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A prime opportunity

"Defeat" was the dominant legislative theme in the Senate last month. As I reported in June, the Senate began the month by voting down a much anticipated climate bill. Then, within the span of a week, the Senate failed twice to approve legislation that would extend a battery of expiring clean energy tax incentives.

Now with Congress returning from its traditional July 4 recess this week, all eyes in the nation's capital are turned to the first item of business—a housing bill that's been stalled the better part of the year. Typically, such legislation would be only of passing interest to energy-efficiency advocates, but as the number of business days remaining before legislators hit the campaign trail for good dwindles, the Foreclosure Prevention Act of 2008 (H.R. 3221), more commonly known as the "housing" bill, may be the final opportunity before the November elections to get those expiring provisions extended.

Should that legislation be signed into law (which is likely), the energy-efficiency community might have reason to celebrate. The reason is that on April 10 the Senate voted 88-8 in favor of adopting an amendment to H.R. 3221 that would extend the expiring clean energy tax incentives. Offered by Sens. John Ensign (R-Nev.) and Maria Cantwell (D-Wash.), the amendment enjoys strong bipartisan support and would do the following:
  • Extend the 30 percent investment tax credit for solar energy through Dec. 31, 2016.

  • Extend through Dec. 31, 2009, the 30 percent tax credit for residential energy-efficient property expenditures, including solar property, made by individual taxpayers. It also would repeal the $2,000 limitation on the tax credit for solar electric property. And it would allow an offset against the alternative minimum tax of tax credit amounts.

  • Extend through Dec. 31, 2009, the 10 percent tax credit for energy-efficiency improvements to existing homes—most of the qualifying property is of little interest to our industry.

  • Extend through Dec. 31, 2010, the tax credit to contractors for energy-efficient property installed in new residences.

  • Extend through Dec. 31, 2009, the tax deduction for installing energy-efficient improvements in commercial buildings. It also increases the maximum deduction to $2.25 per square foot from the current $1.80 limit.
But, of course, we're talking about Congress in an election year, and it couldn't possibly be that simple. The dilemma is that Democrats in the House of Representatives have drawn a line in the sand on what are known in congressional lingo as "pay-fors." They've declared they will object to any tax relief that isn't offset by tax increases elsewhere or through spending cuts. Their GOP counterparts respond that it's an extension of existing law so it shouldn't be offset with new tax increases. Regardless, Senate Majority Leader Harry Reid (D-Nev.) isn't inclined to send the House a bill that includes the Ensign/Cantwell language unless it is offset.

So what can our industry do to ensure the provisions are in the final bill? Contacting your federal legislators, and particularly the members of the Senate and House leadership, is all that can be done at this point. If you would like to reach your senators of representatives, time is of the essence. Your message doesn't need to be elaborate—it can be as simple as a telephone call or e-mail and should be the following: ensure the Ensign/Cantwell language is included in the product sent to the White House for President Bush's signature.

To reach your legislators, you can go to www.senate.gov and www.house.gov or call the U.S. Capitol switchboard at (202) 224-3121.

If you have any comments about this month's featured stories or remarks about the expiring tax provisions, please e-mail your thoughts to the Center at info@roofingcenter.org.

Best regards,

Craig Silvertooth
Executive Director
Center for Environmental Innovation in Roofing


Headlines

NRCA News
Professional Roofing's July issue includes article, "LEED,® don't follow"
SpecRight Program training session to be held during NRCA's Fall Meetings
Zero Energy Idea House to feature photovoltaic solar panels and vegetated roof sections
New York state legislature approves tax credit for vegetated roofs
USGBC to outsource LEED® certification to accredited certifiers in 2009

Industry News
"Large Solar Energy Array Set for G.M. in Spain"
"State College Green Roof Project"
"Colleges, Universities Take the Lead in Building Green"
"Austin's Paramount Theatre Goes Green"
"HSBC Relocating North America Staff to a 'Green' Building in a Prairie Village"
"Express Scripts' Headquarters Wins LEED Certification"
"Going Green Never Felt So Cool"
"Building an Energy-Efficient America: Zero Energy And High Efficiency Buildings"
"Developer Breaks Ground On Green Hotel, Eats Organic Breakfast"
"'Green Roof' Concept Comes to Downtown Duluth"
"Moves Aim for Greener Rooftops in NYC, Nationwide"
"Solar Monkey Wins Project Valued in Excess of $20M to Provide 3 Megawatts of Solar Power to Robison Family Trust"
"Appraisers Look at Measuring the Value of Green"
"$5 Billion for 'Green' Buildings"
"Utility Solar Assessment (USA) Study"


