Download Consultations - Lancashire County Council

Lancashire Local - Burnley
Meeting to be held on the 27th April, 2009
Part I - Item No. 8
Electoral Divisions affected:
All
Lancashire Locals Climate Change Fund – First Year Review
(Appendices ‘A’, ‘B’, 'C' and 'D' refer)
Contact for further information:
Clare Phillips 01772 534195, Lancashire County Council, Environment Directorate,
[email protected]
Executive Summary
The Lancashire Locals Climate Change Fund (LLCCF) supports community projects
on climate change. It is part of a package of measures within the County Council’s
climate change programme.
This report reviews the operation of the LLCCF up to December, 2008, (just under
12 months of operation of the fund).
Recommendation
Lancashire Local-Burnley is requested to:i.
note the revised funding allocations to each district as summarised at
Appendix 'A', and detailed at Appendix 'D'; and
ii.
note that each LLCCF applicant is asked in future to describe their project's
contribution to delivering the emerging Lancashire Climate Change Strategy,
and district climate change strategy (where one exists); and
iii.
comment on the operation of the fund so far, with a view that officers might
be able to make further changes, but also recognising the need to retain
some universal operating principles; and
iv.
note the report.
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Background and Advice
The LLCCF seeks to support community projects on climate change.
The Government's UK Energy Review emphasised the essential role to be played by
individuals in tackling climate change. It also highlighted the role which communities
can potentially play in stimulating and supporting individual action.
In light of this, the LLCCF seeks to mobilise individual behavioural change through
community projects.
As the national Energy Review states:
“If we are to be successful in delivering the long-term cuts in carbon
emissions that we need to avert dangerous climate change, the involvement
of individuals will be critical. There are many barriers to individual
engagement, but we anticipate that local authorities and community groups
can play a key facilitating role"
LLCCF projects can either be aimed at ‘reducing greenhouse gas emissions’, or
helping communities to ‘cope with the impacts of climate change’.
Allocation of Funds
The Fund is available for three years. The annual £250,000 fund is shared across all
12 Lancashire Locals, according to the domestic carbon dioxide emissions per head
of population in each district (as opposed to total carbon dioxide emissions per head
of population – in other words industrial emissions are excluded). Funds were
allocated according to 2004 data from DEFRA, which was the most recent data at
the time of allocation in summer 2007.
Any under spend of the fund at the end of each year is carried over into the next year
by the Lancashire Local.
In November, 2008, CO2 data was released by DEFRA (for the year 2006). Using
this would mean that funds are allocated according to Appendix 'A' for the next
financial year (2009/2010). Appendix 'D' shows how the calculations have been
made.
Number and Range of Projects
Since the Lancashire Locals Climate Change Fund was launched at the end of
October, 2007, two funding rounds have been fully completed.
At the time of writing this report, the third funding round is two thirds complete.
Since the fund commenced, a total of 105 applications have been made to the Fund.
55 projects have been successful in receiving funding and a total of £349,933 has
been awarded. In turn this has contributed to a minimum of £2.6 million of external
funding being levered into the county during the first two rounds.
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A diverse range of projects has been proposed by a broad variety of community
groups, (Appendices ‘B’ and ‘C’).
Some examples of projects submitted include:
 Insulation of community buildings.
 Installation of solar panels and ground source heat pumps in community
buildings.
 Installation of energy saving light bulbs in community buildings.
 Community tree planting.
 Insulation and energy efficient heating in church buildings.
 Energy audits of community buildings.
 Installation of a wood pellet heating system in a community building.
 Installation of a solar panel to supply hot water to a community centre.
 Setting up village green teams
 Using alternative forms of transport to the car
2007-08 was the first year and only had one bidding round from October, 2007, to
January, 2008. This round resulted in 23 successful applications and a total of
£154,002.10 was awarded. Projects that were successful in applying are detailed at
Appendix ‘B’.
2008-2009 is the second year and has three bidding deadlines; 30 th May, 31st
October and 31st January, 2009.
The first bidding round of the second year (2008) closed on 30th May. There were 26
successful applications and £175.542.71 was awarded. Projects that were
successful in applying are detailed at Appendix ‘C’.
The second bidding round of the second year (2008) closed on the 31st October.
There were 24 applications and at the time of writing this report, the Lancashire
Locals were considering the applications. So far six applications have been
successful in this second round.
There will be a further three rounds in 2009-2010.
Raising Awareness of the Fund
Striking the right balance between inviting applications and the amount of funding
available is important. It is clearly important to ensure funding is allocated
successfully at the end of each year, so ensuring maximum community benefit. It is
also important to have a competitive bidding process with several applications, but
not to the extent that a large number of applicants are left disappointed.
At the end of the first financial year (2007/2008 - which started half way through the
year and contained just one bidding round) some £97,000 was unallocated, and
carried over to the next financial year.
-4So the second financial year (2008/2009) had £347,000 (£250,000 plus £97,000).
Despite this, it appears that almost all of the funding will be allocated in 2008/2009.
In some districts the total amount of money available for 2008/2009 has already
been allocated after the first bidding round. Burnley, Lancaster, Preston, and
Rossendale no longer have any funding available this financial year (2008/2009).
Any applications received for these districts will be kept on file until the start of the
next financial year (April, 2009).
Any further awareness raising activity might generate many more applications than
can be funded, leading to wasted effort and disappointment from community groups
through falsely raised expectations. It might also put each Lancashire Local under
pressure to make some difficult choices.
In light of the above, the current level of awareness raising is probably about right.
That said, the number of applications from each district is being monitored. If a
district is showing significant funds still available, a targeted promotion of the fund
will be made.
