Energy
Efficiency
Incentives
By David V. Hartke, AIA, MBA, LEED AP, cSBA, Stampfl Hartke Associates, LLC
Despite the fact that oil (and gas) prices have lowered considerably over the last four months, nearly everyone here
in America understands that our rates can skyrocket anytime those oil drilling or gas-production companies decide
to “create” yet another price increase excuse. Americans
are also very concerned with who “owns” and controls our
gas sources based on the major conflicts petroleum has
caused. The big issue now is that our electricity fees are
about to rise dramatically as the current rate caps (a.k.a.
governmental regulation) end in 2010.
On a more positive note, both our state and federal
governments are currently attempting to deal with these
major dilemmas via tax incentives and grants that support both energy conservation practices and alternative
energy sources. The governmental financial support covers energy conservation and addresses a more holistic
approach which includes building envelope elements such
as insulation and windows.
Pennsylvania has finally approved Ed Rendell’s Energy
Fund of $650 million. The state has split the fund into a
variety of programs that are stretched over a 10 year horizon. That breaks it down to approximately $65 million per
year and will be managed by Pennsylvania’s agencies and
departments starting this year. There will be a need for our
patience, though, due to the fact that each commonwealth
department must first develop a guidance program before
they are able to release the funds. In addition, a few departments must wait for the electric-utility rate cap expiration
that is scheduled for the end of 2010, so some of the funds
won’t be available until 2011.
Homeowners will be reaching out to the DGS
(Department of Government Services) and PADEP
(Pennsylvania Department of Environmental Protection)
for the Consumer Energy Program requesting grants, loans,
reimbursements or rebates for up to 25% of their energy
efficiency improvement cost. This includes geothermal
heat pumps, windows, insulation and efficient lighting.
Another $25 million will be available for the High
Performance Buildings division. Both loans and grants will be
available for homeowners that wish to build their new primary residence or take on a major renovation. DGS and
PADEP will guide the Commonwealth Finance Authority in
their financing endeavors. The amount to be provided individually to the homeowners has yet to be determined. With
$25 million being distributed evenly over the next 10 years,
the expected building incentive for this specific program
16
Spring 2009
will be about $2.5 million per year.
Homeowners with low to medium incomes have yet
another option with low interest loans by the PHFA
(Pennsylvania Housing Finance Agency) as long as they
only need between $1,000 and $10,000. The $5 million
targeted toward this specific industry will only be available in 2008 and 2009.
At the federal governmental level, the Emergency
Economic Stabilization Act 2008 helped extend the homebuilder $2,000 federal tax incentive for energy efficient
home construction. Builders that construct new homes
that are verified to be 50% more efficient than the 2004
IECC (International Energy Conservation Code), will
receive a $2,000 tax credit. This funding is independent of
any state incentives or grants for the owners. Of the energy efficiency design and construction work, at least 15% of
the energy savings must be proven to have been attained
by the home’s insulation. As a safety-net, the Fed provides
a $1,000 tax break if only a 30% to 49% energy improvement efficiency measure is met.
It turns out that residentially-oriented state funds are
coming out during what is, hopefully, the true bottom of
our current recession. Though the total funding is slightl B