Policy

Written by Betsy del Monte, LEED AP

The headlines these days can’t seem to find enough words to trumpet all the concern about sustainable use of resources.  It seems that everything is “going green” and at multiple levels. There are numerous incentives at various levels that are in existence or are in the process of implementation that encourage sustainable construction activities.  Some of the incentives occur at the national level, while others occur at the state or local level.  Together, they will make a significant impact on the adoption of sustainable building practice.  As we have been hearing from the new administration, environmental concerns are a high priority.  This has been substantiated by the shape of the recently passed stimulus package.

 

On February 15, President Obama signed the American Recovery and Reinvestment Act of 2009, which provides approximately $16.8 billion to promote energy efficiency and renewable energy.  While the new stimulus policy is more comprehensive and covers a variety of other programs, some of the primary sustainable issues addressed and funded by the Act are:

• smart-grid technologies
• loan guarantees for renewable energy and transmission
• energy efficiency help to state and local governments
• retrofits to federal buildings
• home weatherization, targeted at low-income families
• carbon sequestration
• loans guarantees and grants to automobile battery-makers

There are quite a few other energy-related items in the Recovery Act beyond those that are listed above.  Some of the specifics of some which may have an impact on the nation’s effort toward sustainability include:

STATE ENERGY PROGRAM
$3.1 billion was included for the State Energy Program.
In order to receive those funds, the Governor must certify that the state will seek to “decouple” utility profits from electricity sales to encourage efficiency, and also will implement energy efficient building codes.
Agency: U.S. Department of Energy

WEATHERIZATION ASSISTANCE PROGRAM
$5 billion was included for the Weatherization Assistance Program. Provisions also expand the eligibility of low income households for the Weatherization Assistance Program and increasing the funding assistance level per dwelling (from $2,500 per dwelling to $6,500).
Agency: U.S. Department of Energy

ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT (EECBG)
$3.2 billion was included for EECBG.
Description: To reduce fossil fuel emissions, decrease overall energy consumption, Improve energy efficiency in the transportation, building, and other energy consuming sectors of the economies of eligible entities.
Agency: Energy Efficiency and Renewable Energy (EERE), U.S. Department of Energy;

ENERGY EFFICIENCY AND RENEWABLE ENERGY RESOURCE
$2.5 billion was included for research, development, demonstration, and deployment.
Of this funding, $800 million is set aside for biomass energy projects, $50 million is set aside for information and communications technology efficiency, and $400 million for geothermal energy projects.
Agency: Energy Efficiency and Renewable Energy (EERE), U.S. Department of Energy

ADVANCED RESEARCH PROJECTS AGENCY (ARPA-E)
$400 million included for the Advanced Research Projects Agency (ARPA-E).
To support high-risk, high-payoff research to accelerate the innovation cycle for both traditional and alternative energy sources and energy.
Agency: U.S. Department of Energy

GEOTHERMAL TECHNOLOGIES PROGRAM
$400 million to be dedicated for geothermal activities and projects.
Research, development and demonstration efforts that emphasize geothermal systems.
Agency: Energy Efficiency and Renewable Energy (EERE), U.S. Department of Energy

ENERGY EFFICIENT APPLIANCE REBATE PROGRAM AND ENERGY STAR PROGRAM
$300 million was included for the Energy Efficient Appliance Rebate program
Description: Approximately 15 states have currently operating to incentivize the purchase of energy efficient appliances. This program would provide federal funds to increase the effectiveness of appliance rebate programs and to encourage states to adopt such programs
Agency: Energy Efficiency and Renewable Energy (EERE), U.S. Department of Energy

ASSISTED HOUSING STABILITY, ENERGY, AND GREEN RETROFIT INVESTMENT STIMULUS PROGRAM
$250 million was included for this program
Grants and loans will be made available through HUD’s Office of Affordable Housing Preservation (OAHP) for eligible property owners to make energy and green retrofit investments in the property, and the continued operation and maintenance of energy efficiency technologies.
Agency: U.S. Department of Housing and Urban Development, Office of Affordable Housing Preservation

BIOMASS PROGRAM
$800 million to be dedicated to projects related to biomass.
For research, development and demonstration for converting biomass resources to biofuels
Agency: Energy Efficiency and Renewable Energy (EERE), U.S. Department of Energy

