The Greening of the Rooftop Module 10 Green Roofing & Public Policy Regulations & Incentives

Green Roofing & Public Policy Green Incentives Federal Policies State & Local Programs

Green Roofing & Public Policy Green Incentives Energy –Clean Energy (Solar, Wind) –Energy Efficiency Water –Storm Water & Roofs Air –Clean Air / Clean Energy

Federal Tax Incentives –Energy Policy Act of 2005 –Energy Improvement and Extension Act of 2008 Federal Purchasing Policies –Energy Policy Act of 2005 –Energy Independence & Security Act of 2007 –Executive Order State & Local Policies & Incentives Green Roofing & Public Policy Clean Energy / Energy Efficiency

Energy Policy Act of 2005 / Energy Improvement & Extension Act of 2008 Commercial Solar Investment Tax Credit Residential Solar / Wind Tax Credit Residential Energy Efficiency Credit Commercial Building Tax Deduction Clean Energy Bonds Key Roofing-Related Provisions

Energy Policy Act of 2005 / Energy Extension & Improvement Act of 2008 Commercial Solar Tax Credit Applies to new or existing buildings The 30% tax credit may be applied toward –Roof-mounted PV (including balance of system) –Roof-mounted solar water heating –Building integrated PV (BIPV) The 30% tax credit may be combined with other available incentives –State rebates & tax credits –Utility company rebates –Utility company power purchase agreements

Energy Policy Act of 2005 / Energy Extension & Improvement Act of 2008 Residential Clean Energy Credit Applies to new or existing homes A 30% tax credit may be applied toward –Roof-mounted PV (including balance of system) –Roof-mounted solar water heating –Building integrated PV (BIPV) –Roof-mounted wind power ($4000 cap) The federal tax credit may be combined with other available incentives –State rebates & tax credits –Utility company rebates (1) IRS Notice Note: The $2000 Cap on Residential Solar / PV Has Been Removed!!

Energy Policy Act of 2005 / Energy Extension & Improvement Act of 2008 Residential Energy-Efficiency Credit Applies to new or existing homes A $300 tax credit may be applied toward –Roof skylights –Energy Star-rated metal roofing –Roof insulation The 30% tax credit may be combined with other available incentives –State rebates & tax credits –Utility company rebates (1) IRS Notice

Energy Extension & Improvement Act of 2008 Commercial Building Tax Deduction Applies to new or existing buildings Available through 2016 A total $1.80 tax deduction may be divided between partial deductions for: –Lighting systems: $0.60 / sq. ft. –Heating & cooling systems: $0.60 / sq. ft. –Building envelope: $0.60 / sq. ft. The tax deduction may be taken for both private and public projects: –Private Project: The building owner receives the deduction –Public Project: The building designer receives the deduction (1) (1) IRS Notice New!!

How the Commercial Building Tax Deduction Works Building Envelope Partial Deduction In order to qualify for the $0.60 partial deduction, the building envelope must provide at least a 10% reduction over ASHRAE in the combined usage of the building’s heating, cooling, ventilation, hot water, and interior lighting systems (1) Energy calculations must be performed and certified by a design professional using approved energy software (2) The deduction must be taken in the year the building or the energy improvement is placed in service Roof insulation and reflective roof surfaces may be used in part to achieve the 20% reduction (1)IRS Notice (2)List of approved software available at

How the Commercial Building Tax Deduction Works Lighting Partial Deduction Total building lighting power density must provide at least a 25% reduction (1) beyond current requirements of ASHRAE –25% reduction earns $0.30 per sq. ft. deduction –40% reduction earns $0.60 per sq. ft. deduction –Deduction may be interpolated between 25% and 40% Energy calculations must be certified by a design professional (1) The deduction must be taken in the year the building or the energy improvement is placed in service Rooftop daylighting may be used in part to reduce total power density (1)IRS Notice

Federal Energy Tax Incentives Find Out More … The Tax Incentives Assistance Project

Current Federal Energy Policy Federal Energy Purchasing Policies Energy Policy Act (2005) / Energy Independence and Security Act (2007) –All new Federal buildings must be constructed to provide a minimum 30% reduction in energy consumption beyond ASHRAE (1) –Provides preference for Energy Star -labeled products (2), including Energy Star Commercial Roofing Products –Requires that at least 30% of hot water requirements in Federal buildings must be provided by solar water heating (1)To the extent that the construction is life-cycle cost-effective (2)To the extent that the product is cost-effective

Current Federal Energy Policy Federal Energy Purchasing Policies Executive Order (Green Power Purchasing) –Sets long-term goals for clean energy usage by the Federal government 3% in % in % in 3013 and beyond At least 50% of clean energy must come from new sources –Sets a goal of at least 20,000 solar energy systems on Federal buildings by 2010 (Million Solar Roof Initiative)

Green Roofs, Clean Energy & Energy Efficiency State & Local Incentives Incentives may take many forms: –Tax credits (income / property / sales) –Fee reductions / exemptions –Grants –Loans –Rebates

