Select Committee on Environmental Audit Minutes of Evidence


Memorandum submitted by the Environment Agency

SUMMARY

  The residential sector consumes significant levels of resources. Homes use two-thirds of water put into the public supply network. They use 30% of energy and are responsible for 24% of greenhouse gas emissions. We need to improve the environmental performance of buildings and neighbourhoods. In particular:

    —  the quality of new housing, particularly the standard of environmental performance, must be part of any proposals for accelerating household growth;

    —  the Government must deliver its commitment to the introduction of minimum water efficiency standards;

    —  the environmental performance of existing housing stock must be addressed;

    —  buildings need to be located in the right place. We welcome consultation on draft PPS25 Development and Flood Risk;

    —  we need long term planning and funding for necessary environmental infrastructure to support housing development;

    —  we look forward to the public consultation and forthcoming delivery of the Code for Sustainable Buildings by April 2006. The Code for Sustainable Buildings is one part of the package necessary to deliver sustainable communities; and

    —  fiscal measures should reward higher building quality and improved environmental performance. We would welcome incentives for industry and residents to take action.

1.  INTRODUCTION

  1.1  We are the Government's leading advisor on the environment. We work with national, regional and local government to ensure that current levels of planned housing growth are sustainable and that the environmental risks of development are clearly understood and addressed.

  1.2  Through the planning process we:

    —  contribute to national, regional and local planning frameworks to ensure planning policies are in place to protect the environment, mitigate impacts and increase the potential for environmental improvement;

    —  contribute to the sustainability appraisal of planning policies, including their Strategic Environmental Assessment;

    —  highlight to local authorities the environmental risk—including flood risk—of individual planning applications; and

    —  provide guidance to developers on avoiding and reducing the environmental impact of their proposals and on maximising environmental benefits.

  1.3  We also advise the Government on the adequacy of Water Company Water Resources Plans, regulate the treatment of contaminated land and the treatment and disposal of waste, and are responsible for the strategic planning, management and delivery of flood risk infrastructure.

2.  INQUIRY ISSUES

The Code for Sustainable Buildings—can a voluntary Code possibly deliver the degree of change needed?

  2.1  The Code alone will not achieve the degree of change needed. If housing growth is to be sustainable, the impacts on critical environmental factors such as water supply, sewerage systems, waste disposal facilities, greenhouse gas emissions, biodiversity and flood risk must be identified and addressed as an integral part of delivery plans. The Government has acknowledged this in its manifesto. All these factors fall outside the scope of the proposed code.

  2.2  However the code is an integral part of a necessary package of measures. It will:

    —  deliver high (above Building Regulations) standards for all new homes funded through public private partnerships;

    —  signal to industry the direction Building Regulations are taking;

    —  make the industry more familiar with innovative approaches and techniques.

  2.3  Alongside the Code there should be :

    —  improved standards of resource efficiency for all new and existing homes;

    —  arrangements put in place to ensure houses are not built in areas of environmental risk;

    —  the timely provision of the necessary associated infrastructure.

Building Standards

  2.4  The residential sector consumes significant levels of resources. Homes use two-thirds of water put into the public supply network. They use 30% of energy and are responsible for 24% of greenhouse gas emissions. We need improved minimum standards of building delivered nationally through regulation to achieve the level of change needed.

  2.5  The demand for water created by new and existing homes could be substantially reduced through improved standards of water efficiency. Our work shows that water efficiencies of up to 25% per household can be gained by ensuring pipework, fittings and appliances maintain standards of performance and use less water. The cost of these efficiencies is modest. In some cases the cost of efficient units is less than conventional or standard items.

  2.6  High water efficiency standards applied to all the one million new homes currently planned for south east England could save more than 60 million litres a day—enough to supply water for 500,000 people. But voluntary initiatives will not create the step change necessary. We urgently need the review of Building Regulations (Part G) to deliver national minimum standards for water conservation in all new homes. The code should stretch standards, signpost likely future changes to Building Regulations, and encourage innovation. It should, as the Government intends, be the minimum required for all publicly funded housing.

  2.7  We need to encourage local authorities to apply code standards to private homes. We are currently unsure how the Government intends to take this forward.

  2.8  We also need high standards for flood resilience and resistance in homes that are vulnerable to flooding. This means they should be:

    —  designed to manage flood water on the site, for example using parks and green spaces for temporary storage;

    —  safe for occupation and use during flood, with safe access in and out for occupiers and emergency services, including if defences were to overtop or fail;

    —  flood resilient (for example use of stone floors that do not need to be replaced after a flood) or resistant (that is, where water is prevented from entering the building);

    —  not dependent primarily upon the construction of new, or improvement of existing, flood defences to manage the risk;

    —  where technically possible, use sustainable drainage systems to reduce risks.

