American Recovery & Reinvestment Act (ARRA)

An excerpt from President Obama’s remarks to the Department of Energy on February 5, 2009:

Obama wants to create jobs, cut the federal energy bill and save money.“We'll also lead a revolution in energy efficiency, modernizing more than 75 percent of federal buildings and improving the efficiency of more than 2 million American homes. This will not only create jobs, it will cut the federal energy bill by a third and save taxpayers $2 billion each year and save Americans billions of dollars more on their utility bills.”

Introduction

The phrase “innovation in clean energy” usually brings to mind solar panels, hybrid vehicles and recycling. Materials used in the construction of buildings generally aren’t given much thought outside of the occasional broken window. So it stands to reason that as a country striving toward new ways of being energy efficient, we naturally overlooked something as ubiquitous as building materials in favor of technologies like automobiles and recycling.

Consumers are surprised to learn that when you take into account both building operations and materials manufacturing, the ‘built environment’ is responsible for 52% of greenhouse gas emissions worldwide. Five percent of all U.S. energy is lost through inefficient windows alone. This is a problem that we can - and must - solve today.

New super-insulating windows now on the market, like SeriousWindows, can reduce heating and cooling use up to 50%.New super-insulating windows now on the market, like SeriousWindows, can reduce heating and cooling use up to 50%. If all buildings were to use SeriousWindows technology, CO2 emissions would be reduced by over 200 million metric tons annually. This could have the largest and fastest impact on climate change of any technology in any sector.

"Enhancing windows efficiency is a major step forward in achieving net-zero homes," said DOE's Marc LaFrance, manager for Building Envelope and Windows R&D programs. "Windows in the United States are costing consumers approximately $35 billion per year in energy. The next generation of windows could reduce this by more than half."

Previously, window replacement or retrofits have often not been highly cost-effective due to cost and performance of the windows. The recent emergence of highly-insulating, low-cost window technology make replacements and retrofits cost-effective in many applications, including in public buildings and in low income weatherization.

The technology is here and available. The impact that efficient windows can have on energy conservation - and money savings - is clear. In fact, according to a report by McKinsey and Co., renovating for energy efficiency in existing buildings can generate $160 billion in savings by 2030.

The recently passed American Recovery & Reinvestment Act (ARRA) has the potential to accelerate what has previously been a glacial pace of change in the building business, reduce greenhouse gas emissions, and make green building standards like LEED and Energy Star more meaningful. Used appropriately, ARRA funds can also transform your region’s buildings and infrastructure and create green jobs while slowing the progress of climate change.

Much of this construction work in the next few years will come from projects contained in the ARRA. Public infrastructure projects under the ARRA include renovations and new construction of government buildings, schools, low-income housing, and other public buildings. According to the Alliance to Save Energy, “The unprecedented infusion of more than $20 billion into energy efficiency programs will create jobs and cut carbon emissions while helping to lift the faltering U.S. economy.”

The Serious Opportunity

recovery.orgThis document can help you address the large opportunity for saving energy and taxpayer dollars that has been created by the ARRA for your community. For The ARRA to be successful, we need to interpret what has actually been passed and what funds are available.

Visit here for an overview of the ARRA’s programs and initiatives provided by the Office of Energy Efficiency and Renewable Energy.

Energy efficiency funding in the ARRA includes:

Weatherization Assistance Program (WAP): $5 billion (up from $0.2 in 2008) is provided for weatherization of low income houses. The DOE estimates more than 15 million low income households still require weatherization.

  • The DOE currently provides grants to states for distribution to low-income homes to purchase and install materials and implement other weatherization measures to improve energy efficiency under WAP, 42 U.S.C. §§ 6861 et seq. The ARRA expands the number of households eligible for assistance by increasing eligibility levels to households at or below 200 percent of the federal poverty level and increasing maximum assistance to $6,500.

  • Under the existing program, states must submit an annual application to the DOE requesting available funds and identifying the number of dwelling units to be weatherized, relevant climate conditions, and other factors. 42 U.S.C. §6864. A state also must provide reasonable assurances to the Department that it has: (1) established a broadly-representative policy advisory council with appropriate qualifications to channel funding for weatherization projects; (2) established priorities to govern the provision of weatherization assistance to low-income persons, and established methods to prioritize assistance to elderly and handicapped low income persons; and (3) has selected non-profits and other agencies to undertake weatherization activities in an open, public process. Although there is no maintenance of effort provision tied to fiscal year, states applying for weatherization funds are required to make certain additional assurances regarding the level of state and local funding to be provided. 42 U.S.C. § 6864 c).

