Examination Guide for LCCI Centres LCCI International Qualifications
INVESTING FUTURE - lcci. · PDF fileCosting less to operate and maintain, in most cases. n....
Transcript of INVESTING FUTURE - lcci. · PDF fileCosting less to operate and maintain, in most cases. n....
INVESTING IN THE FUTUREINVESTING IN THE FUTUREGREEN BUILDING POLICY AND FUNDING PROGRAMS
Spring into Wellness ConferenceMarch 19, 2009
Maureen Guttman, AIA
Governor’s Green Government Council
Residential Electricity Bill Increases After Rate Caps
Met ED
PECO
PENELEC
PPL
West Penn
0%
10%
20%
30%
40%
50%
60%
70%
Perc
ent Inc
reas
e in
Tot
al B
ill
Projected Electricity Sources for Pennsylvania
-
20
40
60
80
100
120
140
160
180
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Mill
ions
of M
WH
Alternative EnergyAll Other Electricity
INDUSTRY25%
TRANSPORTATION27%
BUILDINGS48%
Source: Energy Information Administration Statistics and Pew Climate Report
Declining sources of fossil fuel
High cost to build new power plants
Price caps ending
NEW FUNDING FOR ALTERNATIVE ENERGY AND CONSERVATION
The Perfect Storm
$ American Recovery and Reinvestment Act
$ PA Alternative Energy Investment Act
$
PA Demand Side Management – Act 129
$ PA Climate Change Advisory Council
•
Weatherization ‐
$5 Billion•
Energy Efficiency Block Grant $2.8 Billion–
Large cities and counties; $1.96 Billion (approx. $50 MM to $65
MM to PA)
–
Local gov's
‐
small counties and municipalities; $448 Million
(approx. $11 MM to $14.7 MM to PA)
–
State Energy Programs; $336 Million ( approx. $8.7 MM to $11
MM to PA)
–
A competitive program $400 Million. •
State Energy Program: $3.1 B –
($99.6 MM to PA)–
cost share waiver for SEP (20%) is included in the package as is
the waiver of the 50% capital cost limitation
AMERICAN RECOVERY AND REINVESTMENT ACT ‐‐
2.12.09
AMERICAN RECOVERY AND REINVESTMENT ACT ‐‐
2.12.09
•
$11 billion for variety of electricity related issues, including
R&D,
pilot projects and matching funds for smart grid technology, in part
intended to fund new power lines and expand existing lines related
to renewable energy;
•
$8 billion for loan guarantees for renewable generation and
transmission projects beyond the $11 billion;
•
$6 billion for federal energy efficiency projects at federal buildings;
•
$2.5 billion for
a new competitive program at HUD for low income
energy efficiency projects;
AMERICAN RECOVERY AND REINVESTMENT ACT ‐‐
2.12.09
•
$2.4 bill for
carbon capture and sequestration demonstration
projects;
•
$2 billion for R&D for energy efficiency intended to be awarded
competitively between labs, companies and universities;
•
$2 billion for advanced batteries loans and grants to support U.S.
manufacturers;
•
$600 million for additional alternative‐fueled cars in the Federal
fleet;
•
$500 million for energy efficiency manufacturing and
demonstration projects;
AMERICAN RECOVERY AND REINVESTMENT ACT ‐‐
2.12.09
•
$400 million to state and local governments to purchase alternative
fueled vehicles and reduce carbon emissions;
•
$350 million to DOD for research into using renewables to power
weapons systems and bases;
•
$300 million in grants and loans to state and local governments for
projects that reduce diesel emissions, including technologies to
retrofit school bus emission exhaust systems, the replacement of
engines and vehicles and the establishment of anti‐idling programs;
and
•
$200 million in grants to encourage electric vehicle technologies.
