By Debra DeHaney-Howard and Adam Brand
June 23, 2003

Under the leadership of Fremont Mayor Gus Morrison, members of the Energy Standing Committee discussed a variety of energy issues, including conservation, energy infrastructure security, and energy efficiency during its June 6 meeting in Denver at the Conference's 71st Annual Meeting. Morrison told committee members that, "While several energy crises of the past have been effectively dealt with, there are still many energy issues to be confronted in order to secure our cities' futures. Energy conservation and energy efficiency, the improvement of supply and demand, and enhancing energy emergency preparedness and energy infrastructure are issues that we need to continue to address in order to develop more reliable and efficient energy systems."

Dr. Craig Reed, Executive Director and Secretary of the Energy Advisory Board at the Department of Energy (DOE), was the first to address members of the committee. Reed focused his remarks on the administration's progress made since the president introduced his National Energy policy two years ago. Highlighting a number of the administration's energy priorities, Reed said, "The administration's energy priorities include increased domestic energy security, upgraded national energy infrastructure, and modernized conservation efforts."

Reed discussed many programs developed by DOE in order to facilitate "transforming energy technology initiatives." One such program, the Freedom Car Initiative, invests $1.7 billion to "develop these hydrogen powered fuel cells and infrastructure out into the future." Reed made note of the administration's desire to develop coal-based zero emissions electricity and hydrogen power plants. He said, "We need to develop a new generation of nuclear power plants to enhance domestic energy supplies and develop clean coal initiatives so that this rich, abundant domestic resource will not be squandered or under utilized."

In discussing methods of conservation and energy efficiency Reed said, "Forty percent of the recommendations in the president's energy plan were aimed at energy efficiency and conservation and we are really making great strides in a number of these areas." He cited increases in funding for Low Income Housing Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program (WAP).

Panelist Loretta Lynch, Commissioner of the California Public Utilities Commission, advocated for local control of efficiency programs. "You can't conserve your way out of a cartel, but you can conserve your way out of excess or unnecessary costs and that's better for the environment," she said. "California spent a billion dollars in 2001 on energy efficiency and one of the things I, as a PUC Commissioner, have tried to do, is to focus a lot of that money into localities, into local government. Because, they can effectively and quickly use that money."

Lynch argued that local governments, rather than states, should administer conservation programs. "I think the people who are most accountable for whether the programs work are the mayors. I favor a transition of energy efficiency dollars to local control," Lynch said, noting that utility companies are "not very good at administering such programs themselves." Insisting that California's energy crisis of 2001 was the result of illegal pricing tactics and a lack of proper policing mechanisms, Lynch expressed some skepticism that the current energy bill being debated in Congress could continue to preserve the most basic consumer protections provisioned for in the Federal Power Act.

Michael Bell, a principal of R.W. Beck, Inc., echoed Lynch's argument saying that local governments must "protect residents from price volatility, establish reliability, encourage economic development, and control public dollars benefits." He added, "Local control is absolutely necessary in order to influence decisions and protect citizens."

Bell further warned committee members that their interests would not be "looked out for" by anyone in federal or state government or the utility companies. He admitted the challenge in preparing local solutions to national problems, but remained optimistic when he charged mayors to "be cautious, be aggressive, and develop a strategy quietly."

At the conclusion of the Standing Committee Meeting, members heard from Professor Ilan Julan, Executive Director of the Urban Utility Center at Polytechnic University in New York, who was part of the official International Conference of Mayors delegation. Julan supplemented the dialogue, outlining renewable energy practices in French cities.

In addition to substantive discussion, Julan extended an invitation to all members to attend and participate in the Conference on City Governments hosted in the city of Paris in May 2004. The conference is to focus on the concepts and practices of sustainable urban development.

Adopted Resolutions

Energy Conservation and Improved Energy Efficiency calls on the federal government to create a partnership with state and local areas to target energy use, helping stimulate a broad range of locally initiated strategies which address energy demand. It also calls for collaboration between federal, state, and local governments on establishing an aggressive educational campaign promoting the many benefits of using energy efficient products and increasing conservation efforts in cities.

Prohibiting Liability Protection for Methyl Tertiary Butyl Ether (MTBE) Manufacturers urges the Congress to not include liability protection for MTBE manufacturers and thereby shifting the burden of cleanup of water supplies, contaminated by MTBE, to local governments.

Enhancing Energy Emergency Preparedness and Energy Infrastructure Security urges the federal government to enhance energy emergency preparedness to reduce the impact of a disruption of the supply and distribution of energy; and encourages the Department of Energy to expand its cooperative relationship with municipalities on energy emergency preparedness matters and to develop and integrate energy emergency response plans that include protecting the nation's critical energy infrastructure.

Improving Energy Supply and Demand encourages the Department of Energy to continue to assess the future of our nation's energy requirements to ensure that federal, state and local energy policies adequately address the future energy needs of the country; and urges the federal government to work with state and local governments to develop and implement a reliable, equitable, and environmentally responsible energy policy that includes, promoting the most efficient and affordable use of all sources of energy while protecting the environment and protecting the supply of energy by promoting the use of renewable energy sources and alternative fuels.

Urging National Multi-Pollutant Legislation to Enhance Air Quality encourages Congress to set national air emission caps under a multi-pollutant plan at levels strong enough to protect public health and the environment by substantively assisting cities in their efforts to attain the National Ambient Air Quality Standards by requiring power plants to reduce air emissions of sulfur dioxide, nitrogen oxide and mercury by an average of 70% from 2000 emissions levels by 2020 under a proven market-based cap and trade program.

Supports the Hydrogen Fuel Initiative to ensure American's energy security by significantly reducing the need for imported oil, as well as promoting clean air in America's cities and reduced greenhouse gas emissions; and urges federal lawmakers to support and fully fund the hydrogen fuel initiative.