House passes Cash for Caulkers rebate bill

WASHINGTON - Homeowners could collect thousands of dollars in Cash for Caulkers rebates for renovating their homes with better insulation and energy-saving windows and doors under a new economic stimulus bill the House passed yesterday.

The Home Star bill, passed 246-161, would authorize $5.7 billion over two years for a program that supporters, mostly Democrats, said would have the added benefits of invigorating the slumping construction industry and making the earth a little cleaner.

"Home Star is that solid investment that's going to achieve that hat trick of energy savings for the homeowner, of moving toward a cleaner environment and of creating jobs here at home," said bill sponsor Peter Welch (D-Vt.).

Republicans overwhelmingly opposed the bill, and they were able to attach a condition that it would be terminated if Democrats do not come up with a way to pay for it.

The measure has come to be dubbed Cash for Caulkers, a takeoff on the popular 2009 Cash for Clunkers initiative that rewarded people for replacing gas-guzzling vehicles with more fuel-efficient models.

President Barack Obama praised the House action, saying the bill "will help jump-start job growth and demand for new products created right here in America" as well as saving consumers money on energy bills.

The initiative is separate from an energy tax credit of up to $1,500 that was included in last year's economic stimulus act. That credit for energy efficiency improvements runs through the end of this year.

Supporters estimate that 3 million households would make use of the new program, saving $9.2 billion in energy costs over a 10-year period. They said it would create 168,000 jobs, mainly in the recession-hit construction industry.

"Nearly one in four workers in the home construction and services industry has been laid off," said Energy and Commerce Committee chairman Henry Waxman (D-Calif.). "Passing Home Star says, 'Help is on the way.' "

Republicans were more skeptical, saying the price tag was too high at a time of mounting federal debts.

With House passage, the bill moves to the Senate, where it most probably will be attached to the next jobs bill.

What's in the Home Star legislation

Basics of the proposed Home Star legislation to provide rebates to homeowners for energy-efficient improvements:

-- Under the Silver Star program, homeowners would get rebates of between $1,000 and $1,500 for each improvement installed, or $250 per appliance, with a benefit not exceeding $3,000 or 50 percent of total project costs.

-- Covered measures: air sealing; attic, wall and crawl space insulation; duct sealing; window and door replacement, furnaces, air conditioners, heat pumps, water heaters and appliances.

-- Under the Gold Star program, consumers would be eligible for $3,000 when they conduct whole-house energy analyses and install technology that improves their overall home energy efficiency by 20 percent. They could receive an additional $1,000 rebate for each additional 5 percent improvement, to a maximum of $8,000. The rebate could not represent more than 50 percent of the total cost of the project.

-- The initiative is different from last year's economic stimulus bill that provides a tax credit of up to $1,500 for energy efficiency improvements. That tax credit expires at the end of this year.

-- The bill would authorize $5.7 billion over two years for the initiative. An additional $600 million would be provided to help states with programs to make mobile homes more energy-efficient.

 - AP