May 7, 2007

Representative Albert R. Wynn (MD) announced his plan to introduce legislation this week authorizing an Energy and Environment Block Grant program, based on the Conference’s recommendation in the Mayors’ 10-Point Plan: Strong Cities, Strong Families for a Strong America. This new energy and climate protection initiative is modeled after the highly successful Community Development Block Grant program.

At the same time, the Senate Committee on Energy and Natural Resources approved May 2 a broad energy package, which included its own version of an energy and environment block grant that reflected key elements of the Conference’s plan.

The legislation, called the “Energy and Environment Block Grant Act of 2007” is expected to be debated this month by the House Energy and Commerce Committee, the panel that is charged with developing energy legislation before the Memorial Day Recess. Wynn is a senior member of this committee, where he serves as Chair of the Environment and Hazardous Materials Subcommittee.

“This block grant legislation is a critical part of a broader national strategy to increase our energy efficiency and curb greenhouse gas emissions. Mayors, county leaders and governors know that block grants will benefit our nation and will ensure progress on our energy and climate protection objectives,” Wynn said.

Speaking to how mayors and other officials can support his efforts, Wynn said, “Your Congressional delegations urgently need to hear from you today about the importance of acting on this legislation. If local and state leaders weigh in now, it is likely the Committee will include this block grant program in their legislation. Your voice matters.”

Conference President Trenton Mayor Douglas H. Palmer praised Wynn for embracing the Mayors’ 10-Plan. “Representative Wynn has responded to the mayors’ call for action and it is time for us to step up and help him get this measure enacted,” Palmer said.

As written, the measure closely resembles the structure of HUD’s CDBG program in most respects, although it uses only population factors for distributing funds to eligible formula recipients.

“This is pivotal time for our nation given the scale of our energy and climate challenges. This legislation will enable mayors to do for energy and climate what CDBG has done for community development,” said Conference Executive Director Tom Cochran.

Specifically, the legislation authorizes $4 billion for Fiscal Year 2008, rising to an annual level of $6 billion by 2012. The Secretary of Energy is directed to allocate seventy percent of all funds to cities of 50,000 or more in population and counties of 200,000 or more in population, with the remaining 30 percent allocated to the states, principally for regranting to local governments that don’t meet the population thresholds.

The program delivers a one-time grant to local governments and states to support development of an Energy Efficiency and Climate Protection Strategy, with all subsequent funds available only for implementation activities set forth under the strategy. While no match is required, any recipient of funds must submit a report to the Secretary within two years of receiving initial funding and annually thereafter, describing the energy efficiency gains and greenhouse gas reductions.

With a 20-3 vote by the Senate Energy and Natural Resources Committee, the Conference’s top legislative priority – Enactment of an Energy and Environment Block Grant program – cleared its first hurdle in the legislative process.

Palmer said, “On behalf of the nation’s mayors, I thank Committee Chair Jeff Bingaman (NM) and Ranking Minority Member Pete Domenici (NM) for their leadership on this bipartisan legislation that will support city efforts to curb America’s thirst for energy and address climate protection.”

“These Committee leaders, including my own Senator Bob Menendez (NJ) along with Senator Bernie Sanders (VT), acted proactively to chart a new direction for our nation’s energy policy, one that embraces a new partnership with mayors and other local leaders,” said Palmer.

After the panel’s vote, Menendez said, “As a former mayor, I know how much can be accomplished at the local level, especially with the help of federal incentives. These grants will not only provide resources for such initiatives, but will enable cities and counties to be the building blocks for a national, long-term solution on energy conservation and environmental protection.”

“Making change on the ground, in cities all across the country, will help our country rise to the greatest environmental challenge the world has ever known, global warming. The energy and environmental block grant program will support efforts by state and local leaders to be smarter about all aspects of our energy use. I am very excited. This is a good start,” said Sanders, another former mayor (Burlington, VT).

“Week after week, we’re learning about local initiatives, many aimed at increasing energy efficiency, that mayors have established to curb global warming with limited local resources,” added Cochran. “But there is no doubt that it’s time for the federal government to embrace city-based solutions as a pathway to greater energy independence.”

After nearly four hours of deliberations, including action on several amendments, the committee reported the broad energy package, which also provides programs and incentives for biofuels, carbon sequestration and new energy technologies, federal fleet and building standards, and new federal labeling and appliance standards, among many other provisions.

In his comments on the legislation, Chairman Jeff Bingaman (NM) said, “It will help dramatically reduce our dependence on fossil fuels by requiring the more efficient use of energy and by putting a much greater emphasis on the use of renewable, homegrown fuels. It also increases our investment in research on the capture of carbon, so we can cut back on the greenhouse gas emissions that contribute to global warming.”

“Today, the Energy Committee came together on a bipartisan basis and passed a bill that makes significant strides in a number of areas important to our long-term energy security. In particular, this bill sets the stage for biofuels such as cellulosic ethanol to greatly expand in our fuel supply, and will also save consumers money by improving efficiency standards,” Domenici said.

The full Senate is now expected to take action on the legislation during June.