PENNSYLVANIA ALTERNATIVE ENERGY INVESTMENT ACT ‐‐
2008
$650 Million in Funding ProgramsAdministered Through:
•
Commonwealth Financing Authority•
Department of Environmental Protection
•
Ben Franklin Partners •
Pennsylvania Housing Finance Agency
•
Department of Public Welfare•
Department of Revenue
PENNSYLVANIA ALTERNATIVE ENERGY INVESTMENT ACT ‐‐
2008
Programs for Consumers and Small Businesses•
$100 Million for Solar Energy ‐
DEP
–
Rebates funded through bonds–
Up to 35% of project costs
•
$92.5 Million for Consumer Energy Conservation Projects ‐
DEP
–
A mix of loans, grants and rebates–
Up to 25% of project costs
•
$25 Million for High Performance Bldgs
‐
CFA–
Standards by DGS in consultation with DEP
CFA ‐
$165 MILLION FOR THE FOLLOWING:Loans Grants
Businesses •Clean energy projects•Alternative energy
production projects•Site preparation
•Alternative energy
production projects•Site preparation
Non‐profit
economic
development
organizations
•Clean energy projects•Alternative energy
production projects•Site preparation
•Alternative energy
production projects•Site preparation
Political
subdivisions•Clean energy projects•Site preparation
•Clean energy projects•Site preparation
PENNSYLVANIA ALTERNATIVE ENERGY INVESTMENT ACT ‐‐
2008
Commonwealth Finance Authority
•
$80 Million for Solar Energy Projects–
May be loans or grants
–
Can include incentives for manufacturers–
No restriction on who can apply
•
$25 Million for Geothermal and Wind–
May be loans or grants
–
No restriction on who can apply–
For wind, may include manufacturing
PENNSYLVANIA ALTERNATIVE ENERGY INVESTMENT ACT ‐‐
2008
Other Programs
• $40 Million to the Ben Franklin Partners to Support Early‐Stage Activities
• $10 Million Annually over 4 Years to DPW to Supplement LIHEAP
• $5 Million to PHFA
for Home Efficiency Loan Fund for Income‐Eligible Households
PENNSYLVANIA ALTERNATIVE ENERGY INVESTMENT ACT ‐‐
2008
Other Programs
• $25 Million for Pollution Control Equipment
–
For coal‐fired power plants with less than 500 MW capacity
• $2.5 Million for Data Center Virtualization Projects for Individuals and Small
Businesses
PENNSYLVANIA ALTERNATIVE ENERGY INVESTMENT ACT ‐‐
2008
Alternative Energy Production Tax Credits•
Up to 15% of Total Costs of Development, Equipment and
Construction, up to $1 Million/Year/Taxpayer
•
Taxpayer Includes a Person or Entity Subject to:–
Personal income tax–
Corporate net income tax–
Capital stock and franchise tax•
Total Credits Limited to:–
$5 million for each of first 4 years–
$8 million in 5th year–
$10 million in 6th and 7th years–
$2 million the 8th year
PENNSYLVANIA ALTERNATIVE ENERGY INVESTMENT ACT ‐‐
2008
“Clean Energy” Projects
•
Replaces/supplements existing energy system w/ alternative energy system.
•
Installation of alternative energy systems in existing or new buildings
•
“Facilitates” construction of high performance buildings or site preparation for the same
•
Equipment improving energy efficiency: heating, cooling, solar thermal.
•
ESCO projects.
PENNSYLVANIA ALTERNATIVE ENERGY INVESTMENT ACT ‐‐
2008
“Alternative Energy Production” Projects
•
Energy production or distribution from alternative energy sources and clean coal
•
Manufacturing facilities producing equipment and components for alternative energy
production projects, alternative fuels, and conservation.
•
R&D facilities for alternative energy or fuels•
Rail transport for alternative fuels
PENNSYLVANIA ACT 129 ‐‐
2008
Energy Efficiency and Conservation Program•
EDCs
must develop and receive approval from PUC for
cost‐effective efficiency & conservation programs•
By May 31, 2011 consumption must be reduced by 1%
below 2009 levels•
By May 31, 2013 consumption must be reduced by 3%
(additional 2%) below 2009 levels•
By November 30, 2013 and every 5 years afterwards,
PUC must analyze costs/benefits of continuing an EE/EC program
PENNSYLVANIA ACT 129 ‐‐
2008
Energy Efficiency and Conservation Program
The EE/EC plans approved by PUC must also reduce electric demand:
–
By May 31, 2013 reduction in the 100 peak hours of demand by
4.5% from peak demand in 6/1/07 through 5/31/08–
By November 30, 2013 PUC must analyze costs/benefits and
determine if continued reductions are warranted
KEY DRIVERS FOR EFFICIENCY
•High and volatile energy prices• Evolving national energy auditing
standards• Access to training and education• Systems that channel the value of EE to
those that create it – net metering, smart grid, smart appliances
CHANGES TO LOOK FOR
• JOB CREATION–
Solar, wind, geothermal industries•
Manufacturing, Installation, Maintenance
–
Energy auditing–
Building operating engineers
–
High performance design/construction–
Code enforcement
• INCREASING EE STANDARDS–
Incentives for high performance
–
“Green” Building Code provisions
Productivity Benefits ofGreen Building
A Presentation for the Spring Into Wellness conference
March 19, 2009
David Sheridan, P.E., LEED-AP
Why build green?
Which costs? Costs of building operation?
p The cost of energyp The cost of materialsp The cost of wastep Energy is the common denominator
Buildings use (and waste) a lot of energy and resources
p About 1/3 of the energy used in the U.S.p About 70% of the electric power used in
the U.S.p $150 billion of the energy used in U.S.
buildings each year is wasted.
Building green will save moneyp Energy savings of
30% compared to a code-built building are fairly routine
p A green building can be built for the same cost as a code-built building
Sustainable practices are no longer optional – for most of us, anyway
p Right-sizing and debt reduction will dominate our thinking
p Conditions will encourage us to reduce, reuse, recycle
p Federal and state governments will encourage – strongly – conservation and improved efficiency
Added value of green buildings
p Royal Institution of Chartered Surveyors (property appraisers) 2005 study of buildings in UK, Canada, and USn “A link is beginning to emerge between the
market value of a building and its green features and related performance.”
