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Energy-Efficient Roofing and Building Star Legislation
July 27, 2010
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Legislative Update from Jared Blum, Executive Director of PIMA
July, 2010
While unemployment remains a problem throughout the nation, according to PIMA president Jared Blum, a targeted tax policy change will create 40,000 “green” jobs a year and strengthen the nation’s energy policy. The bipartisan bill, introduced by Congressmen Bill Pascrell (D-NJ), John Larson (D-CT), Wally Herger (R-CA), Dean Heller (R-NV), proposes an accelerated depreciation period for commercial roofs that meet certain standards for energy efficiency. While the IRS code currently requires commercial roofs to be depreciated over 39 years – as much as twice the life of an average commercial roof in some instances – H.R. 5396 (known formally as the Green Energy Efficient Roofs and Job Creation Act of 2010) would allow certain roofs an accelerated 20-year depreciation period.
In order for a roof to qualify, it would have to meet R-value requirements higher than state and local building codes require. The bill (http://www.govtrack.us/congress/bill.xpd?bill=h111-5396), if passed, will also require state building codes to update to ASHRAE 2010 standards. Many of these codes mandate an R-15 value for low-slope roofs at present; the new proposal includes a range of R-values depending on climate zone. The proposal is limited to energy-efficient upgrades of existing roofs, not new construction, and applies only to roofs upgraded in 2010 or 2011. Moreover, it would apply only to low-slope roofs with entirely above-deck insulation.
It is estimated that, over the course of a year, this legislation will create 40,000 new “green” jobs for manufacturers and contractors and will generate $1 billion of taxable revenue in the roofing industry. U.S. carbon emissions would be reduced by approximately 800 billion metric tons – equal to the emissions from over 150,000 cars. Finally, the reduction in U.S. energy consumption would save small businesses and consumers $86 million per year. Organizations that endorse the measure include the National Roofing Contractors Association, the United Union of Roofers, Waterproofers and Allied Workers and the Center for Environmental Innovation in Roofing.
In a related move, S. 3079 – the Building Star Energy Efficiency Act of 2010 – creates rebates for energy efficiency for commercial buildings (http://www.energyfuturecoalition.org/content/Building-STAR). A provision within the bill provides rebates for R-value increases in low-slope roof systems.
Over the next three to four months, Congress is expected to pass a bill that deals with energy-related issues. Individuals are encouraged to familiarize themselves with these bills (in particular, 5396) and to contact their elected representative to ensure that they’re involved.
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