Aggregate Levy Fund for Wales Applications for Funding
Guidance Notes
These notes provide general guidance on the Aggregate Levy Fund for Wales. Please take time to read these notes which contain important information about the Fund and how to apply. Contact the ALFW Unit to make sure you have the most up-to-date version. It is always a good idea to talk to us about your project before you start work on your application.
For information and advice contact the ALFW Unit: Aggregate Levy Fund for Wales Resources and Delivery Branch Planning Division Welsh Government Cathays Park Cardiff CF10 3NQ email: russell.dobbins@wales.gsi.gov.uk  029 2082 3261 The ALFW Unit is open Monday to Friday during office hours [Version: January 2013]
Contents
Page
What is the Aggregate Levy? What is aggregate? Who manages the Fund in Wales? How do I apply? Who can apply? What type of projects can be funded? - research - community - conserving and improving sites of special interest - education Construction or Land Improvement Projects How much money is there in the Fund? How much grant can I apply for? Can I apply under more than one category? If my project fits one or more of the 4 categories and meets the eligibility criteria, am I guaranteed to get a grant? How long can a grant last? Will you give me enough grant to pay for the total cost of my project? Will you pay for management or professional fees? Do you make retrospective funding? Do you provide revenue funding? Will you pay for staff salaries? Does my local quarry or dredging operation have to support my project? I live in Wales but my project will happen elsewhere in the UK. Will you fund it? Do I include VAT in my application? What are your Terms and Conditions? Is there anything that you definitely will not fund? How do I complete the application form? What is your application timetable? What happens after my application has been submitted? Is there an appeals process? Where can I find information about other sources of funding?
2
3 3 3 3 3 4 4 4 6 6 7 9 9 9 9 10 10 10 10 10 11 11 11 11 11 11 13 13 13 14 14
What is the Aggregate Levy? It’s a tax on the commercial quarrying or marine dredging (extraction) of certain aggregate, paid direct to HM Revenue and Customs.
What is aggregate? For the purposes of the Aggregate Levy Fund for Wales, aggregate is crushed rock, sand or gravel.
What is the Aggregate Levy Fund? In 2002 the UK Government decided that some of the money raised by the Aggregate Levy could be used to fund projects that reduce the impact of past, present and future aggregate production, or reduce the need for primary aggregate extraction. The Welsh Government gets a share of this money, currently £1.5 million a year.
Who manages the Fund in Wales? The Welsh Government. Applications are assessed by an independent Advisory Panel which makes recommendations to the Minister for Environment and Sustainable Development. The Minister makes the final decision on which projects are funded.
How do I apply? By using our application form which is available from the address given on the front page of this guidance note. We will not accept applications submitted any other way. This guidance note walks you through the application process and will help you decide whether or not your community or project is eligible for funding. There is a separate step-by-step guide to help you complete the application form. It is important that you refer to this guide when completing each section of the form. Incomplete applications, or applications submitted without the correct supporting documentation, will be returned to you without having been considered. Please be aware that we may check the information you supply. You can contact the ALFW Unit for advice at any time.
Who can apply?
Voluntary and community organisations, including registered and unregistered charities, co-operatives, friendly societies, industrial and provident societies, companies that are not-for-profit businesses, and unincorporated associations.
Local authorities, town councils and community councils provided that the funds requested do not relate to their core or statutory 3
responsibilities. We will not pay for capital or revenue costs that should be met by a local education authority, or for services that are a statutory responsibility, such as the school curriculum. 
Research establishments. It is a condition of grant that research funded by the ALFW must be available to the general public. There are no exceptions to this requirement.