Get more information from the U.S. Department of Energy on the 2009 Recovery Act and Weatherization Funding here.

Great News

Windows Work for
WeatherizationWhile windows have generally not played a major role in WAP, windows are the single largest source of energy loss in homes. Up to 50% of heating & cooling costs are lost through typical single and dual pane windows, yielding poor energy-saving performance and low (or no) cost-effectiveness. As a result, combined with associated high labor costs (e.g. installation), audit tools have previously not accounted for windows.

Until now!

The increase of per-household investment allowance, newly revised audit tools (eg. NEAT), and the advancement of energy efficient materials have made super-insulating windows available, for the first time, as a cost-effective energy efficient & energy saving solution available for weatherization programs today.

With windows now finally accounted for, Serious Materials announced a new super-insulating, affordable window line, SeriousWindows WAP Series™, specifically for Weatherization Assistance Program (WAP) agencies and states to be able to source into low-income housing projects as replacement windows. According to the NEAT (National Energy Audit Tool) model, SeriousWindows WAP Series can create up to twelve times more energy savings per household than other common weatherization measures.

For a lot more on our new WAP Series windows, click here.


Vice President Joe Biden visits Serious Materials' Chicago windows factory.

Vice President Joe Biden, pictured above with Serious Materials CEO Kevin Surace, visited our Serious Materials Chicago plant on April 27th. This window factory reopened thanks to increased demand for energy-saving building products as a result of American Recovery and Reinvestment Act investments in weatherization and energy programs and energy efficiency tax credits. Said the Vice President in remarks to the gathered Serious Materials staff and media:

"The single greatest immediate impact on the environment that we can have as a nation, and the world can have, is weatherization. That's the immediate biggest bang for the buck. It has the advantage of creating jobs, jobs right here in America; good jobs, union jobs, jobs people can raise a middle-class family on.

"This, in a nutshell, is what the Recovery and Reinvestment Act is about. And this is the story of Republic Windows and Serious Materials. This is the story of how a new economy predicated on innovation and efficiency is not only helping us today but is inspiring a better tomorrow."


Green Federal Buildings: $5.5 billion is provided for the General Services Administration (GSA) for federal building repair and construction projects. More than 80% ($4.5 billion) is set aside for transforming existing federal buildings into High-Performance Green Buildings through projects to improve energy efficiency. Funding has also been set aside for development of a federal green building standard.

State energy program (SEP): $3.1 billion is provided for state energy efficiency programs to design and carry out their own renewable energy and energy efficiency programs including a stronger building energy code.

  • The ARRA provides billions in additional funds for the DOE to distribute as grants to applicant states to assist in preparing and implementing comprehensive state energy conservation plans (State Energy Programs), pursuant to the Energy Policy and Conservation Act of 1975. 42 U.S.C. § 6321; 10 C.F.R §§ 420.1-.38.

  • The ARRA conditions grants to a state upon certification by the governor that (1) the state utility commission will implement policies that ensure the state-regulated electric and gas utilities have appropriate financial incentives to help their customers reduce energy use and (2) the state, or the applicable unit of local government, will implement energy codes for residential and commercial buildings that meet or exceed certain conservation and efficiency standards.
  • States also are required to prioritize funding to energy efficiency, and renewable energy projects, including energy efficient windows qualify.

Get more information from the U.S. Department of Energy on the ARRA SEP funding here.

Energy Efficiency Block Grants: $3.2 billion is provided to state and local governments for energy efficiency. This funding will allow state and local governments to aggressively implement energy efficiency measures. Eligible projects include: development of energy efficiency and conservation programs; residential and commercial energy audits; installation of onsite renewable energy at government facilities; and implementation of energy distribution technologies that significantly improve efficiency; and establishment of financial incentive programs for energy efficiency improvements.

Deadlines

  • The application due date for states is May 26, 2009 at 8:00:00 PM Eastern Time.

  • The application due date for cities, counties, and Indian tribes eligible for direct formula grants from the DOE is June 25, 2009 at 8:00:00 PM Eastern Time.

Get more information on applications for grants from the U.S. Department of Energy’s ARRA funding here.

Please note that there are pre-application requirements.

In order to apply for EECBG formula funds, a three-step registration process is required of all applicants. Please allow 21 days to complete the registration process.

