Kitchen clunkers effort pushes energy efficiency
Posted on 28. Sep, 2009 by GMS Editor in Newsflash, ShowOnLatestPanel
By MIKE ELSWICK
Saturday, September 26, 2009
The Department of Energy estimates the full $300 million allotted for the program will be awarded by the end of November, and consumers should start to see the rebate programs in stores later this year or early in 2010.
Participating states were to receive 10 percent of their funding allotments up front, which department spokeswoman Jen Stutsman said will be used to help develop the programs.
The federal government has set aside $300 million for rebates for people buying energy efficient appliances, such as dishwashers, refrigerators and air conditioners. Moseley said to qualify, appliances would need to have the Energy Star label on them indicating they are energy efficient models.
Steven Chu, secretary for the U.S. Department of Energy, said about 55 percent of newly produced appliances qualify for the Energy Star seal. The department and the Environmental Protection Agency set the Energy Star standards.
“These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy,” Chu said in a prepared statement.
Kitchen clunker Q & A
Q: What is this program, and why haven’t I heard much about it yet?
A: There hasn’t been much talk of the program yet because it’s still taking shape.
Here’s what we know: The government has set aside about $300 million for states to use to give out rebates to buyers of energy-efficient appliances like freezers, refrigerators, furnaces and central air conditioners.
Q: When will this start?
A: States had to send letters saying they wanted to participate to the Department of Energy by Aug. 15. In the next week, they were to start receiving 10 percent of their funding allotments, which department spokeswoman Jen Stutsman said will be used to help develop the programs.
Plans for the programs — including which products qualify and how much the rebates will be worth — are due back to the federal government by Oct. 15. The Department of Energy estimates that the full $300 million will be awarded by the end of November, and consumers should start to see the rebate programs in stores later this year or early next year.
“It will really just depend on how complex the state’s program is and the infrastructure they have to put in place,” Stutsman said.
Q: How much money is being awarded to each state?
A: The allocation to states and territories is based on population, working out to roughly $1 a person per state. So California’s allotment is the biggest, with nearly $35.3 million.
There’s a minimum allotment of $100,000, which is what American Samoa and Northern Marianas will get.
Q: What will the average rebate look like?
A: The Department of Energy won’t give a number, since it says it won’t know what the states’ plans are until mid-October. But the appliance industry’s trade group, the Association of Home Appliance Manufacturers, said consumers should expect to see rebates of between $50 and $200, since that’s what states with existing rebate programs typically give.
Q: Is this a new idea?
A: Yes and no. An energy rebate program was first included in the Energy Policy Act of 2005, but it was never funded until this year’s stimulus bill. From the Department of Energy’s perspective, this is a new federal program. But the trade group estimates that 25 states already have their own rebate programs, which either states or utilities pay for.
Q: How much money will people save?
A: The trade group said replacing an 8-year-old clothes washer with a new one saves $78 in electricity a year.
Last year, Americans saved more than $19 billion on their utility bills due to savings from Energy Star products, according to government estimates.




