1. Fuel Efficient Vehicles: At the recent automobile show in Detroit, General Motors (GM) announced four passenger hybrid electric and fuel cell vehicles that can achieve fuel efficiency of up to 80 miles per gallon -- production prototypes of which could be available in 2001 and 2004. Ford also unveiled a prototype of a mid-size high efficiency sedan that achieves 63 miles per gallon using an advanced diesel engine. Ford also plans to develop hybrid electric and fuel cell versions of this prototype. Chrysler unveiled its full-size experimental hybrid electric vehicle with a projected 70 miles per gallon fuel economy. These technological advances were made possible through the efforts of the Partnership for a New Generation of Vehicles between the Administration, U.S. auto companies, and their suppliers.

2. Compressed Air Challenge: Air compressors represents about 3% of total industrial electricity use and 1% of total U.S. electricity consumption. In mid-January, DOE and major equipment manufacturers announced a new agreement aimed at significantly enhancing efficiency in this sector. Under the agreement, changes in equipment and operating practices are anticipated to reduce energy use in this category by 10% by 2010 at a cost savings of $150 million per year while reducing greenhouse gases by 700,000 metric tones of carbon.

3. BP Solar Opening: Last Friday, BP Solar opened its first manufacturing plant in the United States. Located outside San Francisco, the Vice President flipped a switch to start the plant. This facility will produce a new generation of thin film photovoltaic cells. Spurred by DOE's recently announced Million Solar Roof Initiative, planned plant expansions and openings by other solar cell manufacturers, as well as the President's budget request for enhanced funding for renewable technologies, demonstrate that efforts to increase market penetration based on harnessing the sun's energy are now making significant advances. In fact, the Vice President was able to announce that the private partners in the Million Solar Roofs Initiative have already announced plans for well over half the solar panels needed to get to our goal--a full ten years early.

4. VCR/TV Energy Star Program: TV and VCRs represent one of the fastest growing sources of electricity demand. Consumers spend over $1 billion annually to power VCRs and TVS that are switched off. In early January the Vice President announced a pathbreaking partnership between EPA and the major manufacturers of these electronic goods. The program is quite ambitious with a goal of achieving up to a 70% reduction in energy use when the equipment is turned off without sacrificing product quality, utility or increasing costs. The average household could cut its energy bills by 30% or $400 per year by switching to the full line of Energy Star products.

These examples further underscore the potential for energy and cost saving opportunities to reduce our emissions of greenhouse gases. The Administration is working on a more detailed economic analysis of the impact of the targets reached in Kyoto. Council of Economic Advisers Chair Janet Yellen will be prepared to discuss the analysis at a hearing next week before the Senate Foreign Relations Committee.

In sum, the Kyoto Protocol represents a significant diplomatic achievement for the United States and a key contribution to the critical effort to safeguard our children from the effects of potentially severe climatic disruption. At the same time, this effort is a work in progress. Much remains to be done if we are fully to seize the environmental and economic benefits of action on this pressing issue. We in the Administration look forward to working with Congress in the months and years ahead to further our efforts to address the risks associated with global warming in a way that enhances our environmental and economic well being.

I welcome the opportunity to visit with you today and look forward to our continued dialogue and exchange.

EXECUTIVE OFFICE OF THE PRESIDENT
COUNCIL ON ENVIRONMENTAL QUALITY
WASHINGTON, D.C. 20503

KATHLEEN ALANA MCGINTY

Kathleen A. McGinty was appointed Chair of the Council on Environmental Quality (CEQ) by President Clinton on January 5, 1995. In this capacity, Ms. McGinty serves as President Clinton's senior advisor on environment, natural resources and sustainable development issues.

As Chair of CEQ, Ms. McGinty is responsible for administering the National Environmental Policy Act of 1969, which includes coordinating federal environmental efforts and overseeing environmental reviews of major federal actions.

At President Clinton's request, Ms. McGinty led the development of a series of reforms to the Superfund prograin to improve its efficiency and effectiveness; a forest plan for the Pacific Northwest that puts people back to work as it protects ancient forests; a program to restore the Florida Everglades; an agreement for the California Bay and Delta to protect both the health of the environment and the stability of the state's water supply; programs to promote environmental technologies; a number of executive orders to enhance the environmental performance of the federal agencies by promoting recycling, reduced toxics use, etc.; and Presidential Proclamations to protect public health and our natural heritage such as the Grand Staircase-Escalante National Monument in Utah.

CEQ has led the Administration's effort to reinvent environment and natural resource programs. In this effort, the Administration is cutting paperwork, saving taxpayers money and developing new partnerships with industry, landowners and the states to provide more flexibility for the regulated community in return for better environmental results.

