Community Benefit Policy Agreed

6th March 2011

The Highland Council has agreed changes to the way communities will benefit from renewable energy developments.

For onshore developments, the Council is adopting a three-tier approach to community benefit. This will be on the basis of a floor level of £100,000 per year whereby all benefit will accrue at a local level. Thereafter any benefit above £100,000 per year will accrue on the basis of 55% local, 30% at a locality level and 15% at a Pan-Highland level.

For example, a Community Benefit Fund in the sum of £250,000 per annum would give rise to benefits as follows:-

•The local community would keep all of the benefit up to the floor level of £100,000;
•The local community - whether that is one or more community council area - would gain a further 55% of the remaining £150,000, that is £82,500;
•This would give the local communities a total benefit of £182,500 - that is two thirds of the original benefit sum;
•The locality - whether one or more Council wards - would be entitled to a share of 30% of the remaining £150,000, that is £45,000;
•The Pan-Highland Fund would be entitled to 15% of the remaining £150,000 that is £22,500.
The Council also agreed that geographical factors would be taken into account in deciding the "share" of benefit that would accrue to the local and intermediate tiers. These would include proximity to the site, visual impact, construction impact, community use of the site and the number of residents involved.

For offshore renewable energy developments, the Council is adopting a two tier approach, generally on the basis of 80% per year accruing to a Pan-Highland Fund and 20% accruing to coastal communities, all taking into account possible sharing of benefit with other authority areas. The split reflects a more widespread impact on onshore communities.

The level of payments paid by developers should be increased to £5,000 per megawatt of installed capacity. All payments should be index linked. The Council has agreed to seek to enter into agreements with developers in advance and then seek to become involved in individual negotiations on behalf of communities. It will always be open to some communities to strike their own deals.

The full list of recommendations agreed by the Council are as follows: -

a) That any change in the Council's approach to community benefit will not be retrospective and will apply only to those negotiations that begin following on from the adoption by the Council of any new policy and guidance.
b) That the Council invite the Crown Estate to set out its position on offshore renewables, in particular, those in the Pentland and Moray Firths.
c) That the Council invite developers and other appropriate bodies to make clear to the Council their position on renewable energy developments and their involvement in community benefit.
d) That the Council update its web based guidance and policy in relation to renewable energy and community benefit following on from the Council's adoption of a new policy and guidance.
e) That the Council host a series of workshops for communities and other interested parties in relation to community benefit at early dates.
f) That an annual report on community benefit and associated issues be presented to Council.
g) That the Council agree that it will seek to encourage community benefit as appropriate from procurement exercises and other appropriate developments.
h) That the Council adopt a three tier approach to community benefit deriving from onshore renewable energy and other appropriate developments. This to be on the basis of a floor level of £100,000 per annum whereby all benefit will accrue at a local level. Thereafter any benefit above £100,000 per year would accrue on the basis of 55% local, 30% at a locality level and 15% at a Pan-Highland level. This arrangement would not be cumulative - that is it will apply on an individual development basis only.
i) That the Council adopt a two tier approach to the allocation of funds from offshore renewable energy developments generally on the basis of 80% accruing to Pan-Highland Fund and 20% accruing to coastal communities, all taking into account possible sharing of benefit with other authority areas.
j) That the post of Planning Gain Negotiator also take on the negotiation of Community Benefit in accordance with the final policy and guidance approved by the Council.
k) That the Community Benefit Working Group continues in existence, with a broadened remit to cover all matters related to Community Benefit and associated matters such as developments in renewable energy generally and the involvement of the Council and communities in taking forward renewable energy projects at their own hands.
l) That the Council instruct officers to bring forward a report setting out options for the management of community benefit funds.
m) That the arrangements for offshore community benefit be implemented following formal approval of a new policy and guidance by the Council.
n) That if the recommendations are approved, that officers draw up formal policy and guidance for approval and adoption at a future meeting of the Council.