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Over the next several years, EPA will build upon its government/industry partnership efforts to achieve even greater greenhouse gas reductions by taking advantage of additional opportunities to simultaneously reduce pollution and energy bills. EPA will continue to break down market barriers and foster energy efficiency programs, products and technologies, and cost effective renewable energy. In 2001, EPA's climate change programs are projected to:

reduce greenhouse gas emissions from projected levels by 66 MMTCE annually through its key programs, as shown in Table 7, 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 forms of pollution, including air pollutants such as NOx, particulate matter and mercury from energy efficiency and reduce water pollution (from better fertilizer management). NOx emissions will be reduced by over 170,000 tons in 2001;

provide over $9 billion in energy bill savings to consumers and businesses that use energy efficient products for the year;

demonstrate technology for an 80 miles per gallon mid-size family sedan that has low emissions and is safe, practical, and affordable;

assist 12 to 14 developing counties and countries with economies in transition in building
their capacity to reduce emissions of greenhouse gases through cost-effective measures;
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.

Benefits of Funding Increase

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. The 2001 CCTI request of $227 million is part of the President's 5-year Climate Change Technology Initiative included in the FY 1999 Budget. 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. EPA is requesting a $124 million increase in FY 2001 funding for its CCTI programs in order to target these additional opportunities throughout all sectors of the economy.

Over the next decade, the increase in funding for EPA will deliver at least:

335 MMTCE of cumulative greenhouse gas emission reductions since 1990;

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

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

850,000 tons of NO, emissions reductions.

These additional reductions will be achieved through efforts in the key program areas as shown in Table 7.

Table 7

Overview of Greenhouse Gas Reductions from Key Program Areas in 2001And Over the Next Decade (MMTCE)

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**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.

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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 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 expected by 2010. EPA's programs will contribute more than 60 MMTCE annually per year in greenhouse gas reductions by 2010 while saving businesses and consumers about $9 billion. The efforts necessary in 2001 to achieve these 2010 goals are detailed in Table 8.

ENERGY

STAR

Buildings

and Green

Lights

ENERGY STAR Products

ENERGY

STAR

Homes

Clean

Power (2001)

Table 8. Buildings Programs: Description of Planned Activities

Within FY 2001 President's Budget Request

EPA will actively promote its new buildings bench marking tool and will work with building owners and managers to benchmark 10,000 additional buildings including 3,000 schools and 1,000 federal facilities (5,000 additional benchmarks including 1,500 schools and 500 federal facilities at current funding level).

EPA will award 2,500 additional ENERGY STAR labels to buildings that reach a benchmark score between 75 and 100 (1,250 at current funding level).

Continue to develop bench marking tools for additional space types such as healthcare, lodging, food service and sales, and public assembly, providing bench marking capabilities for 90% of the total US floor space. (Bench marking capabilities for 2 additional space types, representing a total of about 75% of total US floor space at current funding level).

Continue to actively recruit new small businesses and organizations into the ENERGY STAR Small Business program to reach over 8,000 participants by the end of 2001 (5,000 at current funding level).

Expand partnership to represent more than 19% of building square footage (17% at current funding level).

Expand Public sector work to increase the number of partnerships with schools and universities to over 1,000 (700 at current funding level), and state and local governments to over 500 (350 at current funding level).

Expand 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 energy efficient products.

Achieve 50% public recognition of the ENERGY STAR label in the U.S. (40% at current funding levels)

Expand outreach to consumers on the environmental/financial benefits of using ENERGY STAR labeled products, providing information through multiple approaches across about 80% of the United States (50% of the US at current funding levels). Recruit and support 25 new utility partners (15 at current funding levels) and 2 emerging regional market transformation collaboratives (1 at current funding). Increase coverage to 30 states (25 at current funding) and approximately 45% of the U.S. population (35% at current funding).

Work with 8 large retail chains such as Sears, Home Depot, Montgomery Wards, etc. to promote Energy Star-labeled products through strategic marketing activities (3 retail chains at current funding levels).

