House Committee Approves $10 Billion Authorization for USCM’s Energy Efficiency Block Grant
By Debra DeHaney-Howard
July 16, 2007
The House Energy and Commerce Committee on June 27 passed comprehensive energy legislation that, for the first time, will establish a direct partnership between the federal government and cities, counties and states. During debate, the Committee voted 33-23 to include Representative Albert Wynn’s Energy Efficiency Block Grant (EEBG) amendment — originally introduced by Wynn as a stand-alone bill (H.R. 2447) — in the Committee’s energy package. The Committee-approved legislation creates a $10 billion Energy Efficiency Block Grant program, modeled after HUD’s Community Development Block Grant program (CDBG), to be administered by the Department of Energy.
“The nation’s mayors applaud the leadership of Chairman John Dingell and other members of the House Energy and Commerce Committee, for adopting legislation that will help cities reduce energy use and increase energy efficiency, helping their efforts on climate protection” said Conference President Trenton Mayor Douglas H. Palmer. “Congressman Albert Wynn’s leadership of this bi-partisan effort was absolutely critical to the Committee’s decision to incorporate this important initiative into its energy package.”
Important Milestone
The Committee’s action represents an important milestone in the Congressional legislative process on the Conference of Mayor’s priority recommendation in the Mayors’ 10-Point Plan: Strong Cities, Strong Families for a Strong America, as set forth by Palmer during the 2007 January Winter Meeting. Notably, on the eve of the Conference’s 75th Annual Meeting in Los Angeles, the U. S. Senate, voting 65-27, passed its energy package, which also included a block grant program.
“This is watershed legislation that affirms the critical role mayors play in our national effort to save energy and protect our environment,” said Conference Executive Director Tom Cochran. “Any successful national plan to reduce energy usage must include a grassroots, community-led component.”
In a statement on the Committee action, Wynn said, “In order to remain competitive and economically viable, the United States must have a comprehensive energy strategy that incorporates energy efficiency and alternative energy sources. I am proud to spearhead an effort that tackles a national problem on a local level. Local governments are particularly well-positioned to develop, implement, and promote an energy efficiency and greenhouse gas reduction strategy at the community level.” Shortly after Committee action, House Speaker Nancy Pelosi made her Energy Independence Day announcement, referencing the Committee’s action on the block grant and other energy initiatives.
New Block Grant Program
The broad energy legislation creates a new block grant program that will support community-based energy efficiency and conservation efforts. It allocates formula funds to cities of 50,000 and more, counties of 200,000 and more and all states to serve non-formula cities and counties. Like the Community Development Block Grant program, 70 percent of available funds go to formula cities and counties, with 30 percent of the amount reserved for the states. There is no state and local matching requirement. It provides flexibility to use funds for the development and annual implementation of locally-determined strategies to improve energy efficiency. In addition, the program provides one-time planning grants to local and state governments to assist in the development of energy efficiency and conservation strategies. Overall, the legislation authorizes $2 billion annually over five years, beginning October 1.
According to a new Conference survey released at its 75th Annual Meeting in Los Angeles, mayors would expand energy initiatives to encourage individuals and businesses to change energy practices, “green” commercial, residential and public buildings, and promote renewable and other alternative energy sources (go to usmayors.org for full survey results). More than 600 mayors from across the nation have signed The U.S. Conference of Mayors’ Climate Protection Agreement where mayors commit to reduce carbon dioxide emissions by seven percent from 1990 levels by 2012.
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