Summer 2010

  

Built Green Resource Center

The Santa Barbara Contractors Association and Built Green Santa Barbara have completed the remodel on a 2400 square foot 1920’s cottage in the California Historic State Park, El Presidio de Santa Barbara located at 914 A Santa Barbara St. The building is a zero fossil fuel usage facility that will create more energy than is used, and represents a historic opportunity to showcase energy independence, sustainable building practices, and the value of recycling our legacy structures.

 

The Resource Center offers information, programs and classes on green building processes and materials. Visit the Center and learn more about green building strategies, features and products. The interactive self guided tour highlights the green building features and materials that are present in each room. Each feature is identified as a strategy or action point from the Built Green checklist. The self guided tour will take approximately 1 hour and currently the Center is open by appointment only.

 

 

Residential New Construction Checklist

Built Green Santa Barbara has developed a new Checklist and Handbook for Single Family New Construction. On April 18th a group of community stakeholders participated in an all day workshop to identify the components of the new Checklist. For a copy of the new Checklist go to www.builtgreensb.org and download the pdf version.

 

 

Updated Remodels & Additions Checklist

Built Green Santa Barbara has updated the Checklist and Handbook for Remodels & Additions. On April 18th a group of community stakeholders participated in an all day workshop to identify the components of the updated Checklist. For a copy of the updated Checklist go to www.builtgreensb.org and download the pdf version.

 

 

emPowerSBC

On Friday June 11, 2010 the Board of Supervisors approved Santa Barbara County’s Fiscal Year 2010-11 Budget, which established the $5 million revolving fund needed to finance emPowerSBC projects.  Soon thereafter, the United States Department of Energy (DOE) announced that Santa Barbara County was one of 20 communities in the nation selected for a competitive grant under the American Recovery and Reinvestment Act to implement local energy efficiency and renewable energy programs. Selection targeted innovative approaches that will achieve significant long-term benefits for the community, and serve as a model for future energy efficiency efforts in other jurisdictions. The $2.4 million awarded to Santa Barbara County will fund administrative and staff costs related to managing emPowerSBC through three years, enabling the program pay for itself.

 

1. How does the program work?

Property owners apply for the program, describing the energy and/or water saving improvements they intend to make. If approved, the County and the property owner enter into an assessment contract, through which the County pays the up-front costs of the improvements. The County places an assessment lien on the property, and the property owner repays the County for the improvements as an assessment on his or her property tax bill over a 5, 10, or 20 year period. The property owner will have 180 days to get the work completed. After all improvements have been completed and final documentation is submitted to emPowerSBC staff, financing will be disbursed directly to the property owner or the property owner’s authorized agent.

2. Who can participate in emPowerSBC?

Any residential, commercial, or industrial property owner in Santa Barbara County may participate in the program provided the following requirements are satisfied:

• Property title is vested in the applicant/property owner without federal or state income tax liens, judgment liens or similar involuntary liens on the property, and the title is clear of easements or other agreements that conflict with the assessment.
• Property owner is current on property taxes, and there are no notices of default or other evidence of property-based debt delinquency for the lesser of the past three years or the property owner’s period of ownership.
• Mortgage and other debt on the property, when added to the proposed contractual assessment and overlapping special tax and assessment obligations, is not greater than the current value of the property.
• Property owner is not in bankruptcy and has not been in bankruptcy for the past five years, and the property is not an asset in a bankruptcy proceeding.
• Property owner is and has been current on all mortgage(s). For residential property, property owner has given notice to lenders on the property and has either received lender consent or the lender has not objected. For commercial property, lender has given consent to emPowerSBC financing.
• Proposed Contractual Assessment shall not exceed 10 percent of property’s value.

 

3. What projects are funded by the program?

Improvements must be permanently affixed to the property. Generally, eligible projects include energy efficiency upgrades, water efficiency upgrades/conservation measures, and distributed renewable energy generation. There are three general tracks – Energy Efficiency and Solar Improvements, Water Conservation Measures, and Custom Measures. For a more comprehensive list, see Appendix A in the Program Report.

4. When can I apply?

Applications will be available in the summer on this website as well as in the two storefronts. Please sign up to our subscription service through the Contact page to receive program updates, including when the application will be available online. Sign up for updates.

5. When does the County plan on first issuing the financing?

Financing is anticipated to be disbursed in early July contingent upon completion of legal review and securing seed funding by the County Board of Supervisors.

6. What types of buildings qualify for the program?

emPowerSBC is intended for improvements on residential, commercial, and industrial buildings. Non-residential properties may be subject to additional criteria.

7. Where do I obtain a building permit?

You must obtain any needed permits from your local authority. All improvements, including those normally exempt from permit requirements, will require documentation from the local jurisdiction (city or unincorporated area). Each jurisdiction sets its own permit fees. Final inspection by a building inspector will ensure that the improvements were completed.

8. Can I apply for replacement of parts for existing improvements that have already been completed?

Repairs and/or new construction do not qualify for emPowerSBC financing except to the extent that the construction is required for the specific approved Improvement. Repairs to existing infrastructure, such as water and sewer laterals, are considered repairs, and are not eligible.

9. How much financing is available to me? What are the terms?

The minimum advance from emPowerSBC is $2,500. The maximum for residential properties is generally $75,000 per property. Contractual assessments greater than $40,000 must be approved by the Program Administrator and may require additional documentation. Contractual assessments equal to or greater than $100,000 must be approved by the County Board of Supervisors.

10. What is the interest rate being charged to participants?

emPowerSBC anticipates offering competitive interest rates that is responsive to market conditions and supports program sustainability, while being competitively priced compared to options available through banking or other financial institutions. The Program Administrator will set the interest rate for a contractual assessment at the time the County and a property owner enter into an Assessment Contract. The interest rate will be a fixed rate.

