<html><head><base href="x-msg://15/"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; ">Nick,<div><br></div><div>You are correct! Prior to 2008, the energy savings targets are 16 2/3% across the board for envelope, HVAC, or lighting modeled individually. IRS 2008-40 mandated the target to be 20/20/10 (lighting/HVAC/envelope) for all buildings placed into service in 2008 or later. It also gave the option to use 20/20/10 or 16 2/3% for 2006 and 2007 so long as you don't mix and match. For instance, you can't use 10% for the envelope and then use 16 2/3% for the HVAC for a building placed into service is 2006 or 2007.</div><div><br></div><div>There are no other hidden changes other than these. Envelope is either 10% or 16 2/3% depending on the year placed in service and the standard that you choose to use.</div><div><br><div>
<span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; font-size: medium; "><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; font-size: medium; "><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; font-size: medium; "><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><div><div>--------</div><div>Joshua D. Howes, PE</div><div>Concord Energy Strategies</div><div>(502) 384-9078</div><div><a href="http://www.concordenergystrategies.com">www.concordenergystrategies.com</a></div></div><div><br></div></div></span></div></span><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; "><span style="font-family: 'Bodoni MT Black', serif; ">IRS Circular 230 Disclosure<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; "><b><span style="font-size: 9pt; ">To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.</span></b></div></span>
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<br><div><div>On Oct 4, 2011, at 10:16 AM, Nick Caton wrote:</div><br class="Apple-interchange-newline"><blockquote type="cite"><span class="Apple-style-span" style="border-collapse: separate; font-family: Helvetica; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; font-size: medium; "><div lang="EN-US" link="blue" vlink="purple" style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><div class="WordSection1" style="page: WordSection1; "><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">Hi Josh!<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">I took this as a sign that I need to freshen up on the recent legislation/clarifications… I found the 20% reference, but I’m finding something a bit more nuanced than a blanket 20%:<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">Ref: IRS Notice 2008-40 (<a href="http://www.irs.gov/irb/2008-14_IRB/ar12.html" style="color: blue; text-decoration: underline; ">http://www.irs.gov/irb/2008-14_IRB/ar12.html</a>), Section 7:<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">.01<span class="Apple-converted-space"> </span><em>Energy Savings Percentages</em>. A taxpayer may apply section 2.05 of Notice 2006-52 by substituting “10” for “16<sup>2</sup>/<sub>3</sub>” in section 2.05(1) of such notice. If a taxpayer makes this substitution, the taxpayer must apply sections 2.03 and 2.04 of Notice 2006-52 by substituting “20” for “16<sup>2</sup>/<sub>3</sub>” in sections 2.03(1)(a) and 2.04(1) of such notice. If § 179D is extended beyond December 31, 2008<span class="Apple-converted-space"> </span><i><span style="color: red; ">[insert: it was, until December 31, 2013, by the same legislation introducing the TARP]</span></i>, the Internal Revenue Service and the Treasury Department expect, in the absence of other changes to § 179D, that the substitute percentages set forth in this section will be the only percentages used in determining whether property placed in service after December 31, 2008, is partially qualifying property.<span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">Having gone back and revised my copy of 2006-52 per the above, my interpretation is that improvements put into service after 2008 need to demonstrate a 20% improvement for lighting and/or HVAC, but<span class="Apple-converted-space"> </span><u>only 10%</u><span class="Apple-converted-space"> </span>for envelopes.<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">Partially qualifying installations put into service after December 31, 2008 have to submit for deductions using the 20/20/10 benchmarks. Anything prior has the option of submitting under either set.<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">That said, is there more recent legislation or an IRS “clarification” (haha) that mandates 20% for envelopes as well?<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">~Nick<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><span><image001.jpg></span></span><b><span style="font-size: 11pt; font-family: 'Stylus BT', sans-serif; color: rgb(45, 77, 94); "><o:p></o:p></span></b></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 11pt; font-family: 'Stylus BT', sans-serif; color: rgb(45, 77, 94); "><o:p> </o:p></span></b></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-family: 'Stylus BT', sans-serif; color: rgb(45, 77, 94); ">NICK CATON, P.E.</span></b><b><span style="font-family: 'Stylus BT', sans-serif; color: rgb(45, 77, 94); "><o:p></o:p></span></b></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 7.5pt; font-family: Calibri, sans-serif; color: rgb(204, 153, 0); ">SENIOR ENGINEER<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 7.5pt; font-family: Calibri, sans-serif; color: rgb(204, 153, 0); "><o:p> </o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">Smith & Boucher Engineers</span><span style="font-size: 7.5pt; color: rgb(204, 153, 0); "><o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">25501 west valley parkway, suite 200<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">olathe, ks 66061<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">direct 913.344.0036<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">fax 913.345.0617<o:p></o:p></span></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><a href="www.smithboucher.com" title="blocked::www.smithboucher.com" style="color: