Time Running Out on Energy Credits

  • Pete Sickman-Garner and his daughter Robin with their new high efficiency freezer. After getting rid of a 25-year old energy hogging fridge, insulating their house, and putting in new storm windows, their gas and electric bills are much lower. (Photo by Rebecca Williams)

One thing is clear… energy prices are just going to keep going up. If you’ve been thinking about making your house more energy efficient, now’s the time. That’s because a federal tax credit will be running out in a few months. Rebecca Williams has more:

Transcript

One thing is clear… energy prices are just going to keep going up. If you’ve been thinking about making your house more energy efficient, now’s the time. That’s because a federal tax credit will be running out in a few months. Rebecca Williams has more:

Pete Sickman-Garner didn’t have any trouble finding the leaks in his house. It was built in the 1940’s… with pretty much zero insulation.

“It was cold! There were nights my daughter woke up because she was had rolled over and touched the wall and it was so cold it woke her up.”

And there were those huge gas and electric bills in the dead of winter. He says he and his wife knew they really needed to seal up the house. So they hired a guy to blow insulation into the walls. And they put up new storm windows.

“It was roughly a $4000 home improvement so not insignificant. But so far we’ve gotten back $900 on our gas bill… it should pay for itself easily within 5 years.”

And on top of that they got a tax credit.

There was a pretty huge tax incentive last year for making your home more energy efficient… and it’s happening again this year. But it’s winding down. You only have eight months left.

Here’s how it works: the government will essentially pay you to make your home more efficient. Little purchases like weather stripping count. Bigger things like insulation and storm windows do too. And so do the really big things like a new furnace or central air conditioner. You can get a tax credit for 30 percent of the cost of these things… up to 15-hundred dollars total for all of your purchases. That’s money sliced right off your tax bill.

But like most things with the word “tax” in them… these home energy tax credits can get complicated.

Insulation and air conditioners and windows have to meet certain codes. You can’t go by the Energy Star label alone. On top of that… you can include the cost of installing heating and cooling equipment in your tax credit. But you can’t include those installation costs for anything else. So here’s where it’s good to call in a tax credit pro to help you wade through the details.

Ronnie Kweller is with the Alliance to Save Energy.

“When you go shopping, definitely ask the retailer: do these items qualify for the federal tax credits?”

Kweller says the best place to start is to make sure you have enough insulation for your climate. And then, seal up the little leaks in your house. You could pay three to five hundred dollars for an energy audit. Or… you can try this trick: close all the windows and doors… turn on your kitchen and bathroom exhaust fans. And then:

“Light, say, a stick of incense and just walk around the perimeter of your house on the inside, holding incense around the edges of windows and doors and if you see smoke blowing in towards you whether or not you can feel air coming in, you’ll know there is some air leak.”

She says sealing up those leaks can save you as much as 20 percent on your energy bills.

And a lot of the little – and big – things you do can count toward your 15-hundred dollar credit.

The thing is, most people tend to think about their taxes at the end of the year. Unfortunately for some businesses… that means they’re slammed when the weather’s the worst.

Donna Napolitano runs Mechanical Energy Systems. They sell all kinds of high efficiency heating and cooling equipment. She says people were squeaking in their big purchases right up until December last year.

“It was crazy here! We were installing every day and we had to combat against the weather, I mean hello, summer’s here it’s a great time to put systems in now!”

Unless this tax credit gets extended… you only have a few more months. Everything has to be paid for and installed by December 31st. So if you’re a procrastinator… you might want to start thinking about your projects sometime soon.

For The Environment Report, I’m Rebecca Williams.

“By the way… if you want to do extremely efficient installations like solar panels and geothermal heating and cooling systems, that 30-percent tax credit is not capped at 15-hundred dollars and does not run out this year.”

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Home Weatherization Gets Snagged

  • It was thought that putting insulation in older homes was one way to help jump start the economy. (photo courtesy of the US Department of Energy)

The Recovery Act called for a multi-billion dollar home weatherization program. It was thought that putting insulation in older homes was the ultimate “shovel ready” project to help jump start the economy. But as Mark Brush reports, so far, it just hasn’t worked out:

Transcript

The Recovery Act called for a multi-billion dollar home weatherization program. It was thought that putting insulation in older homes was the ultimate “shovel ready” project to help jump start the economy. But as Mark Brush reports, so far, it just hasn’t worked out:

The Department of Energy’s Inspector General found the data alarming.

