National Association of Regional Councils

Last week, NARC submitted comments to The Bureau of Labor Statistics (BLS) on its proposed definition of green jobs. This definition, which includes seven green economic activity categories and four categories for green jobs and services, will be used to measure green jobs activity in the economy. BLS’ initial definition can be found by clicking HERE. Click HERE to view NARC’s comments.

Please click HERE to access a brief summary and HERE for a detailed analysis of the HR 2847, the Jobs For Main Street Act of 2010, which was passed by the U.S. House of Representatives on December 16, 2009.

The Senate is working on a separate version that has yet to be released. Senate Democratic leaders have said they will try to advance the bill in the coming weeks, possibly in two parts - 1. tax provisions and 2. infrastructure funding. On February 11, 2010, the Senate Finance Committee released a $84 billion package of tax provisions in the Hire Incentives to Restore Employment (HIRE) Act. Click HERE for the bill text and HERE for a brief summary.

Click HERE for the Senate Democratic Jobs Agenda, which provides a glimpse into funding priorities, and HERE to view rumored Senate jobs bill infrastructure totals and general program allocations.

NARC member areas of interest within the Senate Democratic Jobs Agenda include:

·        Surface Transportation Authorization Extension to continue investments in transportation infrastructure;

·        Build America Bonds funding mechanism for state and local governments to borrow at a lower cost and move forward public infrastructure projects;

·        Transportation Investments (including TIGER grants);

·        Water Infrastructure Investments for both drinking water and wastewater;

·        Regional Economic Development Grants through the Economic Development Administration;

·        Dislocated Worker Training Programs to retrain unemployed workers in new skills and trades.

On Monday, February 1, President Obama released his $3.834 trillion (FY09 request was $3.55 trillion) Budget for fiscal year 2011 that invests in education, clean energy, infrastructure and innovation in a push to bolster the American economy. The President, as noted in his State of the Union address, is looking to reign in spending by “ending programs that don’t work, streamlining those that do, cracking down on special interest access, and bringing a new responsibility to how tax dollars are spent.” The Budget’s projected impact on the deficit is $1.267 trillion (down from $1.556 trillion in 2010). The Budget also institutes a three-year non-security discretionary freeze that is slated to save $250 billion over the next decade. The Administration has identified more than 120 programs across the government that they believe should be terminated or reduced – generating $20 billion in savings.

Click HERE for information on the Budget’s impact on regions and local governments – please note there are many clickable links to relevant details, agency funding levels and regional interests throughout the document.

Contact Shannon Menard at shannon@NARC.org with questions or for more information.

Recently, the Federal Emergency Management Agency’s (FEMA) Grants Program Directorate announced a change to the interpretation of federal policy regarding the use of preparedness grant funds to sustain homeland security investments. According to the FEMA policy change, “grantees may use FEMA preparedness grant funding to pay for maintenance agreements, user fees, and other sustainment costs” as long as the cost of the materials purchased “fall within the performance period of the grant that was used to purchase the equipment.” This prevents grantees from using any future year preparedness grant funding to pay for additional agreements and user fees. This change would jeopardize vital local and regional planning, equipment expenses and projects that protect communities.

NARC recommended this policy be amended to reflect original Congressional intent, which encourages both the development and sustainment of regional capabilities to prevent, respond to and recover from natural and manmade disasters. NARC's recommendation would allow for flexibility in the use of homeland security grant funding for sustainment of capabilities, including the cost of user fees, equipment maintenance and ongoing training and exercise activities, no matter the original purchase timeframe or grant year. Click HERE to read NARC's letter sent to U.S. Department of Homeland Security Secretary Napolitano. Click HERE to read the "Big 7" local government associations letter. House and Senate Committees are taking separate, but coordinated action on the FEMA grants policy change.

The House Homeland Security Committee approved on Tuesday, November 17 an amended version of HR 3837 that addresses FEMA’s recent decision to no longer allow states and local governments to use the State Homeland Security Grant Program and Urban Areas Security Initiative funding for maintenance costs for equipment purchased in prior fiscal years. Senators Leahy (D-VT) and Voinovich (R-OH) released a companion bill on Wednesday, November 18; the text of that bill is not yet available.

Washington, DC (August 24, 2009) – The National Association of Regional Councils (NARC) today released its Federal Livability Framework: A Central Role for Regions. This report provides background information and recommendations on how to position regional planning organizations and their local governments at the center of a federal livability initiative that would promote comprehensive, cross-linked regional planning. The document also provides a sampling of regions – urban and rural, large and small – that are leaders in livability efforts throughout the country.

“The Livability Framework is a good example of the important work NARC is addressing in Washington on behalf of our members,” said NARC President Stephen Cassano, Selectman, Town of Manchester, CT. “This is an exciting opportunity to re-energize comprehensive regional planning and the work of regional councils at the federal level.”

NARC has been working to influence the U.S. Senate’s “Livable Communities Act” (S.1619), which would provide, through the U.S. Department of Housing and Urban Development (HUD), competitive planning and implementation funding for regional planning organizations of all sizes and make ups – Councils of Governments (COGs), Metropolitan Planning Organizations (MPOs), Rural Planning Organizations (RPOs), etc. – to perform comprehensive, integrated regional planning that addresses sustainable growth through strategic and coordinated regional transportation, economic, environmental, land use and housing planning, and implementation. It would also require collaboration among pertinent federal agencies to break federal silos.

NARC intends to use the Livability Framework in a variety of ways:

• to guide the HUD Sustainable Communities Initiative, which is provided $150 million in both the House-passed and Senate fiscal year 2010 Transportation-HUD appropriations bills, to promote integrated housing and transportation planning on both the regional and local levels;
• to reinforce the focus of the Sustainable Communities Partnership among HUD, U.S. Department of Transportation (DOT) and U.S. Environmental Protection Agency (EPA);
• to educate several committees of jurisdiction in both chambers of Congress;
• to guide federal legislative efforts, including a standalone livability bill, transportation authorization, climate change, etc.;
• to educate the Administration and specific federal agencies as they refine their agenda;
• to ensure federal efforts – policy, technical and programmatic – recognize and include regional comprehensive planning as a core element;
• to promote our member’s proactive work in this area; and,
• to engage our association partners.

