First came President Obama's successful but somewhat short lived "Cash for Clunkers" program, which allowed Americans to trade in their old gas guzzlers for credit towards the purchase of a new, more fuel efficient vehicle. On Tuesday, President Obama revealed his plans for another eco friendly initiative, a program that has been dubbed "Cash for Caulkers".

The actual details are yet to be finalized, but the premise of the program is to encourage homeowners to replace their old, inefficient, household appliances with more eco friendly models and to upgrade the insulation in their homes to reduce energy consumption and costs all around.

According to Steve Nadal, who is the director of the American Council for an Energy-Efficient Economy and who has been lending a helping hand with the drafting of the bill, homeowners could be looking at rebates of up to $12,000, regardless of their income level.

It seems that the "Cash for Caulkers" program will call for the creation of a scheme in which private contractors conduct "energy audits" in homes, ascertaining what materials and equipment should be purchased and installed in order to improve the energy efficiency of each particular residence. The contractors would then purchase and install the recommended items. It is presumed that such expensive items as air conditioners, replacement windows, new insulation and even washers, dryers and refrigerators will be covered.

No one is quite sure yet who will have to bear the upfront costs and who will receive the up to 50% rebate on the cost of such improvements. Steve Nadal suggests that, to avoid homeowners having to go thousands of dollars out of pocket upfront, perhaps it would be a good idea to have the retailers and contractors bear some of the initial costs themselves.

The plans are still taking shape, but the bill does have support in the Senate, which is at least one hurdle overcome. No word either on when "Cash for Caulkers" might take effect, but it is almost a certainty that many American homeowners will now delay purchasing their new appliances or windows until it does.