Legislation to Energize Boulder
Get Behind 2010 Legislation for Decarbonizing Colorado!

“You can’t manage what you don’t measure,” said Seattle City Council Chair Richard Conlin. “Energy disclosure is a key first step to tap into the gold mine of opportunities to save energy and money while improving the City’s existing building stock. I’d like to thank all the members of the Green Building Task Force and other stakeholders who helped create this new ordinance that will save energy and create new jobs in Seattle.”

You can read more about the new Energy Disclosure Ordinance here.

Unlike previous years, this year Congress left for holiday recess without extending this important $2,000 tax credit.  Thus, the 2005 EPAct Builders Tax Credit expired on December 31, 2009.  The failure of Congress to extend this important energy efficiency tax credit is surprising in light of the extraordinary governmental support of energy efficiency initiatives in 2009.  Despite the national groundswell of attention given to energy efficiency and the green energy economy over the last year, the expiration of this tax credit represents a step backwards for the residential energy efficiency movement.

So that’s the bad news.

Now here’s the good news.  Congress is scheduled to return from recess in mid-January 2010 and several residential energy efficiency organizations are gearing up to push for an extension of this important tax credit (and hopefully advocating for additional tax incentives for achieving an above-code Home Energy Rating Score).

While many in Congress have voiced support for legislation that promotes energy efficiency and green job creation, it seems that there are some who do not understand the substantial impact that this tax credit has had in promoting energy efficiency in the residential housing market.  We need to make sure Congress understands.  It is imperative that builders, energy raters and building professionals let their representatives know how important this tax credit has been to their clients over the last few years and how effectively it has promoted high-performance home construction.

If you haven’t already done so, email or call your representatives in Congress and let them know that you support tax credits for builders who build energy efficient homes that demonstrate above-code performance.  Not sure what to say?  Then just go ahead and forward them this blog post.

If you’re a member of Congress who wants a better understanding of how the $2,000 tax credit operates and has worked at promoting residential energy efficiency, give Populus Sustainable Design Consulting a call at 303-325-7650 and we’d be happy to share our experiences with you.

Populus is a full service sustainable design consulting firm that focuses on high performance, net-zero and near-net-zero custom residential and multi-family projects.  Populus guides architects and builders through the requirements of mandatory green building codes and optional green home certification programs, providing HERS rating, LEED for Homes Green Rater services and municipal energy code consulting.  In addition, Populus offers an Energy Code Workshop for architects and municipalities, as well as LEED for Homes training.  Visit Populus at www.popboulder.com.

If you’re looking for an informative breakdown of the proposed legislation, including a general overview of how the proposed cap and trade regulatory scheme would operate, check out this helpful Faegre & Benson Climate Change Law Update webcast.  The webcast contains four parts, addressing federal legislative proposals, carbon offsets, federal regulation and case law, and regional and international programs.

Want to learn more? See the White House press release and a transcript of  the president’s remarks.

Populus is a full service sustainable design consulting firm that focuses on high performance, net-zero and near-net-zero custom residential and multi-family projects.  Populus guides architects and builders through the requirements of mandatory green building codes and optional green home certification programs, providing HERS rating, LEED for Homes Green Rater services and municipal energy code consulting.  In addition, Populus offers an Energy Code Workshop for architects and municipalities, as well as LEED for Homes training.  Visit Populus at www.popboulder.com.

What are President Obama’s targets for GHG reductions?  Initially, the U.S. will pursue a 17% reduction below 2005 levels by 2020 (to put this goal in historic context, the modest Kyoto targets were 7% below 1990 levels).  This proposed target corresponds to the GHG limits contained in the climate change legislation passed by the U.S. House.  It is worth noting that the U.S. Senate is considering a bill that would set a more aggressive target of 20% below 2005 levels by 2020.  Long term, President Obama has a stated goal of an 83% reduction in GHG emissions by 2050.  These long-term goals have been incorporated into pending climate change legislation by targeting 30% below 2005 levels by 2025 and to 42% below 2005 levels by 2030 (the same year that the Department of Energy is targeting affordable zero energy homes for all Americans).

