Dear Mayor:

On Tuesday, June 12, the Senate began consideration of S 1419, an energy bill that includes the Energy and Environmental Block Grant for local governments sponsored by our own Senator Menendez and his colleague, Senator Sanders of Vermont.  The bill would provide grants directly to municipalities with a population of at least 35,000 or the 10 most populous cities in each state.  70 percent of the funding in the program would go directly to municipalities and 30 percent to states for distribution to the “non-entitlement” cities.  Eligible activities would be determined by the Secretary of Energy, in consultation with EPA, DOT and HUD secretaries to assist state and local governments implement energy efficiency, energy conservation and emission reduction strategies.  There is no funding associated with this bill yet but Senators Menendez and Sanders are working with leadership to get it funded.  We anticipate that the states will object to funding going directly to local governments, suggesting instead that funding be distributed to local governments through state energy offices.  Please thank Senator Menendez on this and let Senator Lautenberg know that you support the block grant.

The bill includes many controversial provisions and will likely take more than a week to complete debate.  It took Congress four years to pass the last major energy bill in 2005.  Debate will include a proposed increase in the Corporate Average Fuel Economy (CAFÉ) standards.  The Senate bill would require that cars, pickup trucks and sport utility vehicles have a combined average mileage of 35 miles per gallon by 2020. The current requirement is 27.5 miles per gallon for cars and 24 miles per gallon for light trucks.

Other controversial issues include a clarification that the bill would not pre-empt states from instituting new regulations on vehicle greenhouse gas emissions and an expansion of alternative fuels for cars and trucks, as well as electric power plants, with $25 billion in tax breaks over 10 years to promote those fuels.   Proposed amendments are expected to focus on providing specific industries competitive advantage over one another. 

An article in a recent Time magazine indicated that House Energy and Commerce Committee Chair, Representative John Dingell of Michigan, is already hard at work on developing landmark legislation on the energy issue. New Jersey Congressmen Frank Pallone and Mike Ferguson serve as members of the House Committee. Especially if you are in one of their districts, but even if you are not, please contact your own Congressman to express your support for the Sanders-Menendez Energy and Environmental Block Grant for local governments.

                                                                        Very truly yours,

                                                                        William G. Dressel, Jr.
                                                                        Executive Director