  2.9  We are currently working with ODPM on how to establish flood resilience in Building Regulations.

Adequate enforcement

  2.10  Over 30% of new homes do not comply with the Building Regulations. To achieve the required resource efficiencies the Regulations must be adequately enforced.

Retrofitting

  2.11  About 75% of the current housing stock will be around in 2050. A reduction in the environmental impact of existing homes could release some "environmental headroom" for new houses. For example, improving the efficiency of water use in the existing housing stock could offset the demand for water that is created by new housing. Our preliminary research shows that retrofitting existing housing with water efficient devices could provide around 40% of the extra demand.

  2.12  The majority of households could save up to one quarter of their current water use—between 8% and 16% by simply retrofitting toilets. Houses over five years old are likely to present highest water efficiency opportunities.

  2.13  In September, ODPM Ministers announced a review of incentives for improving the efficiency of existing stock. This review will cover both water and energy efficiency. We look to this study to provide clear recommendations to encourage residents to take action to improve the environmental efficiency of their homes.

Location

  2.14  Depending on where they are located and the standards to which they are built, planned new housing has implications for water resources, water quality, and flood risk, as well as waste management and air quality.

  2.15  Flood risk is a critical location issue that needs to be addressed. Over five million people and two million homes and businesses are currently at risk from flooding in England and Wales. Recent floods, storms and drought have shown how vulnerable we are to the weather. The floods this summer in Europe and the events in New Orleans illustrate this very well.

  2.16  We have made significant progress in flood risk management through increased investment, both in defences and flood warning, and in mapping the risk of flooding, but the additional risks and costs could be reduced if new building in high flood risk areas is carefully managed. The Government's Foresight Future Flooding report highlighted that, in the face of climate change, the risk of flooding over the next 30-100 years increases significantly, and the damage could be very costly if flood management policies remain unchanged. It also concluded effective land-use planning to manage flood risk could reduce the aggregate cost of flood defences from £52 billion to £22 billion until the 2080s.

  2.17  Research by the Association of British Insurers has shown that one-third of designated development sites (up to 108,000 homes) in the Government's south east growth areas are located in the floodplain, and 10,000 properties may be built in areas with significant flood risk.[8] Spatial planning must direct homes to places where exposure to environmental risk is least. The review of PPG25 on Development and Flood Risk (and the intention to give clear advice to local authorities on the need to avoid development in areas of flood risk) is therefore welcome.

  2.18  Spatial planning should also flag up where new facilities—like waste handling facilities and sewage treatment works are needed and signal where these types of infrastructure are a precondition of housing growth (see section D on infrastructure).

Is the Government doing enough to promote the code, with the industry and the general public, ahead of its imminent introduction early in 2006?

  2.19  It is unfortunate that there has been a delay in the publication of the draft code for consultation. The construction industry would have benefited from an early indication of the scope of the code and how it will work in practice. However, once it is in place the code will be a pre-condition of any housing development involving public funds so the construction industry will have to respond quickly.

  2.20 If the code is to have wider application, and we believe that it should, it will need to be actively promoted by national, regional and local government and be underpinned by incentives or made a planning requirements. Developers have, in the past, indicated that they are unlikely to adopt voluntary standards. Their preference is for an unambiguous regulatory floor.

Should the Government be introducing fiscal measures to reward higher building quality and greater environmental performance?

  2.21  Yes. There is a place for fiscal measures alongside other instruments (for example information, such as labelling schemes and the Home Information Pack, regulation and standards, the code, and Government led procurement) to reward and encourage better environmental design. Fiscal measures, such as council tax or VAT reductions, could drive up standards, particularly in existing housing. Government should investigate the creation of incentives for investment in technologies and integrated approaches to environmental infrastructure that deliver multiple benefits. These could include grants, loans or fiscal incentives such as Enhanced Capital Allowances.

  2.22  The affordability of a home includes both its initial cost and its running costs. Higher environmental standards in new homes will make houses more affordable, and more comfortable, to live in, particularly for those on lower incomes. Our research has shown that a house designed to be 25 per cent less wasteful in water, energy and waste delivers savings of £138/year to run. Even if the householder were to pay the full additional cost of these measures (about £800) they would get their money back in six years. With an appropriate fiscal incentive the householder will be repaid in less time.

