Energy and Buildings

The CRC Energy Efficiency Scheme Order 2013 (SI 2013/1119) was made on 15 May 2013 and comes into force on 20 May 2013. (Free access.)

The Department of Energy and Climate Change (DECC) has published a consultation paper on amendments to the Consumer Credit Act 1974 (CCA 1974) to clarify the identity of a debtor in a regulated Green Deal Plan.

The Department of Energy and Climate Change (DECC) published guidance for Green Deal providers and landlords considering entry into a Green Deal plan during void periods.

The Department for Communities and Local Government (DCLG) published its response to its consultation on expanding the one-stop shop approach to obtaining non-planning consents for nationally significant infrastructure, on 12 March 2013. 

On 4 March 2013, a draft of the CRC Energy Efficiency Scheme Order 2013 was laid before Parliament and the devolved administrations. The Environment Agency has also published revised guidance for participants in Phase 1 of the scheme (2010-11 to 2013-14).

The government published a draft of the CRC Energy Efficiency Scheme Order 2013 on 4 March 2013.

The European Commission announced on 21 February 2013 that it has decided to go ahead with infringement proceedings against the UK and will refer the UK to the Court of Justice of the European Union (ECJ) over the UK's reduced VAT rate of 5% for energy-saving materials.

The Department for Communities and Local Government (DCLG) has confirmed the approach to enforcement of regulations 10 and 11 of the Energy Performance of Buildings (England and Wales) Regulations 2012 (SI 2012/3118). (Free access.)

The Energy Act 2011 (Commencement No 2) Order 2013 (SI 2013/125) and the Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) (Amendment) Regulations 2013 (SI 2013/139), both came into force on 28 January 2013.

PLC Construction's Ask the team article explains why the Construction (Design and Management) Regulations 2007 apply to offshore wind farm projects.

17 solar photovoltaic (PV) installation companies have commenced civil proceedings against the Department of Energy and Climate Change (DECC) claiming £140 million of losses allegedly incurred as a result of DECC's unsuccessful attempt to cut the feed-in tariffs (FITs) for smaller-scale solar PV at short notice in late 2011 and early 2012.

The Office of Gas and Electricity Markets (Ofgem) launched a consultation on draft guidance for community energy and school installations (version 1) under the feed-in tariff scheme (FITs), on 13 December 2012.

The developments that property practitioners can expect in 2013.

The Department for Communities and Local Government (DCLG) has announced that it is dropping its plans for "consequential improvements" in Part L (conservation of fuel and power) of Schedule 1 to the Building Regulations 2010 (SI 2010/2215) (SI (BR 2010).

A cashback scheme to incentivise homeowners and residential landlords and tenants to sign up to energy efficiency improvements under the Green Deal was announced by the Department of Energy and Climate Change (DECC) on 19 October 2012. (Free access.)

The Council of Mortgage Lenders (CML) published a summary of its approach to the government's Green Deal, on 5 October 2012.

On 25 September 2012, the Electricity and Gas (Smart Meters Licensable Activity) Order 2012 was published.

HM Revenue & Customs (HMRC) published Revenue & Customs Brief 26/12, seeking views on proposals for withdrawal of the reduced rate of VAT for energy saving materials installed in buildings used for a relevant charitable purpose, in August 2012.

HM Treasury issued a statement, on 16 July 2012, setting out the principles that it will use to determine whether a tax is classed as an environmental tax. 

The property implications of the Department of Energy and Climate Change (DECC) London event on 23 May 2012 where the proposals in its consultation on how to simplify the CRC Energy Efficiency Scheme (CRC) were discussed.

The Department of Energy and Climate Change (DECC) published the government response to, and its final decisions on, the consultation on its Phase 2A comprehensive review of the feed-in tariffs (FITs) for solar photovoltaics (PV), on 24 May 2012.

On 22 May 2012, the government published the draft Energy Bill 2012 for pre-legislative scrutiny, which will implement Electricity Market Reform (EMR).

The Queen's Speech was delivered on 9 May 2012 and includes a number of Bills, which are likely to be of interest to property practitioners.

The Department for Communities and Local Government has published guidance on the recent changes to the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 (SI 2007/991) (EPB Regulations 2007), which come into force on 5 and 6 April 2012. 

The government has published the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendment) Regulations 2012 (SI 2012/809).

The Department of Energy and Climate Change (DECC) stated that it had lodged an application with the Supreme Court, on 21 February 2012, seeking the court’s permission to appeal against the Court of Appeal's decision in January 2012 on feed-in tariffs (FITs).

The Department of Energy and Climate Change (DECC) announced, on 12 January 2012, that HM Treasury had laid the Draft CRC Energy Efficiency Scheme (Allocation of Allowances for Payment) Regulations [2012] before Parliament.

