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EE/S3/09/R3

3rd Report, 2009 (Session 3)

Report on the Climate Change (Scotland) Bill

Remit and membership

Remit:

To consider and report on the Scottish economy, enterprise, energy, tourism and all other matters falling within the responsibility of the Cabinet Secretary for Finance and Sustainable Growth apart from those covered by the remits of the Transport, Infrastructure and Climate Change and the Local Government and Communities Committees.

Membership:
Ms Wendy Alexander
Gavin Brown
Rob Gibson (Deputy Convener)
Christopher Harvie
Marilyn Livingstone
Lewis Macdonald
Stuart McMillan
Iain Smith (Convener)

Committee Clerking Team:

Clerk to the Committee
Stephen Imrie

Senior Assistant Clerk
Katy Orr

Assistant Clerk
Gail Grant

Report on the Climate Change (Scotland) Bill

The Committee reports to the Parliament and the Transport, Infrastructure and Climate Change Committee as follows—

BACKGROUND

1. The Climate Change (Scotland) Bill (“the Bill”) was introduced to the Scottish Parliament on 4 December 20081. The Bill was referred to the Transport, Infrastructure and Climate Change Committee as the lead committee, and to the Rural Affairs and Environment Committee as the secondary committee. Although it has not been formally designated as a secondary committee, with the agreement of the lead committee, the Economy, Energy and Tourism Committee took evidence on Part 5, Chapter 3 of the Bill as energy efficiency and renewable heat issues fall within the Committee’s remit.

2. In addition to the written submissions of evidence received, the Committee held three oral evidence-taking sessions as follows—

Evidence from the Scottish Government’s Bill Team (4 February, 2009)

Colin Imrie, Deputy Director, Energy Markets Division\
Sue Kearns, Head of Renewable Strategy and Onshore Renewables
Jamie Hume, Deputy Director, Renewable Energy
Gavin Peart, Assistant Head of Building Standards Division
Alec Millar, Principal, Non-Domestic Energy, Building Standards Division
Philip Wright, Deputy Director of the Climate Change Division
Cameron Maxwell, Policy Adviser on Climate Change, Scottish Government

Evidence from various interested organisations (4 February, 2009)

John Stocks, Manager for Scotland, The Carbon Trust;
Chas Booth, Senior Press and Parliamentary Officer, Association for the Conservation of Energy;
Fergus Tickell, Managing Director, Northern Energy Developments Ltd;
Elaine Waterson, Strategy Manager, Energy Saving Trust;
Elizabeth Leighton, Senior Policy Officer, WWF Scotland

Evidence from the Minister for Transport, Infrastructure and Climate Change and his officials (4 March 2009)

Stewart Stevenson MSP, Minister for Transport, Infrastructure and Climate Change
Philip Wright, Deputy Director of Climate Change
Gavin Peart, Assistant Head of Building Standards
Sue Kearns, Head of Renewable Energy Policy Team
Sarah Hart, Energy Efficiency Policy Analyst, Scottish Government

3. The Committee is grateful to all of those who gave both written and oral evidence to it. This information has proved to be useful in terms of preparing the Committee’s report. Copies of the written submissions, extracts from the minutes and from the Official Reports of the relevant meetings can be found in the annexes to this report.

About the Climate Change (Scotland) Bill – Part 5, Chapter 3

4. According to the Scottish Government, the main objective of the Bill is to set a long-term target to reduce Scotland’s emissions of Kyoto Protocol greenhouse gases by 80% by the year 20502. This long-term target will be supported by a framework of annual targets intended to drive the policies necessary for achieving this target. In the Scottish Government’s view, many of the policy measures required to meet these targets will not require legislation to implement them, but certain climate change mitigation and adaptation policies have been identified which do require legislation and the Bill contains provisions in Part 5 which will allow these to be taken forward3.

5. For the Economy, Energy and Tourism Committee, it is the Bill’s provisions in Part 5, Chapter 3 that have been the sole focus of our evidence-taking and of this report. This Chapter contains three distinct sets of provisions. The first set of provisions in this Chapter require the Scottish Ministers to produce an action plan setting out their current and proposed measures to promote the energy efficiency of buildings in Scotland, as well as measures to encourage behavioural change towards energy efficiency. The second set of provisions contains measures for assessing the energy performance of existing non-domestic buildings in order to raise awareness of the contribution that those buildings can make to mitigating climate change through reducing energy demand and thereby emissions of greenhouse gases. The third set of provisions in this Chapter place a duty on the Scottish Ministers to take such steps as they consider appropriate to promote the use of heat from renewable sources.

Section 484

6. The provisions in this section on energy efficiency are intended to cover how the Scottish Ministers will promote energy efficiency in Scotland, particularly in relation to how this will improve the energy performance of buildings in Scotland. The provisions require the Scottish Ministers to produce an action plan setting out current and proposed measures to promote the energy efficiency of buildings in Scotland, as well as measures to encourage behavioural change.

7. Currently, section 179 of the Housing (Scotland) Act 2006 (“the 2006 Act”) requires the Scottish Ministers to prepare a strategy for improving the energy efficiency of living accommodation. Section 179(6) allows that strategy to be part of a strategy for improving energy efficiency generally. According to the Scottish Government, the proposals for an action plan in the Climate Change (Scotland) Bill will have that practical effect. The Scottish Ministers therefore propose to repeal section 179 of the 2006 Act to avoid duplication. In addition, the proposals in the Bill will, in the view of the Scottish Government, strengthen the existing statutory duty in the 2006 Act in terms of reporting and publishing. Bringing the duty in relation to living accommodation within the general duty in the Bill will, according to Ministers, ensure a consistent approach to tackling energy efficiency across all sectors, and will allow for better alignment of reporting on implementation and carbon savings, which can then be accounted against the overall target of this Bill.

8. The Scottish Ministers are required to report on the action plan annually, and to revise the action plan on a regular basis, but as a minimum every three years in line with the Spending Review process.

9. The Scottish Government notes that the action plan could be developed without the need for primary legislation, but the Scottish Ministers believe that a legislative requirement to develop, revise and report on an action plan will give it the weight which this issue requires. Furthermore, Ministers consider it will show the level of importance that these measures will play in tackling climate change and helping with rising fuel costs. It will also, in their view, be an important means for delivering a coordinated approach.

Section 495

10. Section 49(1) requires the Scottish Ministers to lay the initial (energy efficiency) plan and any subsequent revised plan before the Scottish Parliament as soon as is reasonably practicable after it is published. Subsections (2) and (3) require Ministers to lay a report before the Scottish Parliament on what steps have been taken to implement the plan. The report must be laid within 12 months of the plan being first published and at least annually thereafter.

Section 506

11. According to the Scottish Government, the aim of the provisions for improving the energy performance of existing non-domestic buildings is to raise the contribution that the existing non-domestic stock can make to mitigating climate change. Buildings account for over 40% of emissions and there is scope to reduce these levels. They are to be subject to an assessment of the emissions of greenhouse gases and energy performance, an enhanced form of energy performance certificate (EPC).

12. This is one of the areas of the Bill on which the Scottish Government is currently consulting. According to Ministers, the results of the ongoing consultation will inform the detailed route forward but could call on building owners or their delegated persons to draw up improvement action plans. These plans may include building work actions for owners to follow which lead to improved performance, and where appropriate could also include operational measures that building users may choose to act on. This would also apply to traditional and historic buildings, recognising that appropriate environmental improvements should be undertaken with due consideration to the historic character of the buildings in question.

13. As the policy memorandum notes, the provisions in this section of the Bill are enabling in nature and provide for regulations in a number of areas to be made in due course. This is particularly the case in relation to the content and form of assessment.

Section 517

14. Part 5 Chapter 3 of the Bill also places a duty on the Scottish Ministers to take such steps as they consider appropriate to promote the use of heat from renewable sources.

15. The Scottish Ministers have devolved responsibility for the promotion of heat from renewable sources. The Scottish Government’s policy aim is to build a commercially viable, diverse, renewable heat industry in Scotland. Renewable heat take-up across the UK is very low (<1%) and making progress on renewable heat will be crucial, according to the Scottish Ministers, if Scotland is to meet the EU 2020 target of 20% of final consumption of energy from renewable sources (which is made up of individual targets for electricity, heat and transport).

key issues

16. This section of the report sets out the key issues considered by the Committee in its scrutiny of Part 5, Chapter 3 of the Bill. These are set out on a section by section basis, following the numbering of the Bill itself, as well as looking at a number of more general issues.

General issues

The merits of a framework bill with enabling provisions

17. As noted by the Scottish Government itself, much of the Bill can be considered as ‘enabling’ giving the Scottish Ministers the power to take forward a series of initiatives, the detail of which will be part of consultations and which will be introduced through secondary legislation laid in the Parliament at a later date or through the issuing of documents such as the various action plans.

18. In the sections of the Bill of most interest to this Committee, namely sections 48 to 51 inclusive, this ‘enabling approach’ is especially apparent. As the Minister for Transport, Infrastructure and Climate Change (“the Minister”) told the Committee—

“The bill is a framework bill. The details of how its provisions will be implemented will largely be in secondary legislation. When the Government presents secondary legislation or policy documents, committees and parliamentarians generally will be able to probe the accompanying explanations and justifications, as is appropriate.”8

19. However, this approach of presenting a ‘framework bill’ for which much of the detail on the planned implementation has yet to be published or is still subject to ongoing or further consultation once the Bill is passed, did receive some criticism amongst the witnesses giving evidence to the Committee.