Step 1: Request a DUNS Number here.

Step 2: Register with the Central Contractor Registry (CCR) here.

Step 3: E-Business Point of Contact must register in FedConnect here.

Energy Tax Credit for Consumers: provides for a new tax credit up to 30% of the cost of the eligible products including windows and doors up to a limit of $1,500. Qualifying windows must have a U-Factor of 0.30 or lower and a Solar Heat Gain Coefficient (SHGC) of 0.30 or lower. SeriousWindows and SeriousGlass qualify under these requirements.

Tax Deductions for Commercial Buildings: provides for a tax deduction of up to $1.80 per square foot for new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems “placed in service” from January 1, 2006 through December 31, 2013.

How to “Get Serious”

Serious Materials makes advanced green building products that improve employee comfort, save money, save energy, and aggressively address climate change. The company develops disruptive technologies that deliver customer benefits without requiring changes in customer behavior – speeding widespread adoption. Serious Materials was commended by President Obama for the work it is doing to create thousands of American green jobs.

SeriousWindows, SeriousGlass, and super-insulating ThermaRock drywall support energy efficiency mandates for public infrastructure projects as outlined under The American Recovery & Reinvestment Act (ARRA) including Weatherization (WAP), Green Federal Buildings, State Energy Program (SEP), Energy Efficiency Block Grants, Energy Tax Credit for Consumers, and Tax Deductions for Commercial Buildings.

SeriousWindows Save More Energy Than Any Other Window. Period.

SeriouWindows WAP Windows with R-4.8 ValuesSeriousWindows WAP Series are super-insulating vinyl replacement windows de­signed specifically for low-income housing homes and projects administered by Weatherization Assistance Program (WAP) and States. Offering super-insulating full frame R-value of up to R-4.8, the WAP Series can reduce heating and cooling costs by up to 40%. All SeriousWindows WAP Series windows exceed Energy Star 2010 revisions (R-3.3).

For a lot more on our new WAP Series windows, click here.

SeriousWindows | SeriousGlass

SeriousWindows is groundbreaking, combining the best of proven techniques with a new patent-pending process which provides substantial improvement over any prior window.SeriousWindows address the number one energy culprit in building operations. The new technology is groundbreaking, combining the best of proven techniques with a new patent-pending process which provides substantial improvement over any prior window. 39% of all energy and CO2 is tied to building operations, of which 38% is used for heating and cooling. Super-insulating, R-5 to R-11 windows – and higher – can reduce heating and cooling use up to 50%, resulting in a 5% savings in national energy use. This is equivalent to 100 million people driving a Prius instead of their older car. Serious Materials’ R-11 full-frame window is four times the Energy Star performance of high-end dual-pane low-E commercial windows in use today, with a compelling ROI for the building owner and payback in just a few years.

If all buildings were to use SeriousWindows technology, CO2 emissions would be reduced by over 200 million metric tons annually. This could have the largest and fastest impact on climate change of any technology in any sector. SeriousWindows already exceed the proposed Energy Star standards for the year 2013, while traditional manufacturers continue to resist change.

Our line of QuietGlass™ also delivers the most noise reducing windows and sound control glass packages, up to STC 43.

SeriousWindows and SeriousGlass help to:

  • Eliminate cold air chill in winter and excess solar radiation in the summer with N-S-E-W tuning

  • Reduce expensive HVAC equipment costs

  • Reduce liability and outside noise with higher sound transmission class (STC)

  • Reduce condensation for maximum visibility in high-humidity environments

  • Create 99.5% UV protection for both people and assets like furniture, artwork and rugs

  • Gain valuable LEED credits (potential of up to 19 points)

Serious Materials Helps You Meet Industry Standards that Matter

Serious Materials can help your projects qualify for the ARRA funding by achieving the right certifications.

Click here to see how all Serious Materials stack up under LEED and Energy Star standards.

Made in the USA, Creating Green Collar Jobs

Serious Materials was recognized by President Obama as he addressed more than 100 clean energy entrepreneurs and leading researchers at the "Investing in the Clean Energy Economy" event in Washington, DC.

President Obama commented, “Serious Materials, just reopened a manufacturing plant outside of Pittsburgh. Last year, that factory was shuttered and more than one hundred jobs were lost. The town was devastated. Today, that factory is whirring back to life, and Serious Materials is rehiring the folks who lost their jobs. And these workers will now have a new mission: producing some of the most energy-efficient windows in the world.”

