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Energy Committee Discusses Rising Fuel Costs, Global Climate Change, Green Buildings

By Brett Rosenberg and Debra DeHaney-Howard
June 19, 2006


Energy Committee Chair Austin Mayor Will Wynn led members of the Conference’s Energy Policy Standing Committee through several policy debates on a number of energy-related issues. Among those issues covered were establishing a new Municipal Energy Agenda, promoting clean, renewable energy sources, supporting plug-in hybrids, and calling for all buildings to be carbon neutral by 2030.

The Energy Committee met June 3 during the Conference of Mayors 74th Annual Meeting in Las Vegas to consider nine energy-related policy resolutions. Among the resolutions up for discussion was whether to support a ban on drilling for oil in Alaska’s Arctic National Wildlife Refuge (ANWR). The resolution failed to pass out of committee following a lengthy discussion. Committee members recommended eight new resolutions to the full membership for consideration at its June 5 Business Session. The full membership unanimously approved the Energy Committees’ recommendations.

In addition to the debate and discussion on the proposed policy resolutions, members of the committee were also briefed on the recent Conference of Mayors’ National Summit on Energy and the Environment, which was hosted by Chicago Mayor Richard M. Daley last month. Wynn told committee members that the Summit covered a number of issues, including the release of an Energy and Environment “Best Practice” report (for copies of the report, log on to usmayors.org). He noted that the report illustrates how mayors across the nation are leading the effort on “meeting our energy challenges through innovative energy programs such as residential energy efficiency rebates and carbon neutral municipal green buildings.”

Following the Committee’s business session, members discussed the impact of record high-gas prices, global climate change and also heard from Ed Comer, Vice President and General Council of the Edison Electric Institute, a trade group representing the electric utility industry. Comer gave a short presentation on “Powering America’s Cities – An Investment in the Nation’s Energy Future.”

Comer’s presentation highlighted many of the factors that influence the tight national electricity supply; growing demand for cheap electrical power; the potential for fossil fuel alternatives — including nuclear, solar and wind power; and some of the uncertainties facing the electric utility industry, such as climate change regulations, natural gas prices, and the general trend toward higher fuel prices.

Speaking to the growing demand for electricity, Comer said, “Our country’s demand for electricity is at an all-time high. Homes are larger and have more appliances and electronic equipment than ever before. Despite continued efficiency improvements; electricity consumption is expected to grow by 45 percent by 2030.”

Of the many energy-related concerns facing American cities and consumers, rising costs ranks among the highest. Comer noted that the current trend toward rising electricity bills has, at its root, several phenomena. He said that the primary reason is rising fuel costs, that is, the natural gas and coal used to produce most electricity, are becoming increasingly expensive. While regional variations in fuel mixes are often responsible, other factors include limited railroad capacity to deliver, Wyoming’s Powder River Basin coal to power plants and the considerable increase in demand for natural gas over the last decade. Other possible reasons for escalating prices, according to Comer, include expiring price caps in several regions of the country, deregulation, and compliance with some environmental regulations.

When asked what consumers can do to mitigate rising electricity costs, Comer noted that conservation can help at the margins, but the key is energy efficiency, which, he said, “is at the heart of a lot of today’s resolutions.” However, Comer suggested that as long as consumers continue to have larger and larger power demands, particularly because of the trends toward larger houses and more electric gadgets, prices will not ease any time soon.

Mayors and Comer closed with a discussion of alternatives to fossil fuel-generated power. Building on Senator John McCain’s earlier luncheon speech, Comer expressed that nuclear power must be part of the dialogue, especially considering its non-existent carbon dioxide emissions. To a lesser extent, Comer said that wind and solar will play a role in future energy alternatives, but still a major challenge lies in bringing intermittently available power to population centers.

Adopted Resolutions

Adopting the “2030 Challenge” for city buildings

Encourages the use of landfill gas-to-recovery technologies

Encouraging increased investments in weatherization to benefit the nation’s communities

Encouraging the use of plug-in hybrid vehicles

Endorses the increased use of renewable fuels

Increased funding for the Low Income Home Energy Assistance Program (LIHEAP)

Promotion of clean, renewable energy sources

Establishing a new Municipal Energy Agenda to help address the nation’s energy and environmental challenges and improve local communities