Pennsylvania PUC hears presentations on energy conservation and demand side response
HARRISBURG – The Pennsylvania Public Utility Commission (PUC) held a hearing last week on alternative energy resources, energy conservation and efficiency, and demand side response. Various points of view were expressed by industry representatives. Their presentations are available on the PUC Web site.
PA Governor, Ed Rendell, signed House Bill 2200 into law as Act 129 last month. Act 129 requires utilities to adopt cost-effective plans to cut electricity use 1 percent by 2011 and 3 percent by 2013. Utilities must also implement plans to cut energy use 4.5 percent during peak demand periods when prices are highest—typically the hottest days of summer and coldest days of winter—by 2013. Electric utilities that fail to meet the law’s requirements may face steep penalties. The cost of the energy efficiency and conservation plans will be recovered from the ratepayers.
Acting PA Department of Environmental Protection Secretary John Hanger is pushing for the implementation of advanced meters, aka “smart meters”, that allow consumers to respond to higher prices during periods of peak demand by shifting their consumption to times when power prices are lower. Act 129 requires that utilities must provide their customers with smart meters within 15 years.
New PA law will reduce energy demand and consumption and expand alternative energy sources
PUC Commissioners Direct Implementation of House Bill 2200 (PUC Press Release 10/9/08)
HARRISBURG – The Pennsylvania Public Utility Commission (PUC) unanimously approved a Motion October 09, 2008 to begin implementation of House Bill 2200, which expands the PUC’s oversight responsibilities and imposes new requirements on the Electric Distribution Companies (EDCs), with the overall goal of enhancing procurement; reducing energy demand and consumption; and expanding alternative energy sources. Read more
Small Wind Turbine Federal Tax Credit is Law
Small Wind Turbine Federal Tax Credit is Law (GEO)
The legislation signed into law on October 3, 2008 — the Energy Improvement and Extension Act as part of (i.e. Division B) H.R. 1424, the Emergency Economic Stabilization Act of 2008 — also includes a new federal investment tax credit to help consumers purchase small wind turbines for home, farm, or business use. Owners of small wind systems with 100 kilowatts (kW) of capacity and less can receive a credit for 30% of the total installed cost of the system, not to exceed $4,000. The credit will be available for equipment installed from today through December 31, 2016. For turbines used for homes, the credit is limited to the lesser of $4,000 or $1,000 per kW of capacity.
Earlier this week I posted another entry about this legislation with respect to the extension and expansion of a similar credit for the solar industry that was first passed in 2005. Residential and commercial solar PV installations can receive a 30% credit, capped at $4,000 for residential applications and uncapped for commercial uses.
Energy Improvement and Extension Act of 2008
On October 3, 2008, following weeks of contentious negotiations between the House and Senate, Congress approved, and the President signed into law the Energy Improvement and Extension Act of 2008 as part of (i.e. Division B) H.R. 1424, the Emergency Economic Stabilization Act of 2008 — a.k.a. the bailout bill.
Sec. 303 of the Energy Improvement and Extension Act of 2008 extends the Energy Efficient Commercial Buildings Tax Deduction from 2008 through 2013.
SEC. 303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION - Subsection (h) of section 179D is amended by striking `December 31, 2008′ and inserting `December 31, 2013′.
What is the Energy Efficient Commercial Buildings Tax Deduction?
- The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap.
How does the Energy Efficient Commercial Buildings Tax Deduction apply to lighting upgrades?
- From January 1, 2006 until the Treasury Department issues final regulations defining savings targets for individual building systems, the Commercial Buildings Deduction’s Interim Rules for Lighting Systems are in effect. The Interim Rules offer an accelerated tax deduction that is the lesser of: The complete cost of installing energy-efficient interior lighting; or $0.30 to $0.60/sq.ft. proportional to lighting power density (watts per square foot) savings of 25% to 40% below ASHRAE the 90.1-2001 standard lighting power density, which varies by building type.
Click here for the full text of the Energy Improvement and Extension Act of 2008 as well as H.R. 1424. Table of contents provided below.
Provisions of solar investment tax credit (ITC) extension & expansion
Last week I highlighted some of the energy-related tax incentives that passed with the bailout bill earlier this month. One of those incentives is the 8-yr extension and expansion of the solar investment tax credit (ITC).
Federal Solar Tax Credits Extended for 8 Years (Green Energy Ohio)
This landmark legislation is part of H.R. 1424, the Emergency Economic Stabilization Act of 2008, designed to address the U.S. financial crisis. It is the most significant federal policy ever enacted for the solar industry. The solar investment tax credit (ITC) provisions will:
- Extend for 8 years the 30-percent tax credit for both residential and commercial solar installations;
- Eliminate the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent tax credit (effective for property placed in service after December 31, 2008);
- Eliminate the prohibition on utilities from benefiting from the credit;
- Allow Alternative Minimum Tax (AMT) filers, both businesses and individuals, to take the credit;
- Authorize $800 million for clean energy bonds for renewable energy generating facilities, including solar.
According to a Navigant Consulting report, extending the ITC is expected to create 440,000 jobs and encourage $325 billion of private investment in the solar industry.
Cincinnati offers incentives to residents and businesses for green roofs
CINCINNATI (AP) — Officials want to see more green roofs on building tops in Cincinnati.
The City Council on Wednesday became the first in Ohio with a plan to channel grants and loans to residents and businesses to replace tar and shingles with vegetation.
Supporters of the idea want to see Cincinnati become a leader in green roofs, a European-born movement that has spread to only a few U.S. cities, including Chicago, Milwaukee and Seattle.
They say the greenery not only is pleasing aesthetically but reduces stormwater runoff, filters pollutants and cuts heating and cooling costs. Read more
Financial bailout bill passes with tax credits for renewable energy, PHEVs, bike racks
The bill’s renewable energy tax break incentives include:
– An eight-year extension of investment credits for solar energy, as well as breaks for wind, geothermal and other alternative sources.
Other tax breaks in the bill:
– A tax credit for purchasers of plug-in hybrid electric vehicles with a battery pack of at least 4 kWh of capacity (effectively excluding the first generation of Toyota plug-in hybrids). This credit is $2,500 plus $417 for each kWh of battery pack capacity in excess of 4 kWh, to a maximum of $7,500 for light-duty vehicles, and up to $15,000 for vehicles weighting more than 26,000 pounds. The Chevy Volt has a 16-kWh battery pack, so it would get the maximum credit. Cost: $758 million.
– A tax deduction for employers expenses on some fringe benefits for workers who commute to work by bicycle, for example reimbursing the cost of parking the bikes. Cost: $2 million.
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NYMEX: Light, Sweet Crude Oil (CL)
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NYMEX: Natural Gas (NG)
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NYMEX: Heating Oil (HO)
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EIA: Retail Prices
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Bloomberg: Wind Energy Index
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MAC: Global Solar Energy Index