nation's economic power. EERE's investments not only lay the foundation for a more sustainable energy future but also open markets for manufacturers of advanced U.S. technology. EERE sponsors international programs to promote U.S. energy efficiency goods and services and renewable electric and related power sector technologies in international markets. The World Bank has estimated that, over the next four decades, developing countries alone will require five million megawatts of new electricity capacity to meet the needs of their citizens and their expanding economics. (The world's total installed capacity today is three million megawatts.) This demand represents a tremendous potential for job creation and technology sales, even if renewable technologies only capture a fraction of the worldwide market. EERE's work with the nation's most energy-intensive and polluting industries results in productivity enhancements and savings in energy and environmental compliance costs. By cultivating clean and energy efficient industries, EERE is helping to assure the long-term competitiveness of U.S. industry. EERE technologies also lead to greater worker productivity through lighting and other work space improvements. Environmental Quality Air pollution, particularly in urban centers, ranks high among the nation's most pressing environmental concerns. In advancing a smart energy policy, EERE programs work to mitigate and minimize the environmental costs associated with energy use. By developing technologies that improve energy efficiency in industry and buildings, EERE's programs are concurrently identifying ways to reduce energy-related air pollutants. Furthermore, EERE's work on vehicle technologies will lead to greater fuel-efficiency as well as use of alternative fuels -- both offering impressive reductions in emissions. Renewable technologies offer a cleaner, environmentally responsible option for generating power. Together, energy efficient and renewable energy technologies offer cost-effective alternatives to traditional end-of-stack pollution control technologies. They can offer states and cities attractive options in the development of State Implementation Plans to meet Clean Air Act requirements. Electric Utility Restructuring EERE is working with utilities, industry, states, and consumers to ensure that restructuring of the electric industry results in a competitive and effective electricity generation industry. Utility restructuring presents an opportunity to reduce energy costs, advance the use of energy efficient and renewable energy technologies, and provide affordable services with reduced environmental impacts. Climate Change The President's FY 1999 budget request for EERE programs is a major element of his proposal to invest $6.3 billion over five years to reduce greenhouse gas emissions to below 1990 levels by 2008 - 2012 through energy technology research and development and tax incentives. In 1997, a major study conducted by five DOE national laboratories documented the critical role that development and deployment of energy efficiency and renewable energy technologies can play in reducing greenhouse gases. Increased investments in R&D for these technologies and implementation of policies to accelerate their use can substantially reduce greenhouse gas emissions while generating cost savings, cleaner air and other benefits that significantly exceed the cost of emissions reductions. Quite simply, these technologies are of critical importance to meeting the energy and environmental challenges of our times and of the next century. ACCOMPLISHMENTS EERE programs have a compelling record of success. In transportation, over 50 EERE vehicle technologies that increase fuel efficiency and alternative fuel use are now commercially available. In industry, 104 energy saving technologies supported by DOE are now in marketplace - saving $1.8 billion since 1985. In buildings, consumer savings from just five technologies - advanced windows, electronic light ballasts, an efficient refrigeration compressor, an advanced burner for oil furnaces, and building energy software - total more than $30 billion since 1978. These savings alone are more than three times the entire R&D budget of EERE over the past twenty years. In the utility sector, renewable energy technology costs are down an average of 80% since 1980 with nearly $1 billion in U.S. renewable sales. For example, wind power costs have dropped from 40€/kWh to about 5¢/kWh. And in the federal sector, reduced federal building energy costs today have saved taxpayers more than $800 million per year as a result of efficiency and renewable energy projects. FY 1999 BUDGET REQUEST The FY 1999 budget request for EERE is $1.2 billion - up from $908 million in FY1998. This request will enable the Department to progress further in meeting the following goals. : By 2004, develop through the Partnership for a New Generation of Vehicles mid-sized cars capable of 80 miles per gallon and two-third reductions in emissions, with no compromises in safety, comfort, performance or cost. By 2010, improve the efficiency per unit output of the nation's most energy intensive industries and reduce energy-related emissions and waste by 25 percent relative to projections; By 2010, improve the energy efficiency of the nation's new homes by 50 percent; new commercial buildings by 30 to 50 percent; and existing buildings by 20 percent; By 2005, improve energy efficiency in Federal buildings by 30 percent over 1985 levels; By 2010, at least double the U.S. non-hydroelectric renewable electric generating capacity by developing a broad range of renewable energy technologies and supporting policies. The following tables provide details of our FY 1999 budget request. The sections following the tables provide descriptions of the ongoing programs and specifics on our FY 1999 budget request in the areas of industrial technologies, transportation technologies, building technologies and renewable energy technologies under the jurisdiction of the committee. 'FY 1999 request for Policy and Management includes cross-cutting management activities previously funded directly by sector programs and is therefore not comparable to FY 1997 and FY 1998 appropriations. INDUSTRIAL TECHNOLOGIES Ongoing Programs Industry consumes over a third of the energy delivered in the United States and spends tens of billions of dollars each year to avoid pollution. Seven industry groups use 82 percent of the energy used in U.S. manufacturing: pulp and paper, steel, aluminum; metal-casting, chemicals; petroleum refining, and stone, clay and glass. These industries also account for over 80 percent of air emissions and over 90 percent of the waste produced by U.S. manufacturing. The Office of Industrial Technologies (OIT) focuses on developing innovative technologies to assist major industry sectors in becoming more resource efficient, and thereby more productive and competitive. In our cornerstone industrial technology program - Industries of the Future - we work with the nation's most energy-intensive industries to focus cooperative R&D on increasing energy and resource efficiency. With the help of these technologies, these industries could save over $10 billion in industry energy costs by 2010. We have facilitated the development of visions for these industries, have signed partnership agreements and are developing detailed technology "roadmaps" with the metal-casting, glass, aluminum, forest products, steel, and chemical industries. The technology focus is different for each industry. In forest products, we are developing technologies to improve the energy efficiency of biomass and black liquor combustion processes, reduce emissions and effluents from paper mills, and decrease energy use in the drying of paper. With the steel industry, we conduct R&D to reduce nitrogen oxide and other emissions from combustion processes in steel production, and to increase recycling of metals from current waste streams. In the aluminum industry, we are developing a more efficient and cost-effective aluminum manufacturing process that uses non-carbon anodes for reduction of carbon emissions. Our partnership with the metal casting industry is resulting in software, tools and sensors to decrease defects, reduce waste and improve recycling. We work with the glass industry on more efficient combustion, furnace refractory materials, and sensors for measurement and control of production processes. Finally, with the chemicals industry we are conducting a wide range of R&D on computational fluid dynamics, catalysis, separations, and bio-processes. Research in the processing of agricultural-based feedstocks will support the chemical industry's efforts to develop renewable-based environmentally friendly products such as plastics, paints, adhesives. We are also facilitating the development of industry visions and roadmaps by other groups - most notably mining. The mining industry, which consumes over 6% of industrial energy, offers numerous opportunities for cost-effective energy savings and environmental improvements. The Industries of the Future Program, while relatively young, has already produced significant successes. For example, Oxy-Fuel Firing for the glass industry significantly reduces the energy requirements and enhances the environmental performance of glass melting furnaces. This |