Hobergs Club Dan Nelson on the Energy Efficiency Program

The Energy Policy Act of 2005 (EPAct) was passed in 2005 by president George W. Bush, to combat growing energy problems by providing tax incentives and loan guarantees for energy production of various types.

EPAct provides a tax deduction, limited to an amount up to $1.80/sq.ft for exceeding the ASHRAE/IESNA energy standards by up to 50%, to the property for which the energy efficient expenditures are made for new construction or renovations. ASHRAE is a building technology society that focuses on building systems, energy efficiency, indoor air quality, refrigeration and sustainability within the industry.

Lighting energy consumption is estimated to represent approximately 1/3rd of commercial building energy use. As a result, lighting is recognized as a qualified energy savings system that is eligible for a partial tax deduction up to $0.60/sq.ft and not exceeding the costs incurred for the energy efficient interior lighting system.

Savings By Design (SBD) is California’s nonresidential new construction energy efficiency program, provided in accordance with the Energy Policy Act. It is administered statewide and funded by Utility customers through the Public Purpose Programs surcharge for gas and electric services.

The program will offer us financial assistance to help offset possible increased costs associated with energy efficient buildings. The Owner and Design Team Incentives are based upon the project’s estimated annual energy and demand savings and are calculated according to the rates and program entry levels shown on the PG& E Website.

There are two performance-based design approaches; the “Whole Building Approach” and the “Systems Approach.” These options are available to identify and quantify energy-efficient design improvements. Additionally, the approaches provide the flexibility required to serve a large range of nonresidential projects and, whichever approach is taken, all services are available.

Design assistance and consulting is offered by PG&E professionals at no charge to Lake County Partners’ LLC and our design team. Assistance may be as simple as providing plan review and recommendations or may be as involved as full energy modeling with financial analysis on multiple options for energy efficient systems. After discussing project specifics, the SBD Representative will help select the most advantageous approach and goals of the project.

Incentive payments are issued after construction completion is confirmed by an on-site verification and when all other required documentation has been received. The final incentive amount is calculated based on the installed features. Final incentive payments could be greater than initially confirmed estimates as a result of changes in the design or installation of additional energy efficiency measures.