Where is the Free Green Money?
| 25 August 2010
Could you use $1,000 to $8,000 from Uncle Sam to upgrade your home to be more energy efficient and lower your utility bills? That's exactly what the H.R. 5019: Home Star Energy Retrofit Act of 2010 would offer you as a homeowner. Unfortunately, after the House of Representatives approved the legislation (a.k.a "cash for caulkers"), the Senate has dragged their heals to approve the measure and get the program up and running. According to the New York Times (8/13/10), over 90 percent of stimulus money has remained unspent.
With over 20 percent of the construction sector currently unemployed, the Home Star program is expected to provide a boost in green job growth and help homeowners struggling to make ends meet. The program would not only make your home more energy efficient with lower utility bills, it would also lower your carbon footprint and help preserve the environment.
A breakdown of what the proposed legislation would offer homeowners:
- Silver Star Rebates: Homeowners would be eligible for rebates of 50% for the cost of upgrading homes with insulation, duct sealing, water heaters, HVAC units, windows, roofing and doors. The maximum rebate amount would be $3,000.
- Gold Star Rebates: Homeowners would be eligible for comprehensive retrofits through energy auditing and tailored upgrades that achieve a 20% energy efficiency savings. Gold Star would require employing certified contractors and vendors with a payout range of $3,000 to a maximum $8,000.
Even though Environmental groups managed to raise $22 million toward lobby efforts to get some sort of climate bill legislation passed, they were outspent by oil and gas lobbyists that put out $175 million to defeat the efforts. Other hurdles to overcome are which certification program should oversee the program and how quickly rebates are to be paid out.
The House version of the bill has Building Performance Institute (BPI) as the certification entity to deploy the program. Critics suggest that BPI contractors are primarily in the Northeastern U.S. with very few members to offer services to homeowners in a high number of states. For example, the BPI website has no Silver Star members listed for the state of Arkansas. Here in the Dallas Fort Worth area, BPI has 12 Silver Star contractors listed on their website. Still, only a dozen for a population of over 6 million.
Under the proposed scenario, contractors and vendors would receive the rebates after the work is completed in order to keep homeowners from being out of pocket the total costs. However, in our current economic situation, how many contractors and vendors have the deep pockets to be out large amounts of cash and waiting for rebates to reach them? We will see how it all plays out when the Senate reconvenes after Labor Day.





