottish Government
• Drew Murphy, Scottish Government
• Edmund Chapman, Scottish Government
• James Hemphill, Scottish Government
• Jamie Gregory, Scottish Government
• Karen Major, Scottish Government
• Lynne Hunter, Scottish Government
• Maddie MacLellan, Scottish Government
• Neal Rafferty, Scottish Government
• Ross Ramsay, Scottish Government
• Saskia Kearns, Scottish Government

Items and actions

Heat in Buildings Programme Overview

The Scottish Government (SG) provided an overview of the Heat in Buildings (HIB) Programme.

The Convention of Scottish Local Authorities (COSLA)’s questions focused on where we are within the HIB programme including in terms of how much of the funding allocated this Parliament has been committed, where it has been committed, how much is left to spend and how far this funding takes us towards our 2045 targets.  

The Scottish Government responded that flexibility has been retained within funding but we hope to be able to provide greater clarity in the future. The pandemic and cost of living crisis has restricted some spend in recent years.

It was noted that work is currently being done to catalyse future investment but the landscape is constantly changing and therefore flexibility for funding is required.  

Action

The Scottish Government offered a further meeting to provide more detail.

Heat and Energy Efficiency Scotland (HEES) update

HEES agency progress

SG provided an overview of work so far to establish Heat and Energy Efficiency Scotland.

HiB public engagement strategy

SG provided an overview of plans for heat in buildings public engagement.  

COSLA noted that public communications is critical to whole programme. 

Delivery programmes overview

Public Sector buildings

SG provided an overview of the £200 million Public Sector Estate Decarbonisation Scheme. It was noted that the fund had been opened up to make it more flexible but more work was needed to open up a pipeline of projects. Barriers to using the fund was different in different places but included limited staffing resource/capacity in some places. It was noted that the Scottish Government want to work in partnership with LAs, investing and working with people.

COSLA noted that there is a need to understand more where funding programmes are needed. The importance of targeted interventions reflecting the differences between different places was highlighted.

Action

A further conversation was proposed. 

Area Based Schemes

SG provided an overview of Home Energy Scotland’s Grants and Loans, Area Based Schemes and ECO funding.

HIB policy and regulations update

HIB Bill consultation

SG provided an overview of the Heat in Buildings Bill process and proposals for regulating domestic buildings, non-domestic buildings, compliance mechanisms and plans for clarifying existing legislation of heat networks through the new Bill.

COSLA noted that the regulations are critical to what we want to achieve but challenging. There is a need to take politicians through this step by step. COSLA thanked colleagues for drafting the paper for the COSLA Environment and Economy Board Meeting and noted that it was well received.

Heat networks regulations

SG provided an overview of work packages and timelines including Building Assessment Reports (BARs) and heat network zoning, consenting and key network assets, permitting and local authority cost strategy and licensing and powers of license holders

It was noted that an overview paper has been sent to the COSLA Environment and Economy board. The Board was interested in the cost implications of the heat networks work. 

Energy Efficiency Standard for Social Housing 2 (EESSH2) review

SG provided an update on progress on the EESSH2 review which aims to align EESSH2 with the Scottish Government’s net zero target.

COSLA highlighted that local authorities want to improve the energy efficiency of their social hosing stock. However they noted the challenge of having to keep rents low and the impact this has on the availability of funding for implementing EESSH2. They are supportive of this work but need further discussion about how to make it happen. These discussions are already planned.

Local Heat and Energy Efficiency Strategies (LHEES) progress

SG provided an update on LHEES and what the Scottish Government’s plans are going forward including planned work to support local authoritiess whilst they develop their first LHEES.