On 9 December 2011, HMRC published expanded guidance, in its Supply and Consideration Manual, on the VAT treatment of feed-in tariff arrangements. 

The European Commission launched a consultation on water efficiency in buildings on 16 November 2011.

The Department for Communities and Local Government (DCLG) published Laying the Foundations: A Housing Strategy for England on 21 November 2011.

The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendment) Regulations 2011 (SI 2011/2452), which come into force on 6 April 2012, have been published. 

The Royal Institution of Chartered Surveyors (RICS) has published an information paper on the need to consider sustainability characteristics when valuing residential property.

An ask the team considering the SDLT and VAT issues on the grant of a FITs lease for solar panels on the roof of a commercial property.

The Department of Energy and Climate Change (DECC) announced, on 21 July 2011, that the Renewable Heat Premium Payment (RHPP) scheme opens on 1 August 2011. (Free access.)

On 30 June 2011, the Department of Energy and Climate Change (DECC) outlined the changes it is planning to make to the CRC Energy Efficiency Scheme. A formal consultation on draft legislation will follow in February 2012.

The Council of Mortgage Lenders and the Building Societies Association have jointly published guidance on what lenders will require before consenting to a lease of roofspace.

The Department for Communities and Local Government (DCLG) announced its policy on key aspects of the definition of zero carbon homes that new homes will have to meet after 2016 in England, on 17 May 2011.

The DCLG intends to amend the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 (SI 2007/991).

The Better Buildings Partnership (BBP) has published its sixth toolkit, designed for managing agents who wish to manage their buildings in a way that reduces any adverse impact on the environment. (Free access)

The implications of the government's 2011 Budget for the construction and engineering industry, and the industry's reaction to it. (Free access.)

The government published a draft Carbon Plan on 8 March 2011. The Carbon Plan sets out actions and deadlines for each government department to take over the next five years, to work towards a low carbon economy for the UK and to combat global climate change.

The European Commission published an Energy Efficiency Plan 2011 on 8 March 2011.

The Welsh Assembly Government (WAG) published a new edition of Planning Policy Wales on renewable energy, on 1 March 2011.

An Ask the team article on whether the removal of the requirement to make an information disclosure in respect of phase 2 and subsequent phases of the CRC Energy Efficiency Scheme (CRC), as a result of the CRC Energy Efficiency Scheme (Amendment) Order 2011 (SI 2011/234), applies retrospectively so that enforcement action can no longer be taken against organisations that failed to make an information disclosure for the introductory phase.

On 7 February 2011, DECC announced a comprehensive review of feed-in tariffs (FITs), a fast-track consideration of large-scale solar installations, and a study on the uptake of FITs for farm-based anaerobic digestion (AD) plants. (Free access.)

The Department of Energy and Climate Change (DECC) published five discussion papers on how to simplify the CRC Energy Efficiency Scheme (CRC), on 25 January 2011.

On 15 December 2010, the Global Reporting Initiative (GRI) issued a final public consultation on its sector supplement for sustainability reporting by the construction and real estate sectors. (Free access.)

A note outlining what construction practitioners can look forward to in 2011.

The developments that property practitioners can expect in 2011.

The Government has published proposals on improving the use of energy performance data.

This update discusses whether the abolition of the revenue recycling payments will make it easier for landlords to recover their costs under the CRC Energy Efficiency Scheme from tenants. This update was amended to reflect information provided by the Department of Energy and Climate Change (DECC) at a stakeholder event on simplification of CRC Energy Efficiency Scheme on Thursday 3rd March 2011.

The government has published an updated version of the technical guidance which sets out the details of what is required to meet the performance standards in the Code for Sustainable Homes.

The coalition government launched a consultation, on 18 October 2010, on revised draft energy National Policy Statements (NPSs) for energy infrastructure, which supersede those that the Labour government drafted and consulted on earlier in 2010. The consultation was launched alongside a written ministerial statement on energy policy.

On 20 October 2010, the Chancellor of the Exchequer, George Osborne, set out the government's four-year public spending plans in the Comprehensive Spending Review (CSR) 2010. (Free access.)

The Green Property Alliance published a report on sustainability metrics to help the property industry harmonise the methods used in measuring the sustainability performance of buildings, on 12 October 2010.

This Ask the team article considers what name will appear in respect of a participant on the league table created under the CRC Energy Efficiency Scheme (CRC).

The UK government has created 15 marine protected areas (MPAs) and submitted them, in August 2010, to the European Commission for final approval as candidate Special Areas of Conservation (SACs) and Special Protection Areas (SPAs). 

An Ask the team article on how sub meters are treated under the CRC Energy Efficiency Scheme (CRC).

An update on a consultation published by the  Welsh Assembly Government, on 16 July 2010, on planning for renewable energy.

An update on the revised Practice notes: Energy performance certificates. EU Energy Performance of Buildings Directives: 2002 Directive and 2010 recast Directive.

