Energy Conservation: New York/New Jersey
New York/New Jersey: Port Authority Secures $400,000 in Savings from Energy Efficiency Measures at One World Trade Center
The Port Authority of New York & New Jersey has realized nearly $400,000 in savings at One World Trade Center through a federal Energy Policy Act tax incentive that encourages the installation of energy efficient measures.
"The Port Authority continuously demonstrates its commitment to environmental sustainability by integrating green practices and design into its operations and construction," said Port Authority Executive Director Pat Foye. "We hope to become a pacesetter for the industry, identifying innovative ways to reduce the cost of high-performance buildings in collaboration with our government and industry partners."
The tax code provision, known as EPACT 179D, encourages energy efficiency and independence in the design and construction of public and private buildings. For public projects, it reduces the burden on taxpayers by lowering overall costs for installation of energy efficient equipment and systems, and over the lifetime of the systems.
The Port Authority has invested in energy efficiency across the agency through 179D, not only at One World Trade Center, but also at the Port Authority Bus Terminal and Stewart International Airport. To date, the program has saved $660,000 overall through direct payments or credits on active projects.
The Port Authority’s Office of Environmental and Energy Programs (OEEP), working with a tax consulting firm, is pursuing 179D benefits at other facilities, including Newark Liberty International and LaGuardia airports. The tax provision allows the Port Authority to provide its partners with an immediate tax deduction for the value of qualifying energy efficient systems.
Through such agreements, the tax-paying entity or "designer" of each energy savings project will share a percentage of any tax benefits it realizes with the Port Authority. The agency, in turn, will use the savings to lower overall projects costs.
"The result is a transparent method that serves the public interest and fosters construction of world-class, cost-effective infrastructure, while freeing up funds for reinvestment in sustainable construction," said OEEP Director Christine Weydig.
The Port Authority established Sustainable Design Guidelines to integrate sustainability into the design and construction of all its projects. These design guidelines, in addition to the Port Authority’s Climate Resilience Guidelines for both buildings and infrastructure, seek to reduce adverse environmental impacts, adapt to climate change and improve agency operations and assets.