By Brett Rosenberg
February 6, 2006

Austin Mayor Will Wynn convened a meeting of The United States Conference of Mayors Energy Committee January 26. Several guest speakers were on hand to address a wide range of energy-related items for committee members.

Michael Goo, the Democratic Counsel for the Senate’s Environment and Public Works Committee, briefed mayors on the status of implementing the Energy Policy Act of 2005. To discuss the Low Income Home Energy Assistance Program (LIHEAP), Ari Strauss, Legislative Director of the Northeast-Midwest Institute, and Steve Crout, Managing Director of Government Relations at the American Gas Association, provided commentary. Floyd DesChamps, Senior Professional Staff for the Senate Committee on Commerce, Science and Transportation provided an overview of Congressional action on global climate change. Mayors Greg Nickels of Seattle, Rocky Anderson of Salt Lake City, and Martin Chavez of Albuquerque each discussed local and national initiatives to curb greenhouse gas emission and improve energy efficiency. To conclude the session, Akron Mayor Donald Plusquellic and Roger Bernstein, Managing Director of State and Government Affairs at the American Chemistry Council, introduced the Mayor’s Energy Council, a new Conference of Mayors endeavor to address increasing concern over energy costs, supply, security, environmental impacts and other energy issues.

The Energy Policy Act of 2005 provided a focal point to begin the Energy Committee discussion. Michael Goo noted that the Act does not contain a safe harbor provision for producers of the fuel additive, MTBE. On the subject of global climate change, often and erroneously referred to as global warming, Goo acknowledged that the Conference of Mayors resolution on the U.S. Mayors Climate Change Agreement is an important step in reducing greenhouse gas emissions and gives the federal government a strong signal that it’s time to act on a national climate change policy.

Ari Strauss of the Northeast-Midwest Institute (NEMW), a bipartisan Congressional coalition of 28 Senators and 45 Congressmen from 18 states, and Steve Crout of the American Gas Association (AGA), which represents 195 natural gas utilities, then discussed the status of LIHEAP and the challenges posed to consumers by especially high energy costs. Strauss noted that many low income citizens, particularly in colder states are not receiving LIHEAP assistance although they are eligible for it. Furthermore, funding levels for the program have stagnated ($5.1 billion per year through 2007) in Congress due largely to competing political interests in competing legislation. Crout, noted that 52 percent of American households use natural gas-powered heat, discussed how the recent spate of high prices affects citizens and mayors. Crout sought to dispel the notion that the natural gas industry is profiting from the high prices, saying that AGA is a huge supporter of LIHEAP and its members spend $1.7 billion annually to assist low income citizens with their utility bills.

Crout’s address touched on long term strategies to address the high natural gas prices. He suggested that any national energy policy should increase access to natural gas supplies – a notion that is often controversial for the security and environmental ramifications. When asked by Colorado Springs Mayor Lionel Rivera of whether more land will become available for natural gas exploration and extraction, Crout responded that many areas are currently shut out because while people are often supportive of increasing supply, they don’t want the facilities in their “back yards.” Furthermore, in response to a question from North Little Rock Mayor Patrick Hays about the potential for decreasing prices in the near future, Crout noted that 90 percent of projected near term new generation will be provided by natural gas, which will only drive up demand and costs.

Floyd DesChamps spoke broadly of the climate change and Congressional action on the subject. DesChamps noted that Senator John McCain (AZ), a member of the committee, has made climate change legislation a priority, though he has made little headway so far, save for a general Sense of the Senate resolution. DesChamps noted that several members of the House and Senate recently took a trip to Anarctica and witnessed firsthand possible effects of greenhouse gas emissions, which leading scientists say are leading to global climate change. According to DesChamps, the trip will reinvigorate McCain’s efforts and garner bipartisan support for more thorough climate change legislation.

Mayors then provided updates concerning sustainable energy best practices in their cities and new initiatives to reduce greenhouse gas emissions and increase energy efficiency locally. Mayors Wynn, Nickels, Anderson and Chavez each reported on programs that they have implemented to ease the economic and environmental burdens associated with energy. For example, in Austin, Wynn is working on a campaign known as Plug-in Partners, meant to build a market for hybrid cars that either run on alternative fuel such as biodiesel, or a battery charged via a standard electric outlet. Nickels updated the committee on efforts concerning the U.S. Mayors Climate Protection Agreement. As of January 26, 200 mayors signed on, pledging local commitments to reduce greenhouse gas emissions to below 1990 levels. Anderson reiterated the importance of the agreement, stating, “It’s recognized, even internationally, that the action [on addressing climate change] is in the cities.” Anderson hosted a summit in July at Sundance at which over 40 mayors, former Vice President Al Gore and Robert Redford came together to discuss local means of solving the climate change problem. Chavez discussed many relatively simple steps cities can take to meet some of the Climate Protection Agreement goals: green buildings, LED traffic lights, water conservation programs and other efforts that can improve energy efficiency and ultimately save money.

To wrap up the session, Plusquellic announced the formation of the new Mayor’s Energy Council. The council will identify and recognize energy sources and problems and develop strategies so mayors will be better equipped to address energy issues in their cities. Roger Bernstein of the American Chemistry Council, an Energy Council Charter Member, announced that the first Energy Summit will be held in Chicago May 10-12, 2006.