Local heat and energy efficiency strategies and delivery plans: guidance

2. Requirements

The Local Heat and Energy Efficiency Strategies (Scotland) Order 2022^[6]

2.1. The LHEES Order places a duty on local authorities to prepare, publish and update a Local Heat and Energy Efficiency Strategy and Delivery Plan.

2.2. The Order requires local authorities to:

• publish its first Local Heat and Energy Efficiency Strategy and its first Local Heat and Energy Efficiency Delivery Plan on or before 31 December 2023.
• keep its Local Heat and Energy Efficiency Strategy and its Local Heat and Energy Efficiency Delivery Plan under review.
• publish an updated Local Heat and Energy Efficiency Strategy and Delivery Plan at intervals of no more than 5 years after the date of publication of the previous Strategy and Delivery Plan.
• have regard to the guidance when preparing its Local Heat and Energy Efficiency Strategy and Delivery Plan

2.3. The Order defines a Local Heat and Energy Efficiency Strategy as a long-term strategic framework for the improvement of the energy efficiency of buildings in the local authority's area, and the reduction of greenhouse gas emissions resulting from the heating of such buildings.

2.4. The Order defines a Local Heat and Energy Efficiency Delivery Plan as a document setting out how a local authority proposes to support implementation of its Local Heat and Energy Efficiency Strategy.

The Heat Networks (Scotland) Act 2021

2.5. Section 47 of the Heat Networks (Scotland) Act^[7] places a duty on local authorities to carry out a review to consider whether one or more areas in its area is likely to be particularly suitable for the construction and operation of a heat network.

2.6. In carrying out a review under Section 47(1), a local authority must have regard to the matters mentioned in Section 48(1).

2.7. The LHEES Methodology sets out an approach to support local authorities to discharge this duty.

2.8. Section 47(4) – the decision to proceed to consider whether to designate the area as a heat network zone in accordance with Section 48 and; Section 47(6) – the publishing of a statement in relation to each area considered as part of the review, are being considered separately by Scottish Government.

2.9. The designation of a heat network zone (as described in Section 48 of the Heat Networks (Scotland) Act) is being considered separately by the Scottish Government.

National strategies, priorities, plans and targets

2.10. Other national strategies, priorities, plans and targets that should be considered when developing and implementing an LHEES include, but are not limited to:

• The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019^[8]
• Update to the Climate Change Plan 2018–2032^[9]
• The Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019^[10]
• Programme for Government^[11]
• The Heat in Buildings Strategy 2021
• Energy Efficiency Standard for Social Housing (EESSH 1&2)^[12]
• The Scottish Energy Strategy 2017^[13] (update due in 2022)
• The National Planning Framework^[14] (NPF4 due in 2022)
• Hydrogen Policy Statement 2020^[15]
• Housing to 2040^[16] (2021)
• Tenements (Scotland) Act 2004^[17]
• Historic Environment Policy for Scotland 2019^[18]
• The Planning (Listed Building Consent and Conservation Area Consent Procedure) (Scotland) Regulations 2015^[19]
• Heat Networks Delivery Plan^[20]
• Local Energy Policy Statement^[21]

Local strategies, priorities, plans and targets

2.11. Local strategies, priorities, plans and targets that should be considered when developing and implementing an LHEES could include, but are not limited to:

• Local Housing Strategies
• Local Development Plans
• Local Outcome Improvement Plans or Community Plans
• Corporate Plans or City Plans
• Climate Change Strategies
• Fuel Poverty Strategies
• Economic Strategies
• Local Energy Plans, or Energy Planning Strategies or District Heating Strategies
• Community Energy Plans or Strategies
• Strategic Housing Investment Plan
• Joint Health and Social Care Partnership
• Open Space Strategy
• Council Asset Plan or strategy
• Local Plans or Place Plans
• Any designated Heat Networks Zones

2.12. Regional, community, sector, organisation and business plans should also be considered where appropriate.

2.13. LHEES should have specific interaction with local authorities' Local Housing Strategies (LHS). Section 11 of the LHS guidance 2019^[22] makes reference to LHEES. This LHEES Guidance will not change the reporting duties on fuel poverty, energy efficiency and climate change set out in the LHS guidance. Instead, the analysis required to produce LHEES, along with the resulting Strategies and Delivery Plans will provide key evidence to support reporting in the LHS. At the same time, the outcomes and actions set out in the LHS should feed into and shape LHEES.

