Home Star Program

by Joel Barkman

Regardless of your political affiliation, the home energy efficiency incentives proposed by President Obama will create much-needed jobs and help make America more energy independent, according to the National Association of Home Builders (NAHB).

Speaking Tuesday in Savannah, Ga., President Obama outlined a new $6 billion proposal to provide cash rebates to home owners who make energy-saving home improvements.

"This has the potential to be a real shot in the arm for the home building industry," said NAHB Chairman Bob Jones, "It will help put America back to work and it will help families save on monthly energy bills."

NAHB economists estimate that every $1 billion in remodeling and home improvement activity generates 11,000 jobs, $527 million in wages and salaries, and $300 million in business income.

This does not take into account that homeowners will have extra cash on hand each month from utilities savings. Cash that may end up filtering back into or local economy.

Administration officials estimate that up to four million households could benefit from the program, officially known as Home Star, but dubbed "Cash for Caulkers" by many in Congress and the media.

"Making the existing housing stock more energy efficient is one of the most effective ways to achieve national energy conservation goals," Jones added. "In the long run this can be an important step in reducing the nation's dependence on foreign energy supplies."

A program managed by the Builders Association of Minnesota (BAM) could serve as a model for the president's proposed initiative. That program has served as the conduit for federal stimulus program funds provided to the state for its energy-efficiency programs.

The association, in partnering with NAHB, has trained 1,000 remodelers and other residential contractors and funneled the money to 1,400 home owners to help them make needed improvements.

Minnesota home owners got extra incentives for choosing projects like attic insulation, which some consumers don't do because it's something that's not immediately visible, but when combined with incentives can bring a payback on utility bills within a year or two.

Virginia has adopted similar measures as far as incentives for homeowners who make energy-saving home improvements, but on a limited basis.

But that has been a work in progress. Thanks in part to the last administration's efforts to incentivize home improvements, and thanks in part to your local builders association.

While serving as the Fauquier chapter president of the Northern Virginia Building Industry Association (NVBIA), I am proud of the efforts that have been made within our local building industry to educate contractors as well as homeowners.

Several of our NVBIA members have been leading the charge toward "greener" legislation while remaining committed to saving you money with the services that they provide, not just for my clients, but for the entire community.

Members such as NOVA Spray Foam, Southland Insulators, ARS, and DOW Chemical have all proved to be especially dedicated and I thank them for their efforts.

The president and Congress should look to the Minnesota program as an excellent example of how the proposal could work nationally, but just as important, NVBIA is making sure that you have an abundant source of well trained professionals right here in your own backyard.

While NAHB and NVBIA support the president's residential retrofit initiative, there are concerns about some of the implementing details as the program has been proposed in various legislative drafts.

"For this effort to be successful, the opportunities must be equally accessible to everyone," Jones said. "We need to make sure that Congress does not put up barriers that would keep this program from reaching its full potential."

And as a leader in the industry, we [builders and contractors] need to be ready to move the program forward by promoting, advocating, and educating.

For more information about the proposed Home Star program, please visit http://energy.senate.gov. In the meantime, creating jobs and saving homeowner dollars is always at the top of the agenda, just "Ask a Builder."

As always e-mail your questions or comments to joel@goldenrulebuilders.com or write to "Ask a Builder" at P.O. box 294, Catlett, VA 20119.

Barkman is past president of the Fauquier Chapter of The Northern Virginia Building Industry Association.

Read Joel's column weekly in the