The Air Conditioning Contractors of America (ACCA) has communicated its concern to the U.S. Senate about the home retrofit rebate legislation, popularly known as Home Star, which is under consideration. 

A version of Home Star passed the U.S. House in May. The legislation addressed some of ACCA's concerns. The companion Senate legislation has been stalled; however, ACCA has been meeting with officials and staffers on Capitol Hill, expressing the concern over the ability of the current legislation to create sustainable jobs and improve energy efficiency.

"We are certainly supportive of the goals of this legislation: to make American homes more energy efficient and provide much-needed jobs in the construction industry," said John Sedine, ACCA Chairman and president of Engineered Heating & Cooling in Michigan, as the association publicly released the text of a letter sent to the chairmen and ranking members of the Senate Finance Committee and Energy & Natural Resources Committee. 

"Unfortunately, certain provisions in this legislation make the achievement of these goals actually less likely," he added.

Floating loans

Specifically, the association is concerned with the structure of the rebate program in the Senate bill, which would require contractors to discount bills upfront and wait to receive payment from a rebate aggregator. 

"Requiring contractors to become bankers means that many small businesses — the small business that are the driving force of our fragile economic growth — will not be able to participate in this program at all, even though they may be very well qualified to do so, simply because they can't afford to take the financial risk," Sedine said.

In the House version of Home Star, a last-minute amendment attempted to address ACCA's concern. It required rebates be sent to the homeowners after sale. However, the Senate legislation, as written, would still require contractors to float loans on a customer’s behalf.

Selective job growth

ACCA is also concerned that one section of the legislation, known as "Gold Star," will turn what should be a "quick-hit" bill promoting jobs and energy efficiency for the entire country, into a jobs bill for just a few states. 

This part of the legislation offers larger rebates for work that enhances a home's entire energy performance, but requires that work be done by businesses "accredited" by a group called the Building Performance Institute (BPI).

In the association's letter to Senators Jeff Bingaman (D-N.M.), Max Baucus (D-Mont.), Lisa Murkowski (R-Alaska), and Charles Grassley (R-Iowa), ACCA President & CEO Paul Stalknecht expressed concerns that the accreditation requirement will limit the choice for homeowners who may want to take advantage of the Gold Star rebates. He said there are 29 states that do not have any contractors who could offer homeowners a pathway to Gold Star rebates, adding that 86% of all BPI accredited contractors are located in New York and New Jersey.

Read the full text of ACCA's letter to the Senate.