Earlier this month, the Internal Revenue Service (IRS) issued an advance copy of a notice
on how commercial building owners or leaseholders can qualify for tax deductions for
making their buildings energy efficient. The commercial building deduction, established
in the Energy Policy Act of 2005, may be as much as $1.80 per square foot of building
floor area for buildings that achieve a 50 percent energy savings target.
There are steps building owners must go through before claiming the deduction, and there
is a somewhat daunting challenge of complying with IRS and the Department of Energy
rules to claim the tax credits.
Still, the overriding point is the federal government recognizes the public policy value
of energy conservation through building design and construction. That's certainly consistent
with the message of SpecRight, and you can expect to see more information about the
tax credits in coming issues.
Mayor Richard Daley of Chicago has plans to provide a financial incentive for building
owners who use green roofs. A measure announced recently at a Chicago City Council
meeting would allow building owners who choose green roofs to receive matching grants
from the city.
Designed to draw attention to green roofing benefits, the program would allocate
$500,000 from a Loop economic development fund to match up to $100,000 of private
building owners' roof investments.
According to Connie Buscemi, a spokeswoman for Chicago's planning department, the
green roof that was placed on Chicago's City Hall in 2001 has reduced the rooftop
temperature by as much as 70 degrees Fahrenheit (or about half) on hot days.
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NRCA offers SpecRight Program training session in Chicago
NRCA will offer its SpecRight Program contractor training session July 28 in Chicago.
The goal of this program is to provide useful and consistent information about roofs,
energy and the environment to building owners, designers and consultants.
Participants will learn how to use NRCA's EnergyWise Roof Calculator software to
demonstrate to building owners how energy costs can be reduced through insulation.
Additional topics include cool roofs and the latest trends in energy codes.
(Web Link) Return to Headlines
IRS announces tax deduction for energy-efficient commercial buildings
The Internal Revenue Service (IRS) released an advance copy of a notice about tax
deductions available for commercial building owners or lessees who install energy-efficient
property. Taxpayers with buildings that have 50 percent energy savings can deduct
up to $1.80 per square foot.
(Web Link) Return to Headlines
INDUSTRY NEWS
"Energy: Wiser on the West Coast"
Business Week (06/02/06) Palmeri, Christopher
In a proposal being put forth by his office, California Energy Commissioner Arthur
H. Rosenfeld notes that all new roof construction would require the use of white
roofing materials. Current regulations only require the use of white materials for
low-slope roofs. State officials and roofing manufacturers are partnering in an
effort to develop pigments that will offer the same energy-efficiency benefits of
white materials in order for the regulations to be extended to steep-slope roofs
and tiles by 2008. California has restrained per-capita electricity consumption
from climbing since the 1970s. The state's per-capita electricity consumption is
at 6,500 kilowatt-hours (kwh) per user compared to between 8,000 kwh and 12,000
kwh per user in other parts of the country. California employs a number of strategies,
such as mandating the use of fluorescent bulbs for new construction and some remodeling
projects.
(Web Link - May Require Paid Subscription)
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Green roofs are just beginning to have an impact in the U.S. as a way to regulate
global warming, beautify urban areas, absorb water from storms and make commercial
buildings more energy efficient. One state where environmentalists hope they catch
on is Hawaii. Honolulu architect Patrick Tozier states, "Green roofs are definitely
possible in Hawaii. I see opportunity in urban areas of Hawaii, retrofitting existing
buildings and places like universities, government buildings and strip malls." Green
roofs' mitigation of rainwater is particularly important to the Aloha State, which
is susceptible to flooding and has burdened water facilities. Additionally, Tozier
reports that rooftop gardens can help "increase the life of roof membranes by protecting
them from temperature fluctuations and ultraviolet lights." Still, high-quality
materials are vital. Building owners should also know that green roofs are costly
to install, but most landlords will be able to recoup their investments as the vegetation
acts like insulation.
(Web Link - May Require Free Registration)
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"Mayors Endorse Call for Greener Buildings"
Contra Costa Times (CA) (06/09/06) Almeida, Christina
The U.S. Conference of Mayors has approved the "2030 Challenge" for city buildings,
an initiative put forth by The American Institute of Architects (AIA) that urges
mayors nationwide to reduce the amount of fossil fuels used by buildings in increments
over the next couple of decades. The ultimate objective will be for all new buildings
to use no fossil fuel energy by 2030. Reductions can be achieved with better building
materials and via the use of natural heating, cooling and ventilation. According
to AIA, buildings and their construction account for almost 50 percent of all greenhouse
gas emissions and energy consumed in the U.S. annually. AIA President Kate Schwennsen
applauded the mayors' group for its support, adding, "This is a tremendous step
taken by the mayors to exert a strong leadership position in addressing the nation's
ongoing energy crisis at a time when global warming is venturing into dangerous
territory."
