The bipartisan Home Star Energy Retrofit Act of 2010 was introduced in the U.S. House of Representatives yesterday.

The House Subcommittee on Energy and Environment passed the bill (H.R. 5019) Wednesday (April 14), and the House Energy and Commerce Committee is expected to approve it today.

The legislation is intended to create demand for energy saving products and new work for contractors performing home retrofits. Owens Corning is tracking Home Star closely and actively participating in Congressional hearings and related governmental meetings.

Introducing the bill in a press conference yesterday were Representatives Ed Markey (D-Mass.), Peter Welch (D-Vt.), Vern Ehlers (R-Mich.) and Dennis Cardoza (D-Calif.). Markey called the bill a "legislative triple play" with the potential to create 168,000 jobs in the construction sector, save participating homeowners as much as $500 a year in energy costs, and address America's growing energy crisis in an environmentally responsible way. Ehlers said the $6 billion bill "pays for itself in every way."

The House program would offer rebates up to $3,000 for investments in building improvements such as insulation, window sealing and more efficient water heaters, and additional rebates for higher energy savings. The co-sponsors said it would save families nearly $10 billion in energy bills, not including the cost of investments.

Senate Support

The U.S. Senate is also considering a version of the bill (S. 3177) and Sen. Sherrod Brown (D-OH), one of its co-sponsors, expressed his support for both bills Wednesday in a telephone conference with Ohio media. Participating in the call with Brown was John Libonati, vice president of government and public affairs for Owens Corning.

"Owens Corning strongly supports Home Star," said Libonati. "We think this is a direct and simple approach to creating sustainable jobs and save energy.

"Without incentives, most Americans will not update their insulation," he continued. "Home Star incentives will create jobs, save energy and reduce energy costs for American homeowners.

"Insulation is a U.S.-job-centric industry," he added. "Raw materials, supply chain, manufacturing, sale and installation for American homes are almost exclusively U.S.-based. This is a win-win-win - jobs, reduced energy consumption and lower utility bills for homeowners."

Background

As Home Star legislation has evolved, it has had a variety of names including "Cash for Caulkers" and the "Jobs Bill."

The Home Star program establishes a two-tiered system for homeowners to retrofit their homes. The Silver Star program would provide rebates of $1,000 for the installation of each eligible energy-saving measure like new insulation and high-efficiency heating and cooling systems. Each household would be eligible to receive up to $3,000 in rebates. The Gold Star program would provide performance-based grants: $3,000 for a 20 percent reduction in home energy consumption and $1,000 for each additional 5 percent of verified energy reduction achieved by the retrofit.

Consumers in the program are expected to save between $200 and $500 per year in energy costs while improving the comfort and value of their homes.

Outlook

According to Libonati, the House and Senate bills have unusually broad and diverse support but passage will require overcoming several tough hurdles.

"Supporters of the legislation include the National Association of Manufacturers and NAHB, companies like Owens Corning, Home Depot, Masco, Lowe's and Dow, and many prominent environmental groups and unions," he explains.

"However, despite this broad support and the bipartisan House and Senate Bill introductions, this and other new spending bills outside of the required annual appropriations bill face several tough hurdles," continued Libonati.

"Congress has yet to identify the required spending offsets to pay for the $6 billion Home Star program and other new spending initiatives. Absent a spending 'offset,' passage will be difficult. Additionally the legislative calendar in an election year is quite narrow. Among the many issues that will take precedence over Home Star are the pending Financial Reform Bill and the process of confirming a Supreme Court nominee.

"Owens Corning will continue to work with a broad coalition of customers and other key constituencies on this legislation," added Libonati. "We are working closely with the ICAA, Insulate America and the National Insulation Contractors Exchange (NICE). This is important legislation for our customers and we are doing all we can to help it succeed."