By Brett Rosenberg and Debra DeHaney-Howard
January 31, 2005

Augusta (GA) Mayor Bob Young convened a meeting of the U.S. Conference of Mayors Energy Committee January 18th at the 73rd Winter Meeting of the Conference. There to address issues concerning national energy policy, energy security and energy infrastructure were Larisa Dobrianski, Deputy Assistant Secretary for National Energy Policy, U.S. Department of Energy, Nora Mead Brownell, Commissioner of the Federal Energy Regulatory Commission, and Judy Pensabene, Chief Counsel, Senate Energy and Natural Resources Committee.

Young initiated the session, stating that "Energy is one of those issues which We're always looking for the right mix of national and international policies," hinting at many of the complexities behind ensuring an abundant and reliable supply of affordable, safe and clean forms of energy. In his opening remarks, Young touched on many of the current challenges facing the nation's energy supply such as blackouts, rising fuel and natural gas prices and infrastructure problems. These challenges, according to Young, require a national approach that strikes a balance between the need to power local economies without causing undo harm to public health and the natural environment.

To clarify certain aspects of a potential national energy policy, Larisa Dobrianski, the Deputy Assistant Secretary for National Energy Policy at the U.S. Department of Energy outlined a series of steps the Bush Administration is advocating. One of the major priorities, according to Ms. Dobrianski, is addressing the tremendous differences in local needs with regard to energy security and the potential for supply disruptions resulting either from terrorism, natural disasters or infrastructure failure. Similarly, in addition to infrastructure security, the Administration is working to cost-effectively ensure energy reliability. Dobrianski also noted the importance to the Administration in securing more domestic energy supplies, given the instability in international politics and markets. She also emphasized the development of programs meant to reduce emissions from burning coal, such as the President's Clear Skies Initiative, while encouraging energy efficiency and conservation in all sectors. In wrapping up her remarks, Dobrianski stressed the need for mayors to encourage the Congress to act on an energy bill, stating that "Legislation is vital."

e President's Clear Skies Initiative, while encouraging energy efficiency and conservation in all sectors. In wrapping up her remarks, Dobrianski stressed the need for mayors to encourage the Congress to act on an energy bill, stating that "Legislation is vital."

Following Ms. Dobrianski, Nora Mead Brownell, a commissioner of the Federal Energy Regulatory Commission (FERC) presented an update for the mayors of several energy issues on the horizon. Brownell commented on everything from price volatility in gas and natural gas markets and how the increasing costs at the gas pump has caught Congress's attention, to industries moving out of some cities as electricity costs rise. Brownell then hinted that FERC may seek mandatory electrical reliability rules, noting that "the economic vitality of the country is at risk; it's not just limited to California."

Judy Pensabene, Chief Counsel of the Senate Energy and Natural Resources Committee continued the energy policy discussion with an overview of where the Energy Policy Act of 2003 now stands in the legislative process, given the hurdles it has experienced. Pensabene indicated that the increased Republican majority since the 2004 elections probably won't make much of a difference in terms of the politics involved in moving a renewed bill forward. Instead, she said that the Administration plans to do a better job of working in a bi-partisan manner to address items that derailed the bill last year and to try to work with the minority staff to create an acceptable bill. A number of aspects of the bill will likely remain contentious, namely, a renewed look at drilling for oil in Alaska's Arctic National Wildlife Reserve, easing price volatility, and the MTBE (methyl tertiary butyl ether) safe harbor provisions, which were pivotal in stopping last year's energy bill. By providing MTBE manufacturers liability exemption in cases where the fuel oxygenate contaminated drinking water supplies, cities face the potential of high clean-up costs on their own. The Conference adopted policy at its Annual Meeting in Boston 2004 that opposes any legislation that provides manufactures of MTBE liability protection.

arbor provisions, which were pivotal in stopping last year's energy bill. By providing MTBE manufacturers liability exemption in cases where the fuel oxygenate contaminated drinking water supplies, cities face the potential of high clean-up costs on their own. The Conference adopted policy at its Annual Meeting in Boston 2004 that opposes any legislation that provides manufactures of MTBE liability protection.

In a closing question and answer period, Mayor Young expressed to the panelists that cities could not accept the unfunded MTBE mandate in the energy bill because they cannot afford it. Pensabene responded that it is crucial that mayors continue to make their case before Congress. Other contentious issues also arose. Las Vegas Mayor Oscar Goodman and Salt Lake City Mayor Rocky Anderson expressed their concerns over high-level nuclear waste transport and disposal. Dobrianski said that the federal government is looking into policy tools, credit-based mechanisms and other programs to address these issues, as well as making progress on the Yucca Mountain nuclear waste site in Nevada. Pensabene noted that the Yucca Mountain site is a priority and to ease some concerns, noted that the military has been transporting nuclear material for years without incident.