Overview of the Heat in Buildings Bill Proposals
Overview of the Heat in Buildings Bill Proposals
On the 28th November 2023, the long-awaited consultation on a prospective Heat in Buildings Bill was published by the Scottish Government. This blog summarises the details of those proposals.
The Proposals
Decarbonising heat is widely acknowledged as one of the most challenging aspects of reaching net zero. The Scottish Government's aim is for nearly all properties to undergo some form of transition, with net zero scenarios aiming for minimal to no emissions from heating buildings.
The Bill would propose a new Heat in Buildings Standard. The standard consists of two broad types of changes:
- Minimum energy efficiency standards (MEES): achieved primarily by improving the insultation of a property.
- Clean heating systems: achieved by installing a clean heating system such as a heat pump, instead of a gas or oil boiler.
This table sets out the proposed dates for compliance, and specific details of what might be required by those dates:
| Type of Change | Policy Areas | Proposed Date |
|---|---|---|
| Minimum energy efficiency standard: minimum of EPC C or meeting a proposed set of key energy efficiency measure |
For owner-occupied homes |
2033 (backstop date) |
| For private rented homes | 2028 (backstop date) | |
| For non-domestic buildings | No requirements | |
| Clean heating systems: ban on polluting heating which means fossil fuel boilers, and may also include bioenergy | Oil and gas boilers to clean heating systems in all existing buildings | 2028 (earliest possible trigger date) 2045 (backstop date) |
| Bioenergy to clean heating systems in all existing buildings | “There will be circumstances where these remain permissible” for an undefined period beyond 2045. |
Secondary legislation has already been passed that means from 1 April 2024 new buildings (and conversions) that apply for a building warrant will be required to have a zero direct emission heating system. New developments applying for a building warrant before 1st April 2024 may continue to install direct emission heating systems for as long as the issued building warrant remains valid.
Basis for the proposals
Overall, the proposed key dates for MEES remain broadly the same as they were in the Heat in Buildings Strategy (HiBS) 2021. The proposals do, however, set out a different approach to defining the minimum standard.
In the HiBS, it was envisaged that a level equivalent to Energy Performance Certificate (EPC) C would be the minimum. The consultation, however, includes an “equivalent” measure comprising a list of six energy efficiency measures to be fitted where feasible: 207mm loft insulation; cavity wall insulation (CWI); draught proofing; heating controls; hot water cylinder insulation; and floor insulation. In their report to the Scottish Government the BRE Group stated that if all of these were installed the majority of Scottish homes (around 66%) would reach a ‘good level of energy efficiency’. It is also proposed that owner-occupied homes that have clean heating systems installed by 2033 will not have to adhere to the MEES. Private rented homes, however, must adhere to MEES even if the property already has a clean heating system by 2028.
Regarding clean heating systems, the backstop date for in all properties is 2045, apart from public non-domestic buildings which have a longstop date of the end of 2038.
Given that the proposals are likely to impact properties that are heated by bioenergy including biomass, or indeed off-grid properties that would potentially be better served by biomass as a low emission alternative to oil or LPG, the consultation paper has a notable absence of explanation for incorporating bioenergy within the term “polluting heating”. The lack of understanding of this form of energy is evident in the Ministerial Forward to the consultation paper, where the Minister loosely refers to “other carbon-based fuel” in his definition of fossil-based fuel.
The proposal for the property purchase being a trigger for change to a clean heating system resulted from the Scottish Government rationalising that they required an alternative mechanism to force change because they lacked the powers to restrict the sale of replacement fossil fuel boilers. The proposal includes a grace period, to have the new system installed, and places no new obligations on sellers.
An alternative possible point for triggering the need to install a clean heating system is when the existing heating system is replaced. This has not been ruled out by the Ministers and it is likely that a mechanism to allow such a trigger, should it be considered necessary, will be included in the Bill.
Cost cap, exemptions, and extensions
The proposals encompass potentially significant mitigating elements that could impact the timing or scope of change. There is a possibility of implementing a cost cap—setting the maximum expenditure property owners must incur to meet the Heat in Buildings Standard. Various options for designing the cap are presented, such as a 'flat cap' (a fixed amount for all properties), a 'size-based cap' (varying by floor area), or a 'purchase price-based cap' (varying by property value). The consultation document assesses the advantages and disadvantages of these options.
Additionally, there is discussion about potential exemptions and extensions to meet the standard, or the requirement for individuals to adhere to a modified version of the standard tailored to their building's characteristics or unique circumstances. Extensions may be warranted for residents in properties where clean heating options are currently limited.
Heat Networks
Heat networks, for the purposes of this consultation paper, are referenced in a way that implies they are an urban phenomenon. They have been identified as a key possible means of providing zero carbon heat and for this reason the Ministers have already compelled local authorities to identify Heat Network Zones.
Heat Network Zones will typically be where heat networks are thought most feasible, and will be designated by Local Heat and Energy Efficiency Strategies (LHEES).
It is proposed that the Bill would ‘provide local authorities and the Scottish Ministers with powers to require buildings within a Heat Network Zone to end their use of polluting heating systems (by a certain date, and with a minimum notice period).’
If a property is in a Heat Network Zone, then the requirements for a clean heating system after property purchase will not apply (as a means of encouraging connection to the potential heat network).
Compliance and enforcement
It is proposed that the EPC system could be used to demonstrate that changes have been made, potentially alongside some form of random property checks. Appropriate monitoring and enforcement bodies are not identified in the paper.
Properties that do not meet the MEES by the backstop date will not be prohibited from sale. However, properties in the private rented sector which don’t meet the MEES by the end of 2028 will ‘not be allowed to be leased to a new tenant’. It is proposed that civil penalties would be applied to private landlords for leasing properties that don’t meet MEES. However, initially such penalties are not intended to be proposed for other property owners.
Legislative timetable
While the Bill would provide the Scottish Government with the powers to regulate for the introduction of clean heating systems and MEES, secondary legislation is very likely to be used to introduce many of the actual dates and rules. At the end of the consultation, it states that there is the intention to pass the Heat in Buildings Bill by the end of this term of the Scottish Parliament (i.e. by May 2026) and it is understood that specific dates for when the new laws would apply will be considered when the Bill goes through each stage.
It is also worth noting that although the Bill might be passed during this parliamentary session, there remains the possibility that the legislation that brings forward the secondary legislation will not be enacted within the same session.
Scottish Land & Estate’s response to this consultation can be found in the document library on this website.
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