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Attachment 2

21 THINGS THE CLINTON ADMINISTRATION

SHOULD DO ABOUT CLIMATE CHANGE In his Earth Dory speech, President Clinum pledged in reduce US. emissions of greenhouse gases 60 1990 levels by the year 2000. and direaled his Administration to produce e revised Action Plan which would continue the trend of reduced emissions. If implemened. the Administration's energy las proposal could comeribute to reaching these goals, but further spps will be necessary. The actions below we some of the many cosi-effective steps that can be laten to achieve these commitments. They are representative of the types of activities tha government and the privaie sector would pursue under a comprehensive framework of emissions mandaters and incentives. which the US. will have to adope in order to cus greenhouse gas emissions over the long verm. Several of these policies are under consideration by or are supported by the Administration. Adequare funding, and in some cases addicional legislative amharies, enc essential to implement these proposals fraively. REFORM THE ECONOMICS OF ENERGY USE 1. Decouple Utility Profits from Electricity Sales and Include Externalities to Enerxs Planning. In the vast maprity of states utilities' profits depend upon their sales of electricity. arcating • disincentive for the utilities to undertake upressive energy efficiency programs. The Department of Energy (DOE) and other federal agencies involved in energy regulation should develop an espressive proacuve staegy to promote this reform in wholesale power transactions and at the state level allowing uilities to profit from cost. effective investments to improve the efficiency of electricity generation transmission, and end use. The U.S. should also estimate and incorporate the cost of envuonmental and national security aiemalities in its energy planning activities. 2 Remove Subsidies for Mature Conventional Energy Resources. The current poden of federal tos and program subsidies encour. ages the use of conventional energy resources which polute the environment such as fossil fuels and nuclear energy. The US. should eliminate w and other subsidies for these fuels, and increase the fees charged for extraction of energy resources on federal lands IMPROVE THE ENERGY EFFICIENCY OF HOMES 3. Promote Energy Emcleat Mortgages. The Administration should implement a uniform Energy Efficient Mortgage (EEM) program linked to technically credible performance ratings, and designed b significantly upgrade the energy efficiency of u lenge 6 million homes by 2000. EEMs allow homeowners to finance cost-effective efficiency improvements as part of theis normal home monsigue 4. Expand Federal Assistance for Low-lacome Home Weatbertzation and Retroflts of Public Housing. The Administration should increase funding for DOE's Low-Income Weatherization Program in order to expand the number of homes the program is able to reach In addition, new quality control measures should be put into place which ensure that weatherization proprams cepure all cost-effective efficiency improvements in participating homes. Utilities accepting federal support for low-income household energy we should be required to invest in efficiency and weatherization in these homes. Finally, the Dept. of Housing and Urban Development should provide much greater funding for retrofits in public housing. IMPROVE THE ENERGY EFFICIENCY OF MOTOR VEHICLES 3. locrease Fuel Economy Standards to Mlles Per Gallon. It is critical that the Administration propose tough new fuel economy standards inmediately to ensure ongoing. substantial carbon emissions reducuons. A 45 mpg standard for cars phased in by 2003 (with similar increases for light truckus) would reduce U.S. carbon emissions by 70 million metric tons of carbon annually in 2005. with greater annual reductions in later year. The U.S. should also reform is auto fuel economy testing procedures, to ensure that economy ratings accurately reflect on-road performance. 6. Establish Market locatives for Eders Emcient Vehicles at the State and Federal Levels The US. should reverse a Bunda Administration position challenging the ability of stales to adopt market incentive propuns to improve automobile fuel economy, such as "leebases" and gas guzzler tales. It should also develop innovative efficiency incentives for heavy tucts and other vehicles 7. Develop Advanced Automoblles. In addition to market incentives and efficiency standards, a public-private partnership with input from public interest groups to develop truly visionary. Zero-emission. "super" efficient vehicles. coupled with expressive mandatory and voluntary Neel procurement proprams to develop markets for these vehicles, would help lay the foundation for longer-term reduction. PURSUE OVERLOOKED OPPORTUNITIES TO SAVE ENERGY