(Web Link - May Require Free Registration)
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"'Green Roofs' Growing in Bay Area"
CBS 5 (CA) (06/14/06)
Architects, urban planners and environmentalists recently gathered at San Jose State
University to tout the many pluses of green roofs. Among those present was Berkeley
architect Dan Smith, who noted that these environmentally friendly roofs help prevent
flooding by slowing rain runoff in the winter. In the summer, they have proven to
be effective at reducing the heat-island effect in cities. Smith expects more urban-based
buildings will add green roofs in the years ahead, commenting, "To me, it makes
the most sense the more urban you get. I think a lot of high-rises will go for it."
San Jose Councilwoman Linda LeZotte, meanwhile, stated that she hopes her city will
soon offer tax breaks for green roofing.
(Web Link)
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"New Big Box to Have a Circular Sod Roof"
Summit Daily News (CO) (05/27/06) Best, Allen
The unique Traer Creek Plaza building in Avon, Colo., will feature a sod roof with
a longer life expectancy than a traditional roof. The circular building stands in
contrast to two nearby big-box buildings owned by retailers Wal-Mart and Home Depot.
The Traer building's sod roof will allow the building owner to spend less on air
conditioning, and water from storms will drain without being polluted. In addition,
the sod roof will put out more oxygen and will serve as a habitat for insects. The
building has structures similar to an archer's bow that take the place of interior
columns, giving the building a curved and flexible roof that can move in any direction.
A drip irrigation system will feed the sod roof, which will be comprised of 17 species
of sprout-like sedum pod. The sod roof will change colors with the seasons, from
rust brown in the fall to yellow to orange and then to green.
(Web
Link - May Require Free Registration)
Return to Headlines
"Spaces and Places: Write-Off for Energy Savings Creates 'a
Lot of Uncertainty'"
San Jose Mercury News (CA) (06/13/06) Conrad, Katherine
Tax deduction 179D of the Internal Revenue Code, contained in the Energy Policy
Act of 2005, offers commercial building owners and renters a deduction of $1.80
per square foot if they install equipment that cuts their energy usage by 50 percent--a
tough standard, to be sure. For those who achieve less, there is a deduction of
up to 60 cents per sq. ft. depending on the amount of energy saved. When taking
into account that energy costs for a commercial property can range from $1.30 to
$3 per sq. ft. a year, that is a substantial amount of potential savings. Still,
it is not clear how many businesses this will benefit, as the IRS waited until June
2 to release details--even though the law took effect back in January. Additionally,
the tax break is only available through the end of next year unless Capitol Hill
lawmakers extend it. Karen W. Penafiel, assistant vice president of BOMA International,
says that may not be sufficient time for some building owners to retrofit their
heating, ventilation and air conditioning systems. She asks, "What happens if your
system isn't up and running until Jan. 3, 2008?" Penafiel is now lobbying Congress
to extend the deduction period by three years.
(Web Link - May Require Free Registration)
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"Retail: Deal Lets Lowe's Open in Vermont"
Washington Post (05/25/06) P. D2
Lowe's has settled pollution complaints in Vermont and will proceed with the development
of its first store in the state. The retailer agreed to filter and treat storm runoff
from its South Burlington site and to test green roofs on all future stores. Lowe's
was forced to halt development of the property in the late summer of 2004. It now
hopes to have the new location up and running by mid-2008.
(Web Link - May Require Free Registration)
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"Out of the Computer"
Metropolis (05/06) Zacks, Stephen
Clemson University architecture professor Virginia San Fratello has won this year's
Next Generation ideas competition, sponsored by Metropolis magazine, with her design
of a "Hydro Wall" building insulation component. The Hydro Wall collects rainwater
from a building's roof and stores it as a thermal mass in a rubber bladder inside
the wall. The goal is to reduce air-conditioning costs and energy consumption in
hot climates with large daily temperature swings. Ideally, San Fratello would like
to produce the Hydro Wall in 20- by 4-foot sections that could be put up like tilt-up
concrete panels, with intervals corresponding to structural steel beams.
