Higher energy savings for commercial buildings received a major boost in October, when Congress passed the Emergency Economic Stabilization Act to help revive the nation’s troubled economy. One of the provisions of this stimulus package extended the deduction for improvements in energy efficiency to commercial buildings for five years, through December 31, 2013.

The amount deductible is up to $1.80 per square foot of building floor area for buildings achieving a 50 percent energy savings target, through energy cost reductions in heating, cooling, ventilation, hot water, and interior lighting systems. CEE members can leverage the tax deduction in their commercial programs by considering the additive financial impacts (beyond program support) of these provisions for certain customer building projects.

A large part of the credit for swift passage of this legislation goes to Congressional leadership, Energy Secretary Samuel W. Bodman, and the National Electrical Manufacturers Association (NEMA), a key partner to CEE.

As recently as September, NEMA President and CEO Evan R. Gaddis began the initiative by calling on Congress to pass the energy tax provisions of the bill. NEMA’s successful presentation to Congressional leadership included predictions of the tremendous energy savings as well as the return on investment that could be generated through upgrading outmoded, inefficient equipment.

Robert W. Colgan, Jr., Chair of the National Lighting Bureau (founded and sponsored by NEMA), noted that NEMA has been working with Energy Secretary Bodman in developing a multifaceted, national energy conservation effort. What came about was a new commitment to move forward. In Secretary Bodman’s words, “I challenged the National Electrical Manufacturers Association (NEMA) to commit to a national building energy efficiency campaign…[and] NEMA has responded with enthusiasm, resources, and dedication.” The full picture of the resulting collaboration, including the benefits to be gained, is described in greater detail on the NEMA Web site.

In terms of lighting alone, it is estimated that the owners of 2.8 million U.S. commercial, industrial, and institutional buildings could save up to $50 billion by switching from outmoded lighting systems to new products and systems designed specifically for the tasks, workers, and spaces involved. According to Secretary Bodman, “while cost-effective lighting technologies are available now to cut energy costs by up to 50 percent, only 25 percent of the buildings have been upgraded.” CEE members, who have long promoted more efficient commercial lighting systems and products, employ the CEE Commercial Lighting Initiative with its specification of high efficiency T8 systems and low wattage T8 lamps. CEE supports these programs by maintaining a list of high efficiency lamps and ballasts.

Many of the incentives in the legislative package give all stakeholders—including CEE members and industry partners—exactly the kind of long-term certainty that’s needed to spur business investment and planning for the next five years. That, in turn, should help give the economy a shot in the arm, to move us beyond the present difficulties.

Find more information on the Emergency Economic Stabilization Act (HR 1424) online.

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