CERTIFIED ENERGY MANAGER
QUESTIONS AND ANSWERS WITH
SOLUTIONS 2024
Depreciation - ANSWER Assets that decrease in value over time. US Federal Income Tax law permits
reasonable deductions for depreciation.
This involves borrowing and utilizing money which is to be repaid at a later point in time. - ANSWER
Debit Financing
What is the benefit to debt financing under current U.S tax law (as of December 2008)? - ANSWER
Interests payments made by corporations on debit capital are tax deductible.
Under this type of financing the lender acquires an ownership position within the borrower's
organization. - ANSWER Equity
These are the accumulation of annual earnings surpluses that a company retains within the company's
coffers rather than pays out to stockholders as dividends. - ANSWER Retained Earnings
How is taxable income calculated? - ANSWER Gross Income - Allowable Deduction
What method is presently used for calculating depreciation? - ANSWER MACRS - Modified Accelerated
Cost Recovery System
What units does a degree day have? - ANSWER F - Day/Yr
What is Energy Use Index, EUI? - ANSWER Its the ratio of the total amount of Btu used per year per the
total square feet of conditioned space.
What does NECPA stand for? - ANSWER National Energy Conversation Policy Act
When was the NECPA established? - ANSWER Established in 1978
, Approximately every _____ years a new Energy Policy Act is adopted? - ANSWER 14
Why was the Energy Policy Act of 1992 enacted? - ANSWER The Feds came in an with guidelines for the
states to established more stringent building energy codes.
What was requested by the DOE under the EPA of 1992? - ANSWER That the private sector established
standards for windows, office equipment, and luminaires or the DOE would do it.
A energy reduction was established by the EPA 1992, what is it? - ANSWER 2% per year
What does ESPC stand for? - ANSWER Energy Savings Performance Contracts
What type of anaylsis is required by the EPA of 1992? - ANSWER LLC - Life Cycle Cost Anaylsis
The EPA of 1992 required that all federal facilities do this by January 1, 2005 with a payback period of
less than 10 years. - ANSWER Institute energy and water conservation measures.
This is the first major national energy legislation since EPACT 1992. - ANSWER EPACT 2005
What is the major thrust of EPACT 2005 - ANSWER Energy Production
What are the other areas does EPACT 2005 promote? - ANSWER Energy Efficiency and Conservation
Why is Federal Energy Management so important? - ANSWER They are the single largest energy user in
the US.
What % of US energy is used by the Feds? - ANSWER 1.6% - it accounts for $10 billion dollars in 2005 of
facilities.
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