11. Is there an early payment penalty?

Contractual assessments may be prepaid in full or in part at any time, subject to a prepayment penalty. The prepayment penalty will be identified in the Assessment Contract, and is not expected to exceed 5 percent of the outstanding principal amount.

12. What happens if I sell my property before the assessment is paid off?

If the property is sold or transferred, the assessment will be passed to subsequent owners of your property. Because emPowerSBC financing is an assessment against the property and not a personal lien, the assessment will stay with the property until it is paid off.

13.How do rebates and federal tax credits affect my financing?

The value of expected rebates, but not the value of tax credits (unless requested by the property owner), will be deducted from emPowerSBC financing. For example, if the total cost of a solar project is $40,000 and the owner is entitle to a rebate of $10,000, emPowerSBC financing will be limited to $30,000.

14. What contractors can the property owner choose?

The installation of Improvements can be completed by a licensed contractor of the property owner’s choice, so long as the contractor is in good standing with applicable State regulating authorities. Eligible costs do not include labor costs for property owners that elect to do the work themselves. Contractors who have participated in emPowerSBC’s workshops are considered “trained contractors”.

15. How long does it take to receive payment once my project is finished?

Checks will be mailed to the property owner at the beginning of each month, provided that final documentation has been filed with the emPowerSBC program five business days before the end of the month for processing.

16. When does the County place the assessment lien on my property?

The lien is placed after the assessment contract is signed and executed by the property owner and the County.

For more information on the emPowerSBC program please visit www.empowersbc.org.

 

 

Federal Tax Credits for Energy Efficiency

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are: The tax credits that were previously effective for 2009, have been extended to 2010 as well. The tax credit has been raised from 10% to 30%. The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost. The maximum credit has been raised from $500 to $1500 for the two years (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.  The $200 cap on windows has been removed, but the requirements for windows has been increased significantly. Not all ENERGY STAR qualified windows will qualify.

 

Home builders are eligible for a $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements. This credit also applies to contractors of manufactured homes conforming to Federal Manufactured Home Construction and Safety Standards.

 

There is also a $1,000 tax credit to the producer of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by EPA under the ENERGY STAR program.

 

Please note that, with the exception of the tax credit for an ENERGY STAR qualified manufactured home, these tax credits are not directly linked to ENERGY STAR. Therefore, a builder of an ENERGY STAR qualified home may be eligible for a tax credit but it is not guaranteed.

 

These tax credits apply to new homes located in the United States whose construction is substantially completed after August 8, 2005 and that are acquired from the eligible contractor for use as a residence from January 1, 2006 through December 31, 2009.

 

Eligible contractors need to fill out IRS Form 8908 to get the tax credit. The IRS has provided the following guidance regarding the tax credits for constructing energy efficient new homes available under the Energy Policy Act of 2005, www.energystar.gov.

 

Tax Deductions for Commercial Buildings:

A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems “placed in service” from January 1, 2006 through December 31, 2013.

 

Installation costs ARE COVERED for: HVAC (Heating, Ventilation and Air Conditioning) systems, Biomass Stoves, Water Heaters (including solar), Solar Panels, Geothermal Heat Pumps, Wind Energy Systems, Fuel Cells.

 

The tax credit for HVAC, biomass stoves, and non-solar water heaters is 30% of the total cost (product + installation) up to $1,500. The law specifies installation costs include: “expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.”

 

The tax credit for solar water heaters, solar panels, geothermal heat pumps, wind energy systems, and fuel cells is 30% of the total cost (product + installation), with no upper limit. The law specifies installation costs include: “labor costs properly allocable to the onsite preparation, assembly, or original installation of the property and for piping or wiring to interconnect such property to the home.”

 

Installation costs are NOT covered by the tax credit for: Windows, Doors, Insulation, Roofs. The tax credit for windows, doors, insulation and roofs is for 30% of the cost of materials, up to $1,500. Visit www.energystar.gov for more info.

 

 

Top 10 Products for Affordable Green Retrofits

 

Environmental Building News has released a helpful list of cost-effective energy-saving products, including products for homes, businesses and larger facilities. Check out their top 10 suggested measures:

 

1. Fluid-Applied Roofing: Applied over an existing roof to extend roof life, increase reflectivity, and reduce cooling costs.

2. Solar-Control Window Films: These window treatments can filter out half the heat of sunlight while allowing most of the visible light through, to help reduce solar heat gain in warm weather.

3. Entryway Track-Off Systems: Remove dust and dirt from shoes to improve indoor air quality.

4. Low-Flow Showerheads: While the federal maximum standard for showerheads is 2.5 gallons per minute (gpm), some older showerheads use as much as 8 gmp! You can dramatically cut water heating costs with low-flow showerheads of 1.6 gmp or less.

5. Dual-Flush Flushometer Valves: Toilet flushing is the largest single use of water in most buildings. High-efficiency toilets are especially important right now because of the state-wide drought.

6. Duct Sealants: Leaky ducts can waste huge amounts of energy and damage air quality.

 7. Condensing Boilers: If you are considering replacing your boiler, a high-efficiency boiler can help you save big-time on fuel costs.

8. Lighting and Plug Load Occupancy Sensors: Lighting represents 22% of electricity consumed in commercial office space. Sensors and other lighting measures can help slash these costs.

9. Energy Dashboards: Meters that display building energy use can help users find and zap energy drains, while encouraging energy-saving behavior.

10. LED Exit Signs: An effective use of LEDs and a good way to be efficient.

 

For more information visit Environmental Building News Magazine online at www.greenbuilding.com.