"The Perfect Storm- In a Good Sense..."

"Isn’t it great when everything good comes together all at once! That is what is
happening now for NEMA members companies, their direct business partners,
specifiers, contractors, and end users.

Federal lighting product legislation,Department of Energy rulemakings,federal energy-saving goals, utility incentive programs, the the federal Energy Efficient Commercial Building Tax Deduction Program (CBTD), and state and community incentive programs are working together to educate end users of the value of using energyefficient products. Incentives that also help sell system upgrades in existing buildings may come from lighting services companies and energy services companies. They provide financing that, in some cases, eliminates upfront costs for the owner, who in many cases may be a tenant. The “owner” uses the money saved from
reduced utility bills to pay off the costs of the upgrades over time. We should be using all these tools to market the benefits of energy efficient products to end users and help consumers pay for them through the various incentive programs. We can count on the federal Commercial Building Tax Deduction program through 2013. The most recent extension covers projects completed
by December 31, 2013. This program is especially valuable in areas where there are no utility incentive programs. It covers new construction as well as upgrades. Covered systems include interior lighting systems, HVAC / hot water, and building envelope systems that beat the allowances of the ANSI/ASHRAE/ IESNA Standard 90.1-2001. If all three systems meet the criteria, the owner can qualify for up to $1.80 per square foot; if only one of the three systems does, the owner can qualify for up to $0.60 per square foot. Each project must be certified to be compliant by a qualified individual. A qualified individual is a licensed professional contractor or engineer in the jurisdiction where the project is located. Some certifiers have listed themselves on the National Lighting Bureau website (www.nlb.org). Click on the box titled “Search for an EPAct 2005 Qualified Certifier.” In the retail industry, it is common for the tenants to supply the interior lighting and HVAC / hot water systems. We have also seen cases where tenants in other market segments have reached agreements with owners to purchase and install tenant-owned systems. These tenants had long leases and had to pay utility bills, so they reaped the benefits of lower utility costs. Since the tenants were the owners of the assets (the new systems), they were eligible for the tax deduction. Why would owners be interested in upgrading their buildings if their tenants pay the utility bills? First of all, leases expire. When the time comes to renew leases, the competition may be newer buildings designed with more energy efficient systems— systems that can translate to lower costs for tenants. Tenants might be federal government agencies who must evaluate the energy efficiency of the spaces under consideration. Spaces with old systems may not meet the standards of the federal government. State and local government tenants may also have to take into account energy efficiency when signing new leases. Upgrading existing buildings has also proven to increase the asset value of those properties. What if the owner is a local state or federal government that does not pay taxes, but is interested in increasing the efficiency of new construction projects or upgrading systems in existing facilities? These projects can qualify. The Commercial Building Tax Deduction program for qualifying projects may be assigned to the designer that creates the technical specification for the project. The designer may be the architect, engineer, contractor, environmental consultant, or energy services provider. There can be more than one designer; so, however, the owner may elect to allocate among the designers. A person that installs, repairs or maintains the property is not a designer. For details on this provision, read IRS Notice 2008-40 (www.irs.gov/irb/2008-14_IRB/ar12.html). If youare not knowledgeable about this program, visit the NEMA website www.nemasavesenergy.org/lighting-upgrades/ default.aspx. You will find a presentation that provides an overview of the program as well as related documents such as applicable IRS Notices and guidelines for inspection and certification. If you have questions, we invite you to submit your questions to NEMA just as distributors, contractors and end users do every day. Contact Ron Runkles, NEMA industry director for the lighting division (ron.runkles@nema.org). enLIGH Ten Ame rica The NEMA Lighting Division–sponsored enLIGHTen America campaign continues to educate end users about the opportunities available to them, as well as NEMA member company products that will help them attain their goals. Activities include the website www. nemasavesenergy.org, print materials, trade shows, seminars, webinars, and articles accompanied by member advertising in publications that target groups of end users, such as Buildings Operating Management, Buildings Magazine, and Today’s Facility Manager. Our most recent webinar attracted 400-plus end users and most stayed through the Q&A session. We also answered any questions not covered during the Q&A session via e-mail after the webinar was completed. Leading the Industry To date, the majority of qualifying projects have been building upgrades with lighting systems upgrades leading the way. As an industry, we are ready with a variety of energy-saving lighting products including lamps, ballasts, luminaires, and controls. NEMA is currently talking with energy advocate groups to find ways to improve and extend the CBTD program. Contact Kyle Pitsor, vice president of government relations(kyle.pitsor@nema.org), to become involved in this effort. Remember, you have until December 31, 2013 to complete projects that qualify for the current federal CBTD program. That’s plenty of time, so get busy! ei Susan Anderson is a member of several NEMA lighting sections, enLIGHTen America, and numerous professional organizations."


Written by Susan Isenhour Anderson, Manager of Energy Relations, Osram Sylvania.
Thank you to NEMA electroindustry for posting this article!
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