Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 12, 2025

Purpose:

Content: 8.1 Since the Clean Air Zone became operational in March 2023, monitoring has shown that the majority of the vehicle fleet in Sheffield has continued to upgrade to cleaner newer vehicles. This has contributed significantly to the pronounced improvement in Air Quality observed across the city in 2024.   Working closely with Defra, DfT and the Joint Air Quality Unit (JAQU), we have secured approval to use Clean Air Funding towards a local Zero Emission Bus (ZEB) scheme which, along with a £2.6m contribution from our Clean Air Investment Fund, will create a c.£11.5m fund to accelerate the transition to electric buses in Sheffield.     8.2 RESOLVED UNANIMOUSLY:- That the Transport, Regeneration and Climate Policy Committee:-   (a)  notes the progress made towards achieving legal annual average NO2 limits and the further challenges associated with the accelerating reduction at the remaining exceedance locations;   (b)  agrees to the Zero Emission Bus (ZEB) grant assistance proposals including the commitment to allocate £2.6m from the Clean Air Investment Fund, and that the final scheme will be agreed by the Director of Investment, Climate Change and Planning;   (c)   agrees the proposed approach to, and the associated communication of, the cessation of the grant schemes for LGV, HGV and taxi vehicle types;   (d)  agrees that the Council continues to work proactively with HM Government and the South Yorkshire Mayoral Combined Authority to progress the local transition to zero emission bus as quickly as possible to further protect the public form the harmful impacts of roadside NO2. Pursuant to this being agreed, officers will negotiate the terms of a Zero Emission Bus (ZEB) grant scheme; and   (e)  delegates the decision whether to agree the final terms of the ZEB grant scheme to the Director of Investment, Climate Change and Planning in consultation with Transport, Regeneration and Climate Policy Committee lead members.     8.3 Reasons for Decision     8.3.1 Our modelled CAP scheme approved by HM Government assumed all buses in Sheffield and those on key routes in Rotherham would be a minimum of Euro VI standard equivalent to achieve nitrogen dioxide legal limits in the shortest possible time in line with our Ministerial Direction.     8.3.2 However, bus upgrade has not been able to progress as planned and annual average air quality data for 2023 showed that some locations remain above legal limits at some locations where bus emissions are a significant contributing factor.     8.3.3 Therefore, further action is required to accelerate the reduction of bus emissions. The proposed re-allocation of funds will initiate a transition to zero emission buses in the city.     8.3.4 As set in the December 2023 and February 2024 TRC committee reports, a cautionary approach will be taken to investment of CAZ surplus income to ensure sufficient funds are retained to cover life-cycle operation costs and any changes required to achieve legal annual average nitrogen dioxide limits across the city. Therefore, commitments ‘at risk’ against funds not yet received will not be made.     8.3.5 However, it is important that there is continued investment in activities that will accelerate achieving reduce annual average nitrogen dioxide limits in line with our Ministerial direction.     8.4 Alternatives Considered and Rejected     8.4.1 Alternative Option 1: No change to our existing Financial Assistance Schemes (FAS) to support Zero Emission Buses. The applications to the existing FAS would continue to be at a significantly reduced level with the consequent risk that Government may seek the return of unused funds. The demand for the existing FAS would not support the required NO2 reductions at existing locations of exceedance in Sheffield.     8.4.2 Alternative Option 2: Continue to make the case to Government for additional funding for Zero Emission Buses. We are continuing to make the case for additional funding over and above our current funding. This includes highlighting why cities like Sheffield, Birmingham and Bradford, who have taken decisive action to address air quality (but in light of the outcome of the DfT bus retrofit review), require further investment in ZEB. However, the reallocation of existing funding to a local ZEB scheme could support the accelerated transition to EV buses in Sheffield and realise the consequent air quality benefits sooner. This is the preferred option.