California has pushed back the start of its cash for appliances program to April 22, but based on what happened in some other states, consumers who want to get a rebate on a new energy-efficient washer, refrigerator or room air conditioner should be ready to pounce.

The official start date was pushed back to April 22 (Earth Day) to give retailers and consumers more time to understand and prepare for the program, says Amy Morgan, a commission spokeswoman.

The commission has made a few other changes to the program.

It has increased the rebate on qualifying refrigerators to $200 from $75.

Also, the new appliance can now replace a working or nonworking appliance of the same type. Originally, the new appliance had to replace a working appliance. The old appliance – working or not – still must be recycled according to program rules.

The commission launched a Web site this week, www.cash4appliances.org, that will have all the information consumers need, including a list of qualifying appliances, participating dealers and recyclers and rebate-application instructions.

California is offering up to $50 on room air conditioners that are rated Energy Star or higher. The rebate would be reduced if it, combined with utility rebates, exceeded the purchase price. “A person cannot make money on the purchase,” Morgan says.

The state is offering rebates of $200 on refrigerators and $100 on clothes washers that meet a higher energy efficiency standard known as CEE Tier 2.

Rebates will be paid first-come-first-served, based on the postmark of the mail-in rebate. The program will run through May 23 or until the $35 million is gone.

To see what other states are doing, go to energysavers.gov/financial/70022.html.

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Utah receives $30 million for weatherizing homes from the federal stimulus act.

By Thomas Burr
The Salt Lake Tribune
Updated: 12/16/2009 05:19:38 PM MST

When Congress put $5 billion into the federal stimulus act early this year to help boost home energy efficiency, it might have had Sandra Kahn in mind.

Kahn fell last year in her Sugar House home, breaking her neck and spending three months and four days in the hospital recovering.

Coming home, she found electric and gas bills that were just too much to handle on a monthly disability allotment.

But after a call to the Salt Lake Community Action Program in Salt Lake City and a little paperwork, Kahn found her home transformed. Leaky doors and windows were plugged, her attic and crawl space insulated, and incandescent bulbs were replaced with spiral fluorescent bulbs.

“What it means to us is that usually in the past if we did 300 homes it was a good year. Now we’re hoping to get to about 1,000 homes,” says Dale Canning, deputy director of the program.

The program includes an energy audit of a home — checking to see where hot air might be leaking out, for example — and potential fixes such as new windows, insulation and perhaps even new water heaters or furnaces through partnerships with Rocky Mountain Power and Questar, Canning says.

Kahn says she’s already seeing the difference. Her heating bills alone last year were more than $300, she says, but now are significantly less. Her previous electric bill was $12.

“The house is so much warmer now,” she says. “It’s like God sent an angel down to watch over me.”

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NEW YORK (CNNMoney.com) — President Obama’s Cash for Caulkers proposal has almost every homeowner wondering how they’ll be able to cash in.

The plan calls for greater incentives, perhaps amounting to thousands of dollars, for homeowners to get new energy-efficient appliances, windows and other such items.

But no one knows exactly how the federal program – part of a broader plan to stimulate the economy – might work. That’s because it’s still being written.

It may be modeled, at least in part, on New York State’s home energy efficiency program, said Steve Nadel, director at the American Council for an Energy-Efficient Economy, who’s advising on the federal proposal.

So how exactly does New York’s program work?

Homeowners interested in participating find a contractor licensed to do an energy audit by New York State – available on the state’s web page or by calling a toll-free number.

Then someone like David Scharf, a contractor based just north of New York City, shows up.

For about $500, Scharf will figure out how much energy the home wastes. He’ll put a giant fan in the door that will suck in air from outside the home, highlighting leaks in windows, doors or walls. He’ll test each appliance to see how much energy it draws. He’ll check the thickness of your insulation and windows.

Then, all this is fed into a computer model that generates a checklist with everything that could be replaced, how much it will cost, and how much in energy savings can be expected out of it. The homeowner decides how much work to do, and negotiates a price.

When the work is done, the homeowner pays Scharf directly. Scharf then submits paperwork to the state agency that runs the program. The homeowner then gets a reimbursement check from the agency for 10% of the project cost, up to $3,000, usually within 30 days.

