HOME STAR Coalition Addresses ACCA Concerns
In a letter sent to Senate leaders this week, the HOME STAR Coalition (www.homestarcoalition.org) responded to specific concerns expressed by the Air Conditioning Contractors of America (ACCA) regarding the structure of the proposed HOME STAR incentive program.
Regarding the ACCA’s recommendation that rebates be sent to consumers rather than to retrofit contractors who perform the work, the HOME STAR Coalition said:
We believe there is consensus among contractors of all types that rebates to contractors who then give an instant rebate to consumers is the most efficient and effective way to facilitate participation by consumers in the Home Star program. Contractors and their trade associations representing tens of thousands of contractors support the Coalition’s position on this issue. The bill responds to cash flow concerns of contractors, by including a mandate that contractors receive their funds within 30 days which is traditional cash flow timing. Thousands of contractors across the country participate in existing utility and state programs where this is standard without a barrier to participation.
Sending the rebate to homeowners will result in two major problems:
- First, this will increase bureaucratic delays and red tape given the lack of familiarity that each consumer will bring to the rebate process and eligibility standards. This will likely result in the filing of improper forms, leading to the return and re-filing of documents.
- Second, the volume of rebates resulting from having each consumer submit a form – as opposed to an aggregated system – will cause delays that could cripple the program. There is no basis for a change from contractor rebates to homeowner rebates.
The ACCA also has objected to a requirement that contractors participating in the GOLD STAR incentive path must be accredited by the Building Performance Institute (BPI) or other accreditation body approved by the Department of Energy. The HOME STAR Coalition asserted that the proposed legislation already addresses the ACCAs concerns about accreditation:
First, the majority of the funding under the program is for SILVER STAR which is designed for very low barrier to entry participation by all legitimate contractors. This should provide an easy to access, short- term economic impact. SILVER STAR projects do not require accredited contractors. However, we continue to support an accreditation requirement for GOLD STAR projects, because the nature of the program design is based on a whole house treatment and savings based incentives that require skills and responsibilities to avoid mistakes or improper use of the program.
While we recognize the benefits of having a wide range of certification programs for the HOME STAR program, we are aware of only BPI accreditation as nationally available. By listing BPI in the bill, contractors have an immediate path to qualification; however, we strongly support language in the bill that provides for an easy access to other accreditation approaches to be approved by DOE. GOLD STAR is not expected to be spent out quickly but rather last over the full two years, thus allowing for entry of new contractors to participate fully.
Most importantly, accreditation, including a set of certified employees with appropriate skills, is the only logical way sponsors of public or rate-payer subsidies have to assure a level of competence and responsibility by contractors as they provide service for consumers. We do not believe ACCA’s voluntary skills model, although highly respected, provides enough protection to the consumer, the taxpayer, or rate-payer.
The letter concludes by urging the Senate “to reject modifications that could weaken or kill this legislation, which can have tremendous benefits for HVAC contractors, for getting workers in the industry off unemployment and lower energy costs for consumers.”
Copyright © 2009 Efficiency First ·
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we strongly agree with the position of efficiency first
bpi accreditation i a minimum standard for safety and competence
sam zimmerman
president
sunny day homes inc
The interesting thing that i have taken out of this is that their are NO WAY, that BPI ACCREDITED AUDITORS can get the amount of required jobs completed in time for this program to them let each homeowner go out to get a contractor to do the work and complete by the end of program.
i had a person who has CO accredation from 3 major sources with over 20 years in the HVAC field, that could not pass the CO accredation, it is not a true test of CO, it takes into account many other area’s of CO.
If you as a auditor can wait for your money that is great, 50% of $300.00 to $500.00 and some as low as $49.00 that is great.
But understand that as a HVAC, PLUNBING, and ELECTRICAL contractor our ability is to do 100 jobs a month at $5,000.00 to $10,000.00 is a lot of money. An extra $250,00 a month in you AR is not GOOD BUSINESS.
Each person can finance the complete jobs, of which they will have to most of the time, then when they get the money from the Goverment, they can pay off the difference.
Your one sided look at this required me to send this and stand behind ACCA.
John Sr.
BPI accreditation is by far the best method to get a “whole house” analysis. ACCA is likely to kill the hole bill if they continue to bog down the process. Leave HOME STAR alone so that Americans can get the retrofits that they need and contractors can get to work.
Steve Waldron Retrogreen Inc.
We are a member of ACCA and their claims that Home Star won’t work for contractors don’t reflect our own. We are certain that it will work and are prepared to stand up and deliver. We have heard from many other contractors, including other ACCA members whose views match our own—enthusiastically supporting Home Star in its current form.
ACCA has focuses on two provisions, the rebate mechanism and the need for accreditation. ACCA claims that a rebate to contractors is unworkable because contractors won’t be willing or able to cover the cost of the rebate. They also claim that accrediting companies isn’t necessary and it will limit the penetration of Home Star to two states. ACCA is wrong on both counts.
Regarding the rebate, a direct to consumer rebate is problematic on two fronts. First, it is administratively difficult and expensive, and would require the Department of Energy to be a massive infrastructure for a short term initiative. This would be an unnecessary use of taxpayer dollars given the ready alternative proposed in the bill—and House and Senate staff understand this. Second, in today’s strained economy and very tight credit markets, home owners have difficulty paying the full cost of the improvements up front. Being able to reduce the cost immediately at the time of sale will allow many more home owners to participate and provide a greater benefit for the contracting industry. While we are as concerned about cash flow as any business, it’s important to keep the rebates in perspective. We anticipate the rebate accounting for no more than 20-25% of the cost of the typical qualifying HVAC project. The legislation calls for a 30-day turnaround from submission of documentation to receipt of funds. Covering this relatively small amount for 30 days fits well within the means of most contractors, particularly those who are able to deliver the work at the required level of quality. John, we install the work, we can do this, and we know Home Star will be GREAT from business.
Regarding the accreditation, again, both House and Senate members and staff have repeatedly pointed to this as necessary to help ensure a high level of quality and results and to best protect the taxpayers’ resources being expended. Voluntary certification approaches have been in place for decades and they are not sufficient. Company level accreditation or compliance is needed and we whole.
ACCA’s point about BPI Accredited contractors being predominant in two states actually proves the counter to their argument. In states with programs and incentives lower than those anticipated under Home Star, contractors have shown that they are willing and able to get accredited. The same is true for the entire country. GreenHomes is not accredited in California. However, we meet all the requirements and would immediately become accredited on passage of Home Star. The same applies to other contractors across the country. And thousands of contractors, including HVAC, insulation, and windows installers have expressed their support for Home Star in its current form.
It’s regrettable that ACCA is raising issues that are contrary to most contractors who would participate in Home Star and contrary to even much of its own membership. Home Star deserves the support of the entire Senate, and it should be brought to the floor and passed immediately.
Mike Rogers
GreenHomes America