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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LEED projects are hotter than ever, especially with the amount of public works projects being funded by the Stimulus package. As more and more LEED projects get underway, more and more mistakes occur. Unfortunately, mistakes all too often lead to disputes and litigation.

I Don’t Get It? LEED What?

Here is the readers digest explanation of LEED projects.

A property owner or public entity wants to construct its project to be environmentally friendly. In doing so, it can seek a certification from one of many organizations – one of which is the U.S. Green Building Council, who certifies a project as a LEED project (Gold, Silver, Platinum, etc. – depending on how green it is).

Seeking certification carries certain benefits (i.e. PR, tax credits), and in some circumstances certifications are required.

Certification is achieved by meeting two types of goals.

On the one hand, the project meets the goal of saving energy in the construction process. This is done by purchasing materials manufactured locally (to prevent the environmental price of long-range delivery), recycling materials, creating a job site that meets debris and water run-off requirements, etc.

On the other hand, the project meets the goal of saving energy while in use post-construction. This is done by using energy efficient appliances and lighting, planting trees and reducing the “heat island effect,” enhancing the quality of life of those who will spend time in the building, etc.

The LEED certification is achieved by collecting points. For each sustainable goal met by the project, a point is awarded. A project must accumulate a number of points for certification, with the level of certification increasing with the collection of additional points.

Those administering LEED projects spend a great deal of time planning the construction project to ensure that the proper number of points are accumulated…and sometimes, it’s a close-call.

How One Contractor Can Hurt A Project’s Chance At Getting LEED Credits

After the planning phase, work on the project begins, and the property owner or architect will depend upon each supplier and subcontractor to performing its work or delivering its materials to qualify for LEED credit. Work performed or supplies delivered incorrectly can easily result in the loss of a LEED point.

Let’s take the example of concrete.

The LEED system requires concrete used in a parking lot or a rooftop to be a certain color to achieve LEED credit (LEED credit 7.1 requires concrete to meet certain color requirements to reduce the “heat island effect” for example).

Let’s say that the concrete subcontractor is a bit asleep at the wheel, and pours the wrong concrete. The concrete solidifies, and the owner/architect doesn’t notice for a few days (if not later!) that the concrete is incorrect.

That LEED point is lost.

The LEED Point is Lost….but Now What?

This is a very concerning question for the construction industry, and many legal experts are at a loss in predicting just how this will play out in the courts. The problem is more complex than it seems at first glance.

Let’s assume that a subcontractor or supplier actually was required to perform in a way that would qualify for LEED credit, and that it failed to do so for reasons that are 100% its fault.

The next question is tough: What are the damages? In answering this question, let’s look at two scenarios:

Scenario 1: The LEED Point is lost, but the LEED certification is still achieved.

This is entirely possible. While the construction planning often cuts LEED certification points close, there is usually at least some cushion between the points a project should get, and the points it is required to get. So, in theory, a subcontractor or supplier can completely mess up, the LEED point can be lost and the project may still get its certification.

If this happens, did the owner/architect sustain any damages? The answer is….possibly.

In some instances, the idea behind a LEED point is not just to get a certification…the owner may also be interested in energy savings. Let’s take our concrete example again – if the correct concrete was poured, this could theoretically cool off the project’s premises. This may result in lower energy bills during hotter months.

While the failure to gain the point may not have cost the owner certification, it may cost the owner thousands of dollars in energy savings over the coming years.

Other types of examples, however, may yield more complex results. There may not be any calculable damages for accidentally failing to buy locally manufactured materials, for example. If its the same materials – just manufactured somewhere else – there may not be any damages beyond the loss of a LEED point.

Scenario 2: The LEED point makes a difference

What if the LEED point costs the project’s LEED certification? What damage is sustained?

Calculating these damages may be more realistic in some circumstances versus others. If the property owner sought certification because it was required, or because of a desired tax break….the damages can at least be quantified. If, however, the owner was simply doing it to feel good, or for good PR, there will be much debate about just what – if any – monetary damages were sustained by the LEED failure.

Concluding

In the end, one issue that owners must remember is that they will have the burden at trial in proving their damages, and likely being required to prove it by a preponderance of evidence. Calculating the cost of losing a LEED point or the loss of theoretical energy savings can be quite tough. With that in mind, owners may want to consider liquidated damages provisions for these types of a defaults….and those signing contracts with owners or GCs may want to be weary of the same.

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You’ve heard all the praise about hybrid vehicles over the past 12-24 months…but did you hear the news from CAT this Christmas?

Yesterday, CAT delivered its first “Hybrid” bulldozer.   The dozer is a hybrid diesel-electric vehicle, that reportedly increases fuel efficiency by 25%.   More than that, CAT reports that the D7E should be more product, require less maintenance, and be all-around better for a company’s bottom line.

The savings in fuel and maintenance and increased productivity is offset by the machine’s price, which is approximately 20% more than the non-hybrid line.  CAT, however, promises that the machine will pay for itself in 2 – 2.5 years.

Check out the D7E website, where you can read more about the product, view its specs, watch videos and more.

Investing so much into construction machinery like a bulldozer is definity not something we run across everyday.   These machines take such a beating, and they are so inefficient as a matter of rule…that it seems counter-intuitivie to have an “efficient” bulldozer.   CAT, though, sees potential benefit in this offering, and perhaps it is something for your company to review.

If you are an equipment lessor, imagine the savings you can have if your maintenance costs were decreased?  How much more could you charge to clients with the promise of fuel savings?

If you’re a contractor with your own dozers, it’s a no-brainier if the efficiencies and productivity match CAT’s testing.   While a bit pricy at first, you’ll reap the rewards quicky.

And you’re saving the world, too.