the Indian electric power sector through establishment of research and development consortia that link industrial and government R&D sectors and focus on advanced coal combustion technologies, renewable energy systems, advanced electric power technologies, and improved transmission and distribution technologies.

The Private Sector Energy Development Program (PSED), which stimulates and accelerates the development of private energy and power projects in developing countries by encouraging private investment in capital projects and identifying policy barriers to technology cooperation.

Environment and Energy Technology Cooperation initiative, that encompasses activities designed to facilitate technology transfer through 1) Business Opportunity Identification; 2) Venture Promotion; 3) Innovative Finance; and 4) Policy Development related to improving the trade and investment climate for environmentally beneficial energy technologies, as well as environmental services, systems, and technologies.

AID also supports innovative financing for technology cooperation in energy through such programs as The Energy Technology Innovation Fund (ETIF), the International Fund for Renewable Energy and Efficiency (IFREE) and the Environmental Enterprise Fund (EEF), to name several examples.

AID also funds on the order of $400 million per year for natural resource programs, including $100 million for tropical forestry. A substantial component of these programs supports technology cooperation. For example, A.I.D.'s $48 million Conservation of Biodiversity Project supports activities ranging from dendrological surveys to ecological assessments to buffer zone development and rehabilitation of degraded lands, all emphasizing technologies suitable to developing country needs.

AID supports a $45 million Forest Resources Management Project designed to strengthen the capacity of forestry and natural resources management institutions in tropical and subtropical developing countries. The Agency is working to strengthen the base for international forestry research and the application of effective technologies to promote sustainable forestry practices.

Last January, AID, with the strong support of the U.S. private sector and other agencies such as the Department of Commerce and the Environmental Protection Agency, initiated the U.S.-Asia Environmental Partnership (U.S.-AEP), the first comprehensive regional environmental partnership program designed to bring together Asian and U.S. businesses, non-governmental organizations, and governments to enhance Asia's environment and promote economic progress.

THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY (EPA)

EPA is significantly expanding its international technology cooperation efforts, both in response to the U.S. Government's commitment to address global environmental issues and to growing demand from abroad for information and guidance on solving local and regional environmental problems. EPA's twenty-one years of experience in environmental protection covers the full range of pollution problems, including water, air, hazardous waste, pesticides and toxic substances. The agency helps countries address these problems through a range of services, including environmental information exchange, training and institutional support, technical cooperation and assistance, and related needs.

In the area of information exchange, EPA serves as the U.S. National Focal Point for INFOTERRA, the UNEP environmental information exchange and referral service. INFOTERRA/US handles over 6,000 requests per year, with nearly all originating outside the U.S. EPA has also developed a specialized series of Technical Information Packages (TIPS) on fourteen environmental issues for international dissemination, on such topics as pollution prevention and environmental impact assess

ment.

In training and institution building EPA is contributing to the U.S. Support for Eastern European Democracies (SEED) and other activities in Eastern and Central Europe by developing a series of environmental policy, risk assessment, enforcement, and risk communication. EPA has also provided support for the Budapest and Caribbean Regional Environmental Centers, and demonstration projects on constructed wetlands, sustainable agricultural practices, and environmental monitoring.

EPA is advancing cooperative initiatives on technical assistance through a number of bilateral and multilateral activities. For example, EPA is working with in-country teams of researchers to assess options for reducing CFC use and methane emissions from coal mining in China, increasing energy efficiency in the utility and transportation sectors in several Asian countries, and developing an environmental plan for the Mexican-U.S. border area. EPA also participates as a Collaborating

Center for Environmental Pollution Control under the World Health Organization, is a vital contributor to the International Cleaner Production Information Clearinghouse of the U.N. Industry and Environment Program, and routinely contributes technical experts to U.N. Technical Agencies for national or regional projects.

These examples cover only a portion of EPA's activities in technology cooperation. Ongoing efforts also focus on such key areas as enforcement, emergency preparedness, pollution prevention, and integrated environmental management planning.

THE UNITED STATES DEPARTMENT OF AGRICULTURE (USDA)

The USDA has a large reservoir of technical expertise in agricultural, forest, and natural resources sciences and management. Many of its international technology exchanges are coordinated through the Office of International Cooperation and Development (ICD). For countries with in-country funds banked at the U.S. Embassy, the USDA offers education and institution building programs. Technical experts provide assistance in the development of pilot projects to demonstrate the application of new technologies for soil conservation, crop production, and agricultural and livestock management systems. The OICD also coordinates special training programs for scientists and program managers lasting from two weeks to two years. The USDA also cooperates with other U.S. agencies to provide technical assistance. For example, the Forestry Support Program (FSP) provides technical assistance in forestry and natural resources. The FSP works with USAID and the U.S. Peace Corps to reduce forest and related natural resource deterioration threatening the resource base of the rural poor and to increase sustainable use of forest resources around the world. FSP's activities include technical consultations on tropical forestry, biological diversity, and conservation of natural resources, facilitation of exchange of technical information, and the organization and development of forestry training.

