Building Star would provide rebates for energy efficiency retrofits of commercial and multi-family residential buildings. Senators Jeff Merkley (D-Ore.) and Mark Pryor (R-Ark.) introduced Building Star to the Senate on March 4, 2010. Peter Welch (D-Vt.) and seven cosponsors introduced the bill to the House on May 28, 2010.

Bill Information

Summary

The $6 billion Building Star legislation provides financial incentives to owners of commercial and multifamily residential buildings to retrofit their buildings with energy efficient equipment and materials. The bill creates a new program in the Department of Energy (DOE) to give rebates for specified energy efficiency improvements, provides grants to states for complementary financing programs, and expands DOE loan guarantees to energy efficiency programs.

Rebate Program

Building Star provides $5 billion in rebates to building owners for envelope efficiency improvements, efficient equipment installation and replacement, and energy efficiency services. Non-federal commercial buildings and residential dwellings of five or more residential units are eligible for the program. Building STAR rebate amounts are as listed in Appendix I, or up to 50% of the purchase and installation cost, and may be added to existing federal and state incentives. The program ends December 31, 2011.

Process: To be determined by the Department of Energy, the Building Star rebate process is generally as follows:

1. A building owner or designee submits an application to DOE specifying the proposed improvements and total rebate requested.
2. DOE issues a confirmation that rebates will be made if proposed measures are completed.
3. Applicant submits certification to DOE upon project completion.
4. DOE verifies completion and pays rebates not later than 30 days after certification is received.

In addition, DOE will ensure that at least 10 percent of funded projects are inspected for quality assurance.

Financing Program

Building Star provides $600 million in formula grants to states to support energy efficiency financing programs. The state, or a designee, may use the grant to create revolving loan funds, provide credit support and interest rate buy-downs for a number of loan products, including on-utility-bill payment, property-assessed clean energy (PACE) financing, municipal service charges, and more traditional loan products.  The legislation requires the loan delivery entity to report regularly to the DOE on program participation, job creation, energy savings, and default and repayment rates.

DOE Loan Guarantee Program

Building STAR amends the DOE loan guarantee program (Title 17 of EPAct ’05, 42 USC 16516) to include energy efficiency retrofit projects and financing programs as eligible loan guarantee recipients for the two years.

Impacts

Building STAR will create jobs, save Americans money on their energy bills and increase energy security. According to the American Council for an Energy-Efficient Economy, the legislation would create 150,000 jobs, save building owners more than $3 billion dollars on their energy bills annually, and reduce global warming by 21 metric tons per year, the equivalent of taking 4 million cars off the road.

Appendix I:  Rebate Amounts for Specific Improvements

*For more information on qualification criteria for improvements, see S. 3079, Sec. 2.