Miami-Dade county has received a $198,000 rebate related to its work with Honeywell International Inc., to support energy and infrastructure improvements at PortMiami. The rebate was made possible through an energy savings performance contract that qualifies for federal tax incentives and provides guaranteed savings that allow the county to fund the project over a 16-year period.
In addition to the cash rebate, the Office of Resilience saw improvements in energy performance, resulting in a 2,695,085 kWh annual electric savings and a reduction in greenhouse gas emissions by 3,071,041 pounds per year. These improvements contributed to its resilience goal of reducing 2008 greenhouse gas emissions levels 80 percent by 2050.
This rebate relates to the federal 179D allocation, a tax benefit established through the 2005 Energy Policy Act. The Act created a tax deduction of up to $1.80 per square foot for qualifying building retrofits and new construction projects. Since government entities do not pay taxes, under the 179D Special Rule for Government-Owned Buildings, they may allocate the benefit to a tax-paying designer and receive savings in return for the allocation. In this case, Honeywell worked with the county to achieve this tax benefit through the implementation of an energy performance contract. The county has worked with Efficiency Energy LLC since 2012 in administering its 179D allocation process.
According to the U.S. Department of Energy, nearly one-third of the energy used in a typical public building in the U.S. goes to waste. These buildings can be made up to 80 percent more efficient with new and existing technologies. An energy efficient government not only allows public entities to often spend more on public services and less on utility bills, it also can reduce operations and maintenance costs. In addition, investing in improved energy performance can generate jobs and economic growth.
“Under my leadership, our county continues to focus on finding efficiencies and saving money, so I am very pleased by the initiative shown by the Office of Resilience, the Department of Regulatory and Economic Resources, Internal Services Department and our private-sector partners to help bring savings to our community,” says Miami-Dade County Mayor Carlos A. Gimenez.
“Miami-Dade County is a taking a leadership position in its efforts to aggressively conserve energy, water, mitigate the effects of climate change and reduce greenhouse gas emissions,” states Felicia McDade, director of the Honeywell Southeast Energy Services Team. “Honeywell is proud to work with the county in advancing its sustainability goals for resiliency and energy efficiency for the residents of Miami-Dade County.”