Benefits of Funding Increase Over the Next Decade

Over the next decade there are important opportunities to further reduce U.S. greenhouse gas emissions and local air pollution, and improve the U.S. economy. EPA is requesting a $124 million increase in 2001 funding for its climate programs in order to target these additional opportunities throughout all sectors of the economy. EPA will build upon its government/industry partnership efforts to achieve even greater greenhouse gas reductions and technological advances. EPA will take advantage of additional opportunities to break down market barriers and foster energy efficiency programs, products and technologies, and cost-effective renewable energy, simultaneously reducing pollution and energy bills. In 2001, EPA expects to:

♦ reduce greenhouse gas emissions from projected levels by 66 MMTCE annually (through its key programs, as shown in Table ES-3), reducing growth in greenhouse gas emissions above 1990 levels by about 20%;

reduce U.S. energy consumption from projected levels by more than 70 billion kilowatt hours annually;

reduce other air pollutants such as NOx, particulate matter and mercury through energy efficiency, and reduce water pollution through better fertilizer management (NOx emissions will be reduced by about 170,000 tons in 2001);

♦ provide about $9 billion in energy bill savings to consumers and businesses that use energy-efficient products for the year,

♦ demonstrate an optimized, cost-effective mechanical hybrid vehicle powertrain in a chassis test bed that will achieve 80 mpg without sacrificing safety or performance, and demonstrate Tier II emission levels in a unique EPA hybrid engine design utilizing renewable fuel and achieving diesel engine efficiency levels;

assist 10 to 12 developing countries and countries with economies in transition in developing strategies and actions for reducing emissions of greenhouse gases and enhancing carbon sequestration;

in close cooperation with USDA, identify and develop specific opportunities to sequester carbon in agricultural soils, forests, other vegetation and commercial products, with collateral benefits for productivity and the environment, and with carbon removal potential of up to 40 MMTCE by 2010; and

assess the consequences of global change on human health and ecosystems.

Increased funding for technology deployment is critical to cost-effectively reduce greenhouse gas emissions. Both technology deployment and technology R&D are essential elements of a balanced strategy to address climate change in both the near-term and the long-term. Technology deployment efforts help the marketplace more rapidly adopt existing yet underutilized technologies as well as to more rapidly adopt new technologies from the R&D pipeline. The FY2001 request is part of the President's 5 -year Climate Change Technology Initiative announced in the FY 1999 Budget. Over the next decade, the increase in funding for EPA will deliver at least:

an additional 335 million metric tons of carbon equivalent (MMTCE) of reductions in greenhouse gas emissions (as shown in Figure 2);

total reductions of about 35% of the growth in greenhouse gas emissions expected by 2010 above 1990 levels (substantially greater than the reductions of about 20% of the expected growth at current funding levels);

an additional $35 billion in energy savings to families and businesses; and

These additional reductions will be achieved through efforts in the CCTI program areas as shown in Table ES-3.

Table ES-3

Overview of Greenhouse Gas Reductions from Key Program Areas

in 2001 and Over the Next Decade (MMTCE)

** These are not the entire reductions in emissions of greenhouse gases that will result from the increased funding. The equipment and practices that private and public entities invest in can have lifetimes much longer than 10 years.

EPA's strategy to help achieve these additional environmental and economic benefits is to expand its existing programs where additional benefits can be achieved cost effectively to businesses and consumers and to launch new initiatives targeted at areas of opportunity that EPA has not addressed. With additional funding, EPA will pursue new goals through 2010, beginning by expanding in key areas. These new goals for 2010 and key areas for expansion in 2001 are outlined below.

The Buildings Sector represents one of EPA's largest areas of potential, and at the same time is one of its most successful. In the buildings sector, EPA will expand upon the successful Energy Star partnerships (including ENERGY STAR Labeling and the ENERGY STAR Buildings Program). EPA will work toward the goal of offsetting about 35% of the growth in greenhouse gas emissions above 1990 levels that is expected to occur between 1990 and 2010 in this sector through promoting energy efficiency and enhancing the use of clean energy sources. EPA programs will contribute more than 60 MMTCE per year in greenhouse gas reductions by 2010 while providing net savings to businesses and consumers of about $9 billion. Key initiatives include:

Expanded outreach to consumers on the environmental and financial benefits of using ENERGY STAR labeled products. EPA will provide information through a combination of approaches across about 80% of the United States and will raise awareness of the ENERGY STAR label as a reliable purchasing guide for more than 50% of consumers.

Expanded work with large and small retailers to enhance their efforts to identify and highlight ENERGY STAR products for consumers and organizations. EPA will partner and work with eight large retailers as well as design and implement an initiative that assists small businesses and retailers in their promotions of energy-efficient equipment.

