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sr-011910-13j13-J January 19, 2010 Council Meeting: January 19, 2010 Santa Monica, California CITY CLERK'S OFFICE -MEMORANDUM To: City Council From: Councilmembers Shriver and McKeown Date:. January 19, 2010 13-J: Request of Councilmembers Shriver and McKeown that Council authorize staff to prepare for timely Santa Monica participation in the Obama administration's anticipated federal home energy conservation subsidy program by preparing an administrative plan and returning to Council with an ordinance or other instrument to create any required agency or district. 13-J January 19, 2010 Why is Obama at Home Depot? To get cash for caulkers going. /The Christian Science ~ HItISTIA ~ SCIENCE Page ] of 2 President Obama's stop at Home Depot shows that if'cash for caulkers' is going to get off the ground, the government has to get at ]east three groups to buy in. President Obama speaks at a meeting on the economic impact of energy-saving home retrofits with labor, manufacturing, and smelt business leaders at a Home Depot store in Alexandria, Va.. Tha president's cash for caulkers' program needs wide buy-in in order to be successful. Ron Sachs/UPI ay David Grant Correspondent /December 15, 2009 President Obama's stop at a Home Depot in northern Virginia on Tuesday was another step toward building the wide-ranging coalition he needs to build if ha wants to realize his plans fora "green"jobs push. The Home Depot stop was in conjunction with a meeting between labor, manufacturing and small-business leaders the same day, 4Vhy It Matters As part of the Presitlenrs broader jobs inftlative, the green retroftting program aimsrojump-startalargaly new American industry. With 1.6 million construction industry employees let go since 2006, Americans vrith related jobs could see a boom in hiring and longterm empinymerrt prospects. His program, which would be formally dubbed Homestar but called in some circles "cash for caulkers," is aimed at spurring homeowners to retrofit them homes with energy-efficient technologies. The White House aims to offer $23 billion in incentives for everything from weatherization to new doors and windows. These enticements will only work, many analysts believe. if the package can appeal to contractors and retailers as well as homeowners. External Links First, retailers need to have some incentive to stock energy-efficient appliances Presldenrs economic Atlvisors bnemo on the Homestar above and beyond current demand, advocates say, in order to make sure grogram (The White House) consumers have solutions close at hand. htfn•//wunN rsrnnnitnr r•nmRyiTnnPV/7(1flQ/1?3 SJ\EJho_;~_/l}.o..,o_.~t_I7....,o Tlo....t T.. ..,.~ ,.,... 1 /r n/~ln~n Why is Obaa at ~-I~e ecat? To gel gash f®r caulkers g®inga Why is Obama at Home Depot? To get cash for caulkers going. /The Christian Science ... Page 2 of 2 Sewnd, homeowners need to have a sweetener -such as government paying up to half the cost - to buy the appliances, which are often more expensive than conventional models. If customers can't make that first, straight-foruvard step toward energy eificiency, they won't move on to larger projects, says Larry Zarker, CEO of the Building Performance institute,. "You may not always be able to buy {a comprehensive retrofitJ; you may just start with some basics, but what contractors can give is a road map," says Mr. Zarker, whose group accredits green contractors. "Then the homeowner can say'I'll~come back and pick up the second and third and fourth things later an.' But at least they gat the road map." Third, contractors need to be accredited. Without strong accreditation standards, the program could fizzle if consumers don't see first hand the benefits of refrofstting their homes, supporters say. ~ _ - "We-can't afford many stories of people who paid for work and didn't save any money," says Kevin Pranis, research director for the labor coalition Ghange to Win's Green Economy Projedt. "We think the top priority is that you're using an entirely certified workforce, so that everyone who goes in a home knows what they are doing and you know they know what they are doing because they go through a test." In the long run, the program will rely on workertraining programs, innovative financing-techniques and, the administration hopes, the success of the program's frst stages to carry it through. The outcome could make a difference in America's dependence on fossil fuels and its correlating carbon output, to say nothing of generating new jobs. Since 2006, some 1.6 million construction industry workers have been let go, the Bureau of Labor Statistics estimates. They would be prime candidates for retraining and rehiring under a "cash for caulkers" program. Whether the program gets to this point will be decided in part by how widely the program is supported ©The Christian Science Monitor, All Rights Reserved. Terms under which this service is provided to you. Privacy Po3icy i_.,.._.u________~__..____..._ix,r.._.,_. r~nnnn ni cis~n._.:..rZt.-._.,....+rT,.._.... T-.-.... 'r`,. ~.-„+,.,.., t/i ni~mn What An vnu think of the Cash for Caulkers groaram? Let us know on Twitter. Cash for Caulkers could mean $12K per home -Yahoo! Finance A.~3c~t~!® FJrea~c~ Cash for Caulkers could mean $72ft per home Page 1 of 2 "Print Back to story nao>etm Dy Steve Hargrazves, CP!NMOney cam staff »nler, On Tueseay December 8, 2GD4. 