Advance EPact eNewsletter

Introduction

Thank you for your interest in and support of Lighting the Way, Advance's new monthly e-newsletter. We appreciate your continued interest and feedback.

National Update: EPAct 2005

On March 8th, S.822, the EXTEND Energy Efficiency Incentives Act of 2007 was introduced by Senator Snowe along with Senators Feinstein, Kerry, Bunning, Bingaman, Salazar, Coleman, Smith, Allard, and Cornyn. Section 202 of S.822 contains the provisions for the commercial building tax deduction, which proposes to increase the current $1.80 whole building and $0.60 per square foot system deduction to $2.25 and $0.75, respectively.
View the final bill (PDF).

On March 20th, NEMA representatives attended the American Council for an Energy Efficient Economy’s (ACEEE) Market Transformation symposium along with attendees representing such other entities as Energy Tax Savers, the Natural Resources Defense Council, and Wal-Mart. Topics included the status of extension bills to the Commercial Buildings Tax Deduction as well as increases to the tax deduction. Through various legislators, NEMA is supporting proposals to:

Extend the CBTD to 2012 (certification) and 2014 (in service)
Add systems from 2005 legislative language (relative to renewable on-site generation, daylighting, efficient wiring, and others)

NEMA reports that the extension bills may pass as early as Summer 2007. In addition, work is underway to affect legislation for new federal efficiency standards relative to federalizing current California standards for metal halide fixtures and redefining mercury vapor lamps from EPAct 2005 standards.

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EPAct 2005 Opportunities Await You….

Tax deductions offered through EPAct 2005 are currently available on qualifying lighting technologies placed into service between January 1, 2006 and December 31, 2008...so don't let the unprecedented opportunity to benefit from a lighting upgrade while taking advantage of government-sponsored financial incentives pass you by!

For more details on the commercial building tax deduction, consult the following existing as well as new and noteworthy resources:

EPAct 2005 Resources:

On June 2nd the IRS issued Notice IR-2006-088, its official procedures enabling commercial property owners to qualify for energy efficiency deductions. Users can access the complete 24-page IRS notice PDF file online.

Recently available! On October 3rd, 2006, NEMA issued its official “Guidance on Energy Policy Act Commercial Building’s Tax Deduction.” This document helps clarify a number of issues for engineers and contractors as it relates to qualification for tax deduction opportunities and offers the procedures and templates which, once completed, can be used by a tax accountant to prepare the necessary documentation for the IRS. This NEMA guidance document can be accessed on the IRS web site.

A website devoted solely to providing information on lighting upgrade activities and related EPAct 2005 tax deduction opportunities was launched in Spring 2006 at www.lightingtaxdeduction.org.

For up-to-the-minute information on EPAct 2005 and related tax incentives, continue to visit www.efficientbuildings.org, www.energytaxincentives.org, or NEMA.org.

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Leading with Lighting

The following real-life case study helps demonstrate how the Central Branch of the Los Angeles Public Library improved its lighting quality and bottom line by pursuing a lighting upgrade:

Click to enlarge - Los Angeles Public Library

“Providing free and easy access to information, ideas, books, and technology that enrich, educate, and empower every individual in the city’s diverse communities,” the Central Branch of the Los Angeles Public Library has been a well-known and high-profile part of the downtown Los Angeles community since its original construction in 1926. The flagship location of a library system that contains 71 branches and which boasted nearly 15 million visitors in 2006, the Central branch is not only home to a broad range of multimedia items and rare books and photographs, but an extensive array of fine and vintage paintings, sculptures, and architectural elements as well. In an effort to continually improve its broad array of services as well as highlight its notable art and architecture, the City of Los Angeles, General Services at the L.A. Library agreed to pursue an extensive lighting upgrade in Spring 2006.

Designed to reduce energy consumption and costs and improve lighting quality, the project involved the upgrade of outdated 3-foot T12 warm-white fluorescent lamps driven by magnetic ballasts, as well as inefficient incandescent sources, to a system involving 3-foot 25-watt and 4-foot 32-watt Advantage ALTO® T8 fluorescent lamps from Philips Lighting driven by 6,500 Optanium® Low Ballast Factor electronic ballasts from Advance. At a temperature of 5000 Kelvin, the high-lumen, long life lamps immediately elevated the library’s lighting system from its previous Color Rendering Index (CRI) of 53 to a considerably more appealing index of 85, improving visual acuity within the interior, while the system significantly reduced energy consumption and associated maintenance concerns. The team saved additional energy by changing out roughly 400 exit signs to highly-efficient LED technology.

