With the help of several years of lobbying from the National Electrical Manufacturers Association (NEMA), Rosslyn, Va., the Senate last week passed a comprehensive energy bill. The bill now awaits President Bush’s signature. No date has been given for when he will sign the bill.
The Energy Policy Act of 2005 (H.R. 6), which was passed by the House on July 28 and the Senate just a day later, is a far-reaching energy bill that contains many NEMA-backed electricity provisions. The bill contains provisions that promote energy efficiency and conservation, energy production and supply, improved energy transmission and distribution, energy tax incentives, and new technologies that promise greater efficiency and environmental protection.
NEMA’s lobbying efforts helped gain inclusion of an energy-efficient commercial buildings measure that provides a tax deduction of up to $1.80 per square foot for new or renovated buildings that exceed the ASHRAE 90.1-2001 building standard by 50 percent, with deductions for lighting systems, HVAC systems and building envelopes. Individual systems by themselves may receive up to a 60 cents-per-square-foot deduction. The effective date of this provision is Dec. 31, 2005.
This is the first time federal legislation will offer building owners a tax deduction for energy-efficient commercial buildings, said Doug Troutman, counsel, NEMA’s government relations. “This is brand new,” said Troutman. “We’re thrilled that the House and Senate congressional leadership saw this as a breakthrough for energy efficiency.”
Other NEMA-backed components of the legislation include:
- New federally regulated energy- efficiency standards for electrical products including medium screw-based compact fluorescent lamps, low-voltage, dry-type distribution transformers, pedestrian cross walks and traffic signals, exit signs, ballasts for mercury-vapor lamps; and torchiere lighting fixtures. The lighting products covered in the Energy Bill must meet the Department of Energy’s Energy Star program requirements. The bill also includes:
- Increased goals for the energy efficiency of federal buildings, including requirements for government facilities to meet the ASHRAE 90.1-2004 standards, and requirements for federal buildings to meter energy usage with advanced metering or sub-metering systems.
- A requirement for federal government agencies to purchase NEMA Premium electric motors and Energy Star products.
- Mandatory and enforceable transmission reliability standards.
- A requirement for the Federal Energy Regulatory Commission to issue a rule providing incentive-based rates, which would encourage deployment of advanced transmission technologies, high-capacity conductor technologies, flexible AC transmission systems, and other products.
- Energy research and development provisions, including the Next Generation Lighting Initiative for solid-state lighting, and advanced building programs that take advantage of lighting controls, daylighting technology and occupancy sensors.
- Incentives for the use of solar and other renewable energy systems in local, state and federal buildings.
NEMA is also pleased with a reduction in the tax depreciation period for electric transmission assets from 20 to 15 years. This will spur enhanced investments in transmission and is one of the largest tax provisions in the bill. NEMA was a strong advocate of the tax depreciation provision, which NEMA President Malcolm O’Hagan, said, “will make a big contribution toward a more modern, more reliable electrical transmission system.”