Senate Democrats on Tuesday punted their oil spill response bill to next month, but the extra time doesn’t guarantee the measure will pass — far from it.

The delay virtually ensures that strategists from both parties will use the congressional recess to hone their plans, talking points and poison-pill amendments for any floor debate, all with an eye toward the midterm elections.

Majority Leader Harry Reid’s decision to pull the plug on offshore drilling is the latest blow to Democratic efforts to move energy legislation, beginning with the deaths of a sweeping climate change bill and then a scaled-down renewable energy bill.

Some Democrats and environmentalists said they are optimistic the extra time will allow them to revisit the broader renewable energy provisions they had to jettison earlier, in hopes of folding them into the drilling bill.

But lobbyists and staffers close to the energy bill process said that, if anything, the partisan dynamics that led Reid to pull the bill this week will only get worse the closer lawmakers come to the midterm elections.

“Reid has got to craft a very narrow bill. He’s going to have to go as narrow as possible,” said a former Senate Democratic aide now closely involved in the Hill energy debate. “Getting broader just makes it harder. He’s going to have to go as narrow as possible, given that he’s got some Democrats against the liability cap. It’s a terrible box.”

“Sen. Reid is predictably blaming Republicans for standing in the way of a bill that he threw together in secret and without input from almost any other member of the Senate,” said Sen. Lisa Murkowski (R-Alaska), ranking member of the Energy and Natural Resources Committee. “Process alone guaranteed its failure, although substance would have as well had Sen. Reid actually brought his bill up for debate or a vote.”

New Jersey Sen. Robert Menendez, the author of the language lifting the liability cap and the chairman of the Democratic Senatorial Campaign Committee, sounded a partisan message about the stalled bill, outlining the talking points Democratic strategists had prepared to use in August campaigns after the spill vote.

“The key question is, Whose side are you on? … Are you on the side of Big Oil, or are you on the side of citizens in coastal communities?” Menendez said. “I hope citizens spend the month of August asking Republicans why they oppose holding BP accountable.”

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“Cash for Caulkers” is nearly here. Last month the House of Representatives passed H.R. 5019 – also known as the Home Star Energy Retrofit Act of 2010 or “Cash for Caulkers” – to kick-start construction, create jobs and cut back carbon emissions. While the bill still needs to clear the Senate, supporters predict it will pass this summer.

This is great news for homeowners and contractors alike. The 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.

But 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. You can read the full text here.

Who is Eligible and How to Qualify?

The Home Star bill offers two rebate programs, the “Silver Star” program and “Gold Star” program. Here are details for each:

Silver Star – Unless another amount is specified in the “Rebate Amount” column above, homeowners will receive a $1,000 rebate for each retrofit listed in our table. The maximum amount of rebates paid out will be $3,000 or 50% of the total cost, whichever is lower. For example, if a homeowner spends a total of $4,000 on eligible retrofits, they will get $2,000 or 50% back as a rebate. If they spend $8,000 on eligible retrofits, they would only receive $3,000 in rebates instead of $4,000 (which would be 50% of the cost).

We made it really easy to wade through the legalese. Here is a table that breaks down the 13 retrofits of the bill, along with the requirements and rebate amount for each. In addition to the requirements we listed, each retrofit must comply with Building Performance Institute (BPI) standards or other procedures to be approved by the Secretary of Energy.

Gold Star – To qualify for the Gold Star program, homeowners must reduce their total home energy consumption by 20%. A $3,000 rebate will be rewarded for this reduction. Homeowners can receive an additional $1,000 for each additional 5% reduction, up to a total rebate of $8,000 or 50% of the total retrofit cost. Rebates may be provided for any of the retrofits listed under the Silver Star program, or for any other energy-saving measure, including: home energy management systems, high-efficiency appliances, highly reflective roofing, awnings, canopies, and similar external fenestration (window) attachments, automatic boiler water temperature controllers, energy-efficient wood products, insulated vinyl siding, and mechanical air circulation and heat exchangers in a passive-solar home.

The Home Star bill also includes rebates for do-it-yourself (DIY) homeowners that are confident in taking on the renovations themselves. DIY’ers can get up to $250 in rebates for products purchased without installation service. This rebate is limited to attic insulation, crawl space insulation and/or air-sealing retrofits.

Seal Your House Envelope and Improve Insulation

Before carrying out any serious retrofit, homeowners need to weatherize and seal their house “envelope.” The envelope includes outer walls, windows, doors, floors and the ceiling. If the house is not properly sealed and insulated, then subsequent HVAC retrofits won’t be as effective.

So how much does it cost to seal all the air leaks in a home? Prices will obviously vary based on where you live, how big your property is and the scope of the retrofit. But it will likely cost a few thousand dollars to hire a contractor for this type of renovation. In this example from the New York Times, the author spent $3,760 for insulating and sealing the envelope of his 1,200 square foot home.