Click to enlarge - Library Rack After Upgrade

As a result of the upgrade, the L.A. Library’s Central branch will reduce its energy demand by 244 kW and save an estimated $100,000 annually in energy costs, a nearly 40% reduction. In addition to reducing energy consumption and costs, the contrast, definition, usable light levels, and visual acuity within the library have been significantly enhanced. Says Los Angeles Central Library Business Manager David Luther, “we have received nothing but thanks from staff and patrons for improving lighting in the open book stacks as well as in the accounting and administrative areas. We are very excited about the elevation in visibility and energy efficiency that this outstanding upgrade has brought to our historic facility.”

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News You Can Use

Average Electricity Prices Escalate in 2006
According to the Energy Information Administration, the nation’s average electricity prices in 2006 rose by nearly 9% relative to 2005 levels. Prices to residential customers experienced the greatest increase, rising by 10%, while prices to commercial and industrial sectors rose by 8% and 6.3% respectively. According to the EIA, a major contributor to these increases was the expiration of price caps in many states during the year.

Figure 5: Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, Year-to-Date through December 2006 and 2005

Corporate Barriers to Energy Efficiency
In a recent study by Energy Pulse, experts determined that current misconceptions about energy efficiency remain a barrier to the more widespread implementation of energy-efficient practices in Corporate America. According to the article, many corporate leaders genuinely believe that energy use is an uncontrollable cost of doing business, while others are overly confident that their facilities have already done everything they can to eliminate energy waste. These conclusions are often based on bad information as well as different understandings of what constitutes “energy efficiency.”

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Product Spotlight

Advance Introduces New Mark 10® Powerline Electronic Dimming Ballast With Multiple-Voltage Technology For T5/HO and Long Twin Tube Applications

Designed for enhanced flexibility and versatility, Advance’s compact new Mark 10® Powerline electronic dimming ballast for use with 24-watt T5 High Output and 24-watt Long Twin Tube fluorescent lamp applications is optimal for use in wall sconces, 2 X 2 recessed fluorescent fixtures, and other applications where space may be at a premium. The ballast is also the first in Advance’s Mark 10 Powerline family to feature IntelliVolt® multiple-voltage technology, which enables the ballast to operate at 120 to 277 volts, 50/60 Hz and enhances accuracy and ease of ordering as well as reducing stocking/SKU requirements.

Ideally-suited for meeting rooms and audio/visual presentation spaces, computer-intensive work areas, and private offices, Advance’s Mark 10 Powerline ballasts deliver full-range (100%-5%) continuous dimming capability, allowing users to adjust lighting levels to fit their needs and enhance their visual comfort. Since Advance Mark 10 Powerline dimming ballasts take their dimming signals directly from the power line, no additional control wiring is required, making installation a simple and cost-effective process. In addition, Mark 10 Powerline dimming ballasts can operate with a wide variety of controls from over 20 control manufacturers, including wall box dimmers, architectural dimmers, occupancy sensors, and others. The ballasts also fully support sustainable (“green”) design as measured by LEED (Leadership in Energy and Environmental Design) Green Building Rating System™ performance standards.

Visit the Mark10 Powerline product page.

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Customer Spotlight

Rob Colgan
Executive Director of Marketing for the National Electrical Contractors Association (NECA) and Chairman of the National Lighting Bureau (NLB)

On the impact that EPAct 2005 commercial tax deductions
will have on lighting upgrade activity

Rob Colgan "Through the availability of the EPAct 2005 commercial tax deduction opportunities, end users have more reason than ever to take actions that were in their best financial interests anyway. Lighting upgrades make tremendous economic sense on their own based on the energy savings, quality improvements, and productivity enhancements they drive. Tax deductions are now enabling the market to pursue these activities and enjoy the additional financial benefits of accelerated depreciation. We are confident that the tax deduction opportunity will help raise the priority of lighting upgrades in the commerical sector relative to other capital investments that could be made and that this will truly benefit American businesses as well as the nation's broader energy profile."