Federal Energy Management Program (FEMP) Table 9. FEMP Sector Summary FEMP Sector Level PMs/Accomplishments MAJOR FINDINGS FOR SECTOR LEVEL PM FEMP has developed several useful trended PMs that are consistent with the QM analysis. ADL • FEMP is developing additional PMs to track its new responsibilities in renewable energy use and · FEMP should increase the use of graphs and tables to display its PMs. MAJOR FINDINGS FOR SECTOR ACCOMPLISHMENTS FEMP sector-level accomplishments to date are consistent with historical changes in federal energy use and appear reasonable. 69-560 D-01--5 MAJOR FINDINGS FOR QM QM estimates are reasonable and no changes are needed. Slight discrepancies were found between the information contained within · After appropriate PMs are developed, future QM analyses should include the MAJOR FINDINGS FOR PLANNING UNIT PM FEMP has developed several useful trended PMs that are consistent with the FEMP is developing additional PMs to track its new responsibilities in renewable • FEMP should develop appropriate Planned Accomplishments for the period FY2002-2005. (2) There is no nel energy displaced for OTT Technology Deployment because petroleum based fuels are being replaced by ahemative fuais. However, since the alternative fuels are less costly and produce less carbon, there are energy cost savings and carbon reduction. Chairman CALVERT. Mr. Stolpman, according to my arithmetic, again, you can claim that at its current level of funding, EPA's CCTI programs would result in 100 million tons of carbon savings in 2010, which is comparable to DOE's claim for its CCTI programs, even though EPA's budget is 11 percent of DOE's. You also claim that fiscal year 2001 budget request level, which is less than 20 percent of DOE's, would result in nearly double the 2010 carbon savings of DOE. What makes your program so much more effective than DOE's? Mr. STOLPMAN. Actually, I mentioned that our programs complement each other very well earlier. One of the reasons is, our programs are designed to get existing technologies into the market. There are market barriers, there are imperfections in the market which we are able to identify and basically take existing technologies and get them out there into the hands of consumers. Our budget is not dominated in any way by advanced research type programs where we're looking for the next generation of technologies. So my bet would be that DOE's programs, which are more oriented toward the next generation, where their programs were oriented toward the dissemination of existing technologies, would probably be about as efficient. But our programs are not aimed as much as DOE's at the next generation, the next generation of advanced technologies. We're more focused on bringing into the market the technologies that are there today. And as such, you can have bigger, more near-term effects. But that doesn't mean that those complementary, long-term advanced technology programs are not absolutely necessary to complement our type of technology dissemination programs. Chairman CALVERT. We have two votes, and I know, Dr. Baker, you have a commitment. So, Mr. Costello is going to go ahead and ask you some questions before we head on out. NOAA SURFACE BASED OBSERVATION PROGRAM: BUDGET INCREASE REQUEST Mr. COSTELLO. Quickly, Dr. Baker, I have just a couple of questions. You indicate that the surface based observation at NOAA receive an increase of $26,000,000 in the Administration's request for next year. What benefits for improved weather forecasting can we expect by establishing the new climate reference network? Dr. BAKER. Thank you, Representative Costello. This has been a critical aspect of our improving our weather forecasting, because we know that better data lead to better forecasts. And, we can point to some failures that we've had in the past where we know that injection of data has made a real difference. For example, the storms that we had from the 1997-1998 El Nino approaching California were much better forecast, because, in fact, we had some additional aircraft flights there that are the kind of data that we get. Now, what we're doing here is improving our weather-based, our weather-driven ground based system, with longer-term observations that are calibrated and validated, we'll be able to give you a better picture of exactly what has happened. So, when we are asked about what is the climate record, we can give you a very accurate picture there. U.S. GLOBAL CLIMATE RESEARCH PROJECT: INTERNAL VERSUS EXTERNAL BUDGET ALLOCATION Mr. COSTELLO. Second question, and then I have a few others that I'll submit to you in writing and ask you to reply, since we are short on time. What percentage of the funds at USGCRP are provided in grants as opposed to being used in-house, to universities and others? Dr. BAKER. By far the largest percentage, I don't have a number, and we can provide that for you, but this has been very much a university-based program. Remember that about half the problem has been for NASA development of satellites, now of which the first is flying and we're very pleased