NRCA News

Professional Roofing's July issue includes article, "LEED,® don't follow"

The U.S. Green Building Council's Leadership in Energy & Environmental Design (LEED) Green Building Rating System™ has become a benchmark for achieving sustainable construction. "LEED,® don't follow" provides information about how to gain the expertise and credibility to become a valuable—and profitable—partner in the LEED building process. The article describes how to form partnerships, explains numerous green building design tools and provides alternatives to the LEED rating system. In addition, a Web exclusive is included with the article that provides links to the green building design tools detailed in the article. Click here to read the article. The Web exclusive can be accessed by clicking here.
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SpecRight Program training session to be held during NRCA's Fall Meetings

NRCA will offer its final SpecRight Program training session of the year Oct. 21 in Washington, D.C. This program is being held in conjunction with NRCA's Fall Meetings. Participants will learn how to use NRCA's EnergyWise Roof Calculator Online to demonstrate to building owners how energy costs can be reduced through insulation. Additional topics include cool roofs and the latest trends in energy codes. Participants will earn 0.75 CEU upon completion of this one-day session. Click here for more information and to register.
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Zero Energy Idea House to feature photovoltaic solar panels and vegetated roof sections

The Zero Energy Idea House, an energy-efficient house in its final design stage, is set to begin construction in Lake Sammamish, Wash., in July. Zero energy indicates the house will combine on-site power generation and efficiency measures so it meets its own energy requirements. The Zero Energy Idea House will have photovoltaic solar panels to supply the home with its electrical needs, and the hot water also will be heated by the sun. In addition, storm water runoff will be managed on the roof by four 2- by 4-foot trays, each 4 inches deep, containing a gravel-and-rock soil mixture. An on-site cistern that can hold up to 3,000 gallons of water will collect the water retained by the green roof. The project is not a true zero energy house as it will incorporate a gas-powered hydronic in-floor radiant heating system. The U.S. Department of Energy's Building America, managed by Washington State University (WSU) Extension's Energy Program, has adopted this project as a case study. WSU will conduct a series of tests to monitor the home’s performance and plans to install a monitoring system for real-time reports on energy use. The 1,700-square-foot house will be open for public and industry tours in early 2009. For more information about the Zero Energy Idea House, click here.
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New York state legislature approves tax credit for vegetated roofs

The New York state legislature recently passed a bill giving residential and commercial building owners a one-year tax credit if a vegetated roof is installed on at least 50 percent of available roof space. The credit is equal to $4.50 per square foot of roof that incorporates a vegetated design. The credit is about 25 percent of typical costs associated with the materials, labor, installation and design of a vegetated roof. The maximum amount of property tax credit that can be taken is $100,000. According to Storm Water Infrastructure Matters, each 10,000 square foot of vegetated roof can capture between 6,000 and 12,000 gallons of water in each storm event, the evaporation of which produces the equivalent of between 1,000 and 2,000 tons of air conditioning—enough heat removal to noticeably cool 10 acres of the city. The benefits of vegetated rooftops include lower energy costs, a decrease of runoff into sewage systems and a reduction in respiratory problems. Building owners may start applying for the tax credit Jan. 1, 2009. This is a pilot program that will expire March 15, 2013.
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USGBC to outsource LEED® certification to accredited certifiers in 2009

In anticipation of growth in the number of projects seeking Leadership in Energy and Environmental Design (LEED) certification, the U.S. Green Building Council (USGBC) announced plans to outsource LEED certification to the Green Building Certification Institute (GBCI). GBCI currently administers the LEED accredited professional program. Starting in January 2009, GBCI will educate independent, accredited certifiers through the International Standardization Organization about the LEED certification process. These independent certifiers will review projects that have applied for LEED certification. USGBC plans to provide information about changes to the certification process, along with the new LEED 2009 rating system and a revamped LEED online program, at Greenbuild 2008, Nov. 19-21, in Boston.
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Industry News

Large Solar Energy Array Set for G.M. in Spain
New York Times (07/08/08) P. C7; Wald, Matthew L.