6:24 pm EST President 6bama proposed a new program Tuesday that would reimburse homeowners for energy-efficient appliances and insulation, part of a broader pWn to stimulate the economy. The administration didn't provide immediate details, but said it would work with Congress on craVirg legislation. Steve Nadel, director at the American Council for an Energy-EiFlCient Economy, who's helping wdte the bill, said a homeowme could receive up ro $'12;000 in rebates. The proposal is part of the President's larger spending plan, which also includes nroney forsmali businesses, renewable energy manufacturing, and imrzstructure. We know energy efficiency "creates jobs, saves money for families, and reduces the pollution that threatens our environment," Obama said,'Mhth additional resources, fn areas tike advanced manufacturing of wind Mbines and solar panels, for instance, we can help lum good ideas into good privatesector jobs." The Rrogmm contains two parts: money for fiemeowners for effiaency projects, and money for companies in the renewable energy and etficienuy space. The plan will likely create anew programwhere private conimctors conduct home energy audits, buy the necessary gear and install it, according to a staffer on the Senate Energy Committee and Natlet at the Amartpan Council for an Energy-Efficient Economy. Big-ticket items like air condiGOners, heating systems, washing machines, refrigerators, windows and insulation would likey be covered, Nadel said. Consumers might be eligible fora 50°H rebate on both the price of the equipment and the insia0ation, up to $12,000, sold Nadel. So far, there is no income restriction on who is eligible, Thatwoultl mean a household could spend as much as $24,D00 on upgrades and get haR back. Homes that take full advantage of the program cook! see their energy bills drop as much as 20%, fie said. The program is expected to cast in the $16 billion range. It's not cleartiow the home effuency plan would be administered - the govemmeni may Issue rebates to consumers directly, homeowners might get a taz credit, or the pmgram could be run via state agencies. - - V consumers have to spend a lot of money up front to get the credh, it covW throw a wrench in the works, David Kreutzer, an energy analyst at the Heritage Foundation, told CNN. "This will not be something Nat's attractive to people who are Having trouble already making their budget payments month to march or weak to week," he said. To keep wnsumers from having to spend thpusands of dollars before gatUng reimbursed, Nadel said, one idea rs to have contractors or big box retailers pay part of the cost up from. _ Fmutl issues could also come up, Kreutze[said. .. "Any progmm that is going to mn through a third parry and Is going to distribute billions of dollars needs to have lots of checks and balances to make sure there's notabuse,"he said. .- , Natlet noted that as a way to guard against feud, Contactors would have to be certified to participate. Energy comparry boast Ohama's now spending plan also calls for renewable energy companies to get additional support. That could come in the form of loan guarantees -basically, nwney the government uses to secure loans for stadups. In the original stimulus bill passed earlier this year, $6 bllfron was earmarked for such loan guarantees. But then lawmakers took away $2 billion to fund Cash far Clunkers -the popular program that paid peopieto tom In their old cars, The $4 billion from the original bill has footled about $40 billion In loans, said the staffer on Vie Senate Energy CommiVee. Meanwhile, firms are hoping for another $4 billion in loan guarantees, since they have another $40 billion worth of projects that need funding. A bill on energy efficency raimbursementa already has supporters in the Senate. "Not only will [such IeBfsiattonJ increase our energy security and transform our energy Infrastructure to a modern, clean and efficient one," Senate Energy Gommlttee Chairmen Jetf eingaman, ~•N.M., wrote In a recent op-ed columh in the Hill, a Capitol Hiil newspaper. "But h also will position the United States to lead in the development of clean energy technologies." h+r.,•//f,,,o,,..o..oL....,..~,m/„o.,.o/!'o~1.fr.!'~.,7Lo»n ....,,i.1 .«e..«...,...-. icon O~~~tGC L+....l ice..: trt n/nntn Cash for Caulkers could mean $12K per home -Yahoo! Finance Page 2 of 2 Capyrlgnt iv' 2009 Cable News Netvmrk antl Tima Inc, and their afiiiated companies. All Rights Reservetl. CapydaM 42019 Yahap!AJi rtgh6 reservatl Pnvary Polley-Ayy!t 9u(Ads•Termapf Service-GppyngM Pp6py-Reppet,P[POlemg Quotes antl other imomsiion supplied by intlependent proNders identified on Ne Yatroo! Finarue partner page. Quotas ara updated automatlcapy, but wig ba turtretl Off after 25 mmNes aF inactivity. Wota data delayetl 75 minutes far Nastlaq, PlYSE antl Amex. Reat-Time cMtinaous screaming quotes are avai!aWe Nrough our premium service. You may tum streaming quotas on oroR. Ag IrdormaUon providetl "as is" far irtbnnetional purposes only, not intentletl for tratling purposes or atlvirs. Yahoo! Is riot an invesMerrt adv"set antl does not proNtle,. endorse or review any krtormatlon Ci data containetl herein. hft..•//fin~nnu ooi...n n..... /.,o.:,~/('....L. F .• li.,..ll..,«...,.,.,lA ...... _ ..__.... irnn on~~c<t.... u___~ . r. <rnn.n