Federal rebate plan for appliances takes shape

State and federal officials are still working out details of a proposed "cash for appliances" program that would enable consumers to get rebates on purchases of more energy-efficient home appliances. The program might not take effect until late fall, but here's how it's shaping up:

-- States that want to participate must present a finalized plan by Oct. 15. That could be tricky, as differing states likely will propose varying rebate amounts and varying appliances to qualify for rebates. Some are already calling for the U.S. Department of Energy to adopt a national plan.

-- Assuming federal approval, states will receive varying portions of the $300 million. The distribution formula is $1 for every resident in a given state.

-- DOE expects about 10 percent to 25 percent of federal funding to the states will be spent on administrative costs.

-- DOE anticipates that "a vast majority of funding" will be awarded by Nov. 30.

-- DOE has not disclosed rebate amounts. The Washington, D.C.-based Association of Home Appliance Manufacturers believes rebates will range from $50 to $200.

-- New appliances must bear the Energy Star label.

-- DOE recommends states focus their programs on heating and cooling equipment, appliances and water heaters, "as these products offer the greatest energy-savings potential." Energy Star-qualified appliances include central and room air conditioners, heat pumps, boilers, furnaces, clothes washers, dishwashers, freezers, refrigerators and water heaters.

-- Transporting the old appliance to a store is not required. Many retailers haul away old appliances for little or no charge under terms of appliance-purchase deals. Utilities also have pickup-and-recycling plans. DOE is encouraging states to develop recycling plans in their proposals.

-- DOE expects state programs to offer federal rebates in addition to existing rebates on energy-efficient appliances.

(Distributed by Scripps Howard News Service, www.scrippsnews.com.)

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