20. For example, in relation to the proposed consultation on the energy efficiency action plan which follows the passing of the Bill, Chas Booth of the Association for the Conservation of Energy told the Committee that, “The Government has already consulted on the energy efficiency strategy, so I fail to see why another consultation on an action plan is needed.”9

21. Similarly, when asked if it was necessary for the Bill to be passed before the detail of the energy efficiency action plan was published, Elizabeth Leighton of WWF Scotland said “There is no reason why it [the action plan] cannot go ahead now.”10

22. Other sections of the Bill are also the subject of ongoing consultations to develop the detail of how the objective will be met. For example, as a Scottish

Government official noted in relation to the proposal to increase the proportion of heat generated from renewable energy sources, “the intention is to provide a market incentive that will work for individual householders. Exactly how that will work is the subject of the consultation.”11

23. At the request of the Committee, the Minister provided further details setting out the current status of the various Scottish and UK consultations that are relevant to these sections of the Bill. These are set out in Tables 1 and 2 below.

Table 1: Scottish Government consultations

Source: Scottish Government

Table 2: UK Government consultations

Source: Scottish Government

24. The Minister also commented on the proposed ‘enabling approach’ when he gave evidence to the Committee and in particular on the balance that needs to be struck between such an approach and the need for parliamentary scrutiny at stage 1 of the legislative process. He said—

“…in every bill, there is a tension between what is contained in primary legislation and what is drawn forward in secondary legislation. It is quite proper that there is a debate on whether in any particular bill the right balance has been struck in that respect.”12

25. Furthermore, the Minister indicated that he would be supportive of committees needing to take further evidence if required. On this he said—

“It is not unprecedented to hold further evidence sessions at stage 2, if that is appropriate. If that were the way to deal with some of the issues that we are not able to bottom out just now, the Government would be happy to co-operate and collaborate and to appear at that stage, if appropriate.”13

26. He also said that, in relation to a timetable for the Bill after stage 1—

“It is not for me to speak for the Minister for Parliamentary Business, who represents our interest in such matters. However, I am interested in ensuring that, to the extent that it is possible, we flesh out any policy initiatives that we take and give Parliament the maximum possible understanding of the implications of anything that might be done.”14

27. In terms of the specific sections of the Bill, the Committee heard a number of concerns about the approach being adopted and also on the timetable for the eventual implementation of the various provisions. Firstly, concern was expressed that the time taken to enact the powers in sections 48 and 49 of the Bill and then conduct a further consultation and subsequently publish an energy efficiency action plan (after a period of up to 12 months) could prejudice the ability of the Scottish Government to meet its statutory targets for 2010 in part through its energy efficiency initiatives.

28. In response, a Scottish Government official told the Committee that it was the intention to publish “an outline of the plan in March [2009]” and that a “series of measures is already under way and to some extent the [energy efficiency action] plan will bring all that action together.”15 This was a point also made by the Minister when he appeared at the Committee.16 However, in his evidence to the Committee, Chas Booth of the Association for the Conservation of Energy said—

“The Scottish Government clearly has something drafted and ready to go. I understand that it does not want to publish it because it is worried that the plan will appear too weak, partly because of concerns about whether responsibility for energy efficiency is devolved or reserved and where the line between promotion and delivery lies. I share your view that 12 months is much too long—a couple of months are all that is needed.”17

29. The second main area of concern expressed by some of the witnesses giving evidence to the Committee related to the terminology used in the relevant sections of the Bill which, in certain respects, refer to a significant degree of latitude for the Scottish Ministers in terms of what they chose to do. For example, section 51(1) of the Bill as drafted – which deals with the promotion of renewable heat – states that, “The Scottish Ministers must take such steps as they consider appropriate [our italics] to promote the use of heat produced from renewable sources.”18 Similarly, in relation to non-domestic buildings, sections 51(1) and 51(2) as currently drafted give the Scottish Ministers the option of laying regulations and a series of possibilities on what “may” be contained therein.19

Devolved versus reserved powers

30. One of the difficulties cited by the Scottish Government in being more specific on the face of the Bill about how the objectives of the Bill in this Chapter will be achieved, is the boundary between what is considered to be devolved and what is reserved to the UK Parliament.

31. The first example that arose relates to the ability of the Scottish Ministers to take steps to “promote” or to “improve” energy efficiency in Scotland. As the policy memorandum notes, “There are limitations on the actions that are within the legislative competence of the Scottish Government for promoting energy efficiency.”20 As the Minister stated in his evidence to the Committee—

“We must be conscious of competences, but I am entirely happy to put it on the record that the policy is to improve energy efficiency. The question whether we can incorporate the word "improve" in the legislation is simply to do with the devolved competence of the Parliament. I am entirely happy to ensure that we deal with and talk to colleagues at Westminster on that. We believe that we can, to an extent, make the change that is sought, but until I have further advice, I cannot give the committee a commitment to do so. We certainly understand the issue and we are seeking to deal with it.”21

32. This is believed to be the factor behind the decision to repeal section 179 of the Housing (Scotland) Act 2006,22 which requires the Scottish Ministers to prepare a strategy for improving the energy efficiency of living accommodation. Section 179(6) allows that strategy to be part of a strategy for improving energy efficiency generally. According to the Scottish Ministers, repeal of this section and its replacement by the provisions in the Climate Change (Scotland) Bill will avoid unnecessary duplication and will have the same “practical effect”.23 In his evidence to the Committee on this point, the Minister for Transport, Infrastructure and Climate Change said—

“There is certainly no intention to dilute. The reason why we are having discussions is to ensure that we provide a legally binding response that ensures that no dilution is possible.”24

33. His view is not one shared by some of the organisations that gave evidence to the Committee. For example, Chas Booth of the Association for the Conservation of Energy said that “…there must be some way forward that ensures that section 179 of the 2006 act is not diluted.”25 Similarly, Elizabeth Leighton of WWF Scotland said—

“There is little doubt that “promote” dilutes the requirement in the Housing (Scotland) Act 2006 to “improve” energy efficiency. There must be scope to maintain that and to import that language into the bill, rather than repeal the requirement, and to maximise, rather than minimise, devolved powers in that area.”26

34. A similar issue relating to the boundary between devolved and reserved powers arose in relation to the promotion of micro-generation technologies such as micro-wind and solar thermal. A Scottish Government official told the Committee that Ministers consider the promotion of these technologies to be largely reserved and that is why the relevant initiatives would be part of any energy efficiency action plan and not on the face of the bill.27

35. The central question for the Committee was whether the boundary between reserved and devolved competences placed any limitations on the ability of the Scottish Government to meet its various objectives. On this issue, the Minister told the Committee that—

“…energy efficiency is a shared responsibility for the Scottish Government and the Westminster Administration. I do not think that that sharing of responsibility should cause any great difficulties, as I have no indication that people are unwilling or unable to work closely together.”28

36. Although no such indication was given by the Minister when he appeared before the Committee on 4 March to given oral evidence, in response to a further correspondence from the Committee, the Minister has now given a commitment to amend the Bill at stage 2 in respect of the issue of ‘promoting’ versus ‘improving’ energy efficiency. He said—

“It is proposed to seek to amend section 48(2) to replace the word “promote” with the word 'improve' to change this provision to “improve” the energy efficiency of living accommodation.”29

The setting of targets and the expected contributions from energy efficiency and renewable heat

37. The third, more general issue raised during the Committee’s evidence-taking is the setting of specific targets for the contributions that energy efficiency and renewable heat can play in meeting the overall targets within the Bill. For example, in relation to the proposed action plan on energy efficiency, Elizabeth Leighton of WWF Scotland said, “We recommend that it [the action plan] include targets for energy efficiency and that progress is reported, either in the annual report or as part of an emissions reduction plan addressing demand reduction, energy efficiency and renewables.”30

38. Her view was supported by Friends of the Earth Scotland in its evidence to the lead committee on the Bill, which states that “the reporting duties [in the Bill] should include detail on key measures such as energy demand reduction, and parallel consumption side reporting.”31

39. In response to this issue, the Minister suggested that specific targets for energy efficiency and renewable heat were not required and that “all sectors of our economy and all elements of public, business and private life will need to make appropriate contributions [to the 2030 and 2050 targets set out in the Bill]”.32

Incentivising investment in energy efficiency and renewable heat initiatives

40. The Committee also heard evidence more generally on how the Scottish Government might provide incentives to people and organisations to invest in energy efficiency and/or to consider renewable heat schemes or micro-generation technologies. One specific area which was explored was that of enabling local authorities to reduce the levels of council tax paid by householders who had made such investments. According to information received by the Committee, such a scheme is in place in Northern Ireland (via the system of rates) and in England and Wales (via the council tax).