blue; text-decoration: underline; "><span style="font-size: 10pt; ">www.smithboucher.com</span></a></span><u><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: blue; "></span></u><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p></o:p></span></div></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><o:p> </o:p></span></div><div><div style="border-right-style: none; border-bottom-style: none; border-left-style: none; border-width: initial; border-color: initial; border-top-style: solid; border-top-color: rgb(181, 196, 223); border-top-width: 1pt; padding-top: 3pt; padding-right: 0in; padding-bottom: 0in; padding-left: 0in; "><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 10pt; font-family: Tahoma, sans-serif; ">From:</span></b><span style="font-size: 10pt; font-family: Tahoma, sans-serif; "><span class="Apple-converted-space"> </span><a href="mailto:bldg-sim-bounces@lists.onebuilding.org" style="color: blue; text-decoration: underline; ">bldg-sim-bounces@lists.onebuilding.org</a><span class="Apple-converted-space"> </span>[mailto:bldg-sim-bounces@lists.onebuilding.org]<span class="Apple-converted-space"> </span><b>On Behalf Of<span class="Apple-converted-space"> </span></b>Josh Howes<br><b>Sent:</b><span class="Apple-converted-space"> </span>Monday, October 03, 2011 3:47 PM<br><b>To:</b><span class="Apple-converted-space"> </span><a href="mailto:bldg-sim@lists.onebuilding.org" style="color: blue; text-decoration: underline; ">bldg-sim@lists.onebuilding.org</a>; R B<br><b>Subject:</b><span class="Apple-converted-space"> </span>Re: [Bldg-sim] EPACT - more questions<o:p></o:p></span></div></div></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">Rohini,<o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">We specialize in EPACT studies. The IRS legislation is very complicated and vague. However, to answer your questions:<o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">1) Nick is correct. If you cannot get to 50% with your model by combining all the improvements (HVAC, lighting, and envelope), then you must model them separately. Remember, your baseline is not the building prior to the improvements. Your baseline is an ASHRAE 90.1-2001 baseline.<o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">2) You are looking for 20% improvement on building improvements placed into service in 2008 or later. The 16 2/3% benchmark is only for years 2006 and 2007.<o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">3) Nick is again correct.<o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">We would be happy to work with you on future EPACT studies. Best of luck.<o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div></div><div><div><div><div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; color: black; ">--------<o:p></o:p></span></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; color: black; ">Joshua D. Howes, PE<o:p></o:p></span></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; color: black; ">Concord Energy Strategies<o:p></o:p></span></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; color: black; ">(502) 384-9078<o:p></o:p></span></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; color: black; "><a href="http://www.concordenergystrategies.com" style="color: blue; text-decoration: underline; ">www.concordenergystrategies.com</a><o:p></o:p></span></div></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; color: black; "><o:p> </o:p></span></div></div></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; color: black; ">IRS Circular 230 Disclosure</span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: black; "><o:p></o:p></span></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 9pt; font-family: Calibri, sans-serif; color: black; ">To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.</span></b><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: black; "><o:p></o:p></span></div></div></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><br><br><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; ">From:<span class="Apple-converted-space"> </span></span></b><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; ">"Nick Caton" <<a href="mailto:ncaton@smithboucher.com" style="color: blue; text-decoration: underline; ">ncaton@smithboucher.com</a>></span><o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; ">Subject: Re: [Bldg-sim] EPACT - more questions</span></b><o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; ">Date:<span class="Apple-converted-space"> </span></span></b><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; ">October 3, 2011 1:29:06 PM EDT</span><o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; ">To:<span class="Apple-converted-space"> </span></span></b><span style="font-size: 13.5pt; font-family: Helvetica, sans-serif; ">"R B" <<a href="mailto:slv3sat@gmail.com" style="color: blue; text-decoration: underline; ">slv3sat@gmail.com</a>>, <<a href="mailto:bldg-sim@lists.onebuilding.org" style="color: blue; text-decoration: underline; ">bldg-sim@lists.onebuilding.org</a>></span><o:p></o:p></div></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><br><br><br><o:p></o:p></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">Hi Rohini,</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "> </span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">I haven’t actually put together a final set of documentation for the modeling approaches, but having scoured the legislation & IRS clarification docs at one, here’s my current understanding:</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0.5in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; text-indent: -0.25in; "><span>1.<span style="font: normal normal normal 7pt/normal 'Times New Roman'; "> <span class="Apple-converted-space"> </span></span></span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">“</span>Running the proposed with both these systems as upgrades gives me ~40% cost savings.