The USDA Forest Service's Tropical Forestry Program (TFP) initiated in 1990, provides training, technical assistance and support to international organizations for the sustainable management of tropical forests. In cooperation with Federal and State agencies, environmental organizations, and U.S. universities, the TFP has plans for training 1,100 people in more than 25 developing countries. In addition, the TFP has worked with the Food and Agriculture Organization of the United Nations on its global assessment of the world's tropical forests and has promoted a "twinning" relationship which links National Forests in the United States with public forests in tropical countries.

THE UNITED STATES DEPARTMENT OF COMMERCE (DOC)

The Department of Commerce through the National Oceanic and Atmospheric Administration (NOAA) works with more than 50 developing countries, providing training for local experts, on the following activities:

• systematic observations and research on earth systems;

⚫ the collection, analysis, and use of environmental data and information;

• prediction of weather, severe storms, and climate; and

• assessment of vulnerability to sea level rise and other coastal impacts of global climate change.

The International Trade Administration of the Department of Commerce sponsors numerous programs that assist developing countries in gaining access to the vast amount of commercially available technology in the United States. These programs make potential buyers and sellers of goods and services aware of each others' needs and capabilities and help put them in contact. Examples of such programs include the Certified Trade Fair Program, the Foreign Buyer Program, Trade Missions, Catalog Exhibitions, the Trade Opportunities Program. World Trader Data Reports and Commercial News USA promote information exchange. Pollution control equipment and equipment for the energy sector, both especially relevant to climate change, have been key areas of focus of these programs for many years and will continue to be in the future.

THE UNITED STATES DEPARTMENT OF ENERGY (DOE)

As part of our National Energy Strategy (NES), DOE recognizes the need to use our technology research and development capabilities to assist other countries. Much of DOE's present technology cooperation is focused on capacity building, energy efficiency and energy supply. In the area of capacity building DOE collaborates with a large number of developing countries in:

⚫ training of energy professionals and technicians,

transferring and adapting analysis methods and information,

expanding access to technology and energy practice data bases, and

• direct consultation and assistance to help countries build indigenous capabilities.

Improved capabilities to perform energy policy analysis will assist in the development and adaptation of energy technologies and practices matched to indigenous conditions and opportunities. For example, with the Mexican Petroleum Institute, DOE is helping to build monitoring and analysis tools to combat air pollution in the Mexico City valley. This cooperative effort includes development of new monitoring technologies and atmospheric, physical and chemical models that will provide energy planners in Mexico City and other Mexican urban centers a long-term, indigenous capability to identify and analyze opportunities to correct their severe air pollution conditions.

In more than 30 countries, including Egypt, India and China, assistance programs to support experts in establishing effective energy efficiency policies have been in place for over a decade. One project will demonstrate more than 60 industrial efficiency technologies in Egypt. Brazil has been assisted in instituting a national electricity conservation program that, among other purposes, will build support for improved lighting, appliances and electric motors. Many countries, including Mexico, Thailand and Brazil, are being supported in their activities to increase energy efficiency in electricity use through demand side management techniques. In addition to extensive cooperative research and exchange activities involving energy efficiency and energy supply, DOE is also developing energy technology characterization inventories for the Intergovernmental Panel on Climate Change. It this context it is collaborating with other government agencies to disseminate information to developing countries on proved, successful responses to increase introduction of new lowpollution energy technologies and increase energy efficiency.

In addition to extensive energy efficiency programs, DOE is developing energy technology characterization inventories for the Intergovernmental Panel on Climate Change. It is collaborating with other government agencies to disseminate information to developing countries on proved, successful responses to increase introduction of new low-pollution energy technologies and increase energy efficiency.

Identifying opportunities for developing countries to use traditional fuels more efficiently and to apply renewable energy is another important aspect of technology cooperation supported by DOE. Use of photovoltaics in the Dominican Republic, wind systems in Guatemala, geothermal development in Honduras and improved coal-fired technology in Poland are examples of effective technology transfers and adaptation. The interagency Committee on Renewable Energy, Commerce and Trade (CORECT) is led by DOE to support exports of renewable technologies to countries in need of them. A similar committee works to improve international cooperation on the use of more efficient coal combustion processes.

Some specific technology development and transfer projects sponsored by DOE include capture of coal mining methane, improved use of forest biomass in providing energy, development of small hydropower projects and transfer of a variety of solarpowered technologies. Technology developments having application in developing countries with indigenous supplies of fuels from industrial and farm sector biomass wastes include coupling of biomass gasifiers and highly efficient steam-injected gas turbines to reduce fossil fuel use in heating, cooking and electricity supply.

The CHAIRMAN. Thank you very much, Mr. Reinstein.
Next, we will hear from Linda Stuntz.

STATEMENT OF LINDA STUNTZ, ACTING DEPUTY SECRETARY, DEPARTMENT OF ENERGY, ACCOMPANIED BY DR. HOWARD GRUENSPECHT, ASSOCIATE DEPUTY UNDERSECRETARY FOR PROGRAM ANALYSIS

Ms. STUNTZ. Thank you, Mr. Chairman and members of the committee. I am pleased to appear before you this morning to discuss the energy policy implications of the recently concluded framework convention on climate change and actions that we have taken and proposed to limit greenhouse gas emissions. Our chief negotiator, who I would add I think did a magnificent job under very difficult circumstances in New York, has just told you, and will tell you

more I suspect about the details of that convention and how it will operate.