41. In her evidence to the Committee, Elizabeth Waterson of the Energy Saving Trust told the Committee that “council tax incentives have, in theory, a big role to play in encouraging consumers to take action.”33 Furthermore, she said that “the level of incentive does not have to be that high” and that “talking to people about tax rather than energy efficiency is much more exciting for them and has a big impact.”34 Similarly, in relation to renewable heat systems in the domestic sector, Fergus Tickell of Northern Energy Developments Ltd., said, “There must therefore be innovative thinking about financial incentives, and in that respect, council tax rebates are interesting.”35

42. This view was also shared by Scottish and Southern Energy in its submission to the lead inquiry which states that “all avenues should be explored, such as using local and national tax incentives to reward energy efficiency or microgeneration”.36

43. In his evidence to the Committee, the Minister was non-committal on whether this type of financial incentive would be taken forward in Scotland as it has been in other jurisdictions within the United Kingdom. He told the Committee that the Scottish Government was “quite open-minded” and was “happy to consider these matters.”37 However, he would not be drawn on the matter and indicated that, “We are considering other options, including loans and cashback offers. There is a variety of ways of proceeding on this agenda.”38

‘Green jobs’ and skills gaps

44. One of the wider issues explored by the Committee is the potential to create employment opportunities through investments in energy efficiency and/or renewable heat initiatives. In an announcement made in February 2009, the Cabinet Secretary for Finance and Sustainable Growth outlined his plans to create up to 16,000 ‘green jobs’ over the next decade.39

45. When questioned where these jobs would come from and also what proportion would be produced from the provisions set out in Part 5, Chapter 3 of the Bill, the Minister would only say in his written response that—

“The estimate of 16,000 new green jobs in Scotland by 2020 is based on the UK Renewable Energy Strategy consultation, which cited a figure of 160,000 new energy-related jobs in the UK by 2020. The estimate assumes that Scotland achieves a 10% share of jobs created across the UK. We consider, however, that the Scottish Government's renewables targets, combined with Scotland's natural resource, energy infrastructure and skills mean that we can go higher than this estimate.”40

46. The Committee also sought to address whether the current education and training sector in Scotland is geared up to respond to the employment opportunities that may be provided through this Bill. According to Scottish Government officials, steps are already being taken in this respect—

“We are working on key elements of the renewable action plan and the heat action plan now, mapping out the critical powers, deciding what needs to happen between now and 2020 and beyond, and building on existing intelligence. Doing that hand in hand with industry is fundamental to our approach. We recognise that it is important to engage with industry, skills providers and potential employees—all the key stakeholders—in order to deliver.”41

47. However, as Fergus Tickell of Northern Energy Developments Ltd, told the Committee, “Scottish Government ministers must realise that addressing the skills gap is a key part of the promotion of renewable heat and energy efficiency.”42 Similarly, John Stocks of The Carbon Trust said—

“…there are skills shortages throughout the supply chain, not just in renewables. There is a shortage of people who are skilled in ordinary energy efficiency. The Scottish energy officers network, which is the local authority energy managers meetings, is like musical chairs, only with more posts than people.”43

48. The Minister also indicated that the skills gap was an issue in at least one respect. He told the Committee that—

“One general difficulty is the lack of skills in carbon assessment among planning officials. That has been a constraint, but work is being done to address it.”44

The role of the Scottish Government in promoting energy efficiency in the public sector

49. During the course of our work, the Committee also took evidence from officials from Audit Scotland on that organisation’s recent audit of the energy efficiency performance in the public sector.45 This pointed to a range of areas where performance could be improved.

50. One of these relates to the ‘leadership’ role that can be played by the Scottish Government within the public sector in terms of the wider energy efficiency performance. When questioned on this, the Minister said in a written reply that “there is sufficient leadership shown at the higher levels of the public sector.”46

Estimates of costs

51. A final, more general issue raised during the Committee’s consideration is that of the information set out in the Scottish Government’s Financial Memorandum for the Bill. This is also a subject matter that has been considered by the Parliament’s Finance Committee in its consideration of the Bill. In its overall conclusion, the Finance Committee stated that—

“The Committee notes the enabling nature of the Bill, particularly regarding the provisions contained in Part 5. Significant concern was raised, however, in evidence that not enough details have been made available on the likely cost impacts of these possible, future regulations.”47

52. Furthermore, the Finance Committee considered that—

“…in a number of areas insufficient policy direction has been provided, which has made it difficult for local authorities and businesses to be able to assess the financial impact of the proposals.”48

53. Similar issues were raised in the Economy, Energy and Tourism Committee when taking evidence from the Minister. In his response, the Minister stated that—

“In the financial memorandum, we seek not to give false certainty about what is a framework bill that covers a long period of time but, rather, to give the best possible indication. As we approach many of the interventions, we will of course provide further financial information.”49

54. He also indicated that he did not believe “that financial memorandums claim to be accurate” but that they were designed to be “estimates”50. As a conclusion, the Minister stated that the Scottish Government would “continue to engage and to consider the financial costs that are associated with what is a framework bill to take us to 2050.”51

55. Other matters relating to the costs of particular provisions, such as the proposed energy performance certificates, are covered in subsequent sections of this report.

Section 48 – Promotion of energy efficiency

General permitted development rights for micro-generation technologies

56. The issues of whether this section of the Bill should refer to a role for the Scottish Government to “promote” rather than “improve” energy efficiency, the possible contribution that an energy efficiency action plan will have to any targets for 2010, the use of council tax rebates and the issue of whether further consultation on an action plan is necessary, have all been considered in the preceding sections of this report. In addition, however, the Committee did take evidence on a number of issues relating to increasing the take-up of micro-generation technologies, including that of general permitted development rights for such technologies.

57. As stated above, the Scottish Government considers that the promotion of such technologies involves many issues that are reserved.52 As such, it has not provided any detail on its plans on the face of the bill. It is proposed that any such detail would be part of the energy efficiency action plan once published.

58. In its announcement in early February 2009, the Scottish Government stated that it would enable householders to install certain micro-generation equipment - such as solar panels, biomass systems and heat pumps - at their homes without requiring planning permission.53 However, as part of the same announcement, the Scottish Ministers stated that further work was needed to explore the feasibility of introducing such permitted development rights for air source heat pumps and wind turbines. The importance of such permitted development rights is that planning permission is granted as a right and there is no need to apply to the planning authority for consent.

59. In respect of the decision taken not to include certain technologies such as micro-wind and air source heat pumps for use in urban areas, Elizabeth Leighton of WWF Scotland said that her organisation was “hoping for a more positive approach to installation of microrenewables”.54 Her views were shared by Elaine Waterson of the Energy Saving Trust who told the Committee that, “Not only is it a hassle for consumers to have to go to the planning department and wait for a significant amount of time before they get planning permission, but there is a cost associated with that”.55 She also said that it made “sense for permitted development rights to be extended to community-scale developments.”56

60. This view is also one shared by a range of organisations that gave evidence to the lead committee on this Bill. For example, Scottish Renewables said that it was necessary to “extend general permitted development rights for all microgeneration with sensible, evidence based limits included where appropriate”.57 Furthermore, Scottish and Southern Energy questioned whether the reference data and costs associated with ground source heat pumps used by the Scottish Government were out of date.58

61. In respect of air source heat pumps, the Minister told the Committee that the omission was because of “...difficulties that we and the Westminster Administration are experiencing in getting an adequate definition of noise.”59 However, the Minister went on to say that additional work on air-source heat pumps and wind turbines is under way, which he hoped “will inform further changes that we could—I emphasise the word “could”—make later this year on permitted development rights.”60

Section 50 – non-domestic buildings, assessment of energy performance and omissions

62. One of the main issues in relation to this particular section of the Bill was that of the precise approach to be taken by the Scottish Government to further develop the use of energy performance certificates (EPCs) in the non-domestic buildings sector and the costs associated with this.

63. The provisions in the Bill enable the Scottish Ministers to create regulations which could be used to place obligations on building owners, responsible authorities and other bodies for improving the energy performance of non-domestic buildings. In particular, the Bill allows for regulations to be created which will enable various approaches to be taken on the extent to which the enhanced EPCs are applied to the existing non-domestic building stock. How this might be achieved is outlined in the Policy Memorandum, which sets out seven possible options or scenarios and which vary, in part, in the level of compulsion on the part of the building owner to act on the recommendations made during the EPC process.

64. The Bill’s provisions in this respect were welcomed by the Association for the Conservation of Energy which thought EPCs were “useful” but that there should be “…some form of compulsion and that should go alongside finance—organisations should have a fund to which they can apply for investment in energy efficiency”.61 This organisation also called for an extension to the energy saving Scotland small business loans scheme as well as a domestic version of these grants.62

65. In his oral evidence to the Committee, the Minister indicated that his preference was to move forward on the basis of option 2 as set out in the policy memorandum, namely enhanced EPCs on sale or rent for all buildings and all large buildings with additional guidance to promote uptake of recommendations and an increase in the frequency of certification. If this approach was not successful, he indicated he would be likely to pursue the extension of EPCs to all buildings, not just large buildings, and introduce compulsory uptake of recommendations. In short, he stated that “…compulsion will be necessary if the outcomes are not achieved.”63

66. In subsequent written evidence to the Committee, the Minister went further and indicated that—

“…Stage 2 amendments are proposed to require, through secondary legislation, mandatory implementation of cost-effective improvements to existing non-domestic buildings. This SSI will be subject to affirmative resolution.”64

67. However, he also said in his letter that—

“It is not intended that this provision would be utilised immediately and as announced in the response to the consultation, a voluntary approach will be adopted initially to the implementation of cost-effective improvements to existing non-domestic buildings. This regulation making power is intended for future use if a voluntary approach is considered inadequate for delivering emission savings.”65

68. Whilst we welcome the further information provided by the Minister, the Committee is still not completely clear what is intended to be achieved and how, and we cannot judge at this stage whether the Scottish Government’s preferred option is likely to succeed.

69. Additionally, the Minister’s officials indicated that local authorities would be the enforcement bodies in respect of EPCs and that they would recover costs via penalty charge notices.66 On this particular issue, the Committee did not receive any submissions that indicated that this approach would be problematic. However, it is important to note that bodies such as the Convention of Scottish Local Authorities were not contacted specifically by the Committee for a view although it would have been free to submit evidence if it wished.

