"Cash for Caulkers" Bill Passes House
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 Thursday.
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 has promoted the bill, which also needs Senate approval.
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.
"We are going to authorize $6.6 billion of money we don't have so we can caulk homes?" asked House Republican leader John Boehner of Ohio.
"This is not a terribly bad bill, but it has one fatal flaw: It is not paid for," said Rep. Joe Barton of Texas, top Republican on the energy committee. Democrats argued that the issue of paying for the legislation will come later in the budgetary process, when Congress approves annual spending bills.
Republicans succeeded at the end of the debate in altering the bill to say it will be terminated if it is found to drive up the federal deficit, a provision that will force Democrats to come up with an offset. The Republicans also were able to alter the legislation so that the rebates would go directly to homeowners. In the original version, homeowners were to receive a discount or rebate from a retailer or contractor, who then would apply for payment from the government.
Waxman said Republicans picked up Democratic votes for that final GOP motion - 178 of 245 voting Democrats backed it - by including several "gimmicks" that could be used against lawmakers in future elections, such as a provision that contractors in the program must ensure that they don't have sexual predators on their payroll. He said some of the GOP-backed changes would be dealt with when the House and Senate work out a final version.
In debate on the bill, Republicans questioned whether the government can run the rebate program fairly and effectively. They said a $4.7 billion weatherization program that was part of last year's economic stimulus act has been slow to provide grants to states.
The Cash for Clunkers program, too, had some problems. An Associated Press study last November found that the program was commonly used by people turning in old pickups for new trucks that got only marginally better gas mileage.
Under Home Star, rebates or discounts would be provided to homeowners at the time of sale. The retailer or contractor then would submit documentation to a processing office which would verify the information and forward the request to the Energy Department for payment.
To prevent fraud, the program would require licensing for all participating contractors and a certain percentage of projects would be inspected.
The bill has two parts: The Silver Star program provides upfront rebates of up to $3,000 for specific energy-efficient improvements in homes, such as installing energy-efficient appliances or duct sealing, insulation or new windows or doors.
A Gold Star program would entitle people to up to $8,000 when they conduct comprehensive energy audits and implement measures that reduce energy use throughout their homes by more than 20 percent.
The bill has the backing of a wide spectrum of environmental and business groups.
"There is strong evidence that temporary, targeted incentive programs like Home Star can generate jobs, investment and economic growth," National Association of Manufacturers president John Engler said at a hearing in March.
With House passage, the bill moves to the Senate, where it most likely will be attached to the next jobs bill.
The legislation also would approve $600 million over two years for grants to states for programs to replace mobile homes with more energy efficient models.
The original bill included $6 billion for the rebate program plus the $600 million for the state grants. The Republicans were able to remove $324 million targeted for a Home Star loan program.
© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. 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 has promoted the bill, which also needs Senate approval.
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.
"We are going to authorize $6.6 billion of money we don't have so we can caulk homes?" asked House Republican leader John Boehner of Ohio.
"This is not a terribly bad bill, but it has one fatal flaw: It is not paid for," said Rep. Joe Barton of Texas, top Republican on the energy committee. Democrats argued that the issue of paying for the legislation will come later in the budgetary process, when Congress approves annual spending bills.
Republicans succeeded at the end of the debate in altering the bill to say it will be terminated if it is found to drive up the federal deficit, a provision that will force Democrats to come up with an offset. The Republicans also were able to alter the legislation so that the rebates would go directly to homeowners. In the original version, homeowners were to receive a discount or rebate from a retailer or contractor, who then would apply for payment from the government.
Waxman said Republicans picked up Democratic votes for that final GOP motion - 178 of 245 voting Democrats backed it - by including several "gimmicks" that could be used against lawmakers in future elections, such as a provision that contractors in the program must ensure that they don't have sexual predators on their payroll. He said some of the GOP-backed changes would be dealt with when the House and Senate work out a final version.
In debate on the bill, Republicans questioned whether the government can run the rebate program fairly and effectively. They said a $4.7 billion weatherization program that was part of last year's economic stimulus act has been slow to provide grants to states.
The Cash for Clunkers program, too, had some problems. An Associated Press study last November found that the program was commonly used by people turning in old pickups for new trucks that got only marginally better gas mileage.
Under Home Star, rebates or discounts would be provided to homeowners at the time of sale. The retailer or contractor then would submit documentation to a processing office which would verify the information and forward the request to the Energy Department for payment.
To prevent fraud, the program would require licensing for all participating contractors and a certain percentage of projects would be inspected.
The bill has two parts: The Silver Star program provides upfront rebates of up to $3,000 for specific energy-efficient improvements in homes, such as installing energy-efficient appliances or duct sealing, insulation or new windows or doors.
A Gold Star program would entitle people to up to $8,000 when they conduct comprehensive energy audits and implement measures that reduce energy use throughout their homes by more than 20 percent.
The bill has the backing of a wide spectrum of environmental and business groups.