Energy Conversion Devices will provide the solar electric system for the rooftop array on General Motors' assembly plant in Zaragoza, Spain. The Michigan-based company will supply equipment to Veolia Environment and Clairvoyant Energy, which is leasing rooftop space from GM. The solar energy array project is expected to generate 12 Megawatts (Mw), a considerable amount for arrays, which are measured in kilowatts. In June, Energy Conversion raised $400 million in new capital and is expected to generate about 150 Mw of cells this year. The GM assembly plant will have the distinction of having the world's largest rooftop array after the installation is completed.
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State College Green Roof Project
WTAJ-TV (Altoona, Pa.) (07/07/08) Kursman, Carly

State College, Pa., is planning to put a green roof system on a portion of its Downtown State College Municipal Building. In early July, the Borough Council accepted $25,000 in grant money from State Representative Scott Conklin to jump-start the project. The green roof system will be constructed with plants and materials that will work together to reduce energy use inside the building. The 2,500-square-foot portion of roof that will be covered is directly over the borough's community room. The whole project is expected to cost $80,000, so there will be some taxpayer burden along with the $25,000 grant. Once it is up and working, the new green roof system is expected to save the borough time and money in a number of ways. Conklin explains: "It will help with energy conservation. It will help it stay cool in the summer time and be warm in the winter time. It will help with runoff, so when there is a heavy downpour, it doesn't all run directly into the waste lines." Construction on the project is expected to start in the spring of 2009.
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Colleges, Universities Take the Lead in Building Green
Los Angeles Times (07/07/08) Hsu, Tiffany

More U.S. campuses are turning to green energy and sustainable building practices. East Los Angeles College, for example, recently installed 5,952 solar rooftop panels that produce approximately 45 percent of the college's energy. The solar arrays are expected to last at least 40 years, generating about 1.9 million kilowatts annually and providing savings of $270,000. More than 40 other green building projects are slated for the Los Angeles Community College District, which includes East Los Angeles. Nationwide, traditionally built buildings account for 36 percent of overall greenhouse gas emissions and 39 percent of its carbon dioxide emissions. They also consume 71 percent of the country's electricity, according to the U.S. Green Building Council. Giulietta Aquino, dean of undergraduate admissions at Mills College in Oakland, says applications for environmental and science studies have increased after the college starting promoting its Natural Sciences building, which is 90 percent more energy efficient than most. At Grinnell College in Iowa, geothermal technology helps heat and cool buildings using wells drilled 120 feet below the parking lot. Meanwhile, the Association for the Advancement of Sustainability in Higher Education is forming a system to gauge campuses' sustainability based on the U.S. Green Building Council's Leadership in Energy and Environmental Design (or LEED) rating system.
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Austin's Paramount Theatre Goes Green
KVUE.com (07/07/2008) Harris, Tom

In Austin, the historic Paramount Theatre is embracing green components in an effort to save money and help the environment. Such changes could also help keep the downtown icon in business for many years to come. Inside the building, more than 300 light bulbs have been replaced with more energy-efficient bulbs that could reduce the theater's lighting bill by as much as 70 percent. Outside the theater, construction is set to start this month on a new green roof system that will also help save money. Ken Stein, executive director of the Paramount, remarks: "The lighting alone is over $10,000 a year. The estimate on the roof is probably another several thousand. When all is said and done, probably $20,000 a year."
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HSBC Relocating North America Staff to a 'Green' Building in a Prairie Village
International Herald Tribune (07/02/08) Haw-Shu, Long

London-based HSBC has moved its North American headquarters to what it is touting as a "carbon neutral" facility in the Chicago suburb of Mettawa. The five-story, 560,000-square-foot building was developed for more than $100 million. HSBC North America Holdings chose Mettawa from a list of 50 possible sites in and around Chicago, notes Mike Brown, senior vice president for corporate real estate. He remarks: "We had overgrown our former headquarters in Prospects Heights, which we occupied since 1979." The new facility will enable HSBC North America to bring approximately 3,000 employees previously scattered across six sites under one roof in a relocation expected to be completed by the end of July. The new building's interior includes a health club, a 2,000-seat auditorium, a nondenominational prayer room and nearly 80 meeting rooms. Emergency medical care, dry cleaning and banking services are also available in the building. The bank is now seeking "gold" certification from the U.S. Green Building Council for the structure's various environmental initiatives. These include collecting roof water for flushing toilets; depending on light-guided window treatments, which track the position of the sun to trim the need for heating and air conditioning; and using drought-resistant landscaping to reduce the need for watering. Additionally, parts of the headquarters' roof are planted with vegetation.
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Express Scripts' Headquarters Wins LEED Certification
St. Louis Business Journal (07/02/08) Allen, Matt