To date, NARC’s Federal Livability Framework has been well received by Congressional staff and select federal agencies such as DOT, EPA and HUD, and has been included in the Congressional Record as a part of recent Senate Environment and Public Works hearing testimony on the Economic Development Administration (EDA).

Click here to access NARC’s Federal Livability Framework.

NARC recently asked the Federal Highway Administration to reconsider its decision to rescind money from metropolitan planning. Given the legal requirements tied to metropolitan planning, NARC feels, along with this letters’ partnering organizations, reducing the ability of our regions to effectively plan and deliver job-producing transportation infrastructure projects will impact not only the local government which MPOs serve, but also open MPOs up to legal challenges on the effectiveness of their process.

In light of the fiscal challenges faced by local governments, as well as their responsibility to implement projects funded through the American Recovery and Reinvestment Act, NARC and its sister organizations recommend to FHWA that they reconsider the decision to rescind metropolitan planning funds. The full letter may be viewed HERE.

NARC's President Stephen Cassano, Selectman, Manchester, CT, submitted testimony to the Senate Environment and Public Works Committee on "Transportation Role in Climate Change and Reducing Greenhouse Gas Emissions." Click HERE to read President Cassano's statement.

The Senate Committee held this hearing on Tuesday, July 14 and featured testimony from two panels. Click here for more information on the hearing.

Panel 1
The Honorable Ray LaHood
Secretary, U.S. DOT

The Honorable Regina McCarthy
Assistant Administrator, Office of Air and Radiation, US EPA

Panel 2

The Honorable Ralph Becker
Mayor, Salt Lake City, Utah

David Bragdon
President, Portland Metro Council

Steve Winkelman
Director of Adaptation and Transportation Programs, Center for Clean Air Policy

Ray Kuntz
Chief Executive Officer, Watkins and Shepard Trucking

The Senate Environment and Public Works Committee today, by a vote of 18-1, took the first legislative step today to extend the SAFETEA-LU, the current highway and transit spending law, which expires in September. This is in effort to prevent the Highway Trust Fund from becoming insolvent, while giving Congress more time to work on a full, six-year transportation authorization. This effort is a "clean" (without policy or technical changes) extension of funding for highways and other programs under the committee's jurisdiction, and authorizes a total of nearly $61.5 billion in spending for the next 18 months. The Senate Commerce and Banking committees, which oversee rail and transit provisions, respectively, will likewise need to pass their own extensions.

Nearly two weeks ago, the White House called for a $20 billion transfer to keep the Highway Trust Fund afloat through the duration of the 18-month extension. The EPW Committee's extension does not address the transfer, but the Senate Finance Committee is working on finding additional funding.

In the House, Speaker Nancy Pelosi (D-CA) has said she would prefer to pass a full bill, and Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) has pressed ahead with his six-year authorization bill, which he would like to move this summer. Chairman Oberstar has voiced his concerns with an 18-month extension, but has been examining a shorter extension option.

On Wednesday, September 17, 2008, the Senate Environment and Public Works Committee marked up reauthorization legislation for the Economic Development Administration (EDA).  The legislation represents a compromise, five-year reauthorization developed by Sen. Baucus (D-MT) and Sen. Inhofe (R-OK).  With congress scheduled to adjourn in less than three weeks, it remains unclear when the reauthorization will be brought before the full Senate.  The House Infrastructure and Transportation Committee also has yet to move forward with an EDA reauthorization bill.

The legislation from Sen. Baucus and Sen. Inhofe would maintain funding at the 2004 levels, with $400 million available in 2009 increasing incrementally up to $500 million in 2013.  The legislation would also provide for the inclusion of Economic Development Districts (EDDs) in several programs, as well as language promoting “regional collaboration among local jurisdictions and organizations” within the planning process requirements for grants for planning. 

For more information or a copy of the currently unnumbered bill, please contact Shannon Menard at Shannon@NARC.org. 

NARC sent letters of support to applicable House and Senate Committee members and leaders urging the reauthorization of the Economic Development Administration before its September 30, 2008 expiration. EDA reauthorization is essential, particularly in these difficult economic times, to providing cost-effective programs, efficient investment of federal resources, creation and retention of jobs, generation of important tax revenues in distressed communities, and tools to achieve regional and global competitiveness. NARC encourages members and local elected officials to reach out to these Committee members and leaders, as well as their own Congressional delegation. For a draft letter with generic language supporting EDA reauthorization, please contact Shannon Menard.

The National Association of Regional Councils (NARC) sent letters to the Senate today extending its appreciation for the commendable work on the Lieberman-Warner Climate Security Act of 2008 (S 3036), which is currently being debated on the Senate floor.  In the letter, NARC respectfully submitted and called the Senate’s attention to specific recommendations for consideration in the debate of S 3036. Substantively, NARC strongly urged that the bill include more incentives and resources to local governments with direct funding to and opportunities for multi-jurisdictional regions and regional planning organizations (regional councils, councils of governments and metropolitan planning organizations) which play a critical role in transportation, land use and environmental planning that impact regional, local, state and national environmental health, economic competitiveness, workforce development, and overall quality of life. Along with the letter, NARC sent a sampling of regional organization climate change efforts.

House T&I Committee Passes Bill Supporting Public Transit

Last week the House Transportation and Infrastructure Committee approved HR 6052, the Saving Energy Through Public Transportation Act of 2008, which intends to encourage more public transportation use. It would authorize $1.7 billion over two years in grants that transit agencies could use to reduce fares and expand services. The bill would also increase the federal share for alternative-fuel-related equipment for buses, ferries and cars from 90 percent to 100 percent for fiscal 2008 and fiscal 2009, and would extend transit benefits given to all federal employees. The bill also would create a pilot program to allow private vans used as public transportation to use their own revenue to meet federal matching requirements for van purchases.

