April 25, 2024

Save Energy, Save Money

By Jenna Prasad, Head of Sustainability, Ambient

 

New York, April 25th As tax season rolls around, many dread the complex paperwork and looming deadlines. However, there’s a silver lining for property owners and designers making energy efficiency upgrades. The federal government offers several tax incentives aimed at supporting decarbonization and combating climate change within the built environment.

 

The Inflation Reduction Act (IRA) of 2022

Dubbed the most significant climate action ever taken by Congress, the IRA allocates over $300 million towards clean energy and climate mitigation initiatives. This funding has introduced numerous tax credits accessible to both commercial and residential property owners nationwide.

 

Investment Tax Credit (ITC) for Energy Property

Available until the end of 2024, this tax credit benefits owners who implement energy property, like geothermal heat pumps. Geothermal projects exceeding 1 megawatt (MW) can secure a 6% tax credit, potentially increasing to 30% if they meet certain wage and apprenticeship criteria. Smaller projects under 1 MW automatically qualify for the 30% tax credit, with the possibility of reaching a 70% credit when all additional requirements are satisfied. From 2025, the ITC will transition to the Clean Electricity Investment Tax Credit.

 

Bonus Credits for Sustainable Practices

 

  1. Domestic Content: This bonus rewards projects incorporating over 40% domestically manufactured materials. Larger projects can earn a 2-10% credit, while smaller ones could receive up to 10%.
  2. Energy Communities: Projects developed in brownfield sites or areas impacted by high fossil fuel employment/unemployment can obtain up to a 10% additional credit.
  3. Low-Income Communities: Small-scale solar and wind initiatives in low-income areas are eligible for up to a 20% bonus credit.

 

Additional Incentives

 

  • Clean Electricity Investment Tax Credit (2025-2032): This replaces the previous ITC for properties investing in zero-emission energy production, with similar benefits and bonus opportunities.
  • Alternative Fuel Vehicle Refueling Property Credit (2023-2032): Applies to new installations of EV charging stations and other alternative fuel refueling equipment, with credits up to $100,000 per item.
  • Energy Efficient Homes Tax Credit (2023-2032): Contractors building new, qualified energy-efficient residences can receive up to $5,000 per property, depending on the certification standards met.
  • Energy Efficient Commercial Buildings Deduction: A permanent deduction that significantly benefits commercial property owners investing in energy-efficient installations, with enhanced benefits for projects from 2023 onward.

These incentives not only promote sustainable development but also provide financial relief for those investing in green technology. As we progress, additional federal tax incentives and state or utility rebates are expected to surface, further supporting energy-efficient upgrades.

March 22, 2024

Refrigerant Transition

By Jenna Prasad, Head of Sustainability, Ambient

New York, March 22nd As the construction industry moves towards sustainability, one of the significant changes underway is the transition to low Global Warming Potential (GWP) refrigerants in Heating, Ventilation, and Air Conditioning (HVAC) systems. This shift is driven by environmental concerns and regulatory mandates aiming to phase out high-GWP refrigerants like R-410A and R-134A. The spotlight is now on low-GWP alternatives such as R-454B, which promise a greener future for HVAC systems.


Legislative Background: A Global and National Response

 

The push towards low-GWP refrigerants is rooted in global and national legislative efforts:

  1. 2016 Kigali Amendment to the Montreal Protocol: This global agreement focuses on the phasedown of hydrofluorocarbons (HFCs), potent greenhouse gases often used as refrigerants. HFCs have been linked to significant contributions to global warming, measured by their Global Warming Potential (GWP).
  2. 2020 American Innovation and Manufacturing (AIM) Act: In the United States, this act mandates a phasedown of HFCs by 85% by 2036, aligning with the global initiative to reduce the environmental impact of refrigerants.
  3. 2023 EPA Technology Transitions Program Final Rule: This rule specifically targets the HVAC industry, restricting the use of high-GWP HFCs in air conditioning and heat pump products and equipment. Starting in 2025, the use of refrigerants with a GWP higher than 700 will be banned for certain HVAC systems.


Compliance Timeline for HVAC Systems

 

The transition to low-GWP refrigerants follows a structured timeline, focusing on different types of HVAC systems:

  • Jan 1, 2025: Residential and light commercial air conditioning and heat pump systems, as well as chillers, are affected. New systems using refrigerants with a GWP above 700 can be installed until Jan 1, 2026, as long as all components are manufactured before Jan 1, 2025.
  • Jan 1, 2026: Variable Refrigerant Flow (VRF) systems will need to comply with the new regulations.
  • Jan 1, 2027: Data centers are expected to transition to low-GWP refrigerants.


