EPAct 2005 Opens the Door to Opportunities
 In August 2005, the 2005 Energy Policy Act (EPAct 2005) was officially signed into law. Over three years in the making, this milestone act addresses matters ranging from the generation, transmission, and distribution of our nation's energy to our energy consumption and the efficiency of certain end user products. A landmark step for the nation's future progress, EPAct 2005 is intended to reduce our national energy consumption, benefit the environment through the reduced emission of pollutants, reduce our dependence on foreign fuel sources, and improve our overall global competitiveness.
In addition to setting new product efficiency standards and supporting enhancements to the nation's electric grid, EPAct 2005 introduces attractive new financial incentives that reward the use of energy-efficient lighting, HVAC, and other high-efficiency building envelope technologies in qualifying new installation as well as retrofit applications.
These new financial incentives are offered in the form of tax deductions which provide up to $.60 per square foot on the installation of energy-efficient lighting products that result in a building's increase in energy efficiency by 25-40% or more over the ASHRAE 90.1-2001 standard. Tax deductions of up to $1.80 per square foot are available on qualifying whole building upgrades that involve a totality of technologies which improve a building's energy efficiency by 50% or more over the ASHRAE 90.1-2001 standard. The tax deductions are available on equipment placed into service between January 1, 2006 and December 31, 2007 and interested parties are encouraged to consult ASHRAE guidelines and their tax professionals for more information on how to qualify. Available on top of the extremely attractive returns that lighting upgrades generate all on their own, these new tax deduction opportunities provide an even more compelling reason for end users to pursue an energy-efficient lighting upgrade today!
New EPAct 2005 Resources:
For a comprehensive overview of EPAct 2005, see the NEMA-sponsored “Assessment of the Energy Policy Act of 2005” prepared by the National Electrical Manufacturers Association at www.nema.org
For details on EPAct 2005 tax deduction opportunities, visit www.efficientbuildings.org (sponsored by the National Electrical Manufacturers Association (NEMA) and the Commercial Building Tax Deduction Coalition)
For an overview of the lighting provisions associated with EPAct 2005 and the benefits of lighting upgrades in general, visit Advance's new industry website at www.energybillinfo.com
For information on ASHRAE 90.1-2001 standards, visit www.ashrae.org
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Profiles in Lighting Upgrades
Relatively easy to undertake, energy-efficient lighting upgrades routinely reduce energy consumption and costs by an attractive 30-50%, and often pay themselves back within two-three years or less, making them one of the most attractive investments around.
The following real-life case study helps demonstrate how one commercial entity, Lincoln Plaza in Dallas, improved its bottom line and the environment through a lighting upgrade:
 As part of the extensive lighting overhaul recently undertaken within the 1.1 million square-foot Lincoln Plaza high-rise in Dallas, all of the tenant-lease building's 45 stories were upgraded with T-8 fluorescent lamps, electronic ballasts, and reflectors. In addition, incandescent lamps were replaced with compact fluorescent lamps and the building's 400+ exit signs were retrofitted with highly-efficient LED technology. As a result, Lincoln Plaza is saving over 4 million kilowatt-hours of energy each year, which has the equivalent impact on the environment as the planting of 1,300 acres of trees or the removal of 600 cars from U.S. roads. To the management team's further delight, the project has reduced Lincoln Plaza's energy bills by over $330,000 annually, resulting in a three-year payback for the entity and a nearly 35% return on investment.
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Industry Facts
Average Electricity Prices
According to the U.S. Energy Information Administration, average kWh rates for electricity for 2005 outpaced 2004 prices, driven by the effects of steady economic growth, higher world oil prices, and extreme weather conditions (including Hurricane Katrina). In October 2005, the average U.S. retail electricity price of 8.32 cents per kWh reflected a 9.2% growth over October 2004 levels. Commercial and industrial kWh rates rose by 5.7% and 4.7%, respectively relative to October 2004. The average retail price of electricity from January through October 2005 was 8.08 cents per kWh, 5.5% higher than the same period in 2004.
Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, Year-to-Date through October 2005 vs. 2004 (Source: EIA)
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The Role of Lighting
According to U.S. Department of Energy statistics, lighting accounts for as much as 30-40% of a typical commercial building's energy consumption and represents a primary source for significant cost savings
National Lighting Expenditures
Data from the U.S. Energy Information Administration reveals that the nation's estimated 5 million commercial, industrial, and institutional buildings consume nearly 900 billion kilowatt-hours of energy annually and spend over $40 billion a year in electricity bills to operate their lighting systems alone
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Product Spotlight
Advance's Family of Optanium 2.0 High Efficiency Electronic Ballasts
 Fully maximizing energy efficiency objectives and supporting new EPAct 2005 lighting upgrade opportunities, Advance's full line of revolutionary Optanium® 2.0 high-efficiency electronic ballasts with IntelliVolt® multiple voltage technology drive one-four fluorescent T8 lamps. Advance's Optanium 2.0 electronic ballasts are available in both Instant Start and Programmed Start options as well as in Low, Normal, and High Ballast Factor versions to promote maximum flexibility and freedom of choice. The ballasts optimize and are fully compatible with the market's broad range of T8 lamps, including standard 40-Watt, 32-Watt, 25-Watt, and 17-Watt versions as well as 4-foot 30-Watt, 28-Watt, and 25-Watt energy-saving models.
Representing a breakthrough in fluorescent T8 system componentry, Optanium 2.0 high-efficiency electronic ballasts incorporate Advance's exclusive True Performance TechnologySM (TPT) engineering to insure optimum performance and maximum energy savings. Ideal for general, decorative, retail, and indirect lighting, the family of ballasts optimizes lumen-per-watt performance and enables T8 lighting systems within a broad range of commercial, industrial, and institutional applications to reach their full potential.
For more information on Advance's Optanium 2.0 line of high efficiency electronic ballasts and how they can optimize your lighting system and support EPAct 2005 and sustainable design objectives, visit the Optanium 2.0 page.
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Customer Spotlight
Tim Speller
National Energy Manager, Petco
On the importance and benefits of quality lighting
throughout Petco's 740+ stores nationwide.
 "At Petco, lighting in our stores accounts for about 30% of our total energy usage. Because lighting represents such a large portion of our energy consumption and costs, we have emphasized the use of the most appropriate lamp, ballast, and occupancy sensor combinations to make sure we have the right light levels for our pets, customers, and associates as well as for the tasks being undertaken in each area of the store. We additionally need to have lighting that is time-sensitive, with one level for employee opening and closing, another level for stocking shelves and feeding animals, an elevated lighting level during customer hours, and settings which insure that lights go off when not needed, such as in restrooms, break rooms, and stock areas. By carefully controlling and optimizing our lighting system, we have successfully lowered our wattage draw, minimized our stores' cooling requirements, and reduced overall maintenance concerns."
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Advance Launches energybillinfo.com Website
 In January, Advance officially launched www.energybillinfo.com, a unique industry website designed to help promote awareness of the recently-enacted Energy Policy Act of 2005 as well as the comprehensive benefits associated with energy-efficient lighting upgrades.
A powerful resource designed to assist industry partners and end users in their lighting upgrade pursuits, www.energybillinfo.com contains valuable information regarding the lighting implications of EPAct 2005, including new Federal tax deduction opportunities available to qualifying energy-efficient lighting installations. In addition to offering a host of easy-to-use upgrade tools and calculators which will help users assess the magnitude of their lighting upgrade opportunities, the site also offers educational tours of the energy-saving lighting strategies inherent within the eight most popular building applications. An array of informational articles, reference links, and white papers are also available to help explain the benefits of lighting upgrades and how to begin the upgrade process.
There has never been a more opportune time to investigate your lighting upgrade opportunities….let Advance help guide you through the process at www.energybillinfo.com!
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For Your Reference...
See the following recent trade articles for general information on
EPAct 2005:
“Energy Policy Act of 2005 Encourages Energy-Efficient Lighting with Tax Deduction”
by the Lighting Controls Association (LCA) Read article...
“The Energy Policy Act of 2005” Energy & Power Management,
November 2005 Read article...
“Does EPAct Change Anything?”
Read article...
“The Right Kind of Lighting Can Save You Money in Energy Costs – and Taxes”Consulting-Specifying Engineer, November 21 st, 2005
Read article...
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January 2006 | Volume 1 | Issue 1
For more information
on EPAct, visit:
www.energybillinfo.com
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