U.S. Plans Steps to Ease Congestion at Airports

To hold down ticket prices and ease airplane congestion over the New York region, the Bush administration proposed Friday to auction landing slots at two major airports, Kennedy and Newark, and to impose a limit on airline traffic at Newark.

Click HERE to read the entire New York Times article.

New National Poll Shows Americans Dislike Larger, Heavier Trucks on U.S. Highways
A new national survey shows that Americans overwhelming oppose efforts by the trucking and shipping industries to relax safety standards and allow longer and heavier trucks on the nation’s highways, a coalition of safety groups announced Wednesday. Click HERE for more information.

DEVELOPMENTBRIEF

Bush Signs One-Week Extension of Federal Farm Bill

Last week, President Bush signed into law a one week stopgap extension measure keeping the 2002 farm bill running. Currently, a Congress-passed $289 billion farm bill is sitting on the President’s desk awaiting his signature. Bush has promised to veto the bill. Based on the conference report voting, Congress holds a two-thirds majority, enough to override a veto.

Click HERE to read an opinion piece by Senator Chambliss (R-GA), ranking member of the Senate Agriculture Committee, in response to Bush veto threat.

Rural areas need new strategy, economist says

From The High Plains/Mid West Ag Journal

Telling more than 250 persons interested in rural development that they can no longer afford to maintain a status quo position in order to keep their part of the country vibrant, a leading rural economist said there must be a new strategy for rural America to win in the global economic race.

Dr. Mark Drabenstott, director of the Rural Policy Research Institute's (RUPRI) Center for Regional Competitiveness at the University of Missouri, spoke at the recent Governor's Forum on Colorado Agriculture at Denver.

"Globalization has made regions the new 'athletes' in the global economic race," Drabenstott said. "Every region on the planet is asking how best to run this race. A regional approach will be critical if rural America and rural Colorado has a shot at gold in this race."

Rural regions lag far behind in the race for jobs and income compared to urban areas, Drabenstott explained, because of the lack of critical mass in these regions and the heavy reliance on assembly manufacturing.

"Because of this, transformative innovation appears scant," Drabenstott said.

Globalization handicaps most rural regions. While many places in rural America are adding jobs at a faster rate than urban areas, such as rural Colorado versus metropolitan Denver, incomes are growing more slowly.

Winning the race

In order to win this global economic race, it will take a four-step approach to win, Drabenstott said. Those four steps are:

1. Craft a regional strategy.
2. Build robust regional governance.
3. Deliberately pursue innovation.
4. Grow a lot of entrepreneurs.  

A new system for prosperity must be developed in rural America, involving regions rather than small localities.

"It will involve strategy, governance, innovation and entrepreneurship," Drabenstott said.

In a sound regional strategy, regions must identify their unique competitive advantage-founded on their distinct economic assets-then chart a course to seize it and prioritize public investments to leverage it.

"Without a strategy, you will not know the 'ask' in Denver or D.C.," Drabenstott said, outlining what he called two key strategy principles.

"First, the strategy must be founded on the region's economic strengths. The era of smokestack chasing is over. Second, it must target industries where the region can build synergies around established or potential business clusters."

Regional roundtables are crucial to crafting sound regional strategies, Drabenstott said.

"The region must own it, if it's to work," he said. "This roundtable must engage public, private, nonprofit leaders. The questions that remain are who will supply the Round Table and who plays King Arthur?"

In framing robust regional governance, communities will have to stop thinking of themselves apart, and begin thinking and acting as a region, Drabenstott said.

"Much of rural America rests on the laurels of assembly manufacturing and commodity agriculture. We must look much further onto the horizon," Drabenstott said. "The key will be deliberately connecting public research with what each region does best."

This is followed by a deliberate investment in regional innovation that can lead to a world-class entrepreneurial climate.

"Creating this climate will require a change in culture, from we work for 'them' to we work for 'us,'" Drabenstott said. "That means developing entrepreneurship support systems that must be systematic in approach and regional in scope and recycling the wealth in new equity instruments.

"Simply put, don't bury your talent in the dirt."

Moving forward

Drabenstott then offered tips to the attendees on how to move forward in regional development.

"The first step is pretty easy. Identify a 'region,'" Drabenstott said. "Select the best economic direction you can and craft strategy to seize it. Figure out who does what. Build a governance group. Diagnose the region's competitive advantage. Map the region's assets and potential from a ground level view. Identify the public and private investment priorities."

Drabenstott's six questions that must be asked in identifying a region are:

–         What is the most logical economic region?

–         What is the "commuter shed"? "Retail shed"?

–         Is there compelling geography?

–         Who plays well together in the same sand box?

–         Are there historical and cultural factors to consider?

–         Is there a business cluster to unite the region?

"In building regional governance," Drabenstott said, "the questions are who are the regional champions? Who can provide sponsorship for the roundtable? Which public officials and private sector leaders will engage? Which foundations or non-profits can supply glue to hold the region together and can a university or college bolster the effort?"

Identify the trends

In diagnosing a region's competitive advantage, Drabenstott suggests identifying key economic trends in the region, such as how is the region doing against its peers and what can be learned from leaders and laggards in the region.

"Identify what are the region's existing and emerging clusters and what are the various impacts of economic options," Drabenstott added.

That leads to mapping a region's economic assets, those that are distinct or unexploited.

"Identify what it would take to unlock their potential and, finally, what are the region's biggest economic barriers," Drabenstott said. This leads to the last step of crafting a region's strategy.