70. In addition to the direction of policy, the Scottish Government was also quizzed on the estimated costs for the various options for EPCs. In relation to the two likely scenarios suggested by the Minister (options 2 and 5), the estimates of the average annual costs to local authorities of the provisions relating to EPCs are £4.1m - £5.5m (option 2) and £27.7m - £37m (option 5).67 The potential costs for other bodies, individuals and businesses are £8.2m - £9.6m per year and £55.4m – £64.7m per year respectively.68 Finally, in relation to the costs for the Scottish Government, the ranges were a one-off cost of between £0.5m and £0.6m for options 2 and 5 respectively and an average annual cost of between £0.5m and £12.4m.69

71. To provide greater clarity on the estimated costs, the Scottish Government has indicated that regulatory impact assessments (RIAs), with further cost estimates, will be produced, in due course, along with the secondary legislation to be laid in this area. However, such RIAs are not routinely provided to this Committee when it considers draft Scottish Statutory Instruments. On this point, the Minister indicated that the Scottish Government “…will announce our definitive position, with the information that committees such as this one will need in order to make the necessary judgments.”70

72. A separate issue raised in relation to section 50 of the Bill was its focus only on the non-domestic sector. In evidence to the Committee, organisations such as the Energy Saving Trust and WWF Scotland called for the extension of such provisions to the domestic sector, the latter indicating that “…the [domestic] sector is responsible for more than a third of our emissions” and that “there is a gaping hole in the bill in that respect.”71

73. This was a view shared by Chas Booth of the Association for the Conservation of Energy who said that—

“We need considerably increased investment and powers to ensure that we bring [domestic] buildings with the poorest energy efficiency up to standard. If we do not make a real effort to do that, Scotland will be cursed with a group of people in the hardest-to-treat houses who will be permanently fuel poor.”72

74. Additionally, in its evidence to the Committee, the Energy Saving Trust called for enabling provisions for the domestic building sector to be included in the Bill.73 On this point, in supplementary written evidence provided to the Committee, the Minister said that—

“There are currently no plans to introduce requirements for further periodic energy assessments for the domestic sector other than the requirements for Energy Performance Certificates at sale or rent that have just been implemented. As outlined above, this is because we believe that we can continue to make progress in improving domestic energy efficiency within existing legislation.

The introduction of regulatory requirements for the energy efficiency of housing would, in any case, be likely to drive out CERT investment. This would be contrary to current policy which is to seek to maximise CERT activity in Scotland and means that many Scottish householders would be denied access to this support.”74

75. Finally, in relation to the current energy efficiency standards and the state of Scotland’s domestic and non-domestic building stock, the Committee heard

conflicting views. In response to a question from the Committee Convener, the Minister said—

“I would take issue if I may, convener, with the suggestion that we have the poorest standards. On the contrary, we have in many ways led many other jurisdictions to follow our example.”75

76. Furthermore, in relation to the Scottish Government’s recent announcement to set a 30% target for the reduction in emissions for both new housing and non-domestic buildings, he said that—

“At the moment, we are probably only marginally behind Finland, and our minimum standards for insulation are substantially better than those in Denmark, for example. Far from our standards being poor, by setting the target of 30 per cent on top of what we have already done, we are setting standards that are higher than anywhere else in the British Isles and in the majority of jurisdictions in Europe.”76

77. However, in its evidence to the lead committee for the Bill, the Energy Saving Trust stated that, “In the context of improving the energy efficiency of Scotland’s housing stock we therefore believe the Bill could and should go further” and that “it would seem sensible to include some provision within the Bill to make it easier for the Scottish Government to regulate energy performance improvements in the housing stock in the future.”77

78. This desire for additional action to be taken to improve the energy efficiency levels in existing domestic buildings was a prominent feature of much of the evidence that the Committee has received during its ongoing energy inquiry, especially when considering this issue of the current levels of fuel poverty in Scotland. For example, in the Royal Society of Edinburgh’s recent energy report, which it submitted to the Committee as part of this inquiry, it states—

“…we note that Scandinavian and German buildings are considerably more energy efficient than those in Scotland. Raising building standards in Scotland to the level in those countries could save approximately 20% of domestic energy consumption.”78

Section 51 – Renewable Heat

79. Some of the more general issues relating to the further development of renewable heat technologies, such as the possible use of financial incentives, have been addressed elsewhere in this report.

80. However, one of the main points raised during the Committee’s deliberations on this particular section of the Bill was whether there should be an ‘obligation’ placed on Ministers to produce a renewable heat action plan and details on what a plan should contain.

81. Section 51(1) of the Bill, as currently drafted, states that Ministers must take such steps as they consider appropriate in relation to the promotion of renewable heat. This has been described by some members of the Committee as “a bit woolly.”79 In response, a Scottish Government official said that—

“At stage 2, we intend—subject to ministerial approval—to turn that into an obligation to produce an action plan and update it regularly. We need to do that to create a policy focus and keep the issue within that focus.”80

82. However, when the Minister gave oral evidence, he stated only that—

“The process is slightly more complex than the minister simply issuing a fiat on the subject. The consultations on what we will introduce at stage 2 are in progress. I can assure the member that that is one of the issues that are being considered.”81

83. On this point, one of Scotland’s leading developers of renewable heat systems, Fergus Tickell, told the Committee that—

“…the bill probably needs to be strengthened in respect of ministers' obligation not just to promote but to deliver. That suggests that those of us who work at a practical level to deliver renewable heat and other forms of renewable energy projects have to be given the tools to do that.”82

84. As can be seen above, although no such indication was given by the Minister when he appeared before the Committee on 4 March to give oral evidence, he has now provided further written evidence on the issue of whether there will be an ‘obligation’ on Ministers to produce an action plan on renewable heat. He said in his letter to the Committee that—

“It is proposed to amend the provision to introduce a commitment to produce an Action Plan and to update it regularly.”83

conclusions and recommendations

Background

85. Although not formally a secondary committee for the consideration of the Climate Change (Scotland) Bill, this Committee welcomes the opportunity to have taken evidence on the relevant sections of the Bill covering energy efficiency and renewable heat. The Committee is grateful to the lead committee – the Transport, Infrastructure and Climate Change Committee – for its understanding in this respect. The Committee places on record its desire for such collaborations between parliamentary committees to continue at stage 2 of the legislative process, given the highly cross-cutting nature of the Bill.

86. The Committee welcomes all the evidence received during its consideration of the Bill and is grateful to all the organisations that assisted us during our deliberations.

An ‘enabling’ bill, consultations and the legislative timetable

87. The Committee recognises that the Scottish Ministers always intended the Climate Change (Scotland) Bill to be a framework, which provides for a range of powers for the Scottish Government to take forward initiatives, such as an energy efficiency action plan and the promotion of renewable heat technologies, at a later date.

88. The Committee accepts that this approach will mean that there is always a balance to be struck between what is on the face of the Bill and what follows through secondary legislation if the Bill completes its legislative passage.

89. Furthermore, the Committee accepts that is not unusual for the Scottish Government to continue to consult on certain provisions during the course of the consideration of a bill, particularly during this first stage.

90. However, it is clear to the Committee that in relation to the provisions on energy efficiency (section 48), the energy performance in non-domestic buildings (section 50) and the promotion of renewable heat (section 51), an excessive amount of the policy detail remains unclear or is still subject to consultation either in Scotland or by the UK Government.

91. The Committee was disappointed at the lack of detail provided by the Scottish Government’s officials when they appeared to give evidence at the Committee. It was because of this, that the Committee felt it necessary to take additional, unscheduled evidence from the Minister in charge of the Bill. However, even after this, the Committee is still not in a position to have secured a detailed understanding of the policies and plans underpinning the relevant sections of the Bill.

92. This lack of clarity on the direction of policy makes it difficult for the Committee to fulfil its responsibility to scrutinise the policy and financial memoranda and to judge whether the measures in the Bill are adequate to meet the overall objectives.

93. The Committee believes that this is regrettable as it prevents the type of detailed scrutiny that we would ordinarily like to have subjected the Bill to. The Committee recognises that the Minister for Transport, Infrastructure and Climate Change has indicated that he will endeavour to provide committees with further detail – such as drafts of the various action plans and secondary legislation – and will be sympathetic to a revision of the timetable should the Bill be passed at this first stage.

94. The Committee recommends that the Scottish Government as a whole accepts the commitment given by the Minister in charge of the Bill that parliamentary committees must be afforded a reasonable amount of time to adequately scrutinise the Bill and works with lead committee and any other committee involved at stage 2 to set a realistic timetable going forward for this important, cross-cutting Bill. (RECOMMENDATION 1)

95. Furthermore, the Committee recommends that the Scottish Government agree to provide a revised financial memorandum, including more detailed and clearer cost estimates, for the sections of the Bill we considered. (RECOMMENDATION 2)

96. The Committee found it almost impossible to scrutinise adequately the provisions in relation to the use of energy performance certificates in particular, given the wide range of possible options that may be followed and the associated cost estimates.

97. Finally, the Committee believes that whilst the Climate Change (Scotland) Bill can be considered as a framework bill, we have reservations on the extent of the enabling powers and whether this gives too much discretion to the Scottish Ministers and insufficient powers to Parliament. We recommend that all the relevant secondary legislation proposed under sections 48-51 is subject, if they are not already, to affirmative resolution and that the Committee has the opportunity to see drafts of the instruments before they are laid. (RECOMMEDATION 3)

Reserved versus devolved powers

98. The Committee accepts that the ‘promotion’ of energy efficiency, renewable heat and micro-generation technologies is an area where both the Scottish and the UK Parliaments have an interest and legislative competence. We also believe that, in many respects, these are also areas where there are shared goals between the administrations.

