House passes legislation for home-energy rebate

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

The Home Star bill, which passed 246-161 and still needs Senate approval, 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, as well as 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 did 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 ones.

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 2010.

Supporters estimate that three million households would use 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 construction.

"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 debt.

To prevent fraud, the program would require licensing of participating contractors and a certain percentage of projects would be inspected.

The bill has two parts: The Silver Star program provides up-front 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.

The Gold Star program would entitle people to up to $8,000 when they conduct comprehensive energy audits and implement steps to cut energy use in their homes by more than 20 percent.