1. SEEA Presentation to SEES March 2006 SEEA Presentation to SEES February 2006 SOUTHEAST ENERGY EFFICIENCY ALLIANCE

2. SEEA Presentation to SEES March 2006 Who is SEEA? Covering 11 southeastern states 71 million residents The Southeast Energy Efficiency Alliance builds regional partnerships to promote and achieve energy efficiency for a cleaner environment, a more prosperous economy, and a higher quality of life.

3. SEEA Presentation to SEES March 2006 SEEA Participants State, federal & local governments, electric and natural gas utilities, businesses (energy users and efficiency suppliers), and Non-Governmental Organizations (NGOs) (environment, low income housing, etc.).

4. SEEA Presentation to SEES March 2006 What does SEEA do? Regional champion for energy efficiency. Round table for participant discussion and resolution. Education and Program provider. Information Clearinghouse for members, governments and the press. Modeled on other regional alliances.

5. SEEA Presentation to SEES March 2006 What can SEEA do? Assist with Building Code improvement/ implementation. Energy Star promotion. Lead programs and workshops that promote and support energy efficiency (Demand Side Management). Conduct workshops to educate and promote the Federal Tax Incentives for Energy Efficiency (EPAct 2005). Coordinate Energy Efficiency Activities in region. Support networking of key players in energy. Assist with Building Code improvement/ implementation. Energy Star promotion. Lead programs and workshops that promote and support energy efficiency (Demand Side Management). Conduct workshops to educate and promote the Federal Tax Incentives for Energy Efficiency (EPAct 2005). Coordinate Energy Efficiency Activities in region. Support networking of key players in energy.

6. SEEA Presentation to SEES March 2006 How can you work with SEEA? State and regional meetings One-on-one discussion Workshops Working groups SEEA Membership Education and Program Development State and regional meetings One-on-one discussion Workshops Working groups SEEA Membership Education and Program Development

7. SEEA Presentation to SEES March 2006 Federal Tax Incentives Areas of Energy Efficient Building Incentives New Residential Construction Existing Residential Renovation Commercial/Industrial Other incentives: Solar, Vehicle, Fuel Cells Areas of Energy Efficient Building Incentives New Residential Construction Existing Residential Renovation Commercial/Industrial Other incentives: Solar, Vehicle, Fuel Cells

8. SEEA Presentation to SEES March 2006 Existing Home Incentives Credit goes to homeowner A credit of 10% of component costs (but not installation costs) for: Insulation (meeting efficiency levels defined in the 2001 Supplement to the International Energy Conservation Code - - IECC) Windows (meeting ENERGY STAR or IECC requirements; there is a $200 ceiling on the tax credit for windows Storm windows and doors, which when combined with existing windows and doors meet IECC requirements Sealing to limit air infiltration ENERGY STAR Metal Roofs A credit of $150-300 for heating and cooling equipment meeting defined efficiency levels A credit of $300 for water heaters meeting defined efficiency levels. Credit goes to homeowner A credit of 10% of component costs (but not installation costs) for: Insulation (meeting efficiency levels defined in the 2001 Supplement to the International Energy Conservation Code - - IECC) Windows (meeting ENERGY STAR or IECC requirements; there is a $200 ceiling on the tax credit for windows Storm windows and doors, which when combined with existing windows and doors meet IECC requirements Sealing to limit air infiltration ENERGY STAR Metal Roofs A credit of $150-300 for heating and cooling equipment meeting defined efficiency levels A credit of $300 for water heaters meeting defined efficiency levels.

9. SEEA Presentation to SEES March 2006 New Home Incentives Incentive goes to builder Tax incentives of $2,000 for new homes. Homes must be designed to use 50 percent less energy for heating and cooling than a reference home design that meets the standards of Section 404 of the 2004 International Energy Conservation Code (IECC). The rules set rely heavily on home energy rating procedures developed by the national Residential Energy Services Network (RESNET). Incentive goes to builder Tax incentives of $2,000 for new homes. Homes must be designed to use 50 percent less energy for heating and cooling than a reference home design that meets the standards of Section 404 of the 2004 International Energy Conservation Code (IECC). The rules set rely heavily on home energy rating procedures developed by the national Residential Energy Services Network (RESNET).

10. SEEA Presentation to SEES March 2006 New Manufactured Homes Incentive goes to builder Manufactured homes (those governed by federal construction standards), allowing builders of theses homes to qualify for either a $2,000 credit, using procedures similar to those applicable to new homes $1,000 credit if homes are documented to save 30 percent of the heating and cooling energy compared to a reference home that meets the standards of Section 404 of the 2004 IECC. Homes that are certified under the Energy Star Homes program for manufactured homes also qualify for the $1,000 credit. Incentive goes to builder Manufactured homes (those governed by federal construction standards), allowing builders of theses homes to qualify for either a $2,000 credit, using procedures similar to those applicable to new homes $1,000 credit if homes are documented to save 30 percent of the heating and cooling energy compared to a reference home that meets the standards of Section 404 of the 2004 IECC. Homes that are certified under the Energy Star Homes program for manufactured homes also qualify for the $1,000 credit.