"This requires presenting a menu of near-term and long-term economic options to this governance group. Identify consensus options. Prioritize public investments and leverage the 'ask' with the governance group along with near-term and long-term development steps. Launch your action steps and monitor progress against plan and evaluate progress."

Drabenstott reminded the group that globalization is handicapping most rural regions.

"Critical mass is more important than ever," Drabenstott said. "Most rural areas lack that critical mass. Thinking regionally will unite people behind a common set of goals to help rural America win the global economics 'Olympics.'"

HOMELANDSECURITYBRIEF

DHS Announced FY08 Infrastructure Grants

Last week, the Department of Homeland Security announced it is awarding $844 million for FY08 aimed at preventing improvised explosive device attacks, enhancing communications and improving information and analysis in the nation’s ports, ground transportation sector and critical infrastructure. This reflects an increase of almost $189 million over last year in grant programs including Port Security, Transit Security, Intercity Bus Security, Trucking Security and a Buffer Zone Protection.

Grant Increases

–         Transit grants: FY07=$257 million; FY08=$350 million

–         Port grants: FY07=$312 million; FY08=$388 million

–         Rail grant (for Amtrak): FY07=$13.5 million; FY08=$25 million.

DHS also added a rail freight security grant program, with a total of $5 million in awards.

Urban Area Grantees

–         New York City: FY07=$98 million; FY08=$175 million.

–         Los Angeles: FY07=$11.4 million; FY08=$13.5 million.

–         San Francisco: FY07=$22.2 million; FY08=$25.4 million.

–         Washington, D.C: FY07=$29.4 million; FY08=$38.4 million.

–         Philadelphia: FY07=$15.6 million; FY08=$18.8 million.

–         Atlanta: FY07=$5.5 million; FY08=$6.4 million.

–         Chicago: FY07=$20.6 million; FY08=26 million.

–         Boston: FY07=$24.7 million; FY08=$29.3 million.

A report the department issued Friday details the fiscal 2008 breakdown, and its Web site contains information about the 2007 awards.

FEMA Grants

DHS and the Federal Emergency Management Agency have also released $291 million for states and localities to use in evacuation planning, resource management and recovery planning in case of a catastrophe like 2005’s hurricanes Katrina and Rita. Click HERE to read FEMA’s announcement.

ENVIRONMENTBRIEF

Overwhelmed by Lieberman-Warner cost estimates? Tune in this week for help

From Environment and Energy Daily

The Senate Energy and Natural Resources Committee meets tomorrow to sift through a dizzying array of cost estimates on a major global warming bill expected on the floor early next month.

At least 10 economic studies have been done to date on S. 2191, a bill from Sens. Joe Lieberman (I-Conn.) and John Warner (R-Va.) that would curb heat-trapping greenhouse gas emissions by midcentury by about 70 percent below 2005 levels.

In many ways, each study reflects the authors' unique perspective, making them difficult to compare and contrast. Still, interested parties on and off Capitol Hill will sort through all the numbers in preparation for the floor battle to come.

Among those planning media or other outreach events this week on the costs of the Lieberman-Warner climate bill: the U.S. Chamber of Commerce, Pew Center on Global Climate Change and Duke University's Nicholas Institute for the Environment.

CRS findings

The Congressional Research Service will testify at tomorrow's hearing. In a May 15 report obtained by E&E Daily, CRS warned of the shortcomings that come from reading too much into the half-dozen economic models done to date on the Lieberman-Warner bill.

"Long-term cost projections are at best speculative and should be viewed with attentive skepticism," CRS said.

At the same time, the CRS report does offer several findings of its own.

The nonpartisan research office determined that the U.S. economy's response to the Lieberman-Warner climate bill will reflect how new energy technologies come online to help meet the new environmental requirements. Carbon capture and storage at coal fired power plants would likely get a big boost from the legislation, CRS said, potentially accelerating its development by five to 10 years.

As for building new energy production plants and the associated infrastructure, CRS said decisions will be made largely based on how consumers respond to higher energy prices and the climate policy's built-in incentives encouraging Americans to use less energy.

Offsets -- soil sequestration, methane capture and forestry, among others -- could help cut a U.S. climate program's costs while bridging the time gap until new energy technologies are ready, CRS said.

CRS praised the Lieberman-Warner bill's Carbon Market Efficiency Board, saying it could help keep the policy's costs down by allowing firms to borrow and bank carbon allowances, and also by extending the availability of offsets and international credits.

One big question in the Lieberman-Warner bill, according to CRS, revolves around the Low Carbon Fuel Standard, a provision Sen. Lamar Alexander (R-Tenn.) added to the legislation last December as a last-minute amendment during an Environment and Public Works Committee markup.

CRS concluded that the provision, which is modeled after a California regulation, could significantly increase fuel prices and limit fuel supplies depending on how the federal rules get written and what fuels it includes.

The CRS report also urges lawmakers to consider how their work to curb U.S. emissions fit in with the larger international effort to deal with global warming. Specifically, it questioned whether the Lieberman-Warner bill requires a big enough cleanup in the United States to compel developing countries into making their own commitments. It also asked if the U.S. policy would meet broader obligations to the United Nations under a 1992 agreement to stabilize emissions.

Turning to EPA, EIA, CBO

Other witnesses at the Senate hearing include U.S. EPA, the Energy Information Administration and Congressional Budget Office -- three government agencies that have done their own studies of the Lieberman-Warner bill.

The EPA model released in March, for example, found Americans should expect to pay more for energy and transportation if the climate legislation became U.S. law. It also depicted a possible future energy production grid that relies on renewables, nuclear power and carbon capture and storage.

EIA's analysis also forecast the Lieberman-Warner bill would lead to higher energy bills: between $30 and $325 in 2020 and $76 and $723 by 2030, without factoring transportation-related costs.

While CRS warned against putting too much stock into long-term, broad macroeconomic findings, both EPA and EIA floated figures on what gross domestic product would look like over the next several decades.

