Third Time’s a Charm? Home Star included in oil spill bill
When Senate Majority Leader Harry Reid (D-Nev.) unveiled his draft clean energy and oil spill bill yesterday, the Alliance welcomed the inclusion of Home Star, the $5 billion investment that will create jobs and save money by helping Americans make their homes more energy efficient. See our summary of the full Clean Energy Jobs and Oil Company Accountability Act (S. 3663).
Home Star has been a long time coming. President Obama introduced the proposal last year, and it passed the House in May. This week’s introduction marks Home Star’s third iteration in the Senate, and the most promising: Now that it is a part of Sen. Reid’s high-profile energy bill and has a specified funding source in oil revenues, Home Star might finally make it through.
How is this version of Home Star different?
With each introduction, Home Star’s legislative language evolves slightly. Sen. Reid’s newest version is very similar to Sen. Jeff Bingaman’s (D-N.M.) May (S. 3434) and March (S. 3177) Home Star bills, with a few changes:
Total Funding Level: At $5 billion, Sen. Reid’s version authorizes less funding than the previous $6 billion proposals. The May bill also authorized a $5 billion program but included an additional performance-based tax credit.
Performance-Based Tax Credit: Sen. Reid’s version does not include the performance-based tax credit section added to the bill in May. That section would have provided tax credits based on demonstrated energy improvements, which would kick in after the similarly functioning Gold Star program rebates expire in 2012.
Opportunities for Targeted Workers: While all versions require states to consider employing underprivileged or “targeted workers” in their quality assurance plans, Sen. Reid’s version expands the section and describes opportunities for minority- and women-owned businesses; low-income, unemployed or veteran workers; and low-income homeowners.
Eligible Improvements: Sen. Reid’s version includes rebates for water efficiency improvements not contained in either of the previous Senate bills, as well as several eligible measures (window film, storm windows for historic preservation, skylights, roof replacement and water temperature controllers) added to the bill in May. In addition, the most recent version would reimburse up to $250 per home for do-it-yourself improvements for insulation, as added to the bill in May.
Certification Requirements for Gold Star Contractors: As with previous versions, Sen. Reid’s version requires that Gold Star contractors hold additional certification, likely through the Building Performance Institute (BPI). New to this version, Sen. Reid’s bill describes a process and criteria for the Department of Energy to permit non-BPI certified contractors to participate in the program.
Federal Financing Support: Like the May bill, Sen. Reid’s version would allow the Department of Energy loan guarantee program, established in Title XVII of EPAct '05, to provide credit support for energy efficiency loan programs for the two years after the enactment of the bill.
How is it the same?
Despite the long process and many iterations, the Home Star program has remained fundamentally intact throughout: Home Star would provide rebates to homeowners who retrofit their homes with energy efficient equipment and materials, including insulation and windows, as well as heating and cooling equipment. The legislation would create two rebate programs: Silver Star would offer rebates of up to $3,000 per home for specific improvements; Gold Star would offer up to $8,000 per home for whole-house reductions in energy use.
Most importantly, Home Star would save families money and reduce harmful emissions while putting Americans back to work.
“We call on Congress to pass this provision promptly,” said Alliance to Save Energy President Kateri Callahan on Tuesday, “and set in motion a tidal wave of American energy efficiency investment that will have a positive and immediate impact on our economy.”
The Rest of the Oil Spill Bill
Sen. Reid’s four-part Clean Energy Jobs and Oil Company Accountability Act also takes up oil spill prevention and oil company liability, promote natural gas and electricity in the transportation sector, and invest public funds to protect the environment. This is not the comprehensive energy and climate bill we had hoped for.
“While we are disappointed at the limited scope of the overall bill introduced today, Home Star is a creative solution to the energy and economic problems facing our country," Callahan concluded.