99. The Committee does not consider the issue of what is reserved and what is devolved to prevent the Scottish Government from delivering on existing commitments to improving energy efficiency in co-operation with the UK Government and other parties.

100. The Committee recommends that the Scottish Government – at both official and ministerial level – continue to discuss matters of common interest with the UK Government and to report progress to this Committee in

respect of the subject matter of sections 48-51 of this Bill. (RECOMMENDATION 4)

101. The Committee welcomes the Minister’s recent change of policy and his commitment to introduce amendments at stage 2 to amend section 48(2) of the Bill to replace the word “promote” with the word ‘improve' to change this provision to “improve” the energy efficiency of living accommodation. We recommend that the Minister takes all the necessary steps to ensure that efforts are made across the piece to improve and not just promote energy efficiency and the take-up of renewable heat and micro-generation technologies, and that the Minister brings forward amendments at stage 2 to maintain and extend the existing legislative provision in respect of living accommodation. (RECOMMENDATION 5)

Targets

102. The Committee notes that the Scottish Government has stated a general policy against the setting of targets. However, this Bill does propose statutory targets for 2050 and interim targets, which we support. However, in respect to the contributions of energy efficiency and renewable heat, no such targets have been set.

103. The Committee recommends that the Scottish Government clearly sets out how the monitoring and reporting procedures within this Bill will work and clarifies the roles of various bodies in this respect. (RECOMMENDATION 6)

104. Furthermore, the Committee recommends that the Scottish Government adds the setting of targets for its energy efficiency and renewable heat initiatives to the relevant sections of the Bill and brings forward the necessary amendments. (RECOMMENDATION 7)

Financial and fiscal incentives

105. The Committee notes the calls made by many of the witnesses giving evidence to the Committee to introduce some form of financial or fiscal incentive to encourage people and organisations to invest in energy efficiency, micro-generation or renewable heat technologies.

106. The Committee recommends that the Scottish Government investigates and reports back to the Committee, if possible before stage 2, on whether some form of rebate through local taxation systems to incentivise the take-up of energy efficiency, renewable heat and/or micro-generation technologies in the domestic and non-domestic sectors should be introduced, drawing on the experience and the success of such schemes in other parts of the UK. (RECOMMENDATION 8)

Skills gaps and employment creation

107. The Committee is supportive of the efforts to create employment opportunities through the various energy-related provisions in this Bill. However, the Committee is concerned at the evidence we have heard in relation to the potential skills gaps, including from the Minister himself. The Committee recommends that the Scottish Government makes all efforts to plan accordingly and ensure that the education and training sector in Scotland is well-prepared and can respond to the growth in employment opportunities by providing the right number of people with the right skills at the right time, and reports back to the Committee on this as soon as possible. (RECOMMENDATION 9)

Specific recommendations in relation to sections 48, 50 and 51 of the Bill

Section 48 – contribution to the 2010 targets

108. The Committee heard evidence that the production of an energy efficiency action plan has been underway since December 2004. The Committee also heard evidence that the time taken to pass the Bill, enact the various provisions and then consult and finally publish an action plan could impact markedly on the contribution that could be provided in meeting the 2010 emissions reductions targets by energy efficiency initiatives.

109. The Committee does not consider that it is necessary to consult further on its energy efficiency action plan and certainly not for a period of up to 12 months following the passing of the Bill. However, the Committee does welcome the statements made by the Minister that an outline plan will be published shortly. The Committee recommends that the Minister ensures that energy efficiency projects are in a position to play a full and meaningful part in meeting the statutory targets for 2010 and thereafter. The Committee sees no reason why the action plan has to await the passing of the Bill and wishes to see the Scottish Government publish a full draft of the action plan before stage 2 of the Bill. (RECOMMENDATION 10)

110. The Committee notes that the progress of the proposed Energy Efficiency and Micro-Generation (Scotland) Bill (a members bill) has been stalled due to the introduction of the Climate Change (Scotland) Bill and the indication from the Scottish Government that it intends to legislate in this area. The Committee also notes the recent announcements by the Minister providing for general permitted development rights to some micro-generation technologies but not, at this stage, to micro-wind or air-source heat pumps for use in urban areas.

111. The Committee notes that the Bill, as it stands, does not as yet take forward all of the main provisions that were to be part of the proposed Energy Efficiency and Micro-Generation (Scotland) Bill. The Committee recommends that the Minister sets out the Scottish Government’s intentions in this regard during the stage 1 debate. (RECOMMENDATION 11)

112. Furthermore, the Committee recommends that, subject to appropriate controls on noise etc., general permitted development rights are extended to micro-wind and air-source heat pumps for use in urban areas, as soon as possible. (RECOMMENDATION 12)

Section 48 - costs

113. The provisions in this section of the Bill put a duty in statute on the Scottish Ministers to produce a plan for promoting energy efficiency in Scotland. The action plan will provide details of the measures to improve energy efficiency and/or to promote micro-generation across all Scottish Government Directorates. This duty is part of current planned activity, is not expected to give rise to additional resources and will be met from within existing Scottish Government administration budgets.

114. The Committee understands why this particular form of words on costs is being made in the Financial Memorandum in that the ‘production’ of an energy efficiency action plan is not expected to be a costly exercise. However, we have serious reservations about the lack of detail at this stage on the costs of the measures that will be contained within the plan itself and we would question whether the overall climate change objectives can realistically be met without additional budgetary resources from within the Scottish Consolidated Fund. Whilst there may be an existing budget for publication of an energy efficiency action plan, the Committee believes that the successful passage of the Bill must result in the Government doing more than it is at present and we would be surprised if the initiatives in the action plan did not have cost implications.

115. The Committee has recommended above at paragraph 95 that a revised financial memorandum be produced and we would expect the costs identified above to be covered within this. (RECOMMENDATION 13)

Section 50recent announcements and extension of provisions to the domestic sector

116. The Committee notes that the Bill in section 50 currently applies only to the non-domestic sector. The Committee considers that there is no room for complacency in respect to energy efficiency performance and the standards within the Scottish building stock, commercial, industrial, the public sector and, critically, the domestic sector.

117. The Committee notes the recent announcements made by the Minister in response to the Sullivan Report to set a 30% target for the reduction in emissions for both new housing and non-domestic buildings. The Committee does not have sufficient evidence to make a judgement on this decision but we do want to see ambitious targets being set and we recommend that the Minister provides feedback on how the setting of a target of 30% is consistent with meeting the targets set within this Bill. (RECOMMENDATION 14)

118. Furthermore, despite our reservations on the ability to scrutinise the cost implications associated with the use of energy performance certificates, we welcome the provisions in this respect. However, we note the calls for similar enabling provisions to be introduced as part of this Bill to extend such ideas to the domestic sector and we recommend that the Scottish Ministers give consideration to this and outline their intentions during the stage 1 debate. (RECOMMENDATION 15)

Section 51 – an obligation to produce an action plan

119. As it is currently drafted, the Committee considers that the duties on the Scottish Ministers to take such steps as they consider appropriate to promote renewable heat are too vague. The Committee welcomes the additional written information provided by the Minister and his statement that he intends to amend the Bill at stage 2 to provide for a “commitment” to produce a heat plan. However, the Committee believes that this still does not go far enough and recommends that there should be an ‘obligation’ on the Scottish Minister to introduce, within a reasonable timeframe, an action plan to improve the take-up of renewable heat technologies in Scotland and to work with all the necessary parties to achieve progress in this area. Furthermore, we seek a clear timetable from the Minister for the introduction of the heat plan before stage 2 of the Bill. (RECOMMENDATION 16)

120. One area that we want to see progress being made is in relation to the use of combined heat and power (CHP), particularly in the industrial and commercial sectors and in urban areas for district heating. As part of our energy inquiry, we were impressed by the developments being taken forward by Diageo at Cameronbridge in Fife (a biomass-fired CHP plant) and by Aberdeen Heat and Power Ltd., tackling fuel poverty in municipal housing and public buildings. We want to see these initiatives replicated across Scotland and we will return to this issue, and that of capital support schemes, in more detail when we complete our energy inquiry in the coming months. At this stage, we recommend that the Scottish Government ensures that CHP systems, preferably using sustainable energy sources, are a part of its action plans for renewable heat and energy efficiency. (RECOMMENDATION 17)

Annexe A: EXTRACT FROM THE MINUTES

4th Meeting, 2009 (Session 3), Wednesday 4 February 2009

Present:

Ms Wendy Alexander Gavin Brown
Rob Gibson (Deputy Convener) Christopher Harvie
Marilyn Livingstone Lewis Macdonald
Iain Smith (Convener) Dave Thompson

Also present: Sarah Boyack and Nigel Don

Climate Change (Scotland) Bill: The Committee took evidence on Part 5, Chapter 3 of the Bill at Stage 1 from—

Colin Imrie, Deputy Director Energy Markets Division, Sue Kearns, Head of Renewable Strategy and Onshore Renewables, Jamie Hume, Deputy Director Renewable Energy, Gavin Peart, Assistant Head of Building Standards Division, Alec Millar, Principal Non-Domestic Energy, Building Standards Division, Philip Wright, Deputy Director of the Climate Change Division, and Cameron Maxwell, Policy Adviser in Climate Change, Scottish Government;

And then from—

John Stocks, Manager for Scotland, The Carbon Trust;

Chas Booth, Senior Press and Parliamentary Officer, Association of the Conservation of Energy;

Fergus Tickell, Managing Director, Northern Energy Developments Ltd;

Elaine Waterson, Strategy Manager, Energy Saving Trust;

Elizabeth Leighton, Senior Policy Officer, WWF Scotland.

