Decision Details

Implemented

Clean Air Zone- Full Business Case Heavy Duty Vehicle Fund

Yes

No

No

007226/2020

No

Report of Interim Director Inclusive Growth

Tue 11 Feb 2020

To seek approval of Full Business Case to implement a £10.05m Heavy Duty Fund designed to help businesses to move towards low emission vehicles

OLD - Transport and Environment

Above £1m capital

Birmingham Clean Air Zone Submission of Full Business Case and Request to Proceed with Implementation, Cabinet Report 11th December 2018. CMIS Reference 005939/2018.

Tackling Air Quality in Birmingham - Clean Air Zone – Submission of Business Case to Government, Cabinet Report 10th Sept 2018. CMIS Reference 005425/2018

Committee

Cabinet

Inclusive Growth

On 11 February 2020, Cabinet:- (i) Approved the City Council Full Business Case at Appendix A to the report for the CAZ HDV Fund (mitigation M4) at a total cost of £10.200m funded from Clean Air Fund (CAF) capital grant of £10.050m and CAZ revenue income of £0.150m, noting that the proposal within the FBC is a variation on the original submission to the Joint Air Quality Unit (JAQU) in December 2018, as a result of subsequent State Aid advice and is subject to JAQU approval; (ii) Noted that in line with the grant condition requirements the Head of CAZ for the Council has formally notified JAQU of the variation for approval; (iii) Noted that subsequent to the Cabinet approval of the Government Clean Air Zone Full Business Case (GFBC) on 11th December 2018, the Council was awarded and accepted £27.270m of JAQU CAF capital grant to fund mitigation measures, with £10.050m specifically allocated to HDV compliance (mitigation M4); (iv) In accordance with the application and award process detailed within Appendix A to the report, and subject to JAQU approving the variation to the HDV Fund proposal, agreed to delegate authority to the Interim Director; Inclusive Growth, or their delegate, to approve and defray the CAF HDV Fund grants of: • Between £0.010m and £0.040m per HDV for purchase/lease/retrofit/relocation/exit lease costs, up to a maximum grant value of £0.170m per eligible SME not involved in ‘road freight transport for hire or reward’ (i.e. non-freight haulage); • Between £0.010m and £0.015m per HDV for retrofit, up to a maximum grant value of £0.085m per eligible SME involved purely in ‘road freight transport for hire or reward’ (i.e. freight haulage); (v) Approved estimated revenue expenditure of £0.150m to support delivery of the HDV Fund, £0.100m being allocated for financial due diligence checks required as part of the approval process and £0.050m for legal support in drawing-up and finalising Conditions of Grant Aid (COGAs) with applicants, noting that the estimated cost of £0.150m will be funded from CAZ revenue income; (vi) Agreed to delegate authority to the Head of Clean Air Zone jointly with the Head of Business Enterprise and Innovation, in consultation with the Cabinet Member for Transport and Environment, to agree with the grant authority (JAQU) to amend the grant fund allocations and conditions, within the total funding limit of this report, in order to most efficiently deliver the objectives of the grant funding; (vii) Authorised the Acting City Solicitor (or their delegate) to negotiate and complete any documentation necessary to give effect to any of the above decisions. THE DEADLINE FOR CALL IN IS 1600 HOURS ON MONDAY 17 FEBRUARY 2020.

No