How much can homeowners expect to save? The Environmental Protection Agency (EPA) estimates that homeowners can save 20% on heating and cooling costs by sealing leaks and adding insulation. In New York – one of the most expensive places to heat a home with an average annual cost of $1,513 – this would be a yearly savings of $300 just for heating.

Continuing with the example from the New York Times, the Silver Star program would provide $1,880 (50%) in rebates for their retrofit. At an annual savings rate of $300, the renovation would pay for itself in six years (or less if you include cost savings from reduced air conditioning bills).

Repair and Replace Leaky Ducts

Duct replacement and sealing is eligible for funding under the Home Star bill. Many homeowners will want to outsource this project to a qualified HVAC contractor. Contractors have equipment to detect leaks that otherwise may not be immediately visible. They also have methods to seal ducts that are inaccessible. For example, by spraying an adhesive or sealant through the duct work.

Replacing and sealing ducts can also be a DIY project, especially when ducts can be easily accessed in an attic or basement. Leaks should be sealed with mastic sealant or metal tape (not duct tape), then insulated to reduce heat loss and to further improve efficiency. The Lawrence Berkeley National Laboratory has an excellent guide on how to seal and insulate ducts.

Upgrade Your Furnace and Water Heater

Heating is the largest energy expense in homes, according to the American Council for an Energy-Efficient Economy (ACEEE). In colder parts of the country, it makes up 30 to 50% of annual energy bills. So improving the heating efficiency of your home will have the biggest impact on lowering your energy costs. Sealing air leaks is a good start, but replacing your heating system could provide real leverage towards cost savings.

If your furnace or boiler was purchased before 1990, then it is time to consider an upgrade. Modern furnaces are much more efficient than those that are older than 20 years. You can use rebates from the Home Star bill to replace your furnace, but you will need to meet their guidelines:

Water heaters are typically the second largest energy users after home heating and cooling systems. Replacing convention oil-fired water heaters with high-efficiency gas or electric heaters can save homeowners thousands of dollars over a 10 to 15 year period. The Home Star bill includes a variety of replacement options eligible for rebates.

Additional Financing Resources

With other legislation in the queue, it might take weeks or months to hear the Senate’s final decision on the Home Star bill. In the meantime, homeowners can receive funding from other sources to pay for green renovations. The federal government, state governments, local municipalities and even utility companies offer several options.

For example, homeowners can still receive a federal tax credit for 30% of the cost of energy-efficient products (up to a total credit of $1,500). This includes the purchase of central air conditioning systems (both the product and installation), electric heat pumps, furnaces and boilers, and whole-house ventilation fans. Visit the US Department of Energy Energy Savers website for more information.

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According to both versions of the legislation, the Silver Star Program will offer rebates, in varying amounts up to $3,000 per home, awarded to participating contractors and vendors, who perform qualifying energy saving improvements. That means if a homeowner hires a contractor, the contractor will float the value of the rebate as a discount to you. They will then be paid by the rebate aggregator.

However, you can do some installations yourself. The press release for the Senate version says consumers can get “between $250 and $1500 in ‘point-of-sale’ rebates” for insulation, air sealing, and — of course — caulk.

The Gold Star Program offers retrofits that rebate up to $8,000 to contractors and vendors for retrofits that achieve home energy savings determined by a comparison of the simulated energy consumption of the home before and after the retrofit. Gold Star rebates to only be offered by contractors accredited by the Building Performance Institute. And it also includes similar language to the House version that defines a “certified workforce” as one where all employees performing installation work are certified by NATE, BPI, LIUNA, or HBI.

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The House of Representatives passed the $6 billion “cash for caulkers” program Thursday to give homeowners rebates of up to $8,000 for energy efficiency retrofits.

By a vote of 246 to 161, it passed the Home Star Energy Retrofit Act, backed mostly by Democrats including President Obama and industry groups including the U.S. Chamber of Commerce, the National Association of Manufacturers and the National Association of Home Builders.

GOP members questioned the price tag at a time of mounting budget deficits. “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 during debate, according to the Associated Press.

The Senate has yet to vote on the two-year program, which will give rebates for adding insulation, sealing ducts and installing efficient water heaters, heating units and windows. It also includes $600 million in grants to states for programs to replace mobile homes with more energy efficient models.

“Home Star is a practical, common sense investment in job creation and energy savings,” says co-sponsor Rep. Peter Welch, D-Vt., who estimates three million families will participate.

Rebates will be worth $1,500 per measure, capped at 50% of project costs or $3,000, whichever is less. They could reach $8,000 for a whole-house retrofit that’s based on a thorough energy audit.

