The International Energy Agency (IEA) has recently indicated that it expects solar power to generate between 20-25% of electricity production for the entire world by 2050.   What does this mean?    This is a potentially HUGE market.

Folks in Louisiana like to mock their state as being backwards and corrupt.    Without commenting on that, I can tell you that Louisiana is very forward-thinking when it comes to solar power and solar panel installations.   In fact, the state is leading the nation in tax credit offerings and other legal benefits to installing solar power generation equipment at your home or business.

This is not a secret to readers of the Louisiana Green Building Law Blog, as it’s been posted about frequently in the past.

It’s also no secret to companies in Louisiana already taking advantage of the tax credit structure, like South Coast Solar, who posted this recent post:   Louisiana Has Top Tax Credit for Solar Panels.

Solar energy is a great opportunity for businesses and consumers.   Learn more about the tax credits offered by the above-provided links.

Green building continues to gain momentum nationwide. But developments surrounding a landmark piece of green legislation continue to have major implications for communities across the country.

At issue is Washington D.C.’s Green Building Act, which passed in 2006. The law requires builders in the nation’s capital to meet new energy efficiency standards by 2012. But the act’s language has proved problematic with the surety industry, which is responsible for issuing the construction bonds that guarantee work and protect taxpayer investments.

To dig deeper into the issue, the Surety Bonds Education Center recently interviewed Chris Cheatham, a Washington, D.C., construction attorney and an expert in the green building issues facing the surety industry. His blog, Green Building Law Update, has become a hub for information and insight into the future of green building in the nation’s capital and beyond.

Chris has closely followed the Green Building Act and the subsequent uproar from the surety industry. You can listen to the full interview at the Surety Bonds Sit-down.

The U.S. Department of Energy has a “Solar America Cities” program, whereby it works in partnership with U.S. cities to accelerate the adoption of solar energy technologies for a cleaner, more secure energy future.  There are 25 major U.S. cities on the list, and New Orleans is one of them.

If you’re in or around the city, it’s hard not to notice that we’ve got a vibrant market for solar energy technologies.    Here are just a few companies offering solar products and installations (and doing well at it):

• South Coast Solar
• Gulf South Solar
• Louisiana Solar Works
• Joule Energies

Why so much hype about solar energy products?   Well, for two reasons really.

First, solar energy is cheaper than the energy you get from Entergy because you’re getting it from the sun.   Second, government tax rebates and credits make it super affordable and practical to invest in solar technology for your home or business.

The State Tax Credit

What’s great about the state tax credit is that Louisiana will actually write you a check if the credit results in an overpayment of your state income taxes.

Right now, the credit applies to residential and apartment projects, and provides a credit of 50% the cost of the system & its installation.   The available credit is maxed out at $12,500.00, but you can install multiple systems on the same building and claim an additional credit.

How To Apply for State Tax Credit

Applying is a synch.  You’ll need to fill out Louisiana Department of Revenue form R-1082, and file it.

You also need to provide the Department of Revenue with the following “proof of purchase:”

1. type of system applying for the tax credit;
2. output capacity of the system:
   1. Solar Electric System: total nameplate listed kW of all installed panels;
   2. Solar Thermal Systems: listed SRCC annual BTU or equivalent kWh output;
   3. Wind Electric Systems: total rated kW of all alternators and generators;
   4. Wind Mechanical Systems: shaft horsepower as rated by manufacturer, licensed contractor or licensed professional engineer.
3. physical address where the system is installed in the state
4. total cost of the system as applied towards the tax credit separated by:
   1. equipment costs;
   2. installation costs;
   3. taxes;
5. make, model and serial number of generators, alternators, turbines, photovoltaic panels, inverters, and solar thermal collectors applied for in the tax credit.
6. name and Louisiana contractor’s license number of installer.
7. copy of the modeled array output report using the PV Watts Solar System Performance Calculator developed by the National Renewable Energy Laboratory and available at the website www.nrel.gov/rredc/pvwatts. The analysis must be performed using the default PV Watts de-rate factor.
8. copy of a solar site shading analysis conducted on the installation system using a recognized industry site assessment tool such as a Solar Pathfinder or Solmetric demonstrating the suitability f the site for installation of a solar energy system.

