Introduction

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National Update: EPAct 2005

On April 23rd, 2007, NEMA Vice President of Government Relations Kyle Pitsor testified before the U.S. Senate Energy & Natural Resources Committee on the Senate bill S. 1115, which is the vehicle for several energy policy legislative solutions. Among other positive developments for the lighting arena, the comments requested such activities as a specific date for federal government procurement regulations on general purpose lighting, regulation of ER/BR incandescent reflector lamps, a ten-year market transformation for improved lighting energy efficiency, and clarification of the EPAct 2005 mercury vapor ballast phase out with appropriate exclusions. Pitsor’s testimony also lobbied against restrictions to federal preemption for cases where a product is excluded from federal regulation by Congress or DOE and for cases where the DOE decides in a rulemaking that standards are not warranted.

House and Senate bills S.822 and H.R. 1385, which propose to extend the commercial buildings tax deduction eligibility dates beyond December 31 st, 2008, are going forward.

On May 1 st, 2007, NEMA President Evan Gaddis testifed before the U.S. House Energy & Air Quality Subcommittee on the topic of the DOE efficiency standards program.

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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:

• 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.

• On June 2 nd, the IRS issued Notice IR-2006-088, its official procedures enabling commercial property owners to qualify for energy efficiency deductions. Information describing the contents and qualifications for the certification are listed in Notice 2006-52, Deduction for Energy Efficient Commercial Buildings, which can be found at www.irs.gov.

• 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 one institutional entity, Ontario’s Joseph Brant Memorial Hospital, improved its lighting quality and bottom line by pursuing a lighting upgrade:

Faced with continuously escalating electricity prices, the Building Services team at Ontario’s Joseph Brant Memorial Hospital recently undertook an extensive lighting upgrade to help reduce energy consumption and costs throughout the 380,000 square foot, 300-bed facility. The team selected a high-efficiency 25-watt fluorescent lamp system driven by low-watt electronic ballasts to replace their existing T12 and early-generation T8 lighting technology. Following the upgrade, light levels visibly improved, particularly in those areas that contained older T12 lighting. And energy cost savings as a result of the upgrade to T8 technology were significant, with Joseph Brant expected to enjoy an up to 40% reduction in energy costs in those areas upgraded from T12 lighting and 20-30% savings potential in those areas upgraded from early-generation T8 technology. The team expects the upgrade to deliver a less than two-year payback and an attractive 50%+ return on investment.

“We are delighted with the results of the upgrade so far,” concludes Joseph Brant Director of Engineering and Building Services Duncan McGill. “Overall, energy has become a bigger and bigger part of everyone’s operating cost structure and cost savings opportunities are an imperative. Our lighting upgrade should serve the hospital well in the form of markedly improved costs, enhanced light levels, and a more standardized and easy-to-maintain lighting configuration for well into the future.”

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News You Can Use

Competition in U.S. Power Markets Hasn’t Developed as Planned
According to a report submitted to the U.S. Congress in April, retail competition in U.S. electricity markets has failed to lead to the lower prices and increased consumer choice envisioned by most of the states that decided to restructure their power markets. As of 2006, 16 states and the District of Columbia had restructured their markets to allow new, independent power companies to compete with large electric utility monopolies. The goal was to foster greater competition in electricity markets so that customers could enjoy lower prices, better service and efficiency, and environmental improvements. However, a task force found that few residential customers have switched to new power providers, with exceptions in the states of Massachusetts, New York, and Texas.

LED Lighting on the Move
According to a recent study on the market for light emitting diodes, LEDs are growing at a marked rate based on their long life, efficiency, and bright illumination. While they are utilized primarily today in outdoor, architectural, and indoor specialty applications and have not yet significantly penetrated the general lighting market, experts believe that this is just a matter of time. LED penetration of the general lighting market was estimated to be valued at under $250 million in 2005, but is expected to grow to $1 billion by 2010.

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Product Spotlight

Advance Introduces Optanium® High Efficiency Electronic Ballasts With New Step-Dim Capability for the Operation of Two 28 Watt T5 Fluorescent Lamps

Advance recently expanded its popular family of Optanium® high-efficiency electronic ballasts to include a new electronic ballast with Step-Dim capability for the operation of two 28 Watt T5 fluorescent lamps.

Ideal for recessed lighting applications within commercial, institutional, and retail settings, the ballast’s high efficiency electronic design maximizes energy savings and operates from any line voltage switching device such as standard toggle switches and occupancy sensors. Compact and lightweight to promote enhanced versatility and design freedom, the ballast is available in two different ballast factor options – .95 and 1.15 – to deliver additional energy savings. The ballast incorporates programmed start lamp ignition to provide extended lamp life in frequent switching applications and also features Advance’s exclusive IntelliVolt® multiple voltage technology, which enables the ballast to operate at 120 to 277 volts, 50/60 Hz, enhancing accuracy and ease of ordering as well as reducing stocking/SKU requirements. Fully compliant with California Title 24 requirements by reducing power to 50% of full light output, the ballast also incorporates enhanced safety features such as auto restart and ballast shutdown mode.

Highly efficient, Advance’s family of Optanium electronic ballasts can help reduce energy consumption by over 45% relative to older systems involving T12 lamps and magnetic ballasts and by 20-30% relative to conventional T8 lamps and electronic ballasts. Suitable for both new construction and retrofit opportunities, Optanium electronic ballasts represent a maximum-efficiency, high-performing lighting solution for today’s professional lighting applications.

Visit the Optanium product page.

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Customer Spotlight

Ed Gray
Director of Energy Infrastructure, NEMA

On the DOE efficiency standards program

“NEMA believes that a robust national program is the best way to save energy and oppose unique state standards that would increase costs to manufacturers, distributors, and retailers which the consumer would ultimately bear.”

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Lighting Library...

See the following recent trade articles for reference information on EPAct 2005 and tax deduction opportunities:

“Many Ways for Facilities to Go Green”
Building Operating Management, May 2007
Read article...

“Brighter Days Ahead”
Today’s Facility Manager, April 2007
Read Article...

“Occupancy Sensors 101”
EC&M, April 2007
Read Article...

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