TESTIMONY OF PAUL M. STOLPMAN, DIRECTOR, OFFICE OF ATMOSPHERIC PROGRAMS, U.S. ENVIRONMENTAL PROTECTION AGENCY Mr. STOLPMAN. Chairman Calvert, I want to thank you and the members of the subcommittee for inviting me here today to discuss EPA's portion of the President's 2001 budget request for the climate change technology initiative. Before I get into the details, I'd like to make some general points about our CCTI programs. First, these programs are voluntary partnerships with businesses, State and local governments, schools and other organizations. Secondly, EPA has a strong and healthy working relationship with the Department of Energy and other agencies that complement each other, we do not duplicate each other in these programs. These programs are highly successful in reducing conventional air pollutants and greenhouse gases. These synergies are obvious when you realize that fossil fuel production and use is the source of over 80 percent of conventional air pollution as well as over 80 percent of greenhouse gases. These programs represent smart, common sense, public investments because the Americans benefit, or America benefits from lower energy bills and reduced air pollution. For every dollar spent on these programs, the American economy realizes $75 in reduced energy costs. EPA's efforts in fiscal year 2001 will be focused on several important areas, including saving energy in America's homes, small businesses, schools and office buildings, improving efficiency in our transportation systems, reducing emissions from industry, supporting State and local governments in their activities, increasing carbon storage in farms, range and forest lands, and building capacity in developing countries to track and reduce their greenhouse gas emissions. In 2001, EPA's efforts will deliver real results. We will reduce greenhouse gas emissions by over 66 million tons of carbon equivalent, offsetting about 20 percent of the growth in greenhouse gas emissions over the last 10 years. We will reduce other forms of air pollution, including smog forming nitrogen oxides, by about 170,000 tons. We will reduce U.S. energy consumption by more than 70 billion kilowatt hours, providing $9,000,000,000 in energy savings to consumers and businesses that use energy efficient products. We'll demonstrate a hybrid vehicle that gets 80 miles per gallon, yet is safe, performs like today's cars and is just as affordable, and we'll complete a high efficiency hybrid engine that complies with EPA's new Tier 2 emissions levels and works with renewable fuels. For 2001, the President has requested an increase of about $124,000,000 in funding for EPA's CCTI programs. With the increased funding requested, EPA would deliver sizeable additional benefits across the economy by 2010. Just to name a few, we would deliver 335 million metric tons more of carbon equivalent reductions, we would reduce the growth in greenhouse gases by 35 percent which will take place over that period of time without these programs. We'll add another $35,000,000,000 in en ergy savings to families and businesses and will reduce an additional 850,000 tons of nitrogen oxides. Increased funding in the transportation area would trigger important new efforts that will demonstrate a diesel engine that operates on petroleum fuel and still meets EPA's Tier 2 emission standards, and develop technologies that significantly increases fuel economy in light trucks, yet meets emissions and safety standards, tows just as much and is just as affordable as today's light trucks. The opportunity to save on the Nation's $500,000,000,000 annual energy bill over the next decade, while reducing air pollution, is enormous. The next 10 years will be a decade of opportunity to implement common sense, cost-effective solutions that will put the country on a sustained growth path. In 2010, we estimate that half of the greenhouse gas emitted in that year will come from products purchased in the next decade. So the opportunity to influence greenhouse gases over that decade is enormous. I would like to point out that our programs have positive impacts in other areas as well. The Energy Star programs have partnered with over 400 school districts to bring superior building performance to the classroom. These efforts have produced energy bill savings of over $270,000,000 since 1995. That's enough money to buy 5 million books, or to hire 5,400 teachers. Through 1999, EPA's climate programs have reduced greenhouse gases by about 115 million metric tons of carbon equivalent and have saved consumers and businesses more than $11,000,000,000. In summary, EPA's budget proposal is a balanced approach. It addresses all the important sectors: industry, buildings, transportation and utilities. And it carries on important work with developing countries. Our budget is built around programs that promote the use of existing technologies, that save people money, enhance U.S. competitiveness and clean the air while we work with the private sector to develop the next generation of clean, efficient technologies that will be needed in the longer term. This concludes my statement. Thank you very much, Mr. Chair man. [The prepared statement and biography of Mr. Stolpman follow:] TESTIMONY OF PAUL M. STOLPMAN DIRECTOR, OFFICE OF ATMOSPHERIC PROGRAMS SUBCOMMITTEE ON ENERGY AND ENVIRONMENT OF THE COMMITTEE ON SCIENCE U.S. HOUSE OF REPRESENTATIVES March 9, 2000 Chairman Calvert, I would like to thank you and Members of the Subcommittee for inviting me here today to discuss EPA's portion of the President's FY2001 budget request for the Climate Change Technology Initiative (CCTI). The President