The Green Journey Starts at Home ™

With Congress struggling to find consensus on most issues, Reps. David McKinley (R-W.V.) and Peter Welch (D-Vt.) today found common ground by introducing bipartisan energy efficiency legislation that will create jobs, save homeowners money and benefit the environment.

The Home Owner Managing Energy Savings (HOMES) Act will provide rebates to homeowners who invest in energy efficiency improvements. Homeowners who demonstrate a 20 percent energy savings will receive a $2,000 rebate. For every 5 percent in additional energy savings, they can receive another $1,000 – up to a total of $8,000 or 50 percent of the project’s cost. The legislation is modeled after the Welch-authored Home Star Energy Retrofit Act (H.R. 5019), which passed the House with bipartisan support in the 111th Congress.

The greatest barrier to adoption of “green” retrofits is arguably the cost. Homeowners want proof that their investment will return a high yield in the future. Cash for caulkers will hopefully be the impetus for change…

Passed just last month by the House of Representatives, the “cash for caulkers” bill provisions $6 billion for energy-efficient or “green” retrofits. It is expected to fund renovations for 3 million families, create 168,000 new jobs and save consumers $9.2 billion on energy bills over the next 10 years.

In order to cash in on upcoming rebates, homeowners and contractors will need to do their homework.. There are 13 types of retrofits eligible for funding. Each retrofit has unique eligibility requirements and set rebate amounts.

Software Advice, a website that reviews software for mechanical/HVAC contractors, recently put together a thorough report on cash for caulkers. Their post includes an easy-to-read table that outlines the 13 retrofits, along with their requirements and rebate amounts. To learn more, visit: Cash for Caulkers – The Definitive Guide To The Home Star Energy Retrofit Act of 2010

Minnesota Governor Tim Pawlenty signed a bill last month that included provisions for Property Assessed Clean Energy (PACE).  This program will allow home and business owners to make energy efficiency property improvements that allow for immediate energy savings. The energy savings from the improvements will offset the costs of the investments — through lower building and home operating costs.  PACE effectively means you can do what is necessary to achieve comfort and energy savings in your home or building immediately, but spread the cost over 20 years by adding it to your property tax bill.

We believe PACE is a brilliant and creative financing solution for motivating the energy efficiency markets.  What has kept the markets constrained in the past was the concern of most home and building owners, that they would not live or own the building long enough to  warrant making the improvements necessary.  Why invest in a photovoltaic panel or new set of windows, if the payback period on these is 15 years, but you believe you may only live in your home 5 years?  PACE removes this obstacle.    You can make the necessary energy efficiency capital improvements to your home and not be burdened with the personal debt.  Instead these improvements are assessed directly against the property and remain with the property after the homeowner sells.

The PACE program is new to Minnesota (but has been adopted in 20 states) and many of our towns and cities are just now trying to figure out how they will implement it.  We see PACE as important and a tremendous opportunity for our clients and constituents.  At the Green Home Doctors we will be staying close to this issue and will keep our clients and friends aware of our insights around how PACE unfolds in the state.

This afternoon, the House passed the Home Star Energy Retrofit Act of 2010 (H.R. 5019) with a vote of 246 to 161!  The bill passed with bi-partisan support – 12 Republicans voted in favor.

Let’s see how our Minnesota representatives voted:

• Bachmann, Michele, Minnesota, 6th – Nay
  She likes the ‘Drill Baby Drill’ approach and evidently does not have much use for conservation.  In the aftermath of the BP spill you would think that she would see that there needs to be smart alternatives, to drilling our way out of our energy challenges.
• Ellison, Keith, Minnesota, 5th – Yea
  Smart man!  He earned your support.
• Kline, John, Minnesota, 2nd – Nay
  Kline writes on his site that “Any legislation designed to revive and renew our economy should help American families and small businesses by preserving and creating more jobs in America. Americans should be able to keep more of their hard-earned money – to save, spend or invest. Legislation based on those principles would put America on a direct road to economic recovery.”

  If Kline really believes in his words, that we need to create jobs and help people save money, there is is no good reason from him to vote Nay.  Remember this folks when he is up for reelection.

• McCollum, Betty, Minnesota, 4th – No vote
• Oberstar, James L., Minnesota, 8th – Yea
  Another smart individual who deserves your support.
• Paulsen, Erik, Minnesota, 3rd – Nay
  What is Erik thinking??
• Peterson, Collin C., Minnesota, 7th – Yea
  Thanks Collin.
• Walz, Timothy J., Minnesota, 1st – Yea
  Tim understands energy conservation and deserves your support.

This is a major milestone for Home Star, but work still remains. First, the Senate must follow up and pass their version of the Home Star bill. Additionally, today’s vote was an authorization, so it must be matched with an appropriation bill. An appropriation bill will actually allocate the $6 billion dollars to the program.

HOME STAR legislation is scheduled to be voted on by the full U.S. House of Representatives this coming Thursday, May 6.

This initiative establishes a $6 billion rebate program to encourage immediate investment in energy-efficient appliances, building mechanical systems and insulation, and whole-home energy efficiency retrofits. HOME STAR will rapidly create jobs in both construction and manufacturing, while saving families money on their energy bills. It will build on current state programs and existing industry capacity for performing both retrofits and quality assurance, using federal standards and incentives as a common platform to lower program costs and increase consumer awareness.

For an interesting article on Energy Conservation please see the March edition of National Geographic.

The New York Times provides an interesting video on thermography and energy loss detection —  see this link.  NYTimes editor Tom Zeller has written  an article on having an energy audit performed, the recommended improvements and the results of the improvements.