If Obama gets his way, homeowners could get much bigger rebates than that in the future. No one knows what the numbers will be yet, but Nadel said other legislation currently in Congress would give homeowners a 50% rebate, with a maximum reimbursement of $12,000.

With so much money potentially on the table with Cash for Caulkers rebates, fraud is another big concern.

“Any program that is going to run through a third party and is going to distribute billions of dollars, needs to have lots of checks and balances to make sure there’s not abuse,” David Kreutzer, an energy analyst at the Heritage Foundation, told CNN earlier this week after Obama proposed the new federal program Tuesday.

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In U.S. history, there may have been no better time to own a junk car, a rattling old fridge and a leaking dishwasher.

On the heels of its ballyhooed “Cash for Clunkers” program for cars, the federal government is expected to finalize details in the coming weeks of another tax-supported shopping extravaganza, known as “Cash for Appliances.”

Supported by $300 million from the economic stimulus, the program will offer rebates to consumers who buy energy-efficient refrigerators, dishwashers, air conditioners and other appliances to replace their older models.

Although the $787 billion stimulus program was signed by Obama in February of 2009, much of the cash-for-appliances money won’t hit the streets until next February, March or April. The rebate program is being run by state governments, which must define and enact their rebate plans with federal government funding and approval. A survey of some of the largest states shows that California is planning to begin its program in March, New York in February, Pennsylvania in the spring, Illinois in January and April.

“Our desire would be to see these programs rolled out as soon as funding is available,” said Jill Notini, a spokeswoman for the Association of Home Appliance Manufacturers. “Unfortunately, you may have people saying, ‘It’s kind of on the blink, but we’ll wait.’ We wish that the states would follow the intent, which is to stimulate the economy now.”

The number of shipments of home appliances in the United States, which is closely linked to new home construction, is down 12 percent from last year, Notini said, and this comes after three years of decline.

No one doubts that the appliances program will attract consumers. While the programs will vary by state, some of the proposed rebates that have been announced so far range from $50 to $100 per appliance. The state-administered programs also have varying requirements regarding whether consumers must recycle an old appliance to qualify for the rebate

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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.

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Cash for clunkers ended this week — for cars.

But old energy-hogging refrigerators and freezers qualify for recycling and cash from more than 60 utilities across the nation. And the federal government is making money available to states so consumers could get rebates of $50 to $200 for new, more energy-efficient appliances later this year in a so-called “cash for appliances” program.

Combined, the appliance initiatives have a goal similar to the cash-for-clunker program for autos: They get less-efficient appliances off the nation’s energy grid in favor of newer efficient ones.

Unlike cash for clunkers, consumers taking advantage of the rebate program wouldn’t need to trade in their old refrigerators to get the benefit of buying a new one with an energy-star seal designating it as efficient.

Old refrigerators and freezers are some of the biggest energy users in homes, and getting old ones out for energy-efficient models will save customers anywhere from $50 to $150 a year on electricity bills, says Steven Rosenstock, manager for energy solutions at the Edison Electric Institute, which represents 70% of the investor-owned utilities in the United States.

Jaco Environmental is a Seattle-based company that has been picking up and recycling refrigerators for 20 years, first for retailers and now for utilities. It runs recycling programs for 61 utilities in 26 states.

Money from the stimulus bill is a boon for business, says Michael Dunham, director of energy and environmental programs for Jaco.

Jaco recycles 95% of the refrigerator, including toxic chlorofluorocarbons, which are destroyed at a waste-to-energy incinerator. The steel is used in rebar to reinforce roadways, and the plastic goes into everything from laptop computers and cellphones.

“These refrigerators are environmental time bombs,” Dunham says. “But this is all recycled and made into new products.”

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Ben Franklin famously said that the only sure things in life are death and taxes. If he lived today, he’d add energy costs to the list.

But homeowners have ample, overlooked opportunities to cut their home energy bill from an average $1,500–without overspending. “Often the biggest bang for the buck is going to come from air sealing in the home,” says Edward Pollock, head of residential efficiency in the Department of Energy’s Building Technologies Program. “Depending on how old the house is, air leakage can contribute up to 30% of heating and cooling losses.”

