Written answers

Wednesday, 31 March 2021

Department of Communications, Climate Action and Environment

Just Transition Fund

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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230. To ask the Minister for Communications, Climate Action and Environment the percentage of the just transition fund that has been allocated to each of the priorities in the provisional offers of funding under each of strand 1 and 2. [17126/21]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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231. To ask the Minister for Communications, Climate Action and Environment the amount of just transition funding that has been drawn down to date by enterprises or communities in the midlands following the announcement in November 2019 in relation to the fund. [17127/21]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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233. To ask the Minister for Communications, Climate Action and Environment the mechanism that was included in the evaluation process to ensure the criteria that a minimum of 5% of communities most affected, that is, the communities that suffered the job losses would be prioritised for Just Transition funding and would be allocated to each of the eight counties deemed eligible to apply. [17129/21]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 230, 231 and 233 together.

The objective of the Just Transition Fund is to support innovative projects that contribute to the economic, social and environmental sustainability of the Wider Midlands region, and which have employment and enterprise potential. The Fund has three priorities:

1. Employment and enterprise supports: to support innovation and investment proposals to generate sustainable employment in green enterprise.

2. Training supports: to retrain and reskill workers to assist local communities and businesses in the Wider Midlands to adjust to the low carbon transition.

3. Community transitioning supports: to support proactive communications with affected communities and other stakeholders in the region, establish best practice sharing networks, and assist in developing local transition plans.

My Department held a competitive call for applications to this Fund, which closed on 17 July 2020, in response to which over 100 applications were received. 16 'strand 1' projects, announced by my Department in September 2020, have concluded Funding Agreements with my Department, to a total value of €1.2m. Further provisional offers of funding to 'strand 2' projects, totalling €27.8 million, were made to 47 projects in November 2020.The percentage allocations to the three priority areas for strand 1 were:

- Priority 1: 63%

- Priority 2: 10%

- Priority 3: 27%

The funding allocations to the three priority areas under strand 2, based on the provisional offers, are:

- Priority 1: 76%

- Priority 2: 13%

- Priority 3 11%

My Department to date has issued €169,747 to Strand 1 projects. There have been no pre-funding or drawdown requests made for strand 2 projects as funding agreements have not yet been finalised for these projects.

The Just Transition Fund call has sought to ensure a geographical spread of successful projects across the eight eligible counties of the Wider Midlands region and, if a sufficient spread of applications was submitted from each of the eligible counties, seek to ensure that a minimum of 5% of the total allocated spend goes to each of the eight counties. My Department intends to publish the final funding allocations on a county-by-county basis once all funding agreements are in place.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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232. To ask the Minister for Communications, Climate Action and Environment the number of new jobs projected under strand 1 and strand 2 from those projects provisionally offered just transition funding; and if a breakdown of those jobs will be made available. [17128/21]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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234. To ask the Minister for Communications, Climate Action and Environment if the evaluation process for just transition funding included mechanisms that would avoid duplication and or support a coordinated approach to the sustainable development of the midlands and its most affected communities. [17130/21]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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235. To ask the Minister for Communications, Climate Action and Environment if the applicants for just transition funding were required to show proof of ownership and grant of planning permission for capital projects as part of the application process; and the steps that have been taken to verify submissions by applicants. [17131/21]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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237. To ask the Minister for Communications, Climate Action and Environment the number of the provisionally funded projects based on the utilisation of Bord na Móna land in which agreement had been reached with Bord na Móna for that land use in each instance. [17133/21]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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238. To ask the Minister for Communications, Climate Action and Environment if the list of each of the projects in counties impacted by the provisional offers in strand 2 were determined by the applicant or by the evaluation committee. [17134/21]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 232, 234, 235, 237 and 238 together.

My Department will be able to provide details on jobs supported by strand 1 and strand 2 projects once funding agreements are in place under both strands.

Project proposals were evaluated by a number of evaluation teams established by my Department, with relevant expertise provided by other Government Departments and Agencies. Provisional offers were made to projects which successfully met the evaluation criteria and terms and conditions set out in the published call documentation.  Further details can be found in ‘Section 6 –JTF Evaluation Criteria’ of the Department's call Information Booklet.

Key objectives of this evaluation process, based on the published evaluation criteria, included avoiding duplication of existing funding streams, with applications required to indicate if the proposed project had already secured Exchequer or EU funding; and the prioritisation of projects which could demonstrate potential added value at a regional level. 

Of the projects that have already concluded funding agreements with my Department, three projects are based on the potential utilisation of Bord na Móna land on which agreement has been reached with Bord na Móna in each instance. Two of these projects are feasibility studies and no works on Bord na Móna property are envisaged as part of these projects. The third project, Extension to Peatland Biodiversity Boardwalk 4th Final Phase, at Lullymore, County Kildare, envisages the construction of a boardwalk over Bord na Mona peatlands that have been leased to the applicant on a long-term basis.

Evidence of ownership or permission to use land, property or facilities, and relevant statutory permissions, where applicable, must be provided by projects to my Department in advance of a funding agreement being finalised. In certain cases, relevant permissions may not be required until later in a project and evidence of these having being secured will form part of the relevant project milestones, or a contractual condition, as appropriate. In each case, it is a matter for the project sponsor to secure relevant permissions for the proposed use of land, property or other facilities.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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236. To ask the Minister for Communications, Climate Action and Environment if the application by the ESB to recover the €5 million contribution to local communities on exiting West Offaly and Lough Ree power stations which was allocated to the just transition fund from the public service obligation was successful. [17132/21]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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The PSO levy has been in place since 2001 and is a charge on all electricity customers without exception.

The legal basis for the PSO levy and its method of calculation are set out in regulations made under the Electricity Regulation Act 1999 and the Public Service Obligations Order 2002 (S.I. 217 of 2002). Under this legislation, the Commission for Regulation of Utilities (CRU), the independent electricity and gas regulator, is assigned responsibility for the calculation of the levy each year and the calculation of the Levy is strictly a CRU matter. Under the Act, the CRU is directly responsible for the performance of its functions to a Joint Committee of the Oireachtas, and not to me as Minister. The Deputy may wish to note that CRU provide a dedicated email address for Oireachtas members, which enables them raise questions on matters such as the CRU PSO calculation, directly to CRU at for timely direct reply.

The CRU stated in its decision paper on the 2020/21 PSO levy, at ,  that ESB had sought to claim ex-ante costs of €25.8 for a number of cost items, including its Just Transition Costs of €5 million, and that the ESB had proposed treating these costs as actual PSO costs.  The CRU further stated on these items that it was  currently working with the Department to determine whether such costs are recoverable under the terms of the relevant State Aid Notification and the PSO legislation.  It also stated that as a decision had not yet been reached on whether these costs were permissible under these terms, the CRU was not therefore including these costs in the calculation of the 2020/21 PSO levy.

The Department informed  CRU on 23 December 2020 that the process set out under the legislation is that it is for CRU to determine the amount of additional costs incurred by ESB in fulfilling its obligations under the PSO Order and the Minister and Department cannot intervene in this process or adjudicate between ESB and CRU at any stage of the process. 

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