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the most important quality of these programs is that fits are immediate. When an investment is made today efficient technology, energy use drops immediately

, aved immediately. Air pollutants, including greenhouse reduced immediately. All those savings resulting from logy deployment continue to accrue for decades to come,

enormous aggregate benefits. sored technology deployment programs already bare rican businesses and communities generate huge sarmaking sizable reductions in a number of pollutants. , schools nationwide that have joined EPA': Energy igs and Green Lights programs have increased the eir classroom lighting, while achieving large reductions rgy bills. Since 1995, EPA's programs have helped universities save more than $200 million-enough 4 million books or to hire 4,000 new teachers.

proven results of current programs continue into the future, pect these results to be expanded even much more greatly ov course of the next decade. What is more, we expect overall pro effectiveness to improve as EPA's programs mature and mo ergy-efficient technologies become available.

As Jay Hakes will note in his testimony later this mornin early market penetration of energy-efficient technologies, the of early penetration accelerated by EPA's programs, may redu ture costs through the learning and establishment of infrastru and increasing familiarity with new technology. I mention FIA's testimony because, while it recognizes so the positive aspects of EPA's programs, it is strikingly incom It focuses largely on the tax incentives, underestimates the fects, and ignores the larger context in which the tax incentive erate. Tax incentives are only one part of the Climate C Technology Initiative's balanced and integrated approach. Th tiative uses tax incentives, research and development, and nology deployment programs, in tandem, to accelerate the intr tion

and market penetration of new energy-efficient technolog analyzing only one element of that effort,

the EIA's conclusion misleading, and the Climate Change Technology Initiative's p tial of across-the-board benefits to the economy and to the en ment are overlooked.

Mr. Chairman, we look forward to working with you as we forward in our efforts to try to expand the very good results we have had with our programs for both the economy and the ronment, and look forward to your questions.

of businesses, large and small

, are protecting the envie saving money through their participation in initia. alifornia, the Allergan Company has installed a num -efficiency technologies including improved lighting

, ors, high-efficiency motors, variable-speed drives

, and ng systems in order to reduce annual carbon dioxide Imost 20 million pounds and saved $1.8 million per

Thank you.

[The statement and biography of Mr. Gardiner follow:)

ride energy-efficiency campaign by the Boeing Com

$15.7 million, while avoiding almost 150,000 metric lioxide. ne, greenhouse gas reductions due to EPA's prouivalent to the emissions for more than 22 million ved enough energy to light 35 million homes for the the year 2000, ÉPA's programs will reduce green58 million metric tons of carbon equivalent-about mitted by 15 percent of our motor vehicle fleet$8 billion in energy savings to U.S. businesses and

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elerate our investment of these programs because 3 are critical to our future environmental and eco

the year 2010, about 60 percent of U.S. greenons will be generated by manufacturing plants

, roducts that will be purchased between now and

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ned about air quality in 2010 and beyond, if we ut the effects of global warming in 2010 and be ess those concerns today in our decisions to purstock. EPA's climate change programs already better capital stock purchasing decisions, and work and innovative thinking of our corporate rtners, we have consistently surpassed our antargets for greenhouse gas emissions. 192.062 can do even more, which is why the Administra$107 million increase for its Climate Change e programs at EPA. We want to target even environment-protecting opportunities. If the

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TESTIMONY OF

DAVID M. GARDINER
ASSISTANT ADMINISTRATOR FOR POLICY
U.S. ENVIRONMENTAL PROTECTION AGENCY

BEFORE THE
SUBCOMMITTEE ON ENERGY AND ENVIRONMENT

OF THE
COMMITTEE ON SCIENCE
U.S. HOUSE OF REPRESENTATIVES

April 14, 1999

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I want to thank Chairman Calvert and Members of the Subcommittee for inviting me here today to give EPA's perspective on the FY 2000 Budget for the President's Climate Change Technology Initiative (CCTI). EPA plays a key role in CCT1 through several different programs that already have produced concrete environmental and economic benefits and improved the lives of many Americans. The President's budget proposals will allow us to multiply those benefits in the future, saving the American people billions of dollars per year in unnecessary energy costs, and avoiding millions of tons of air pollutants and greenhouse gases.

The driving force behind CCTI is the serious and growing threat posed by global warming. The basic scientific facts are virtually beyond dispute. Manmade emissions of carbon dioxide and other greenhouse gases undoubtedly are changing the composition of the earth's atmosphere. Since pre-industrial times, carbon dioxide concentrations are up about 30 percent, methane concentrations have doubled, and nitrous oxide is up about 15 percent.

Since these gases help trap the sun's radiation, over the past century the average temperature on earth has increased between a half and one degree Fahrenheit. Sea levels have risen 4 - 10 inches over the past century. The frequency of extreme rainfall events has increased throughout much of the

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TESTIMONY OF

DAVID M. GARDINER ASSISTANT ADMINISTRATOR FOR POLICY S. ENVIRONMENTAL PROTECTION AGENCY

BEFORE THE
COMMITTEE ON ENERGY AND ENVIRONMENT

OF THE
COMMITTEE ON SCIENCE
U.S. HOUSE OF REPRESENTATIVES

April 14, 1999

thank Chairman Calvert and Members of the Subcommittee for

today to give EPA's perspective on the FY 2000 Budget for the ate Change Technology Initiative (CCTI). EPA plays a key role several different programs that already have produced concrete nd economic benefits and improved the lives of many President's budget proposals will allow us to multiply those ure, saving the American people billions of dollars per year in rgy costs, and avoiding millions of tons of air pollutants and

Our view of the future is less certain, of course, but the possible - and indeed likely - consequences of steadily increasing greenhouse gas emissio with attendant rises in average temperatures and sea levels worldwide, woul widespread and very serious. The best available science suggests that over next century a worsening greenhouse effect could impose high costs on natu habitat, certain species of wildlife, coastlands, estuaries, drinking water aquif and human health.