The two studies say the U.S. economy would grow over the next two decades regardless of whether or not there is a new climate policy like that offered by the Lieberman-Warner bill. But EPA also estimated a reduction of between 1 percent and 3.8 percent of GDP growth ($238 billion to $983 billion) by 2030.

EIA said gross domestic product by 2030 would be smaller by between 0.1 percent ($58 billion) and 0.8 percent ($163 billion).

The CBO study gives a different perspective on the Lieberman-Warner bill. It determined the legislation would increase government revenue by about $1.21 trillion between 2009 and 2018 by selling off an increasing number of emission permits via auction.

Direct government spending over the same time period totals $1.13 trillion as it uses the revenue to fund deficit reductions, technology research, adaptation programs and other climate-related efforts, CBO said.

The Massachusetts Institute of Technology, Natural Resources Defense Council, Environmental Defense Fund, National Association of Manufacturers, National Mining Association and American Petroleum Institute have all released studies on Lieberman-Warner.

To date, none of the studies have tried to assess the potential benefits of reducing U.S. emissions -- a tricky proposition on its own that raises all sorts of complex ethical questions and pushes many models beyond their limits. EPA officials have said they are developing models to quantify a climate bill's benefits, and environmental groups are planning to release their own work on the subject in the coming days.

Schedule: The hearing is tomorrow at 10 a.m. in 366 Dirksen.

Witnesses: Brent Yacobucci, Congressional Research Service; Larry Parker, Congressional Research Service; Howard Gruenspecht, deputy administrator, Energy Information Administration, U.S. Department of Energy; Peter Orszag, director, Congressional Budget Office; and Brian McLean, director, Office of Atmospheric Programs, Office of Air and Radiation, U.S. EPA.

Click here to read the CRS report.

Click here for the EPA analysis.

Click here for the EIA analysis.

Click here for the CBO analysis.

Click here for the MIT analysis.

Click here for the NRDC analysis.

Click here for the Environmental Defense Fund analysis.

Click here for the National Association of Manufacturers analysis.

Click here for the National Mining Association analysis.

Click here for the American Petroleum Institute analysis.

Report Released on US Energy Efficiency

The American Council for an Energy-Efficient Economy (ACEEE) released a 60-page report, "The Size of the U.S. Energy Efficiency Market: Generating a More Complete Picture," finding that "Given the right choices and investments in the many cost-effective but underutilized energy efficiency technologies, the United States can cost-effectively reduce energy consumption by an additional 25-30 percent or more over the course of the next 20-25 years." According to the UN Intergovernmental Panel on Climate Change (IPCC), ACEEE, McKinsey and other experts, energy efficiency is generally acknowledged to be the lowest-cost and fastest-to-deploy resource to slow the growth of carbon dioxide emissions, with positive economic impacts. ACEEE's report says, "Cost-effective energy efficiency is known as a 'no-regrets' climate policy, because it makes economic sense regardless of its climate mitigation impacts."

Key report findings include:

–         Annual investments in energy efficiency technologies currently support 1.6 million U.S. jobs. The $300 billion invested in energy efficiency in 2004 was three times the amount invested in traditional energy infrastructure.

–         Investments in energy efficiency technologies are estimated to have generated approximately 1.7 quads of energy savings in 2004 alone – roughly the equivalent of the energy required to operate 40 mid-sized coal-fired plants. (According to EIA, the United States 100.3 quads in 2004.)

–         Since 1970, energy efficiency has met about three-fourths of the demand for new energy-related services while conventional energy supply has covered only one-fourth of this demand.

–         Investments in additional energy efficiency technologies could increase the annual energy efficiency market by nearly $400 billion by 2030, resulting in an annual efficiency market of more than $700 billion – and total additional investments over the period 2008-2030 of nearly $7 trillion.

 The report finds that the buildings sector accounted for nearly 60 percent of total energy efficiency investments in 2004. The industrial sector accounted for one quarter and the transportation sector accounted for 11 percent of total efficiency investments. The largest share of related jobs is found in the buildings sector, which generated approximately two-thirds of all efficiency-related jobs (more than one million).

Click HERE for more information.

DOE Awards Grants to New Carbon Capture and Sequestration Projects

The US Department of Energy (DOE) has awarded more than $126.6 million for its fifth and sixth large-scale carbon sequestration projects. DOE says the projects, awarded to the West Coast Regional Carbon Sequestration Partnership (WESTCARB) and the Midwest Regional Carbon Sequestration Partnership (MRCSP), will demonstrate the ability of geologic formations to safely, permanently and economically store more than 1 million tons of CO2.

EPA Seeking Comments on Renewable Fuel Standard Waiver Request

Last Friday, the U.S. Environmental Protection Agency (EPA) announced that it is seeking comments regarding a recent petition to reduce the volume of renewable fuels required under the Renewable Fuel Standard (RFS).  In a letter sent to EPA on April 25, 2008, Governor Rick Perry of Texas requested that the EPA cut the RFS mandate for ethanol production in half (RFS mandate for 2008 is 9 billion gallons), citing recent economic impacts in Texas.  In response, EPA will soon publish a Federal Register Notice opening a 30-day comment period on the request.

In the Energy Policy Act of 2005, which established the RFS program, provisions were included enabling the EPA Administrator to suspend part of the RFS if its implementation would severely harm the economy or environment of a state, region, or the entire country.  EPA must make a decision on a waiver request within 90 days of receiving it.   

Click HERE for more information on EPA’s Renewable Fuels Standard Program.

MISCELLANEOUSBRIEFS

Budget Conferees to Come to Agreement

House and Senate Budget conferees are set to meet this Tuesday to finalize an agreement on the two budget resolutions in play – H Con Res 312 and S Con Res 70. Adoption of a final budget will give appropriators the discretionary spending levels they need to distribute among their subcommittees and begin moving fiscal 2009 appropriations bills. Subcommittee markups are expected to begin after the Memorial Day recess.