8th Meeting, 2009 (Session 3), Wednesday 4 March 2009

Present:

Ms Wendy Alexander Gavin Brown
Nigel Don (Committee Substitute) Rob Gibson (Deputy Convener)
Christopher Harvie Marilyn Livingstone
Lewis Macdonald Iain Smith (Convener)

Also present: Sarah Boyack

Climate Change (Scotland) Bill (in private): The Committee agreed its lines of questioning.

Climate Change (Scotland) Bill: The Committee took evidence on the Bill at Stage 1 from—

Stewart Stevenson MSP, Minister for Transport, Infrastructure and Climate Change, Philip Wright, Deputy Director of Climate Change, Gavin Peart, Assistant Head of Building Standards, Sue Kearns, Head of Renewables Energy Policy Team, and Sarah Hart, Energy, Efficiency Policy Analyst, Scottish Government.

9th Meeting, 2009 (Session 3), Wednesday 11 March 2009

Present:

Ms Wendy Alexander Gavin Brown
Rob Gibson (Deputy Convener) Christopher Harvie
Marilyn Livingstone Lewis Macdonald
Stuart McMillan Iain Smith (Convener)

Climate Change (Scotland) Bill (in private): The Committee considered an outline of a draft report to the Transport, Infrastructure and Climate Change Committee.

10th Meeting, 2009 (Session 3), Wednesday 18 March 2009

Present:

Ms Wendy Alexander Gavin Brown
Rob Gibson (Deputy Convener) Christopher Harvie
Lewis Macdonald Stuart McMillan
Iain Smith (Convener) David Whitton (Committee Substitute)

Climate Change (Scotland) Bill (in private): The Committee considered a draft report to the Transport, Infrastructure and Climate Change Committee.

Annexe B: oral evidence

ECONOMY, ENERGY AND TOURISM COMMITTEE OR 4 FEBRUARY 2009

ECONOMY, ENERGY AND TOURISM COMMITTEE OR 4 MARCH 2009

Annexe c: written evidence

WRITTEN EVIDENCE SUBMITTED TO THE LEAD COMMITTEE

In addition to the written evidence set out below, the lead committee for consideration of the Bill – the Transport, Infrastructure and Climate Change Committee – received a number of submissions of written evidence that are relevant to sections 48-51 of the Bill. These can be found at—

http://www.scottish.parliament.uk/s3/committees/ticc/inquiries/ClimateChangeScotlandBill-responsestocallforviews.htm

LETTER FROM COLIN IMRIE, SCOTTISH GOVERNMENT (DATED 9 FEBRUARY, 2009)

At the evidence session on 4 February 2009, I agreed to provide the Committee with clarification over a number of points which had been raised in relation to the energy efficiency and renewable heat provisions contained within the Climate Change (Scotland) Bill.

Q1: Mock regulations for the non-domestic building energy efficiency regulations

A mock up for regulations for Section 50: Energy Performance of non-domestic buildings will be provided for Stage 2 of the Bill.

Q2: Section 179 Housing Act

The Committee asked for clarity as to why it was necessary to remove this existing provision which is believed to be stronger that the general promotion duty contained within the Climate Change Bill. The aim of the energy efficiency provision is to promote energy efficiency across all sectors in Scotland, not only housing. This provision will cover policy and actions across all Scottish Government directorates. The reason for the choice that the Bill would “promote” rather than “improve” was due to initial concerns raised over the Government’s legislative competence to “improve” energy efficiency across all areas, as this may stray into the reservations set out in the Scotland Act.

It was never the intention that the repeal of section 179 of the Housing Act and its replacement by section 48 of the Climate Change Bill would remove the commitment to “improve” the energy efficiency of living accommodation. This can be discussed further prior to Stage 2, to ensure that the new provision continues to support the improvement of the energy efficiency of living accommodation.

Q3: Why have permitted development rights not been given for non-domestic buildings?

As announced in the parliament by Stewart Stevenson today, the relevant Amendment Order [the Town and Country Planning (General Permitted Development) (Domestic Microgeneration) (Scotland) Amendment Order 2009] was laid before the Scottish Parliament on Friday 6th February 2009. It will now be considered by the Subordinate Legislation Committee and the Local Government and Communities Committee.

Priority is being given to domestic buildings but the intention is to consider non-domestic buildings next. The variety of non-domestic building types, plus the large size of many non-domestic buildings and the consequent scale of microgeneration equipment,indicate that different issues may need to be considered compared to domestic buildings.

Q4: Scottish Planning Policy 6 / Merton Rule

The committee asked:

How is SPP6 being applied on the ground in Scotland?

The policy in SPP6 expectsmeasures to reduce carbon dioxide emissions to be incorporated into building design before theplanning application is submitted to the planning authority.Advice has been issued to help applicants do this (see Planning Advice Note 84 Reducing Carbon Emissions in New Development) but applicationsand decisionsare not monitored centrally.It is for planning authorities intheir determination of planning applications toapply the SPPpolicy, taking account of other material considerations.Some authoritiesapply their own policiesto reduce emissions,and these donot necessarily follow exactlythe wording used in the SPP.

Q6: Are there any plans to extend the requirements of SPP6? (e.g. to cover developments below 500 m2 or by increasing the 15% CO2 emissions reduction using Renewable Energy)

SPP6 already provides that planning authorities should use the process of preparing their development plans to consider whether local circumstances justify going beyond 15%, below the 500 sq metre threshold, and whether higher standards can be secured for particular developments. The policy target of 15% on-site renewables in SPP6 founds on the 2007 Building Standards and so a review will be necessary anyway when they are revised.

The Scottish Government is rationalising the current series of Scottish Planning Policies, including SPP6, into a single document. This is not a review of established national planning policy but will rationalise policy, expressing it in more concise terms, providing clarity and greater certainty of intended outcomes. This will require a different approach to expressing and explaining national planning policy but the policies will not be altered unless, for an individual topic, some adjustments are considered necessary.

The energy efficiency of all new buildings is addressed through the building standards system, which limits both carbon dioxide emissions and energy demand. Scottish standards are currently the most demanding in the UK. A further review of these standards is presently underway, investigating improvements recommended in The Sullivan Report – ‘A low Carbon Building Standards Strategy for Scotland’. Research to support the current review indicates that, in the majority of cases, low and zero carbon technologies (including microgeneration) will be essential to meet the next revision to the energy standards.

Q7: Renewable Heat

The issue of Council Tax rebates and other financial incentives for renewable heat was raised. Under current local government legislation, councils in Scotland do not have the same level of discretionary powers to offer council tax discounts as councils in England. To give Scottish councils similar powers would require primary legislation. The Scottish Government is fully committed to the abolition of the Council Tax and therefore this proposal does not sit with our policy intentions. Following the recent consultation exercise, we will outline shortly how we intend to take forward our plans to introduce a fairer local tax for Scotland.

We already offer financial incentives through the Scottish Community and Householder Renewables Initiative, the Scottish Rural Development Programme, the Energy Saving Scotland small business loans and the public sector Central Energy Efficiency Fund. Broad enabling powers are in place in the Energy Act to establish a Renewable Heat Incentive (RHI). The Department for Energy and Climate Change, in consultation with the Devolved Administrations is conducting further analysis on how effective different structures for the RHI might be in encouraging more renewable heat generation. This work will form the basis of a consultation to be launched later this year on the design and delivery of the scheme. It is important therefore that we understand the detail of how the incentive will work before considering whether additional regulatory or financial measures will be required in Scotland.

Colin Imrie, Deputy Director, Energy Markets Division, The Scottish Government

LETTER FROM STEWART STEVENSON MSP, MINISTER FOR TRANSPORT, INFRASTRUCTURE AND CLIMATE CHANGE (DATED

I refer to your letter requesting additional information as a follow up to my appearance before the Economy, Energy and Tourism Committee on 4 March 2009.

The questions and their responses are contained in Annex A. I have also taken the opportunity to provide additional information for the Committee on Stage 2 amendments for Chapter 3 of the Bill and this information is contained in
Annex B.

I do hope this information is helpful. I am also copying this letter to Patrick Harvie of the Transport, Infrastructure and Climate Change Committee.

Stewart Stevenson

Annex A
Climate Change (Scotland) Bill – Part 5 Chapter 3
Additional information for the Economy, Energy and Tourism Committee

Question reference Question Response
General
(1)
What do you consider to be reserved and what is considered to be devolved and where are the boundaries in terms of the policies you wish to pursue? Energy Efficiency – Sections 48 & 49

The Scotland Act 1998 devolves powers to the Scottish Ministers concerning “the encouragement of energy efficiency other than by prohibition or regulation”

Energy efficiency as it relates to energy markets is a reserved matter. This includes demand management/greenhouse gas mitigation measures such as the Carbon Emissions Reduction Target (CERT) and the Climate Change Levy and the proposed Community Energy Savings Programs.

These programs provide the primary support for households and businesses in the UK to undertake energy efficiency improvements. The Scottish Government’s approach is to maximise action from these schemes in Scotland by deploying its own funds to leverage greater action on the ground. The Scottish Government considers that this is the most cost effective way to make important progress in improving the energy efficiency of existing homes in relation to a reserved area.
Energy performance of non-domestic buildings – Section 50

The regulation of building standards and the assessment of the carbon and energy performance of buildings are devolved matters.
Renewable Heat – Section 51

There is no reference to heat in the Scotland Act 1998. It is considered a devolved area and therefore Ministers have the powers to promote renewable heat.