Added value of green buildings
p RICS study deemed green buildings to improve asset value by:n Securing tenants more quicklyn Commanding higher rents or pricesn Enjoying less tenant turnovern Costing less to operate and maintain, in most
casesn Attracting grants, subsidies and other
inducementsn Improving business productivity for occupants
In the U.S., the Appraisal Institute
p LEED properties getting top market ratesp Accelerated lease-up for LEED propertiesp Less tenant turnoverp In residential, green moving faster than
traditional
What about personnel costs?
p Salaries and wages are the largest cost in most businesses
p Small, sustained productivity gains can translate into significant cost savings
p What do we know about the impact of green buildings on productivity?n More efficient productionn Less absenteeismn Less employee turnover
What do we know about green buildings and productivity?
p First, let’s look at some old stories:n Reno NV Post Officen PPL office buildingn Wal-Mart in Kansasn Lockheed office building
Reno NV Post Office
p 1986 renovation to improve energy efficiencyn Lower ceilings and better lightingn $300,000 capital cost
p Energy savings ~$50,000 annuallyp Productivity increased 6% (quiet, better-
lighted work environment)p Mistake rate decreased to lowest of any
PO in US
PP&L Office building
p Improved lighting in design office with task lighting
p Energy savings showed 4-year +/-payback
p Productivity increased 13%n Time for drafters to complete drawingsn Reduced payback to 2+ months
p Sick leave dropped 25%
Wal-Mart in Kansasp Daylighting with
skylights – installed in ½ of the store, due to budget constraints
p Sales higher in that area, compared to the rest of the store
p Sales higher in that area, compared to other stores
p Employees asked to be assigned to daylit area
Lockheed office building
p 60,000 square feet with 2700 occupantsp 1983 energy efficiency projectp ~4-year payback based on energy savingsp Absenteeism decreased by 15%
n Paid for improvements in <1 year
Schools
p Ventilation, acoustics, lighting, and thermal comfort
p Improved student test scoresp Improved teacher retentionp Less absenteeism – teachers,
staff, and students
Academic research into green schools
p Carnegie Mellon study: Better air quality –reduction in asthma, colds and flu
p Washington State study: Reduction in absenteeism and increase in test scores
p Capistrano School District: 20 % faster math learning and 26% faster reading learning
p North Carolina study: 20% improvement in grade level for students entering from low-performing schools in district
Health care
p Sheffield University (UK) study of Poole Hospital orthopedic unit
p Comparison of refurbished ward vsconventional wardn Patients required less pain medicinen Patients discharged in 6.4 days vs 8.1
days
Retail
p Natural light attracts shoppersp In study of 73 stores, daylighting
contributed to higher sales
Let’s not overstate green building benefits
p CoStar Study of LEED and EnergyStar buildingsn LEED buildings sold for 64% more than
conventional buildings ($171/sf premium!)n LEED buildings rented for 34% more than
conventional buildingsn EnergyStar buildings sold for 27% more
($61/sf premium)n EnergyStar buildings rented for 9% more
Problems with the CoStar study
p Very small sample, particularly the sample of LEED buildings
p Scarcity of comparables made comparisons perilous
Green Building Finance Consortium findings
p More modest $24/sf sale premium for LEED buildings – say 9%
Compare this finding to CoStar finding regardingEnergyStar buildings
New Tax Law Extends and Expands Tax Incentives
• Renewable production energy credits– Wind Placed-in service 2010– Other sources through 2011.
• Energy Credit– Extends the 30% investment tax credit for
solar and other types through 2016. Adds a 10% credit for combined heat and power system.
New Tax Law Extends and Expands Tax Incentives
• Geothermal Heat Pump Systems – 10% energy tax credit.
• Residential energy-efficient property – extends the credit for property place in service through 2016. Removes the $2,000 limitation on credit allowed for qualified solar energy property starting 1/1/09. Adds 30% geothermal heat pup credit.
New Tax Law Extends and Expands Tax Incentives
• Carbon mitigation – Some new provisions to reduce carbon emissions.
• Transportation– New tax credit for new qualified plug-in
electric drive motors of $2,500 plus $417 for each Kilowatt hour of the battery. Some limits on max. credit.
New Tax Law Extends and Expands Tax Incentives
• Bicycle commuters– There is a $20 per month fringe benefit
available for the use of a bicycle from Home to Office.
• Qualified energy conservation bonds – National Limit of $800 million and there is a tax credit based on the face.
New Tax Law Extends and Expands Tax Incentives
• Energy efficient commercial buildings – extends the deduction for another 5 years through 2013. Includes new interior or exterior lighting, heating and cooling systems and building envelope.
• Qualified Green building projects – extends the right to issue tax-exempt facility bonds for qualified green buildings design.