By Debra DeHaney-Howard
February 11, 2008

Energy Committee Chair Austin Mayor Will Wynn convened a meeting of the U.S. Conference of Mayors Energy Committee January 23 at the 76th Winter Meeting of the Conference of Mayors. There to address issues concerning Climate Change, Carbon Tax and Energy Conservation Codes were David McIntosh, Counsel and Legislative Assistant for Senator Joseph Lieberman; Joseph Aldy, Fellow with the Resources for the Future; and Rebecca Harsh, Manager, Consumer Retail Policy for Edison Electric Institute.

Wynn initiated the session by reporting that the recently enacted energy legislation, “Energy Independence and Security Act of 2007” (P.L. 110-140) included the Conference’s top legislative priority, the Energy Efficiency and Conservation Block Grant (EECBG) program. Wynn said, “This new $10 billion block grant commitment has been the Conference’s top legislative priority, set forth in the Mayors 10-Point Plan, will support many energy efficiency and climate programs that mayors are working on to support reducing our overdependence on foreign energy sources and further our ongoing local climate protection efforts.” He further noted that, “Passage of the energy block grant will help all of us in our efforts to reduce energy use, increase energy efficiency and curb greenhouse gas emissions.”

Wynn concluded his opening remarks by stating that the Conference of Mayors will now focus on full funding for the energy block grant program. He said, “A fully funded block grant program will enable cities, counties and states to accelerate their efforts to expand building and home energy conservation programs, fuel conservation programs, alternative fuels development, building retrofits for increased energy efficiency, planning and zoning adjustments, and alternative energy programs.”

The Lieberman-Warner “America’s Climate Security Act of 2007” (S. 2191) provided a focal point to begin the Energy Committee discussion. McIntosh provided an overview of where the Lieberman-Warner Climate Change legislation now stands in the legislative process, given the hurdles it has experienced. McIntosh told panel members that the legislation aims to “reduce greenhouse gases by 70 percent by 2050.” Under the legislation, various industries would be provided flexibility under the cap-and-trade system, which permits the buying and selling of pollution credits under decreasing overall limits. McIntosh noted that there is a fifty percent chance that the Lieberman-Warner climate change legislation would pass this year. A number of aspects of the bill will likely remain contentious, including international trading, state authority and preemption, and nuclear energy. He said, “Some of them, we have the ability through negotiation and engagement to have those issues be presented in a way that is not divisive, that does not divide up the votes that would otherwise support passage on the floor.”

Aldy continued the energy policy discussion with an overview on issues in designing and implementing a carbon fee. He touched on the similarities between a cap-and-trade program versus a carbon fee. In describing the benefits of an carbon fee, he said, “A major benefit is that it sends stable price signal, which leads to better incentives for new technology investment. Both programs promote cost-effective emission mitigation, raise energy prices, and delivery emissions abatement at less cost than performance and efficiency standards.” He also reported that a number of people are calling for a carbon tax, including New York City Mayor Michael R. Bloomberg, who announced his support at the Conference of Mayors Climate Protection Summit in Seattle last November.

Following Aldy, Harsh presented an overview on the International Energy Conservation Code (IECC), which is the most widely-used uniform code in the country. In her remarks, Harsh said, “Over the last year, a growing national consensus is forming in support of at least a 30 percent boost in home and other building energy efficiency codes.” She also noted that the IECC is periodically updated and when a new version is published — local jurisdictions then adopt the new versions at their own pace, making local amendments as they see fit. She said, “The IECC is up for revision again this year, this item is relevant and timely in that it gets into the nuts and bolts of deploying better efficiency practices broadly and evenly across markets.” Harsh also discussed the Energy Efficient Codes Coalition (EECC), whose members include Department of Energy, American Institute for Architects, Edison Electric Institute and ASHRAE. She reported that the EECC has submitted what it calls “The 30% Solution,” a major package of code change proposals for inclusion in the International Code Council’s (ICC’s) 2009 International Energy Conservation Code (IECC).