The Home Star Energy Retrofit Act (better known by its more exciting code “Cash for Caulkers”) is the latest stimulus attempt by the US government to get the economy growing again, much like the Cash for Clunkers and Cash for Appliances programs that have already been passed and rolled out. Under this new Cash for Caulking plan homeowners can be eligible to receive an incentive of between $1000 to $1500 back in exchange for doing work such as adding insulation, sealing up duct work, and replacing windows.

There is also a higher-end Gold Star Program where homeowners may eligible for up to a $3000 rebate if certain conditions were met for larger-scale home energy efficiency projects that improve energy efficiency by at least 20%. The work must be carried out by licensed contractors and may be audited to ensure that no fraud is taking place.

President Obama proposed a new program December 15th that would reimburse homeowners for energy-efficient appliances and insulation, part of a broader plan to stimulate the economy.

The administration didn’t provide immediate details, but said it would work with Congress on crafting legislation. Steve Nadel, director at the American Council for an Energy-Efficient Economy, who’s helping write the bill, said a homeowner could receive up to $12,000 in rebates.

The proposal is part of the President’s larger spending plan, which also includes money for small businesses, renewable energy manufacturing, and infrastructure.

We know energy efficiency “creates jobs, saves money for families, and reduces the pollution that threatens our environment,” Obama said. “With additional resources, in areas like advanced manufacturing of wind turbines and solar panels, for instance, we can help turn good ideas into good private-sector jobs.”

The program contains two parts: money for homeowners for efficiency projects, and money for companies in the renewable energy and efficiency space.

The plan will likely create a new program where private contractors conduct home energy audits, buy the necessary gear and install it, according to a staffer on the Senate Energy Committee and Nadel at the American Council for an Energy-Efficient Economy.

Big-ticket items like air conditioners, heating systems, washing machines, refrigerators, windows and insulation would likely be covered, Nadel said.

Consumers might be eligible for a 50% rebate on both the price of the equipment and the installation, up to $12,000, said Nadel. So far, there is no income restriction on who is eligible. That would mean a household could spend as much as $24,000 on upgrades and get half back.

Homes that take full advantage of the program could see their energy bills drop as much as 20%, he said. The program is expected to cost in the $10 billion range.

It’s not clear how the home efficiency plan would be administered – the government may issue rebates to consumers directly, homeowners might get a tax credit, or the program could be run via state agencies.