Of the ten states receiving the most money for home weatherization – eight of them weren’t even at two percent of their goal.

One reason for the hold-up is bureaucracy. There’s a law that says if you get federal money – you have to pay workers a “prevailing wage” or a fair wage. And there was confusion over how much to pay people.

Don Skaggs is with Ohio’s Office of Community Services. He says most states waited until the issue was resolved – but Ohio didn’t wait:

“So we decided to go ahead and do production. And then once we understood what the requirements were, we would go back and retroactively adjust those wages for those staff, which is what we did.”

So Ohio’s on track – but most states are not. The Department of Energy said it’s working on these problems – and expects things to ramp up soon.

For The Environment Report, I’m Mark Brush.

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Recovery Through Retrofit

  • One of the main goals of the “Recovery through Retrofit” plan is to find ways to help people pay for energy efficient improvements. (Photo courtesy of the EPA)

The White House has released a plan that
intends to get more people to make their
homes and apartments more energy
efficient. Mark Brush reports:

Transcript

The White House has released a plan that
intends to get more people to make their
homes and apartments more energy
efficient. Mark Brush reports:

One of the main goals of the “Recovery through Retrofit” plan is to find ways to help people pay for energy efficient improvements. Some of these improvements can cost a bundle.

But, the White House says, there are ways to help. Christine Glunz is a spokesperson for The White House Council on Environmental Quality:

“We want to provide American homeowners with the opportunity to get this energy efficiency done, and get the retrofit done, without having to bear a major financial burden immediately.”

Glunz says the Obama Administration is pushing for new financing options. One they support is a local government loan program that is paid back through property taxes.

In addition to financing, the plan calls for an energy label for homes and apartments. It’s sort of like an Energy Star label, so renters and home buyers can figure out how efficient a building is.

The plan also calls for more trained workers to perform energy retrofits.

For The Environment Report, I’m Mark Brush.

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Red Tape Behind Green Living

  • For simple weatherizing - insulation, weather stripping, windows - the tax credits apply to 30% of the cost of materials, not the labor. (Photo courtesy of the National Renewable Energy Laboratory)

Tax credits for making your home
more energy efficient got a lot
of early buzz. The promise of up
to 1500-dollars back for insulation
and windows or efficient furnaces
led to a flurry of advertising.
Tamara Keith looks
into what might be stopping people
from taking advantage of the tax
credits:

Transcript

Tax credits for making your home
more energy efficient got a lot
of early buzz. The promise of up
to 1500-dollars back for insulation
and windows or efficient furnaces
led to a flurry of advertising.
Tamara Keith looks
into what might be stopping people
from taking advantage of the tax
credits:

My husband and I recently bought an older house that could no doubt use
some weatherizing. So, I called up Reuven Walder at EcoBeco.

(sound of door opening, people saying hello)

He’s a home energy auditor. He identifies ways to make a home more
efficient.

“I joke around, I consider myself an energy efficiency social worker.”

And he’s been getting a lot of calls lately from people like me – looking
to take advantage of the tax credits.

“Let’s look around the house and you can point out some things that are
of concern to you.”

Walder has all these cool tools, like an infrared camera that can see where
the insulation isn’t doing its job. He finds plenty of trouble spots,
including one in the attic.

“And if you put your hand in this little pocket here you can feel nice
cool air.”

That’s not supposed to happen.

“I’ll be honest with you. When I find these kinds of things, it makes my
day, because we get to fix them.”

Well, not all the time. Walder says only about a third of the homeowners he
works with actually follow through on his recommendations.

“I have talked to numerous homeowners and their primary reason for not
doing it is money.”

He says the tax credits are a great shot in the arm, but, for many people,
it’s just not enough. Part of the problem is, for simple weatherizing –
insulation, weather stripping, windows – the tax credits apply to 30% of
the cost of materials, not the labor. And labor is actually the most
expensive part.

“Our economy is just so slow right now that people are just hesitant to
spend any amount of money because, regardless of the incentive, they’re
still going to have to spend a lot of money to make the improvement. It’s
not going to cover a significant portion of the cost.”

At this point, federal officials don’t know how many people have been
inspired by the stimulus package to do work on their homes. They won’t know
until everyone files their taxes in April.

“It’s definitely driving additional business.”

Matt Golden is president of Efficiency First – the national association for
the home performance retrofitting industry. But he isn’t totally sold on
the way the stimulus package is distributing the tax credits.

