Post on 15-Jan-2016
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Today's Energy Solutions
Bill McShaneSustainable Lighting Division
Confidential Sustainable Lighting Division 2
Market Size based onNorth Carolina Lamp Data*
2007 2008North Carolina 13,158,400 11,428,800
North Carolina 2007 2008Interior 193,327 200,457Exterior 128,887 133,637
400w Metal Halide
T12 Lamp Units
*based on sales of Philips lamps
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NC Governor's goals:
• Focus on 6 areas for Federal Recovery Act State Energy Program:
1. Support small businesses and industry through energy savings,2. Grow NC’s green workforce via Jobs Now,3. Develop Energy Investment Revolving Loan Fund,4. Improve government energy efficiency,5. Promote residential energy efficiency and renewable energy, and6. Foster renewable energy technology and resource innovation.
NC will demonstrate its performance by tracking the jobs created, energy costs avoided, units of energy saved, increased capacity for renewable energy generation and greenhouse gas and other emissions reduced.
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Main Funding Sources
• NC State Energy Program (SEP)– SEP Grant
• Improving Gov't Energy Efficiency• $9.5MM for the entire state
– SEP loan• 0% loan up to $1MM• tied to Performance Contract• Possibly combination w/Philips financing
• NC State Energy Efficiency Conservation Block Grant (EECBG)
– $7MM for municipalities under 35k in population
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N.C. State Energy ProgramImproving Government Energy Efficiency
• $9,500,000 total available:– $1.95 million:
• For energy assessments to develop and implement long-term energy saving strategies and identify potential projects for federal and state Recovery funding.
– $8 million• For Energy efficiency upgrade grants to address repair and
renovation projects at state agencies, universities and community colleges that have been identified but not funded. Includes exterior lighting upgrades to LEDs
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• $18,000,000-$20,000,000 available• No- and low-interest loans up to $1 million for terms of up to
ten years• For businesses, nonprofits, local governments, public
schools, community colleges and state agencies/universities
• Extends scope of federal recovery funds and ensure that these funds continue to support the state’s commitment to renewable energy and energy efficiency
• Performance Contract Term Buy-downs
Energy Investment Revolving Loan Fund
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• State will issue application materials/RFPs after approval and award of funds from DOE
• State must distribute at least 60% of allocations to small towns <35,000 residents
• Remaining 40% will be distributed to K-12 public school districts, community colleges and other local public authorities which is being funded with $7,044,124
N.C. STATE EECBG Funds
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• Direct allocation of EECBG funds• $2,500,000• Includes "lighting efficiency improvements"• Contact for City of Raleigh EECBG program:
Paula ThomasSustainability Initiatives ManagerCity of Raleigh919-996-3840
City of Raleigh EECBG Funding
Bill McShaneSustainable Lighting Division
EPAct 2005
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Practice What we Preach
• Completed an EPAct project at our Union facility• Yielded a 48K tax deduction
– ($16,000 saving plus annual energy saving)• Ongoing project for the Fall River Plant
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Overview
• The opportunity– Energy Tax Incentives Act of 2005
• Commercial building immediate tax deduction– Incentivized areas:
– Lighting– HVAC– Building envelope
– Also available for:– Tenant owned lease-hold improvements– Rental properties 4 stories or above– Primary Designers of Government Buildings
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Tax Language
• Credit– A Dollar for Dollar Savings
• Deduction– To calculate your Savings you must multiply by your tax
rate– Approximately 1/3
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Overview
• DOE Objectives – Make tax incentives performance based
• The more energy you save, the more taxes you save
– Maximize efficiency of conventional equipment and processes
– Encourage alternative energy equipment and design
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EPAct Strengths -- Retail
• Central management of design decisions• Prototype then keep consistent through chain for easy
