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Energy Tax Savers, Inc.EPAct Presentation
Energy Tax SaversJacob [email protected]
Required Energy Techniques for Modeling building
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Energy Policy Act of 2005 (EPAct)
Extended through 12/31/13 Benefits available from 1/1/06 thru 12/31/13 Incentivized areas:
– Lighting– HVAC– Building envelope
Available for New Construction and Existing Buildings Also available for:
– Tenant owned lease-hold improvements– Primary Designers of Government Buildings
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What’s it Worth?
Potential Tax Savings for 300,000 sq. ft.
Immediate Tax Deduction
Whole Building $540,000
Individual System Approach
Lighting $180,000
HVAC $180,000
Building Envelope $180,000
Assumptions: 300,000 sq.ft. of facilities, Qualifying Energy Efficient improvements for entire space
With Government Buildings these benefits go to the Primary Designer
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Commercial Building Immediate Deductions
Stimulus Package emphasizes Energy Efficiency in Government Buildings
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 [email protected]
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What’s in it for Architects/Engineers/Lighting Designers?
Growth in this EPAct area for government building designers is exploding
Successful Design Niches:– K-12 Public Schools– State Universities and Colleges– Military Bases– Parking Garages– Airports
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How do you Qualify?
Mechanics – 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 between 1/1/06 & 12/31/13
Can begin in prior years– 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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8 Ways to Capture Tax Deduction
• (1)Whole Building ($1.80/ft2) – 50% Energy Cost Reduction below standard
• Permanent Rules partial deduction ($0.60/ft2)
• (8)Interim Lighting Rules ($0.30/ft2-$0.60/ft2)– 25% to 40% prescribed Light Power Density (LPD) reduction below
standard
Building Envelope
Lighting HVAC
Alternative 1 (2)162/3 % (3)162/3 % (4)162/3 %
Alternative 2 (5)10% (6)20% (7)20%
Where are the Benefits
Lighting, Lighting, Lighting Lighting Controls Specific Types of HVAC
– Geothermal– Thermal Storage– Central Chiller plants with small
buildings(<150,000sq.ft.) in Campus
LEED Buildings
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Commercial Building Immediate Deduction
Permanent Rules– 16 ⅔% overall cost improvement below standard
generated by each system (Lighting, HVAC, Building Envelope)
– Energy models confirm savings– Daylighting systems particularly well suited– HVAC may qualify with as little as a 25%
improvement over standard
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Understanding Energy Models
IRS has approved thirteen types of modeling software – eQUEST, Trane Trace 700, Energy Plus, Carrier HAP,
VisualDOE, EnergyGauge, DOE2.2, DOE2.1E & 2.1E-JJH, Owens Corning Commercial Energy Calculator, Green Building Studio, EnerSim, IES <Virtual Environments>
– other submissions are in process Important modern Energy management tool. Currently required for all HVAC and building envelope
deductions and for whole building lighting alternative. In many jurisdictions, rebates are provided for all or
substantial portions of modeling costs.
179D Modeling Technique
Overall Guidance NREL/TP-550-40467 May 2007
Technique ASHRAE 90.1 2004 Appendix G
Reference Data ASHRAE 90.1 2001
Ventilation ASHRAE 62 1999
Load Data Title 24 (In NREL document)
Exceptions
Ventilation Rate ASHRAE 62 1999 not Title 24
Occupancy Title 24 not ASHRAE 62 1999
Lighting Load ASHRAE 90.1 2001 not Title 24
EPAct Modeling Technique
HVAC Example1. Model and size your actual building and HVAC system
2. Model a reference building designed to ASHRAE 90.1 2001 data using Title 24 loads and ASHRAE 90.1 2004 Appendix G methodology.
3. Copy the reference building and remove the reference HVAC equipment. Insert the actual equipment from step 1 into this reference building. Compare the cost of energy between step 3 and step 2. A 16.67% improvement gets tax savings.
12 See NREL/TP-550-40467, May [email protected]
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Techniques for Achieving HVAC Tax Savings
1. More Efficient than Reference Equipment Put in Highly efficient equipment and add
– VFD’s– Economizers– Demand Ventilation– Energy Recovery Ventilation– Etc.
2. Different Equipment than Reference Equipment Chillers where Packaged Units are in the Reference Building Central Plant Geothermal
3. Take advantage of Time of Day Energy Pricing Thermal Storage
What Tends to Qualify on the HVAC side?
1. Geothermal (Ground Source Heat Pumps)
2. Thermal Storage
3. High Efficiency PTAC units in Rental Apartments
4. Centralized HVAC in Rental Apartment Buildings
5. Energy Recovery Ventilation
6. Demand Control Ventilation
7. Chillers in buildings < 150,000 sq ft
8. Blow through heaters in no AC Industrial Spaces
9. VAV (variable air volume devices) in buildings <75,000 sq ft
10. Chilled Beam
11. Magnetic Bearing Chillers
12. Gas fired chillers combined with electric chillers to peak shave
17From NREL Technical Report NREL/TP-550-40467 May 2007 [email protected]
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Use ASHRAE 90.1 2001
Use ASHRAE 62 1999
[email protected] NREL Technical Report NREL/TP-550-40467 May 2007
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Differences between LEED & 179D
Section 179D LEED v2.2
Overall Guidance NREL/TP-550-40467 May 2007 ASHRAE 90.1 2004 Appendix G
Technique ASHRAE 90.1 2004 Appendix G ASHRAE 90.1 2004 Appendix G
Reference Data ASHRAE 90.1 2001 ASHRAE 90.1 2004 Appendix G
Ventilation ASHRAE 62 1999 ASHRAE 62.1 2004(?)
Load Data Title 24 (In NREL document) Actual Loads
Exceptions
Ventilation Rate ASHRAE 62 1999 not Title 24 No Exceptions
Occupancy/sq.ft. Title 24 not ASHRAE 62 1999 No Exceptions
Lighting Load ASHRAE 90.1 2001 not Title 24 No Exceptions
Estimating 179D from a EA 1 Credit Worksheet
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LEED 2.2 Adjusted to 2001Proposed(Mbtu) Baseline(Mbtu) Baseline(Mbtu)
Interior Lighting 892.8 1695 2542.5Space Heating-Gas 571.2 76.5 76.5Space Cooling 541.4 679.5 679.5Pumps 36.7 21.6 21.6Heat Rejection 92 257.5 257.5Fans-Interior 719.8 2647.5 2647.5Service Water Heating-Elec 6.2 6.2 6.2Service Water Heating-Gas 819.9 1046 1046
Electricity Cost($/MBtu) 16.69$ 16.45$ 16.45$ Natural Gas($/Mbtu) 7.61$ 8.93$ 8.93$
Electricity Costs 38,198$ 87,288$ 101,227$ Natural Gas Costs 10,584$ 10,014$ 10,014$
48,782$ 97,302$ 111,241$ 49.87% 56.15%
The Modeler’s role
Analyze existing projects for EPAct potential– Communicate the potential to Management
Most projects are on the margins(between 0&1 or 1&2 deductions)
– Suggest design improvements to capture additional EPAct $’s
Modeling is now a profit center for government projects More & more rebates are based on modeled results Additional EPAct $’s corresponds with added LEED pts.
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Energy Tax Savers Inc.
http://www.energytaxsavers.com/
Energy Tax Savers12 Split Rock Rd.
Syosset, NY 11791Phone: 516.364.2630Fax: 516.364.2646
Email: [email protected]
