SHARC International Systems Inc (SHRC:CSE)

The Tide is coming in for WET Adoption

In recent years we have seen a series of policy changes and legislative updates being introduced to reduce the operational carbon footprints of buildings across the United States. Below we highlight the specific initiatives that are being mandated, for which SHARC technology can assist in achieving

Are you new to the SHARC story? Read our introductory post here

---

Inflation Reduction Act (IRA) 

Signed into legislation in 2022 the Inflation Reduction Act “IRA” is set to incent clean energy production through a combination of investment and tax credits.  One of the most far reaching bills to date is set to combat emissions through tax credits for households to offset energy costs, investments in clean energy production and tax credits aimed at reducing carbon emissions.  The IRA has expanded the eligibility to claim the “full” existing energy income tax credit described in Section 48 of the Internal Revenue Code of 1986, as amended (Code), to certain projects that previously only qualified for a reduced ITC or did not qualify at all, including:

• Combined heat and power system property;

• Equipment that uses the ground or groundwater as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure (Thermal Energy Property) and;

• A newly added category of “energy storage technology”

Importantly under the thermal energy storage property definition both SHARC and Piranha WET systems qualify.

Federal Building Performance Standards

Announced in late 2022 and continuing into 2023, the Federal Buildings Performance Standards initiative established rigorous guidelines for existing federal buildings. These standards are designed to enhance energy efficiency and curb emissions through the integration of innovative technologies and the retrofitting of outdated systems.

“Federal agencies will set ambitious, data-driven 2030 goals and annual targets for energy and water reductions”

https://www.sustainability.gov/federalsustainabilityplan/buildings.html

---

Electrification of Federal Buildings

This policy specifically targets the reduction of greenhouse gas emissions from federal buildings by transitioning their energy systems away from fossil fuels to electrical power generation. The focus is on integrating renewable energy sources wherever possible to ensure that the electricity used is as green as possible. This shift is aimed at achieving a significant reduction in operational emissions by 2025.

“Buildings are a major source of greenhouse gas emissions in the U.S., and fossil fuels used in federal buildings account for over 25% of all federal emissions.”

https://www.energy.gov/articles/biden-harris-administration-announces-steps-electrify-and-cut-emissions-federal-buildings

---

Seattle’s Building Emissions Performance Standard (BEPS)

Implemented by the city of Seattle, this new standard mandates that existing commercial and multifamily buildings larger than 20,000 sq ft must transition to clean energy sources. This mandate aims to reduce buildings' reliance on fossil fuels, consequently lowering their operational carbon emissions.

Seattle BEPS – Non-residential and Multifamily Buildings >20,000 SF

https://harell.seattle.gov/2023/06/08/mayor-harrell-introduces-new-building-emissions-performance-standard-beps-to-reduce-greenhouse-gas-emissions-27-from-existing-buildings/

---

Building Energy Codes and Standards

Although not a single event, there has been a continued effort to update and enforce more stringent building energy codes nationally. These updates typically include requirements for better insulation, more efficient HVAC systems, and other energy-saving technologies. The aim is to reduce the energy demand and emissions of buildings throughout their operational life.

“The Biden Administration is leading by example to cut energy use and reduce its carbon footprint by adopting the latest building standards that drive down operating costs and therefore save taxpayer dollars,” said U.S. Secretary of Energy Jennifer M. Granholm

https://www.energy.gov/articles/doe-releases-energy-saving-rules-federal-buildings-and-proposes-new-standards-consumer

---

These recent U.S. legislative decarbonization initiatives have placed a premium on innovative solutions to combat climate change and transition towards renewable energy sources. Through its advanced wastewater heat recovery systems, SHARC Energy can play a pivotal role in reducing carbon emissions. This synergy between legislative mandates and SHARC Energy's technology presents a compelling opportunity to accelerate decarbonization efforts, paving the way for more sustainable buildings.