Energy Tax Savers, Inc. EPAct Presentation

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Energy Tax Savers, Inc.EPAct Presentation
Required Energy Techniques for Modeling building
Energy Tax Savers Jacob Goldman jacob.goldman_at_ener
gytaxsavers.com
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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

jacob.goldman_at_energytaxsavers.com
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Whats 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
jacob.goldman_at_energytaxsavers.com
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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 etc.

jacob.goldman_at_energytaxsavers.com
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Whats 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

jacob.goldman_at_energytaxsavers.com
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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
• Lighting
• HVAC
• Building Envelope

ASHRAE (American Society of Heating,
Refrigerating and Air-Conditioning
Engineers) HVAC (Heating, Ventilation Air
Conditioning)
jacob.goldman_at_energytaxsavers.com
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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
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jacob.goldman_at_energytaxsavers.com
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Where are the Benefits

• Lighting, Lighting, Lighting
• Lighting Controls
• Specific Types of HVAC
• Geothermal
• Thermal Storage
• Central Chiller plants with small
  buildings(lt150,000sq.ft.) in Campus
• LEED Buildings

jacob.goldman_at_energytaxsavers.com
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Commercial Building Immediate Deduction

• Permanent Rules
• 16 ? 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

jacob.goldman_at_energytaxsavers.com
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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
  ltVirtual Environmentsgt
• 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.

jacob.goldman_at_energytaxsavers.com
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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
jacob.goldman_at_energytaxsavers.com
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EPAct Modeling Technique

• HVAC Example
• Model and size your actual building and HVAC
  system
• Model a reference building designed to ASHRAE
  90.1 2001 data using Title 24 loads and ASHRAE
  90.1 2004 Appendix G methodology.
• 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.

See NREL/TP-550-40467, May 2007
jacob.goldman_at_energytaxsavers.com
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From ASHRAE 90.1 2004 Appendix G
jacob.goldman_at_energytaxsavers.com
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Techniques for Achieving HVAC Tax Savings

• More Efficient than Reference Equipment
• Put in Highly efficient equipment and add
• VFDs
• Economizers
• Demand Ventilation
• Energy Recovery Ventilation
• Etc.
• Different Equipment than Reference Equipment
• Chillers where Packaged Units are in the
  Reference Building
• Central Plant
• Geothermal
• Take advantage of Time of Day Energy Pricing
• Thermal Storage

jacob.goldman_at_energytaxsavers.com
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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 lt 150,000 sq ft
8. Blow through heaters in no AC Industrial Spaces
9. VAV (variable air volume devices) in buildings
   lt75,000 sq ft
10. Chilled Beam
11. Magnetic Bearing Chillers
12. Gas fired chillers combined with electric
    chillers to peak shave

jacob.goldman_at_energytaxsavers.com
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Electric Chillers in Baseline
From ASHRAE 90.1 2004 Appendix G
jacob.goldman_at_energytaxsavers.com
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jacob.goldman_at_energytaxsavers.com
From NREL Technical Report NREL/TP-550-40467 May
2007
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Use NREL Technical Report NREL/TP-550-40467 May
2007
jacob.goldman_at_energytaxsavers.com
From ASHRAE 62 1999
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Use ASHRAE 90.1 2001
Use ASHRAE 62 1999
jacob.goldman_at_energytaxsavers.com
From NREL Technical Report NREL/TP-550-40467 May
2007
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(No Transcript)
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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
jacob.goldman_at_energytaxsavers.com
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Estimating 179D from a EA 1 Credit Worksheet
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The Modelers role

• Analyze existing projects for EPAct potential
• Communicate the potential to Management
• Most projects are on the margins(between 01 or
  12 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 Savers 12 Split Rock Rd. Syosset, NY
11791 Phone [phone] Fax
516.364.2646 Email jacob.goldman_at_energytaxsavers
.com