has requested a significant increase in funding for EPA's programs, which have a solid foundation of success in working with partners in the private and public sector on a voluntary basis to reduce emissions of both greenhouse gases (GHG) and conventional air pollutants. These reductions are achieved through a wide variety of energy efficiency and pollution prevention programs that produce pubic health, environmental, and economic benefits for the country. These programs have delivered significant benefits over the past several years, and the FY2001 budget request will enable us to provide expanded benefits well into the future. There are several features of EPA's CCTI programs that are worth noting at the outset: They are completely voluntary partnerships with thousands of businesses, state and local governments, schools, and organizations; They are highly successful in reducing energy use, conventional air pollutants, and greenhouse gas emissions; and, They represent smart public investments because American citizens benefit from reduced air pollution and energy bill savings For every dollar spent by EPA on its voluntary energy efficiency programs: the private sector and consumers have invested more than $15 in new more efficient technology businesses and consumers have saved over $70, and greenhouse gases have been reduced by more than half a ton (carbon equivalent). The President is requesting $227 million for EPA's CCTI programs in FY 2001, an increase of $124 million over FY 2000 appropriated levels. With the increased funding, EPA programs can deliver sizable additional benefits across the US by 2010, including: an additional 335 million metric tons of carbon equivalent (MMTCE) of cumulative reductions in greenhouse gas emissions; offsetting about 35% of the growth in greenhouse gas emissions expected by 2010 above 1990 levels, up from about 20% of the expected growth at current funding levels; an additional $35 billion in energy savings to families and businesses, and an additional 850,000 tons of NO, emissions reductions. With increased funding in the transportation area, EPA will: Initiate development of a diesel-cycle engine utilizing petroleum-based fuels that will achieve develop a new government/industry partnership to demonstrate PNGV-type technology for heavy duty trucks, buses, and sport utility vehicles (SUVs). Under this budget, EPA will expand its partnership efforts with businesses, organizations, and consumers to achieve greenhouse gas reductions by taking advantage of the many opportunities to reduce pollution and energy bills through fostering energy efficient programs, products, technologies and cost-effective renewable energy. In 2001, as a result of work already underway, EPA efforts will: reduce GHG emissions annually by over 66 million metric tons of carbon equivalent (MMTCE), offsetting about 20% of the growth in greenhouse gas emissions above 1990 levels; reduce other forms of pollution including reducing NOx emissions by about 170,000 tons; reduce U.S. energy consumption by more than 70 billion kilowatt hours, providing $9 billion in energy bill savings to consumers and businesses that use energy-efficient products; and, contribute to developing a new generation of efficient and low polluting cars and trucks The core of EPA's climate change efforts are partnership programs designed to capitalize on the tremendous opportunity consumers, businesses, state and local governments, and institutions have to make sound investments in energy efficient equipment and practices. Thousands of equipment purchases are made every day, and usually businesses and consumers don't buy the most energy efficient equipment, thereby committing themselves to higher energy bills for 10-20 years at a time, depending upon the life of the equipment. The opportunity to save on our nation's $500 billion annual energy bill over the next decade while reducing air pollution is tremendous. The opportunity to reduce greenhouse gas emissions is also large. We currently expect that more than half of the nation's greenhouse gas emissions in 2010 will come from equipment that will be purchased over the next ten years. We shouldn't forego this opportunity by not funding expanded energy efficiency programs. Based on investments in energy efficient technologies and services that EPA's ENERGY STAR program has already helped stimulate through 1999, EPA estimates that: carbon dioxide emissions will be reduced by about 75 MMTCE over the next decade or so, and consumers and businesses will save more than $25 billion in energy bill costs. But these significant savings are only a portion of the potential for pollution reduction and energy bill savings. if all consumers chose only ENERGY STAR products for their purchases over the next 15 years, EPA estimates that the nation's energy bill would be reduced by about $100 billion while 380 MMTCE of emissions would be avoided, and if all commercial building owners and managers took advantage of cost-effective whole building improvement opportunities by 2010, EPA estimates that the nation's energy bill could be reduced by another $130 billion while greenhouse gas emissions would be reduced by 350 MMTCE. EPA's efforts in FY2001 will be focused on several important areas including: saving energy in America's homes, small businesses, schools and office buildings; improving efficiency in our transportation system; reducing emissions from industry, supporting state and local initiatives; increasing carbon storage in farm, range, and forest lands; and, building capacity in developing countries to track and reduce their greenhouse gas emissions. |