HEARINGS&MARKUPS

Transportation

House Transportation and Infrastructure Railroads, Pipelines and Hazardous Materials Subcommittee Amtrak Reauthorization (HR 6003) mark up on 5/20/08 at 2:30pm in 2167 Rayburn.

Economic & Community Development

House Science and Technology Investigations and Oversight Subcommittee hearing on the "American Decline or Renewal? - Globalizing Jobs or Technology" on 5/22/08 at 10am in 2318 Rayburn.

House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies hearing on fiscal 2009 appropriations for programs under its jurisdiction – The Census Bureau – on TBA in 2358-A Rayburn.

Environment

House Oversight and Government Reform Committee hearing on EPA's new ozone standards on 5/20/08 at 1pm in 2154 Rayburn.

Senate Energy and Natural Resources Committee hearing on how the enactment of legislation aimed at slowing global climate change might affect the economy and current energy production on 5/20/08 at 10am in 366 Dirksen.

House Transportation and Infrastructure Committee hearing on reauthorization of Great Lakes Legacy Act on 5/21/08 at 10am in 2167 Rayburn.

Senate Agriculture Committee hearing on carbon offsets and efforts to create jobs with climate change solutions, focusing on the ways agriculture and forestry can help lower cost in a low-carbon economy on 5/21/08 at 2:30pm in 328A Russell.

Senate Foreign Relations Subcommittee on International Development and Foreign Assistance, Economic Affairs and International Environmental Protection Subcommittee hearing on "International Deforestation and Climate Change Adaptation” on TBD in 419 Dirksen (witnesses include Stuart Eizenstat - partner, Covington and Burling, representing Sustainable Forestry Management and Heather McGray - senior associate, World Resources Institute).

House Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings and Emergency Management hearing on the practical impact of national flood plain remapping on TBA in 2167 Rayburn.

House Energy and Commerce Committee mark up on HR 3754, a bill to authorize the administrator of the Environmental Protection Agency to accept, as part of a settlement, diesel emission reduction supplemental environmental projects, and for other purposes on TBA in 2123 Rayburn.

DCEVENTS

Impacts of Cap-and-Trade

U.S. Chamber of Commerce sponsors a conference titled "The Costs of Doing Business in a Cap-and-Trade World," to examine compliance issues for businesses in pending cap-and-trade legislation.

DATE: May 20, 2008

TIME: 8:15am

LOCATION: U.S. Chamber of Commerce, 1615 H St. N.W.

–         Jason Burnett, associate deputy administrator, Environmental Protection Agency

–         Ken Alex, supervising deputy attorney general, California

–         Petie Davis, manager, Sustainability Services, NSF International Strategic Registrations

–         Richard O. Faulk, partner, Gardere Wynne Sewell, LLP

–         Fiji C. George, environmental manager, Pipeline Group, El Paso Corporation

–         Jason Johnston, director, program on Law, Environment, and the Economy, University of Pennsylvania Law School

–         Eric Mayer, partner, Susman Godfrey LLP

–         Lindene Patton, vice president, Zurich American Insurance Company

–         Janet Peace, director of markets and business strategy, Pew Center on Global Climate Change

–         Charles W. Schwartz, Skadden, Arps, Slate, Meagher, and Flom LLP

      
Contact: 202-463-5682 or press@uschamber.com

Note: RSVP to contact. For more information: www.uschamber.com/events/calendar

Risk Management, Mitigation, and Renewable Energy Technology

The American Council On Renewable Energy in collaboration with the American Bar Association's (ABA) Renewable Energy Resources Committee will host a teleconference with a panel of experts who will discuss varying perspectives on how the current risk management environment is evaluated by participants in the renewable energy sector.

DATE: Wednesday, May 21

TIME: 12:00-1:30 pm ET

There is a $25 charge for this event.  Click on the following link for more information: http://www.renewableenergyinfo.org

The Summit for American Prosperity: Washington and Metro Areas Working Together

The Brookings Metropolitan Policy Program will host The Summit for American Prosperity: Washington and Metropolitan Areas Working Together. The event will take place at the Washington Hilton on Wednesday evening, June 11 and Thursday, June 12, 2008.

To attend sessions and meal functions registration is required – although there is no fee to attend the Summit.

DATE: Wednesday evening, June 11, 2008 — Thursday, June 12, 2008

LOCATION: The Washington Hilton, 1919 Connecticut Ave, NW, Washington, DC

To RSVP, please register at www.regonline.com/brookingsblueprintsummit or contact Kathleen Kruczlnicki with any questions (kkruczlnicki@brookings.edu, 202.797.6139)

NATIONALNEWS

City council labels tunnel sale a 'one time fix' for city

From The Detroit Free Press

Mayor Kwame Kilpatrick's proposal to sell Detroit's half of the Detroit-Windsor Tunnel as a stopgap budget fix was all but declared dead for this fiscal year Friday by the City Council.

http://www.freep.com/apps/pbcs.dll/article?AID=/20080517/NEWS01/805170372/1003

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Senate leader sues Beshear

From The Lexington Herald-Leader

Senate President David Williams sued Gov. Steve Beshear Friday, claiming the governor's veto of a $3.8 billion state highway spending plan is unconstitutional.

http://www.kentucky.com/210/story/407592.html

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As gas use drops, so does La. road money

From The Houma Courier

As prices rise, Louisiana drivers are buying less gas, and that means less money for state road projects.

http://www.houmatoday.com/article/20080518/ARTICLES/805180320/1211/news01&title=As_gas_use_drops__so_does_La__road_money

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State environmental group eyes East Central Indiana

From The Muncie Star Press

The 25-year-old Hoosier Environmental Council hopes to set up a regional council in this part of the state. HEC said it planned to use a $200,000 grant it received recently from the McKinney Family Foundation to help foster inter-city rail development, promote bio-power and weigh alternatives to industrial-scale hog farms.

