BTEC News

March 3, 2010

Draft Version of Home Star Program Released
Energy efficiency and home owner rebate program includes biomass heating appliances

On March 3, the U.S. Senate released a draft version of Home Star, a legislative proposal designed to create jobs by providing short-term incentives for residential energy efficiency improvements. In this proposal is a rebate covering 50% of the cost (up to $1,000) of the purchase and installation of a highly-efficient biomass stove or boiler. 

You can view the full text of the discussion draft of the bill here: http://bit.ly/b66X5W

BTEC continues to be involved in the development of this program and we will inform you of any updates. Special thanks go out to John Ackerly and the Alliance for Green Heat, a BTEC member, for their efforts on this program.

Program Details
(Courtesy of John Ackerly, Executive Director of Alliance for Green Heat)

"Important: This is a summary of key provisions in the Home Star program as released by the US Senate Committee on Energy and Natural Resources.  Language may change before it is passed into law.  The DOE will issue final clarification on these issues. This is only our interpretation of the bill based on discussions with members of the Technical Committee that helped to draft it.

Rebate
The rebate is for 50% of purchase and installation costs up to $1,000.  Sec. 2104(d)(1).  The rebate will be immediate if its from an approved store (an "aggregator').  
 
Start date 
Once the bill is passed into law, which could happen in March, the DOE is supposed to finalize all details within 30 days.  Potentially, homes could start participating in May. Sec. 2102 (e).
 
Efficiency and emissions requirements 
Wood and pellet stoves need to be 75% efficient and meet the Washington state standards of emitting no more than 4.5 grams of particulates per hour.  Boilers must be 80% efficient. Sec 2104(b)(8)(A)(v)(II).
 
Third party testing 
Unlike the federal tax credit, which allowed manufactures to certify that their products are 75% efficient, this program requires third party certification. Sec 2104(b)(8)(A)(v). We believe that this will mean that the appliances has been tested by one of the five EPA accredited wood stove testing facilities in North America, or a similar institution based in Europe. Its is expected that the existing data that testing facilities have from emissions testing can be used to calculate efficiency, so that stoves do not need to be tested again.  The testing facilities will have to submit this data to DOE or whoever is designated by DOE to determine what appliances meet the threshold. For a list of accredited facilities in North America click here. 
 
75% of home's heating needs 
The stove or boiler must be able to meet 75% of the heating demands of a home.  For stoves, this means that the program will favor larger stoves - and smaller homes.  Boilers would normally be sized to meet 100% of a home's heating needs.  From what we understand, the "qualified contractor" makes that determination.  This presumable means 75% of average annual heating needs, not the ability to heat 75% at any particular time. 
  
Primary heating system
There are apparently a few errors in this version of the bill that the Senate Committee released and this is one of them.  Language that says the new system is the primary heating system will likely be removed. Sec 2104(b)(8)(A)(v)(I).

Heat distribution system 
The stove or boiler must have "a distribution system (such as ducts of vents) that allows heat to reach all or most parts of the home." Sec 2104(b)(8)(A)(v)(I)(bb) Since the stove or boiler must be able to meet 75% of the heating demands of a home, it is expected that this means that unless the home is very small and the stove can heat all or most of the home from where it is placed, some distribution system will be required.  If the upstairs is small, a simple vent in the ceiling of the room where the stove is located may suffice.  Or, in a smaller one-story house, door frame fans may suffice.  If the home already has a forced air furnace, the fan function using the existing ductwork to distribute warm air throughout the house may suffice.
 
Replacement requirement
To purchase a wood stove and receive the rebate, you have to replace an existing wood stove.  However, there is no replacement requirement if you are buying a pellet stove, or a pellet or wood boiler or furnace.  The existing stove does not have to be a pre-1988 EPA certified stove.   
 
Installation 
The stove or boiler must be installed by a "qualified contractor" who meets certain standards included being licensed, bonded and will warranty their work is free of defects. Sec. 2101(17).
 
Principal residence 
The program only covers existing principal residences that are in the US.  New construction is not covered.
 
Combining the rebate and federal 30% tax credit 
The federal 30% tax credit, up to $1,500, also applies through the end of 2010.  (It could be extended beyond then.) Thus, if a stove and installation came to $3,500, the rebate would be $1,000 on the spot, and you would get a credit for 30% of the $2,500 that you are out-of-pocket, which would be $750.  Your final cost would be $1,750, exactly half of the original price.