SMART GRID INVESTMENT PROGRAM
$4.5 billion was included for the Smart Grid Investment Program.
To modernize the electric grid, enhance security and reliability of the energy infrastructure, energy storage research, development, demonstration and deployment, and facilitate recovery from disruptions to the energy supply, and authorized purposes.
Contact: (202) 586-1411 (Office of Electricity, Delivery and Energy Reliability)
Agency: Electricity Delivery and Energy Reliability, U.S. Department of Energy

ALTERNATIVE FUELED VEHICLE PILOT GRANT PROGRAM
$300 million was included for the Alternative Fueled Vehicles Pilot Grant Program.
Establishes a grant program through the DOE Clean Cities Program to encourage the use of plug-in electric drive vehicles or other emerging electric vehicle technologies. Eligible applicants for this competitive grants process are State governments, local governments, metropolitan transportation authorities, air pollution control districts, and private or nonprofit entities.
Agency: Clean Cities Program, Energy Efficiency and Renewable Energy (EERE)

For more info on these and other programs, check the following websites.

• U.S. Department of Energy , www.energy.gov
• www.eere.energy.gov
• www.oe.energy.gov www.oe.energy.gov/smartgrid.htm
• http://www.hud.gov/recovery/aheretrofith.cfm

 

TEXAS STATE LEGISLATURE INCENTIVES

At the state level, the Texas Legislature is in session and energy efficiency and alternative energy generation are hot topics. Over 150 bills concerning those issues have been proposed in the House and the Senate.  While there are many bills dealing with mechanisms and funding for alternative energy sources, the fact that energy efficiency (building and renovating so that a structure will require less energy use) is far more cost effective in the long run seems to be impacting proposed legislation.

The bills covering efficiency range from very broad to very specific.  The broadest bill related to energy efficiency is the “Omnibus” bill, Senate Bill 16, as proposed by Senator Averitt. This bill relates to “the enhancement of air quality, including the capture of carbon dioxide and development of a greenhouse gas registry, the development of emissions reduction technologies, and the improvement of energy efficiency in buildings, vehicles, and appliances; providing civil penalties,” which covers just about everything related to resource conservation.  The bill contains specific requirements in the areas of vehicles and traffic, storage of carbon dioxide, use of new technology, efficiency levels of household appliances, grants and funding for use of new technologies, and it requires a biennial report on the status of all of these.

Other issues being addressed by bills are more specific. Some bills target energy efficient buildings. Because the State of Texas is a significant land and real estate property owner, State owned and operated buildings are a priority.  Multiple bills have been filed relating to design and construction standards for state and higher educational buildings.  Most of these bills require state buildings to meet the standards of a nationally recognized review system which is includes independent verification. Obviously, the USGBC’s LEED Rating System meets these criteria, but so might other systems.  The point of the legislation is to ensure that all state building achieve new levels of efficiency for energy and water use.

Additional bills get into specific details, for example sales tax rebate for purchases and renovations which make a building or home more efficient.  Other bills strive to facilitate green efforts in other ways, such as SB 108 and HB 516, which both propose establishing and funding Green Job Skills training.

As the Texas Legislature is in session until June 1, there is no way to predict which of the bills which have been filed will be approved, but it is clear from the sheer numbers of bills relating to energy efficiency and production that this is seen as a primary issue, and pertinent legislation should be expected.  Anyone who is interested or concerned about these issues should make their opinions known by contacting their state representatives.

The stimulus bill will help landlords invest in alternative energy systems for onsite power generation, but the plan’s other green components are aimed at homeowners, schools and new product development, in local distribution.

Commercial property owners who want government assistance or at least tax breaks to offset the cost can appeal to city and state government programs, which will receive block grants under the stimulus program. The programs funded by those grants will vary by location and may cover such things as better insulation, power-saving light fixtures or high-efficiency heating, ventilation and air conditioning systems. With the block grants to the states there will be discretion for local municipalities in how to structure spending.

However, changes that provide the most immediate sustainable impact may be those which are made at the local level. Many municipalities, both large and small, are adopting or considering adopting green building ordinances as part of their permit process. Dallas has adopted green building code requirements which go into effect in October this year, and many other cities are following suit.  As the stimulus funds are distributed to Texas, we will see an even greater impact at the local level.