The Greening of the Rooftop

Module 10

Green Roofing & Public Policy

Regulations & Incentives

Green Roofing & Public Policy

Green Incentives

• Federal Policies

• State & Local Programs

Green Roofing & Public Policy

Green Incentives

• Energy– Clean Energy (Solar, Wind)

– Energy Efficiency

• Water– Storm Water & Roofs

• Air– Clean Air / Clean Energy

• Federal Tax Incentives– Energy Policy Act of 2005– Energy Improvement and Extension Act of 2008

• Federal Purchasing Policies– Energy Policy Act of 2005– Energy Independence & Security Act of 2007– Executive Order 13423

• State & Local Policies & Incentives

Green Roofing & Public Policy

Clean Energy / Energy Efficiency

Energy Policy Act of 2005 / Energy Improvement & Extension Act of 2008

• Commercial Solar Investment Tax Credit

• Residential Solar / Wind Tax Credit

• Residential Energy Efficiency Credit

• Commercial Building Tax Deduction

• Clean Energy Bonds

Key Roofing-Related Provisions

Energy Policy Act of 2005 / Energy Extension & Improvement Act of 2008

Commercial Solar Tax Credit(As applied to roofs)

• Applies to new or existing buildings

• The 30% tax credit may be applied toward– Roof-mounted photo-voltaic systems (including balance of system)– Roof-mounted solar water heating systems– Building integrated photo-voltaics (BIPV)

• The 30% tax credit may be combined with other available incentives

– State rebates & tax credits– Utility company rebates – Utility company power purchase agreements

(1) IRS Notice 2008-40

Energy Policy Act of 2005 / Energy Extension & Improvement Act of 2008

Residential Clean Energy Credit(As applied to roofs)

• Applies to new or existing homes

• A 30% tax credit may be applied toward– Roof-mounted photo-voltaic systems (including balance of system)– Roof-mounted solar water heating systems– Building integrated photo-voltaics (BIPV)– Roof-mounted wind power ($4000 cap)

• The federal tax credit may be combined with other available incentives

– State rebates & tax credits– Utility company rebates

(1) IRS Notice 2008-40

Energy Policy Act of 2005 / Energy Extension & Improvement Act of 2008

Residential Energy-Efficiency Credit(As applied to roofs)

• Applies to new or existing homes

• A $300 tax credit may be applied toward– Installation of roof skylights– Installation of Energy Star-rated metal roofing– Added roof insulation

• The 30% tax credit may be combined with other available incentives

– State rebates & tax credits– Utility company rebates

(1) IRS Notice 2008-40

Energy Policy Act of 2005 / Energy Extension & Improvement Act of 2008

Commercial Building Tax Deduction

• Applies to new or existing buildings

• Available through 2016

• A total $1.80 tax deduction may be divided between partial deductions for:

– Lighting systems: $0.60 / sq. ft.– Heating & cooling systems: $0.60 / sq. ft.– Building envelope: $0.60 / sq. ft.

• The tax deduction may be taken for both private and public projects:

– Private Project: The building owner may receive the deduction– Public Project: The building designer may receive the deduction (1)

(1) IRS Notice 2008-40

New!!

How the Commercial Building Tax Deduction Works

Building Envelope Partial Deduction

• In order to qualify for the $0.60 partial deduction, the building envelope must provide at least a 10% reduction over ASHRAE 90.1-2001 in the combined usage of the building’s heating, cooling, ventilation, hot water, and interior lighting systems(1)

• Energy calculations must be performed and certified by a design professional using approved energy software(2)

• The deduction must be taken in the year the building or the energy improvement is placed in service

• Roof insulation and reflective roof surfaces may be used in part to achieve the 20% reduction

(1) IRS Notice 2008-40(2) List of approved software available at http://www.eere.energy.gov/buildings/info/tax_incentives.html

How the Commercial Building Tax Deduction Works

Lighting Partial Deduction

• Total building lighting power density must provide at least a 25% reduction(1) beyond current requirements of ASHRAE 90.1-2001

– 25% reduction earns $0.30 per sq. ft. deduction– 40%% reduction earns $0.60 per sq. ft. deduction– Deduction may be interpolated between 25% and 40%

• Energy calculations must be certified by a design professional(1)

• The deduction must be taken in the year the building or the energy improvement is placed in service

• Rooftop daylighting may be used in part to reduce total power density

(1) IRS Notice 2008-40

Federal Energy Tax Incentives

Find Out More …

http://www.energytaxincentives.org/

The Tax Incentives Assistance Project

Current Federal Energy Policy

Federal Energy Purchasing Policies

• Energy Policy Act (2005) / Energy Independence and Security Act (2007)

– All new Federal buildings must be constructed to provide a minimum 30% reduction in energy consumption beyond ASHRAE 90.1-2001 (1)

– Provides preference for Energy Star -labeled products (2) , including Energy Star Commercial Roofing Products

– Requires that at least 30% of hot water requirements in Federal buildings must be provided by solar water heating

(1) To the extent that the construction is life-cycle cost-effective(2) To the extent that the product is cost-effective

Current Federal Energy Policy

Federal Energy Purchasing Policies

• Executive Order 13423 (Green Power Purchasing)

– Sets long-term goals for clean energy usage by the Federal government• 3% in 2007-2009• 5% in 2010-2012• 7.5% in 3013 and beyond• At least 50% of clean energy must come from new sources

– Sets a goal of at least 20,000 solar energy systems on Federal buildings by 2010 (Million Solar Roof Initiative)

