At the Savannah Technical College, President Barack Obama unveiled more details about his proposed $6 billion Homestar program, an effort to provide homeowners with cash rebates to make their homes more energy efficient.
The President told students, “I’m convinced that the country that leads in clean energy is also going to be the country that leads in the global economy”.
As currently proposed, the operation of Homestar would be similar to the Cash for Clunkers program. A homeowner would receive the rebate at the time of sale which would be deducted from any balance due, and the contractor would be reimbursed by the Federal Government following confirmation that the work was done. According to the White House Fact Sheet for Homestar, there will be 2 levels of rebates:
$1,000 – $1,500 Silver Star Rebates: Consumers looking to have simple upgrades performed in their homes would be eligible for 50% rebates up to $1,000 – $1,500 for doing any of a straightforward set of upgrades, including: insulation, duct sealing, water heaters, HVAC units, windows, roofing and doors. Under Silver Star, consumers can chose a combination of upgrades for rebates up to a maximum of $3,000 per home. Rebates would be limited to the most energy efficient categories of upgrades—focusing on products made primarily in the United States and installed by certified contractors.
$3000 Gold Star Rebates: Consumers interested in more comprehensive energy retrofits would be eligible for a $3,000 rebate for a whole home energy audit and subsequent retrofit tailored to achieve a 20% energy savings in their homes. Consumers could receive additional rebate amounts for energy savings in excess of 20%. Gold Star would build on existing whole home retrofit programs, like EPA’s successful Home Performance with Energy Star program.
Homestar should create jobs and fuel an already exploding market for energy efficient products for the home. According to economists at the NAHB, every $1 billion spent on remodeling creates 11,000 jobs, $527 million in wages and salaries, and $300 million in business income. The good news is that Homestar has received a lot of support from think tanks and the construction industry.
Older, less energy efficient homes are a big market for Homestar. Replacing windows is a popular upgrade to improve energy efficiency. Homeowners considering a window upgrade in an older home need to be mindful of the new lead paint regulations. Many older homes have lead paint, and a window upgrade might involve disturbing those areas. On April 22, the EPA’s Lead Renovation, Repair, and Paint Regulation takes effect. It will require contractors to have completed 8 hours of training before disturbing lead paint or face significant fines. The EPA estimates that 14,000 people have been certified on the new rule, and there’s a total of 236,000 remodelers and trade workers that will have to be trained. Some states have no EPA-certified trainers at all. As a result of the possible delays in getting remodelers trained and certified, the NAHB has expressed concern that the upcoming April 22 deadline for lead safe renovations might have a negative impact on getting Homestar off the ground. That’s one reason why some are asking Congress to extend the upcoming April 22 deadline for the lead paint requirement.
There’s a long road ahead for Homestar. If the program becomes law, contractors and other trade workers will need to ramp up to handle the flood of future work. If that work involves disturbing lead paint, the homeowner and contractor will want to insure that training has been completed and certifications are in place. A mechanism also needs to be in place to perform spot checks to make sure the work is being done.
Let’s hope these details get worked out.
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