Design and implement an initiative for small businesses and retailers to promote ENERGY STAR equipment and products,
coordinating with ongoing utility efforts, as well as expanding beyond their reach (no effort at current funding levels).
Expand work with state and local governments on purchasing policies for ENERGY STAR products so as to save taxpayer
dollars, assisting at least 100 state and local governments to institute effective energy efficiency purchasing policies (75 at
current funding levels).

Train over 10,000 heating and cooling contractors (who meet daily with homeowners), allowing the value and benefits of
ENERGY STAR to be represented to over 2 million households (about 5,000 trainees at current funding levels).
Add 5 additional products to the ENERGY STAR family (2 at current levels).

Promote ENERGY STAR Homes in 15 geographic areas (5 at current levels)

Expand ENERGY STAR Program to all military housing and expand participation by national builders such as Pulte, Ryan and
Centex to include 75% of their housing stock (25% at current funding)

Develop ENERGY STAR Kitchen promotions with 6 utilities or market transformation groups and 2 national retail chains (3
utilities and I chain at current funding)

Develop and promote ENERGY STAR package in Remodeling with 3 utilities or market transformation groups and 1 national
chain (nothing at current funding)

Roll out National ENERGY STAR Duct Program and Air-Sealing Program and develop and roll out National Home
Improvement Label for identifying efficient existing homes (2 to 3 pilots at current levels)

Develop public information materials concerning the environmental implications of electricity choices for electricity purchasers. Develop and implement outreach plan using networks from existing partnership programs as well as networks beyond the partnership base.

Assist and develop 5 clean power projects in the buildings sector that can be case studies for cost-effective investment in clean power technologies.

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EPA will continue to build on the success of the voluntary programs in the industrial sector, focusing on reducing CO2 emissions in the extremely energy-intensive industries and continuing the highly successful initiatives to reduce methane emissions and emissions of the high global warming potential gases. EPA will expand its existing partnerships with the goals of: (1) doubling the rate of energy and resource efficiency improvements in industry between now and 2010 (working with DOE), (2) cost-effectively returning emissions of methane to 1990 levels or below by 2010, and (3) cost-effectively limiting emissions of the more potent greenhouse gases (HFCs, PFCs, SF). EPA will deliver an estimated 123 MMTCE annually by 2010 from these efforts. The efforts necessary in 2001 to achieve these 2010 goals are detailed in Table 9.

Table 9. Industry Programs: Description of Planned Activities Within FY 2001 President's Budget) Request

Climate

Wise

Combined

Heat and

Power Initiative

Recruit 100 additional partner companies, bringing the total number of partners to nearly 800 partner companies
representing nearly 15% of US industrial energy use (50 additional partners at current levels).

Expand Peer Exchange Partnership to enhance recruitment and program implementation efforts, holding 8 to 10
Peer Exchanges Partnerships across the country (4 to 6 Peer Exchanges at current levels).
Expand work with the private sector to create a market for products whose emissions have been offset or
neutralized through energy efficiency, use of renewable power and carbon sequestration, and expand efforts to
encourage industrial partners to purchase renewable energy technologies and clean power, through holding 10
state workshops in areas addressing restructuring (3 to 5 workshops at current funding levels) and by developing
tools for potential purchasers of clean power such as case studies of green power purchasing strategies and a
resource guide for potential purchasers (minimal activity at current funding levels).

Launch an initiative to enhance the production and use of less carbon intensive "blended" cements, cements
produced with some "waste materials" such as coal fly ash and blast furnace slag, beginning to reduce the current
carbon intensity of cement production 1% to 3% below current levels and displace "waste materials" destined for
landfills or being stockpiled on site (little market impact at current funding levels)

Expand outreach to 15 key State air and utility regulators to overcome regulatory obstacles and raise awareness of
the multi-pollutant benefits of CHP and policy options for accelerating new project development (5 jurisdictions
at current levels).

Assist and develop 5 clean power projects in the industrial sector that can be attractive case studies for
cost-effective investment in clean power technologies (no projects at current levels)

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