solar tax credits, the number had increased to over 200. The elimination of solar tax credits at the end of 1985 decimated the industry, and now the number of manufacturers is back below thirty. It can be argued that the tax credits were not entirely necessary or fair, and that some manufacturers were not credible. There is no question, however, that the sudden removal of such a strong incentive is no less than sabotage of a young industry. Australia, Israel, and Japan are now poised to lead the world market.

Foreign competitors are taking the lead in other renewable energy technologies. Brazil leads in ethanol production, and Israel in small turbines for solar thermal power plants. China exports small impulse turbines to the U.S. for hydroelectric plants.

The same trend is taking shape in efficiency technologies. Dutch and Japanese manufacturers are far ahead in the huge market for efficient lighting equipment. U.S. firms have only recently entered the market. Sweden and Japan have superior technology for energy efficient manufactured housing and are actively funding research and development and pursuing export markets. Japan is increasing its market share in energy efficient product lines ranging from air conditioners to electric motors, often with little response from U.S. competitors and no response from the Department of Energy.

Japan is taking over the power electronics market, once dominated by American firms, with new high efficiency, electronically controlled motors. Despite the huge market and potential energy savings, the DoE shows little interest in supporting U.S. research in this field.

Energy efficiency and renewable energy exports promise "win-win" results. The U.S. and other Western economies benefit from the foreign trade, and reductions in the use of fossil and nuclear resources promise even more important benefits for the global environment and international security. This is a rare opportunity for people concerned about these issues to advocate environmental measures which promote economic competitiveness. Recent reports from the Central Intelligence Agency and British Petroleum Company indicate that Soviet oil production will soon peak and begin to decline. This means that Eastern Europe and eventually the U.S. S. R. itself will turn to the Middle East for their fuel supply. This potential resource competition with the West would be a far greater security concern than the already tense situation in the Middle East.

China, the Soviet Union, and Eastern Europe currently account for about half of the world's coal consumption, and they hold more than half the remaining reserves. The industrial base in these nations is far more concentrated and rapidly growing in the heavily energy-intensive process industries than in the West. Unlike the Western nations, which get more energy efficient each

year, the Eastern Bloc nations are getting less efficient. If these trends continue, they provide a recipe for unprecedented levels of coal combustion and carbon dioxide release, potentially leading to significant climate changes and global environmental disaster.

Increasing Eastern Bloc energy use is creating serious environmental and security risks. These global risks are even greater than those now apparent in the West. It is therefore in the best interests of the Western nations, for both environmental and security reasons, to seek ways to introduce energy efficiency technology to the Eastern Bloc.

The potential impacts of continued energy growth trends in the Eastern Bloc are so severe that it is not an exaggeration to say that this is a matter of survival. The gravity of these problems transcend the traditional East-West military rivalries. The diversion of funds from military preparations toward energy efficiency cooperation would provide more true security than adding to each side's arsenals. Seen from this perspective, military expenditures are actually diminishing international security.

Exporting energy efficiency and renewable energy technology to the Eastern Bloc can help solve serious international problems. It is also good business. Export opportunites exist in the developing world as well, and they too promise crucial environmental and security benefits.

Already deforestation and other forms of environmental damage have caused military tensions among developing nations. Resettlement of Indonesians from overpopulated and deforested Java to Irian Jaya is causing severe environmental problems and conflict with Papua New Guinea. Military conflict between Ethiopia and Somalia, partially financed by both superpowers, was the direct result of deforestation in the Ethiopian highlands. The total military expenditures were several times greater than the United Nations estimate of the cost of reforestation.

Firewood demand in many developing countries is accelerating their severe deforestation problems. New efficient stoves, solar cookers, and biogas digesters which convert human and animal waste to methane fuel provide alternatives that are appropriate to the village scale.

Wind and photovoltaic powered water pumps can provide irrigation and clean drinking water to villages which otherwise lack adequate food and water. Photovoltaics can also provide electricity on an appropriate scale for essential services such as radio communication and medical refrigeration. Many villages

use most of their electric supplies for simple lighting, and efficient lights can provide a key to expanding the usefulness of their electric service.

In the more advanced developing nations, such as Brazil,

Singapore, and Thailand, energy is a key to sustainable development. The international lending organizations such as the World Bank have favored large capital-intensive energy production facilities, based mostly on fossil or hydro resources. Many of these projects have been environmental disasters and economic losers, contributing to the foreign debt crisis.

Continued development depends on reducing electricity supply constraints, but expanding central generating capacity is often not the most economic solution. Increased efficiency in lighting, motors, and refrigeration provides a cheaper and more reliable alternative. Implementation of efficiency improvements in developing nations faces many of the same institutional barriers as in the developed world, including consumer knowledge, subsidization, pricing, and access to capital. The World Bank and other organizations can help these nations immensely by shifting their focus from large energy production schemes toward energy efficiency and decentralized renewable sources.