To date, promotion of the fund has consisted of:
 a letter and guidance pack sent to each of the 195 Parish and Town Councils
in Lancashire.
 Several articles in Vision throughout 2008.
 Several articles in local newspapers, either advertising the fund or celebrating
successful projects.
 Email awareness raising among community and environmental groups.
 Web site promotion.
 Awareness raising by County Councillors.
 Awareness raising by officers with partner organisations.
 Regular agenda items on each Lancashire Local and on the Cabinet
Committee.
 Awareness raising of the fund through talks and presentations to community
groups.
 Focussed awareness raising in Ribble Valley district, including a second mail
out to each parish council.
External and 'in kind' Funding
Successful applicants have also secured or applied for a significant level of external
funding and support for their projects. In some cases the additional external funding
has been significant. In other cases projects have included in-kind donations and
offers of help e.g. loan of office space, or free materials.
Wherever possible a monetary value has been assigned to this additional support
and details have been provided at Appendices ‘B’ and ‘C’. It is difficult to provide a
figure for the ‘total’ amount of additional funding levered in, as some climate change
projects are just one element of a much wider programme that has attracted
significant lottery funding, for example. To include these funds would skew the
results somewhat.
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Nevertheless, the County Council’s fund has contributed to a minimum of £2.6
million of external funding being levered into the county during its first two rounds.
Role of the Appraisal Officer and the Lancashire Local
The main aim of the LLCCF is to engage communities and individuals in tackling
climate change (as mentioned above in relation to the UK Energy Review). Carbon
reduction is also important, but it is not the only driver. Other aspects of the County
Council's climate change programme deal specifically with carbon reduction in a
more focussed way.
Because of this, carbon reduction is not the sole consideration by officers when
appraising applications to the fund. Other factors such as community engagement
are just as important, so that projects can help to mobilise individual behaviour
change.
Some difficult choices have to be made between competing projects when a limited
amount of funding is available, especially when it is near impossible to estimate
carbon savings from projects
A hypothetical example helps to illustrate the dilemma. For example, Project 'A'
seeks to create a piece of community art in a town centre using redundant high
energy light bulbs. The aim is to encourage people to make behavioural changes in
energy use at home. Project 'B' seeks to install 12 inches of loft insulation in a local
scout hut to save energy. Which project saves the most carbon? Which project is
the most effective? These questions are difficult to determine.
Because of this quandary, officers can only make a professional judgement on each
application to advise the Local on the merits of each application. They can advise,
drawing on their professional experience, on issues such as deliverability, finance,
community engagement and links to other initiatives. They cannot make the
decision on which project to fund, especially where separate projects have similar or
indeterminate climate change outcomes.
That decision is for the Local to take based upon its preferences and local
knowledge.
This can be quite challenging when the Local has several competing applications to
choose from, with funding available for just one project.
To help make selection a little easier, it might be worth appraising the application
against the objectives of the recently emerging Lancashire Climate Change Strategy,
or even the district climate change strategy where one exists (two districts now have
local climate change strategies).
The application form can be amended in future to ask applicants to identify how far
their project aligns to the emerging Lancashire or the district climate change strategy
(where one exists).
-6Internal operation and fund housekeeping
The LLCCF is a new fund. Six months after the fund started, Environment
Directorate officers conducted a review of the fund's operation to see how things
were working internally. Advice was sought from appraisal officers, internal audit,
and officers from democratic services. Several internal changes have been made to
strengthen the fund's internal operation, with some useful recommendations from
internal audit. These low level risks involve things such as reconciling separate
financial systems, tightening procedures on claw back, and strengthening project
monitoring after implementation.
Operational demands and staff time
Operation of the LLCCF involves a significant level of officer time. Presently, an
officer is allocated to each district. Each officer undertakes a number of preapplication development roles, often working with community groups to help advance
their thinking and project development, before an application is submitted.
Applications are appraised and reports prepared and submitted to the Local,
accompanied by the appraising officer. So far, 105 applications have been
submitted.
Successful projects are further supported, and monitored/visited to ensure delivery is
on track. This process is replicated across 12 districts.
There is also a significant central role in administering the fund, typically involving 3
days per week of officer time.
Whilst the fund's operational demands are manageable, it does mean that less time
is available to develop new climate change projects.
Seeking the views of each Local
The fund has been operating for 11 months at the time of writing this report. While
some important lessons have been learned, it is inevitable that more time and more
dialogue will reveal information that allows the fund's working arrangements to be
further sharpened.
The fund will also benefit from the views of the Locals by consulting them on the
operation of the fund over this period. It is felt that each Local will be able to provide
valuable insights, drawing on their experience. In its considerations the locals are
asked to note the need to retain some universal operating principles for the fund.
Consultations
N/A.
Implications:
This item has the following implications, as indicated:
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Risk management
This report suggests some changes to the fund's operation. Some housekeeping
changes to the fund will reduce risks further.
Financial
There are no significant financial changes, and funding is within previously agreed
limits. The changes in allocation of the fund to each district (still within the same
overall total) should not pose any significant risks.
This review report shows that funding requests from applicants are in some cases
outstripping available funds. Each Lancashire Local will be reminded of its funding
limit when approving applications.
Local Government (Access to Information) Act 1985
List of Background Papers
Paper
Date
Contact/Directorate/Ext
Lancashire Local Climate
Change Fund report to
Cabinet Committee
September, 2008
Andy Mullaney/
Environment
Directorate/Ext: 34190
Lancashire Climate Change
Strategy and Action Plan :
Consultation Draft
Report to Cabinet
Committee on Climate
Change & Environment
19th November, 2007
Clare Phillips/
Environment
Directorate/Ext: 34188
Reason for inclusion in Part II, if appropriate
N/A.