Legislation and Energy Policy: Federal and State Incentives and Mandates.

Legislation and Energy Policy: Federal and State Incentives and Mandates

NJ-PA Sustainability Symposium Rutgers-CamdenMarch 31, 2011

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

Financial Incentives 179D Tax Re-Design Loan Guarantees for Building Retrofits “Scoring” Jobs Creation

Challenge to Building Owners Grants to State and Local Governments


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


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



www.rer.org

NJ Master PlanWind and solar and quick update

State Legislation

NJEDA ProgramsClean Tech/Energy HUB; BEIP; BRAG; ERG; Green Growth Fund; Edison Innovation Fund

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EDA - Who We AreState 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

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EDA Resources

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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.

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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.

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Clean Energy Solutions Capital InvestmentGrant/Loan

• 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.

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.

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Clean Energy Solutions ARRA Combined Heat and Power (CHP) Program

• 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.

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.

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• 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.

oBPU 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.

oBusinesses 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.oThe value of credits approved by the EDA may be up to $100 million.

Offshore Wind Economic Development Act

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New Green ProgramsExpected 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).

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Business Employment Incentive Program (BEIP)

Annual incentive grants to businesses moving to or expanding in New Jersey. Eligible companies must meet minimum job creation requirements and prove financial viability to qualify for cash grants.

Business Retention and Relocation Assistance Grant (BRRAG)

Provides grants of corporate business tax credits to companies that are relocating operations within New Jersey and retaining jobs.

Expansion/Relocation Incentives

Redevelopment AssistanceEconomic Redevelopment and Growth (ERG) Grant

Incentive grants to developers, businesses, and owners to address redevelopment project financing gaps. The program utilizes up to 75% of the incremental increase in certain state and local revenue sources attributed to the project to provide gap financing of up to 20% of the total project cost, paid out over a period of up to 20 years.

Urban Transit Hub Tax Credit Program

Qualified businesses located in Urban Transit Hubs may qualify for tax credits equal to 100% of the qualified capital investment that may be applied against corporation business tax, insurance premiums tax or gross income tax liability.

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•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

Additional Sources of Financing, Capital & Assistance

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Michael A. WileySr. Venture Officer – Technology & Life Sciences Division

New Jersey Economic Development [email protected]

Business Action Center: (866) 534-7789

www.njeda.com

www.NewJerseyBusiness.gov

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

Legislation and Energy Policy: Federal and State Incentives and Mandates.

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