Reps. Baird and Schwartz Introduce Legislation to Promote Energy Efficient Buildings

Reps. Baird and Schwartz Introduce Legislation to Promote Energy Efficient Buildings

Today, Representatives Brian Baird and Allyson Schwartz (PA-13) introduced legislation, the "Buildings for the 21st Century Act," to encourage the construction of energy-efficient, or "green," commercial buildings.

"As we continue looking for new and innovative ways to conserve energy, this bill encourages the construction of energy-efficient commercial buildings," said Rep. Baird. "This legislation is an innovative approach towards reducing our country's dependence on foreign fuels, lowers pollution levels, and moreover, is good for the environment, and good for our economy."

The Buildings for the 21st Century Act provides targeted tax incentives to reduce power consumption in newly-constructed commercial buildings and retro-fitted existing commercial facilities. Commercial buildings taking advantage of these tax deductions must be designed or renovated to reduce the total annual energy and power costs of the interior lighting, heating, cooling, ventilation, and hot water systems by at least 50 percent compared to minimum building energy requirements. Building owners must demonstrate they have reached this 50 percent savings target by obtaining certification from a qualified expert, such as an engineer or properly licensed contractor.

The bill improves incentives originally outlined in the 2005 Energy Policy Act. The
Schwartz-Baird bill increases the tax deduction for fully compliant commercial buildings from $1.80 per square foot to $2.25 per square foot. It also increases the deduction for partially-compliant buildings from 60 cents to 75 cents per square foot. And, because regulations governing the original incentives were only recently released, the Buildings for the 21st Century Act also extends the tax deduction deadline from December 31, 2008 to December 31, 2013, giving commercial building owners enough time for planning, construction, and renovation.

Buildings currently account for 80 percent of all electric expenditures in the U.S., and commercial buildings alone consume 35 percent of our nation's electricity. The National Electrical Manufacturers Association (NEMA) estimates that if the retrofit lighting provisions of the Energy Policy Act alone were in effect for four years, they would save approximately 312 megawatts of electricity, or about the equivalent of a new power plant's output. In addition, the resulting carbon emissions would fall by about 10 million metric tons.

http://www.house.gov/list/press/wa03_baird/GreenBuildings.html