An article on whether an energy performance certificate or predicted energy certificate needs to be provided to a buyer who is purchasing off-plan.

A legal update on a new report, Hitting the Green Wall... and Beyond, published by the British Property Federation (BPF), Taylor Wessing and Spada, which considers the UK property development industry's view of sustainability and environmental issues.

A legal update on the Low Carbon Retrofit Toolkit published by the Better Buildings Partnership.

An update on the Queen's Speech, delivered on 25 May 2010, which included a number of Bills of interest to the property industry.

An update on the environmental proposals in the coalition agreement announced by the Conservatives and Liberal Democrats on 11 May 2010, following the general election on 6 May.

An Ask the team article on whether the CRC Energy Efficiency Scheme (CRC) rule regarding landlords and tenants also applies to licensees and licensors.

A legal update on a research paper on measuring carbon emissions from buildings, published by the Royal Institute of Chartered Surveyors (RICS) and Sturgis Associates.

A legal update on the Sustainable Communities Act 2007 (Amendment) Bill 2009-10.

An update on the publication, on 24-25 March 2010, of the final version of the CRC Energy Efficiency Scheme Order 2010, revised versions of the Environment Agency guidance notes on qualification and registration and a number of new Environment Agency guidance notes on the CRC.

On 24 March 2010, as part of the 2010 Budget documents, the DECC and HM Treasury published an interim report on the Energy Market Assessment.  A report on a strategy for national infrastructure has also been published.

An update explaining that the CRC Energy Efficiency Scheme Order 2010 has been approved by the Privy Council but is not yet available on the Office of Public Sector Information (OPSI) website (where final legislation is published by the Government).

An update on the publication of a new supplement, Planning Policy Statement 25: Development and Coastal change, and the associated practice guide.

An update on the Department for Communities and Local Government consultation on making better use of energy performance certificates and data.

An update on the launch of the CRC Survival Kit.

An update on an Addendum published by the Department of Energy and Climate Change, on 25 January 2010, which sets out the main policy changes that the Government has made to the CRC Energy Efficiency Scheme Order 2010 (which was laid in draft before Parliament on 19 January 2010).

An update on an announcement by the Department of Energy and Climate Change that the CRC Energy Efficiency Scheme Order 2010 was laid in draft before Parliament on 19 January 2010. NOTE: The Order, and accompanying explanatory memorandum, are now available. For more information, see Legal update, Revised draft CRC Order published on the OPSI website.

An update on the Sustainable New Homes: The Road to Zero Carbon: Consultation on the Code for Sustainable Homes and the Energy Efficiency standard for Zero Carbon Homes.

An update on a report published by the Carbon Trust which highlights the need for non-domestic buildings to improve their energy rating to ensure the UK meets its carbon reduction targets.

An update on the developments that property practitioners can expect in 2010.

An update on the Welsh Assembly Government's policy clarification letter on Ministerial Interim Planning Policy Statement (MIPPS) 01/2009 Planning for Sustainable Buildings.

An Ask the team article on how each Phase in the CRC Energy Efficiency Scheme (CRC) is divided and whether they overlap with each other.

The Chancellor delivered the 2009 Pre-Budget Report on 9 December 2009. This Legal update examines those implications that will be of particular interest to property lawyers.

An update on the launch, on 24 November 2009, of a consultation, Zero Carbon for New Non-domestic Buildings: Consultation on Policy Options, in England by the Department for Communities and Local Government.

On 2 December 2009, the DECC announced its decision on the roll-out of smart meters and Ofgem announced that it will play a key role.

An update on an agreement between the world's leading green building organisations, including the World Green Building Council (of which the UK Green Building Council (UK-GBC) is part) and the Building Research Establishment (BRE), to use a common carbon metric for measuring the carbon dioxide emissions and energy efficiency of buildings.

An update on the new content PLC is planning to produce on the Carbon Reduction Commitment (CRC).

An update on the Queen's Speech, delivered on 18 November 2009 which included a number of Bills of interest to the property industry.

An update on the consultation on the draft National Policy Statements (NPSs) on energy infrastructure published by the Department of Energy and Climate Change on 9 November 2009.

An update on the publication by the Department of Energy and Climate Change, on 7 October 2009, of the Government's Response and Policy Decisions to the consultation on the draft Carbon Reduction Commitment (CRC) Order.

An update on two briefing notes published by the working group responsible for the Code for Leasing Business Premises in England and Wales 2007: Environmental Good Practice and Environmental Management of Building Agreement.

An update on the Department for Communities and Local Government's consultation on the European Commission's redraft of the Energy Performance of Buildings Directive.

An update on the responses to the definition of zero carbon homes and non-domestic buildings consultation, published by the Department for Communities and Local Government on 16 July 2009.

An update on the launch of BREAAM Communities.