“The biggest incentives are for the most expensive fanciest equipment and
as you move towards the most cost effective stuff, you get much smaller,
incremental incentives.”

So, there’s big money for solar panels and geothermal heating systems. And
if you want to put in a tank-less hot water heater or a super efficient
furnace, here labor costs can be counted towards tax credits. Golden says
the smallest credits go to insulation and other simple steps.

“It’s actually kind of an impediment to the type of retrofitting projects
that have the biggest return on investment, bang for the buck and create
the most jobs.”

In my house, Walder estimates we need almost $6,000 worth of work. But,
because not all of it qualifies, I’ll only get $600 of it back from the
government – but we won’t see the money until tax season.

I’ll admit – it’s a lot more money with a lot less of a tax benefit than I
was expecting, and that’s probably what’s giving some homeowners pause.

For The Environment Report, I’m Tamara Keith.

Related Links

Stimulus Funds for Home Weatherization

  • A fan is sized to the front door so they can de-pressurize the house. This helps them see where air is escaping - and where insulation may be needed. (Photo by Julie Grant)

The government stimulus package
included billions of new dollars
for home weatherization programs.
The money is used to help low income
folks make their homes more energy
efficient. But some critics say
it’s not a good use of federal tax
dollars. Julie Grant reports:

Transcript

The government stimulus package included billions of new dollars for home weatherization programs. The money is used to help low income folks make their homes more energy efficient. But some critics say it’s not a good use of federal tax dollars. Julie Grant reports:

Chris Graham spends his days checking the energy efficiency of people’s homes.

Today he’s at Sandra Richards’ in Mogodore, Ohio.

Graham: “Hi Sandra.”

Sandra: “How are ya?”

Graham: “Wonderful. And you?”

Sandra: “Better.”

Graham: “Better?”

Sandra is 55. Her house is clean and neat. She was a nurse for many years, but today she’s sitting on the couch, watching TV. A broken foot spiraled into problems with her knee and hip – and other health problems.

“I mean I’ve just had so many things go on in such a little time. I was working 12 hour days, and one month later, I couldn’t work at all.”

Sandra qualified for the home weatherization program because she doesn’t have much in the way of income anymore.

Chris Graham says he’s been to a lot of homes where people are far worse off. They can’t get around, they don’t have money coming in, and their houses get cold in the winter.

Graham heads to the basement.

“The first thing we have to make sure is that the heating unit is not in terrible, dilapidated shape. And that it does not have more than a specified amount of carbon monoxide in the flu gasses.”

He turns on the furnace and sticks a probe into the flu pipe.

(sound of a tester)

Grant: “Looks like a receipt came out.”

Graham: “It kind of is. It tells you exactly what was going on there.”

Looks like Sandra’s furnace is running pretty well. 81% efficiency.

But Graham sees evidence of carbon monoxide on her old water heater.

“It’s 17 years old and it just plain needs changed. It’s got burnt, scorch all over it. So we’re gonna do that.”

That could cost more than $1,000.

But the home weatherization program can afford it these days. The stimulus packaged included $5-billion for this kind of work – compared with less than a quarter of a billion dollars last year. The new money has to be spent within two years.

And some people think that’s just too much money – too fast. Leslie Paige is with a taxpayer watchdog group called Citizens Against Government Waste.

“There’s always a lot of waste in government spending anyway, but when you spend it quickly and there’s very little oversight, that’s almost a prescription for seeing a lot of that money go for waste and fraud and losing to abuse.”

That kind of criticism is shocking to David Shea. He’s director the Community Action Council of Portage County, Ohio – the organization that hires inspector Chris Graham.
The weatherization program has been around since 1976 and Shea says they have to report their spending in about a hundred different ways.

“It’s not like money is being thrown out at agencies and just say, ‘oh go out and do it.’ There are volumes and volumes of written regulations that have been around for a long time. We do so much sophisticated reporting; they know how every dollar is being spent. Always. Always.”

Shea’s office used to have one crew out weatherizing homes around the county. Since the stimulus money’s come in, he’s hired a second crew. But there are so many people wanting their services, the waiting list is still years long.

(sound of a fan)

Back at Sandra Richards’ house, inspector Chris Graham has sized a big fan into the front door. He’s depressurizing the house – so he can see where air is escaping. Graham says she’s going to need some doors sealed and new insulation in the attic.