New vs. Existing HVAC Systems

 

It’s important to note that the Technology Transitions Program applies only to new HVAC systems. Existing systems can continue to use high-GWP refrigerants, although the supply of these refrigerants is rapidly decreasing, and costs are expected to rise due to restricted manufacturing capabilities. However, new high-GWP components needed for repairing existing systems can still be manufactured, sold, and distributed.

Implications for Clients and the Industry

 

As we navigate this transition, it’s crucial for clients and industry professionals to stay informed and proactive:

  • Equipment Purchases: If you’re purchasing equipment for a new system, ensure that you’re aware of the refrigerant being used. Transitioning to low-GWP products will help ensure compliance with new regulations.
  • Timely Orders: For manufacturers still offering R-410A equipment, orders should be placed promptly. Equipment containing R-410A must be manufactured before the end of 2024.

The shift to low-GWP refrigerants represents a significant step towards a more sustainable and environmentally friendly HVAC industry. By staying informed and making strategic decisions, we can collectively contribute to a greener future.

February 21, 2024

Revolutionizing Real Estate: The Compelling Case for Investing in EV Charging Infrastructure

By: Jenna Prasad, Sustainability Engineer, Ambient

 

The shift towards electric vehicles (EVs) is rapidly transforming the transportation landscape, and as a key stakeholder in the build environment, it’s crucial for property owners, consulting engineers, and contractors to recognize and capitalize on the benefits of investing in EV charging infrastructure. Here, we’ll delve into the urgency behind this transition and outline some reasons for property owners and developers to embrace the EV revolution.

 

Transportation Emissions and the Need for Change

 

Transportation, notably cars and trucks, has long been a major contributor to greenhouse gas (GHG) emissions. According to the Inventory of U.S. Greenhouse Gas Emissions, transportation accounted for 29% of total GHG emissions in the U.S. in 2021. Notably, light-duty vehicles were responsible for 58% of this, with medium- and heavy-duty trucks contributing 23% to total transportation emissions. To combat climate change effectively, there’s a critical need for widespread vehicle electrification.

 

 

Why Invest in EV Charging For Your Building?

 

 

Environmental and Health Benefits

  • Contributing to community CO2 reduction efforts.
  • EVs decrease air pollution, fostering cleaner air quality
  • Enhancing overall energy efficiency.

 

Public Commitment to Sustainability

  • Attracting environmentally conscious employees, clients, and tenants.

 

Property Value Enhancement

  • The addition of EV chargers can increase property value.

 

Potential Additional Revenue Stream

  • Charging fees can offset the initial investment in charger technology.

 

Encouraging EV Adoption

  • Employees/tenants are more likely to switch to electric vehicles.
  • Reducing Scope 3 CO2 emissions related to employee commuting.

 

Investment in Sustainable Development

  • Seizing opportunities in the exponentially growing EV market.

 

Leveraging Incentives

  • Utilizing utility rebates, tax credits, and additional funding programs.

 

How Companies are Supporting the Transition

 

Ambient, a national HVAC solutions provider with companies such as Gil-Bar and Mechanical Technologies, recognizes the pivotal role that EV charging plays in nationwide efforts to embrace sustainability. In partnership with ABB E-mobility, Ambient and its companies offer comprehensive EV charging solutions for multifamily residential and commercial projects.

 

So Where Does This Leave Us?

 

Investing in EV charging infrastructure is not just a responsible environmental choice but a strategic business decision for building owners, consulting engineers, and contractors. Beyond aligning with sustainability goals, it enhances property values, attracts eco-conscious stakeholders, and positions businesses at the forefront of a growing market. With the support of companies like Ambient and ABB, supporting EV charging for tenants, employees, and guests becomes a tangible reality for the build environment in New York and beyond.

 

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January 8, 2024

Construction and Climate Policy, Local to National

By: Jenna Prasad, Sustainability Engineer, Ambient Enterprises

 

As we enter 2024, all eyes turn to policymakers as they intensify commitments to climate action. Municipal, state, and national governments across the U.S. continue to push for decarbonization and energy efficiency in the built industry through increasingly strict regulations. Building owners, contractors, and engineers face a profoundly shifting landscape dictated by the implementation and enforcement of these rulings and therefore must remain proactive as compliance deadlines approach. As businesses prepare to meet these policies head-on, an understanding of current and upcoming climate regulations is crucial to navigating this new era.

In New York City, Local Law 97 stands out as one of the most prominent—and stringent—emissions reduction laws in the country. A subset of the 2019 Climate Mobilization Act, Local Law 97 requires buildings larger than 25,000 square feet to meet new greenhouse gas emissions, aiming to reduce NYC building emissions 40% by 2030 and 80% by 2050. These emissions limits and energy efficiency standards begin in 2024, with even stricter carbon caps slated for implementation starting in 2030. Building owners are responding by implementing energy conservation measures, transitioning to lower-carbon fuels, and undergoing HVAC systems electrification and retrofits.