Serious Materials manufactures in five locations across the United States:

  • Sunnyvale, California;

  • Newark, California;

  • Boulder, Colorado;

  • Vandergrift, Pennsylvania;

  • and Chicago, Illinois.

The Vandergrift and Chicago plants provide excellent examples of putting skilled manufacturing workers back on the job.

The former Kensington Windows plant in Vandergrift, PA shut its doors in October 2008, putting over 150 people out of work after its parent company filed for bankruptcy. Kensington Windows had manufactured high quality windows using the latest technology and high quality components. The average tenure of the work force was 18 years, with 9 percent having more than 30 years with the company. It was clear that the company could revise the production to focus on highly insulating windows, and quickly introduce Serious Material’s cost and performance enhancing technology.


Governor Rendell of Pennsylvania, CEO of Serious Materials Kevin
Surace, and rehired workers cut a green ribbon to celebrate the
green reopening of Vandergrift’s windows factory.

Governor Rendell of Pennsylvania, CEO of Serious Materials Kevin Surace, and rehired workers cut a green ribbon to celebrate the green reopening of Vandergrift’s windows factory.


Serious Materials acquired the assets at the end of January 2009, through the bankruptcy process. The company rehired 30 of the former workers, and target getting back to a workforce of 150 by year’s end.

Republic Windows garnered national attention in December 2008 when it suddenly closed its doors, declared bankruptcy, and left over 300 people unemployed just before the holidays. As in Vandergrift, Serious Materials looked at the plant and its people, and saw an opportunity. The company worked closely and productively with the union, United Electrical Workers, through the bankruptcy process. At the end of February 2009, Serious Materials acquired the assets of the former Republic Windows and Doors in Chicago, Illinois through the bankruptcy process.


At the end of February 2009, Serious Materials acquired the assets of the former Republic Windows and Doors in Chicago, Illinois through the bankruptcy process.Fredrico Martinez, who joined other workers in a prayer vigil, said he had worked at the Republic Windows factory for nine years.

One of the main tenets of the American Recovery and Reinvestment Act (ARRA) is to spur job creation as part of a sustainable U.S. economy. Serious Materials’ recently-acquired plants in Vandergrift, PA and Chicago, IL provide excellent examples of putting skilled manufacturing workers back on the job, while improving energy security, environmental performance, and the economy.

Photo Credit: Beth Rooney for The New York Times.


Vice President Biden commented on Serious Materials plans for the Chicago factory:

“The reopening of this factory and the rehiring of these workers provide an excellent example of how the money in the Recovery Act is targeted to spur job creation quickly... These workers will not only earn a paycheck again; they will go back to work creating products that will benefit America's long-term economic future."

Effective implementation of ARRA is essential

It will take some time, but Serious Materials intends to return to and exceed the former production and employment levels of the Chicago and Vandergrift plants. We are also expanding production and jobs at our other facilities in California and Colorado.

Effective implementation of American Recovery and Reinvestment Act energy efficiency measures is essential to our plans. It will allow us to expand operations and hire up far more rapidly than would be possible without it. This will bring more jobs not just at the factory, but also in installation, and for our upstream suppliers.

It’s possible that we have an once-in-a-lifetime opportunity to change our built environment thanks to the American Reinvestment and Recovery Act. The President has given us an opportunity to deploy these new technologies that might earlier have been unavailable, or in which people might have under other circumstances been unwilling to invest. It will take some effort to make sure the funds allocated to make our building industry and our built environment more energy efficient are spent wisely, but if they are, we look forward to great advances in sustainability and climate change.

More Information on Serious Materials

Serious Materials manufactures green sustainable building products that save energy and save money while enhancing the comfort, health, and beauty of homes and commercial buildings. Not only are our products extremely energy efficient, they often require less energy to manufacture. The company was voted #1 at Cleantech Forum, Product of the Year 2008, won the first Aspen Institute award for innovation in Energy Conservation, and was awarded Green Product of the Year 2008 by Popular Science. It has also been recognized by The White House, TIME/CNN, Fortune, Business Week, and NY Times as one of the top green technology companies.

To learn more about Serious Materials, call us now at 800.797.8159 or use our simple and secure contact form and discover how you too can take advantage of this serious opportunity.

©2006-2009 Serious Materials Inc. 1250 Elko Drive Sunnyvale, CA 94089