Express Scripts Inc.'s $50 million headquarters has been awarded Leadership in Energy and Environmental Design (LEED) certification under the U.S. Green Building Council rating system. Among the building's green features are a white roof system, low-flow plumbing fixtures and lighting set to motion detectors. Express Scripts moved 1,100 employees into its headquarters in May 2007 following its completion earlier that year. The 315,000-square-foot building is located on a 16-acre parcel on the campus of University of Missouri-St. Louis.
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Going Green Never Felt So Cool
Darien Suburban Life (06/27/08)

In Darien, Ill., Lace Elementary School is nearing the completion of a green roof system, the first one on a school in DuPage County. Engineered by Wight and Company, the green roof system will have nearly 4 inches of a soil-like medium for the roots of the sedum plant to grow. The plants will take root over moisture barriers and a water retention mat with a "cellular confinement grid" keeping the soil from washing off the sloped roof. District 61 Superintendent Chip Johnson states: "I'm excited to really see the educational opportunities come to life in our district. It's truly exciting for the kids, the teaching staff and the community that we can participate in the greening of America." Indeed, several Lace teachers plan to incorporate the roof into their curricula this coming school year. Costing $90,000, the 3,000-square-foot green roof system is designed to regulate temperatures, manage storm runoff and deaden sound. It was made possible by a grant from the DuPage County Stormwater Management Division.
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Building an Energy-Efficient America: Zero Energy And High Efficiency Buildings
Environment America Report (07/01/08)

The United States could slash energy consumption by investing in green design incentives and adopting building standards aimed at increasing energy efficiency, according to a report by the advocacy group Environment America. The report focuses on standards developed by the Energy Efficient Codes Council for residential buildings and by the American Society of Heating, Refrigerating and Air-Conditioning Engineers for commercial buildings. Those standard-setting bodies are aiming for 30 percent more efficiency for 2009 and 2010, respectively. By 2030, the report says: "Political leaders should set the goal for all new buildings to be zero net energy." The report further emphasizes efficiency cost savings and equivalents in avoiding construction of new power plants. If the federal government invested $21.6 billion a year for five years in efficiency programs, research shows energy use would be reduced by the amount produced by 100 coal-fired power plants. The report endorses the passage of production and investment tax credits for energy efficiency, as well as the Energy Efficiency and Conservation Block Grant program, which Congress passed in 2007 but has yet to appropriate $2 billion per year to fund.
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Developer Breaks Ground On Green Hotel, Eats Organic Breakfast
New York Observer (06/27/08) Rubinstein, Dana

In late June, Time Equities Inc. broke ground on a 65-story hotel and residential tower in Lower Manhattan. The New York-based developer expects the building will soon receive Leadership in Energy and Environmental Design (LEED) "gold" certification thanks to the incorporation of such features as a green roof system, water-efficient plumbing and sustainable construction materials.
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'Green Roof' Concept Comes to Downtown Duluth
Saint Paul Pioneer Press (MN) (06/27/08)

Officials in St. Louis County, Minn., are installing a green roof system on the county motor pool in downtown Duluth. The structure, which stores impounded cars, has suffered from a leaky asphalt roof for months. County officials are hoping the green roof system will help slash the building's energy use and reduce rainfall runoff. In addition, they expect it will keep downtown cooler in the summer and warmer in the winter. Project manager Tom Romundstad concedes the green roof system costs more than asphalt, but it should last three times longer. Earlier this year, the nearby Minneapolis City Hall and Hennepin County Government Center also added a green roof system.
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Moves Aim for Greener Rooftops in NYC, Nationwide
Commercial Property News (06/25/08)

In New York City and nationwide, commercial and residential customers alike now have sweeter incentives to green their rooftops. New York-based building owners who install green roof systems will now receive a significant tax credit. Under the new law, those who install green roof systems on at least 50 percent of available rooftop space can apply for a one-year property tax credit of as much as $100,000. The credit would be equal to approximately 25 percent of the typical costs associated with the materials, labor, installation and design of the green roof system. Ron Crauderueff, chairman of the Storm Water Infrastructure Matters (S.W.I.M.) policy committee, states: "The return on investment is, first, a significant reduction in energy use from 10 to 20 percent in the summertime. And second, it doubles or triples the lifetime of the roof." Green roof systems mitigate the sun's ultraviolet rays' wear on a roof membrane with constant fluctuation due to temperature. On the national front, the new strategic alliance between GE Energy and GAF Materials Corp. offers customers interested in purchasing a new roof the convenience of installing a solar system at the same time. The partnership is expected to advance the use of solar energy technology in both commercial and residential applications.
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Solar Monkey Wins Project Valued in Excess of $20M to Provide 3 Megawatts of Solar Power to Robison Family Trust
ElectricNet (06/26/08)

