Transcript DSM and Energy Efficient Buildings in China, the U.S. and

Federal Tax Benefits for Energy Efficient
Construction and Renovation
BOMA Boise
April 20, 2006
Ed Wisniewski
Deputy Director
CEE
Working Together, Advancing Efficiency
About CEE
• 501c(3) nonprofit organization
• Funded by 79 members in 28 states and 2
provinces as well as government grants
• Members direct more than $2 billion in efficiency program
resource procurement -- over 90% of US ratepayer
efficiency funding
• Provides a forum for working together as a virtual industry
(and with ENERGY STAR, other industries)
Disclaimer: Presentation is for general information
purposes. Consult with a professional tax advisor.
Working Together, Advancing Efficiency
Acknowledgements
David Goldstein
Energy Program Director
Natural Resources Defense Council
Joseph Mikrut
Partner
Capitol Tax Partners, LLC
Kyle Pitsor
Vice President, Government Relations
National Electrical Manufacturers Association
Working Together, Advancing Efficiency
What’s EPACT and What’s In It For Me?
• SECTION 1331 OF
H.R. 6, (PUBLIC LAW
109-58)
• Tax Deduction
Provision for EnergyEfficient Commercial
Building Property
• Extra Financial
Assistance
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Building and Expenditure Type
• Tax Deduction for
Measures to Achieve
50% Savings
Compared to ASHRAE
90.1-2001 Baseline.
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Interior Lighting
Heating, Cooling, Ventilation,
Hot Water Systems
Building Envelope
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Deduction Available
• Equal to the Cost of the EE Measure
• Subject to a Cap of $1.80 per sq/ ft.
• Allowed During the Year Property is Placed in
Service
• Current Law – 2006 and 2007
• Bill to Extend Additional 5 Years
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Partial Deductions For Sub Systems
• Up to $.60 per sq. ft. for
Each of Three
Subsystems
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Interior Lighting (Interim
Rules in Place)
Heating, cooling,
ventilation, and hot water
systems
Building Envelope
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Lighting Partial Deduction
• Sliding Scale Based Upon
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•
Lighting Power Density
Reductions
Table 9.3.1.1 or 9.3.1.2 of
ASHRAE/IESNA Standard
90.1 - 2001
$.30 for 25 Percent
Reduction
$.60 for 40 Percent
Reduction
Control Requirements Must
Be Met
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Sample Measures
• Compliance is similar to energy codes
such as the IECC or ASHRAE 90.1.
• Technologies that are credited include:
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More efficient cooling and water heating
equipment
Better controls than required by code
Reductions in losses from ducts and
fans
Better insulation and windows
Reducing or eliminating simultaneous
heating and cooling
More efficient luminaires, ballasts, and
lamps, and selection of more efficient
light sources
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Additional Examples
Daylighting
– Commissioning
– CHP
– Semi-Conditioned
Spaces
– Low-Pressure Duct
Systems
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Certification Requirements
• Secretary of Treasury to
Promulgate Regulations
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Describe Methods to
Calculate Energy and
Power Costs
“Qualify” Software
Establish Requirements
for “Certifiers”
Identify Verification
Requirements
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Beneficiary
• Deduction for the
Company that Owns the
Property
• For Public Buildings -Provision to Allocate
Deduction to Primary
Designer of the Property
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Resources for Potential Support
• Idaho Power
www.Idahopower.com
• Northwest Energy Efficiency Alliance
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•
www.nwalliance.org
Commercial Building Tax Coalition
www.efficientbuildings.org
American Society of Heating, Refrigerating and Air-Conditioning
Engineers
www.ashrae.org
New Buildings Institute
www.newbuildings.org
US Department of Energy www.doe.gov
US Environmental Protection Agency www.epa.gov
BOMA Energy Efficiency Program
www.boma.org/aboutboma/beep
Consortium for Energy Efficiency
www.cee1.org
Working Together, Advancing Efficiency
www.Idahopower.com
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Potential Utility Incentives
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BOMA Training
–
BOMA Energy Efficiency
Program (BEEP). BEEP is
an operational excellence
program designed to
educate owners and
managers about the
financial and environmental
benefits of improving
energy efficiency.
www.boma.org/aboutboma/
beep
Working Together, Advancing Efficiency
NW Alliance – Better Bricks
• Resource for information and
services to help architects,
developers, builders and facilities
managers incorporate energy
efficiency into their building
designs, construction plans and
day-to-day maintenance
operations.
www.betterbricks.com
Working Together, Advancing Efficiency
US EPA ENERGY STAR®
• ENERGY STAR offers guidelines for energy
management and improving energy efficiency
• Includes online national energy performance rating
system to benchmark energy performance
• Provides no-cost training programs geared toward
commercial real estate professions
• Also includes an online directory of product and
service providers
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Possible Guidance on Meeting Advanced
Energy Targets
• New Buildings Institute (NBI)
Advanced Buildings™ Suite:
• Benchmark™
• Benefits Guide
• Reference Guide
– Advanced Lighting Guidelines
• These documents describe processes for designing with
energy efficiency as well as architectural and engineering
choices
• Case Studies Available at:
www.advancedbuildings.net
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Working Together, Advancing Efficiency
CBTD Coalition
• Implementation requires promptly getting
the regulatory rules right and to vigorously
promote the provision.
• NEMA has brought together a broad
stakeholder coalition representing building
owners, designers, manufacturers,
distributors, installation contractors,
efficiency advocates, and government to
work together to ensure success.
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CBTD Progress to Date
• Routine Coalition meetings held with stakeholder associations
• 40 organizations represented
• Website devoted to the CBTD was launched in December 05
www.efficientbuildings.org
• Communications plan developed -- CBTD clearinghouse
• NEMA has prepared a tri-fold pocket guide to the deduction, which
is on the NEMA website, www.nema.org
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Working Together
• Consortium for
Energy Efficiency
(www.cee1.org)
members are working
with private sector
companies and trade
associations to
provide support to
comply.
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Contact information:
• David B. Goldstein, Ph.D.
Natural Resources Defense
Council
[email protected]
• Joseph Mikrut
Capitol Tax Partners
[email protected]
Kyle Pitsor
National Electrical Manufacturers Association
[email protected]
Ed Wisniewski
CEE
[email protected]
Working Together, Advancing Efficiency
MARK YOUR CALENDARS!
Want more information on this topic? Plan to attend
BOMA International’s North American Commercial
Real Estate Congress and The Office Building Show
where updates and additional education on the
Energy Bill are planned!
When: June 24-27
Where: Dallas, TX
For more information visit:
www.bomaconvention.org or call
202-326-6341.
Working Together, Advancing Efficiency