In addition to President Obama, several top White House officials and cabinet members are also expected to attend the Copenhagen conference, including Energy Secretary Steven Chu.  For the first time in history, the United States will establish a Center at the conference where top U.S. officials will deliver keynote speeches on energy efficiency and climate change.  In a sign of the times, the U.S. Department of State has established a “COP-15″ Facebook page and website to track the event.

See the White House press release, the COP-15 Web site, and COP-15 Facebook Page.

In a parallel move, the day after the White House announced U.S. GHG targets, China announced a reduction of the “carbon intensity” of its emissions by 40%-45% by 2020.  This measure of emissions, which differs from the U.S.’s emission measurements focuses on the amount of CO2 emissions per unit of GDP.  China’s measurement would mean that total GHG emissions in China would actually increase from today’s levels, but would result in far less GHG emissions than the expected increases associated with the rapid growth of the economy in China.  To achieve these binding goals, China will focus on research, development and commercialization of energy efficiency and renewable energy technologies and encourage low-carbon lifestyles.  In addition, China’s Premier will attend the Copenhagen conference.

Populus is a full service sustainable design consulting firm that focuses on high performance, net-zero and near-net-zero custom residential and multi-family projects.  Populus guides architects and builders through the requirements of mandatory green building codes and optional green home certification programs, providing HERS rating, LEED for Homes Green Rater services and municipal energy code consulting.  In addition, Populus offers an Energy Code Workshop for architects and municipalities, as well as LEED for Homes training.  Visit Populus at www.popboulder.com.

To find out more about these sustainability and green building initiatives throughout the nation, see the AIA’s new report, Green Building Policy in a Changing Economic Environment, which also contains policies and recommendations to assist policymakers in advancing sustainability and green building.  You’ll also find case studies that highlight the green building programs in several cities, including Boston, Philadelphia, LA and Grand Rapids.

In light of the economic downturn during the last two years, AIA Executive Vice President / CEO, Christine McEntee, finds the results of the AIA’s survey encouraging and a sign “that cities are recognizing the economic benefits of energy-efficient buildings.”  The AIA is a prominent adopter of the 2030 Challenge and has committed to a goal of carbon neutral (zero energy) buildings by 2030, in addition to its goal that “all design projects will be sustainable as a matter of course.”

Populus is a full service sustainable design consulting firm that focuses on high performance, net-zero and near-net-zero custom residential and multi-family projects.  Populus guides architects and builders through the requirements of mandatory green building codes and optional green home certification programs, providing HERS rating, LEED for Homes Green Rater services and municipal energy code consulting.  In addition, Populus offers an Energy Code Workshop for architects and municipalities, as well as LEED for Homes training.  Visit Populus at www.popboulder.com.

Do you support legislation to increase the efficiency of the built environment and incentivize high-performance homes?  It is essential that your support be heard in Washington – contact your Senators and urge them to support legislation to extend and create tax credits for energy efficient homes.

In Colorado, contact Michael Bennet (D-CO) at 202-224-5852 and Mark Udall (D-CO) at 202-224-5941.

This morning, Treasury Secretary Tim Geithner and Energy Secretary Steven Chu hosted a group of clean energy developers and manufacturers at the White House to discuss how the American Recovery and Reinvestment Act (Recovery Act) is creating jobs and helping expand the development of clean, renewable domestic energy. At the meeting, Secretaries Geithner and Chu announced $550 million in new awards through the Recovery Act’s 1603 program, bringing the total to more than $1 billion awarded to date to companies committed to investing in domestic renewable energy production.

“This Recovery Act program is an example of a true federal partnership with the private sector,” said Treasury Secretary Geithner. “Not only are our Recovery dollars meeting an immediate funding need among innovative companies, they are also jumpstarting private sector investment in communities across the country—with benefits for the renewable energy industry and our economy alike.”

