Solid federal tax policy must promote energy-efficiency incentives

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This opinion piece by Evergreen CEO Richard Burbank and Energy Circle CEO Peter Troast appeared in the Portland Press Herald on December 15.

At the moment, the national political dialogue is focused on the looming “fiscal cliff,” tax reform and economic policy.

Here in Maine, most people are more concerned about the impending winter season, filling up heating fuel tanks and making sure they’ll be able to make it through another one of our notoriously brutal winters.

Strangely enough, these two seemingly distant issues are actually closely related.

Heating oil is one of the most expensive home heating options, and in Maine we’re reliant on heating oil to a near-dangerous degree. While “pain at the pump” has become a cliche in discussions of oil prices nationwide, most Maine families feel the impact of oil price spikes just as painfully when the oil truck arrives as when they fill up their car’s gas tank.

And that’s just those of us who can afford heating oil at all: Some 65,000 Mainers rely on the Low Income Home Energy Assistance Program to keep their tanks full. For folks lucky enough to have alternatives to oil — like wood, natural gas and propane — heat is still a precious and expensive commodity.

So what does this have to do with the fiscal cliff and tax reform? Well, energy policy has always been closely tied to the tax code. Tax credits have been the most powerful means of incentivizing energy-efficiency upgrades.

This week, the Senate Finance Committee has taken up the subject of tax reform and energy policy, and as her last term in the Senate comes to a close, Maine Sen. Olympia Snowe continues to be at the center of this policy discussion.

Over the years, Snowe has been Congress’ champion for energy-efficiency tax credit reform. Specifically, she’s led the effort to shift the credit from a cost-based approach tied to specific measures — like the installation of new windows, roofs and doors — to one based on performance.

While the old tax credit, which provided as much as $1,500 back to a taxpayer, was well-intentioned, there was, however, no guarantee that new windows, for example, would produce actual energy savings. (It may come as a surprise to many people that new windows are often not the most cost-effective way to lower a home’s energy use.)

In the reform legislation that Snowe, a Republican, has introduced, the tax credit would be available only for homeowners who accomplish real, measurable energy reductions. This seemingly subtle shift in language is actually very significant.

Energy savings projections are made by a certified energy auditor, and they’re reliable. This ensures that the credit — and let’s remember that reducing taxes comes at a cost to the U.S. Treasury — gets used only in situations where the energy-use reduction is real and measurable.

Still, it is a fair question to ask about the impact of these credits on our economy and the well-being of taxpayers. Does the benefit justify the cost?

Energy efficiency is far and away the most beneficial of all approaches to reducing our dependence on foreign, polluting and high-cost energy sources.

• When a home becomes more energy efficient — say, through an upgrade to insulation and tightening the building’s envelope — that improvement produces savings forever.

• In addition to saving on energy, that home is likely to be more comfortable and healthy, and to have greater value at the time of sale.

• And, perhaps best of all given the lingering economic malaise our country faces, energy-efficiency work is virtually 100 percent American-made.

Compared to solar panels, which may be made in China, the work of energy efficiency is local and labor-intensive, providing well-paying jobs for American workers. Even the materials, like insulation, are almost all made in the United States.

In our view, that is good tax policy. It is a direct investment in local businesses (which pay taxes); it increases the economic well-being of local families and communities (helping other local businesses stay strong); it diverts money from oil companies and overseas dictators, and it increases American energy independence.

As the “fiscal cliff” looms, Mainers ready themselves for another long winter and Snowe prepares to leave the halls of the Senate, we’d like to applaud her dedication to balancing fiscal responsibility with a commitment to the people of Maine, far too many of whom will struggle to keep warm this winter. She’s been a true leader on energy efficiency, and we’re hopeful that Sen.-elect Angus King will take up the energy- efficiency mantle.

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Darlyann M

Bath

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Duane B.

East Boothbay

Evergreen did a fantastic job insulating our 1930's home. The onsite team was professional, clean, and really just a joy to interact with throughout the process. A blower test at the end showed a significant decrease in air leakage. I highly recommend Evergreen.

Kristen H.

South Portland

A thorough inspection of our (older) house and its energy needs. Competent and personable work crew.

Jacob Watson

Evergreen removed and replaced the insulation in my attic. They did a great job!, Crew was excellent, and the whole thing went smoothly, and the attic was NOT easy to get into or work in, so kudos to some hard work done well!

Joel A.

Portland

We absolutely loved our experience with Evergreen. The team was incredibly kind, professional and great to work with. We're very impressed with the quality of work of the Evergreen team and how easy they made everything! Our house had barely any insulation ahead of this project and the results are amazing. Insulating the attic, walls and basement with Evergreen allowed us to tear a 50-year-old furnace, ductwork and oil tank out of the basement and now heat the home with new heat pumps. Evergreen also added 100 sq ft of clean, new storage space to the attic!

Nick S.

South Portland

I never leave reviews, but had a great experience with Evergreen and wanted to spread the word! In short, we worked with them to insulate our roof this winter and have noticed surprising immediate results. The constant ice dams I have wrestled with are completely gone, and the home is noticeably more comfortable. It's a little too early to tell if our oil bill is going to reduce, but I imagine we will see an impact there as well.

Joel W.

Portland

We are thrilled with the job Evergreen did to transform our 213 year old home into a warm, draft-free, cozy space. The entire team led by Bruce was prompt, courteous, knowledgeable, and hard working. If Evergreen could transform our home in this way, we are sure they would make a comparable difference in YOUR home!

Jonathan M.

Bridgton

Led by Brian Robinson, the Evergreen Home Performance team just completed an insulation refit at my home. It was truly a great experience from start to finish, a period of time that was a fraction of the time that I originally anticipated due to the team's unbelievable work habits and professional knowledge of their tasks. As impressive were the communication skills and friendliness of each and every member of the team.

Anne W.

Rockport

The crew members from Evergreen Home Performance each made sure to greet us every day, while maintaining their distance in this time of the pandemic. Their work took a total of nine days, spread over three weeks. Even though they were working in multiple rooms of our house, as well as the basement and attic, they were unobtrusive and always cleaned up after themselves every day. The on-sight manager kept us informed of their daily schedule so we'd know which parts of the house they'd be working on.

Bob & Sue

Whitefield

The Evergreen team was amazing from initial assessment and planning to the crew that came to complete the work. Our basement encapsulation is the best money we've spent on our house by far. The work was thorough and high quality. And what a wonderful group of people to work with. I highly recommend Evergreen!

Martha Bracy

Evergreen completed the work at my home thoroughly and professionally. An inspector from Efficiency Maine came to inspect afterwards and described it as "state of the art" and "outstanding". The crew was very pleasant and considerate during the project. Their cleanup each day was perfect. Communications with the office were easy and reliable. I am very satisfied.

Catherine H.

South Portland

The Evergreen crew from initial inception to installation were professional, on time, and left our place spotless. The end result was exceptional.

John Brown

My experience with Evergreen was excellent. From their thorough and thoughtful initial consultation to their detailed post-work visit, the team was professional, knowledgeable, and responsive. Their workmanship was top notch. Our home is now much warmer and more efficient. I highly recommend their services!

Douglas R.

Edgecomb

Evergreen has insulated two homes that we've owned now and both times we experienced exceptional service and craftsmanship. Our rep, Justin, went above and beyond answering questions and the installation team was attentive to every detail, including pulling out old poorly installed insulation and redoing a bathroom fan that wasn't up to current code. They also left the place spotless every day! Our home is already so much warmer this fall and we are looking forward to using less oil this winter.

Eva G.

Falmouth

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