ASHRAE Government Affairs Update, 05/11/07

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• DOE Sets the Date for the 2007 Solar Decathlon 
• Canada Extends Clean Energy Tax Breaks 
• IPCC Report Says Clean Energy Technologies Could Curb Climate Change  
• Energy Efficiency Building Technology Application Centers to be Funded 
• Massachusetts Files Case on HVAC Efficiency Standards 
• DOE to Host Lab Tech Transfer Workshop  
• USGBC Reports on Federal Green Building R&D  
• Upcoming Congressional Hearing
  

DOE Sets the Date for the 2007 Solar Decathlon

DOE announced that the third Solar Decathlon competition will be held from October 12th through the 20th in Washington, D.C. The event requires university teams to build and operate energy-efficient solar-powered homes on the National Mall, forming a temporary "solar village." In January 2006, DOE selected 20 teams to participate in the competition, and all 20 are still in the running. The increasingly international competition includes teams from the United States, Puerto Rico, Canada, Spain, and, for the first time, Germany. Sixteen teams represent universities in 13 states: California, Colorado, Georgia, Illinois, Kansas, Maryland, Massachusetts, Michigan, Missouri, New York, Ohio, Pennsylvania, and Texas.

As the name implies, the Solar Decathlon judges the homes in ten areas, including architecture, engineering, livability, comfort, power generation for space heating and cooling, water heating, and powering lights and appliances. Each home must produce enough net energy to power an electric car. The homes will include the latest high-tech energy solutions without sacrificing comfort, convenience, and aesthetics. The teams will partially build their entries on or near their campuses and then ship the entries to Washington, D.C., for final assembly, a necessity that creates extra challenges for the teams from the West, Puerto Rico, and Europe.

The homes will be displayed on the National Mall for nine days. Visitors can tour the homes daily (except for Wednesday, October 17th) and visit with the teams to learn about the design and construction techniques. The 2002 and 2005 competitions drew more than 100,000 visitors to the solar village; the University of Colorado won the overall competition both years. See the Solar Decathlon Web site .

Canada Extends Clean Energy Tax Breaks

The Government of Canada is bolstering its commitment to industrial energy efficiency and to reducing greenhouse-gas emissions by enhancing Class 43.2 of the Income Tax Act for companies willing to invest in energy-efficient processes and equipment.

Class 43.2 is an innovative tax write-off for efficient cogeneration systems and other renewable and energy-efficient systems. Class 43.2 makes these systems more fiscally attractive by providing an accelerated rate of write-off for certain capital expenditures. The tax write-off allows companies to deduct the cost of eligible equipment at up to 50 percent per year, on a declining-balance basis. Without this accelerated write-off, many of these assets would depreciate at lower rates.

The Canadian federal budget that was presented on March 19, 2007, extends the timeframe for applications for the accelerated capital cost allowance (CCA) for clean energy generation from the end of 2011 to the beginning of 2020. As well, Budget 2007 adds wave and tidal-energy equipment to the list of technologies eligible for the CCA , and broadens the regulatory definitions for technologies already on that list.

Budget 2007 also increases CCA rates for certain energy-related assets. The CCA rates for buildings used for manufacturing and processing increased from 4 to 10 percent. The CCA rates for natural gas distribution lines changed from 4 to 6 percent and the rates for liquefied natural gas facilities rose from 4 to 8 percent. Measures in Budget 2007 that promote industrial energy efficiency and emissions reductions include the following:

• Budget 2007 proposes to temporarily increase the CCA rate for manufacturing and processing machinery and equipment that would otherwise be included in Class 43 to a 50-percent straight-line rate. Currently, machinery and equipment used in manufacturing or processing is generally eligible for a CCA rate of 30 percent. The increased rate will apply to eligible machinery and equipment acquired between March 19, 2007 and 2009.
• The budget states that more than $1.5 billion will be provided to the Canada ecoTRUST ($506 million over the next three years). The ecoTRUST was announced by the government on February 12, 2007, and was designed as a third-party trust to help support provincial and territorial initiatives aimed at reducing greenhouse-gas emissions and air pollution.
• Budget 2007 outlines investments of up to $2 billion to support renewable fuel production in Canada. Specifically, the budget provides $1.5 billion over seven years toward an operating incentive for producers of renewable fuels. As well, the budget provides $500 million to Sustainable Development Technology Canada (SDTC ) over seven years to invest in the commercialization of next-generation renewable fuels technology.

IPCC Report Says Clean Energy Technologies Could Curb Climate Change

The Intergovernmental Panel on Climate Change (IPCC) released a report last week concluding that the world community could slow and then reduce global emissions of greenhouse gases (GHGs) over the next several decades by exploiting cost-effective policies and current and emerging technologies. The IPCC report emphasizes energy efficiency across all sectors: in buildings, transportation, and industry. It also calls for greater use of solar energy in buildings and biofuels in vehicles. In terms of power generation, the report points to both mature and emerging renewable energy technologies and also suggests a shift to less carbon-intensive fossil fuels and the development of carbon capture and storage technologies. The report estimates that by 2030, another $20 trillion will be spent to upgrade global energy infrastructure, and i nvestments to reduce GHGs would add at most a 10 percent premium to those investments. See the Summary for Policymakers of the IPCC report (http://www.ipcc.ch/SPM040507.pdf).