The most obvious air leaks occur around poorly sealed doors and windows. But the biggest losses often occur in the attic, where electric wires and vent pipes route outside the house and create gaps for air to escape. As hot air escapes from an attic in the winter, it creates a vacuum effect that draws more warm air from the heated house below, adding strain to heating systems. The same vacuum effect can draw hot air into an air-conditioned house during the summer, making the A/C work longer.

Heating alone costs an average of $500 per year, with attic and basement air leaks accounting for up to $70 of this expense. But sealing the house can cost as little as $100, paying back the investment in less than two years. Extra attic insulation can cost $2 per square foot, and pays back within five years in energy savings.

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MONTGOMERY, Ala. – Ready or not, states are getting a tenfold boost in federal money to weatherize drafty homes, an increase so huge it has raised fears of waste and fraud and set off a scramble to find workers and houses for them to repair.

An obscure program that installs insulation in homes and makes them more energy-efficient is distributing $4.7 billion in stimulus funds — dwarfing the $447 million originally planned by Congress this year and the $227 million spent in 2008.

That is enough to weatherize 1 million homes, instead of the 140,000 normally done each year.

In addition to receiving an infusion of stimulus money, the program was expanded to cover families making up to twice the federal poverty level, or $44,100 for a family of four. Also, the average amount that can be spent per house was more than doubled to $6,500.

The funding for New York is going up from $20.1 million last year to $395 million. California’s share is soaring from $6.3 million to $185.8 million. Virginia’s is going up 23 1/2 times, from $4 million annually to $94.1 million.

“I was stunned,” said Shea Hollifield, Virginia’s deputy director of housing. “Spending that much money will be a challenge.”

States are hurrying to find qualified weatherization workers and caulk-ready homes.

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The Obama Administration’s new stimulus bill has extended and tripled the dollars you can get in federal tax credits for energy efficiency improvements you complete to your main home in each of the years 2009 and 2010.

Here’s how the tax credit works:

1. When you complete your improvements, be sure to save all the invoices and sales documents for the materials and installation, including the Manufacturer Certification Statement.**

2. When you file your taxes for 2009, obtain the correct form from the IRS (the forms will be available in late 2009 or early 2010). When you fill out the form, you will enter the amount you paid multiplied times 30% which is the amount of cost allowed. Complete the form and submit it with your Federal Income Tax Return. You cannot apply for more than $1,500 in credits for all the improvements you complete.

3. Whether you itemize your deductions or not, you will receive a credit for the amount you have submitted, which will be subtracted from any ordinary income tax that you owe. If your federal tax credit exceeds how much tax you owe, you may carry forward the excess amount to the next tax year.

See specific improvements eligible for tax credits below.

SEAL AND INSULATE – Applicable tax credits on materials

Windows and Doors

Qualifying factors — Exterior windows and doors must have a U factor and SHGC equal to or less than 0.30.
Storm windows and doors must meet IECC model energy codes++, in combination with the windows/doors over which they are fitted. Not all ENERGY STAR products qualify for this credit.

Credit amount — Exterior windows and skylights, storm windows, exterior doors and storm doors: 30% of cost.

Window Films may also qualify if the manufacturer certifies that the specific window film meets insulation requirements and includes a certification statement.

Insulation

Qualifying factors — meet the 2009 IECC energy codes and be expected to last five years or have a two-year warranty.

Credit amount – 30% of cost

Sealing home envelope cracks and ducts

Qualifying factors – meet 2009 IECC codes.

Credit amount – 30% of cost

HEATING AND COOLING – Applicable tax credits on new equipment

Central A/C

Qualifying factors – Split systems: EER >=13, SEER >= 16; package systems: EER >=12, SEER >= 14. Not all ENERGY STAR products qualify for this credit.

Credit amount – 30% of cost

Air Source Heat Pumps

Qualifying factors – Split systems: HSPF >= 8.5, EER >= 12.5, SEER >= 15; Package systems: SPF >= 8, EER >= 12, SEER >= 14.

Credit amount – 30% of cost

Furnaces

Qualifying factors – Natural gas or propane furnace: AFUE >= 95; oil furnace: AFUE >= 95. Not all ENERGY STAR products qualify for this credit.

Credit amount – 30% of cost

Boilers

Qualifying factors – AFUE >= 90

Credit amount – 30% of cost

Fans for Heating and Cooling Systems

Qualifying factors – No more than 2% of furnace total energy use

Credit amount – 30% of cost

Biomass Stoves

Qualifying factors – Thermal efficiency rating of at least 75% as measured using a lower heating value.

