Program Area

Transportation System Efficiency

PNGV

Table 5. Key Program Accomplishments for EPA's Transportation Initiatives Through 1999

Accomplishments

EPA launched a new National Commuter Choice Initiative which highlights recent changes in Federal tax law that make it easier for employers to offer a variety of commute options.

EPA continued to develop a joint outreach effort "It All Adds Up to Cleaner Air" with the U.S. Department of Transportation to raise public awareness of the connections between travel choices, traffic congestion, and air quality at the national and local level. Over 60 communities agreed to participate in this effort

EPA's Transportation Air Quality (TRAQ) Center increased its efforts to assist state and local communities to develop transportation strategies and voluntary mobile source programs that respond to unique local conditions. Specifically, the TRAQ Center provided transportation program information and tools, technical assistance, key contacts and funding sources, and partnership opportunities.

EPA continued to develop, assess, and encourage innovative, market-based strategies for the more efficient use of the overall transportation system.

EPA developed and disseminated analytical tools to assist state and regional partners in assessing the impact of the local transportation sector upon climate change.

EPA demonstrated 61 miles per gallon (gasoline-equivalent) on a midsize research chassis at 3,500 pound test weight with a state-of-the-art diesel engine and EPA-invented, patented, and developed hybrid drivetrain.

Program Area

State and

Local

Outreach Program

International

Capacity Building

Global

Change

Research

Table 6. Key Program Accomplishments for Other Initiatives Through 1999

Accomplishments

EPA continues to help State and ocal governments voluntarily complete greenhouse gas emissions inventories. Now 34
out of 35 greenhouse gas emissions inventories are completed, including 5 completed in 1999.

EPA assists State and Local governments voluntarily completing greenhouse gas emission reduction strategies. Of the
26 state plans initiated, 14 have been completed and the remaining 12 are expected before the end of 2001. Five of these
plans have identified strategies that could reduce greenhouse gas emissions by 34 MMTCE, or 2% of U.S. 2010
emissions, while saving over $600 million per year. 68 cities and counties, representing nearly 29 million people and
9% of US GHGs, have begun developing inventories and implementing plans, some already reducing over one million
tons of carbon-equivalent each year.

EPA launched demonstration, education and outreach projects with State and Local parmers and NGOs such as ICMA
and NGA to provide members with information on clean technologies, climate change science and impacts, conferences
and workshops. EPA developed a web-based state mitigation database that includes over 900 actions, with a set of case
studies llustrating some of the actions/policies taken. EPA also completed an outreach toolkit for publi:
decision-makers, including over 100 publications for use by state and local officials interested in conducting outreach
work within their communities.

EPA made notable progress in increasing the engagement of 5 developing countries on strategies to address climate
change. Technical support was provided to 4 developing countries to assist in the development of National Action
Plans.

EPA, with AID and DOE, assisted 8 of the 10 developing countries that submitted their National Communications as required under the UN FCCC.

The U.S. Initiative on Joint Implementation (US IJI) reviewed/approved 5 projects and assured approval of the host foreign governments. When fully operational, the total annual reductions will be approximately 7.3 million metric tons of carbon dioxide equivalent

EPA submitted reports on the US Greenhouse Gas Inventory and the Initiative on Joint Implementation on schedule to
the Climate Secretariat. Analyses were underway or completed to assist the USG in making key policy decisions
regarding land use change and forests; technology cooperation, and other environmental benefits of greenhouse gas
mitigation..

EPA has completed preliminary assessments of regional scale consequences of climate change at 2 geographic locations.
EPA also completed a Human Health sectoral assessment.

3.0 Program Goals and Objectives For 2001 and Beyond

3.1 Review of Requested and Enacted Budget – 1991 Through 2001

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 $117 million increase in 2001 funding for its climate technology programs in order to target these additional opportunities throughout all sectors of the economy. The programmatic areas to receive these budget increases are detailed in Table 7 and 8. EPA will build upon its government/industry partnership efforts to achieve even greater greenhouse gas reductions by taking advantage of additional opportunities to break down market barners and foster energy efficiency programs, products and technologies, and cost effective renewable energy. EPA will continue to simultaneously reduce pollution and energy bills.

3.2 Overall Benefits of Requested Increased Funding

There are significant opportunities for further pollution reductions and energy bill savings from energy efficiency programs and greater use of cost-effective renewable energy. U.S. energy consumption causes more than 85 percent of the emissions of major air pollutants such as NOx, SO, and CO2. At the same time, American families and businesses spend more than $500 billion each year on energy bills -- more than we spend on education. Technologies are available today that can cut this energy use significantly with attractive rates of return on investments. Other technologies are being developed that may provide even more dramatic opportunities -- such as a car that can reduce fuel use and greenhouse gas emissions by 2/3 without sacrificing safety and performance.

In 2001, EPA expects to:

reduce greenhouse gas emissions from projected levels by 66 MMTCE annually through its key programs, as shown in Table 9, reducing the 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 annual energy bill savings to consumers and businesses that use energyefficient products;

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 using 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.

Increasing funding for technology deployment is critical to cost-effectively reducing 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 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

3.3 Benefits of Requested Funding by Key Program

EPA's strategy to help achieve these additional environmental and economic benefits is to expand its existing programs where additional benefits can be achieved at a profit to businesses and consumers and to launch new initiatives targeted at areas of opportunity that EPA has not yet 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 additional reductions will be achieved through efforts in the key program areas as shown in Table 9.

Table 9

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.

CCTI: Buildings Sector

The Buildings Sector, which includes both homes and commercial buildings, offers a large potential for carbon reductions using technologies that are on the shelf today. However, consumers and businesses continue to invest substantial resources in equipment that is relatively inefficient, resulting in higher energy bills and higher pollution levels. The potential in commercial buildings is sizeable. The energy used to support the activities of just one office worker for one day produces over twice the pollution caused by driving to work. These emissions could be 30 percent lower if systematic investments in building systems were made. The ENERGY STAR Buildings and Green Lights Partnership provides a proven, organized approach. If all building owners took advantage of ENERGY STAR Buildings and Green Lights, by 2010, they would shrink their cumulative energy bill by $130 billion and reduce greenhouse gas pollution equivalent to eliminating the emissions from 20 million cars for the next decade.