Energy Efficiency Building Technology Application Centers to be Funded

The National Energy Technology Laboratory, on behalf of the Office of Energy Efficiency and Renewable Energy’s Building Technologies Program, intends to issue a Funding Opportunity Announcement (FOA) to select and fund Energy Efficient Building Technology Application Centers. This FOA is expected to be issued on or about May 15, 2007. The goal of this funding opportunity is to establish geographically and climatically diverse Energy-Efficient Building Technology Application Centers. This goal supports the EERE Strategic Plan to increase the energy efficiency of the Nation’s buildings and the Building Technology Program’s Technology Validation and Market Introduction activity goal of accelerating the widespread market adoption of energy-efficient building technologies and practices. It also encourages demonstration and commercial application of advanced energy methods and technologies through educat ion and outreach to building and industry professionals, and other individuals and organizations with an interest in efficient energy use.

For more information, see the Federal Register notice (72 FR 26085) at http://www.gpoaccess.gov/fr.

Massachusetts Files Case on HVAC Efficiency Standards

Massachusetts Attorney General Martha Coakley's Office filed suit against the Federal Department of Energy (DOE) over the agency's decision not to amend the energy efficiency standard for certain commercial heating, ventilation and air conditioning systems. These products account for a significant share of total U.S. energy consumption and are commonly used in offices, schools and hotels. According to DOE's own studies, tightening the standards for air conditioning products alone could save an estimated 2.913 quadrillion BTUs (a basic unit of thermal heating energy) over a 27-year period, thereby eliminating the need to construct several major power plants. The case was filed in the United States Court of Appeals for the First Circuit. The Natural Resources Defense Council, filed a parallel challenge in the Second Circuit. Earthjustice, a non-profit, public interest law firm, is handling the case for NRDC.

In 2006, the DOE proposed strengthening the standard for certain heating, ventilating and air conditioning systems. On March 7, 2007, the agency refused to move forward its original proposal, claiming that it lacked any statutory authority to do so. Specifically, the DOE interpreted the Energy Policy Act of 2005 as preventing it from tightening the standard until 2010. The Commonwealth disagrees with the new interpretation.

This legal challenge comes on the heels of Massachusetts' April 2 victory over the federal government in the global warming case before the U.S. Supreme Court. Attorney General Coakley commented, "We intend to continue to press the federal government to live up to its statutory responsibilities to address excess emissions of greenhouse gases and other air pollutants. If the federal government focused on problem solving rather than trying to avoid doing its job, we would be much closer to solving many of our environmental problems."

DOE to Host Lab Tech Transfer Workshop

The Department of Energy’s (DOE) 2007 National Laboratory Technology Transfer Workshop will be held on May 30 – June 1, 2007, at the Hyatt Regency Hotel in Crystal City, VA. The intent of this open “townhall” type workshop is to explore technology transfer at the labs, with a particular focus on opportunities and issues in private sector partnerships, lab transparency, and innovative financial mechanisms that encourage entrepreneurial activity and accelerate commercialization.

All output from the presentations, Q&As, and open public dialogue on May 30 and the morning of May 31 will be gathered and distributed to DOE Senior Managers, National Lab Tech Transfer Directors and M&O contractor staff for consideration during their closed sessions for the remainder of the workshop, concluding with a set of core recommendations that will help direct detailed development of a technology transfer action plan for the Department.

For questions, contact Charles Russomanno at 202-586-7543, charles.russomanno@ee.doe.gov, Jamileh Soudah at 202-586-2104, or John Labarge at 202-586-9747.

USGBC Reports on Federal Green Building R&D

The U.S. Green Building Council (USGBC) Research Committee has called for a higher level of funding for research that will advance building design, technology and operations that minimize environmental and human health impacts. A new report published by the Committee, Green Building Research Funding: An Assessment of Current Activity in the United States (http://www.usgbc.org/ShowFile.aspx?DocumentID=2465) finds that research related to high-performance green building practices and technologies amounts to only 0.2% of all Federally funded research – an annual average of $193 million per year (2002-2005) and only 0.02% of the estimated value of annual U.S. building construction and renovation. Meanwhile, building operation consumes 40% of energy and 71% of the electricity in the U.S., and accounts for 38% of the country’s carbon dioxide emissions, which is directly influencing global climate change. The building sector requires exponential performance improvements pursuant to its critical role in environmental problems and solutions, and funding for research, development and deployment activities must be significantly expanded to meet this need.

USGBC initially recommends that the two Federal agencies with the primary function of funding academic research—the National Science Foundation and the National Institute of Health—direct at least 2% of their research budgets toward issues related to green building research, development and technology transfer in the near term.

Federal agencies recognized for their leadership and encouraged to devote more research funds to green building topics include the Department of Energy, Environmental Protection Agency, National Institute of Standards and Technology, Department of Housing and Urban Development, General Services Administration, Department of Defense, and the Department of Health and Human Services (Centers for Disease Control and Prevention).

For the purpose of having a simple benchmark, the USGBC Research Committee proposes a total conservative investment for Federal funding of 0.10% of annual construction value ($1 trillion), or $1 billion (based on 2004 data).

Upcoming Congressional Hearing:

Senate Committee on Environment and Public Works
Green Buildings: Benefits to Health, the Environment, and the Bottom Line
May 15, 2007, 10:00 am
406 Dirksen Senate Office Building
http://epw.senate.gov/