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energy sources. Renewable energy sources, such as geothermal, solar, and wind, are available and limited only by the cost-effectiveness of technologies to harness them.

The value of electricity to the U.S. economy continues to increase. By 2010 DOE estimates that 41 percent of the primary energy consumed in the United States will be used to generate electricity, up from 36 percent in 1992. The nation currently uses coal to generate 55 percent of the electricity it consumes; nuclear power supplies 20 percent; and the remainder is generated from oil, natural gas, and renewable energy.

Petroleum. Production of crude oil and refined products accounts for a fourth of U.S. annual energy production. Over 40 percent of the crude oil used in the United States is importedmuch of it from politically volatile regions of the world such as the Persian Gulf, which holds two-thirds of known global oil reserves. DOE expects demand for petroleum to increase, even if petroleum prices increase significantly. U.S. production of crude oil, however, is on a steady decline, which will mean greater use of imports in the future to meet demand.

Natural Gas. Natural gas accounts for another fourth of U.S. annual energy production. Natural gas reserves are found in several areas of the United States, and supplies are transported via pipeline. DOE expects consumption of natural gas to increase considerably over the next 20 years, with the bulk of gas demand met by domestic supplies.

Coal. American coal reserves are the largest in the world and supply a fourth of U.S. energy consumption. Nearly nine-tenths of domestic coal use is for electricity generation at large

power stations. DOE expects consumption of coal for electricity generation to grow as demand for electricity rises. over the next two decades.

Nuclear. Nuclear power supplies 20 percent of all U.S. electricity generation. While eight plants were under construction in 1992, no new nuclear powerplants are on order, primarily because of regulatory uncertainty, costs, and concern over nuclear waste disposal and safety. Unless these issues are resolved, the contribution of nuclear power to national energy needs is unlikely to increase.

Renewables. Renewable energy sources, including hydropower, solar, biomass, municipal wastes, wind, and geothermal energy, provide less than 10 percent of U.S. annual energy production, with hydropower as the leading source. Although half of U.S. renewable energy goes to generate electricity, the nation also uses biofuels for transportation and solar energy to heat buildings and water. Over the next 20 years, DOE expects the use of renewable fuels to increase gradually to meet more than 11 percent of U.S. energy demand.

Environmental Impacts

Over the last two decades, the United States has reduced energy-related air pollutant emissions, primarily with controls mandated by the Clean Air Act. The Clean Air Act Amendments of 1990 promise further reductions.

Lead. Between 1970 and 1990, emissions of lead declined 97 percent as a direct result of its removal from gasoline.

Particulate matter and sulfur dioxide. Over the same period, nationwide emissions of particulate matter (PM) decreased by 59 percent and sulfur dioxide emissions decreased by 26

percent. Such decreases resulted primarily from stringent controls on industrial processes and on such fuel combustion sources as electric utilities and industrial, commercial, and residential boilers. A quarter of the PM decline and a third of the sulfur dioxide decline resulted from controls on coal-fired fuel combustion sources.

Nitrogen oxide. In conjunction with an 83-percent increase in electricity generation between 1970 and 1990, nitrogen oxide emissions from electric utilities increased by 67 percent.

Carbon monoxide and volatile organic compounds. A nationwide 41percent decrease in carbon monoxide and 31-percent decrease in volatile organic compounds resulted primarily from controls on new motor vehicles.

Carbon dioxide. In 1988 U.S. carbon dioxide emissions totaled 1.3 billion metric tons, a 20-percent increase over 1970 and a reflection of the increase in population and energy use in that period. During the same period, the contribution of coal to total carbon dioxide emissions increased from 22 percent to 38 percent.

Policies and Programs

The National Energy Strategy Act of 1992 could change the American way of life by improving energy efficiency, ensuring the availability of energy supplies, and improving environmental quality. In 1992 the Bush administration implemented NES initiatives and expanded energy assistance to state and local governments. Federal agencies also implemented the President's Executive Order on Federal Energy Management. For a discussion of the Executive Order, see the Federal

Facilities Management section. The following are highlights of progress made in 1992.

Superclean Coal and Liquid Fuels

During the fourth round of the Clean Coal Technology (CCT) Program in 1991, DOE added nine demonstration projects for co-funding with industry. Of 42 current CCT projects, 3 have been completed, 10 are in operation, 9 are under construction, and 20 are in the preconstruction design phase. The first four rounds of CCT represent a federal research and development (R&D) investment of $2 billion and an industry investment of $3 billion. The President's fiscal 1993 budget requested $500 million to fund the fifth round of the CCT program.