(Web
Link)
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"Bigger Tax Credits Energize Solar Power Business"
Pacific Business News (05/28/06) Wu, Nina
Higher energy costs and tax credits are fueling demand for photovoltaic energy systems
in Hawaii, which in turn is shifting contractor strategy. Commercial Roofing + Waterproofing
Hawaii, for example, has invested about $350,000 for solar panels and training.
Owner Guy Akasaki is banking on photovoltaic solar roofing to be a hot market, particularly
among commercial and industrial clients like supermarkets and transportation companies.
"It makes business sense," Akasaki said. "If it was only good for the environment
and not economically feasible, we wouldn't do it. With the price of fuel increases,
the feasibility of these systems will kick in."
(Web Link - May Require Free Registration)
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"'Green' Loans Touted as Profit Opportunity"
American Banker (05/09/06) Berg, Joel
Few are aware that energy-efficient building features can provide some commercial
and residential mortgage borrowers with sufficient additional income to service
their debt, thus helping to make them eligible for larger loans. Financial consultant
Scott Muldavin remarked, "There's a significant profit opportunity for lenders that
understand these issues and can appropriately value the costs and benefits." Wells
Fargo & Co. has made loans on a total of eight green buildings, several of which
involved tenants willing to pay higher rents for green features such as more efficient
heating and air-conditioning systems. One of the loans was a $20.5 million construction
loan for an 11-story commercial tower in Boise, which developer Gary Christensen
said will boast energy-efficient features that will save roughly $2 per square foot
in operating costs.
(Web Link - May Require Paid Subscription)
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"Building 'Green' Is Growing in Popularity"
Dayton Daily News (OH) (06/03/06) Nolan, John
The Dayton, Ohio, metro area is seeing more and more environmentally friendly buildings
being added to the landscape. American Honda Motor Co., for instance, recently announced
plans to develop an $89 million parts distribution facility in suburban Troy. Scheduled
for a fall 2007 grand opening, the center will boast a white roof to reflect instead
of absorb the sun's heat. Consequently, the roof will hold down the building's cooling
costs. This will be Honda's fourth green-workplace building in the U.S. Nearby,
Wright State University recently started constructing its third biological sciences
building. This project adheres to "green" principles, including energy efficiency
and water conservation.
(Web Link)
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"Reduce Energy Costs With Roofing Asset Management Software"
Buildings (05/06) Vol. 100, No. 5, P. 32; James, Steven
Most of today's commercial building owners are quite savvy when it comes to different
roofing elements and how the roles they play in reducing a structure's energy costs.
However, many such landlords are unaware that managing these roofing elements is
also an integral part of energy conservation. To this end, there are a number of
roof asset management software programs available that make it easier for owners
and managers to gather, store and access the data necessary to get the most out
of their roofing investments. One of the key steps in managing the energy costs
of roof systems is taking inventory of the details and specifics of existing roofs.
This information can be collected and managing in a roof asset management database.
Ideally, such a system will offer simple ways to enter this data into the system.
A second key factor in a roof's energy performance is the condition of the roofing
materials. This entails everything from checking for any roof leaks to determining
whether a roof is due to have its white coating reapplied. The best roof asset management
software programs will automatically flag when a building's roof is due for routine
inspections and maintenance.
(Web
Link)
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SpecRight News is an executive summary of
noteworthy articles of importance to roofing contractors, architects, designers,
facility managers, building owners and others who care about conserving energy and
protecting the environment.
About the SpecRight Program:
In recent years, the roofing industry has learned a quality roof can perform a number
of other important functions beyond providing protection from the elements. These
include:
Helping to conserve energy
Protecting the environment by reflecting solar energy, through vegetative cooling
or both and contributing to a reduction in ambient temperatures in urban environments
Playing a role in the control and treatment of stormwater runoff, especially with
the development of vegetated, or "green," roofs
Contributing to the aesthetics of the building community with the advent of different
roofing materials and plant life that offer variety of colors
Providing possible tax incentives, depending on location
The SpecRight Program was conceived by NRCA as part of an effort to better inform
the building owner community about the important role quality roof systems play
in conserving energy and protecting the environment.
For more information about the SpecRight Program, contact:
Ambika Bailey
NRCA's Director of Communications
(800) 323-9545
National Roofing Contractors Association
10255 W. Higgins Road
Suite 600
Rosemont, IL 60018-5607