Section 63 Scotland
What is Section 63?
Section 63
Under Section 63 of the Climate Change (Scotland) Act 2009, the Scottish Governmentintroduced regulations to improve the energy efficiency of commercial buildings. The Act requires commercial property owners to assess the energy performance and carbon emissions of their properties, and take practical steps identified through the assessment to reduce energy use and emissions.
Foundation of Section 63
Section 63 is enforced through The Assessment of Energy Performance of Non-Domestic Buildings (Scotland) Regulations 2016, which outline when audits are needed, for example, when a building is being sold or leased, and how improvement measures must be planned and implemented.
What is the purpose of Section 63?
Section 63 is part of Scotland’s strategy to reduce greenhouse gas emissions and improve the energy efficiency of existing buildings.
Relevant Properties
Who is the legislation applicable to?
1.The regulations apply to any nondomestic building, or part thereof, with a net floor area of 1,000 m² or above that is subject to sale or leasing.
2. There are exemptions, for example: if the building already meets the energy standards equivalent to the 2002 Scottish Building Regulations, or if it is temporary (intended life of 2 years or less) etc.
What is required of you?
Statutory Provisions
For a qualifying building, the owner must not only obtain an Energy Performance Certificate (EPC)in accordance with the usual rules but also ensure that a Section 63 Action Plan is prepared. The Action Plan must set out targets for energy and carbon emission improvements and detail how these improvements will be achieved.
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Section 63 Action Plan
Select the option that applies to you:
1.Either implement the measures detailed in the Action Plan within 42 months (approximately 3½ years) after lodging the plan.
2. Alternatively, owners may defer implementation by submitting an annual Display Energy Certificate (DEC) and reporting the building’s energy use.
The Action Plan must be lodged on the Scottish EPC register and must be made available free of charge to prospective tenants or buyers.
Implications of Non-Compliance
The penalties for Section 63 are implemented under The Assessment of Energy Performance of Non‑domestic Buildings (Scotland) Regulations 2016.
Fines
A fixed penalty of £1,000 may be imposed if a building owner fails to submit a required Action Plan or implement its improvement measures within the prescribed timeframe.
Do the fines apply to you?
The obligations and penalties apply only to qualifying Non-domestic buildings over 1,000 m² that are being sold or leased.