Said Secretary Chu: “These investments are crucial to ensuring America can compete and win in the race for the clean energy jobs of the future. With American workers and American innovation, we can and must lead the world when it comes to the new Industrial Revolution in clean energy.”

Created under Section 1603 of the Recovery Act, the program provides cash assistance to energy producers in place of tax credits. The payments improve project viability, enabling companies to create and retain jobs, and establish sufficient financing bases for projects that may otherwise not be possible, dramatically expanding and accelerating the development of renewable energy projects throughout the country. Under this program, the federal government provides a cash payment in lieu of a tax credit totaling 30% of the qualifying cost of the project; for each federal dollar spent in payments, more than two dollars are spent in private sector investments.

Today the Treasury Department will make the second round of awards, all of which will be made in half the statutorily mandated turnaround time of 60 days. The first round of awards totaling $502 million was announced on September 1, 2009. Today’s announcement provides an additional $550 million. The 1603 program is having an immediate effect on the renewable energy industry by significantly increasing the availability and liquidity of project capital in three ways:

• Recycling grants into new projects. Project developers are able to begin construction of additional projects thanks to the extra capital from the grants they are receiving.
• Increasing the flow of capital. By reversing the drop in availability of equity investment available, the 1603 program brings significant private capital off the sidelines to finance more renewables projects.
• Attracting investment for domestic projects. Large project developers allocate capital across many countries, and the 1603 program is attracting billions of dollars of additional capital towards projects in the US.

Project developers receiving awards through this program participated in today’s meeting, including Ameresco, First Wind, Horizon Wind, and Sun Edison. Also participating were several renewables manufacturers who supply these developers, including Cardinal Fastener, GE Energy, Gamesa, Solyndra, and Vestas Americas.

• At a site in Pittsburgh, California, Ameresco is using a landfill to provide power to the City of Palo Alto. Payments awarded because of this project will allow Ameresco to accelerate its development of renewable energy projects by a minimum of four more domestic projects a year.
• Solyndra is helping to provide energy to a building in downtown Denver, Colorado through solar panels on the roof, a project that would not have been possible without Recovery Act payments.
• Vestas Americas has made a significant investment in developing renewable energy in the United States. The company has allocated $1 billion for new manufacturing facilities throughout the country, and the 1603 program will allow these facilities to be fully operational by 2011.

The following is a chart of the 25 projects that qualified for awards as part of today’s announcement.

STATE	PROJECT/SUBSIDIARY	LOCATION	AMOUNT
California	Bob’s Big Boy, LLC	Burbank, California	$53,648
California	Ameresco Half Moon Bay, LLC	Half Moon Bay, California	$6,641,747
California	Ameresco Keller Canyon, LLC	Pittsburgh, California	$2,796,377
California	BioFuel Oasis Cooperative, Inc	Berkely, California	$16,858
Colorado	5135 Company	Denver, Colorado	$23,130
Florida	Conditioned Air Corporation of Naples	Naples, Florida	$50,250
Hawaii	Two Daughters	Kihei, Hawaii	$15,150
Iowa	Barton Wind Farm	Kinsett, Iowa	$93,419,883
Minnesota	BI	Minneapolis, Minnesota	$25,649
Minnesota	Spruce Tree Centre	St. Paul, Minnesota	$107,764
Missouri	Farmers City Wind Farm	Tarkio, Missouri	$84,959,857
Missouri	Ameresco Jefferson City, LLC	Jefferson City, Missouri	$2,300,244
North Carolina	Solar Billboard Property	Bolivia, North Carolina	$5,850
New Jersey	Meadowlands Exposition Center	Secaucus, New Jersey	$767,937
New Jersey	EHT Leasing, LLC	Egg Harbor Township	$118,560
New Jersey	OC Kearny	Kearny, New Jersey	$992,006
Nevada	Enel Salt Wells, LLC	Fallon, Nevada	$21,196,478
Nevada	Enel Stillwater, LLC	Fallon, Nevada	$40,324,394
New York	OP 110 E. 59th St. CHP	New York, New York	$415,774
South Dakota	Impervious Energy Systems, LLC	Whitewood, South Dakota	$31,511
Texas	Barton Chapel Wind Farm	Jacksboro, Texas	$72,573,627
Texas	Rio Grande Valley Sugar Growers, Inc.	Santa Rosa, Texas	$10,232,261
Texas	Bull Creek Wind, LLC	O’Donnell, Texas	$91,390,497
Texas	Pyron Wind Farm, LLC	Roscoe, Texas	$121,903,306
Vermont	Wheeler Brook Apartments	Warren, Vermont	$19,155