In 1992 DOE focused its coal R&D program on the super-clean high-efficiency power generation systems needed for coal to compete as an energy source under stringent environmental requirements scheduled to take effect after the year 2000. The DOE goal is to assist the private sector in developing and producing high-quality coal-derived liquid fuels competitive with oil priced at less than $30 per barrel.

Renewable Energy

The President requested fiscal 1993 funding for renewable energy R&D at $250 million, a 65-percent increase over funding in fiscal 1989, the first year of the Bush administration. Increased R&D will accelerate application of emerging renewable energy technologies, reduce costs, improve performance, and make these technologies more competitive in the marketplace.

National Renewable Energy Laboratory. In September 1991 the President designated the Solar Energy

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*

**

Includes wood, landfill, and sewer gas, municipal solid waste, and waste heat from biomass sources.

Includes ethanol and methanol produced from biomass sources.

*** Includes electricity generation from utility wood and waste plants.

****Less than 0.005 quadrillion Btu.

Source: Energy Information Administration, Annual Energy Review, 1991, (Washington, DC: EIA, 1992), Table 107, page 243.

Research Institute in Golden, Colorado, as the National Renewable Energy Laboratory. By elevating this facility to national laboratory status, the Bush administration demonstrated a commitment to renewable energy technology.

Solar Thermal Power. In October 1991 DOE entered into a joint venture with a U.S. engine manufacturer to develop a system that uses solar energy to operate a generator capable of providing 5 kilowatts of electricity at an estimated cost of 15 cents per kilowatt hour. This system, scheduled for commercialization in five years, could

replace remotely located diesel engines for electricity generation worldwide. The President requested $27 million for solar thermal R&D in the fiscal 1993 budget.

Wind Energy. DOE completed construction of a full-scale blade-andmaterials fatigue testing facility at the Wind Energy Test Center at Boulder, Colorado. The wind energy industry uses the center to test improvements aimed at increasing the durability and life of wind turbines. Through R&D at the National Renewable Energy Laboratory, DOE demonstrated a 15- to 30

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Energy efficient lighting saves money as well as power resources.

percent improvement in the performance of wind turbine airfoils compared with those currently available. With such advances in technology, wind energy is on the verge of becoming a competitive resource for electricity generation in many areas of the country. The President requested $22 million for wind energy R&D in the fiscal 1993 budget.

Alternative Fuels

The President's fiscal 1993 budget proposed $15 million to accelerate the acquisition of new vehicles that operate on fuels other than gasoline and the conversion of current vehicles. Funding would allow the purchase and conversion of an additional 5,000 alternativefuel vehicles (AFVS). For more

information on AFVs, see the Federal Facilities Management section.

U.S. Advanced Battery Consortium. In October 1991 the President announced a 4-year $260 million joint research venture with the nation's three largest automakers and others to develop a new generation of batteries for high-performance electric vehicles. These new batteries will be lightweight and capable of increasing significantly the range of electric vehicles. This government-industry effort to address a major technological challenge is strengthening the U.S. position in the international competition for electric vehicle development.

Hybrid Vehicles. Proposed 1993 funding of $20 million would create a new government-industry consortium

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for hybrid-vehicle technology, based on the model of the Advanced Battery Consortium. This new generation of vehicles would use batteries in combination with other systems, such as fuel cells or gas turbines.

Biofuels. Proposed 1993 funding for DOE biofuel R&D for transportation was $48 million, a 35-percent increase over fiscal 1992 and a 60-percent increase over 1991. In 1991 the departments of Energy and Agriculture signed a memorandum of understanding to coordinate federal efforts in the area of biomass research. The National Renewable Energy Laboratory signed a cooperative R&D agreement with a

corn-ethanol producer to test a process that converts corn cellulose into ethanol. DOE signed a similar cooperative agreement with a major oil company to explore ethanol production from waste paper.

Energy Conservation and Efficiency

The President proposed increased funding for energy conservation R&D in the fiscal 1993 budget with a request of $330 million. This represents a doubling of DOE conservation R&D funding since 1989.

Industrial Energy Audits. In 1991 DOE added five Energy Analysis and Diagnostic Centers (EADCs) at

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