Expanded outreach to homeowners on key actions they can take to improve the efficiency of their homes when undertaking major renovations such as kitchen and envelope improvements. EPA will work actively in 6 to 10 geographic areas as well as roll out new duct and air-sealing programs and 2 new label for existing efficient homes.

Expanded work to train heating and cooling contractors about the economic and environmental benefits of efficient equipment, training more than 10,000 contractors.

Expanded work with utilities and administrators of public benefit charge funds across 12 geographic areas and representing more than 45% of the U.S. population.

Expanded work on renewable energy power purchasing and promotion of renewable and clean energy sources. EPA will develop additional information on the environmental benefits of renewable energy technologies and products and will integrate this information into consumer and business outreach efforts.

Expanded work with new homes construction. EPA will broaden its efforts to work with new homes construction in 15 geographic regions.

Expanded work with state and local governments on purchasing policies for ENERGY STAR products so as to save taxpayer dollars. EPA would assist at least 100 state and local governments to put in place effective purchasing policies for efficient products.

Expanded work on whole building benchmarking and labeling of excellence in a wide array of building types such as office buildings, schools, retail stores, and healthcare facilities. EPA will work to benchmark an additional 10,000 buildings and label an additional 2,500 buildings. EPA will also expand the building types for which this innovative benchmarking tool exists, so that the tool can represent about 90% of today's building square footage.

Expanded work on the ENERGY STAR Buildings partnership so that it represents over 19% of building square footage as it assists organizations in implementing effective whole-building upgrades.

Expanded work to improve the efficiency of the federal government. EPA will work with other agencies to implement key pieces of the new Federal Executive Order on building energy efficiency, particularly focusing on assisting agencies to benchmark their buildings and to procure energyefficient products.

Expanded work with the public sector, assisting more than 1,000 schools and universities and assisting more than 500 state and local governments.

Expanded work with small businesses and organizations. EPA will work to recruit and assist more than 8,000 small businesses and organizations.

The Transportation Sector (cars, trucks, aircraft, marine) accounts for almost one third of the U.S. carbon dioxide emissions and represents one of the fastest growing sectors for greenhouse gas emissions. In the transportation area, EPA will accelerate its part in the Partnership for a New Generation of Vehicles and expand efforts to promote strategies to reduce vehicle miles traveled (VMT). Specifically, EPA will:

Demonstrate an optimized, cost-effective mechanical hybrid vehicle powertrain in a chassis test bed that will achieve 80 mpg without sacrificing safety or performance.

Demonstrate Tier II emission levels in a diesel-cycle engine operating on petroleum-based fuels (e.g., gasoline-like or diesel-like fuel).

Extend its PNGV engineering concepts to trucks. EPA will be at the core of a new governmentindustry initiative to develop a new generation of clean and efficient line-haul and urban trucks and buses.

Develop a new partnership with the automobile industry to demonstrate technology for a sport-utility vehicle (SUV) that will achieve three times the fuel efficiency of today's comparable models, without sacrificing towing capacity, emissions, safety, customer utility, or economics. This Environmental SUV Initiative will build on PNGV and yield a production concept vehicle by model year 2003 to address what has become the highest-selling, fastest-growing class of vehicles in the U.S. market.

Enhance both cross-Federal agency partnerships with DOT and DOE, as well as promoting partnerships with state and local governments and transportation authorities that reduce CO2 transportation-related emissions. EPA will work in partnership with the Partnership for the Advancement of Technologies in Housing (PATH) program and the National Association of Home Builders to develop a transportation system efficiency component to the PATH program. EPA will establish a Partnership Program with states, localities, and industry to recognize significant progress on the use of alternative fuel vehicles (AFVs). This effort will, for the first time, establish a significant EPA role in promoting and encouraging the use of dedicated, clean alternative fuel vehicles, such as clean natural gas (CNG), electric, and fuel-cell vehicles. This effort will be done cooperatively with DOT and DOE.

Continue its work to support voluntary regional, state and community efforts that encourage greater travel choices and alternatives to single occupancy vehicle driving, such as commuting by train, bus, bike, trip chaining, and the concept of "livable communities" - compact, walkable, transit-friendly, and mixed-use development. EPA will continue working cooperatively with the National Association of Home Builders (NAHBs) Research Center to develop and implement a "Green Development" guide and program for local NAHB chapters.

Enhance outreach efforts to raise public awareness of the connections between travel choices, cleaner driving, and climate change at the national and local levels. Providing more information on transportation and climate change involves building coalitions and partnerships and communicating with the driving public and youth on such critical issues as driving habits, trip chaining, proper vehicle maintenance, Commuter Choice programs, telecommuting, and alternative fuel options.