Alongside NYC’s efforts to reduce building emissions is a push to phase out fossil fuels. Local Law 154, passed in late 2021, sets carbon limits for new constructions and gut renovations, essentially prohibiting the use of fossil fuels. These requirements are enforced starting in 2024 with low-rise buildings and in 2027 for buildings with seven stories or more.

NYC is not the only city making significant strides toward greener buildings. Boston’s Building Energy Reporting and Disclosure Ordinance (BERDO) 2.0, adopted in 2021, established comparable emissions limits, which are enforced beginning in 2025 for buildings larger than 35,000 square feet and in 2030 for buildings exceeding 20,000 square feet. Similarly, Washington D.C. also established a climate goal to reduce greenhouse gas emissions by 50% in 2032, which is upheld by the Building Energy Performance Standard (BEPS) Program introduced in the Clean Energy DC Omnibus Act.

In addition to state laws, environmental efforts are underway on a national scale. One target of national policy is refrigerant, which can contribute heavily to a building’s greenhouse gas emissions through leakages. Introduced in 2020, the American Innovation and Manufacturing (AIM) Act intends to address the use of hydrofluorocarbons (HFCs), which are greenhouse gases with high global warming potentials (GWPs; used to measure the environmental impact of a greenhouse gas in comparison to carbon dioxide) that are commonly used as refrigerants. The EPA (Environmental Protection Agency), authorized by the AIM Act, issued a final rule on the phasedown of these gases, restricting the sale, distribution, import, and export of high-GWP HFCs, including R-410A, one of the most popular refrigerants internationally. Starting in 2025, refrigerant GWP for residential and commercial air conditioners, heat pumps, and chillers must be less than 700. Similar restrictions are in place for variable refrigerant flow (VRF) systems and data centers, with enforcement beginning in 2026 and 2027 respectively. Many manufacturers are already transitioning to more eco-friendly refrigerants, such as R-744 and R-454B, for use in their products.

The most anticipated upcoming regulation facing corporate America is from the Securities and Exchange Commission (SEC). Initially proposed in March 2022, the SEC is in the process of developing a national climate disclosure rule, which will require publicly traded companies to report on annual greenhouse gas emissions and climate-related financial risks. Such a rule is intended both to encourage companies to take emissions-reduction action and to prevent “greenwashing,” or making false claims about sustainability and positive environmental impact. Although it was initially anticipated for October 2023, the final ruling has been delayed; a release in early 2024 is now projected, in which case the requirements will likely go into effect in 2026.

One state, however, is not waiting around for an impending SEC ruling; in September 2023, California legislation passed two climate disclosure bills enforcing emissions and risk reporting for both public and private companies. The first is the Climate Corporate Data Accountability Act, which requires companies doing business in California with revenues of one billion dollars or more to disclose their annual greenhouse gas emissions beginning in 2026. The second law is the Climate-Related Risk Disclosure Act, which requires companies doing business in California with revenues exceeding $500 million dollars to report biennially on climate-related financial risks starting in 2026. Both bills were signed into law in October 2023 by California Governor Gavin Newsom, and although they are still subject to legal challenges, these disclosure regulations indicate a nationwide shift toward actionable climate change mitigation.

Innovation and modernization in the built environment are actively being propelled by legislative developments at all levels of government. These regulations, both current and future, emphasize a shared responsibility to integrate environmental stewardship into the engineering and construction landscapes. If climate action is taken through solutions like electrification, refrigerant management, and carbon footprint reduction, the industry will align itself with a path of resiliency and sustainability in pursuit of a greener future.

 

 

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Ambient Enterprises

December 29, 2023

Ambient Releases 2023 Emissions Update

New York, Dec. 29 Ambient Enterprises, the parent of HVAC sales representatives such as Gil-Bar, APA HVAC Technologies, Mechanical Technologies, H.C. Nye, and recently DMG HVAC and Johnson Barrow, shared it’s 2023 emissions report Friday through its site.

 

“Understanding our environmental impact and driving sustainable change has been a major focus for Ambient in recent years. The 2023 Emissions Update reflects on Ambient’s continued commitment to environmental stewardship and emissions reduction efforts in conjunction with the company’s nationwide growth. The goal of this publicly-available report is to embrace a culture of accountability and transparency within the HVAC community and to encourage others to join Ambient in the collective push toward a greener future.” says Jenna Prasad, Sustainability Engineer at Ambient.

Ambient is a collective of HVAC design and implementation experts, offering solutions for spaces in the healthcare, commercial, and residential sectors.

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Ambient Enterprises