Prior to her appointment as Chair of CEQ, Ms. McGinty was appointed by President Clinton on January 16, 1993 to be Deputy Assistant to the President and Director of the White House Office on Environmental Policy. In that capacity, she served as the President's environmental policy advisor until the Office on Environmental Policy was merged with CEQ and Ms. McGinty was named CEQ Chair in January 1995.

Before her service in the Clinton Administration, Ms. McGinty served as then-Senator Albert Gore's senior Legislative Assistant for Energy and Environmental Policy. In this capacity, Ms. McGinty also served as Congressional Staff Coordinator for the Senate delegation to the United Nations' Conference on Environment and Development held in June, 1992 in Rio de Janeiro, as well as an Official Member of the U.S. Delegations to Negotiations on the Framework Convention on Climate Change and the Antarctic Protocol.

Ms. McGinty's academic background is in science and technology. While studying Chemistry at Saint Joseph's University, Ms. McGinty worked as a laboratory assistant for the Atlantic Richfield Chemical Company. Her research focused primarily on the development of products designed to suppress coal dust and on wastewater treatment systems.

After graduating summa cum laude with a Bachelor of Science from Saint Joseph's in 1985, Ms. McGinty studied law at Columbia University. Concentrating her activities in the law school's new Science, Law, and Technology program, Ms. McGinty developed a strong interest in Patent law. Ms. McGinty complemented her studies by working with the law firm of Cooper, Dunhamn and Moran, a New York firm specializing in patent, trademark, and copyright matters.

Upon completing her legal studies in 1988, Ms. McGinty served as a Law Clerk to the Honorable H. Robert Mayer, Court of Appeals for the Federal Circuit in Washington, D.C.

Ms. McGinty began her service in the United States Senate after being awarded the Congressional Fellowship of the American Chemical Society. As a Fellow, Ms. McGinty worked in Senator Gore's office on science education issues; legislation designed to enhance opportunities for cooperative industrial research; and initiatives to strengthen patent protections for process inventions..

Chairman SENSENBRENNER. Thank you, Ms. McGinty.

The next witness is the Honorable Jay Hakes, Administrator of the Energy Information Administration. Dr. Hakes.

STATEMENT OF THE HONORABLE JAY E. HAKES, ADMINISTRATOR, ENERGY INFORMATION ADMINISTRATION, U.S. DEPARTMENT OF ENERGY

Dr. HAKES. Thank you, Mr. Chairman, and members of the Committee for the opportunity to participate today.

The Energy Information Administration [EIA] is an agency within the U.S. Department of Energy. We conduct independent data collection and analysis on energy issues. And in keeping with our statutory authorities, our views do not necessarily reflect those of the Department of Energy, the Administration, or any other organization.

Each year, EIA publishes projections of energy trends roughly 2 decades into the future, and I think these projections can be instructive in the current discussion.

Such forecasts are risky, as the widely wrong price projections of the 1970's and early 1980's remind us. However, the modeling of energy has improved in the past decade, and the EIA model is widely reviewed and utilized by energy experts in the private and public sectors. In part, because EIA works on a nonpartisan basis, our projections serve as a great starting point for many debates about energy policy.

Last November, EIA issued its latest update on energy projections in its Annual Energy Outlook. These projections were based on current energy policies and analysis of major factors such as projected rates of economic growth, anticipated penetration of more efficient technologies, and energy price forecasts. In this update, EIA projects that U.S. carbon emissions from energy will grow to 1,803 million metric tons in the Year 2010, which is 34 percent above levels in 1990. This is shown in the graphic that is in-mytestimony, and you can see the sectoral breakdown. And it also goes to 2020 for those who are interested.

Several factors in our forecast restrained the growth of carbon emissions. The first is the economic attractiveness of generating electricity from natural gas, which leads to our conclusion that most new electric plants will utilize the least polluting of the fossil fuels and do so using very efficient generating equipment.

Second, the efficiency of energy consuming machines and appliances will likely continue to improve. The advances are most striking for refrigerators. A new refrigerator in 2010 will likely use 48 percent less energy than one sold in 1990.

There are, however, other factors in addition to those mentioned earlier that encourage the growth of carbon emissions. First, 28 nuclear plants have or are expected to retire between 1996 and 2010, reducing this noncarbon capacity by 20 percent and generation by 12 percent. Second, the expectation that fossil fuels will be available at moderate cost has raised the bar for the entry of renewable noncarbon technologies. Third, while the fuel efficiency of equipment is likely to improve over the forecast period, the gains are not expected to equal those of refrigerators or those seen generally in some earlier periods.