Solar Monkey has been hired to retrofit 650,000 square feet of the Robison Family Trust property portfolio to accommodate rooftop solar electricity generation. The trust has picked only those buildings from its portfolio that meet the national solar energy systems provider's criteria for solar installations. Buildings included are all 20,000 square feet and larger and no more than four stories tall. Robison family trustee Clair Robison notes that Solar Monkey "made our solar energy program a smart business decision for our commercial properties and are integrating energy efficiency and [Leadership in Energy and Environmental Design, or LEED] programs, as well. Their innovative financial approach, which eliminates the capital barriers to installing solar, will provide us with 25 years of financial and environmental benefits." The photovoltaic solar systems and the electricity they generate will be developed via a Power Purchase Agreement (PPA) between the trust and Solar Monkey. Solar Monkey Chief Executive Officer Matt McCullough comments: "We have worked extremely hard to build a creative solution that adds value to our clients' property portfolios and eliminates the financial barriers that typically inhibit most investors from installing solar. We will continue to provide large portfolio property owners and institutions with creative solutions which will bring solar power to them in a cost effective manner."
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Appraisers Look at Measuring the Value of Green
Austin Business Journal (06/26/08)

Real estate appraisers from all over the nation descended on Austin recently for a seminar on how green building components can affect property values. Chicago-based Appraisal Institute conducted the seminar, taking a close look at such issues as cost-efficient sustainable building elements and how appraisers can establish a benchmark for green building valuation with so few comparisons available. Jim Amorin, president-elect of the Appraisal Institute, remarked: "There is an overwhelming push toward green building and, as a result, we have been actively developing coursework to help our members understand how green is going to impact the properties we are appraising." Such sustainable elements as high-efficient heating and air conditioning systems provide substantial energy cost savings. In turn, lower operating costs increases a building's value to an owner and/or a potential buyer. Amorin added: "We are starting to see some empirical evidence that investors are willing to pay more for a green building than a non-green one. I think we're at the precipice of a big change in commercial real estate."
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$5 Billion for 'Green' Buildings
Rocky Mountain News (06/23/08) Rebchook, John

The Building Owners and Managers Association (BOMA) has partnered with the Clinton Climate Initiative to line up $5 billion in financing to provide one-stop shopping to make commercial buildings worldwide more energy efficient. The Energy Performance Contract Model was unveiled at BOMA's annual meeting in Colorado this past week. The association and the Clinton Climate Initiative have reached agreements with five banks that will each make $1 billion in loans available to retrofit buildings with such amenities as energy-efficient chillers, computerized energy management systems, and solar and wind power. Arah Schuur, program manager for the Clinton Climate Initiative, states: "Building owners aren't going to do this for charity." The program entails each building owner obtaining a loan from the group to retrofit their structure. The owner inks a deal for $90,000 with an energy service contractor, who guarantees annual energy savings of $100,000. If the saving goals are not achieved, the company has to write a check to the building owner to make up the difference. Tenants get the benefit of lower energy bills, while the owner can eventually sell the property for more money because of the state-of-the art equipment.
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Utility Solar Assessment (USA) Study
Co-op America Reports (06/18/08)

A new study by Co-op America predicts that solar energy will cost the same as electricity derived from coal power plants, natural gas plants and nuclear plants in about a decade. Because of such price parity, the report predicts solar energy could comprise 10 percent of U.S. power generation by 2025. By then, 8 percent of the nation's electricity will come from photovoltaic systems on rooftops and small solar fields while 2 percent will come from large concentrated solar power plants in deserts, the report predicts. Meanwhile, the cost of conventional electricity sources are expected to rise 3 percent annually while the cost of solar declines 18 percent with every doubling of global capacity. The study was conducted by the nonprofit group Co-op America and research firm Clean Edge. "For the first time in history, cost-competitive solar power is now within the planning horizon of every utility," asserts Alisa Gravitz, executive director of Co-op America. The study also forecasts that the cost of solar will fall from $5.50 to $7 per average peak watt today to $1.43 to $1.62 per average peak watt by 2025. A peak watt indicates the number of watts output when a solar panel is illuminated under test conditions. However, advancements in solar energy will require about $450 billion to $560 billion from now to 2025, says study co-author Ron Pernick.
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July 2008