Energy Tax Savers, Inc.
EPAct Presentation
Required Energy Techniques for
Modeling building
Energy Tax Savers
Jacob Goldman
jacob.goldman@energytaxsavers.com
Energy Policy Act of 2005 (EPAct)



Extended through 12/31/13
Benefits available from 1/1/06 thru 12/31/13
Incentivized areas:
–
–
–


Available for New Construction and Existing Buildings
Also available for:
–
–
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Lighting
HVAC
Building envelope
Tenant owned lease-hold improvements
Primary Designers of Government Buildings
jacob.goldman@energytaxsavers.com
What’s 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:
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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@energytaxsavers.com
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
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
offices, schools, town halls, police, fire, libraries etc.
jacob.goldman@energytaxsavers.com
What’s in it for
Architects/Engineers/Lighting Designers?


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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@energytaxsavers.com
How do you Qualify?

Mechanics
–
–
Deductions based on improvements over ASHRAE 90.1 2001
Energy efficient improvements must be depreciable assets

–
Available for installations completed between 1/1/06 & 12/31/13

–
Converts 39 year depreciation to current deduction
Can begin in prior years
Deduction amounts:

Lesser of total cost or:
–
–
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$1.80/sq.ft. Whole Building
$0.60/sq.ft. Individual Systems
a.
Lighting
b.
HVAC
c.
Building Envelope
ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers)
HVAC (Heating, Ventilation & Air Conditioning)
jacob.goldman@energytaxsavers.com
8 Ways to Capture Tax Deduction
•
(1)Whole
–
•
•
50% Energy Cost Reduction below standard
Permanent Rules partial deduction ($0.60/ft2)
Building
Envelope
Lighting
HVAC
Alternative 1
(2)162/3
(3)162/3
(4)162/3
Alternative 2
(5)10%
(8)Interim
–
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Building ($1.80/ft2)
%
(6)20%
%
%
(7)20%
Lighting Rules ($0.30/ft2-$0.60/ft2)
25% to 40% prescribed Light Power Density (LPD) reduction below
standard
jacob.goldman@energytaxsavers.com
Where are the Benefits



Lighting, Lighting, Lighting
Lighting Controls
Specific Types of HVAC
–
–
–

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Geothermal
Thermal Storage
Central Chiller plants with small
buildings(<150,000sq.ft.) in Campus
LEED Buildings
jacob.goldman@energytaxsavers.com
Commercial Building Immediate Deduction

Permanent Rules
–
–
–
–
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16 ⅔% 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@energytaxsavers.com
Understanding Energy Models

IRS has approved thirteen types of modeling software
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–



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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 <Virtual Environments>
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@energytaxsavers.com
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
11
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@energytaxsavers.com
EPAct Modeling Technique

HVAC Example
1.
2.
3.
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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@energytaxsavers.com
From ASHRAE 90.1 2004 Appendix G
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jacob.goldman@energytaxsavers.com
Techniques for Achieving HVAC Tax
Savings
1.
More Efficient than Reference Equipment

Put in Highly efficient equipment and add
–
–
–
–
–
2.
Different Equipment than Reference Equipment



3.
Chillers where Packaged Units are in the Reference Building
Central Plant
Geothermal
Take advantage of Time of Day Energy Pricing

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VFD’s
Economizers
Demand Ventilation
Energy Recovery Ventilation
Etc.
Thermal Storage
jacob.goldman@energytaxsavers.com
What Tends to Qualify on the
HVAC side?
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Geothermal (Ground Source Heat Pumps)
Thermal Storage
High Efficiency PTAC units in Rental Apartments
Centralized HVAC in Rental Apartment Buildings
Energy Recovery Ventilation
Demand Control Ventilation
Chillers in buildings < 150,000 sq ft
Blow through heaters in no AC Industrial Spaces
VAV (variable air volume devices) in buildings <75,000 sq ft
Chilled Beam
Magnetic Bearing Chillers
Gas fired chillers combined with electric chillers to peak shave
jacob.goldman@energytaxsavers.com
Electric Chillers in Baseline
16
From ASHRAE 90.1 2004 Appendix G
jacob.goldman@energytaxsavers.com
17From NREL Technical Report NREL/TP-550-40467 May 2007
jacob.goldman@energytaxsavers.com
Use NREL Technical Report NREL/TP-550-40467 May 2007
18From ASHRAE 62 1999
jacob.goldman@energytaxsavers.com
Use ASHRAE 90.1 2001
Use ASHRAE 62 1999
19From NREL Technical Report NREL/TP-550-40467 May 2007
jacob.goldman@energytaxsavers.com
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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
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
Exceptions
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jacob.goldman@energytaxsavers.com
Estimating 179D from a EA 1 Credit Worksheet
Interior Lighting
Space Heating-Gas
Space Cooling
Pumps
Heat Rejection
Fans-Interior
Service Water Heating-Elec
Service Water Heating-Gas
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Proposed(Mbtu)
892.8
571.2
541.4
36.7
92
719.8
6.2
819.9
LEED 2.2
Baseline(Mbtu)
1695
76.5
679.5
21.6
257.5
2647.5
6.2
1046
Adjusted to 2001
Baseline(Mbtu)
2542.5
76.5
679.5
21.6
257.5
2647.5
6.2
1046
Electricity Cost($/MBtu)
Natural Gas($/Mbtu)
$
$
16.69 $
7.61 $
16.45 $
8.93 $
16.45
8.93
Electricity Costs
Natural Gas Costs
$
$
$
38,198 $
10,584 $
48,782 $
87,288 $
10,014 $
97,302 $
49.87%
101,227
10,014
111,241
56.15%
The Modeler’s role

Analyze existing projects for EPAct potential
–

Most projects are on the margins(between 0&1 or 1&2 deductions)
–



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Communicate the potential to Management
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.
Energy Tax Savers Inc.
http://www.energytaxsavers.com/
Energy Tax Savers
12 Split Rock Rd.
Syosset, NY 11791
Phone: 516.364.2630
Fax: 516.364.2646
Email: jacob.goldman@energytaxsavers.com
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