Green Roofs, Clean Energy & Energy Efficiency

State & Local Incentives

• Incentives may take many forms:– Tax credits (income / property / sales)

– Fee reductions / exemptions

– Grants

– Loans

– Rebates

Corporate Tax CreditsRenewable Energy Production Tax CreditRenewable Energy Technologies Investment Tax Credit

Sales Tax Exemptions Renewable Energy Equipment Sales Tax Exemption

State Grant Programs Renewable Energy Technologies Grants Program

State Rebate Programs Solar Energy System Incentives Program

Utility Rebate Programs Florida Power and Light - Business Energy Efficiency RebatesGainesville Regional Utilities - Commercial Energy Efficiency Rebate ProgramGainesville Regional Utilities - Solar-Electric (PV) System Rebate ProgramJEA - Solar Incentive ProgramProgress Energy Florida - Commercial Building Envelope Improvements ProgramProgress Energy Florida - Commercial Equipment Rebate ProgramsTampa Electric - Commercial Cooling Energy Efficiency Rebate Program

State Incentives Example

State of Florida (1)

(1) Partial ListingSource: http://www.dsireusa.org/

Property Tax Exemption Property Tax Exemption for Renewable Energy Systems

Sales Tax Exemption Sales and Use Tax Exemption for Energy-Efficient Products Sales and Use Tax Exemption for Solar and Geothermal Systems

State Grant Program CCEF - On-Site Renewable DG Program

State Rebate Program CCEF - Solar PV Rebate Program

Utility Rebate Program Connecticut Light & Power - Operation and Maintenance ProgramConnecticut Light & Power - Small Business Energy Advantage ProgramGroton Utilities - Commercial & Industrial Energy Efficiency Rebate ProgramsThe United Illuminating Company - Small Business Energy Advantage Program

State Incentives Example

State of Connecticut (1)

(1) Partial ListingSource: http://www.dsireusa.org/

Roofs, Clean Energy & Energy Efficiency

State & Local Incentives

Database of State Incentives for Renewables and Efficiency (DSIRE)

http://www.dsireusa.org/

Check out the incentives in your state – all at one web site:

Green Roofing & Public Policy

Clean Water

• Federal Policy– Legislation: Clean Water Act (1985) / Water Quality Act (1987)

– Enforcement: Environmental Protection Agency (EPA)

• State & Local Policy– Legislation: Varies, but tends to follow Clean Water Act

– Enforcement: State environmental agencies participate in enforcing the Clean Water Act

Clean Water Act

The Clean Water Act & Storm Water Runoff

(1) Natural Resources Defense Council v. Train, 396 F.Supp. 1393 (D.D.C. 1975), aff'd. by NRDC v. Costle, 568 F.2d 1369 (D.C. Cir. 1977).

• The Clean Water Act (1985) directed the EPA to regulate water pollutants, but the act did not specifically direct the EPA to regulate storm water runoff.

• In a 1975 decision(1), the U.S. Supreme Court ruled that storm water was covered by the Clean Water Act and must be regulated

• This decision has lead to a variety of regulatory approaches to decrease pollution caused by storm water runoff.

Clean Water ActStorm Water Runoff and Combined Sewer Overflows

Source: Clean Solutions for Omaha (http://projects.ch2m.com/Omaha_CSO/Faq.htm)

Combined sewer system are remnants of the country's early infrastructure and so are typically found in older communities. Combined sewer systems serve roughly 772 communities containing about 40 million people.

Clean Water Act

Combined Sewer Overflows

Cities with Combined Sewer Systems

Source: US EPA

Combined Sewer Overflows

Urban Sewer Overflow Strategies

• Replace combination sewers with separate storm / sanitary sewers ($$$$)

• Construct overflow holding tanks to hold storm overflows and gradually divert to the treatment plant ($$)

• Construct water-retaining vegetated roofs on urban buildings ($)

Combined Urban Sewer Overflows

Communities with Vegetated Roof Incentives

Fast-track project approval & reduced permit fees

Limited investment offsets

Pilot offset incentive program

Reduced development fees

Chicago:

Portland:

New York City:

Minneapolis:

… and more on the way

Source: Green Roofs For Healthy Cities

City: Incentive:

Find out more from Green Roofs for Healthy Cities

Green Roofs Tree of Knowledge:

http://greenroofs.org/grtok/index.php

Combined Urban Sewer Overflows

Communities with Vegetated Roof Incentives

Green Roofing & Public Policy

Clean Air

• Federal Policy– Legislation: Clean Air Act (1963 -1990)

– Enforcement: Environmental Protection Agency (EPA)

• State & Local Policy– Legislation: Varies, but tends to follow Clean Air Act

– Enforcement: State environmental agencies participate in enforcing the Clean Air Act

Clean Air Act

The Clean Air Act & CO2

• The Clean Air Act (1963) directed the EPA to regulate air pollutants, but the EPA did not consider CO2 and other greenhouse gasses to be pollutants

• In a 2008 decision(1), the U.S. Supreme Court ruled that CO2 and other greenhouse gasses were covered by the Clean Air Act and should be regulated

• This decision may lead to a variety of new regulations, including peak energy consumption limits, carbon caps, carbon trading, etc.

(1) Commonwealth of Massachusetts et al. v. Environmental Protection Agency

Clean Air Act

Roofing & Clean Air Policy

In general, clean air policy in roofing will involve energy regulations and incentives:

– Roof Energy Efficiency • Cool Roofing

• Highly-Insulated Roofing

– Clean Rooftop Energy• Photo-Voltaic• Daylighting• Wind