Let me offer only three observations on the convention from an energy policy perspective before addressing briefly the role of the National Energy Strategy and our global climate change response strategy and some questions surrounding the numbers in the "U.S. Views" documents.

First, this convention is an action-oriented package. Its signatories commit to develop action plans outlining measures that will reduce future greenhouse gas emissions and to provide projections of the expected emissions consequences of these steps. This is important for two reasons.

One, with the possible exception of the Netherlands, not a single Nation in the world has set forth a strategy to reduce future greenhouse gas emissions in anything approaching the detail with which the United States has done.

Second, the rejection by the international community of a rigid and arbitrary system of targets and timetables and its support for a flexible approach, a convention that focuses on net emissions of all greenhouse gases, will allow each Nation the flexibility to pursue meaningful emission reductions over the next decade without unwarranted economic risk. We believe that any departure from this flexible, action-oriented approach outlined in the convention would interfere with our efforts to get the convention underway, as well as posing significant risks for our domestic economy. Second, the convention also considers the need to consider new research results that affect the scientific understanding of global climate change. The importance of this was clearly established in your hearing of last week. Reviews of research commitments and actions would be done at least twice before the year 2000.

Third, the convention provides that assistance will be made available to developing countries in formulating and implementing their action plans. This includes both financial assistance and access to new technology and know-how in the fields of emissions limitation, forestry, and adaptation to potential global climate change impacts. This focus on global cooperation is especially important given the rapidly growing greenhouse gas emissions of the developing countries. With the wealth of expertise and environmentally sound energy technologies available at the Department of Energy and in our national labs, this is an area where we expect to play a significant role.

Let me turn now to the role of the National Energy Strategy and the U.S. global climate change response strategy.

The recently released "U.S. Views on Global Climate Change" outlines a multi-faceted strategy involving reduction in greenhouse gas emissions, adaptation to possible climate change, technology cooperation with other countries, and continued scientific and economic research. The National Energy Strategy makes an important contribution to reducing greenhouse gas emissions in the short term, and an even more important contribution in the long term, as the technology development efforts in it are realized.

My written testimony outlines the NES initiatives that will limit greenhouse gas emissions by stimulating investment in energy efficiency in all sectors of the U.S. economy and by increasing the

availability of energy supply technologies with reduced greenhouse gas emissions. The 94 to 4 vote on the passage of S. 2166 marked a very important milestone in our efforts to take responsible actions that would reduce future greenhouse gas emissions while meeting our need for secure, affordable energy supplies. As you know, we are working very hard to sustain your momentum through the House and to emerge from conference with a comprehensive energy bill that the President can sign. I would certainly underscore Senator Domenici's points that our success in this endeavor would be a very concrete and important step in a successful U.S. global climate change response strategy.

While energy legislation is a key component of the NES, the overall strategy is much broader than its legislative components alone. The 1-year progress report on this strategy that we issued in February describes many administrative actions that we are taking at the Department of Energy and elsewhere in the Government to implement over 90 NES initiatives.

As just one example, the Department of Energy, working with the Department of Housing and Urban Development and other Federal agencies, as well as the private sector, is making a substantial effort to increase the use of energy efficient mortgages that are good for the home buyer, good for the housing industry, good energy policy, and good for environment.

Let me turn finally to some questions surrounding stabilization, CO2, and some numbers that were issued in our "U.S. Views" document. I am aware that some confusion has arisen regarding the ease of stabilizing U.S. emissions of greenhouse gases following publication of that paper. Let me offer just four observations.

First, in the common usage of the word, stabilization refers to maintenance of a fixed level of emissions for the foreseeable future. In the parlance of the Clean Air Act, we are talking about a "cap. "U.S. Views" identifies a set of actions that are projected to hold emissions of a basket of three greenhouse gases, carbon dioxide, methane, and nitrous oxide, near their 1990 levels in the year 2000. However, these policies are not projected to stabilize emissions in the sense that I referred to earlier. Several of the actions, such as the capture of methane from landfills, are largely one-time actions. In fact, emissions of energy-related greenhouse gases are projected to rise over the next 25 years under our current assumptions until the technology development efforts of the National Energy Strategy can provide general commercial introduction of economically attractive, advanced energy supply technologies with low or no greenhouse gas emissions.

Second, projected trends in energy-related greenhouse gas emissions are heavily dependent on the rate of economic growth and energy price developments, as well as the success of the National Energy Strategy and other administration policies. As this committee is well aware, because our crystal ball that is used to develop energy pricing assumptions is almost always inaccurate to a greater or lesser degree, we think it is important that we not use today's projections and model results as the basis for a commitment to legally binding emissions targets. In the energy area, for example, Congress has used model results and projections to guide its choice of actions, but has never written those projections into binding leg