By Judy Sheahan
November 9, 2009

Philadelphia Mayor Michael A. Nutter, testifying on behalf of the Conference of Mayors, urged members of the Senate Environment and Public Works Committee to quickly pass the Clean Energy Jobs and American Power Act (S.1733) at an October 28 hearing. Nutter testified on the benefits of the bill that includes provisions to fund the Energy Efficiency and Conservation Block Grant (EECGB), a top priority for the Conference of Mayors.

A week after Nutter testified, Senate Environment and Public Works Committee Chairman Barbara Boxer (CA) moved the bill out of Committee November 5 with no Republicans present. This was done after Committee Republicans conducted a three-day boycott when the bill was to be marked up.

The Clean Energy Jobs and American Power Act, cosponsored by Senate Foreign Relations Chair John Kerry (MA) and Boxer, does the following:

• Establishes a nationwide goal of reducing greenhouse gas emissions from 2005 levels by three percent by 2012, 20 percent by 2020, 42 percent by 2030, and 83 percent by 2050;

• Establishes a cap and trade program to reduce greenhouse gas emissions on the largest emitters of greenhouse gas emissions (25,000 tons or more per year);

• Provides funding to local governments through the EECBG program;

• Promotes clean transportation options through grants to states and MPOs to reduce greenhouse gas emissions from the transportation sector;

• Establishes a demonstration program for carbon capture and sequestration technologies;

• Promotes the nuclear energy industry through a reduction in financial and technical barriers to construction;

• Creates worker transition programs and work adjustment assistance; and

• Provides resources to deal with adaptation issues as a result of global warming.

This bill, along with others passed out of various Senate Committees, is to be the basis for a comprehensive climate change and energy bill. Senate Republicans on the EPW committee expressed concern that a cap and trade bill will increase energy costs for consumers and make the United States less competitive on a global market. The Environmental Protection Agency (EPA) submitted an economic analysis of the bill and estimated that the “overall impact on the average household would be 22 to 30 cents per day ($80 to $111 per year).” Committee Republicans have indicated that they want EPA to conduct even more economic impact studies.

Nutter told the committee that, “Our nation finds itself at a difficult time with faltering national and global economies, rising national security challenges, further complicated by rising environmental threats,” but that as a nation, “we must confront these challenges with courage, vision and action, and if we do this right, we will chart a new direction that will increase our energy independence, reinvigorate our economy, and create new jobs in the process.”

Nutter thanked Boxer and the Committee for recognizing the important role that cities must play in any climate change solution and for including funding allowances for EECBG. “Cities and their metro areas are not only the economic engines of the U.S. economy; but, they also represent some of the biggest users of total energy consumed,” he said. “But cities are also a source of innovative solutions that will have a significant impact on reducing greenhouse gas emissions and energy consumption while also creating new jobs.”

Nutter outlined local examples on how this bill would help Philadelphia continue to reduce its greenhouse gas emissions, lower costs, and creating domestic jobs.

LED Lighting – Since 1997, the streets department replaced all red traffic signals with LEDs, saving $8.4 million and over 40 million tons of green house gas emissions over ten years. Using EECBG money and other leveraged funds, an additional 58,000 yellow and green traffic signals will be converted and 27,000 red LED lights will be replaced. The project will save the city $1 million in electric costs each year.

Building retrofits using a revolving loan program – With EECBG and other leveraged funds, low interest loans will be offered to commercial, industrial, and institutional property owners that wish to undertake building energy efficiency retrofit projects. In addition, $500,000 in matching grants for building energy efficiency improvements will be made available to small businesses.

Solar – In 2008, a new solar hot water system was installed at the Riverside Correctional Facility that is expected to pay for itself through lower energy costs in less than nine years. Over its useful life, the solar system will save over $1 million and reduce emissions by over one million pounds of CO2.

Building and Housing Retrofits/Job Training – Philadelphia currently spends $19 million annually on Housing Preservation and Weatherization, supporting about 3,600 projects per year. A new job training program will certify new weatherization specialists. Some of this training can be completed in as little as two weeks, allowing unemployed or underemployed workers to transition rapidly into a sector with tremendous opportunity. The total number of trainees is expected to be over 800 in the first two years of operation.

Nutter also emphasized the critical importance that the transportation sector must play in any climate change solution.

“Our nation cannot remain economically competitive if we continue down a path where petroleum is our primary source of power for the transportation sector,” Nutter said. “This means that all federally-assisted transportation investments must – as this legislation does – emphasize sustainable transportation.”

Nutter told the Committee that Philadelphia has already decreased its transportation greenhouse emissions by nearly ten percent from its 1990 levels, but that they have established a goal of further reducing emissions by ten percent by 2015.

He also outlined the stumbling blocks for achieving that goal. “My experience in Philadelphia is characteristic of so many cities that are moving forward with these kinds of investments. The single greatest challenge is obtaining the funding to meet our infrastructure needs. Steps must be taken to invest in sustainable transportation,” Nutter stated.

Given the way the bill was passed out of Committee, in the midst of a Republican boycott, it is unclear as to what Republicans will do once the bill moves to the floor. Ranking Member James Inhofe (OK) has said that if the Democrats proceeded in this manner at the Committee level, that it could disrupt progress on other legislative items.

A copy of the bill and a summary can be found on the Environment and Public Works website at www.epw.senate.gov. Mayors are encouraged to contact their Senators and tell them to promptly pass comprehensive climate change legislation.