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As the nation struggles to recover from one of the worst economic recessions in decades, unemployment has recently shown some marginal improvement, falling below 10 percent in January. But for workers in the construction and construction-related manufacturing sectors, there is little relief as jobless rates remain at near-Depression levels.

Fortunately, help is on the horizon. This week a bill establishing a HOME STAR program of consumer rebates for home energy efficiency retrofits will be introduced in the Senate thanks to the leadership of Sens. Mark Warner (D-VA) and Jeff Bingaman (D-NM), among others. Concerned members of Congress, with the Obama administration’s support, have crafted an incentive program to make millions of U.S. homes more energy efficient, swiftly create 168,000 jobs in construction and manufacturing among other industries, save homeowners nearly $10 billion over a decade through lower energy costs, and make a dent in global warming pollution.

The proposal for a $6 billion HOME STAR program enjoys broad and bipartisan support. It is backed by the President’s Economic Recovery Advisory Board and is part of a jobs agenda endorsed by some Senate Democratic leaders. A large and broad coalition including major corporations, organized labor, and energy nonprofits supports the initiative as well. In President Barack Obama’s State of the Union address he said that rebates for Americans who retrofit their homes should be part of a clean-energy agenda. “We should put more Americans to work building clean-energy facilities, and give rebates to Americans who make their homes more energy efficient, which supports clean-energy jobs,” he said. The Senate will soon consider jobs legislation and HOME STAR should be a key component.

HOME STAR, sometimes called “cash for caulkers,” is a proposal that makes sense. It makes economic sense because it can provide a quick employment stimulus putting 168,000 people to work—the overwhelming majority of them in jobs that can’t be outsourced overseas. It makes sense for homeowners who will be able to afford home improvements that will pay real dollar dividends for many years by reducing their energy bills 20 percent or more forever. It makes sense for businesses who will see demand for their products increase. And it makes sense for a more secure energy future since increasing the number of homes with energy efficient retrofits from 200,000 a year to 3 million a year will cut global warming pollution by the equivalent of taking 615,000 cars off the road or decommissioning four 300-megawatt power plants.

As important as these energy benefits are, however, HOME STAR is clearly a job creator and the right medicine for the economy.

Consumer incentives

The program gives homeowners a choice of incentives: the SILVER STAR and GOLD STAR paths.

The SILVER STAR incentive provides rebates for purchasing and properly installing specific energy-saving equipment such as furnaces and water heaters, or changes to a building’s envelope such as insulation and duct sealing. Rebate amounts are up to $1,500 per qualified installed measure, capped at 50 percent of project costs or $3,000—whichever is less.

The GOLD STAR incentive goes a step further and rewards whole-home or office building retrofits. This performance?based incentive is based on predicted energy savings determined by a thorough energy audit performed before the work begins. The auditor tests the home’s energy performance using proven building science methods, designs a customized retrofit plan in consultation with the homeowner, and calculates the energy savings that will result from the recommended measures. Homeowners can receive $3,000 for modeled savings of 20 percent, plus $1,500 for each additional 5 percent of modeled energy savings, with total incentives of up to $8,000, not to exceed 50 percent of total project costs. This will encourage homeowners to invest in the most cost-effective technologies, which are often the simplest and most labor-intensive investments.

Economic benefits

HOME STAR will create 168,000 jobs according to independent analysis by Climate Works using respected economic models from REMI and McKinsey & Co. Those jobs will be heavily concentrated in the hard-hit construction and manufacturing sectors of the U.S. economy and will benefit every state and both urban and rural communities.

The program will help create long-term construction industry careers by increasing demand for home energy retrofits roughly 15 times, rising from current rates of 200,000 homes a year to close to 3 million retrofits annually. It will also provide much-needed help to the retail sector where overall jobs have fallen 7.5 percent since December 2007 but 10.4 percent for building materials and garden supply stores. Jobs in the wholesale sector have declined 22.5 percent for construction supplies compared to 8.1 percent overall.

The HOME STAR program dedicates $200 million to increase consumer access to financing, which further boosts job creation by leveraging additional private capital investments, and helps homeowners overcome upfront cost barriers to paying for these energy-saving home improvements.

What’s more, HOME STAR investments are cost effective, creating an additional economic benefit by saving homeowners as much as $9.4 billion over 10 years. HOME STAR will also affordably reduce carbon dioxide emissions by 4 million tons per year, or 40 million tons by 2020. That helps the economy by reducing our vulnerability to energy price shocks and getting a head start on driving down the production of greenhouse gases—changes we know we need to make anyway.

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NEW YORK (CNNMoney.com) — Investing to make your home more energy efficient may lower the bills, but it may not boost its price, partly because these investments aren’t fully valued by appraisers.