8. Reduce Cooling Needs in Urbas Areas. Planting trees and painting roofs and pavement with lightes colors in cod effective
strategies for reducing the heat island effect, which rauses cooling requrement in urban areas. Together with communities and electric
utilities, the Administration should undertake a major campaign to promote heat island mitigation.
9. Boost Recycling and Source Reduction. To promote energy conservation, the Administration should discourse the uncondary
use of raw matenals. It should provide incentives for greater use of recycled materials, since this would reduce solid waste while mai
ding the energy- and pollution-intensive processes necessary to process new sieel aluminum, paper, plastics, and glass from raw materiale
ACCELERATE DEVELOPMENT AND ADOPTION OF CRITICAL NEW TECHNOLOGIES

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10. Prioritize Redewable Enerty. The U.S. should develop a National Renewables Strategy to work with the private sector to accelerate research and development of advanced renewable (solw, wind geothermal and biomass) energy technologies, and b aspedito the deployment of these technologies It should provide federal pranus to states and localities to help implement policies that help comtr mercialize renewables (e.g. preen energy prank in which cunomers pay voluntary premiums to receive energy from renewable source) It should also include market afgregation initiatives and directives to federal agencies to utilize renovables whenever possible

11. Develop Energy Emcient Technologies for Industry. The Aulministration should work closely with the private sector to develop key avanced energy efficient technologies for industrial use such as in steel-making and motor systems. Coincident with this effort should be development of a strategy to encourage the rapid deployment of these technologies by expanding DOE's

