Aug 22 - The Columbus Dispatch, Ohio

Call it "Cash for Clunkers," the home-appliance edition.

Now that your gas-guzzler is off the road, the government is moving on to energy-wasting household appliances.

The government hopes to have a program up and running by the end of the year that would provide consumers rebates for buying Energy Star-qualified home appliances.

The program will differ from the clunker program in that each state will craft its own requirements and old appliances won't necessarily have to be traded in and junked.

As part of the Obama administration's American Recovery and Reinvestment Act, the government has set aside $300 million to fund state-run rebate programs. Ohio's share is $11 million.

The goal is to "help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy and create jobs," said U.S. Department of Energy Secretary Steven Chu, in a statement.

Each state will determine which appliances qualify for rebates and how large those rebates will be, said Energy Department spokeswoman Jen Stutsman.

"The focus is on these appliances because they tend to offer the greatest energy-saving potential in the home," she said.

The government has its eyes on boilers, central air conditioners, clothes washers, dishwashers, freezers, furnaces, heat pumps, refrigerators, room air-conditioners and water heaters.

"By providing rebates to consumers, we hope to reduce energy use across the country and stimulate local economies," Stutsman said.

Details of Ohio's programs are just now being developed.

The goal is to create a rebate large enough to encourage consumers to take part so that a large number of households will help boost the Ohio economy, said Steve Schoeny, the head of business development operations for the Ohio Department of Development, which would implement the plan.

"We have Whirlpool that employs over 10,000 Ohioans along with other suppliers and manufacturers here," he said. "So we think it could be great for Ohio's broader economy and not just for energy efficiency."

The rebates could range from $50 to $200, although the state hasn't determined the amounts yet, a development spokeswoman said.

However, unlike the government's Cash for Clunkers program, which required that traded-in cars be destroyed, Schoeny said consumers won't have to trade in their old appliances to get the rebate. However, some element of the program will encourage recycling.

The rebate program is similar to a program offered by AEP Ohio that pays consumers $25 to replace refrigerators with energy-efficient models. That program has recycled 2,388 units since May, AEP spokeswoman Shelly Haugh said.

Just as the Cash for Clunkers plan has been a boost to automakers, the appliance program is expected to put a charge in that industry.

"We're very hopeful," said Jill Notini, spokeswoman for the Association of Home Appliance Manufacturers.

She said sales are down by 15 percent this year over last and that the $300 million program would be a "great opportunity to spur consumer spending on efficient appliances and help meet the goal of increased efficiency in American homes."

"In addition to an initial rebate to help offset the cost of the purchase, consumers would see tremendous energy savings," Notini said. "Replacing an 8-year-old washing machine with a new Energy Star appliance could save 5,000 gallons of water a year and $78 in electric savings per year."

Locally, small business owner Jason Ruby thinks the rebates will provide an additional boost to his business. Ruby, who owns Water Heaters Plus, said his company already has seen sales rise because of an existing government rebate plan, which allows consumers installing energy-efficient water heaters to get as much as $1,500 in federal tax credits.

The Energy Department's spokeswoman said that depending on how the state structures its program, there's "nothing that prevents consumers from taking part in the state-level rebate and the federal tax credit as long as the appliance purchase meets the requirements for both programs."

Ruby thinks the additional rebate will continue to boost business.

"This year alone, we've probably made 30 tankless water heater sales that we probably would not have made without that program," he said. "It's been an incredible program that has given us a good shot in the arm.

"And with the new program offering a cash rebate, it'll likely be an even bigger draw."

tturner@dispatch.com

Next big thing?

--Could get $50-200 rebates for buying new appliances!

--Details sketchy, but sounds good ...

--Federal govt deal ... Ohio getting $11 mil

Eligible

( ... maybe here)

--Boilers

--Central A.C.

--Clothes washers

--Dishwashers

--Freezers

--Oil and gas furnaces

--H. pumps

--Fridges

--Room A.C.'s

--Water heaters

Can already get

--AEP offers $25 to buy Energy Star fridge

--$1,500 fed tax credit for buying good water heater

Who says?

U.S. Dept. of Energy; Ohio Dept. of Development

Rebates could range up to $200 for buying energy-efficient home appliances

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