It Matters Who Installs Your System

Not just anybody can install your renewable energy system.   The Notice of Intent Letter from the Louisiana Department of Revenue regarding these credits provides the following requirement about contractor qualifications:

All installations must be performed by a contractor duly licensed by and in good standing with the Louisiana Contractors Licensing Board with a classification of Solar Energy Equipment and a certificate of training in the design and installation of solar energy systems from an industry recognized training entity, or a Louisiana technical college, or the owner of the residence

You Can Get Federal Credits Too

In addition to the 50% Louisiana Tax Credit, you can also apply for the 30% federal tax credit for the same system.   The details for this is for another time and place, but for now, take a look at the Legal Guide I published on Avvo.com in March 2010 here:  How to Claim A Federal Tax Credit for Solar or Renewable Energy.

Green Legal Matters is a national symposium aimed to bring together the best and brightest legal minds to discuss opportunities presented by the green movement, and the legal challenges it presented for folks in the industry.   The conference producers promise a very full 2 days of keynotes, panels and presentations from subject matter experts.

In what is great news for the Louisiana green industry, the industry is hosting its first annual conference in New Orleans between April 26 – 28, 2010.

I’m happy to be among a number of great experts to speak at the conference, and among some attorneys who are good friends of ours from twitter and blogs such as Christopher Hill (who I’ll present with on green litigation), Shari Shapiro and Tim Hughes.

The conference hopes to pull in great attendance based upon its location (New Orleans = greatest city in the world), the time of year (sandwiched between the two weekends of New Orleans Jazz Festival) and a line-up of very significant speaks including:

• New Orleans Mayor Elect, Mitch Landrieu
• James Carville, political consultant
• Susan Dorn, General Counsel of US Green Building Council
• Roberta Lang, General Counsel, Whole Foods
• Steve Harmon, Sr. Director Legal Services, Cisco

If you’d like to learn more about the conference, or to register to attend, please visit www.greenlegalmatters.com.

At the end of 2009, the U.S. Environmental Protection Agency (EPA) published effluent limitations guidelines (EGLS) and new source performance standards (NSPS) to control storm water runoff and the discharge of pollutants from construction sites. The new regulations took effect on February 1, 2010, requiring all permits issued by the EPA to incorporate the new requirements.

New Maximum Numeric Turbidity Limitations

For the first time, the EPA has set numeric limits for the discharge of storm water from construction sites. The EPA has set a maximum daily average numeric limit of 280 NTU (a turbidity measurement) for covered sites.

In case you don’t know, Wikipedia defines Turbidity as:

Turbidity is the cloudiness or haziness of a fluid caused by individual particles (suspended solids) that are generally invisible to the naked eye, similar to smoke in air. The measurement of turbidity is a key test of water quality.

The turbidity limitations will effect construction sites on a phase-in schedule. Construction sites with 20 or more acres of earth disturbance must comply starting August 2, 2011, and those sites with 5 or more acres of earth disturbance must comply starting February 2, 2014.

Covered sites must monitor the storm water discharge for turbidity, report the results of the monitoring and use control technologies (which are not defined) to ensure that the maximum levels are not exceed.

Other Changes (Non-Numeric BMPs)

The EPA has identified other mandatory Best Management Practices (BMPs) relating to: (i) Erosion and Sediment Controls (40 CFR § 450.21(a)); (ii) Soil Stabilization (40 CFR § 450.21(b)); (iii) Dewatering (40 CFR § 451.21(c)); (iv) Pollution Prevention Measures (40 CFR § 450.21(d)); and (v) Prohibited Discharges (40 CFR §450.21(e)).

Additional Resources

• Environmental Protection Agency Web Release of Regulations
• Full Text of Regulations
• Article by Barnes & Thornburg, LLP
• Article by Vinson & Elkins, LLP

A draft of the International Green Construction Code (IGCC) is scheduled for release in March 2010.  Developed in partnership with the American Institute of Architects and ASTM International, and supported by the United States Green Building Council, the code is expected to perform as a “model code” for jurisdictions across the country looking to draft and enforce green construction codes in their areas.

There’s a key difference between the proposed “code” and rating systems such as the LEED Rating system.    Unlike rating systems like LEED, the IGCC is a regulatory framework.

A great article explaining the IGCC and its potential uses and challenges was written by Harvey Berman, a LEED AP lawyer in Ann Arbor, Michigan.   Read it here:   “ICC makes rapid progress on International Green Construction Code.”