$550,381,913

Washington, D.C. (September 9, 2009):  Energy efficiency provisions in the American Clean Energy Security Act (ACES – H.R. 2454) with improvements could create more than 569,00 new jobs nationwide in the next ten years and provide $283 in annual savings for every  household in America, according to a new study released today by the American Council for an Energy-Efficient Economy (ACEEE).  By 2030, these benefits could increase to more than one million jobs and $832 in annual savings per household – all while reducing government-projected levels of nationwide carbon emissions by 15 percent, or 959 million metric tons.

The new report, “Energy Efficiency in the American Clean Energy and Security Act of 2009: Impacts of Current Provisions and Opportunities to Enhance the Legislation,” underscores the energy efficiency potential – and accompanying benefits – still available as the Senate considers energy and climate legislation. In fact, the examined improvements would result in 48 percent more jobs and 32 percent more consumer savings than the 383,800 jobs and $215 in annual household savings in 2020 than the energy efficiency provisions of ACES, the original House bill, would provide.

“Energy efficiency may not be as hot a topic as cap-and-trade, but it certainly gets the job done when it comes to saving consumers money and creating jobs,” stated Steven Nadel, ACEEE’s Executive Director and co-author of the report. “As our report shows, the Senate can boost those benefits by improving the energy efficiency provisions of the Waxman-Markey bill.”

These improvements would bring economic and environmental benefits to every state in the country. State results of the ACEEE study were released at over forty-five nationwide events organized by Environment America and a broad network of businesses, faith and community leaders, and clean energy advocates. See state-by-state breakdowns at http://www.aceee.org/energy/national/50states.htm.

“We are one of a growing number of companies who recognize that energy efficiency means more jobs, lower costs, reduced emissions, and competitive advantage.  Efficiency can bring economic benefits to every community in America – and we’re proud to work with ACEEE to tap into that incredible potential,” said Mark Wagner, Vice President of Johnson Controls, Inc.

Improvements to ACES considered in ACEEE’s analysis are:

• Strengthening the Energy Efficiency Resource Standard (EERS) that sets a 10% energy savings goal for electric utility companies. (ACES includes a 5% EERS with an optional 3% increase.)
• Requiring one-third of the electric utility allowances to be used for energy efficiency improvements as are the natural gas allowances in ACES.
• Extending the allocation of 9.5% of carbon allowance revenue to the State Energy and Environmental Development (SEED) fund to 2030. (ACESA ramps down SEED fund spending beginning in 2016.)

“These cost-effective improvements would accelerate the energy efficiency benefits of the bill by a decade, bringing big savings to American families and businesses,” concluded Suzanne Watson, ACEEE’s Policy Director.

While this study did not consider the impact on consumers of the cap-and-trade provisions in ACES, the annual household consumer savings from the energy efficiency provisions analyzed in the study would more than offset EPA’s projected consumer cost of the cap-and-trade provisions in ACES, bringing net savings to Americans.

Energy Efficiency in the American Clean Energy and Security Act of 2009: Impacts of Current Provisions and Opportunities to Enhance the Legislation is available for free download or a hard copy can be purchased for $25 plus $5 postage and handling from ACEEE Publications, 529 14th St, N.W., Suite 600, Washington, D.C. 20045, phone: 202-507-4000, fax: 202-429-2248, e-mail: aceee_publications@aceee.org