An update on guidance for landlords and tenants on the Carbon Reduction Commitment, published by a working party representing the interests of the property industry in June 2009.

An update on publication of the British Council for Offices (BCO) specification for offices 2009.

An update on the second reading of a Private Members' Bill, the Green Energy (Definition and Promotion) Bill in the House of Commons on 8 May 2009, and on the Government's announcement that it will to consult in summer 2009 on prior approval for certain microgeneration development.

On 11 May 2009, the DECC published a consultation on proposals relating to the roll-out of smart meters to domestic households and at small and medium non-domestic sites.

An update on the 2009 Budget proposals affecting property.

An update on a consultation launched on 12 March 2009 by the Department of Energy and Climate Change on a draft Order to introduce the Carbon Reduction Commitment (CRC) and on a draft CRC user guide.

An update on guidance published by the Confederation of British Industry and the British Council of Shopping Centres, in January and February 2009, setting out the challenges facing landlords and businesses preparing to comply with the Carbon Reduction Commitment.

An update on the Government's consultation on proposals for a Heat and Energy Saving Strategy.

An update on Taylor Wessing LLP's report "Behind the Green Facade: Is the UK development industry really embracing sustainability?", January 2009.

An update on the developments that property practitioners can expect in 2009.

An update on the Marine and Coastal Access Bill, introduced in the House of Lords on 4 December 2008.

PLC Property has published a new Practice note, Energy performance certificates: negotiation issues.

An update on the main environmental announcements in the 2008 Pre-Budget Report, delivered by the Chancellor on 24 November 2008.

An update on the October 2008 version of the Code for Sustainable Homes: Technical Guide.

The Carbon Trust has produced a practical guide, Carbon Trust: Low carbon refurbishment of buildings - Management guide, on how to improve energy efficiency when refurbishing non-domestic buildings.

An update on the new Department for Energy and Climate Change announced by the Government on 3 October 2008.

The Office of Fair Trading (the OFT) has published Homebuilding in the UK: A market study that concludes:The home building sector is broadly competitive and there is little evidence of home builders "landbanking" to restrict supply and inflate prices.Homebuyers can experience delays and faults and they need more protection when buying a new home.Some organisations involved with the home building sector have agreed to implement a code of conduct and redress scheme to address the problems experienced by homebuyers. The OFT recommends statutory intervention if the industry fails to deliver an effective solution to these problems.

The Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2008 (the 2008 regulations) come into force on 1 October 2008. The 2008 regulations provide that plant and machinery with the capacity to generate electricity and heat below certain thresholds will not have an immediate impact on the rateable value of non-domestic property on or after 1 October 2008.

The Department for Communities and Local Government has published guidance on the duty to have air-conditioning systems inspected.

KPMG has warned that complying with the forthcoming Carbon Reduction Commitment (CRC) may prove to be a challenge for many companies and could have a significant impact on cash flow (see KPMG press release).The CRC, which is due to start in 2010, will require companies and other organisations covered by the scheme to start measuring their carbon dioxide emissions in October 2009. However, KPMG are strongly advising clients to begin measurements sooner to enable reliable cash flow forecasting. According to the head of KPMG's Carbon Advisory Group: "For many companies, having to measure their total energy usage across all their operations will put them in very unfamiliar territory and prove to be a real challenge. Companies that operate across multiple sites, or that have franchises, or groups of companies in private equity ownership - for all of these, measurement will not be straightforward or easy."The risks and added costs include:Cost of measuring and reporting on annual emissions.Cost of buying CRC allowances to cover the amount they have emitted, to buy more allowances if they have emitted more than originally forecasted and the cost of the penalties if they do not have enough allowances to cover their emissions.Damage to reputation caused by being named and shamed as the worst CRC performer in the CRC league table.Cash flow problems associated with the timing of when revenue obtained from the auctioning of allowances is recycled back to CRC participants, with

The Department for Communities and Local Government has published the following guidance in relation to energy performance certificates (EPCs): Energy performance certificates for dwellings in the social and private rented sectors: A guide to generating Energy Performance Certificates for similar dwellings owned by the same landlord. This guidance covers two ways of producing multiple EPCs for similar residential properties. The first way is the "common values" approach, which involves producing an EPC for one property using data from a similar property that has been amended to account for differences between the properties. The second approach is "sampling and multiple certification", under which EPCs for a group of properties are produced from a survey of a sample. Improving the energy efficiency of our buildings: A guide to energy performance certificates for the construction, sale and let of non-dwellings (2nd edition) This guidance updates the first edition of the same publication, which was published in January 2008. The Practice note, Energy performance certificates has been updated to refer to both new sets of guidance.

The Energy-Saving Items (Corporation Tax) Regulations 2008, which extend the availability of tax relief for "green" energy-saving measures to residential landlords within the charge to corporation tax, have been published.

