Q15.3 Please provide the level of funding for Climate Wise in FY 1997 and FY 1998, and the amount requested for FY 1999.

A15.3 FY1997 = $3,236,900

FY 1998 = $3,391,300

FY 1999 = not a line item

In the FY 1999 budget proposal, Climate Wise is one component of the "Industry
Initiatives" line item (see response to Question 29).

Q15.4 Please identify all recipients of the funds--by fiscal year and by amount for each recipient--identified in the response to question 15.3 above.

A15.4 EPA interprets this question to be based on the misconception that EPA provides financial assistance to partners in this program. EPA does not provide any funding to program participants. Instead, EPA uses its funding to disseminate reliable financial and technical information to program partners to assist them in making better decisions for investing their own money. With improved information through voluntary partnerships, companies are able to make

investments that simultaneously reduce greenhouse gas emissions and reduce energy bills.

Climate Change Technology Initiative Tax Credits

Q16. On page 8 of your written testimony, you state:

"The Initiative also includes $3.6 billion over five years in targeted tax cuts to help businesses and consumers buy and adopt these technologies.

Tax credits for highly fuel efficient vehicles: This credit would be $4,000 for each vehicle that gets three times the base fuel economy for its class beginning in 2003. A credit of $3,000 would be available beginning in 2000 for vehicles that get double the base fuel economy- for its class. These credits would be available to jump start these markets and would be phased out over time.

Tax credits for energy efficient equipment: These credits (all of which are subject to caps) would include a 20% credit for purchasing certain types of highly efficient building equipment, a 15% credit for the purchase of rooftop solar systems, and a 10% credit for the purchase of highly efficient combined

A16.

Please specify--by year and by tax credit--the greenhouse gas reductions expected to be achieved through the application the Climate Change Technology Initiative tax credits proposed in the President's FY 1999 budget proposal.

The President's Climate Change Technology Initiative is a comprehensive
approach to reducing greenhouse gas emissions that includes not only tax cuts,
but also spending to promote research and development of advanced technologies
and to promote the use of today's efficient technologies. Because these strategies
work together to help promote continued improvements in energy efficiency
throughout the economy, the Administration has not attributed emissions
reductions to specific tax proposals.

Industry Initiatives

Q17. On page 8 of your written testimony, you state:

“1. Industry Initiatives the President has invited entire industries
to work with the Federal government and develop greenhouse gas
plans. In addition to its partnerships with individual companies, EPA
will consult with key industries to develop voluntary but aggressive
strategies for further greenhouse gas reductions that improve overall
productivity and promote the deployment of clean technologies such
as the use of industrial combined heat and power, and to build a
program that appropriately rewards early action. EPA will seek
dialogue with key stakeholders throughout industry and the NGO
community."

Q17.1 What is EPA's current (FY 1998) level of funding for such industry
activities and what level is requested for FY 1999?

A17.1 FY 1998 Enacted = $20.9M

FY 1999 President's Budget = $51.6M

Q17.2 What does EPA have in mind about “a program that appropriately
rewards early action"?

A17.2 EPA would like to ensure that there is an appropriate incentive structure

Transportation Initiatives

Q18. On pages 8 and 9 of your written testimony, you state:

"2. Transportation Initiatives EPA will accelerate its efforts under the Partnership for a New Generation of Vehicles (PNGV), and will develop enabling technology for production prototypes for delivery and long-haul trucks that would achieve significant increases in fuel economy while meeting stringent emissions targets. The National Academy of Sciences has determined that EPA's renewable fuels application for 4SDI engines is the lead PNGV candidate technology. When complete, EPA's design will provide the basis for a viable and proven concept vehicle for commercialization. It will also provide a strong technical base from which to initiate additional EPA research into similar technologies for light truck application. EPA will also expand its work with state and local decision-makers to develop and implement transportation improvements that encourage "livable communities" compact, walkable and mixed use development -while reducing the growth in vehicle travel, emissions, and congestion."

Q18.1 Please provide the level of EPA funding for PNGV in FY 1997 and
FY 1998, and the amount requested for FY 1999.

In the FY 1999 budget proposal, PNGV is one component of the "Transportation" line item (see response to Question 29).

Q18.2 Please provide the level of EPA funding requested for FY 1999 to "develop enabling technology for production prototypes for delivery and long-haul trucks that would achieve significant increases in fuel economy while meeting stringent emissions targets."

A18.2 See response to Question 29.

Q18.3 Please describe EPA's "work with state and local decision-makers to develop and implement transportation improvements that encourage 'livable communities' --compact, walkable and mixed use development -- while reducing the growth in vehicle travel, emissions,