compliance• Majority of EPAct projects retail
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Potential Tax Savings for Major Retailer X
• Assumptions: Qualifying Energy Efficient Capital improvements for each facility
Facility Square FeetLighting
DeductionHVAC
DeductionBuilding Envelope
DeductionStores 37,800,000 $22,680,000 $22,680,000 $22,680,000Owned Headquarters 1,200,000 $720,000 $720,000 $720,000
Leased Headquarters 1,500,000 $900,000 $900,000 $900,000
Leased Distribution 1,800,000 $1,080,000 $1,080,000 $1,080,000
Owned Distribution 8,900,000 $5,340,000 $5,340,000 $5,340,000
Total $30,720,000 $30,720,000 $30,720,000
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Distribution Centers
• All major and minor companies have these!• Low hanging fruit….Major companies are retrofitting.• Very large square footage• Example: 80,000 sq.ft. warehouse
*2,080 hours of operation
Lighting TypeTotal Energy
Consumption* Annual Energy Cost
Metal Halide 54,600 $13,628
Pulse Start 42,630 $10,640
6-lamp T5 32,670 $8,177
6-lamp T8 26,880 $6,709
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Hotels
• Easy opportunity• Compliance achieves full $/sq.ft. deduction in 30 states• Large spaces• Guest rooms
– Exempt from bi-level switching– Substantial plug-in lighting – exempt
• Franchise ownership can be a hindrance
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Overview
• View of DOE analysis on tax area
– Difficult to reduce building envelope energy use after-the-fact
– Lighting current low hanging fruit
– Prospectively, HVAC may be biggest opportunity
Lighting22%
HVAC50%
Building Envelope
28%
Building Energy Use
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Commercial Building Immediate Deduction
• Deductions based on improvements over ASHRAE 90.1 2001• Energy efficient improvements must be depreciable assets
– Converts 39 year depreciation to current deduction• Available for installations completed through 2014• Deduction amounts:
– Lesser of total cost or:• $1.80/sq.ft. Whole Building• $0.60/sq.ft. Individual Systems
a. Lightingb. HVACc. Building Envelope
ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers)HVAC (Heating, Ventilation & Air Conditioning)
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Commercial Building Immediate Deductions
• Architects/Engineers/Lighting Designers– DOE goal to incentivize green design in government building sector
• Benefits passed through to the primary designer of:– Federal: offices, military bases, court houses, post office,
labs etc.– State: offices, transportation facilities, state universities,
court houses etc.– County, city, town, village etc: offices, schools, town halls,
police, fire, libraries etc.
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5 ways to Capture Tax Deduction
1. Whole Building ($1.80/ft2) – 50% Energy Cost Reduction below standard
Permanent Rules partial deduction ($0.60/ft2)– Overall Energy Cost Reduction of 16 ⅔% below standard for:
2. Lighting or3. HVAC or4. Building Envelope
5. Interim Lighting Rules ($0.30/ft2-$0.60/ft2)– 25% to 40% prescribed Light Power Density (LPD) reduction
below standard
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Interim Lighting Rules
• Meet W/ft2 targets
• Add’l Requirements– Bi-level Switching
– Meet ASHRAE 90.1 Requirements
– Meet IESNA minimum light levels
% Improvement 25% 26% 27% 28% 29% 30% 31% 32% 33% 34% 35% 36% 37% 38% 39% 40%
Tax Deduction $/sq.ft.. 0.30 0.32 0.34 0.36 0.38 0.40 0.42 0.44 0.46 0.48 0.50 0.52 0.54 0.56 0.58 0.60
LPD (Light Power Density)
2001 Standard
LPD, W/ft2
25% Improvement
40% Improvement
Office 1.3 0.975 0.78
Manufacturing 2.2 1.65 1.32
School/Library 1.5 1.125 0.90
Retail 1.9 1.425 1.14
Warehouse 1.2 50% required, 0.60
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Bi Level switching-Tax Requirement
• Tax Explanation-not a lighting one• EPAct States –a room which is defined has having four
walls and ceiling must have two levels of light. (must have the ability to achieve)
• How to Satisfy this requirement:• Multiple Switches• Circuit Breakers—distribution centers• Occupancy Sensors in a perimeter offices only provide On
and Off
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Free Riding
• Advanced tax planning strategy• Lowest hanging Fruit• If 40% improvement all already exist. Use the $0.60 cents
square deduction for:• Lighting Controls• Lighting portion of Building Management Systems• DayLighting design and systems
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Benefiting from ASHRAE 2004 & 2003 IECC