On 16 July 2008, the Department for Children, Schools and Families (DCSF) launched its first consultation on how to ensure all new schools in England are zero carbon by 2016 (see DCSF press release). The consultation closes on 6 October 2008. The consultation, referred to as a call for evidence, will be carried out by the newly created Zero Carbon Task Force for schools. For further information on the Task Force, see Legal update, First steps towards zero carbon schools. The consultation focuses on the following four areas: Reducing energy use in schools. Sharing energy supplies. Designing low energy buildings. Exploring potential zero and low carbon technologies. The results of the consultation will be fed into the interim report the Task Force plans to submit to the Government by the end of 2008. In a separate announcement, the Department for Environment, Food and Rural Affairs has said that state-funded schools will be included in the forthcoming Carbon Reduction Commitment (CRC) (see Legal update, Government announces inclusion of schools and other changes to the Carbon Reduction Commitment). The CRC, which is expected to come into force in 2010, will create an obligatory emissions trading scheme for large non-energy intensive organisations, including local authorities. Carbon dioxide emissions from schools would count towards the relevant local authority's total amount of emissions, thus providing them with an incentive to help schools reduce their emissions.

The Welsh Assembly Government has announced proposals to use the Welsh planning system to set a national minimum standard for the sustainability of all new buildings. Incorporated into this new planning strategy will be a standard for renewable and low carbon energy sources. The approach of the Welsh Assembly Government is different to the approach taken in England.

The Zero Carbon Hub is a new public and private partnership launched on 26 June 2008 to help deliver the Government's target for all new homes in England to be zero carbon by 2016 (see NHBC press release). The Hub will be led by the National House Building Council's general manager (Neil Jefferson) and chaired by the chief executive of the UK Green Building Council (Paul King). It will bring together the private and public sectors to find ways of implementing the 2016 target. Achieving the 2016 target will require significant changes to how buildings are built and powered. For example, the fabric of buildings will have to be more energy efficient and power will have to come from renewable energy sources (such as wind power and solar panels) or be based on other low carbon technologies (such as district heating). Success will depend on an unprecedented level of co-ordination across the whole supply chain, including house builders, contractors, architects, surveyors, product suppliers, energy service companies, the microgeneration industry and local authorities. For further information on the 2016 target, see Practice note, Zero carbon buildings.

On 16 June 2008, the Department for Children, Schools and Family (DCSF) announced that it had taken the first steps towards making all new school buildings in England zero carbon by 2016, by announcing the members and terms of reference of its Zero Carbon Task Force (see DCSF press release). In its Children's Plan, published in December 2007, the DCSF pledged to make all new school buildings in England zero carbon by 2016 and to create a Zero Carbon Task Force to help it achieve the 2016 target. The Task Force will be headed up by Robin Nicholson, who is currently the head of the Commission for Architecture and the Built Environment (CABE). The Task Force has been asked to: Develop a roadmap to ensure all new schools are zero carbon by 2016. Identify where any limits to zero carbon buildings may exist. Identify good examples of zero carbon buildings. Explore the potential to reduce carbon emissions in school refurbishment projects. The DCSF Zero Carbon Task Force should not be confused with the 2016 Taskforce (run by the Department for Communities and Local Government) or the Zero Carbon Task Group (run by the UK Green Building Council), both of which also deal with zero carbon buildings. The Government has already said it wants: All new homes to be zero carbon by 2016. All new public buildings to be zero carbon by 2018. All new non-domestic buildings to be zero carbon by 2019. For further information on zero carbon buildings, see Practice note, Zero carbon buildi

The European Court of Justice's (ECJ's) decision, on 22 May 2008, in citiworks v Flughafen Leipzig/Halle GmbH (Case C-439/06) could have a significant impact on the Government's plans to deliver zero carbon homes by 2016 (see European Court blow to eco-targets, Inside Housing, 30 May 2008). It could also have important implications for the Government's national policies on microgeneration and distributed energy.The ECJ has ruled that a German law, allowing Leipzig/Halle airport to enter into an exclusive contract for the supply of on-site energy, is contrary to EU competition rules. For further information on the ECJ ruling, see PLC Competition, Legal update, ECJ judgment on third party access regime of electricity liberalisation directive.The Government wants all new homes in England to be zero carbon by 2016. To reach this target, developers will need to provide a significant amount of on-site or near-site renewable energy. This in turn means developers will need to enter into contracts with energy service companies (ESCOs) to provide this energy. However, these companies are unlikely to find the proposals financially viable unless they are granted exclusive energy supply contracts for the development in question.The Department for Business, Enterprise and Regulatory Reform has indicated that it is considering the implications of the ECJ ruling.For further information on:The 2016 zero carbon homes target, see Practice note, Zero carbon buildings.Microgeneration a

The following two Private Members' Bills, currently being debated in Parliament, are likely to be of interest to the property, construction, renewable energy and public sectors: Planning and Energy Bill. Public Sector Buildings (Energy Performance) Bill. The Planning and Energy Bill would give local planning authorities greater powers to require on-site renewable energy in new developments. The Bill has passed all the various stages of the House of Commons and is scheduled to receive its second reading in the House of Lords on 13 June 2008. The Public Sector Buildings (Energy Performance) Bill would require central government departments and their agencies to procure only buildings which have an energy performance rating of A or B. The Bill was introduced on 5 December 2007 in the House of Commons and is scheduled to receive its second reading on 6 June 2008.