He says Sandra will feel more comfortable, so she won’t need to turn up the heat in the winter. That means she’ll save on energy costs, and will use less fossil fuels.

That’s the whole idea of this project – to use less energy in the future, and to help millions of families that couldn’t afford to improve things on their own.

For The Environment Report, I’m Julie Grant.

Related Links

Saving Energy: Simple Changes, Big Impact

  • Jack Brown is an Outreach Technician for Community Resource Project, helping to spread the word about weatherization services that families may be eligible for. In his 23 years at Community Resource, Brown says he’s assessed about 5,000 homes. (Photo by Amy Standen)

Solar panels and wind turbines get most of the buzz, but it’s far easier and cheaper to save energy than it is to make more of it. Now, President Obama’s economic stimulus package
is pouring billions into energy-efficiency programs. As Amy Standen reports, it’s shining a new spotlight on some of the simpler ways we can all reduce our energy use:

Transcript

Solar panels and wind turbines get most of the buzz, but it’s far easier and cheaper to save
energy than it is to make more of it. Now, President Obama’s economic stimulus package
is pouring billions into energy-efficiency programs. As Amy Standen reports, it’s shining
a new spotlight on some of the simpler ways we can all reduce our energy use:

Sure, I’ve thought about buying solar panels to put on my roof. There’s a perfect spot on
the south-facing slope – maybe we could power the whole house. But there are some
easier things we could do first – like insulate the attic or weather strip the doors. And yet,
somehow I never quite get around to them.

Why is that? Well James Sweeney directs the Precourt Energy Efficiency Center at
Stanford, and he has a theory.

“Energy efficiency turns out to have low salience to people.”

Which is to say, it’s maybe… a little bit boring?

“It’s very boring.”

But if your eyes start to glaze over at the mere mention of the word “efficiency,” consider
the compact fluorescent light bulb.

“The easiest thing everyone can do is change their lighting.”

If everyone in the U.S. traded in their old incandescent light bulbs for compact
fluorescents, we’d cut electricity use by about 2%.

Which, maybe, doesn’t sound so impressive – until you consider the fact that all the solar
and all the wind power combined in the entire country amounts to point .4% of our total
energy use. That’s 0.4.

“The cleanest energy is the energy you don’t need in the first place.”

That fact has not been lost on the Obama White House. The American Recovery and
Reinvestment Act is pouring approximately 20 billion dollars into efficiency projects.

Five billion of that will fund what’s called the Weatherization Assistance Program, which
helps low-income families weatherproof their homes. To qualify, a family of four must
make less than $44 thousand dollars a year.

(sound of someone giving directions – “Take 25 and go to El Paso Road”)

That stimulus cash funds local non-profits like Community Resource Project, in
Sacramento, California. Since January, Community Resource’s budget has tripled, from
1.3 to 4.5 million dollars a year. They’re buying new trucks, hiring at all levels, and
going to more and more homes.

(sound of knocking at a door)

Like this one – a five-bedroom stucco ranch house in a newer suburban development
outside of Sacramento.

(sound of door opening)

“Hello, how are you doing?”

At the door is TinaMarie Dunn, a family friend who’s showing us around today. She
gives a squeeze to two-year old Anaya, one of ten children who live here.

“Look Anaya, say cheese!” (Anaya: Cheese!)

Dunn says utility bills here can hit $500 dollars a month. She says the house just doesn’t
work right.

“When the heat is on, downstairs is hot, downstairs is cold. When the air’s on, the
upstairs is cold, the downstairs is hot.”

Community Resource’s Dana Gonzalez walks into the kitchen, and pauses to take a look
around.

Standen: “So when you walked in, what was the first thing you saw?”

Gonzalez: “It’s funny. You see this door shoe and you see, actually the bottom rubber
is gone.”

He points to a two-inch gap under the front door.

“And if you put your hand here, you can actually feel the air. Anytime they kick on
their heat and cool, that’s definitely affecting their house, and in the long run, affects
their bill.”

Community Resource will spend about $1500 here, aiming to cut monthly utility bills by
as much as 20%.

They’ll weather strip the doors, patch up holes in the walls, install CFL bulbs. We’re not
talking solar panels or radiant heating – just small, mostly inexpensive adjustments that
cumulatively, have a huge impact.

The White House says these efficiency projects will create thousands of jobs, but there’s
also concern that the huge cash infusion is a recipe for fraud and mismanagement.

