How long after lodging an Action Plan must a DEC be lodged?

If a building owner is intending to defer the Action Plan measures then this may be done by loding an annual Display Energy Certificate (DEC). The first DEC must be lodged within 28 days of loding the Action Plan.

What type of transactions are exempt from Action Plans?

What type of transactions are exempt from Action Plans?

Action Plans are required in addition to an EPC where a building is to be sold or when the building is to be leased. An Action Plan is not required if the transaction is a lease renewal with the same tenant, for a short term lease where the building has been vacant for in excess of 36 weeks prior to the short term lease.

This information can be found in The Assessment of Energy Performance of Non-Domestic Buildings (Scotland) Regulations 2016

Part 2, Section 5, Paragraph 5

 (5) In this regulation—

“exempt transaction” means—
(a)the sale or lease of a building or building unit at any time before the construction of that building or building unit has been completed;
(b)the lease of a building or building unit—
(i)on a short term lease; and
(ii)where the building or building unit has not been let by the owner during the period of 36 weeks immediately preceding the period of lease under that short term lease; or
(c)the renewal of an existing lease with the same tenant; and
“short term lease” means a lease for a period of not more than 16 weeks and which does not include an option, right or obligation to extend the period of lease for a total period of longer than 16 weeks.

Is a building subject to the Section 63 regulations when it has been improved through a Green Deal measures?

A building that has been improved through Green Deal measures is not subject to Section 63 regulations. However if you have a non-domestic building that is subject to Green Deal then please tell us.

Is a property to be sold or rented to a new tenant subject to Section 63?

Yes. A Property to be sold or rented to a new tenant is subject to Section 63 regulations and an Action Plan is required.

Are buildings constructed in accordance with a building warrant on or after 4 March 2002 subject to S63?

If a building is constructed in accordance with a building warrant applied for on or after 4 March 2002 then the building will require an EPC on sale or let but will be exempt from the Section 63 regulations.

Why does the UK have energy efficiency regulations in buildings?

Background to energy efficiency for buildings in the UK

Energy Efficiency regulations of buildings in the UK came into force on 4 January 2003. The objective is to promote improvement of the energy performance of buildings and to reduce the amount of carbon produced as a result of their energy use. 

Buildings account for 37% of the total greenhouse gases in the UK. Reducing energy consumption and using energy from renewable sources are of paramount importance in reducing UK energy dependency and greenhouse gas emissions.

What are the differences between Scottish and English minimum energy regulations?

Differences between English and Scottish minimum regulations

It is important to note that these Scottish requirements are different from the regulations to be introduced in England and Wales. After autumn 2018 buildings in England or Wales being marketed for sale or to let will be required to meet a minimum EPC rating of an English E before they can be legally marketed for sale or let. It should be remembered that an English E is often easier to achieve than a Scottish E as the rating system is different.

Who is responsible for non-compliance of an Action Plan

Enforcement of Action Plans

Every local authority is an enforcement authority for the purposes of these Regulations and it is the duty of each enforcement authority to enforce these Regulations in its area. EPCs, Section 63 Action Plans and Display Energy Certificates are lodged on a central database and progress can be tracked by the Scottish Government. A penalty charge notice applies for non-compliance.

Who is required to take action in relation to an Action Plan?

Requirement of an owner in relation to Action Plans

The regulations require 'owners' of such buildings to take steps identified by such assessments. Interpretation of this will evolve and it may be that where a lease refers to the tenant being responsible for statutory regulations then they may be liable for dealing with the result of an Action Plan through improvements or carrying out an annual Display Energy Certificate (DEC).

What is the time allowed for implementing Action Plan improvement measures?

The time allowed for implementing improvement measures

The maximum permitted timescale for the improvement works is to be 42 months from date of the action plan being issued. The energy performance data relating to the action plan must be lodged with the register before the action plan is made available to a prospective buyer or a prospective tenant.

What will the Action Plan include?

The EPC Action Plan and Improvement Measures

Where a relevant non-domestic building or building unit is to be sold or let the owner must make a copy of the Action Plan available in addition to the EPC. An Action Plan must include the energy performance target and the emissions target for the building or building unit, specify any identified improvement works for the building or building unit and specify the timescale for implementation.

What types of Action Plan are there?

Types of Action Plan

The two types of action plan are a Prescriptive and Alternative Action plan.

Can Action Plan measures be deferred?

How to defer measures required by an Action Plan

Measures identified in an Action Plan as requiring carried out can be deferred by reporting on operational energy ratings. An operational rating is the actual measured energy use and is reported through lodging an annual Display Energy Certificate (DEC).

What is the trigger point for a S63 Action Plan?

The Trigger for a Section 63 Action Plan

The trigger point for the section 63 part of the new legislation would be a sale or new lease. A sub-let or assignation is not considered a new lease. Section 63 exempt transactions for Action Plans means the lease of a building on a short term lease (12 weeks or less), the sale or lease of a building or building unit at any time before the construction of that building or building unit has been completed or the renewal of an existing lease with the same tenant.

What do the Section 63 regulations require?

What the Section 63 regulations require

Where the regulations apply, the owner of the building must undertake further assessment to produce an 'Action Plan'. This document identifies targets to reduce the carbon consumption and energy performance of the building and how these targets would be met through physical improvements to the property.

What buildings are exempt from Section 63?

Buildings exempt from Section 63 regulations

 Buildings with a floor area of less than 1,000 sq m.

 Properties that have met or exceed the equivalent energy standards of the 2002 Scottish building regulations. This may exempt older buildings that have had comprehensive upgrades to their HVAC and lighting.

 Temporary buildings – Intended life of 2 years or less.

 Workshops and agricultural buildings meeting the "low energy demand" rule.

 Buildings participating in the Green Deal scheme.

 Prisons and young offender institutions.

What is a Section 63 Action Plan?

A Section 63 Action Plan is a list of required work that must be carried out to a commercial building

The Action Plan is required in addition to an EPC for buildings in excess of 1,000 sq m where the building does not meet one of the exemptions.