HOME STAR
Encyclopedia
HOME STAR, informally known as Cash for Caulkers, is a United States government
program proposed in November, 2009 to encourage economic growth by offering incentives to homeowners
and retailers for improving the energy efficiency
of existing homes.
had contributed to the recovery, and some desire for the government to do more to encourage job growth and a faster recovery.
In mid-November former president Bill Clinton
, and John Doerr
of Barack Obama
's President's Economic Recovery Advisory Board
, proposed different versions of an economic stimulus program by which the government would offer tax incentive
s to encourage people to improve the energy efficiency of their homes. Doerr, in public speeches, called the proposal "cash for caulkers". Separately U.S. Representative
Peter Welch proposed a system of energy rebates to Rahm Emanuel
, Obama’s Chief of Staff
. Obama, in turn, proposed the idea as part of a larger new stimulus program, at a speech at the Brookings Institution
on December 8, 2009.
The stated goals of the proposed program are to reduce pollution, particularly greenhouse gasses, by reducing household energy use, to save consumers money in the long term through lower power bills, and to stimulate American businesses through the money spent on appliances, materials, and installation. Improving the energy efficiency of "fixed infrastructure", which accounts for approximately 40% of all energy use in the United States, is considered the "low hanging fruit" of energy conservation - a step that achieves results relatively inexpensively and does not require any new technologies or changes to production or consumption methods.
The name "Homestar" is a reference to the popular energy star
electronic device efficiency rating system, and the nickname "Cash for Caulkers" is a play on the earlier cash for clunkers automobile trade-in incentive.
s by private contractor energy experts, who then recommend a series of steps for each homeowner to upgrade their home's energy efficiency. As proposed the plan was for the government to pay 50% of the cost of each home improvement project through a rebate, tax credit
, or funds paid to manufacturers and retailers, up to a maximum of $12,000 paid for each home. Alternatively, there was speculation that the federal government might give funds to local governments to run their own programs. There was no limitation on eligibility based on tax bracket
or income
.
Items under consideration for the program included weatherization
of home by installing additional insulation, new doors, and windows, and replacing old appliances with more energy-efficient new ones. Expensive items such as washing machines, dishwashers, refrigerators, air conditioners, and heaters, would be covered.
The program was expected to cost approximately $10 billion over the course of one year, paid for out of unspent Troubled Asset Relief Program funds, and would reduce energy consumption of homes that took full advantage of the program by up to 20%. To become effective it would have to be part of a bill
passed by the United States Congress
.
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
program proposed in November, 2009 to encourage economic growth by offering incentives to homeowners
Owner-occupier
An owner-occupier is a person who lives in and owns the same home. It is a type of housing tenure. The home of the owner-occupier may be, for example, a house, apartment, condominium, or a housing cooperative...
and retailers for improving the energy efficiency
Efficient energy use
Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...
of existing homes.
Background
In late 2009 there was a broad perception that the United States economy was beginning to recover from the Late-2000s recession. There was a broad perception that government spending authorized by the American Recovery and Reinvestment Act of 2009American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February 2009 and signed into law on February 17, 2009, by President Barack Obama.To...
had contributed to the recovery, and some desire for the government to do more to encourage job growth and a faster recovery.
In mid-November former president Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
, and John Doerr
John Doerr
L. John Doerr is an American venture capitalist at Kleiner Perkins Caufield & Byers in Menlo Park, California, in Silicon Valley. In February 2009, Doerr was appointed as a member of the President's Economic Recovery Advisory Board to provide the president and his administration with advice and...
of Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
's President's Economic Recovery Advisory Board
President's Economic Recovery Advisory Board
The President’s Council on Jobs and Competitiveness, originally the President's Economic Recovery Advisory Board, is a panel of non-governmental experts from business, labor, academia and elsewhere that President of the United States Barack Obama created on February 6, 2009. The board reports...