http://www.thestarpress.com/apps/pbcs.dll/article?AID=/20080518/NEWS01/805180350/1002

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Pattern for Progress sees 'big picture' in region

From The Lower Hudson Journal News

As the president and chief executive of Pattern for Progress, a regional planning group that explores quality-of-life issues in the Hudson Valley, Jonathan Drapkin is used to looking at the big picture.

http://lohud.com/apps/pbcs.dll/article?AID=/20080518/NEWS01/805180344/-1/SPORTS

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A hefty flub on light rail

From The Kansas City Star

Mayor Mark Funkhouser of Kansas City is preparing to trot out his big regional light-rail plan based on a 25-year regional sales tax. Problem: Missouri limits this regional sales tax to 15 years, a fact of life Funkhouser’s office simply missed.

http://www.kansascity.com/news/local/story/624659.html

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Highways strained, future uncertain

From The Craig Daily Press

Colorado’s highway infrastructure cannot keep up maintenance and construction demands with its current funding, said Russell George, Colorado Department of Transportation executive director.

http://www.craigdailypress.com/news/2008/may/17/highways_strained_future_uncertain/

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REGION: Transit target of state budget axe

From The North County Times

Now that it is hard to touch highway money, public transportation is fast becoming a popular alternate target when Sacramento looks for accounts to raid to balance budgets, regional officials and transit advocates said Thursday.

http://www.nctimes.com/articles/2008/05/16/news/sandiego/z49d15d1506f983c58825744a007ed053.txt

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Disaster training exercise set at airport

From The Pittsburgh Tribune-Review

Arnold Palmer Regional Airport in Unity will be the site of an emergency response training exercise.

http://www.pittsburghlive.com/x/tribunereview/news/westmoreland/s_567986.html

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Town leaders show vision in agreeing to a proactive approach to emergency water supplies

From The Yadkin Ripple

Area leaders exhibited wisdom last week in taking a regional approach to protecting the water supply in Yadkinville.

http://www.yadkinripple.com/articles/2008/05/16/opinion/editorials/edit02.txt

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THE SPYGLASS: Transportation authority looks like it’s doing well

From The Colorado Springs Gazette

Prices are skyrocketing, and more people are being laid off by the day. Times are tough all over.

http://www.gazette.com/articles/rta_36396___article.html/tax_county.html

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Editorial: Crist should okay transit plan funding

From The St. Petersburg Times

No problem threatens the economy and quality of life in the Tampa Bay-area like our clogged transportation system. That's why it was a shining achievement this tight budget year for area legislators to secure $2-million in the budget to finance a new, regional transportation initiative — one that looks to improve roads and mass transit along a seven-county corridor on the west Gulf coast. We hope Gov. Charlie Crist does right for his home area by signing the appropriation. It has enormous potential to make it easier and cheaper for millions of Floridians to live and work here.

http://www.tampabay.com/opinion/editorials/article508750.ece

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Opposes Kaine's Transportation Proposal

From The Rockbridge Weekly News

http://www.rockbridgeweekly.com/rw_article.php?ndx=10772

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Mass transit funding input sought

From TMCnet

Chapel Hill, Durham and Carrboro officials agreed Wednesday that if the Triangle someday uses a sales-tax surcharge to finance mass transit, the planning groups that oversee transportation spending here deserve a say in how the money's spent.

http://www.tmcnet.com/usubmit/-mass-transit-funding-input-sought-/2008/05/15/3447625.htm

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Senate Passes Resolution to Let Voters Create Regional Sales Tax for Transportation

By ARIEL HART
The Atlanta Journal-Constitution
Published on: 02/20/08

The Georgia Senate overwhelmingly passed a resolution Wednesday that would allow voters to approve new transportation funding.

Senate Resolution 845 http://www.legis.ga.gov/legis/2007_08/sum/sr845.htm, sponsored by Senate Transportation Committee Chairman Jeff Mullis (R-Chickamauga), would allow voters in counties to group together and pass regional one-cent sales taxes for transportation. Eighty percent of the funds would be spent on projects in the voters' region, and the rest could be spent anywhere in the state. Of the money that goes outside the region, half would be spent on mass transit.

"We're making history, we're doing something that hasn't been done for 30 or 40 years —and that's improve transportation in Georgia," Mullis said. "It's an all inclusive bill."

The bill passed 51 to 4. Mullis said he wasn't surprised it had garnered so much support.

"Everyone is tired of sitting in traffic," he said, after the vote.

Some counties, like Cobb County, already fund transportation projects with special local sales taxes, but funding advocates say that's not nearly enough. Many of the projects that metro Atlanta boosters say the region needs to lift it out of the congestion crisis are too big for any one city or county to fund them, and the state has been either unwilling or unable to make them happen. Studies show that under the current statewide gas tax system, a large portion of metro Atlanta's taxes are siphoned off to projects in other parts of the state.

The Senate resolution's backers, including Lt. Gov. Casey Cagle, have described SR 845 as a first step. They are waiting for the House to pass its own transportation funding legislation so the two can negotiate a compromise. The House legislation would allow voters to levy a one-cent sales tax statewide, but it mandates that the state spend most of the money collected in a district on projects that are within that district.

So far, a couple of differences between the House and Senate legislation concern who picks the projects, and how much money the measures would bring in. The House measures would give the state, not the county or region, final say on what projects to fund from the money, a notion that concerns some metro Atlanta passenger rail advocates. The Senate's resolution would allow the voters in the county or region to vote on the project list. And unless every county in the state opted into the Senate's regional tax idea, overall it would bring in less money than the House version, which would be collected statewide.

Both propose constitutional amendments and voter referendums. Gov. Sonny Perdue has said he is reluctant to support any new transportation taxes.

