Natural Resources Committee Home

June 15, 2007

Dear Chairman Dorgan, Senator Domenici, Chairman Obey, and Representative Lewis:

On behalf of the nation's governors, we urge Congress to support federal-state programs that assist states in promoting energy security. Specifically, we urge you to fully fund the Energy Policy Act of 2005 (EPACT 05) with appropriate funds for advanced fossil fuel and renewable energy technologies, the State Energy Program (SEP), and the Weatherization Assistance Program (WAP).

The governors believe that funds should be available for research, development, and deployment of advanced energy technologies to promote energy diversity, including incentivizing carbon sequestration techniques, encouraging next generation clean coal technology, and enhancing oil and gas recovery. Many of these projects were authorized in EPACT 05 but were never adequately funded. Governors also believe that the federal clean energy loan guarantees should be expanded and implemented as soon as practicable.

Reauthorized as part of the Energy Policy Act, SEP is the primary state-federal cooperative program addressing energy efficiency and renewable energy projects in all sectors of the economy. State Energy Offices match federal dollars with state, local and private funds to help homeowners, small businesses, schools, municipalities and hospitals save energy. A recent study by the Department of Energy's Oak Ridge National Laboratory found that each SEP dollar spent by states and territories helped save $7.22 in annual energy costs.

We urge you to fund SEP at no less than $74 million in FY 08. Such an investment will help reduce energy demand by allowing states to leverage specific investments in a variety of energy efficiency projects such as promoting Energy Star products and homes, conducting public information campaigns and preparing for energy emergencies. SEP also works with private energy service companies to assist businesses and institutions to install energy efficient technologies.

The Weatherization Assistance Program helps low-income families, the elderly, and the disabled by improving the energy efficiency of low-income housing. We urge you to fund WAP at $275 million in FY 2008. Each year the program exceeds its target and last year, weatherized approximately 100,000 homes. Increased funding would allow WAP to expand and reduce energy usage by approximately 25% in each assisted home.

Congress has an opportunity to work with states to save significant amounts of energy and make a difference in the lives of our citizens and our energy security. We look forward to working with you as the Appropriations Committee and Congress move forward in their consideration of the FY 08 spending bills.

Sincerely,