11. SEEA Presentation to SEES March 2006 Commercial Incentives Equal to the cost of energy efficient commercial building property placed in service not to exceed $1.80/square foot. Must reduce total annual energy and power costs with respect to the interior lighting systems, heating, cooling, ventilation, and hot water systems by 50 percent or more in comparison to a reference building which meets the minimum requirements of ASHRAE Standard 90.1–2001. Standard 90.1–2001 as in effect on April 2, 2003 (includes addenda adopted through that date—specifically excludes the lighting power changes.) Essentially requires energy simulation to justify the deduction. Equal to the cost of energy efficient commercial building property placed in service not to exceed $1.80/square foot. Must reduce total annual energy and power costs with respect to the interior lighting systems, heating, cooling, ventilation, and hot water systems by 50 percent or more in comparison to a reference building which meets the minimum requirements of ASHRAE Standard 90.1–2001. Standard 90.1–2001 as in effect on April 2, 2003 (includes addenda adopted through that date—specifically excludes the lighting power changes.) Essentially requires energy simulation to justify the deduction.

12. SEEA Presentation to SEES March 2006 Commercial Incentives Cont. Partial Allowance Department of Energy to recommend % targets to the Department of Treasury for subsystem credits for interior lighting, HVAC, water heating, and envelope. Up to $0.60/square foot per subsystem. Calculating and Verifying the Deduction Energy to recommend methods to Treasury for qualifying computer software which provides Data required by Treasury for tax filing purposes and Documentation of the energy efficiency features of the building and its projected annual energy costs. Inspection and testing by qualified individuals shall be performed. Qualified individuals shall be recognized by an organizations certified by Treasury. For Federal, state and local government buildings, the deduction can be allocated to the designer. IRS will publish rules on this. Partial Allowance Department of Energy to recommend % targets to the Department of Treasury for subsystem credits for interior lighting, HVAC, water heating, and envelope. Up to $0.60/square foot per subsystem. Calculating and Verifying the Deduction Energy to recommend methods to Treasury for qualifying computer software which provides Data required by Treasury for tax filing purposes and Documentation of the energy efficiency features of the building and its projected annual energy costs. Inspection and testing by qualified individuals shall be performed. Qualified individuals shall be recognized by an organizations certified by Treasury. For Federal, state and local government buildings, the deduction can be allocated to the designer. IRS will publish rules on this.

13. SEEA Presentation to SEES March 2006 5 Ways to claim deduction 1. Whole building 50% energy cost reduction 2. Partial Deduction – Lighting Target 3. Partial Deduction – HVAC Target 4. Partial Deduction – Envelope Target 5. Interim Lighting Rules using ASHRAE prescriptive lighting tables (9.3.1.1 and 9.3.1.2) 1. Whole building 50% energy cost reduction 2. Partial Deduction – Lighting Target 3. Partial Deduction – HVAC Target 4. Partial Deduction – Envelope Target 5. Interim Lighting Rules using ASHRAE prescriptive lighting tables (9.3.1.1 and 9.3.1.2)

14. SEEA Presentation to SEES March 2006 ASHRAE/IESNA 90.1 - 2001 Building Interiors Power Density Limits (space method) Std 90.1- 2001 25% level ($0.30/sf) 40% level ($0.60/sf) Office Range depends on open versus private office 1.3 – 1.5 w/sf0.98 – 1.13 w/sf0.78 – 0.90 w/sf Warehouse * Range depends on type of storage 1.1 – 1.6 w/sfNot available0.55 - 0.80 w/sf (50% below 90.1-2001) Classroom 1.6 w/sf1.20 w/sf0.96 w/sf Retail Sales area 2.1 w/sf1.58 w/sf1.26 w/sf * Warehouses must outperform ASHRAE/IESNA 90.1 requirements by 50%

15. SEEA Presentation to SEES March 2006 Awaiting information… Qualified “ACM-based” computer software is likely to be “self-certified” by developer. Such software may be available from developers within 3 months of IRS rules. Compliance sign-off and inspections may be responsibility of designer. Partial deductions may be simple 1/3 split of 50% energy cost reduction. Deduction transferability for public buildings to designer/architect. Extension? Qualified “ACM-based” computer software is likely to be “self-certified” by developer. Such software may be available from developers within 3 months of IRS rules. Compliance sign-off and inspections may be responsibility of designer. Partial deductions may be simple 1/3 split of 50% energy cost reduction. Deduction transferability for public buildings to designer/architect. Extension?

16. SEEA Presentation to SEES March 2006 Tax Incentive Links www.seea.us www.energytaxincentives.org www.ase.org www.simplyinsulate.com www.efficientwindows.org/energystar.cfm www.energystar.gov www.lithonia.com/taxdeduction www.seea.us www.energytaxincentives.org www.ase.org www.simplyinsulate.com www.efficientwindows.org/energystar.cfm www.energystar.gov www.lithonia.com/taxdeduction

17. SEEA Presentation to SEES March 2006 Thank you Contact SEEA www.seea.us Chris White Interim Director P.O. Box 13909 Atlanta, GA 30305-0909 cwhite@seea.us Tel. 1-866-900-SEEA (7332) Direct 404-467-2220 Contact SEEA www.seea.us Chris White Interim Director P.O. Box 13909 Atlanta, GA 30305-0909 cwhite@seea.us Tel. 1-866-900-SEEA (7332) Direct 404-467-2220