In the village of Khandia, India, deforestation had depleted the village's firewood supply, and electrification was prohibitively expensive. An Integrated Rural Energy Center, based on several renewable energy technologies, was developed to harness solar and biomass energy to meet all village energy needs. Renewable energy resources successfully met the energy and economic needs of the village and reversed the pattern of deforestation and environmental damage.

The Khandia project cost the Indian government roughly $100,000, or about $100 per person served. Approximately one million villages in developing countries require the same level of energy development, so the cost of energizing the developing world with renewable resources would be about $100 billion. This estimate may be low. However, even if the true cost is ten times higher, it would still amount to less than one year's global military expenditure, which now exceeds one trillion dollars.

The cost of supplying clean water and adequate sanitation to the two billion people who lack these basic essentials has been estimated at $300 to $600 billion. Thus, it appears that both basic energy and water resources could be provided to the world's needy by diverting less than one year's military spending.

The world's enormous military expenditures cause continued environmental decline, because of the environmental impacts of military activities and because funds are diverted from environmental restoration. Global environmental degradation and resource depletion lead to further military tensions, which stimulate greater military expenditures, which cause further environmental decline, and so on. This merciless feedback loop will not stop until military conflict and environmental destruction become uncontrollable.

That's the bad news. The good news is that a similar feedback loop can operate in the opposite direction. Diverting military

3

funds into environmental conservation and renewable resources can relieve military tensions caused by environmental damage and resource depletion. This enhances international security and reduces the need for military spending, which frees more funds for environmental purposes, and so on. The result of this feedback loop will be a safer, healthier, and richer planet.

The environmental solutions, many of which depend on implementing energy efficiency and renewable resources, are known today. Ma ny environmental relationships are not well understood, and many of the promising technologies need further research. However, enough is known now to make considerable progress toward solving the Earth's urgent environmental and resource problems. Only the political will is lacking to commit the necessary human and financial resources.

I urge anyone reading this paper to use whatever means are available to you to see that this commitment is made, so that the latter, rather than the former, of the two scenarios described above, is the one that becomes reality.

Senator BUMPERS [presiding]. Our next panel will be Mr. Burns Ellison of Columbia, Nebraska; Martin Hayden, Defiance, Missouri; and Allan Sawtelle, Cincinnati, Ohio. If you will come up.

And let me just begin the remainder of this to say that we have to adjourn here at 1 o'clock. And we are going to have to abide strictly by the three minute time constraint here, I regret very much, because I know many of you have come distances to testify here. We want your whole statements entered into the record, but in the interest of trying to hear everybody and still make it by 1 o'clock, I must ask everybody to cooperate on the time constraints. Mr. Ellison.

STATEMENT OF BURNS ELLISON, COLUMBIA, NE

Mr. ELLISON. Yes. Thank you, Mr. Chairman and the others on the committee, for having us here.

My name is Burns Ellison.

I feel in some measure I have been shot out of the water, as it were, in that I had planned to speak at some length my three to five minutes on my time I spent this summer in Old Crow. But two people from the Yukon, including one person, Howard Linklater, from Old Crow has already spoken. And so, I would say this and make it more brief. And then if there is time remaining, I would like to say something else.

First of all, as an Anglo I wish to speak on behalf of the people of the village of Old Crow. Old Crow is the northern most village in the Yukon Territory and the only Indian village in the Yukon that doesn't have a road to it. Old Crow has a population of between 250 and 300 people.

The people refer to themselves as the Vuntut Gwitchin. The Vuntut Gwitchin are members of the Athabaskan language family which stretches from western Alaska to southern Alberta in Canada and east to Hudson's Bay. The Vuntut Gwitchin of Old Crow belong to the same language family as the Apache and the Navajo in the American southwest.

Old Crow has been an Anglican Church community since 1874. This past summer 76 year old Ellen Bruce of Old Crow became the first native woman in Canada to be ordained as an Anglican priest. Along with their ties to the church, however, the people still retain certain of their tribal beliefs. They have what truly can be termed a spiritual relationship to the land and a kinship with the creatures of the land.

And in light with that, this is something that a Canadian Indian once was quoted as saying in reply to a French priest, which ever since first reading it, it has always stuck in my mind. The Indian says this to the French priest. "This heaven you speak of—is it more beautiful than the country of the musk ox in summer when sometimes the mist blows over the lake and sometimes the water is blue and the loons cry very often?" And the country that I feel that, in effect, that that Canadian Indian was speaking about was the country of the coastal plain of the Arctic National Wildlife Refuge.

The other thing that I would say in the time I have remaining is that-and I would attempt to wing it at this point-is that in 1969