General
(2)
In relation to the above, will it be necessary to restrict the types of initiatives you wish to pursue as a result of certain matters being considered reserved and if so, what are these initiatives? Energy Efficiency – Sections 48 & 49

The Scottish Government considers that it is not necessary to restrict the types of initiatives it wishes to pursue as a result of certain matters being considered reserved. For example the Scottish Government is working to improve the energy performance of existing homes through working closely with energy supply companies to better deliver CERT measures in Scotland.

There are constraints on the CERT scheme which can limit its deployment in Scotland, for example the Scottish Government is constrained in relation to CERT as it cannot provide ‘top-up’ funds for those measures where CERT will not cover 100% of the direct costs. Nor can the Scottish Government directly change the CERT rules so as to address the specific factors that make CERT delivery in Scotland more challenging.

As mentioned previously, however, the approach the Scottish Government is taking in these instances is to work closely with the energy companies through the Energy Saving Scotland Advice Networks to systemically introduce closer working relationship with insulation installers to drive the uptake of CERT insulation measures. The Scottish Government has also made representations to the UK Government on the differing nature of the housing stock in Scotland compared to England and how this therefore impacts upon the uptake of CERT measure in Scotland. The Scottish Government is confident that this approach will help to ensure that Scotland gets its fair share of CERT activity.

Energy performance of non-domestic buildings – Section 50

Because it is considered that the regulation of building standards and the assessment of the carbon and energy performance of buildings are devolved matters, activity in these general areas is not considered to be restricted by the reservations in the Scotland Act 1998.
Renewable Heat – Section 51

The Renewable Heat Action Plan will cover measures where Ministers have devolved powers, including: awareness raising and consumer information; skills needs, and encouragement.

A regulatory incentive (i.e. an obligation on fuel suppliers) is being developed by the UKGovernment following the passage of the Energy Act 2008. That Act contains provisions which cover devolved matters. These were subject to a Legislative Consent Motion to enable Scotland to benefit.

General
(3)
What advice the Scottish Government has asked the UK Committee on Climate Change for in relation to the provisions contained in Chapter 3? The Scottish Government is currently working, through the Committee on Climate Change’s Sponsor Group (which includes the UK Government and Devolved Administrations) to agree the Committee’s corporate plan for 2009-12.

In the first instance, the Committee will advise the Scottish Government on the levels it recommends for annual emissions targets. Its views will also inform the methodology adopted to specify a “Scottish share” of emissions from international aviation and international shipping.

The Scottish Government is currently considering the information contained in the Committee on Climate Change’s December 2008 report as it relates to Scotland. We have not, to date, requested any specific advice in relation to the provisions contained in Chapter 3 of the Bill. These areas are being considered as part of the Strategic Overview which is described in the response to question (5).


General
(4)
Given that the Cabinet Secretary for Finance and Sustainable Growth has pledged to generate 16,000 ‘green jobs’, can you specify how this figure was arrived at and provide a breakdown by different types of technology (e.g. wind, wave, insulation installation etc) and the types of jobs that will be created and, therefore, the types of skills needed? Can you also specify the timeframe for meeting the pledge of 16,000 jobs?


The estimate of 16,000 new green jobs in Scotland by 2020 is based on the UK Renewable Energy Strategy consultation document, which cited a figure of 160,000 new renewable energy-related jobs in the UK by 2020. The estimate assumes that Scotland achieves a 10% share of jobs created across the UK.

We consider, however, that the Scottish Government’s renewables targets, combined with Scotland’s natural resource, energy infrastructure and skills mean that we can go higher than this estimate. The UK estimate is based on an analysis of the potential expansion in centralised renewable electricity generation, renewable microgeneration and domestic biofuel feedstock and refinery activities necessary to meet the EU renewable energy transport targets.
General
(5)
Can the Minister outline what are the expected contributions from energy efficiency, non-domestic buildings and renewable heat in terms of meeting the various targets set out in the bill? Through the Strategic Overview project, the Scottish Government is working to build up a picture of how and when emission reductions might take place over the next 40 years, setting out in broad terms the key sectors for abatement in the short, medium and long term identifying where the major carbon savings could be made, highlighting the key milestones and actions in delivering the these savings and the barriers to implementation. A discussion document covering these issues is planned for publication in the summer of 2009.
Section 48
Question
(1)
Apart from living accommodation, which other policies and actions will be covered by the requirement to promote energy efficiency? Will it be necessary to restrict the policy areas covered by the action plan in order not to stray into reserved matters?
It is envisaged that the Energy Efficiency Action Plan will include Government policies and actions to promote energy efficiency across all sectors. Whether or not it will be necessary to restrict the policy areas covered by the action plan will depend on the exact nature of the policy or action. Further information on the Energy Efficiency Action Plan will be detailed in the forthcoming outline.


Section 48
Question
(2)
What is the expected added value of the consultation on energy efficiency before the preparation of the plan for the promotion of energy efficiency is published? A series of energy efficiency measures are already being delivered by the Scottish Government, while others are being developed. The Energy Efficiency Action Plan will bring all these measures together. Consultation is important to ensure that these measures can be considered comprehensively, so that activity can be added in areas in which there are gaps. In addition, consultation will ensure that the final version of the action plan has been subject to critical appraisal from stakeholders.
Section 48
Question
(3)
Whether, in light of the recent decision of the Public Audit Committee to refer Audit Scotland’s report on energy efficiency to this Committee, the Minister thinks there is sufficient leadership shown at the highest levels for energy efficiency in the public sector? The Scottish Government considers that there is sufficient leadership shown at the higher levels of the public sector. The Scottish Government’s Leading by Example High Level Groups, and its forthcoming Energy Efficiency Project Board, will raise the profile of energy efficiency in the public sector and enable senior level buy-in.

The Scottish Government has provided funds through the Central Energy Efficiency Fund to enable action to happen on the ground. CEEF has provided local authorities, NHS Boards and Scottish Water with £20 million in interest-free loans for capital investment in energy efficiency measures. A further £4 million has been provided to the further and higher education sectors for similar energy efficiency support.
Section 48
Question
(4)
Does the Minister believe there are any conflicts between the regulations and legislation covering social housing and his plans for energy efficiency investments as part of the action plan, such as an emphasis on budgets and resources within investment packages for social housing that are not related to energy efficiency improvements? The Scottish Government does not believe that there are any conflicts between the regulations and legislation covering social housing and our plans for energy efficiency investments as part of the Energy Efficiency Action Plan.

Section 50
Question
(1)
Whether the Minister has any views on the omission of the domestic sector from the Bill and whether enabling provisions should be introduced to tackle energy efficiency in the domestic sector as well as in non-domestic buildings? The Climate Change (Scotland) Bill will introduce an important new duty on Scottish Ministers to prepare and publish a plan for the promotion of energy efficiency across all sectors in Scotland. The Plan will highlight the range of Scottish Government policies and programmes that will continue to deliver significant improvements in the energy efficiency of the domestic sector within the existing legal framework. This will include recent announcements on funding for a major area-based home insulation scheme and a commitment to bring forward proposals for a significant loan scheme. New legislation to bring forward these measures is not required.

The Climate Change (Scotland) Bill seeks to introduce a legal framework for the introduction of energy assessments for existing non-domestic buildings. However, the industrial, business and public sectors are used to working within a range of obligations that protect their employees and wider society (e.g., in respect of health and safety, accessibility, fire safety, etc) that do not apply to the domestic sector.

There are currently no plans to introduce requirements for further periodic energy assessments forthe domestic sector other than the requirements for Energy Performance Certificates at sale or rent that have just been implemented. As outlined above, this is because we believe that we can continue to make progress in improving domestic energy efficiency within existing legislation.

The introduction of regulatory requirements for the energy efficiency of housing would, in any case, be likely to drive out CERT investment. This would be contrary to current policy which is to seek to maximise CERT activity in Scotland and means that many Scottish householders would be denied access to this support.

Section 50
Question
(2)

In light of the Scottish Government’s announcement on building standards on 27 February, whether the Minister has any intention to introduce tougher, statutory building regulations in non-domestic sector, e.g. (i) introducing tougher mandatory building standards for new-builds mandating low- or zero-carbon rating within a decade, or (ii) legislating for energy efficiency in both social housing (introducing a Social Housing Quality Standard) and also in the private rental sector (requiring investments in energy efficiency to be made by landlords at the point of sale etc)?

(i) We have the ambition of low-carbon and eventually zero-carbon buildings. After this current review of energy standards in Scottish building regulations there will be at least a further two reviews. These will both occur within the ten years that follow and significant progress will be made in respect of our ambition.

(ii) Social housing already has the best energy efficiency standards of any housing sector with two thirds of homes receiving a “good” rating on the National Home Energy Rating scale. A Scottish Housing Quality Standard (SHQS), similar in nature to the Decent Homes standard in England, was introduced in February 2004, though the energy efficiency requirements are more stringent to compensate for more extreme weather in Scotland. Whilst this is not a legislative requirement, social landlords are expected to meet the SHQS by 2015 which will help to further drive up energy efficiency standards in this sector.

While energy efficiency standards are generally lower in the private rented sector than in the social sector, a number of factors should assist in improving standards within existing legislation and these are set out below.

  • An EPC showing the energy efficiency of the property must now be provided to prospective tenants before a house is let. EPCs should raise awareness of energy efficiency among tenants as well as giving them more information, and landlords should be encouraged by this to upgrade their properties to make them more marketable
    .
  • Landlords and agents accredited by Landlord Accreditation Scotland (LAS) are required to meet the Scottish Core Standards for Accredited Landlords, one of which relates to energy efficiency, insulation and heating.