2.14. Our Draft National Planning Framework 4 (NPF4) included policy proposals around Local Development Plans having to consider LHEES and heat network when allocating land. We laid our draft Fourth National Planning Framework (NPF4) in the Scottish Parliament on 10 November 2021. Alongside Parliamentary scrutiny of the draft, we ran a public consultation, supported by an extensive engagement programme, with comments invited by 31 March 2022. We are now carefully considering the broad range of views shared with us before laying a finalised NPF4 in the Scottish Parliament in autumn 2022.

2.15. Local Development Plan sites should be considered when undertaking zoning as part of LHEES, in particular feeding into potential heat network zones.

2.16. Local authorities should consider funding and resource available to support their LHEES Delivery Plan from both public and private sources.

Impact assessments

2.17. Local authorities should consider what impact assessments may be required to be carried out to support the development of LHEES. Impact assessments to be considered include:

• Business and Regulatory Impact Assessment (BRIA)
• Child Rights and Wellbeing Impact Assessment (CRWIA)
• Data Protection Impact Assessment (DPIA)
• Equalities Impact Assessment (EqIA)
• Fairer Scotland Duty (FSD)
• Island Communities Impact Assessment (ICIA)
• Strategic Environmental Assessment (SEA)

2.18. The Scottish Government expects listed public authorities in Scotland to assess the impact of their policies or practices against the requirements of the Equality Act 2010, and to publish the results of those assessments.

2.19. It should be noted that the Scottish Government carried out a Business and Regulatory Impact Assessment on the LHEES Order.^[23]

2.20. Impact assessments^[24] were carried out on the Scottish Government's Heat in Buildings Strategy and may be relevant to any impact assessments carried out by local authorities in the development of LHEES.

Publication requirements

2.21. The Local Heat and Energy Efficiency Strategies (Scotland) Order 2022 requires that a local authority must publish its first Local Heat and Energy Efficiency Strategy and Delivery Plan on or before 31 December 2023.

2.22. Strategies and Delivery Plans may be published as one or separate documents and should be published on the local authority's website following formal adoption by the Council.

2.23. Public consultation should be undertaken on draft Strategies and Delivery Plans before they are adopted and published. This consultation should follow the local authorities own processes and practices. See the Stakeholder Engagement guidance in Section 3 for more details on consultation.

2.24. Local authorities are not required to formally submit Strategies and Delivery Plans to Scottish Ministers for approval, however the Scottish Government would welcome the opportunity to review a summary of draft Strategies and Delivery Plans and provide feedback.

2.25. Strategies and Delivery Plans should be published in accordance with accessibility standards, including the Public Sector Bodies (Websites and Mobile Applications) (No. 2) Accessibility Regulations 2018.

2.26. A significant amount of data and analysis will sit behind the Strategies and Delivery Plans. Local authorities should liaise with the Scottish Government to share appropriate data to enable a national picture of heat decarbonisation pathways to be created, and for relevant and appropriate data to be shared, for example with technical consultants, through national portals such as the Scotland Heat Map and/or the Improvement Service.

2.27. When sharing, publishing or otherwise releasing information, either in electronic or hard copy, regardless of the format of the information, it is important to ensure compliance with both the terms of the Scotland Heat Map Framework Agreement^[25], Home Analytics and Non-domestic Analytics and, with respect to Ordnance Survey data, the Public Sector Geospatial Agreement (PSGA). In particular, attention should be paid to framework document 2.2 Metadata, Limitations and Data Management, which outlines restrictions on the use of data included in the Heat Map.

2.28. The Scotland Heat Map includes data from Ordnance Survey (OS) premium products. As PSGA members, each Scottish Local Authority is permitted to use this data. It is important to remember, however, that compliance with OS licence terms is the responsibility of each individual local authority. The Scottish Government cannot advise on the sharing or publication of OS data. More information on the PSGA licence, including details of what is and is not permitted, is available from the Ordnance Survey website.^[26]

2.29. The information shared by the Scottish Government with Local Authorities in support of LHEES is not permitted to be used for financial gain or profit.

2.30. The Scottish Government as with other public sector bodies remains subject to Freedom of Information legislation.