Transportation funding currently comes mostly from the gas tax, and the state gas tax is collected in two parts. The first part is collected in cents per gallon, not cents per dollar, so it doesn't rise with inflation, but lawmakers have to vote to raise it. They've left it alone at 7.5 cents per gallon since 1971. An additional gas tax is collected at about 4 cents per dollar, only 3 cents of which go to transportation.

Staff writer Andrea Jones contributed to this report.

Bond Crisis Already Crimping States

By Daniel C. Vock, Stateline.org Staff Writer

February 15, 2008

http://www.stateline.org/live/details/story?contentId=282246

Michigan just suspended a state loan program for 8,500 students, and the Port Authority of New York and New Jersey is facing a four-fold jump in interest rates on one of its loans. Both are signs of a new bond-market crisis that is threatening to hurt other cities and states if left unchecked.

NARC sent letters to Chairwoman Boxer (D-CA) and Chairman Oberstar (D-MN) urging the expedited reauthorization of the Appalachian Regional Commission (ARC), which NARC actively and strongly suppors as a critical local and regional economic resource. NARC advises members to send letters to Boxer and Oberstar, as well as their own Congressional delegation to build additional support. A sample letter is provided for member use.

To access these letters, please visit NARC's "Policy Statements and Testimony" webpage and scroll down to Letters to Congress/Administration.

Democrats to Extend CR For Rest Of Year

         Democrats announced late yesterday evening that they plan to enact a continuing resolution for the duration of FY07, after the 109^th Congress gave up on passing individually the nine appropriations bills covering the domestic portion of the federal budget. In its final hours Friday, Congress passed a stopgap measure running through Feb. 15, and the incoming chairmen of the House and Senate Appropriations committees said they would simply extend the measure out rather than attempting to pass the leftover FY07 spending bills. President Bush is expected to submit his Fiscal Year 2008 budget and a new supplemental spending request for operations in Iraq and Afghanistan in early February.

     Obey and Byrd said they would make "limited adjustments" in that GOP-written CR to address important policy priorities, but that the extended version would have none of the earmarks contained in the remaining FY07 spending bills. The Democrats said they were placing a "moratorium" on all earmarks until reforms are put in place. "We will work to restore an accountable, above-board, transparent process for funding decisions and put an end to the abuses that have harmed the credibility of Congress," they said. Only two FY07 spending bills have been signed into law, the Defense and Homeland Security measures. That leaves about $463 billion in unfinished agency budgets that will be funded under a yearlong CR. Obey and Byrd noted the last time all the spending bills were completed separately and on time was 1994 -- the last year of Democratic control of Congress

Expectations of Altered Dynamic in 110th Congress within the Transportation Committee

Bipartisanship has long been a given on the House Transportation and Infrastructure Committee but next year that spirit could face a test, given the policy stances of the incoming chairman and ranking member. Incoming chairman, James L. Oberstar (D-Minn), and the ranking member John L. Mica (R-FL), could be considered almost polar opposites in their views, which could spell conflict.

The House Republican Steering Committee last week chose Mica over Tom Petri of Wisconsin, a more senior member of the panel who had the support of Majority Leader John A. Boehner of Ohio. Throughout 2006, Oberstar and Mica have gone in opposite directions on several issues, including foreign ownership of U.S. airlines, private baggage screeners at airports, Amtrak policy and Federal Aviation Administration (FAA) consolidation.

With an FAA reauthorization atop the committee’s agenda for next year, Oberstar and Mica could be hard-pressed to find common ground. In early 2006, Mica floated the idea of using the reauthorization process to establish a commission that would consolidate FAA facilities as a way to reduce the agency’s costs. Oberstar has said that the solution isn’t consolidation but, rather, spending more money to modernize the FAA.

The incoming chairman and other top committee Democrats also sharply criticized a request Mica submitted to the FAA in March to give airports with private screeners priority in receiving airport improvement grants. Mica defended a Bush administration proposal, which Oberstar sought to block, that would have opened the door to more foreign ownership of U.S. airlines. The administration withdrew the proposal just last week on December 5th.

Mica also has been a leading critic of Amtrak, while Oberstar has been a supporter of the passenger railroad and has said that passing a bill to reauthorize Amtrak would be a priority for the committee under his leadership. Mica has been quick to point out the railroad’s inefficiencies and pledged on Dec. 8 that he “will be on Amtrak like a hawk” next year.

The two also part ways on labor issues.

The son of an iron mine worker and union official, Oberstar has forged a tight alliance with unions. Mica, by contrast, was once referred to by the president of a federal employees union as “the most dangerous man in history” to lead the Government Reform Subcommittee on Civil Service. Mica said Dec. 8 that he looked forward to working with Oberstar, whom he described as a “close ally” and “a good friend,” adding that he thinks the committee will continue to function in a bipartisan fashion. 

The panel’s current chairman, Don Young, R-Alaska, was prevented by GOP term limits from staying on as the top Republican on the committee but was tapped Dec. 7 to become the ranking member on the Resources Committee.  Under Young and Oberstar’s leadership, the Transportation and Infrastructure panel has developed a reputation for bipartisanship that Oberstar has pledged will continue in the 110th Congress. Oberstar spokesman Jim Berard said last week that Oberstar would work hard to resolve any differences of opinion that arise.

“We’re bipartisan,” he said. “But there are things that make us Democrats and them Republicans.”

This report was generated with assistance from the following sources:  The New York Times, Washington Post, Associated Press, Reuters, The Hill, and Congress Daily.

In a struggle that may temper next year’s global warming debate, a senior senator and The outgoing Armed Services committee chairman are each laying claim to the panel’s top Republican position. Sen. John W. Warner’s (R-VA) decision to seek the spot on the Environment and Public Works Committee could elevate the Virginian over James M. Inhofe, R-Okla., the panel’s outgoing chairman. Warner is viewed as more moderate and pragmatic on environmental issues and climate change than Inhofe, who has led the fight against global warming legislation.