“Everyone is talking about return on investment, it’s the first thing customers want to know,” said Jeff Geoghan, a Coldwell Banker realtor in Lancaster, Penn. “But the appraisal industry is not up to speed on this at all.”

Nearly everyone agrees that performing an energy retrofit will make your place more comfortable and save a lot on bills. But if the retrofits don’t add value to the home’s price, will homeowners make the improvements, regardless of whether or not the government decides to pick up half the tab, as they are considering?

Details have yet to be ironed out and passage is not a sure thing, but it’s thought a new jobs initiative being pursued by Democrats in Congress may funnel some $11 billion towards home energy efficiency.

It’s designed primarily to put contractors back to work, doing things like adding insulation, caulking windows and doors, and upgrading heating units, air conditioners, hot water heaters and other appliances.

If passed, homeowners may be eligible for a tax credit worth up to $12,000, or half the cost of the retrofits, which ever is lower.

If a homeowner spends $24,000 and cuts its energy use in half – probably the most ambitions reduction that can reasonably be achieved – it would save the average homeowner $100 a month on their utility bills, said Lane Burt, manager of building energy policy at Natural Resources Defense Council.

Many homeowners would likely opt to spend less, going for the cheapest options that save the most energy. Contractors who perform energy retrofits say most people spend around $6,000 or $7,000, and the payback time is around 5 years.

But assuming the full amount is spent and the savings are $100 a month, that should result in a substantial increase in home’s valuation. After all, an extra $100 a month one could put towards a mortgage means an increase of $20,000 on the purchase price for a home, according to a calculation done on a purchase price calculator.

Yet that extra $20,000 does not show up on a home’s appraisal.

Part of the problem is that many real estate appraisers aren’t trained to look for energy efficiency upgrades.

“There are appraisers out there that have extremely minimal education,” said Leslie Sellers, president of the the industry association the Appraisal Institute.

Sellers said the institute is currently running green certification programs that will teach appraisers how to better value upgrades like efficiency improvements.

Sellers also suggested going with a better trained appraiser – a “certified appraiser” – when getting a home evaluated, even if they cost more money.

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The White House and business leaders team up to craft a program to encourage energy efficient home improvements.

Josh Hewey blows in bio-based, closed-cell foam insulation in the upper floor of a Jamaica, Vt., home originally built in the 1700's. Workers with Thermal House retrofit a home to make it more energy efficient, thus reducing its carbon footprint. The Obama administration hopes to spur interest in similar work through a proposed Home Star, or 'Cash for Caulkers,' program. Melanie Stetson Freeman/Staff

The Obama administration has teamed up with green-sector entrepreneurs to craft a vision for a program that Congress could enact later this year. Officially, the plan is called Home Star, but it’s also quickly becoming known as “cash for caulkers.”

Despite its simple appeal, the plan faces a number of practical hurdles.

During a late December lunch with business leaders to discuss the proposal, President Obama asked that the end document be “simple, quick, but effective,” said Steve Cowell, CEO of Conservation Services Group in Westborough, Mass. For Mr. Cowell and other energy-saving proponents, that means grappling with two tough challenges: how to get homeowners to buy into the program and how to build a nationwide industry, complete with training and accreditation, from a disparate collection of state and local programs.
Two kinds of subsidies

To attract homeowners, Home Star will offer two tracks of incentives. The first, “Silver Star,” track subsidizes the purchase of services, like roof installation, as well as products, like efficient windows and furnaces. The incentives will be designed to get homeowners and businesses to try the program.

The second, “Gold Star,” track offers incentives tied to overall reductions in a home’s energy usage. A 20 percent reduction in energy output would be eligible for $3,500 in rebates, with each 5 percent of additional energy savings adding $1,500 in incentives. The government would fund no more than 50 percent of any project’s total cost.

Gold Star’s bigger financial incentives are aimed at getting larger energy savings, treating a home as a system rather than as disparate parts, says Matt Golden, president of a San Francisco-based home-retrofitting firm and a leading player in creating the program. “We need to make sure the investments that we’re making right now will be sustainable and will have a long-term impact.”

Organizers, while optimistic, admit they have a long way to go. For example: Even environmentally minded Vermont is struggling to increase the number of home retrofits done.

With the cost of making the average home 20 percent more efficient running between $5,000 and $10,000, only a few hundred Vermonters are retrofitting their homes in any given year. It’s “a drop in the bucket,” says Blair Hamilton, the policy director of Efficiency Vermont, a group that coordinates retrofitting activity in the state. “We haven’t broken a thousand [retrofits] a year. And we need to.”

But the small numbers speak more to the small dollars behind the project than consumers’ lagging interest in the project, advocates say. Where there are homes, says Rep. Peter Welch (D) of Vermont, there is potential demand for retrofitting and, thus, the potential for new jobs, even in remote rural areas.

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