What type of projects can be funded? It is important that you can demonstrate a clear link between your project and aggregate extraction. You must be able to demonstrate the impact of the extraction upon local people and their community, the environment or the economy, and how your project will help to alleviate these impacts. There are four funding categories. 1. Research The construction industry in Wales needs to use more recycled aggregate, secondary aggregate and alternative materials so that our primary resources can be conserved. We fund projects which examine, encourage and promote this use. We also fund projects that reduce the environmental impact of aggregate extraction, and projects that examine or provide transport systems which take aggregate off the road and onto trains or ships. Please note that we are currently reviewing the terms of this category which means we are not accepting applications until further notice. Please contact the ALFW Unit for the latest position. 2. Community Individuals and their communities can be affected by aggregate extraction. This can take the form of noise from heavy machinery and blasting, dust, vibration, and heavy lorry movements. We fund capital projects that will provide or improve local community amenities or facilities in communities significantly affected by current aggregate extraction. Examples of projects we have funded under this category include new community centres, repairs to village halls, and equipment and groundwork for play areas. Being located close to an active quarry or dredging operation is not enough for your community to secure funding. You must be able to tell us how the aggregate extraction is having a significant impact on the community that will benefit from the project. While we do not insist that your community is within a specific distance from an existing active quarry or dredging operation, we normally expect your community to be located within a radius of at least 5 miles of one. Please note that being within a 5 mile radius does not 4
necessarily mean your community is eligible for consideration for a grant as you must still be able to demonstrate significant impact from aggregate extraction. If your community is significantly affected by heavy lorry movements (the most commonly cited impact), you must be able to provide evidence (results of a recent traffic survey or a recent letter from the quarry operator) showing that at least 26 vehicles (outward and return) pass either through the community or very close to it every day. It is very important that you provide complete, up-todate information on the application form. If you intend to apply for grant to construct a new building then it is very important that you read and understand our BREEAM and other compliance requirements. Please see page 7 for more information. Contact us for advice, if needed. What we will not fund under this category:
projects in communities located near inactive (closed or disused) aggregate quarries or marine dredging operations.
projects in communities solely affected by slate or non-aggregate extraction (operators extracting these materials do not pay the Aggregate Levy).
projects in communities affected by aggregate quarries or dredging operations that have been ‘mothballed’ (temporarily closed or inactive) for longer than 12 months at the point of application.
projects in communities affected by temporary impacts from aggregate extraction, for example heavy lorries delivering materials to construction projects.
facilities that serve a wide geographical area but which are located in an area unaffected by aggregate extraction. Projects must be located within a community significantly affected by aggregate extraction.
costs that should be met by local authorities, town councils or community councils as part of their core or statutory responsibilities, or by a local education authority for services that are a statutory responsibility, such as the school curriculum.
Management or professional fees above 10 per cent of the total cost of a project. If you are applying for professional fees, we will want to see evidence (at least 3 written estimates) showing that you have tendered for this service.
general repairs to faith-based buildings which include internal and external works, roofing, guttering, rendering, pointing, replacement windows and heating systems, and boundary walls or fences.
5
extensions to cemeteries.
‘closed’ facilities for members’ only clubs. Facilities funded by the ALFW must be open to the general public.
purchase of land.
purchase of buildings.
revenue (running) costs of any kind.
3. Conserving and improving sites of special interest There are three parts to this category: Increasing Biodiversity We fund projects that support habitat creation and species recovery on sites which is affected by either inactive or active aggregate extraction, for example creation and management of a butterfly habitat within a disused limestone quarry. Conserving Geological Features and Geo-diversity As part of the aggregate extraction process, many important geological features are exposed, some of which are sites of special scientific importance. These features, once exposed through quarrying activity, can become obscured by weathering and the growth of vegetation. They can also become unstable and dangerous. We fund projects that manage and maintain safe access to these sites, so that they can be used and appreciated by the general public. Conserving the Historic Environment Historic sites can be under the same pressure as geological sites. We fund projects that manage, conserve and interpret historic sites closely linked to aggregate extraction. 4 - Education We fund education projects that are closely linked to the environmental, geological and historic impacts of aggregate extraction – see category 3 above.
