Stringer 2013

Manhattan Borough President Scott M. Stringer, citing the success of the federal program that rewards car owners for turning in their older and less fuel-efficient cars for newer “greener” models, today urged the federal government to begin an immediate bonus program that would encourage urban consumers and landlords to replace existing refrigerators, air-conditioners and other appliances with newer models that use less energy.

Borough President Stringer -- who noted that 77 percent of Manhattan households and more than half of all New York City households do not have a car -- called on the U.S. Department of Energy to immediately begin a program in New York and other cities that would provide rebates of up to $300 for old refrigerators and similar amounts for other appliances if they are replaced with new models that qualify for the federal government’s Energy Star rating.

Mr. Stringer said, “The success of “Cash for Clunkers” has shown that consumers are ready to ‘go green’ and save money at the same time, while spending an estimated $3 billion that will help keep our troubled auto industry afloat.  Now we need an immediate urban program that can provide the same kind of stimulus for our residents and businesses.”

“With the average cost of a mid-price refrigerator in New York City ranging between $900 and $1200, a $300 rebate would be roughly comparable as a percentage of the purchase price to the “cash for clunkers” rebate, and would be sufficient to spur substantial consumer purchases.  If, for example, qualifying purchasers were limited to those trading in model year refrigerators from 2000 or earlier, and 5 percent of New York City’s 3 million households participated in the program, we would see a stimulus to the local economy of between $135 million and $180 million, from aggregate rebate costs of approximately $45 million.  The value of energy savings to New York City families would exceed the cost of the rebates in just a few years’ time.”

"A hefty portion of the average electric bill is eaten up by energy-wasting appliances. Borough President Stringer has come up with a clever idea that would encourage consumers to save energy and stimulate the economy. In a city where relatively few people own cars, this is a cash for clunkers program that would work for our local economy," said Congresswoman Carolyn B. Maloney. 

The “cash for clunkers” program requires that consumers trade in old cars with a combined city and highway fuel-economy rating of 18 mpg or less. The new car must cost $45,000 or less and have a federal fuel-economy rating at least 4 mpg better than the trade-in to qualify for a $3,500 voucher, or be rated at least 10 mpg better to get the maximum of $4,500.

Under the Borough President’s proposal, consumers who have refrigerators, air conditioners, dishwashers, dehumidifiers and other major appliances that are at least nine years old could earn the rebate if they buy new appliances that have been approved for energy efficiency by the U.S. Department of Energy and placed on the “Energy Star” list.  The Energy Star label appears on the appliance’s packaging or on its Energy Efficiency (EER) label.  The five-year savings total for replacing a 20-year old refrigerator with an energy-efficient model is estimated to be $1,185.

Consumers who do not have receipts for their old appliances could confirm their age by checking their device’s model number on the internet with its manufacturer.  They could bring their old appliances to the dealer, or in the case of refrigerators and other heavy items, make arrangements with the dealer to get a voucher for their old appliance when the new one is delivered and the old one removed.

In New York City retail outlets, full-size refrigerators can range from just over $500 to more than $2,500;  8,000-12,000 BTU air-conditioners, used for rooms in typical New York City apartments, range from about $160 to $400 or more.

Of the $32.7 billion made available to the Department of Energy for grants and programs through the American Recovery and Reinvestment Act, less than $9 billion has been awarded. The department has set aside some stimulus funds to be divided among the states for appliance rebates and similar programs, but each state must design and submit its own program to qualify, and most programs could not begin operating until 2010.