Jul 22 - The Sacramento Bee



A few hundred bucks for new, energy-efficient refrigerators, clothes washers and room air conditioners was not enough to send recession-pinched Californians rushing to appliance stores.

So the state is going to sweeten the offer.

When it meets next Wednesday, the California Energy Commission is expected to approve a major expansion of the state's Cash for Appliances program, adding energy-efficient dishwashers, freezers, water heaters and heating, ventilating and air conditioning (HVAC) systems.

Simply put, the state is looking for more people to take advantage of nearly $20.3 million in rebate funds remaining in the $31.7 million program that began April 22.

 "We're extending the program because we still have (millions) in available funds for consumers. We're adding additional products that we hope consumers will take advantage of," said Amy Morgan, spokeswoman for the Energy Commission, which is overseeing the program.

The expanded effort is being billed as California Cash for Appliances PLUS.

For three months, the commission has been processing rebates of $200 for qualifying refrigerators, $100 for clothes washers and up to $50 for room air conditioners.

Under the proposed expansion, rebates will include $50 for freezers, $100 for dishwashers, $300 to $750 for water heaters and $500 to $1,000 for HVAC systems.

Morgan speculated the slow economy has been a factor in the lack of response, and said state officials felt it was necessary to put more juice into the federally funded effort.

"Especially with adding HVAC systems to the program, we feel that this will be more enticing to consumers," Morgan said.

Kip Armstrong, manager of Home Depot on Truxel Road in Sacramento, agreed that something needed to be done. "I think the additions will help because (the program) hasn't really done that much," he said. "Not a lot of people are replacing those things that were on the (original) list."

The state has made various tweaks since launching the program in April.

In late May, the Energy Commission scrapped the original May 23 deadline and extended Cash for Appliances until the rebate money runs out. It also extended the time appliance buyers had to file their rebate applications from 30 days to 120 days.

In addition, the commission has continued to add models of energy-efficient appliances to its list. The count now stands at 273 clothes washers, 139 refrigerators and 314 room air conditioners.

Morgan said more appliances were added as some consumers expressed frustration that they could not find exactly what they wanted. She said there was a spike in rebate applications over the Fourth of July weekend, "but we think consumers will respond even more with more choices."

The sluggish demand is the opposite of what state officials expected when the program was launched. Concerned that demand would be overwhelming, they specifically designed California's version of Cash for Appliances to avoid the manic, land-rush problems experienced in other states.

Texas, for example, burned through its allotted $23 million within hours after launching its program in early April, angering many consumers who wanted rebates but were unable to reserve them online or by phone.

California, in contrast, requires consumers to submit applications for rebates by mail. The commission also initially limited its program to three basic, affordable appliances that it believed Golden State consumers most wanted.

Morgan said California will continue with mail-in rebates, because they allow the state to "document what consumers purchase." She noted that the typical rebate-processing time is six to eight weeks.

Morgan said 19 states have closed out their programs "but more than half of those remaining still have their programs running or are extending them."

Peter Schaub, a New York-based marketing and branding expert, characterized California's program expansion as "a smart move," and said the program should provide lasting benefits.

"I'm not sure what the hurry is when you have money in hand for consumers. If it takes months to get used up, so what? Consumers still get savings, and you have the bonus of thousands of more energy-efficient appliances in thousands of homes."

HOW TO OBTAIN A REBATE

Here's how to get a rebate under the state's expanded Cash for Appliances program:

-- Purchase a qualified high energy efficiency appliance, properly recycle the old appliance, and submit a complete application package by mail within 120 days of the new appliance purchase.

-- To date, the state estimates that more than $20 million in rebate money remains from the original $31.7 million in federal funding. A periodically updated tracker of remaining rebate funds can be viewed at www.cash4appliances.org.

-- The California Energy Commission has teamed with more than 125 retail/recycle partners to assist consumers with appliance purchases, recycling their old appliances and completing their rebate applications. A list of partners is available at www.cash4appliances.org/partners/list.html.

-- Recycle your old appliance with a California-certified recycler, a partner or a utility. Fill out a rebate form; obtain a signed recycling form from a certified recycler, partner or utility; obtain the UPC code or yellow Energy Guide sticker off the new appliance; obtain a copy of the receipt from the new purchase; and make a copy of your utility bill. Mail these items to a designated address to obtain a rebate. More recycling information can be viewed at www.cash4appliances.org/consumers/recycle.html.

-- To see a complete list of qualifying appliances or obtain more details, visit www.cash4appliances.org. Details also can be obtained by calling (888) 390-4034.

Source: California Energy Commission

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Call The Bee's Mark Glover, (916) 321-1184.

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