The benefits of CCTI are not limited to global warming. Our experienc date shows that EPA's voluntary, common-sense efforts in this area also help bolster the economy, protect public health from a variety of pollutants, improv productivity, and strengthen national security as they reduce our demand for imported energy. In my opinion, they are among the best investments made our country today through the federal budget, returning $70 to the American people for every dollar spent.

The CCTI represents a balanced three-part approach to achieve these benefits:

R&D, to develop promising technologies, demonstrate their capabilities
and lower their costs;
Targeted tax credits, to support the initial stages of accelerated
deployment of innovative technologies;
Voluntary programs, to accelerate market penetration in subsequent
years.

EPA's climate change efforts are almost exclusively voluntary government-industry partnerships. They are designed to overcome marketpla barriers that block other cost-effective investments in energy-efficient and environmentally-clean technologies. These market barriers include the lack of accurate, reliable consumer information on the environmental and economic benefits of different products, low incentives for private-sector research and development, and a lack of corporate data on energy use and pollutant emissions. EPA's technology deployment programs minimize or remove these

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force behind CCTI is the serious and growing threat posed by The basic scientific facts are virtually beyond dispute. Manf carbon dioxide and other greenhouse gases undoubtedly are position of the earth's atmosphere. Since pre-industrial times, centrations are up about 30 percent, methane concentrations nitrous oxide is up about 15 percent. gases help trap the sun's radiation, over the past century the e on earth has increased between a half and one degree els have risen 4 - 10 inches over the past century. The

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e rainfall events has increased throughout much of the

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barriers in the marketplace so that businesses, households, governments, and industries can develop and deploy clean technologies much faster than they would in a business-as-usual environment.

Let me emphasize some important aspects of EPA's programs. First, they are completely voluntary; each of our 7,000 partners in private businesses, non-profit organizations, and state and local governments has chosen to participate. Second, our programs impose no regulatory costs on the private sector, on the contrary, they help our partners save money, thus making them more profitable and competitive. Third, our programs provide no financial subsidies; rather, they elicit the involvement of our partners simply because they make economic and environmental sense.

Furthermore, our programs foster earlier market penetration of costeffective, environmentally-protective technologies. By doing so, they increase the likelihood that these technologies will be adopted by non-participating companies, universities, hospitals, and state and local governments as well. Indeed, some of the technologies our programs have leveraged -- e.g., energyefficient computers are now the standard norm around the world, even in some developing countries. The broadest possible use of these technologies generates an additional economic benefit for the United States, because in many cases the technologies are developed and sold by American companies. In addition, because these technologies usually reduce emissions of many air pollutants besides greenhouse gases, they help us achieve a number of our long-term health goals.

Perhaps the most important quality of these programs is that their benefits are immediate. When an investment is made today in energy-efficient technology, energy use drops immediately. Money is saved immediately. Air pollutants, including greenhouse gases, are reduced immediately. All those savings resulting from new technology deployment continue to accrue for decades to come, resulting in enormous aggregate benefits.

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narketplace so that businesses, households, governments

, and levelop and deploy clean technologies much faster than they jess-as-usual environment. mphasize some important aspects of EPA's programs. First, tely voluntary; each of our 7,000 partners in private businesses, zations, and state and local governments has chosen to ond, our programs impose no regulatory costs on the private ntrary, they help our partners save money, thus making them nd competitive. Third, our programs provide no financial they elicit the involvement of our partners simply because they nd environmental sense.

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e, our programs foster earlier market penetration of costventally-protective technologies. By doing so, they increase these technologies will be adopted by non-participating sities, hospitals, and state and local governments as well. e technologies our programs have leveraged - e.g., energy

are now the standard norm around the world, even in some s. The broadest possible use of these technologies onal economic benefit for the United States, because in many ies are developed and sold by American companies. In ese technologies usually reduce emissions of many air eenhouse gases, they help us achieve a number of our

If

, on the other hand, we invest today in inefficient and out-of-date technologies, we will miss out on a huge opportunity to change our environmental and economic future for the better. Just as one example, 60 percent of U.S. greenhouse gas emissions in the year 2010 will be generated manufacturing plants, equipment, and products that will be purchased betwee now and then. In other words, if we are concerned about air quality in 2010 a beyond, if we are concerned about the effects of global warming in the year 2 and beyond, we can address those concerns today in the decisions we make purchase new capital stock.

EPA's CCTI programs already funded by Congress are helping Americ businesses, communities, and consumers make better investment and purchasing decisions, and those decisions are already boosting profits, improving worker productivity, and cleaning up the air. Let me give you just a few examples

Schools nationwide that have joined EPA's ENERGY STAR Buildings Green Lights programs have increased the quality of their classroom lighting while achieving large reductions in their energy bills. Since 199 EPA's programs have helped schools and universities save more than $200 million, enough money to buy 4 million books or hire 4,000 new teachers. Home builders have built more than 5,000 new ENERGY STAR Homes that use 30 percent less energy than conventional structures, saving ea homeowner $400 per year on energy costs. Hundreds of businesses, large and small, are protecting the environmer while saving money through their participation in CCTI programs. For example, in the Wisconsin headquarters building of West Bend Mutual Insurance, efficient building design is credited with saving about $125,00 per year on utility bills while improving employee productivity by about $260,000 per year.

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lost important quality of these programs is that their benefits 1 an investment is made today in energy-efficient je drops immediately. Money is saved immediately. Air reenhouse gases, are reduced immediately. All those new technology deployment continue to accrue for ilting in enormous aggregate benefits.

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