The European Commission is conducting an on-line consultation on changes to the Energy Performance of Buildings Directive (2002/91/EC). The Commission has published a Background Information Paper alongside the consultation. The consultation closes on 20 June 2008. The Background Information Paper is surprisingly uninformative considering how important energy efficiency in buildings is to meeting the EU's targets on reducing greenhouse gas emissions. However, it does suggest changes to the Directive could include: Clarifying the definition of public buildings and when energy performance certificates should be made available. Lowering the 1,000 square metre threshold for when existing buildings need to meet minimum energy performance requirements. Providing an EU-wide benchmarking system to allow minimum energy performance requirements to be more easily compared across different member states. This will be particularly important for investors with property portfolios across the EU. For further information on the Directive and energy efficiency in buildings, see: Practice note, Energy Performance of Buildings Directive. Practice note, Zero carbon buildings. Practice note, Energy efficiency in buildings: overview.

We have updated and restructured the practice note on the Energy Performance of Buildings Directive and zero carbon homes into two new separate practice notes, see: Energy Performance of Buildings Directive. Zero carbon buildings. We have also updated the following practice notes to reflect recent developments, in particular new legislation on the Code for Sustainable Homes and targets for zero carbon non-domestic buildings: Energy efficiency in buildings: overview. Energy efficiency: summary.

The Home Information Pack (Amendment) Regulations 2008 and the Housing Act (Commencement No. 11) (England and Wales) Order 2008 have been made.

The Code for Sustainable Homes was launched on 13 December 2006 and is intended to provide a comprehensive and national measure of the sustainability of new homes, to drive improvements in home building practice.The Code became operational in England in April 2007. As from 1 May 2008, it will be mandatory to have a Code rating for new build homes where a local authority has received a building notice, initial notice or full plans application after 1 May 2008. For more details, see Legal update, Sustainable development ratings for new homes will be mandatory from May 2008 and Legal update, New HIPs requirements for house builders. The details of the Code are set out in technical guidance, which is updated from time to time. The guidance was updated on 17 April 2008 to reflect the changes coming into effect on 1 May 2008. The new guidance can be viewed on the website for the Department for Communities and Local Government: Code for Sustainable Homes: technical guidance.Source:Code for Sustainable Homes: Technical guide - April 2008.

The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendment) Regulations 2008, which come into force on 6 April 2008, introduce transitional arrangements for EPCs in respect of commercial properties. Where a property is on the market before 6 April 2008 (for properties over 10,000 square metres) or 1 July 2008 (for properties over 2,500 square metres), and remains on the market after that date, the obligation to provide an EPC before the sale will not apply. Note added 25/09/08: From 1 October 2008, the transitional measures in the above regulations are amended by the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendment No. 2) Regulations 2008. See Practice note, Energy performance certificates: Timetable for commencement.

The Department for Communities and Local Government (DCLG) has announced that new homes will be rated against standards contained in the Code for Sustainable Homes (the Code) from 1 May 2008. In July 2007, the DCLG consulted on the future of the Code, including whether it should become mandatory for all new homes to be rated against the standards contained in the Code. The responses to the consultation showed extensive support for a mandatory rating system. For more information, see Legal update, Responses to consultation on mandatory sustainable development rating published. For private sector homes, meeting the standards in the Code remains voluntary. However, the Government will make regulations that mean, from May 2008, those selling new homes must provide information to any prospective purchaser on the sustainability of the home. Where a home has been designed and built in accordance with the Code and assessed against it, a Code certificate will be provided. The Code certificate will show the home's rating on a scale of 1 to 6 stars, based upon its performance against nine sustainability criteria. Otherwise, a statement of non assessment (a nil-rated certificate) will be provided. The DCLG has also issued up-to-date guidance on the assessment process and the performance standards required under the Code: Code for Sustainable Homes: Setting the standard in sustainability for new homes. The DCLG guidance also explains which elements of the Code are mandatory.

The Department for Communities and Local Government is consulting on the length of time for which an Energy Performance Certificate should be valid for a private marketed sale of a dwelling.

The Department for Communities and Local Government (DCLG) has published its Sustainable Development Action Plan 2007 to 2008 (2007 Action Plan). In view of its late publication, many of the actions contained in the 2007 Action Plan have already been implemented. This update summarises the remaining actions.

