1 Leeds City Region Domestic Energy Efficiency Project (DEEP) November / December 2010 Chris Brown City of Bradford MDC Ann Pittard Wakefield Metropolitan District Council

2 Leeds City Region – Domestic Energy Efficiency Project (DEEP) 10 local authorities, 1.2m households, 5.6% of energy market, trusted brands, track record, 900,000 private sector households

3 Leeds City Region – Domestic Energy Efficiency Project (DEEP) Context Government has challenging carbon saving targets with key targets at 2026 and 2050 Domestic (household) CO2 savings can contribute a significant amount to the overall target Leeds City Region contains over 1.2million households and provides 5.6% of the national energy market Local authorities within the LCR have developed public private partnerships to deliver CO2 savings and have developed expertise and shown their enthusiasm through doing

Some Questions Is the whole house approach the right approach? Are we right to focus on private sector households? How can LCR best grow green jobs? What needs to happen to ensure local business is supported? How do we build a programme which recognises innovation, new technology and funding opportunities will constantly present new opportunities for domestic carbon savings?

5 Leeds City Region – Domestic Energy Efficiency Project (DEEP) Existing Insulation Schemes Local AuthorityCriteriaInsulation Scheme Barnsley Free Cavity Wall and Loft Insulation for householders aged in Council Tax Bands A-D OR on an income of less than £19242/year OR on long term capacity benefit OR employment and support allowance for 1 year or longer. Barnsley Insulation Scheme Bradford Free Cavity Wall Insulation for all households. Loft insulation free to priority groups and a discounted rate for the able to pay Bradford Community Warmth Calderdale Free Cavity wall and insulation for the over 60s and vulnerable households with cold related medical conditions Discounted schemes for the able to pay market. Calderdale Home Insulation Scheme Craven Free to the over 60s and Council Tax bands A, B, C Craven Energy Efficiency Harrogate Free to the over 60s and Council Tax bands A, B, C Energy Efficiency Kirklees Free cavity wall and loft Insulation for all householders Kirklees Warm Zone Leeds Loft and cavity wall insulation free to priority groups and a discounted rate for the able to pay Utility schemes Selby Free to the over 60s and Council Tax bands A, B,C Selby Heating and Insulation Project Wakefield Free Cavity Wall and loft Insulation for Householders in Hemsworth and East Wakefield Wards + all households aged or free/reduced prescription charges Wakefield Low Carbon Communities York Free to the over 60s and Council Tax bands A, B, C York Energy Efficiency Grant

Table x LCR Public sector contribution to domestic carbon saving programmes delivered through the private sector Funding Source / Period Regional Housing Board Local Authority direct contribution Local Strategic and other partnerships for example working neighbourhood fund, health partnerships Combined Total £ 2m 11m £ 2m £ 15m £ 0m 1.3m £ 0m £ 1.3m Difference £ 2m 9.7m £ 2m £ 13.7m

2026 LCR Domestic Carbon Target (38m tonnes) Based on Stockholm Environment Institute LCR research 2008 % of 2026 LCR target Category 9%New build homes 22%Behavioural Change 55%Insulation measures 12.5%Micro generation (Zero carbon technologies) 1.5%Other Measures

8 Leeds City Region – Domestic Energy Efficiency Project (DEEP) Objectives To deliver Government CO2 targets to our customer and housing stock we need a whole house approach and sequence the delivery of certain measures; –To save maximum carbon –Create sustainable green jobs –Reduce fuel poverty –Stimulate private sector innovation –Embrace technological advances at the right time –Cost effective CO2 savings for customers

9 Leeds City Region – Local Carbon Framework DEEP Principles Encourage LCR members to adopt the five DEEP principles 1.Quality independent data collection at one visit 2.Whole house approach - insulation, Air tightness (drafts), heating, micro generation, behaviour 3.Customer Choice - Immediate or Gradual carbon savings 4.Customers to access opportunity in an open carbon market 5.LCR able to provide strategic investment lead by directing any subsidy it is able to attract

