By Brett Rosenberg and Debra DeHaney-Howard
July 12, 2004

Fremont (CA) Mayor Gus Morrison, chair of the Energy Policy Committee, led the Energy Committee session on June 26th at the Conference's 72nd Annual Meeting in Boston. In his opening remarks, Morrison reaffirmed many of the challenges facing mayors as they continue to provide their communities with dependable power. Reliability of the nation's electricity topped the Energy Committee's list of concerns, as did protection from MTBE contamination liability, conservation, and the high costs of fuel and natural gas.

Nora Mead Brownell, Commissioner of the Federal Energy Regulatory Commission (FERC), first addressed members of the committee. Brownell discussed the current status of domestic energy supply and demand, the recent dramatic increases in gasoline and natural gas prices, and the reliability of the electric grid, following last summer's massive blackout. Brownell indicated that an important means of guaranteeing reliability in the electricity grid involves periodic audits, stating that the "same kinds of rules for compliance used by banks should apply to electricity transmission."

In discussing a national energy bill, Brownell concluded that the Congress probably would not pass a comprehensive bill this year. She stated that the competing interests guiding the process should "quit trying to appease various special interests and rather seek an economic framework more in the interest of what the U.S., as a whole really needs." Furthermore, she went on to discuss trends in energy investment, stating that investment in foreign energy infrastructure far outpaces domestic investment, citing few new opportunities in the U.S. Brownell concluded by encouraging local leaders to build coalitions to guide U.S. energy policy.

Dave Schryver, Vice President for Congressional Affairs, American Public Gas Association (APGA) then gave a presentation about issues facing the public gas industry. Shryver noted that the "national gas bubble" of cheap, widely available natural gas of a few years ago has burst as sustained demand has driven costs upward. Schryver continued, stating that unless existing sources expand and new source are developed; natural gas prices will continue to rise as the economy expands. Pipeline and infrastructure security only add to these costs, according to Schryver.

The next speaker, SK Chauhan, Chairman and CEO of Utility Automation Integrators, demonstrated the "Digital City" program. Using what he called the "Mayor's Dashboard," Chauhan used computer software his company developed to show how city activities can be run through technology. Such advanced technology, according to Chauhan, can be used to enhance energy delivery by indicating precisely where problems occur and alerting the nearest municipal crews in the most expedient fashion. Cities using the Digital City program, such as Marietta and Ft Myers, have noted increased efficiency and improved management control, better equipping them to make informed decisions.

The Energy Committee adopted eight resolutions for consideration before the whole body.

Prohibiting Liability Protection For MTBE Manufacturers resolves that The U. S Conference of Mayors reaffirms its strong opposition to provisions in the House energy bill (H.R.4503) or any other legislative vehicle that would provide producers of MTBE with product liability immunity ("Safe Harbor") and urges the Congress to not to provide this liability protection for MTBE manufacturers.

Supporting The Recognition Of Greenhouse Gas Reduction Benefits of Waste-To-Energy and Other Renewable Energy Sources urges the U.S. Department of Energy, the U.S. Congress, states, counties and local governments to quantify the amount of greenhouse gas emissions avoided by the use of waste-to-energy and electricity produced from landfill gas using the U.S. Environmental Protection Agency methodology or similar method, and to grant these technologies the same incentives as provided in policy, legislation and regulation to other technologies or methods that reduce or avoid release of greenhouse gases.

Rising Fuel Costs And Affordable Natural Gas calls on Congress to pass national energy policy that ensures consumers have access to affordable energy; urges the Department of Energy to examine various methods and tools that can be used to help consumers mitigate the impact of higher prices for fuel and natural gas, and resolves that our nation's future electricity needs cannot be met almost exclusively with natural gas, but must be a reasonable combination of efforts that include energy conservation, energy efficiency, renewable energy, nuclear energy and clean coal technology.

Adequate Funding of The Weatherization Energy Assistance Program urges Congress to pass energy legislation that fully and adequately funds the Department of Energy's Weatherization Assistance Program.

Supporting A Generator's Title To Renewable Energy Credits and Other Environmental Benefits Produced From The Generation of Renewable Energy Sources urges Congress and the Administration, the Federal Energy Regulatory Commission, Public Service Commissions and states to recognize that the waste-to-energy generator has legal title to the renewable energy credits unless otherwise stated in contract between the generator and the buyer of renewable power.

Support For Incentives For Utility Developers of Clean, Technologically Advanced And Renewable Energy Resources urges Congress and the Administration to provide incentives to all electricity providers necessary to promote a diverse mix of domestic energy fuel sources, including wind, solar, biomass, landfill gas, geothermal, incremental hydropower, fuel cells, clean coal, nuclear energy, and other energy sources and to reauthorize and fully fund the Renewable Energy Production Incentive (REPI) program.

Mandatory Electric Reliability Standards calls on Congress to pass national energy policy that will ensure our electric transmission system will continue to meet the nation's need for reliable and affordable electricity and that it includes mandatory and enforceable national reliability standards.

Promoting Domestic Sources of Energy for America resolves that The United States Conference of Mayors endorse, pending completion of appropriate environmental review, a project to bring Alaska gas to market and that any such project must ensure full pipeline safety to protect the public and environment and encourages the Congress to pass legislation providing incentives for construction of an Alaska natural gas pipeline, whose construction costs are estimated at $20 billion.