Corporate Tax Credits Renewable Energy Production Tax Credit Renewable Energy Technologies Investment Tax Credit Sales Tax Exemptions Renewable Energy Equipment Sales Tax Exemption State Grant Programs Renewable Energy Technologies Grants Program State Rebate Programs Solar Energy System Incentives Program Utility Rebate Programs Florida Power and Light - Business Energy Efficiency Rebates Gainesville Regional Utilities - Commercial Energy Efficiency Rebate Program Gainesville Regional Utilities - Solar-Electric (PV) System Rebate Program JEA - Solar Incentive Program Progress Energy Florida - Commercial Building Envelope Improvements Program Progress Energy Florida - Commercial Equipment Rebate Programs Tampa Electric - Commercial Cooling Energy Efficiency Rebate Program State Incentives Example State of Florida (1) (1) Partial Listing Source:

Property Tax Exemption Property Tax Exemption for Renewable Energy Systems Sales Tax Exemption Sales and Use Tax Exemption for Energy-Efficient Products Sales and Use Tax Exemption for Solar and Geothermal Systems State Grant Program CCEF - On-Site Renewable DG Program State Rebate Program CCEF - Solar PV Rebate Program Utility Rebate Program Connecticut Light & Power - Operation and Maintenance Program Connecticut Light & Power - Small Business Energy Advantage Program Groton Utilities - Commercial & Industrial Energy Efficiency Rebate Programs The United Illuminating Company - Small Business Energy Advantage Program State Incentives Example State of Connecticut (1) (1) Partial Listing Source:

Roofs, Clean Energy & Energy Efficiency State & Local Incentives Database of State Incentives for Renewables and Efficiency (DSIRE) Check out the incentives in your state – all at one web site:

Green Roofing & Public Policy Clean Water Federal Policy –Legislation: Clean Water Act (1985) / Water Quality Act (1987) –Enforcement: Environmental Protection Agency (EPA) State & Local Policy –Legislation: Varies, but tends to follow Clean Water Act –Enforcement: State environmental agencies participate in enforcing the Clean Water Act

Clean Water Act The Clean Water Act & Storm Water Runoff (1) Natural Resources Defense Council v. Train, 396 F.Supp (D.D.C. 1975), aff'd. by NRDC v. Costle, 568 F.2d 1369 (D.C. Cir. 1977). The Clean Water Act (1985) directed the EPA to regulate water pollutants, but the act did not specifically direct the EPA to regulate storm water runoff. In a 1975 decision (1), the U.S. Supreme Court ruled that storm water was covered by the Clean Water Act and must be regulated This decision has lead to a variety of regulatory approaches to decrease pollution caused by storm water runoff.

Clean Water Act Storm Water Runoff and Combined Sewer Overflows Source: Clean Solutions for Omaha (

Combined sewer system are remnants of the country's early infrastructure and so are typically found in older communities. Combined sewer systems serve roughly 772 communities containing about 40 million people. Clean Water Act Combined Sewer Overflows Cities with Combined Sewer Systems Source: US EPA

Combined Sewer Overflows Urban Sewer Overflow Strategies Replace combination sewers with separate storm / sanitary sewers ($$$$) Construct overflow holding tanks to hold storm overflows and gradually divert to the treatment plant ($$) Construct water-retaining vegetated roofs on urban buildings ($)

Combined Urban Sewer Overflows Communities with Vegetated Roof Incentives Fast-track project approval & reduced permit fees Limited investment offsets Pilot offset incentive program Reduced development fees Chicago: Portland: New York City: Minneapolis: … and more on the way Source: Green Roofs For Healthy Cities City:Incentive:

Find out more from Green Roofs for Healthy Cities Green Roofs Tree of Knowledge: Combined Urban Sewer Overflows Communities with Vegetated Roof Incentives

Green Roofing & Public Policy Clean Air Federal Policy –Legislation: Clean Air Act ( ) –Enforcement: Environmental Protection Agency (EPA) State & Local Policy –Legislation: Varies, but tends to follow Clean Air Act –Enforcement: State environmental agencies participate in enforcing the Clean Air Act

Clean Air Act The Clean Air Act & CO 2 The Clean Air Act (1963) directed the EPA to regulate air pollutants, but the EPA did not consider CO 2 and other greenhouse gasses to be pollutants In a 2008 decision (1), the U.S. Supreme Court ruled that CO 2 and other greenhouse gasses were covered by the Clean Air Act and should be regulated This decision may lead to a variety of new regulations, including peak energy consumption limits, carbon caps, carbon trading, etc. (1) Commonwealth of Massachusetts et al. v. Environmental Protection Agency

Clean Air Act Roofing & Clean Air Policy In general, clean air policy in roofing will involve energy regulations and incentives: –Roof Energy Efficiency Cool Roofing Highly-Insulated Roofing –Clean Rooftop Energy Photo-Voltaic Daylighting Wind