10 Leeds City Region – Local Carbon Framework DRGF Bid focus Focus on private sector households and not social housing initially The scheme delivers a programme : –51000 physical carbon saving measures (of which are insulation) –19000 behavioural change measures –751 green jobs – (342 net additional and up to 48 public to private sector transition jobs) –9.7m public sector investment –36m+ private sector investment LCR using the local Carbon Framework Pilot to test DEEP principles

Phasing 2011/ / /2014 Qtr 1Qtr 2Qtr 3Qtr 4Qtr 1Qtr 2Qtr 3Qtr 4Qtr 1Qtr 2Qtr 3Qtr 4 Confirming Fund ing Project Set up Team set up inc secondments Partnership formalisation Procurement Data system set up Whole House Survey focus on Cert capture Whole House Survey support Green Deal and ECO Publicity, customer web system developed Delivery of behavioural change Delivery of Cert supported products Mop up Cert provided products Early delivery green deal and ECO Delivery of Green Deal and ECO Delivery of FIT Delivery of RHI Draft proofing Framework monitoring

12 DEEP Partnership Framework – preferred model Framework to cover 10 local authorities, 1 procurement process, framework contracts provided to obligated energy suppliers who will lead a consortium of suppliers and installers of measures, consortiums could include management agents to support smaller local business and small, medium and large companies able to deliver the range of measures. Framework contractors would ensure CERT commitment is in place up to December 2012

13 DEEP Partnership Framework – preferred model 2-4 framework consortium 90% of LCR fitted measures will be delivered through the framework, Framework contractors will be allocated a share of the volume work and focus delivery in core localities. Framework performance monitoring to allow reward. Customers choosing to go direct to market is capped at 10%. If there is underuse of this opportunity additional allocation will be available to reward the best performing partners Monitoring criteria Jobs created Skills & accreditation of local people Use of local supply chain Carbon Saved Cost Complaints Administration and project management

Locality DEEP Funding by local authority locality shareJobsRGF Funding by Year in 000s Carbon saved Tonnes (M) Number of households in 000s at 2008 approx % of LCR households approx £ 000 investment by Local authority Area from RGF approx £ 000 investment by Local authority Area from RGF & private sector Private sector jobs potential 24 month transitiona l LA jobs England21,731 Yorkshire & Humber2,203 ** Leeds City Region1, inc 342 net additional Barnsley Bradford Calderdale Craven Harrogate Kirklees Leeds Selby Wakefield York **Assumed each local authority receives same proportion of whole house surveys relative to its LCR household share **Assumed that all localities convert whole house surveys to measures in an identical way ** the programme would build in mechanism to prevent overall programme slippage if measures could not be achieved or were slow in any locality

Some Questions Is the whole house approach the right approach? Are we right to focus on private sector households? How can LCR best grow green jobs? What needs to happen to ensure local business is supported? How do we build a programme which recognises innovation, new technology and funding opportunities will constantly present new opportunities for domestic carbon savings?

16 Leeds City Region – Domestic Energy Efficiency Project (DEEP) Questions for LCR Local Authorities Thank You & Any Questions

Potential DEEP Measures through RGF LCR / LAs Core Duties Branding, negotiating, support, procurement, data management, monitoring, publicity, IT EPC (Contracts/Framework) Framework opportunities to deliver FITS RHI Green Deal Approx 7-10k PAYS/Cash Return 10 years (All subject to national funding arrangement) Jobs 900 jobs CO2 20% of LCR CO2 target savings Customer choice of measure Customer choose delivery framework or open market delivery routes Carbon vouchers providing Transparency of costs LCR Subsidy to encourage take up of strategic CO2 measures Focus on CO2 savings & LCR stock needs Customer Option A Instant whole house CO2 savings Customer Option B Gradual whole house CO2 savings 51,000 CO2 Measures 19,000 behavioural change CO2 Measures

Obligated energy suppliers CERT achievements up to 10 th quarter December 2010

CERT Policy Developments CERT will end December 2012 Replacements by the Green Deal (£6,500 pay as you save + potentially £3,500 additional grant for vulnerable households) and potentially a Energy Carbon Obligation (smaller but could be similar to CERT to help deliver low cost insulation measures) Principles by which cert is restricted especially post April 2011 –Confidence that carbon savings are realised –Avoidance of deadweight –Focus on non traded sector –Positive impact on vulnerable households –Contributes to scheme transparency