The Great Texas Rebate and Energy Star Concerns

It's usually best to do the right thing for the sake of doing good. (Santa Claus thinks so, anyway.) When government, whether state, local or federal, wants to motivate citizens to do the right thing, they have a few methods at their disposal. Politicians can always appeal to the better angels of their constituents' nature, using political rhetoric to effect change. Taxes are also another great motivator and can be used as a deterrent, discouraging undesirable behavior. For example: so-called "sin taxes" that are applied to alcohol and other consumables to discourage their use. It works the other way, too. The government uses tax rebates to encourage people to do things that benefit society. One of those beneficial activities is purchasing home appliances that are energy efficient.

The Texas Comptroller calls it the "Texas Trade Up Appliance Rebate Program." The program, the first of its kind in the Lone Star State, is funded by the 23 million dollars in stimulus funds the state received from the United States Department of Energy. According to the rebate's web site, the program will get badly needed money flowing in Texas and increase Texas energy conservation.

Thanks to the unstoppable march of technology, the refrigerators being sold today are far more efficient than the old icebox currently in your kitchen. Large items, such as refrigerators and washing machines, are particularly attractive to replace, as they are some of the biggest electricity consumers in your home and last for a very long time.

How much can you get back from the state? The amount varies, depending on the kind of appliance you purchase. To give you an idea, buying a refrigerator will get you 240 dollars, freezers will get you 180 dollars and room-size air conditioners are worth a 45-dollar rebate.

How can a homeowner take advantage of the program? The details are at the rebate program's official web site: http://www.texaspowerfulsmart.org/rebate. Here is some information you should know:

• Beginning around April 5, 2010, people hoping to get a check must reserve a rebate through the official web site or by calling a toll-free number.
• Starting on April 16, 2010, rebate hopefuls can begin purchasing their ENERGY STAR-eligible appliances. There's a list of covered appliances on that official site, so you should double-check that list before you shell out your hard-earned cash. You can find that list here: http://www.texaspowerfulsmart.org/rebate/appliances.php
• The eligibility period ends on April 25 for most units, so make sure you don't delay. (The dates are a little different for appliances that must be installed by professionals, including central air conditioners and hot water heaters.)
• Once you receive your rebate paperwork, complete the forms and remit them to the state and you'll be good to go.

So if you're about to renovate your kitchen or replace a faithful, old appliance that is at the end of its life, the Great Rebate of 2010 might be a boon to your checking account.

The government uses ENERGY STAR ratings as an easy way to communicate to consumers that an appliance is relatively energy efficient. While the system works the majority of the time, Sharon Hong of the Houston Chronicle reported that some problems have been found in the system. A Congressional report released in March 2010 concluded that the ENERGY STAR process is, "highly vulnerable to fraud." Watchdogs submitted fake products and watched them earn ENERGY STAR status in spite of the fact that they didn't exist.

As always, when a problem is pointed out, governmental agencies take swift action. The Department of Energy has enacted a "two-step process to expand testing of ENERGY STAR qualified products." While testing the products in question, the agency will also step up enforcement to punish those who abuse the system.

How can you, the average consumer, make sure that the appliance you're buying will operate efficiently? Look for the ENERGY STAR label, but double-check by checking with a third party. For example, Consumer Reports' http://www.greenerchoices.org allows you to compare the energy use of an old appliance with a new one.

While there's still time, consider updating your home's kitchen or laundry room or heating and cooling system with a new appliance to take advantage of the state's rebate. Once the rebate is over, you won't be able to experience the satisfaction of getting a check in the mail, but getting that brand-new air conditioner, for example, will still provide you with something almost as pleasing: a lower monthly Texas energy bill that will, in time, pay for your new appliance.