The Dernogalizer

November 20, 2009

Cash for Caulkers on the Table?

Filed under: Energy/Climate,National Politics — Matt Dernoga @ 11:29 pm
Tags: , ,

The NY Times had an article a couple of days ago about a now job creating measure that is receiving some attention from the Obama Administration.  It’s called “Cash for Caulkers” which is fancy for home weatherization.  Let’s hope it ends up as a policy.  Could be the next stimulus.

So White House officials are looking at creating a new version of cash for clunkers— this time for home weatherization.

John Doerr, the Silicon Valley venture capitalist, and former President Bill Clinton have separately suggested versions of the idea to the White House. Mr. Doerr calls his proposal, which would give households money to pay for weatherization projects, “cash for caulkers.” Rahm Emanuel, President Obama’s chief of staff, told me, “It’s one of the top things he’s looking at.”

“The idea has a lot to recommend it. The housing bust has idled contractors and construction workers, who could be put to work insulating homes and caulking air leaks. Many households, meanwhile, would save substantial money — not to mention help the climate — by weatherizing their homes, research by McKinsey & Company has shown. All in all, a cash-for-caulkers program seems like a promising part of the jobs program for 2010 that Mr. Obama has suggested he is planning.”

“Mr. Doerr, who sits on a board of outside economic advisers to Mr. Obama that is working on a formal cash-for-caulkers proposal, told me that his goal was to “keep it really simple so we can do it really fast.”

The Doerr plan would cost $23 billion over two years. Most of the money would go for incentive payments, generally $2,000 to $4,000, for weatherization projects. The homeowner would always have to pay at least 50 percent of the project’s total cost. About $3 billion would be set aside for retailers and contractors in the hope that they would promote the program, much as car dealerships promoted cash for clunkers. (Mr. Doerr says he owns no stake in any weatherization companies.)”

“And unlike many other climate-friendly policies, it would not cost money over the long term. Done right, cash for caulkers would be precisely the kind of stimulus that makes the most sense: spending money now to save money later.”


1 Comment »

  1. […] wrote a few weeks ago that a “Cash for Caulkers” program was being considered as part of a […]

    Pingback by New Cash for Caulkers Program Officially a Go! « The Dernogalizer — December 8, 2009 @ 11:56 pm | Reply

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