The UK Green Building Council (UK-GBC) has published its report on the opportunities for achieving zero carbon emissions from new non-domestic buildings. The report, which was commissioned by the Department for Communities and Local Government, identifies a number of obstacles to reducing emissions from these types of building. These include the lack of data about energy consumption, making it difficult to develop effective models and policies, and the lack of economic incentives to reduce emissions. However, the UK-GBC considers that it should be possible to achieve zero-carbon emissions from new non-domestic buildings by 2020 if a timeframe is agreed along the same lines as that set for new residential buildings. The report also draws attention to the fact that it does not address the issue of carbon emissions from existing non-domestic buildings, which are in many ways a more pressing issue, given that the existing building stock is much greater than new builds. The Government is expected to take the recommendations and findings from the report and develop policy and proposals to address carbon emissions and achieve the overall emission reduction targets set for the UK in the Climate Change Bill.

The Department for Communities and Local Government has launched a consultation on the length of time for which Energy Performance Certificates should be valid for private marketed sales of dwellings.Responses are requested by 29 February 2008.

In October 2007, the Department for Communities and Local Government (DCLG) announced a revised timetable for the introduction of energy performance certificates (EPCs) and display energy certificates (DECs) (see Legal update, Timetable for EPCs changed?). The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendment No. 2) Regulations 2007, which give effect to the revised timetable, were made on 22 November 2007 and will come into force on 31 December 2007. For details of the revised timetable, see Practice note, Energy performance certificates: Timetable for commencement.

New regulations (the Regulations) have been published which apply to expenditure by residential landlords on "green" energy-saving measures that will qualify for tax relief. The relief was extended by section 18(3) of the Finance Act 2007 to expenditure incurred up until 2015. The Regulations extend the class of qualifying expenditure to include floor insulation. They also contain further restrictions on deductions and apportionment of the relief. We are in the process of updating the Practice note, Tax savings for energy-saving measures in homes. The Regulations come into force on 6 December 2007 but they apply to expenditure incurred from 6 April 2007.Source: The Energy-Saving Items (Income Tax) Regulations 2007 and Explanatory Memorandum to The Energy-Saving Items (Income Tax) Regulations 2007.

In October 2007, BERR and the Renewables Energy Board published an Onshore Wind Energy Planning Conditions Guidance Note which they hope will provide support to those involved in the planning process by providing a generic set of specimen planning conditions.

Energy performance certificates (EPCs) are being introduced in phases for different types of properties. The timetable for their introduction is set out in the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007(as amended) (see Practice note, Energy performance certificates: Timetable for commencement). A revised timetable has been published on the DCLG website: When the measures are being introduced. The main changes are: From 6 April 2008, EPCs will be required for the construction, sale or rent of commercial properties over 10,000 square metres, not 500 square metres.From 1 July 2008, EPCs will be required for the construction, sale or rent of commercial properties over 2,500 square metres. More information on this will follow shortly.

The Greater London Authority Act 2007 (GLAA 2007) received Royal Assent on 23 October 2007. The GLAA 2007 contains a number of provisions, which cover a wide range of issues relating to Greater London, including housing, planning, transport and the environment.The GLAA 2007 comes into effect piecemeal, with most of its provisions to come into force on days to be appointed by the Secretary of State.

The Environment Agency (EA) has developed a "carbon footprint calculator" which allows it to measure the amount of carbon dioxide generated by its construction projects. From November 2007, the EA will require its contractors to use the tool to reduce the carbon footprint of all its major construction projects. The EA spends around £200 million a year on construction projects (mainly flood defences), which accounts for 3% of the civil engineering sector. The EA has now made its carbon footprint calculator available to other construction companies, consultants and Government bodies (see EA press release). The calculator enables carbon dioxide reductions to be built in at the planning and design stages of a construction project. It can also be used for auditing finished projects. For example, it can be used to estimate the amount of carbon dioxide emitted by: The raw materials used. The transportation of raw materials and employee travel. Site activities, such as earthworks and excavation. The tool allows comparison of waste management options and savings to be made. This will be particularly useful for larger construction projects which will be required to prepare Site Waste Management Plans from 2008 (see Legal update, Compulsory Site Waste Management Plans: next steps). The Carbon Trust recently launched a carbon footprint calculator for all business sectors (see Legal update, Guide on how to calculate your carbon footprint).