2001 Std.
(W/ft2)
25%
Over
2001
40%
Over
2001
2004 Std.
(W/ft2)
2004
% over
2001
Automotive Facility 1.5 1.125 0.9 0.9 40% X
Convention Center 1.4 1.05 0.84 1.2 14%
Court House 1.4 1.05 0.84 1.2 14%
Bar Lounge/Leisure 1.5 1.125 0.9 1.3 13%
Cafeteria/Fast Food 1.8 1.35 1.08 1.4 22%
Family Dining 1.9 1.425 1.14 1.6 16%
Exercise Center 1.4 1.05 0.84 1 29% X
Gymnasium 1.7 1.275 1.02 1.1 35% X
Health Care Clinic 1.6 1.2 0.96 1 38% X
Hospital 1.6 1.2 0.96 1.2 25% X
Hotel 1.7 1.275 1.02 1 41% X
Library 1.5 1.125 0.9 1.3 13%
Manufacturing 2.2 1.65 1.32 1.3 41% X
Motel 2 1.5 1.2 1 50% X
2001 Std.
(W/ft2)
25%
Over
2001
40%
Over
2001
2004 Std.
(W/ft2)
2004
% over
2001
Movie Theater 1.6 1.2 0.96 1.2 25% X
Museum 1.6 1.2 0.96 1.1 31% X
Office 1.3 0.975 0.78 1 23%
Parking Garage 0.3 0.225 0.18 0.3 0%
Theater 1.5 1.125 0.9 1.6 -7%
Police/Fire Station
1.3 0.975 0.78 1 23%
Post Office 1.6 1.2 0.96 1.1 31% X
Retail 1.9 1.425 1.14 1.5 21%
School/University 1.5 1.125 0.9 1.2 20%
Sports Arena 1.5 1.125 0.9 1.1 27% X
Town Hall 1.4 1.05 0.84 1.1 21%
Transportation 1.2 0.9 0.72 1 17%
Warehouse 1.2 0.8
Workshop 1.7 1.275 1.02 1.4 18%
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States with Stricter Lighting Standardsthan ASHRAE 90.1 2001
2003 IECC
Arkansas New Mexico
Colorado Nevada
Connecticut Oklahoma
Idaho Pennsylvania
Kansas Rhode Island
Kentucky South Carolina
Maryland Utah
Montana Virginia
Nebraska West Virginia
2004 IECC
Iowa
ASHRAE 04
Georgia Louisiana
Maine New Jersey
Ohio
State Specific
California Florida
North Carolina Vermont
Washington
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Common Lighting Retrofits
Industrial/Manufacturing/Warehouse
Metal Halide458 Watts
T5 Hi-Bay Fluorescent234 Watts
Or
Office & Retail
4 Lamp 4’ T12Mag. Ballast
144→164 Watts
2 Lamp 4’ Super T-8 Elec. Ballast
67 Watts
3 Lamp 4’ Super T-8Elec. Ballast
72 Watts
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EPAct Strategy
• Review all completed projects for EPAct Eligibility (Commercial & Government)
• Establish process to maximize EPAct• Lighting
– Design future projects to the higher of ASHRAE 2004, local energy codes or EPAct
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And now a word from one of your electric utilities . . .
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North Carolina Rebate Programs
4-lamp T5HO = approx $75 per fixture
Plus Sensor
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