6
Construction or Land Improvement Projects Sustainable Buildings Buildings have an environmental impact and contribute to carbon emissions. They require natural resources to be used both in their construction and use. The way they are designed affects how the occupiers use the building over its lifetime. It is the aspiration of the Welsh Government that in future all new buildings achieve a zero carbon standard. This is part of a wider programme of action to tackle both the causes and consequences of climate change and to promote sustainable development. BREEAM is the Building Research Establishment Environmental Assessment Method which is used to assess the environmental performance of new buildings. It is widely recognised as an effective measure of best practice in environmental design and management. Under the BREEAM scheme there are compulsory standards of performance that have to be met in order to achieve a BREEAM rating. The BREEAM ratings are: ‘Pass’; ‘Good’; ‘Very Good’; ‘Excellent’; or ‘Outstanding’. If your project involves the construction of a new building, then you must take account of the Welsh Government’s BREEAM and other requirements, which are as follows:
buildings with a total internal floor area over 1000m² must achieve a BREEAM 2011 ‘Excellent’ rating. A BREEAM assessment is required and BREEAM certification must be obtained within three months of the completion of the project.
buildings with a total internal floor area over 250m² and up to 1000m² must achieve a BREEAM 2011 ‘Very Good’ rating and obtain the mandatory energy credits for ‘Excellent’ (equivalent to a rating above the Building Regulation Part L minimum (ie a high ‘B’). A BREEAM assessment is required and BREEAM certification must be obtained and produced within three months of the completion of the project.
buildings with a total internal floor area over 50m² and up to 250m² must provide evidence of compliance with Planning and Building Regulations and have an Energy Performance Certificate (EPC) showing a rating above the Building Regulation Part L minimum (ie a high ‘B’). A BREEAM assessment is not required.
buildings with a total floor area under 50m² must provide evidence of compliance with Planning and Building Regulations. A BREEAM assessment is not required.
The BREEAM assessment process takes time, so it is always best to appoint an accredited BREEAM assessor at the earliest opportunity. The assessor will 7
assess the building at each stage of the BREEAM process and will work closely with your design team. You will, as a condition of grant, have to provide us with a copy of the BREEAM certification, or evidence of compliance with Planning and Building Regulations, following completion of your project. Please note that BREEAM certification must be renewed every three years or the building may lose its BREEAM rating. Please remember to take account of our BREEAM and other requirements as they are conditions of grant and failure to comply may have repercussions for your application or project. It is important that you contact us for advice at an early stage. Our BREEAM requirements do not apply to projects involving the refurbishment or extension of an existing building, but an energy efficient design solution is still required, and projects should attempt to achieve higher standards wherever possible. These types of projects will also have to comply with Planning and Building Regulations. It is always best to speak to your planning authority for advice, again at an early stage. Design Commission for Wales We work closely with the Design Commission for Wales (DCfW) to ensure that new buildings funded by the Welsh Government have been designed well and are sustainable. If your project involves a new building, such as a new community centre or village hall, you must contact the DCfW at an early stage of the project’s development. The DCfW can advise you on both the design and sustainability of your proposed building. This is a free service. You must include a letter from the DCfW, commenting on your proposed design, with your application to the ALFW. Your application will not be considered without this letter. Call us for advice on whether or not your project will have to go through this process. Putting your project through the BREEAM and DCfW processes takes time. Please bear this in mind when developing your project. General Requirements Projects involving construction or improvements to land (which include multiuse games areas, play areas and playing fields) can take a long time to plan, design and complete. We need to know that your project can start as soon as possible after funding has been approved. So if you need planning permission, you should take steps to obtain at least outline permission before you apply to the ALFW. In addition: 
you (the applicant) must own either the freehold of the building/land or hold a lease for a minimum of 21 years with at least 10 years remaining at the point of application. There are no exceptions to this condition.
