Greener Gardens

The Outdoor Power Equipment Institute (OPEI) has been working hard over the last few months on Capitol Hill to craft and ultimately help pass an important piece of legislation that has the potential to positively impact commercial dealers. Called the Greener Gardens Act, Senators Leahy and Sanders of Vermont have introduced legislation to provide consumers with a 25 percent, or up to $1,000 tax credit towards the purchase of environmentally friendly lawn, garden, and forestry power equipment. The legislation is described as essentially “stimulative” in its first two years, applying to product currently available; in other words, it’s a variation of the auto “cash for clunkers” program without turning in the “clunker.”

We are particularly proud of the fact that OPEI worked with the senators to ensure that the term “environmentally friendly” cast a wide net and included a range of products, including cleaner gasoline driven equipment and diesel product. The senators also see this bill as a key step towards promoting energy independence, incentivizing the development of new, cleaner technologies and bringing to market the most advanced gasoline and diesel products currently available, as well as promoting the environmental benefits of lawns and landscapes.

The OPEI Board of Directors voted unanimously to support the legislation, and we urge manufacturers and dealers to contact their state’s U.S. Senators and Members of Congress and/or those state delegations where dealers have operations. Specifically, ask that they support the Vermont delegation’s Greener Gardens legislation. The legislation has the support of health organizations like the American Lung Association and environmental groups like the National Audubon Society. Contact information for your representatives can be found at www.senate.gov and www.house.gov or you can contact me.

DETAILS ON THE GREENER GARDENS ACT

What qualifies for the tax credit?

• Phase 3 compliant gasoline equipment. The new EPA Phase 3 Regulations include the following provisions requires a 35 percent reduction in exhaust emissions and a 45 percent reduction in total evaporative emissions beginning in 2009 and fully implemented by 2015.
• Gasoline or diesel hybrid equipment.
• Alternative powered products. Internal combustion engines with qualifying alternative fuels would include liquefied petroleum gas (propane), natural gas and liquid fuels produced from natural gas, blends of 85% or more of alcohol with gasoline, methanol, ethanol or other alcohols, coal-derived liquid fuels, hydrogen, biodiesel, fuels derived from biological materials and P-series.
• Compliant diesel B100 product.
• Battery and electric product.
• All products including handheld.
• All consumer and commercial purchasers.

What’s the time horizon for the credit?

• A two-year tax credit of 25% of purchase price up to $1000 for all “pull-forward” phase 3 compliant gasoline engine product.
• A two-year tax credit of 25% of purchase price up to $1000 for gasoline or diesel hybrid electric product.
• A five-year tax credit of 25% of purchase price up to $1000 for solar, electric or battery product.
• A five-year tax credit of 25% of purchase price up to $1000 for product powered by alternative power sources (alternative power sources are those determined by the DOE Secretary in coordination with the Office of Energy Efficiency and Renewable Energy and includes but not limited to: propane, ethanol, methanol and other alcohols, E-85, biodiesel (B100), P-Series, CNG, hydrogen, coal-derived fuels, and fuels derived from biological materials.

THE TIME TO ACT IS NOW. The bill has been introduced in both houses, but there have been no hearings to date. So, now is the time for manufacturers and dealers to express their support; tell your representatives why this is important to spur economic recovery in our industry, incentivize consumers to purchase new equipment and broaden the outdoor power equipment market.

The author, Kris Kiser, is executive vice president of the Outdoor Power Equipment Institute.