By Katie Logisz and Debra DeHaney-Howard
February 9, 2004

The U. S. Conference of Mayors Energy Standing Committee met January 22 during the Winter Meeting in Washington (DC). The committee, chaired by Fremont (CA) Mayor Gus Morrison, heard from three speakers, regarding the challenges faced by mayors in regards to safe, affordable, and efficient energy. Morrison welcomed the committee stating that energy policy "continues to be complicated, especially when considering customer benefits, supply and demand, and infrastructure". The topic of safe, affordable, and efficient energy is more and more relevant as Morrison pointed out that this session of Congress "will see another energy bill," and large numbers of citizens found out first hand what can go wrong during the August 14, 2003 Northeast blackout.

The first speaker was David Garman, Assistant Secretary for Energy Efficiency and Renewable Energy from the Department of Energy. Garman highlighted the question of "what kind of cities do we want to have?" Using the 1939 World's Fair in New York City as an example, Garman explained that in many ways, the cities predicted are the cities that have evolved. When asking, "what do we want" in regards to energy, Garman stated that we want energy that is "clean, affordable, usable, and abundant". Ideally, energy should be carbon-free and emissions'free, utilizing hydrogen fuel cells. Someday homes should be able to generate as much energy as is needed.

Garman commended mayors and cities for already "painting a picture that entices change" giving examples of Chicago's green rooftop for city hall and Chattanooga's hybrid electric buses. He stated that programs such as these show the public that there are technologies and ideas that will work well for the future. Garman also pointed to the Department of Energy's solar decathlon, in which teams from fourteen colleges built solar homes on the mall, attracting 100,000 visitors and national media attention.

Robert M. Simon, Ph.D., Minority Staff Director for the Committee on Energy and Natural Resources for the United States Senate, gave a presentation on the Energy Policy Act of 2003 (H.R. 6), describing the current state of the Energy Bill as a "Greek tragedy" stating that it was like "a well intentioned hero with a fatal flaw." Simon stated, "Six months ago in the Senate, we were there; however, consensus was lost through the conference process." By locking some out of the conference committee process, Simon believes that more information was locked out than locked in, causing the Energy Bill to lose its bipartisan nature. Some last minute additions were also a blocking factor for the Energy Bill. Simon speculated, "A flawed process led to a flawed product". Simon concluded that a problem with this flawed process is that a comprehensive energy policy is being equated to a comprehensive bill. Two Congresses have tried to pass this comprehensive policy and have yet to find success. Simon stated that progress might be greater if it is guided by several pieces of legislation rather than one all-inclusive package, citing examples of legislation from the 1970s. He concluded that a positive outlook is possible if the process is altered to fix its inherent flaw.

David French, Senior Associate for ENS Resources, Inc., followed Dr. Simon's presentation with a real world example of an issue with 2003's proposed Energy Bill. French outlined South Tahoe (CA) Public Utility District vs. Atlantic Richfield Company, et al. In 1996, methyl tertiary butyl ether (MTBE) was first detected in the water, causing eighteen of thirty-four wells to be shut down. The origin of the contamination was mostly from gas station storage into the ground water supply. French detailed a case that in 1998 had thirty-one defendants. After a five-month jury trial, and six weeks of deliberation, the communities involved in the suit were awarded $34 million in settlement. There was an additional $28 million settlement from the larger defendants. The verdict was clear, as French explained, because the companies "knew the product would contaminate". French cited malice, as station owners and the communities involved were not made aware of possible problems with water contamination. The industry had a clear knowledge that water is undrinkable with even small amounts of MTBE, and the plumes of this substance move at a rapid pace. French asserted that the industry settled because it was aware of the strong case against it.

French related this case to the Energy Bill, continuing with Simon's argument with the problems of late provisions to the 2003 Energy Bill. Such provisions included a retroactive moratorium on lawsuits against the industry. This provision would not only prevent future suits by communities effected by such contamination, but would also silence pending action in states like New Hampshire. French stated, "The Energy Bill would have closed the door on one legal avenue to remedy this situation."

In closing, Morrison reiterated the importance of issues pertaining to energy in America's cities, stating that communities pay if manufacturers are not held accountable. Morrison said, "All possibilities for safe, affordable, and efficient sources of energy need to be explored to ensure a safe future for America's cities. There is still much to be learned about possible uses for ethanol and way to manufacture gasoline with additives that are safer than MTBE. Finally, energy issues should not be isolated in scope, but rather should be examined side by side with other issues such as transportation and the environment."