Agenda item

Members gave consideration to a report which sought to inform Members of a high-level bid that was to be submitted, seeking funding from Round 3b of the Public Sector Decarbonisation Scheme (PSDS).  The report condensed the facts of the current PSDS bid application process, outlined the rationale and reasoning for pursuing the Bid and detailed the next steps.

The Authority had previously benefitted from the Public Sector Decarbonisation Scheme (PSDS), which funded low carbon heating projects in public sector buildings, with WLDC having received £68k in 2021 to fund solar PV and battery storage at the new depot.

In presenting the report, Members were advised Phase 3b of the Scheme had recently been announced and applications were invited from 1 October.

Having worked with Midlands Net Zero Hub to examine various options, a project had been identified which would meet the criteria of the Scheme, namely to upgrade the current gas-powered boilers at the Guildhall with new air source heat pumps and the installation of additional Solar PV to generate electrical power and help reduce running costs.  Allowing for suitable contingencies, the work had been estimated to cost within the region of £330k.

Officers highlighted to Members how the current round of PSDS differed from previous rounds, in that it required an element of match-funding from the Council. The criteria as to how the match-funding element was calculated was further explained within the report, but for this bid, Members noted the match- funding amount required was equal to the cost of replacing the current boiler with a ‘like for like’ system.

This work was currently estimated at £60k within the approved Medium Term Financial Plan for 2024/25 and Members were being requested to approve that this money be re-profiled and brought forward to 2022/23 support the Bid.

Current boilers at the Guildhall were coming towards the end of their recommended life and a ‘like for like’ fossil fuel replacement, as was currently scheduled for 2024/25, would not be in line with WLDC’s Net Zero carbonisation ambitions.  The climate risks and opportunities section of the report further highlighted the environmental benefits.  

Officers stressed to the Committee the imperativeness of being ready with a Bid as soon as the application portal opened, as the monies would be awarded, subject to bids meeting the criteria, on a first come first served basis and was expected to be well over-subscribed.  

Whilst the initial bid contained comprehensive technical detail, only a high-level bid was required at this stage, with a detailed investment grade proposal having to be worked up and formally assessed prior to the award of any grant funding (estimated to be in or around January 2023).

Members were offered reassurance that the whilst the Scheme required evidence of a commitment to match-fund from the Council, it did not require the Council to enter into an agreement to accept grant funding, even if the Bid was successful. 

A final decision to accept the grant funding would be brought back to the Committee in due course, and would include a more detailed assessment of the technical capabilities of the system.

Discussion ensued and Members indicated their support for the proposals, particularly given their alignment to the Council’s commitment to Net Zero carbonisation ambitions.  Members considered it important to have such proposals “shelf-ready”, given the often limited notification and over-subscription to such Schemes.

It was suggested the Council had a responsibility to look at all of its buildings across the whole of the District. Whilst acknowledging the two sites identified were likely the most important buildings to be considered first, it was suggested that the Council did own others which may fit criteria for future Bids.  As such, an amendment to recommendation four was proposed, namely : -

“That Members acknowledge that Officers will continue to explore other funding sources to invest in schemes to improve the energy efficiency measures for all properties owned by West Lindsey District Council particularly those which would benefit most from decarbonisation like for example the Gainsborough Leisure Centre and the Trinity Arts Centre.”

The amendment was duly seconded and on being put to the vote the amendment was CARRIED.

During further discussion, given the importance of climate change to both organisations and individuals and the new technologies available, it was suggested, if feasible and the system was installed, the Guildhall could be used as an exemplar of what others could potentially achieve.

Having been moved and seconded, with amended recommendation four included, it was

RESOLVED that: -

(a)    the content of the report be noted and the submission of a high-level bid for PSDS3b funding for decarbonisation of the Guildhall heating system be supported;

(b)    the reprofiling of the Capital Programme to bring forward the replacement boiler funding from 2024/25 to 2022/23 to provide the match-funding required should the Bid be successful, be approved;

(c)    Officers be supported in continuing to work with Midland Net Zero hub to develop a detailed business case, for consideration and final decision by this Committee, should the grant application be successful, noting notification was expected by the end of January 2023; and

(d)    Members acknowledged that Officers would continue to explore other funding sources to invest in schemes to improve the energy efficiency measures for all properties owned by West Lindsey District Council, particularly those which would benefit most from decarbonisation, like, for example the Gainsborough Leisure Centre and the Trinity Arts Centre.