Department of Energy officials have called for extra vigilance in the disbursement of
weatherization cash. But, they say, the benefits, both environmental and economic, far
outweigh the risks.

For The Environment Report, I’m Amy Standen.

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A New Clean Energy Corps?

Labor and energy groups say they want the federal government to create a Clean Energy Corps. The say the Corps would retro-fit and upgrade old buildings and, as Chuck Quirmbach reports, create a lot of jobs in the process:

Transcript

Labor and energy groups say they want the federal government to create a Clean Energy Corps. The say the Corps would retro-fit and upgrade old buildings and, as Chuck Quirmbach reports, create a lot of jobs in the process:

Some cities and states have programs that work on making older buildings more energy efficient.

Now, progressive think tanks have joined unions and alternative energy groups to ask for a national program.

Bracken Hendricks is with the Center for American Progress. He says it’s critical for the federal government to help pay to make older structures more efficient.

“For a long time, we’ve made great inroads on improving the energy efficiency and the performance of new buildings with tools like green building standards. But we really haven’t had a way to go and systematically block by block retrofit and weatherize homes.”

Hendricks says the clean energy corps would help the umemployed find work in the building and construction trades.

The coalition backing the corps says the money for the program could come from the stimulus package or other upcoming legislation.

For The Environment Report, I’m Chuck Quirmbach.

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African Americans and Affordable Energy

  • Wendell Rice points to the new CFLs in Stephanie Bradford’s home (Photo by Jori Lewis)

The cost of heating your home is going
up this winter. It went up last year. It will
go up next year. For some people it’s an
inconvenience. For others it’s a real problem.
Jori Lewis reports Black communities are hit
especially hard:

Transcript

The cost of heating your home is going
up this winter. It went up last year. It will
go up next year. For some people it’s an
inconvenience. For others it’s a real problem.
Jori Lewis reports Black communities are hit
especially hard:

Like a lot of Americans, Darlene Manswell has been struggling. Her Brooklyn, home is
in foreclosure. And she’s been behind on her electricity bills – almost $3,000 behind.

And so the power company, they came a-knockin.’

“They basically came to shut it off and I’m, you know, just bargaining with people.
They wanted the full amount. I didn’t have the full amount. I gave them whatever I
could afford to give them. And they said that’s not, we’re still going to shut it off.”

The price of energy has become a huge burden for many people, but Black communities,
like Darlene Manswell’s, are especially vulnerable.

Andrew Hoerner researches energy use in minority communities for the sustainability
think tank Redefining Progress and the Environmental Justice and Climate Change
Initiative.

Hoerner says Black people pay more of their incomes on home energy and heating
expenses than other people. He says there are a couple of reasons why. First, Black
people, on average, have lower incomes.

“Energy is like food or shelter. It’s a necessity. And people at lower incomes spend a
higher percentage of their income on necessities.”

But, Hoerner also found that Black people at middle and higher income levels still spend
more of their incomes on energy than non-Blacks in all but the highest income brackets.

“I think we’re safe in saying that it has to do with lower quality housing stock for
African American communities.”

It all goes back to a history of residential segregation has left many Black people in older
areas with less well-maintained houses. Those buildings might have loose windows or
poor insulation. And that means they are leaking heat and wasting energy.

Hoener also notes Black people are more likely to be renters instead of owners. And
renters have less control over repairs or improvements.

All of these factors have forced Black communities to find ways to adjust.

Stephanie Bradford certainly wants to. She owns a home in a traditionally Black
neighborhood of Brooklyn.

“These times are serious. So whatever way you have to do to save money, you have
to save it. This winter was horrible. It was a matter of either heating the house or
eating. And it was really a choice.”

She made it through okay. But she knows she has to do better this winter. And lucky for
her, she found a way.

Bradford qualified for low–income weatherization assistance. She’s been able to install
new windows, add insulation and put in new energy-efficient compact fluorescent light
bulbs.

Wendell Rice is the director of the weatherization program. He says making these
changes can help people like Stephanie Bradford weather the economic the downturn.

“She’s doing the right thing, she’s not dodging the bullet by getting the house
weatherized. And if we do what we’re supposed to do here, her bills got to be
cheaper.”

Rice says he wishes he could help everyone. But these programs have a waiting list a
year or two long.

But Rice notes that if he could help more people lower their energy bills, the money left
over could help them save their homes from the bank and their stuff from the repo man
and just go a long way in healing this systemic bias.

For The Environment Report, this is Jori Lewis.

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