8
you must provide proper designs/plans for the project, a map showing the project’s location, and at least 3 recent written estimates or a recent QS report for the construction costs. If professional fees are included in your application, design fees or project management fees for example, you must provide 3 recent written estimates for the service. Failure to provide these documents at the point of application will result in your application being returned to you without it having been considered. If you are seeking grant towards management or professional fees this element of the application must not exceed 10 per cent of the total cost of the project.
at least 10 per cent of the value of aggregate used in construction projects should come from recycled or sustainable sources. This is a standard condition of grant.
we strongly encourage you to consider renewable energy technologies, such as solar panels, wind turbines, ground-source heat pumps, or biomass boilers, as part of the design of your project. Your local authority, or the Carbon Trust, can help you with this.
we encourage you to take a sustainable approach to the planning, development and delivery of your project. We ask that you use local contractors and services wherever possible.
How much money is there in the Fund? Our budget for 1 April 2012 to 31 March 2013 is £1.5 million (£1,500,000). Not all of this money is available for new projects as some of it will be used to fund projects approved in earlier application rounds.
How much grant can I apply for? As a guide, we do not give grants below £1000 and rarely above £300,000.
Can I apply under more than one category? Yes, but only if your project fits those categories. Don’t be tempted to apply under several categories in the hope of improving your chances of getting a grant. If in doubt call the ALFW Unit for advice.
If my project fits one or more of the 4 categories and meets the eligibility criteria, am I guaranteed to get a grant? No. ALFW grants are discretionary and your application will be competing against others within a limited annual budget. This means there can be no guarantee of getting a grant. We will always tell you why your application was declined.
9
How long can a grant last? Grants can last up to 3 years. Please be realistic about the timescale for your project. We ask that your project can start within 6 months of funding being approved, so it is important that initial work - planning, design, estimates, planning permission, other funding needed etc - is well in hand.
Will you give me enough grant to pay for the total cost of my project? This is very unlikely as ALFW grant rarely exceeds 75 per cent of the total cost of a project. We may not offer you the full amount you are asking for, and we expect you to secure funding from other sources wherever possible. We expect you to raise the difference yourself or from other funders. We will want to see letters from other funders confirming their financial support for your project before any grant is paid.
Will you pay for Management or Professional Fees? Yes, but only to a reasonable level and management or professional fees should not exceed 10 per cent of the total cost of your project. Management and professional fees will be examined carefully during the assessment process. You will have to provide evidence that this service has been procured (normally 3 written tenders).
Do you make retrospective funding? No. We will not fund any activity or purchase that has happened before the date your project was approved.
Do you provide revenue funding? Not under category 2. For categories 1, 3 and 4, revenue funding is permitted but we will not provide revenue funding to a single organisation beyond a continuous period of 3 years. In exceptional circumstances, we may be prepared to consider additional tapered (decreasing) funding for a further 18 months. Funding beyond this extended period will not be possible. It is important that funded organisations have an exit strategy for their project so that they do not become overly reliant on ALFW grant. We do not favour applications for ‘revenue-heavy’ projects under categories 1, 2 or 3. Revenue funding requested should not exceed 40 per cent of the total project cost.
10
Will you pay for staff salaries? Yes, but only for those staff required to deliver your project. We will want to see a job description for all staff to be funded by the ALFW included with your application. Also see ‘revenue funding’ above.
Does the local quarry or dredging operation have to support my project? No. Speak to us first for advice. We will sometimes want to see a letter of support from the local operator, or even better, a promise of a financial or inkind contribution (such as free materials) for your project.
I live in Wales but my project will happen elsewhere in the UK. Will you fund it? No. Your project must take place in Wales.
Do I include VAT in my application? You may need to pay VAT. You must only include VAT in the amount you request from us if you cannot claim it back from HM Revenue and Customs. If you later find that you can recover VAT that we have included in our grant, you must repay this amount to us. VAT can add a considerable cost to a project so we recommend that you contact HM Revenue and Customs for advice before you apply.