Infrastructure—is the Government doing enough to secure sufficient funds for the timely provision of infrastructure?

  2.23  Accelerated development in the south and east of England, in particular, will stretch the capability of some environmental infrastructure to cope. But a great deal more of the nation's existing environmental infrastructure is also in need of investment. There has been a historic legacy of under investment and maintenance in public and private sewerage infrastructure resulting in leakage, collapse, overloading and sewer flooding. The need to reduce waste going to landfill requires waste minimisation and major investment in alternative waste treatment.

  2.24 The Government needs to secure sustained investment, from private and public sources, for the environmental infrastructure to overcome the predicted environmental impacts, climate change and deliver good basic services in water, waste and flood protection. This investment needs to be planned ahead and in some cases will need to be a precondition of growth.

  2.25 Tomorrow's infrastructure may look very different to yesterday's. For example smaller scale, more decentralised facilities that provide multiple benefits. Funding and institutions need to be more flexible to support innovation.

Water quality, sewerage and waste water

  2.26  Concentrated housing growth in some places will mean that the capacity of sewers will have to be extended if residents are to benefit from acceptable levels of waste and foul water drainage and we are to meet current and future water quality standards.

  2.27  We estimated that up to 80 sewage treatment works will need to be upgraded in the south east to service the demand from existing and new housing being discussed in the draft south east plan. This figure could be much higher if there is a step change in housing growth to meet affordability goals.

  2.28  Demand management can reduce the need for capital investment in costly infrastructure. For example, the use of Sustainable Drainage Systems (SUDs) can reduce the need for more traditional forms of wastewater facilities.

Waste

  2.29  Building new homes creates waste. We estimate that plans for new homes in the south and east of England could result in between 10.12 and 13.33 million tonnes a year of construction demolition and excavation waste. Up to 20% of this could be hazardous waste. We estimate that up to seven incinerators or 50 waste treatment facilities will be required to deal with waste from new homes in the South and East of the country.

  2.30  We need to drive down waste arising from construction through: better on-site sorting, storage and management of materials and waste; re-use of excavated inert waste; on-site remediation; and the use of sustainable construction techniques.

Water resources

  2.31  For water resources, traditional resource side options, such as reservoirs, are generally expensive, inflexible and have high social, economical and environmental costs. Large infrastructure projects may take up to 20 years to develop—committing customers and society in general to an ongoing high energy/cost solution.

  2.32  Some new reservoirs may prove to be necessary. (We currently think four or five in the east and south east in the next 15 years.) But this must be balanced by lower cost, flexible opportunities to secure more efficient use of the existing water resource. Demand management is key to establishing an appropriate mix of schemes and should mitigate or at least defer the need to develop some new resources. This twin track approach is essential to balance the social, environmental and economic needs of housing growth. It will depend on:

    —  more rapid household metering penetration;

    —  higher water efficiency standards in new housing stock;

    —  the development of incentives to encourage retrofit of existing stock;

    —  more public awareness;

    —  water labelling of fixtures, fittings and appliances;

    —  market transformation strategies to accelerate adoption of more efficient products in the do-it-yourself and retrofit markets.

Energy

  2.33  Alongside energy efficiency, local and small-scale generation of low carbon heat and power will play a far larger part in meeting the needs of communities in future. Building-integrated systems and local sources of heat and power can reduce overall emissions of greenhouse gases, contribute to security of supply, help provide affordable warmth, and promote competition in the energy economy. We support adoption of microgeneration in ways that are sensitive to the local environment as an obvious component of sustainable building and communities.

Funding

  2.34  New development puts pressure on existing infrastructure and may require new infrastructure to be built. While better demand management (for example through better water efficiency) can reduce the levels of infrastructure that will be required, we are concerned that adequate funding for environmental infrastructure may not be forthcoming. Funding for these types of infrastructure is complex. There will be a mix of private and public investment, funded through consumer charges, developer contributions and general taxation. Existing charging structures for water, flood risk management and waste mean that the homeowner or occupier does not pay the full costs of these pressures. Estimates for infrastructure per house are around £35,000-£45,000. In some places, like the Thames Gateway, it could be as high as £65,000 per house. We believe that there is a case for developers to contribute more in some cases.

  2.35  The proposed Planning Gain Supplement is one vehicle that could be used to meet some of these costs. Whatever form of planning contribution is created in the future (for example Section 106, revised section 106, Planning Gain Supplement, Development Tariff etc) it should provide sufficient funds for essential environmental infrastructure. We need better recognition of the role of the developer in designing out the need for expensive and unsustainable infrastructure, especially for flood defences, and take into account the impacts of climate change over the lifetime of the development.

