Purpose

Proposed
decision
 
Adopt the Energy Efficiency
Plan for KCC’s estate and operations to support our
environmental goals (and replace the existing Net Zero 2030
Plan).
 
Reason for the decision
 

-     
KCC’s Net Zero 2030 target is unattainable and
is not deemed to represent best value for money for Kent
residents.
 
Background – Provide brief additional context
 

-     
Efforts to reduce KCC’s emissions have
afforded the Council numerous financial benefits over the last five
years, including:

o   
Generated close to £9million in savings from
fuel and utility bills.

o   
Attracted more than £24million of external
funding to improve the efficiency of our estate.

o   
Generated more than £2million revenue from our
two solar farms.

-     
Projects are becoming incrementally more challenging
to deliver, especially in the context of reductions in government
funding support.
-     
Subsequently, KCC’s Net Zero 2030 Plan and
target is unattainable and presents the Council with financial and
operational risks.

-     
A new plan and approach are required that enables a
flexible, pragmatic and value for money approach to be taken to
energy efficiency measures across the estate and
operations.
 
Options Considered

 
Option
1 - Retain KCC’s Existing Net Zero 2030 Plan and
target. The 2030 target for
KCC’s estate and operations is unattainable and presents the
Council with financial and operational risk. Meeting the 2030 target would
require considerable investment over the next five years that is
not fully supported by return on investment or best value for money
requirements and additionally would commit the Council to paying
for ‘carbon offsetting’ on an indefinite
basis. 
 
Option 2 -
Rescind KCC’s 2030 Net Zero Plan and
target. Rescinding
the organisational Net Zero Plan would mean forfeiting a wide range
of financial, health, and environmental benefits for both the
Council and the people of Kent. It also introduces risk by limiting
opportunities to explore efficiencies, reduce costs, apply for
funding, and improve resilience across KCC’s estate and
operations.
 
Option 3 -
proposal - Replace KCC’s Net Zero
2030 Plan and targets by adopting the proposed Energy Efficiency
Plan. In addition
to the above (Option 2), the proposed energy efficiency plan offers
a balanced approach allowing KCC to continue to modernise assets,
explore financial opportunities and efficiencies alongside reducing
its emissions and providing additional health and environmental
benefits to the people of Kent.
 
How
the proposed decision supports the KCC Strategic
Statement
This proposal is
aligned with the direction of the emerging 'Reforming Kent'
agenda

-     
to develop an energy efficiency plan which focuses
on financial returns and investigates opportunities to create
additional revenue streams alongside supporting wider environmental
benefits.

-     
Creating meaningful value for the Council and Kent
residents by using time, money and resources wisely

-     
Delivering savings through ‘Best Value’
opportunities
 

Financial Implications

 
Any requests for funding to
deliver actions in the energy efficiency plan will be considered
alongside robust business cases.
 
The
proposed approach organises projects into different phases to
enable ‘project by project’ development and decision.
This approach will allow more accurate ‘project by
project’ costs to be developed and deployed at the right time
and provide flexibility in delivery.
 
Calculating overall cost at the outset is complicated due to
changes in market conditions, what new technology may be needed and
its availability and affordability and whether projects can be part
funded through government grants.
 
Currently there are no financial penalties or levies for
non-compliance with Net Zero 2030 and 2050 targets but that could
change in the future.
 
Individual decisions arising from the plan will be subject to
their own governance processes and future Key Decisions
 

Decision

As Cabinet Member for (the Kent) Environment,
I agree to:  
 
(i)       ADOPT the Energy
Efficiency Plan for KCC’s estate and operations to support
our environmental goals (and replace the existing Net Zero 2030
Plan)
 
(ii)       DELEGATE authority
to the Corporate Director of Growth, Environment and Transport in
consultation with the Cabinet Member for (the Kent) Environment to
refresh and/or make revisions to the
Plan as appropriate during the lifetime of the plan