What are your Terms and Conditions? If your application is successful you must be able to sign up to our terms and conditions, so it is very important that you read through them before you apply. A copy is available from the ALFW Unit. If you cannot sign up to our terms and conditions we will be unable to pay you grant, even if your application has been approved. This is very important; our terms and conditions are non-negotiable.
Is there anything that you definitely will not fund? We will not fund:
individuals.
projects that are unable to demonstrate a clear link to aggregate extraction.
community projects in areas affected by inactive (closed) aggregate extraction operations.
11
community projects in areas affected by aggregate extraction operations that have been ‘mothballed’ - temporarily closed or inactive for longer than 12 months at the point of application.
community projects in communities affected by slate quarrying or other non-aggregate levy paying minerals operations.
community facilities that serve a wide geographical area and which are located in an area which is not significantly affected by current aggregate extraction. Projects must be located within a community significantly affected by aggregate extraction.
day-to-day running costs, including salaries, of village halls, community centres or similar community facilities. You must not include revenue costs when applying for funding under category 2.
capital or revenue costs that should be met by a local education authority, or for services that are a statutory responsibility, such as the school curriculum.
costs that should be met by local authorities under their statutory requirements or core responsibilities.
members’ only facilities that are ‘closed’ to the general public.
general repairs to faith-based buildings.
extensions to cemeteries.
purchase of land.
purchase of buildings.
excessive management or professional fees.
‘revenue-heavy’ projects.
commercial (profit-making) activities or facilities of any kind.
research that will not be made publically available.
any activity which the aggregate industry should be doing itself in accordance with statutory or planning requirements.
The above is a guide. It is always best to contact the ALFW Unit first before you start work on your application.
12
How do I complete the application form? Included with our application form is a step-by-step guide on how to complete each section. Please contact the ALFW Unit if you need help.
What is your application timetable? Our timetable for the next three application rounds is as follows: Closing date for applications
Applications assessed by Advisory Panel
Decision sent to applicantยน
5 April 2013 2 August 2013 6 December 2013
14 June 2013 4 October 2013 7 February 2014
5 July 2013 25 October 2013 28 February 2014
ยนwhile we do our best to keep to these dates they cannot be guaranteed.
Your application must be complete, with all attachments, signed and submitted in hard copy by 5pm on the closing date. Incomplete applications will be returned without having been considered. Receipt of your application will be acknowledged by email within 2 working days. Applications received after the deadline will be held over until the next application round. Applications submitted by email in order to beat the closing date/time will not be accepted and will be held over until the next application round.
What happens after my application has been submitted? Your application will be examined and any queries followed up with you. We may want to visit you to discuss or see your project first hand. Your application will then be sent to members of the ALFW Advisory Panel. The Advisory Panel will meet to consider your application, along with others received, and will submit its recommendation to the Welsh Government Minister for Environment and Sustainable Development. The Minister makes the final decision on which applications are approved. The ALFW Unit will then contact you, in writing, usually within three weeks of the Advisory Panel meeting, to let you know whether or not or your application has been successful. If your application has been successful, the ALFW Unit will send you a pack of documents for you to sign or complete. This pack will explain the approval process and how to submit a grant claim. If you have any questions at this point, the ALFW Unit will be happy to help you. The ALFW Unit will keep in close touch with you throughout the period of funding. This will include visiting your project to monitor its progress.
13
Is there an appeals process? No, but you are welcome to re-apply, so long as your organisation, your community and your project meet the eligibility criteria.
Where can I find information about other sources of funding? The Wales Council for Voluntary Action (WCVA) operates a website (www.sustainablefundingcymru.org.uk) that offers a searchable database of grants and funders, and advice on how to tackle funding applications. Applicants applying under category 2 may also wish to consider the Welsh Government’s Community Facilities and Activities Programme (CFAP).
14