, proposed different versions of an economic stimulus program by which the government would offer tax incentive
Tax incentive
A tax incentive is an aspect of the tax code designed to incentivize, or encourage, a certain type of behavior. This may be accomplished through means including tax holidays, tax deductions, or tax abatements...
s to encourage people to improve the energy efficiency of their homes. Doerr, in public speeches, called the proposal "cash for caulkers". Separately U.S. Representative
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
Peter Welch proposed a system of energy rebates to Rahm Emanuel
Rahm Emanuel
Rahm Israel Emanuel is an American politician and the 55th and current Mayor of Chicago. He was formerly White House Chief of Staff to President Barack Obama...
, Obama’s Chief of Staff
White House Chief of Staff
The White House Chief of Staff is the highest ranking member of the Executive Office of the President of the United States and a senior aide to the President.The current White House Chief of Staff is Bill Daley.-History:...
. Obama, in turn, proposed the idea as part of a larger new stimulus program, at a speech at the Brookings Institution
Brookings Institution
The Brookings Institution is a nonprofit public policy organization based in Washington, D.C., in the United States. One of Washington's oldest think tanks, Brookings conducts research and education in the social sciences, primarily in economics, metropolitan policy, governance, foreign policy, and...
on December 8, 2009.
The stated goals of the proposed program are to reduce pollution, particularly greenhouse gasses, by reducing household energy use, to save consumers money in the long term through lower power bills, and to stimulate American businesses through the money spent on appliances, materials, and installation. Improving the energy efficiency of "fixed infrastructure", which accounts for approximately 40% of all energy use in the United States, is considered the "low hanging fruit" of energy conservation - a step that achieves results relatively inexpensively and does not require any new technologies or changes to production or consumption methods.
The name "Homestar" is a reference to the popular energy star
Energy Star
Energy Star is an international standard for energy efficient consumer products originated in the United States of America. It was first created as a United States government program during the early 1990s, but Australia, Canada, Japan, New Zealand, Taiwan and the European Union have also adopted...
electronic device efficiency rating system, and the nickname "Cash for Caulkers" is a play on the earlier cash for clunkers automobile trade-in incentive.
Structure
As of December, 2009, no proposed legislation had been released, and there were few specific details of how the program would be administered, which federal agencies would be involved, or how the tax incentives would be paid (or to whom). The program is expected to involve preliminary energy auditEnergy audit
An energy audit is an inspection, survey and analysis of energy flows for energy conservation in a building, process or system to reduce the amount of energy input into the system without negatively affecting the output.-Principle:...
s by private contractor energy experts, who then recommend a series of steps for each homeowner to upgrade their home's energy efficiency. As proposed the plan was for the government to pay 50% of the cost of each home improvement project through a rebate, tax credit
Tax credit
A tax credit is a sum deducted from the total amount a taxpayer owes to the state. A tax credit may be granted for various types of taxes, such as an income tax, property tax, or VAT. It may be granted in recognition of taxes already paid, as a subsidy, or to encourage investment or other behaviors...
, or funds paid to manufacturers and retailers, up to a maximum of $12,000 paid for each home. Alternatively, there was speculation that the federal government might give funds to local governments to run their own programs. There was no limitation on eligibility based on tax bracket
Tax bracket
Tax brackets are the divisions at which tax rates change in a progressive tax system . Essentially, they are the cutoff values for taxable income — income past a certain point will be taxed at a higher rate.-Example:Imagine that there are three tax brackets: 10%, 20%, and 30%...
or income
Household income
Household income is a measure of the combined incomes of all people sharing a particular household or place of residence. It includes every form of income, e.g., salaries and wages, retirement income, near cash government transfers like food stamps, and investment gains.Average household income can...
.
Items under consideration for the program included weatherization
Weatherization
Weatherization or weatherproofing is the practice of protecting a building and its interior from the elements, particularly from sunlight, precipitation, and wind, and of modifying a building to reduce energy consumption and optimize energy efficiency.Weatherization is distinct from building...
of home by installing additional insulation, new doors, and windows, and replacing old appliances with more energy-efficient new ones. Expensive items such as washing machines, dishwashers, refrigerators, air conditioners, and heaters, would be covered.
The program was expected to cost approximately $10 billion over the course of one year, paid for out of unspent Troubled Asset Relief Program funds, and would reduce energy consumption of homes that took full advantage of the program by up to 20%. To become effective it would have to be part of a bill
Bill (proposed law)
A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....
passed by the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
.