I asked West Sussex County Council about ebook lending in the county back in late October and got this response:
We are currently evaluating the services available from library suppliers to provide a lending facility for downloadable e-books through our website, with a view to launching a further service this year. While some local authorities are using these products, there are concerns about compatability with some e-readers and we will be evaluating the best system to adopt. Any new service will be advertised on our website and in libraries.
I've prompted them again this week but no further update. There is
a link on their website to an overdrive page but it fails on authentication...