The Department for Communities and Local Government has published revised technical guidance to the Code for Sustainable Homes, which indicated that when deciding whether a home is "zero carbon" you can only take account of renewable energy produced on-site (see DCLG press release).The move has angered the housing and construction industries which have been working on the assumption that zero carbon homes could be powered using on-site or off-site renewable energy, such as large offshore and remote onshore wind farms (see Zero-carbon homes shock as national grid energy barred, Building.co.uk, 5 October 2007). They have argued that, if the energy is produced using renewables, it is irrelevant where it is produced.The housing and construction industries are also concerned that the definition of a zero carbon home in the Code for Sustainable Homes will be different from that contained in the forthcoming regulations on stamp duty tax (SDLT) relief for zero carbon homes.HM Revenue & Customs has confirmed to PLC Environment that it intends to lay the regulations in Parliament later this week. The regulations were expected to have been laid by now with the new SDLT relief applying to sales of zero carbon homes from 1 October 2007, but the draft regulations have had to be revised in response to recent feedback. HMRC has indicated that the revised regulations will still apply to sales from 1 October 2007. PLC will alert subscribers once the final regulations become availabl

The Carbon Trust has published a guide for businesses and other organisations which explains what a "carbon footprint" is and how to calculate this. The Carbon Trust is a private company which was set up by the Government to advise businesses, public authorities and other organisations on how to reduce their carbon dioxide emissions. A "carbon footprint" is the amount of carbon dioxide a business or organisation generates. Carbon dioxide emissions are usually associated with power plants and industrial activities but all businesses and other organisations (such as offices, retailers, banks, insurers, hospitals, schools and local authorities) emit carbon dioxide, whether directly or indirectly. For example, offices need electricity for lighting and to power computers and other equipment. So the more electricity they consume, the more electricity needs to be generated to meet that demand. And since most power plants use coal or gas, they are a significant source of carbon dioxide emissions, which in turn is the main culprit in climate change. A large number of businesses and organisations (including law firms) have announced that they are planning to reduce their carbon footprint and in some cases become "carbon neutral". It is therefore important that businesses and organisations use similar methodologies when calculating their carbon footprints so as to make it easier to compare them. For further information on carbon neutrality, footprints and offsets, see Prac

The Department for Communities and Local Government is consulting on proposals to extend the period in which local authorities can bring a prosecution for breaches of building regulations.

The Welsh Assembly Government has launched a consultation on proposals to reform certain aspects of the planning system in Wales. The aim is to make it easier for householders to install energy-generating equipment, by removing the need to obtain planning permission for certain types of works.The consultation deals with Wales only; a separate consultation was carried out for England earlier in the year (see Legal update, Consultation on permitted development rights for microgeneration equipment).The consultation period expires on 14 November 2007.

On 23 July 2007, the Department for Communities and Local Government and the Department for Environment, Food and Rural Affairs published a joint policy statement outlining how they propose to set minimum standards for water efficiency in new buildings (including homes and the workplace).

In April 2007, the Code for Sustainable Homes (the Code) was introduced as a voluntary standard in England. It works by awarding new homes a 1 to 6 star rating based upon their performance against nine sustainability criteria (including energy efficiency) and gives an indication of the impact of the new home on the environment. At the time the Code was introduced, the Department for Communities and Local Government (DCLG) also consulted on the principle of making the Code mandatory. This proposal was favourably received and the DCLG has issued a further consultation looking at how a mandatory rating system might work. The consultation period ends on 23 October 2007.

Traditionally, the Government's intentions for a year's legislation were announced in the Queen's Speech at the State Opening of Parliament. However, in the interests of open government and public debate, the Prime Minister made a speech on 11 July 2007, in which he outlined a number of proposals for legislation, some of will be of interest to those involved in property.The proposals include a number of bills dealing with housing, planning, transport and energy.

Certain obligations in the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 have come into force.

The Royal Institution of Chartered Surveyors has published a report Transforming Existing Buildings: The Green Challenge, which considers various options for making existing commercial buildings more energy efficient.

The Department for Communities and Local Government has consulted on proposals to facilitate the introduction of home information packs, and to promote the role of the energy performance certificate, which is a mandatory component of them.

The government is consulting on a package of measures aimed at ensuring that, by 2016, all new homes are zero carbon homes. The package of measures includes a: Draft Code for Sustainable Homes. Timetable for changes to the Building Regulations. Draft Planning Policy Statement on Climate Change. The deadline for responses is 8 March 2007.

New Practice notes on energy efficiency in buildings have been added to PLC Property. The Practice notes look at EU and UK measures aimed at encouraging increased energy efficiency in buildings.PLC Property welcomes comments and suggestions on the new Practice notes. Please send to: propertyfeedback@practicallaw.com.To view a list of all new content added to PLC Property over the last 12 months, see PLC Property: New content.The new Practice notes are:Energy efficiency in buildings: overview.EU Energy Efficiency Action Plan.Energy Performance in Buildings Directive and energy performance certificates.Energy Efficiency Commitment.Energy End-Use Efficiency and Energy Services Directive.Tax savings for energy-saving measures in homes.

On 19 October 2006, the European Commission published an EU Energy Efficiency Action Plan, which was then adopted by the Council on 9 March 2007, as part of the EU's wider energy policy.