It will be interesting to see which jurisdictions adopt the IGCC, and which go further to make it mandatory.

As many in the green building sector know, California has already adopted a “California Green Building Standards.”  While code compliance is currently voluntary, it becomes mandatory this year.   Other cities and states have introduced and passed legislation that will require commercial projects to meet certain sustainable performance benchmarks, although not always in the form of a code.

In Washington state, and the City of Seattle, new laws require commercial property owners to report its energy performance, and disclose it to future tenants and purchasers.   Seattle, Washington, Portland and the entire Pacific Northwest is likely to be among the early adaptors of the IGCC.

Louisiana certainly hasn’t remained dormant in the green building sector, and perhaps the state and its parishes will look closely at the IGCC when its released.

The U.S. Department of Transportation awarded TIGER Grants last week to cities across the country, funding projects that “foster job creation, show strong economic benefits, and promote communities that are safer, cleaner and more livable.”    New Orleans shared in the pie of funding, getting a $45 million grant to pay the full cost of a new streetcar line to run along Loyola Avenue, reaching from Canal Street to the Union Passenger Terminal.

Nola.com reports that RTA hopes to have the streetcar line up and running within 2 years.

In addition to the $45 million in federal funding, RTA is hoping to make a “French Quarter Loop” through local investment.

While much of the focus here has been on the development of retail establishments along the streetcar line, here are some benefits we see:

• $45 – $115 Million investment into building the new lines;
• Increasing alternative transportation options for residents and tourists (including transportation to the train station)
• Additional step for New Orleans towards more sustainable practices

Congratulations to RTA and the team working on the TIGER Grant.

Earlier this year, I attended a seminar promoted by the Louisiana Chapter of the USGBC with guest speaker John Moore from the New Orleans Office of Environmental Affairs.    Under the Nagin administration, this office has taken a bit of a beating, getting separeted and consolidated from other departments so often…they haven’t even had time to finish their website!

The election of Mitch Landrieu as Mayor of New Orleans shows promise for this department, and is good news for any New Orleanian interested in the green building industry.

Glassboth.org, a neat web organization that publishes candidates views on certain issues, had a survey filled out for Mitch during the election.   Here are his answers on Environmental and Sustainability issues.

Mitch supports:

• City-funded recycling program
• Expanding the role of the City’s Office of Environmental Affairs to include issues of sustainability
• Supporting municipal carbon footprint regulations to control local CO2 emissions
• Requiring all public buildings to meet LEED Standards
• Implementation of the City’s plan for sustainable redevelopment called GreenNola

All good news for Mr. Moore and the team working on GoGreenNola.com.   And for Louisiana companies who build green.

The New Orleans Times Picayune reported that a group of scientist have written to Gov. Bobby Jindal urging him to take greenhouse gases more seriously.  The group linked the state’s eroding coastline with greenhouse gases produced by the state’s industries, aruging that if something isn’t done soon, much of New Orleans will erode away.

This story underscores an often overlooked issue.

While we spend a great deal of time on this blog talking about what green initiatives are being taken by Louisiana (mostly in the green building sector), we forget how uncommon and unpopular green building and green initiatives actually are.

Louisiana has a smaller number of LEED APs and LEED projects than most any other state, and while our local governments are trying to structure green incentives, we’re behind many other cities and states.  In large part, green building isn’t widespread in these neck of the woods.

This call to Gov. Jindal, however, is another effort to get the green sector in Louisiana moving, and in theory, the moss will continue to accrue.

Just before Christmas, the Wall Street Journal published an article about how “Green Builders [are] Awaiting The Green.”

The article simply reminded us (and builders across the country) that the General Services Administration had until the end of 2009 to allocate $2 billion for green building construction projects.   And another $3.5 billion is waiting for distribution in 2010, as per the America Recovery and Reinvestment Act.

That’s the good news for green buildings.

The bad news?   The GSA is having trouble spending  the money.

The excuse is legitimate.  First, public projects generally move slower than private ones, and the slow movement on projects has resulted in most GSA funded projects being stuck in planning phases, leading to low-spending.   Second, bids are coming in lower than expected.

While this spells bad news for public contractors in 2009…it is a relief that 2009 is over (and good riddance).   The GSA has some extra cash burning a whole in its pocket, and more money to spend.   Hopefully, these public projects will get underway and more green building will ensue…and that it will happen in Louisiana.

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