OBAMA EFFICIENCY UPGRADE PLAN

Obama proposes $3,000 home energy rebates
Patricia Zengerle (w/Steve Holland andCynthia Osterman), March 2, 2010 (Reuters)

"President Barack Obama… proposed rebates of up to $3,000 to help homeowners pay for the cost of making their homes more energy efficient, a $6 billion program intended to create jobs.

"…Obama traveled to Savannah Technical College to unveil a plan that could create tens of thousands of jobs…as White House economic adviser Larry Summers predicted that winter blizzards were likely to distort U.S. February jobless figures…Construction activity was hit particularly hard by the storms, but many restaurants and stores also had to close…"

A proposed version of the as-yet unpassed plan. (click to enlarge)

"The efficiency plan, which must be passed by Congress, is intended to prompt Americans to invest in everything from insulation or new windows to overarching energy upgrades of their homes, creating construction and manufacturing jobs and boosting energy efficiency. Consumers would be eligible for between $1,000 and $1,500 for simple home upgrades such as insulation, duct sealing, water heaters, air conditioning units, windows, roofing and doors…Homeowners looking for more comprehensive energy retrofits would be eligible for a $3,000 rebate if the efficiency measures lead to a 20 percent energy savings…

"The program involves a range of incentives for consumers, including rebates from stores that sell building materials, companies that install the equipment and utility energy efficiency programs. Consumers could also get rebates for a range of home energy upgrades…Dubbed "cash for caulkers" after last year's successful "cash for clunkers" automobile trade-in program, the program…will have time limits, although such details would be worked out with Congress. Democrats included the program in a set of job-creation efforts they announced early in February…"

A proposed version of the as-yet unpassed plan. (click to enlarge)

"The scheme would also offer support for state and local governments to provide financing options for consumers who want to participate. The White House said it expected the program would [involve 2 to 3 million households and] save consumers $200 to $500 in energy costs per year…

"The president's agenda got a rare boost last week when a few Republicans in the Senate joined Democrats to approve a $15 billion package of tax breaks and highway spending that aims to bring down the 9.7 percent unemployment rate…But Republicans seeking to wrest control of Congress from the Democrats have scored political points by expressing concern that what Obama frames as job creation efforts are overspending to expand the reach of government. The White House must also placate investors nervous about deficit spending as it seeks to stimulate job growth…"