By Debra DeHaney-Howard
April 23, 2007

Leaders of the Senate Energy and Natural Resources Committee introduced bipartisan energy efficiency legislation on April 16 that incorporates the Conference’s top legislative priority: Enactment of an energy and environment block grant initiative to help cities reduce their energy use and curb greenhouse gas emissions.

In a statement on the legislation, called the ”Energy Efficiency Promotion Act” (S. 1115), Conference President Trenton Mayor Douglas H. Palmer said, “This is a giant step forward in bringing additional resources to bear on this monumental challenge before our nation and the planet.”

Praising the efforts of his home state Senator Bob Menendez (NJ) and Senator Bernie Sanders (VT), Palmer added, “As former mayors, Senators Menendez and Sanders understand that a successful plan for reducing our energy use and greenhouse gases begins in cities and other communities all across the country.”

The legislation is scheduled for expedited action by the Senate Energy and Natural Resources Committee, chaired by Senator Jeff Bingaman (NM). Recognizing Bingaman for his leadership on S. 1115, Palmer said, “On behalf of the nation’s mayors, we thank Senator Bingaman for advancing the Conference’s top legislative priority.”

Palmer made the climate protection block grant, largely modeled after HUD’s very successful Community Development Block Grant program, the first priority in the Mayors 10-Point Plan: Strong Cities, Strong Families, for a Strong America, which was unveiled at the Conference’s 75th Winter Meeting in January 2007.

City/County/State Energy Block Grant

As provided in the legislation, cities with a population of 35,000 or more and counties with a population of 200,000 or more would receive formula funding on an annual basis. About seventy percent of all formula funding would be allocated directly by the Secretary of Energy to these cities and counties; the remaining thirty percent would be allocated to the states, which would be required to pass at least 40 percent of this funding on to communities that do not receive funds directly under the program.

The Secretary of Energy would be directed to develop rules for what communities must do to qualify for funds and further clarify eligible programs and projects that could be undertaken with federal funds.

The program would be divided into two phases. Under the first phase, qualifying jurisdictions would receive 100 percent of federal funding to develop a comprehensive energy reduction strategy. Additional funds would be available for implementation of locally-developed programs, with a 25 percent non-federal match (minimum cash match of 12.5 percent, with in-kind resources permitted for the remaining 12.5 percent).

S. 1115 does not include specific annual funding authorizations for the program, but leaves the amount unspecified by authorizing “such sums as necessary,” with a final decision on overall funding levels to be made later in the legislative process.

Recent statements by Senator Majority Leader Harry Reid (NV) indicate that this measure is slated for prompt consideration by the Senate. In fact, Reid has pledged to move a significant energy package to the Senate floor prior to the Memorial Day Recess, which begins May 25.

The legislation, which includes a number of provisions to expand the nation’s efforts to reduce its energy use, is on a fast track for action in the Senate Energy and Natural Resources Committee. The first milestone is an April 23 hearing where a range of witnesses will provide comments on the legislation.

At the direction of Bingaman, the full committee is expected to act on S. 1115 by early May, another key step in the process to ensure that the bill moves to the Senate floor for final action prior to the May 25 recess date.

Bipartisan support for S. 1115 is critical to the Senate’s planned schedule for prompt consideration. Key Republican Senators who joined with Bingaman in introducing the legislation were Pete Domenici (NM), the Committee’s Ranking Minority Member, Richard Lugar (IN), Larry Craig (ID), Lisa Murkowski (AK) and Olympia Snowe (ME). Other Senators from the majority who joined as original cosponsors were Daniel Akaka (HI), Byron Dorgan (ND), Ken Salazar (CO) and John Kerry (MA).

On the House side, action on companion legislation, now in the early stages of development, is expected prior to the Memorial Day recess.

In addition to addressing the mayors’ call for an energy “block grant” style program, S. 1115 addresses other state and local energy priorities, such as reauthorizing the weatherization assistance program and state energy programs, as well as authorizing a new job training program for workers in energy efficiency and renewable energy industries.

It directs state utility regulators to consider policies to treat energy efficiency as a priority resource and to address current retail rate disincentives to utility'sponsored energy efficiency programs, and it authorizes a new grant program for energy efficiency and innovative technology projects at colleges and universities.

The legislation sets forth a broad package of directives, incentives and initiatives that seek to expand research, update appliance standards, expand energy product labeling, reduce energy use in federal buildings and fleets, increase federal purchases of renewable energy, and stimulate a variety of actions that reduce energy use and increase efficiency in key sectors.

Included in the bill’s six titles are directives to federal agencies to accelerate the use of efficient lighting in federal building by 2010, enactment of consensus efficiency standards for residential boilers, dishwashers, clothes washers, refrigerators and dehumidifiers, and electric motors, new authority to the Department of Energy to issue energy-efficiency standards, and new directives to the Federal Trade Commission to develop Energy Guide labeling for televisions, computer monitors and other consumer electronic product categories.

The legislation also authorizes a number of new incentives, including expanded R&D and loan guarantees to promote carbon composites, light-weight steel alloys for the construction of vehicles, drive trains, energy storage and advanced battery technology for vehicles and electricity transmission.

Finally, S. 1115 sets aggressive national goals for reducing gasoline usage and improving U.S. energy productivity, requires strategic plans and reporting to Congress, and authorizes a nationwide media campaign to increase energy efficiency.