about that. Of course, a lot of that has gone to contracting with industry. But, on the science side, this has been very much a universitybased program. For example, in NOAA, over half the money that we have goes outside. Mr. COSTELLO. Thank you, Mr. Chairman. Chairman CALVERT. Thank you, Dr. Baker. Mr. Reicher, Mr. Stolpman, we'll be back. But Dr. Baker, you're excused for your other commitment and we are recessed until we return. [Recess.] Chairman CALVERT. The hearing will please come to order. Mr. Costello. Mr. COSTELLO. Thank you, Mr. Chairman. CLEAN ENERGY TECHNOLOGY AND INTERNATIONAL DEMAND Mr. Reicher, you indicated in your testimony that the international market for clean energy technology is booming. Can you talk a little bit about the size of the market and also who the largest customers are and what other nations are involved in the share of the market? Mr. REICHER. Absolutely, Mr. Costello. As you look out over the next 20 years or so at the market for energy technologies, it is astronomical. We're looking at taking the current electricity use in the world, which is about 2 million megawatts, and more than doubling it in the next 20 years, to almost 5 million megawatts. That represents sales of the technology in the several trillion dollars-trillion dollars-range over that time period. And, three quarters of that increase, or around that, is going to be in developing countries, countries like China, like India and Indonesia and others that are growing rapidly. My basic message is, we can either, the United States, our important industries can either have a very big chunk of that industry, of that growth, or a relatively small chunk. And, our whole proposal for this International Clean Energy Initiative is to foster U.S. access, U.S. success, in those markets. It's absolutely essential if we're going to have the lion's share of those markets over the next 20 years. Mr. COSTELLO. In what other countries are the suppliers of those clean energies? Mr. REICHER. We are in a race, and it truly is a race, with countries like Germany, Japan, Denmark, Britain, a variety of other na tions around the globe. I'll give you one example. The solar industry has been growing very rapidly over the last several years, on the order of 20 to 30 percent a year in sales. It's a multibillion dollar industry now. But the Japanese just surpassed us in terms of world market share. They much more substantially fund the solar efforts in their country, probably three times what we do in our own country. The opportunities in fossil energy technologies, gas technologies, coal technologies, is astronomical. And, again, we can either own much of that market or we can lose it. Mr. COSTELLO. Other than the Japanese, are there other countries that have surpassed us, not only in solar, but in other markets as well? Or other energies as well? Mr. REICHER. Yes, I'll give you another example. The Danes pretty much rule the market for wind turbines, which, as I noted in my opening, is a very fast growing, in fact, the fastest growing source of electricity in the world. And, we are number three in that market behind the Danes and the Germans. And, they are selling directly into developing countries in a very, very aggressive way. And, again, we are not putting the same kind of public-private sector "oomph" behind our efforts the way those countries are. CLEAN COAL COMBUSTION TECHNOLOGIES AND INTERNATIONAL DEMAND Mr. COSTELLO. Let me ask you about your testimony concerning the new coal combustion technologies. In your testimony you indicated that the target date is 2015. What's the possibility of moving that date forward? And, you mentioned also the efficiency improvements in the greenhouse gas emission reduction associated with the use of these technologies. Will they reduce other air pollutants as well? Mr. REICHER. Mr. Costello, first of all, there is always a possibility of accelerating the commercial introduction of technologies like this, and that comes down to the degree to which the public and private sector is willing to fund those efforts. So the answer is yes, we could in fact advance that date with adequate investment. The technologies we're talking about are things like integrated gasification, combined cycle, coal plants, and a variety of other technologies that can really take coal technology to a new level of efficiency. In your question about, with improving efficiency, you not only cut emissions per unit of energy of global warming gases, but yes, you dramatically cut emissions of other kinds of air pollutants. So it's another real opportunity for us. Mr. COSTELLO. Is the Department or the Administration doing anything in order to accelerate the investments so that we can move the date up? Mr. REICHER. We are actively seeking full funding this year. We are actively seeking industrial partners to move this forward, and we are pursuing work at the national labs quite aggressively in these coal-based technologies. So the answer is yes. Mr. COSTELLO. Are there overseas market opportunities? Do they exist for these technologies? |