Credit amount – 30% of cost

**What is a Manufacturer Certification Statement and how do you find it.

This is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. Manufacturers provide these certifications on their website to help identify qualified products and you should also be able to get them from the retailer when you purchase the materials. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

++What are the IECC’s energy codes.

The International Energy Conservation Code set standards for building materials and structures, and updates these periodically. The retailer or manufacturer where you purchase these items should be able to identify if they qualify for the credits and provide the code information as part of your purchase.

For Tax Credits on Renewable Energy installations

Find the latest information on solar, wind and geothermal heat pumps at:
http://www.energytaxincentives.org/business/renewables.php

The Obama Administration’s new stimulus bill has extended and tripled the dollars you can get in federal tax credits for energy efficiency improvements you complete to your main home in each of the years 2009 and 2010.

Here’s how the tax credit works:

1. When you complete your improvements, be sure to save all the invoices and sales documents for the materials and installation, including the Manufacturer Certification Statement.**

2. When you file your taxes for 2009, obtain the correct form from the IRS (the forms will be available in late 2009 or early 2010). When you fill out the form, you will enter the amount you paid multiplied times 30% which is the amount of cost allowed. Complete the form and submit it with your Federal Income Tax Return. You cannot apply for more than $1,500 in credits for all the improvements you complete.

3. Whether you itemize your deductions or not, you will receive a credit for the amount you have submitted, which will be subtracted from any ordinary income tax that you owe. If your federal tax credit exceeds how much tax you owe, you may carry forward the excess amount to the next tax year.

See specific improvements eligible for tax credits below.

SEAL AND INSULATE – Applicable tax credits on materials

Windows and Doors

Qualifying factors — Exterior windows and doors must have a U factor and SHGC equal to or less than 0.30.
Storm windows and doors must meet IECC model energy codes++, in combination with the windows/doors over which they are fitted. Not all ENERGY STAR products qualify for this credit.

Credit amount — Exterior windows and skylights, storm windows, exterior doors and storm doors: 30% of cost.

Window Films may also qualify if the manufacturer certifies that the specific window film meets insulation requirements and includes a certification statement.

Insulation

Qualifying factors — meet the 2009 IECC energy codes and be expected to last five years or have a two-year warranty.

Credit amount – 30% of cost

Sealing home envelope cracks and ducts

Qualifying factors – meet 2009 IECC codes.

Credit amount – 30% of cost

HEATING AND COOLING – Applicable tax credits on new equipment

Central A/C

Qualifying factors – Split systems: EER >=13, SEER >= 16; package systems: EER >=12, SEER >= 14. Not all ENERGY STAR products qualify for this credit.

Credit amount – 30% of cost

Air Source Heat Pumps

Qualifying factors – Split systems: HSPF >= 8.5, EER >= 12.5, SEER >= 15; Package systems: SPF >= 8, EER >= 12, SEER >= 14.

Credit amount – 30% of cost

Furnaces

Qualifying factors – Natural gas or propane furnace: AFUE >= 95; oil furnace: AFUE >= 95. Not all ENERGY STAR products qualify for this credit.

Credit amount – 30% of cost

Boilers

Qualifying factors – AFUE >= 90

Credit amount – 30% of cost

Fans for Heating and Cooling Systems

Qualifying factors – No more than 2% of furnace total energy use

Credit amount – 30% of cost

Biomass Stoves

Qualifying factors – Thermal efficiency rating of at least 75% as measured using a lower heating value.

Credit amount – 30% of cost

**What is a Manufacturer Certification Statement and how do you find it.

This is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. Manufacturers provide these certifications on their website to help identify qualified products and you should also be able to get them from the retailer when you purchase the materials. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

++What are the IECC’s energy codes.

The International Energy Conservation Code set standards for building materials and structures, and updates these periodically. The retailer or manufacturer where you purchase these items should be able to identify if they qualify for the credits and provide the code information as part of your purchase.

For Tax Credits on Renewable Energy installations

Find the latest information on solar, wind and geothermal heat pumps at:
http://www.energytaxincentives.org/business/renewables.php