"There is strong evidence that temporary, targeted incentive programs like Home Star can generate jobs, investment and economic growth," National Association of Manufacturers president John Engler said at a hearing in March.
With House passage, the bill moves to the Senate, where it most likely will be attached to the next jobs bill.
The legislation also would approve $600 million over two years for grants to states for programs to replace mobile homes with more energy efficient models.
The original bill included $6 billion for the rebate program plus the $600 million for the state grants. The Republicans were able to remove $324 million targeted for a Home Star loan program.
Popular in Politics
- Romney condemns "breach of trust" in Washington 238 Comments
- Adviser on White House scandals: "Partisan fishing expeditions" won't distract Obama 92 Comments
- Officials on Benghazi: "We made mistakes, but without malice" 361 Comments
- Where is the Benghazi cover-up Republicans promised? 422 Comments
- IRS targeting overlooked biggest soft money groups 71 Comments
- Obama: Racism is no excuse for not excelling Play Video
- For GOP, scandals could be an electoral plus - or minus 350 Comments
- Republicans use IRS scandal to tar Obamacare
I've read the Senate bill for the Home Star Retrofit Act, aka. Cash for Caulkers and I just wanted to let everybody know that there is a $250 do-it-yourself rebate included way down in the bill. It looks like the major home improvement centers like Lowe's and Home Depot will be able to provide the rebate at the register. You can assign your rebate to the retailer who will get reimbursed from the federal government. Kind of like Cash for Clunkers.
Currently, there are no income limits in the Senate version. Although, the energy efficient improvements must be done on your primary residence. No vacation homes at the moment.
I've put together some helpful information on a website called Cashfor-Caulkers.org, http://www.cashfor-caulkers.org. It's basically an easy to read version of the Senate bill and includes an overview of how the program will work.
I'll be posting some videos on how to get the most out of the program.
I find it very short sighted for representatives to not value the financial gain of reducing wasted energy.
So if we cant pay now, the best idea is to do nothing? I think Boehner should change his name to Bonehead. Instead of crossing your arms and saying no, pull your head out of the sand and find a way to reduce energy waste!
Take my case. I've got a home built in 1911. It's got a big "picture window" in the front that's single-paned glass, probably an original. I can take a weekend, tear out this window, go down to the home improvement place with the dimensions and have a double-paned window ordered with nitrogen gas in between the panes, the works. Total cost for the window would come to around $900. I can then take it home and install it then put a $6 tube of calk in, and be done with the project.
Under this rebate I have to get a contractor. The contractor comes out and estimates the job at $1700. Out of that he goes to the same place I get my window for, pays $900 then tacks a $300 markup on that. He then charges $450 for 3 hours of installation and $50 for "materials" (ie: the $6 tube of calk) I then get a "rebate" from this Cash for Calkers program for a grand total of $800 and I'm left footing the remainder of the bill - which is $900, the same amount as it would cost me to do the damn job myself.
How does this help me? I don't have the $900 in the first place or I'd have replaced the window years ago! The only people who are going to benefit here are the home-flippers who are out there buying up foreclosures.
The biggest problem with this kind of a program is it leaves the DIYers out in the cold. Why should I pay some yahoo to come out and screw up a job that I can do myself a lot better? The last and only time I paid a contractor to install a window he put the damn thing in upside down!
If they rebated AT THE POINT OF PURCHASE to ANYONE then it might be worth doing. Retrofit windows, in case you didn't know, are almost always built to order for a specific house. Once ordered and delivered they aren't returnable. So a guy ordering the window as part of a scam to get the rebate then turn around in 6 months when the program is expired and resell the window isn't going to have much luck. So it would be perfectly fine to do this for the DIYers. But you watch - they will require contractors who only pay for the expensive certification, and those guys make enormous markups. Also the second this passes the window manufacturers are going to jack up the prices of their windows.
As for special restrictions on having sexual predators? *** is that? How about special restrictions on hiring illegal aliens? We all know that half of the contractors doing this kind of work have a payroll full of illegals who are sending money back to Mexico. The government ought to just go ahead now and send a quarter of the money in this project south directly to the Mexican government and save the time!!!!
If the government really wanted to HELP the construction industry they would hand out money to the construction workers to RETRAIN as nurses or something else. Face the facts, construction has shrunk a lot and isn't ever going to be back to where it was in the heyday of the 2000s. The construction workers who think they are going to "just get through this rough patch" are deluding themslves. Their jobs aren't ever going to come back. The fact of the matter is that if your a construction worker who isn't working now, you can either wait around for some money mirage like those fools still down in FEMA trailers thinking the government is going to replace their house in New Orleans, or you can just turn your back on construction and do something else.
Most Windows Sales companies like ours, are factory direct and represent 1 or 2 window manufacturers. We know how to measure, install and service with our eyes closed. You can't own and operate a window company without having years of knowledge under your belt, it is an exact science! So if you pay a small mark-up, you're paying for the knowledge, expertiese and licensing of the staff.
So now I have to pay for other people the story of my life.