  • We are also working with private landlords and their representative bodies to promote greater awareness of new and existing incentives to improve the energy efficiency of the homes they rent out.

  • These incentives include :
    • Tax relief available under the Landlord Energy Saving Allowance.
    • Provision of loans under the Energy Saving Scotland – Small Business loans scheme.
    • Opportunities under the Carbon Emission Reduction Target scheme.

Section 51
Question
(1)

What steps the Scottish Ministers plan to take to promote the use of heat produced from renewable sources? What forms of renewable heat will be promoted and for what uses (domestic, commercial etc.)?

The measures will include: awareness raising and consumer information; addressing skills needs particularly for installation; highlighting building regulations; and the encouragement of heat mapping at a local authority level.

All forms of renewable heat technologies will be promoted, inducing: biomass combustion, heat pumps (air, ground and water source), solar thermal, wind to heat, anaerobic digestion, and geothermal. All scales will be promoted from individual households, level to large scale industrial.

Section 51
Question
(2)

How the Scottish Ministers intend to ensure the delivery of the use of heat from renewable sources, especially in the context of the challenges posed by different types of building?

The introduction of the renewable heat incentive (RHI) at a UK level will play a key role in helping to stimulate the sector in the important period of early growth. The measures taken at a Scottish level will complement the RHI. Therefore activity at the Scottish and UK level should ensure we can meet our target of 11% heat demand from renewable sources by 2020.

Section 51
Question (3)
What support will there be for promoting the use of renewable heat? Whether the Scottish Government have any intentions to increase the support available through the Community and Householder Renewables Initiative and the Scottish Biomass Support Scheme?
Financial support for installation of renewable heat technologies and feasibility studies is available from a number of grant programmes, including: Scottish Community and Householder Renewable Initiative, Scottish Biomass Heat Schemes; Scottish Rural Development Programme, and Climate Challenge Fund. In addition the Renewables Obligations support biomass CHP plants.

The Scottish Government tripled funding on microgeneration and community renewables. We also announced funding of £2 million for the biomass heat scheme.
Scottish Consultations Energy Efficiency Future action plan consultation planned.
Energy performance of non

Action on Climate Change: Proposals for improving the energy performance of existing non-domestic buildings: ·

  • Consultation ran from 2 September to 25 November 2008
  • Consultation responses published on 22January 2009
  • Analysis of Consultation Responses Report published on 9 February 2009
  • Scottish Government Response published on 10 March 2009
Renewable Heat

Making Scotland a Leader in Green energy – draft framework for the development and deployment of renewables in Scotland. This consultation contained a section on renewable heat, including a draft Action Plan. ·

  • Consultation ran from 8 October 2008 – to 1 December 2008
  • Consultation responses published on 30January 2009.

The responses will inform the Scottish Government’s Renewable Energy Action Plan due to be published later this year.

UK Consultations Energy Efficiency

The UK Government is currently undertaking consultations on the following in relation to energy efficiency:

  • Heat and Energy Saving strategy Consultation (concludes: 8 May 2009)
  • Community Energy Saving Programme (CESP) (concludes: 8 May 2009)
  • Carbon Emissions Reduction Target (CERT) (concludes 14 April 2009)
Renewable Heat For information on UK Government consultations on renewable heat, please refer to the detailed list of consultations contained on the DECC website at: http://www.decc.gov.uk/en/content/cms/consultations/consultations.aspx

Annex B
Climate Change (Scotland) Bill
Intended Stage 2 Actions – Part 5 Chapter 3

A number of amendments are planned for Part 5 Chapter 3 of the Bill.

Energy Efficiency
  • It is proposed to seek to amend section 48(2) to replace the word “promote” with the word ‘improve’ to change this provision to “improve” the energy efficiency of living accommodation.

  • For information the action plan will aim to promote energy efficiency, having particular regard to improving the energy efficiency of housing.

Energy Efficiency of Non-Domestic Buildings
  • Following the conclusion and analysis of the consultation on the proposals for improving the energy performance of non-domestic buildings, Stage 2 amendments are proposed to require, through secondary legislation, mandatory implementation of cost-effective improvements to existing non-domestic buildings. This SSI will be subject to affirmative resolution.

  • It is not intended that this provision would be utilised immediately and as announced in the response to the consultation, a voluntary approach will be adopted initially to the implementation of cost-effective improvements to existing non-domestic buildings. This regulation making power is intended for future use if a voluntary approach is considered inadequate for delivering emission savings.

  • Draft regulations for this will be provided for the Transport, Infrastructure and Climate Change Committee to consider before Stage 2 of the Bill process begins. These draft regulations will also be shared with the Economy, Energy and Tourism Committee.

Renewable Heat
  • It is proposed to amend the provision to introduce a commitment to produce an Action Plan and to update it regularly.


Footnotes:

1 Climate Change (Scotland) Bill, SP Bill 17, Session 3 (2008)

2 Climate Change (Scotland) Bill, Policy Memorandum, SP Bill 17-PM, Session 3 (2008), p1.

3 Climate Change (Scotland) Bill, Policy Memorandum, SP Bill 17-PM, Session 3 (2008), p1.

4 Climate Change (Scotland) Bill, Policy Memorandum, SP Bill 17-PM, Session 3 (2008), p18-19.

5 Climate Change (Scotland) Bill, Explanatory Notes, SP Bill 17-EN, Session 3 (2008), p14.

6 Climate Change (Scotland) Bill, Policy Memorandum, SP Bill 17-PM, Session 3 (2008), p19-23.

7 Climate Change (Scotland) Bill, Policy Memorandum, SP Bill 17-PM, Session 3 (2008), p23ff.

8 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1756.

9 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1576.

10 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1577.

11 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1536.

12 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1741ff.

13 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1742.

14 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1743.

15 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1542.

16 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1741.

17 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1576.

18 Climate Change (Scotland) Bill, SP Bill 17, Session 3 (2008)

19 Climate Change (Scotland) Bill, SP Bill 17, Session 3 (2008)

20 Climate Change (Scotland) Bill, Policy Memorandum, SP Bill 17-PM, Session 3 (2008), p19.

21 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1745.

22 Housing (Scotland) Act 2006, asp 1, available from: http://www.opsi.gov.uk/legislation/scotland/acts2006/asp_20060001_en_1

23 Climate Change (Scotland) Bill, Policy Memorandum, SP Bill 17-PM, Session 3 (2008), p18.

24 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1746.

25 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1570.

26 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1561.

27 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1539.

28 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1738.

29 Scottish Government. Supplementary written evidence. Letter of 12th March, 2009. See the annexe to this report.

30 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1561.

31 Friends of the Earth Scotland. Written submission of evidence to the Transport, Infrastructure and Climate Change Committee.

32 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1738.

33 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1571.

34 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1571.

35 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1571.

36 Scottish and Southern Energy. Written submission of evidence to the Transport, Infrastructure and Climate Change Committee.

37 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1759.

38 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1759.

39 Scottish Government News Release, Green Jobs Blueprint, 2 February 2009

40 Scottish Government. Supplementary written evidence. Letter of 12th March, 2009. See the annexe to this report.

41 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1545.

42 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1567.

43 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1566.

44 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1749.

45 Audit Scotland, Improving Energy Efficiency, December 2008.

46 Scottish Government. Supplementary written evidence. Letter of 12th March, 2009. See the annexe to this report.

47 Finance Committee, Report on the Financial Memorandum of the Climate Change (Scotland) Bill, 4 March 2009, paragraph 75.

48 Finance Committee, Report on the Financial Memorandum of the Climate Change (Scotland) Bill, 4 March 2009, paragraph 75.

49 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1743.

50 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1763.

51 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1763.

52 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1555.

53 Scottish Government News Release, Domestic Microgeneration, 9 February, 2009

54 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1566.

55 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1567.

56 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1568.

57 Scottish Renewables. Written submission of evidence to the Transport, Infrastructure and Climate Change Committee.

58 Scottish and Southern Energy. Written submission of evidence to the Transport, Infrastructure and Climate Change Committee.

59 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1748.

60 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1748.

61 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1564.

62 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1564ff.

63 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1755.

64 Scottish Government. Supplementary written evidence. Letter of 12th March, 2009. See the annexe to this report.

65 Scottish Government. Supplementary written evidence. Letter of 12th March, 2009. See the annexe to this report.

66 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1755.

67 Climate Change (Scotland) Bill, Explanatory Notes, SP Bill 17-EN, Session 3 (2008), p37-39.

68 Climate Change (Scotland) Bill, Explanatory Notes, SP Bill 17-EN, Session 3 (2008), p37-39.

69 Climate Change (Scotland) Bill, Explanatory Notes, SP Bill 17-EN, Session 3 (2008), p37-39.

70 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1756.

71 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1561.

72 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1562.

73 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1564.

74 Scottish Government. Supplementary written evidence. Letter of 12th March, 2009. See the annexe to this report.

75 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1751.

76 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1752.

77 Energy Saving Trust. Written submission to the Transport, Infrastructure and Climate Change Committee.

78 Royal Society of Edinburgh. Inquiry into Energy Issues for Scotland, Summary Report, June 2006

79 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1540, and Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1760.

80 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1541.

81 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 8th Meeting, 4 March, 2009, Col 1761.

82 Scottish Parliament Economy, Energy and Tourism Committee, Official Report, 4th Meeting, 4 February, 2009, Col 1560.

83Scottish Government. Supplementary written evidence. Letter of 12th March, 2009. See the annexe to this report.