Are the water companies doing enough to secure the supply of water resources to the four Growth Areas? And is concern about security of water supply, in the South East of England in particular, a valid one or simply a knee jerk reaction to a few hot, dry summers?

  2.36  Our research shows that Water Companies have underestimated by 20% the level of housing growth in their water resources plans. This is not an immediate problem but will need to be addressed in future strategic planning cycles. Government policy is for water resources to be met through a combination of demand management and investment in new resources.

  2.37  Southern England has just had its driest ten months since 1976. River flows and groundwater levels are low across southern England, causing environmental problems such as distressed fish, damage to wetland bird breeding grounds, algal blooms and loss of habitats. Water companies plan for droughts like this, but the high population density and the low rainfall mean that the water available for each person in south-east England is lower than in many parts of Mediterranean Europe.

  2.38  We are concerned about continued security of water supply in south-east England. This is the driest part of the country. The water environment is particularly valuable: chalk streams and rivers are rare and some of the best in Europe are in south-east England. Population is growing and individual demand for water is also increasing. This adds to the pressure on the water environment in areas where there is little additional water available for abstraction.

  2.39  There are options for further water resource development in the south east. Water companies have identified sites where new reservoirs could be built or existing reservoirs could be extended. There is also scope for more water to be transferred from other parts of the country. However, all of these developments are costly and have a detrimental effect on the environment. They also take between 10 and 20 years to construct.

  2.40  Water resources can be made available for growth areas in the south east, but at a cost. We are concerned to make sure that this is properly planned so that any new development has the lowest possible environmental and social impact. Managing demand in new and existing homes and businesses can help to minimise these effects and make the best use of the limited volume of water we have.

  2.41  Metering can make a significant contribution to the management of water resources in England and Wales. It raises customers' awareness of how much water they are using and, providing appropriate tariffs are charged, encourages them to reduce their water use. Emerging research suggests metering can reduce demand by between 8% and 21%.[9] Suitable safeguards are required to protect the vulnerable groups.

  2.42  All new properties are metered and water companies have several opportunities to meter existing households. But there are large differences in metering coverage between water companies—from 5% to 60%. The current annual rate of progress in meter installation ranges from 0.79% (Thames Water) to 4.95% (South West Water). Five companies project metering coverage of less than 50% by 2030. Two of these are in the south of England. We need to encourage more rapid and widespread metering of household water supplies, with more sophisticated tariffs.

Is there sufficient effort being made by the Government, the Environment Agency and the water companies to educate people about water efficiency?

  2.43  The Environment Agency is actively engaged in the Government's Water Efficiency Group, which has been established to take forward and deliver water efficiency in homes and businesses. In addition we are engaged with:

    —  Public awareness campaigns. As part of our drought plans, we work with others on public awareness campaigns on water efficiency.

    —  Water Efficiency Awards. The fourth Environment Agency Water Efficiency Awards were held in March 2005. Sectors covered include leisure and tourism, building and construction, industry & business, public sector, education and community work.

    —  World Environment Day. The Environment Agency has promoted United Nations World Environment Day for 2004 and 2005. Saving water has been a major feature of the campaign in both years and is certain to be a major issue in 2006 too. We estimate that 114 million litres of water would be saved directly from the promises made.

3.  CONCLUSIONS

  3.1  We need improved the environmental performance of buildings and neighbourhoods. In particular:

    —  the quality of new housing, particularly the standard of environmental performance, must be part of any proposals for accelerating household growth;

    —  the Government must deliver its commitment to review Part G of the Building Regulations and the introduction of minimum water efficiency standards;

    —  we must tackle the environmental performance of existing housing stock;

    —  buildings need to be located in the right place. We welcome consultation on draft PPS25 Development and Flood Risk;

    —  we need long term planning and funding for necessary environmental infrastructure to support housing development;

    —  we look forward to the public consultation and forthcoming delivery of the Code for Sustainable Buildings by April 2006. The Code for Sustainable Buildings is one part of the package necessary to deliver sustainable communities but it is not enough on its own;

    —  fiscal measures should reward higher building quality and improved environmental performance. We would welcome incentives for industry and residents to take action.

November 2005







8   ABI, Making Communities Sustainable p 7 http://www.abi.org.uk/display/File/Child/554/Making-Communities-Sustainable-housingsummary.pdf Back

9   Impact effect of metering-UK evidence summary (draft). Herrington, 2005. Back


 
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