<span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">” <span class="Apple-converted-space"> </span></span><span style="font-size: 11pt; font-family: Wingdings; color: rgb(31, 73, 125); ">ß</span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><span class="Apple-converted-space"> </span>This means the whole building approach is out (<50%). You have to model the lighting/HVAC/envelope improvements independently (“partially qualifying”).</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0.5in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; text-indent: -0.25in; "><span>2.<span style="font: normal normal normal 7pt/normal 'Times New Roman'; "> <span class="Apple-converted-space"> </span></span></span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">For each independently modeled component (lighting/HVAC/envelope) that pushes savings past the 16-2/3% improvement mark, you get to claim $0.60/SF for the deduction. </span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0.5in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; text-indent: -0.25in; "><span>3.<span style="font: normal normal normal 7pt/normal 'Times New Roman'; "> <span class="Apple-converted-space"> </span></span></span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">The improved HVAC run will not benefit from any lighting/envelope improvements for these partially qualifying runs, and so on. </span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "> </span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">Not sure I recall a 20% improvement figure as part of the requirements, but I haven’t brushed up on the particulars in a good while.</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "> </span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); ">~Nick</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "> </span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><image001.jpg></span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 11pt; font-family: 'Stylus BT', sans-serif; color: rgb(45, 77, 94); "> </span></b><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-family: 'Stylus BT', sans-serif; color: rgb(45, 77, 94); ">NICK CATON, P.E.</span></b><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 7.5pt; font-family: Calibri, sans-serif; color: rgb(204, 153, 0); ">SENIOR ENGINEER</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 7.5pt; font-family: Calibri, sans-serif; color: rgb(204, 153, 0); "> </span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">Smith & Boucher Engineers</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">25501 west valley parkway, suite 200</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">olathe, ks 66061</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">direct 913.344.0036</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: rgb(45, 77, 94); ">fax 913.345.0617</span><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "><a href="x-msg://225/www.smithboucher.com" title="blocked::www.smithboucher.com" style="color: blue; text-decoration: underline; "><span style="font-size: 10pt; ">www.smithboucher.com</span></a></span><u><span style="font-size: 10pt; font-family: Calibri, sans-serif; color: blue; "></span></u><o:p></o:p></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125); "> </span><o:p></o:p></div><div style="border-right-style: none; border-bottom-style: none; border-left-style: none; border-width: initial; border-color: initial; border-top-style: solid; border-top-color: rgb(181, 196, 223); border-top-width: 1pt; padding-top: 3pt; padding-right: 0in; padding-bottom: 0in; padding-left: 0in; "><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><b><span style="font-size: 10pt; font-family: Tahoma, sans-serif; ">From:</span></b><span style="font-size: 10pt; font-family: Tahoma, sans-serif; "><span class="Apple-converted-space"> </span><a href="mailto:bldg-sim-bounces@lists.onebuilding.org" style="color: blue; text-decoration: underline; ">bldg-sim-bounces@lists.onebuilding.org</a><span class="Apple-converted-space"> </span>[mailto:bldg-sim-bounces@lists.onebuilding.org]<span class="Apple-converted-space"> </span><b>On Behalf Of<span class="Apple-converted-space"> </span></b>R B<br><b>Sent:</b><span class="Apple-converted-space"> </span>Monday, October 03, 2011 11:48 AM<br><b>To:</b><span class="Apple-converted-space"> </span><a href="mailto:bldg-sim@lists.onebuilding.org" style="color: blue; text-decoration: underline; ">bldg-sim@lists.onebuilding.org</a><br><b>Subject:</b><span class="Apple-converted-space"> </span>[Bldg-sim] EPACT - more questions</span><o:p></o:p></div></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "> <o:p></o:p></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">The building that I am working on will have upgrades to lighting and HVAC. Running the proposed with both these systems as upgrades gives me ~40% cost savings. This is more than the 40% that is needed (for lighting and HVAC individually 20%). My question is if this is partially qualifying (less than 50%), then should I run lighting and HVAC separately? and each should be 20% saving? In this case the benefit of lower lighting will not be available to HVAC.<o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "> <o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">Thanks<o:p></o:p></div></div><div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; ">-Rohini<o:p></o:p></div></div></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><br><br>_______________________________________________<br>Bldg-sim mailing list<br><a href="mailto:Bldg-sim@lists.onebuilding.org" style="color: blue; text-decoration: underline; ">Bldg-sim@lists.onebuilding.org</a><br><a href="http://lists.onebuilding.org/listinfo.cgi/bldg-sim-onebuilding.org" style="color: blue; text-decoration: underline; ">http://lists.onebuilding.org/listinfo.cgi/bldg-sim-onebuilding.org</a><o:p></o:p></div></div><div style="margin-top: 0in; margin-right: 0in; margin-left: 0in; margin-bottom: 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; "><o:p> </o:p></div></div></div></span></blockquote></div><br></div></body></html>