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Legislation and Energy Policy: Federal and State Incentives and Mandates. Energy and Sustainability Policy – From Inside the Beltway Duane Desiderio VP and Counsel The Real Estate Roundtable Washington, DC www.rer.org. NJ-PA Sustainability Symposium Rutgers-Camden March 31, 2011.

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Legislation and Energy Policy:

Federal and State Incentives and Mandates

Energy and Sustainability Policy – From Inside the BeltwayDuane DesiderioVP and CounselThe Real Estate RoundtableWashington, DCwww.rer.org

NJ-PA Sustainability Symposium Rutgers-CamdenMarch 31, 2011

Energy efficiency incentives
Energy Efficiency Incentives

  • Last Congress

    • Rebates: Cash for Clunkers, Building STAR

  • New Congress

    • Tax Reform

      • Commercial Buildings Deduction, IRCode §179D

      • Improve from 2005 Energy Policy Act

        • ASHRAE Baseline; Designs vs. Performance

        • Sliding Scale; 20% - 50%, in 5% increments

        • REITS

        • “Defined Spaces”

The Real Estate Roundtable

White house better buildings initiative bbi
White HouseBetter Buildings Initiative (BBI)

  • Financial Incentives

    • 179D Tax Re-Design

    • Loan Guarantees for Building Retrofits

    • “Scoring”

    • Jobs Creation

  • Challenge to Building Owners

  • Grants to State and Local Governments

The Real Estate Roundtable

Federal mandates
Federal Mandates

  • Federal Building Codes

    • For new construction and substantial rehab

    • Proposed standards not cost feasible

    • Don’t consider tenant behaviors

  • Focus instead on Energy Dept’s role in codes-setting process, not fed regs.

  • GSA Requirements

The Real Estate Roundtable

Federal envt l issues
Federal Envt’l Issues

  • Stormwater

    • “Retrofits” of existing properties

    • Enhanced municipal requirements

  • Lead Paint Renovation and Repair

    • Pre-1978 target housing

    • Expand to commercial buildings

    • Impact on energy retrofits

The Real Estate Roundtable


The Real Estate Roundtable

  • NJEDA Programs

    • Clean Tech/Energy

    • HUB; BEIP; BRAG; ERG; Green Growth Fund; Edison Innovation Fund

EDA - Who We Are

  • State financing and economic development agency dedicated to serving as New Jersey’s “bank for business” by offering:

  • Financing Assistance

  • Tax Incentives

  • Real Estate and Redevelopment Assistance

  • Access to Small Business Services

Clean Energy Manufacturing Fund (CEMF)

  • Designed to support companies looking to site a Class I renewable

  • energy or energy efficiency product manufacturing facility in New

  • Jersey.

  • New Jersey clean technology manufacturers can receive funding

  • under two separate components: project assessment and design,

  • and project construction and operation.

  • In total, up to $3.3 million in grants and interest-free loans

  • available.

  • - Up to $300,000 for predevelopment

  • - Up to $3 million as a low-interest, 10-year loan to support site

  • improvements, equipment purchases, and facility construction

  • and completion.

Petra Solar, Inc.

  • Awarded $3.3 million through CEMF to support the purchase of equipment and

  • machinery and the company’s planning/design process.

    • Project will result in total public/private investment of over $7.6 million.

    • Petra expects to create more than 164 new jobs over two years.

  • Received a $200 million contract from PSE&G to install 200,000 solar panels

  • on utility poles and street lamps following BPU approval of PSE&G’s Solar 4

  • All program.

  • 15

    Clean Energy Solutions Capital Investment


    Nautilus Solar received $5 million to build the largest solar energy facility at a university in the U.S. The 3.5 MW system will save William Paterson University $4.3 million in energy costs over the next 15 years.

    • With the goal of reducing the amount of greenhouse gases produced in New

    • Jersey, the Clean Energy Solutions Capital Investment Grant/Loan Program

    • provided loans and grants to support commercial, institutional, and industrial entity

    • end-use energy efficiency projects, CHP production facilities, and new state-of-the-

    • art efficient electric generation facilities, including renewable energy applications.

    Clean Energy Solutions ARRA

    Combined Heat and Power (CHP) Program

    NRG Thermal Energy was approved for a $1.9 million grant to establish a 4.6MW cogeneration facility that will serve the new University Medical Center of Princeton at Plainsboro.

    • In 2010, the EDA and BPU also launched the Clean Energy Solutions ARRA CHP

    • Program, a competitive solicitation that made project based grants available to

    • commercial, institutional or industrial entities (including public and not-for-profit

    • entities) in New Jersey with a CHP project. The federally allocated funding was

    • available in an amount of $450 per kW of installed electric generation.

    Offshore Wind Economic Development Act

    • Offshore Renewable Energy Certificate (OREC) Program that calls for a

    • percent of electricity sold in the state to be from offshore wind energy to

    • support at least 1,100 MWs of generation from qualified offshore wind

    • projects.

      • BPU will administer credits to wind energy producers for each MW of

      • electricity generated by offshore wind farms. Producers can sell the

      • credits to offset production costs of offshore wind projects.

    • Tax credits through the EDA for businesses that construct manufacturing,

    • assemblage and water access facilities to support the development of

    • offshore wind projects.

      • Businesses may be eligible for a credit up to 100% of its capital

      • investment in a qualified wind energy facility located within the South

      • Jersey Port District.

      • The value of credits approved by the EDA may be up to $100 million.

    New Green Programs

    Expected to Launch May 2011

    • Edison Innovation Green Growth Fund

    • Loans of up to $1 million to Class I renewable or energy efficient clean

    • technology companies that are seeking funding to grow and support

    • their technology business. May convert to a 50 performance grant.

    • Companies must have commercial revenues.

    • Energy Efficiency Revolving Loan Fund

    • Loans of up to $2.5 million to support 100% of the eligible project costs

    • of commercial or industrial entities that received funding under BPU’s

    • Pay for Performance program or the Large Energy Users Programs,

    • which became available in 2011. The loan can be used for energy

    • efficiency whole building C&I projects (retrofit and new construction).

    Expansion/Relocation Incentives

    Redevelopment Assistance

    Additional Sources of Financing, Capital & Assistance

    • NJ BPU – Office of Clean Energy - http://www.njcleanenergy.com/

    • NJ DEP – Office of Economic Growth & Green Energy - http://www.nj.gov/dep/egge/

    • NJ Utilities (e.g. PSE&G Solar Loan Program)

    • Banks and other Commercial Lending Partners

    • Angel Investors & Venture Capital

    • Strategic Partners

    • Foundations & Non-Profits

    Michael A. Wiley

    Sr. Venture Officer – Technology & Life Sciences Division

    New Jersey Economic Development Authority

    [email protected]

    Business Action Center: (866) 534-7789



    • Measurement Mandates

      • NYC, DC, Seattle, San Francisco, Austin, Los Angeles, CA (state)

    • USGBC

      • What is LEED and is it Law

    • ASHRAE 189

      • What is it and how might it effect you