small but successful technical assistance programs, and hy co-funding stale low-interesi loan programs for efficiency projects in small businesses. DOE should also eilen minumum efficiency slanulards to pumps, fans, compressors, belts, and other widely used industrial technologies. REDOUBLE EFFORTS UNDER EXISTING PROGRAMS AND MANDATES 12 Accelerate Implementation of Efficiency and Renewables Provisions of the Energy Policy Act and Other Lewis The Administration should seek full funding for the Department of Energy to implement all energy efficiency and renewable energy provisions of the Energy Policy Act of 1992 and other laws. DOE should use these funds to accelerue its development of relevant rules and standarts as required by the Act including aggressive new efficiency standards for new buildings and appliances. DOE should also promote and support the voluntary suboption of the Federal Model Coule by state goverments. 13. Target Specific Opportunities For Advanced Technology Commercialization. The U.S. should do fu more to promote the Jevelopment and extensive use of advanced new technologies for lghung heating and cooling systems, office equpmenl motor systems, and residential appliances, all of which promise large potential emissions reductions while saving consumers money. These efforts can hvill on the existing voluntary "Green Programs of the Environmental Protection Agency (EPA) as well as utility demand-side management proprams. RECTIFY THE ECONOMICS OF DRIVING 1. Eacourage 1 Switch to Pay-As-You-Drive Insurance. The Administration should provide concrete incentives to state governments to implement Pay-As-You-Drive" automobile insurance, whereby insurance payments are collected through a surcharge on fuel consumption. This initiative would reduce the initial cost of automobile ownership help to make the cost of driving more accurately reflect its ove social costs, and reduce overall vehicle miles travelled It would also improve the efficiency of the insurance industry, hy making fees proporcional to miles driven, and by reducing injures and fatalities. This could be accomplished without diminishing accident victims' rights. 15. Levellize Tas Benefits for Commuters Employer provided parking receives a massive federal subsidy of S17 billion each your, encouraging millions of Americans to drive wone to work for the average commute, this subsidy is several times larger than the federal preoline tax collected for the same trip. This suboidly, which receives unique treatment in the U.S. tax coule should be cashed out, or else reduced to levels comparable with the S60/month was exemption provided to employer-provickad transit benefits REVAMP TRANSPORTATION PLANNING AND INVESTMENT PRIORITIES 16. Implement Existing Federal Mandates Wib u Eye to Cutting Greenhouse Gas Emissions. The EPA should issue new guidance and regulations under the Clean Ais Aa (CAA) for judging whether or not regional transportation plans and hence eligibility for federal funds) we in conformity with the CA These rules must be more closely tied to the intent of CAA and lead to read annual reluctions in emissions of ais pollutants as a result of transportation plans and proprams themselves, not counting the effects of the tumover, enhanced maintenance, fuel changes, or other technology fix strategies. Senses and municipalities should be required to evaluate ahernative scenarios in their long and short range planning and consider policies which discourage single occupancy vehicle were 17. lovest in Alternatives to Additional Rand Construction. Despite gains made in the 1991 ransportation law, the U.S. still invests far more in road infrastructure than it does in rail and non-motorized alternatives. The Administration should seek full funding for mass transit programs, while svoiding investment in new road capacity. It should also promote non-motorized transport as a genuine alternative 10 single-occupancy vehicles. by aggressively seeking to integrue bicycle and pedestrian traffic into all new transportation investment. It should also support opening the Airport and Airways Trust Fund for construction of rail access among cities and airports. 11. Champion Land Use Transportation Planning Refore. As a long-term strategy, the U.S. should seek w revolutionize the way land use is regulated at the local level. Higher-density, mixed-use development clustered around available public transportation modes can reduce the need for motor vehicle travel and the number of miles driven to satisfy basic mobility needs Land use controls as the usban periphery can discourage the further sprawl of a metropolis and encourage revitalization of the city's center. 19. Promote lotermodal Freight Shipping. Intermodal freight shipping could provide significant efficiency improvements over longJistance shipping by truck, but stuppers must be given incenuves and viable options to shift from trucks to less-polluting rail runspor The U.S. shoulj support construcung intermodal terminals and ports and charging trucks fully for the infrastructure they use REDUCE GREENHOUSE GAS EMISSIONS FROM FEDERAL ACTIVITIES 20. Extend Eaviromental Assessment Requirements to Cover Greenhouse Gas Emision The President should direct all federal agencies to incluem analysis of relative preenhouse gas emissions as part of their environmental assessments and environmental impact statements, as required under the 1969 National Environmental Policy Aa. 21. Make the Federal Government a Model of Energy ĖMiciency. The Federal Government is the largest energy user in the country. All of its facilities and vehicle Reets should sulopi siate of-the-art technology to cut emissions enhance the market for this equipment and reduce energy coses borne by wspayera By agressively investing in energy efficiency, the Federal Government could out is energy bill in 2000 by S1 billion per year. Prepared by the following participants in Climate Action Nerwork.U.S.: Alliance to Save Energy. American Council for a Energa Efficient Economy, Center for International Environmenial Low. Environmenial Action, Environmonial and Energy Study Insiinia, Enviarmenial Defense Fund Friends of the Earth Nawal Resources Defense Council. Physicians for Social Responsibiliry, Sierra Club, Union of concerned Scientists, US. Public Ineres dexarch Group, and World Wildlife Fund.

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363

DOE AE093 Baseline Emissions
Baseline adjusted for non-co2 gases
Reductions from efficiency initiatives
Efficiency scenario emissions
Percent reduction below adjusted baseline
Percent change from 1990 level

1501 1656

144 1512 8.7% 2.Jx

1446 20.1% -2.2%

NOTE:

Annual spending is given in millions of constant 1990s (MS/yr). Carbon emissions are given as millions of metric tons per year (MT/yr), on o carbon moss basis and counting full fuel cycle greenhouse gas emissions.

United States Department of State

Washington, D.C. 20520

AUS 264?

JUL 30 1993

Dear Mr. Stearns:

Thank you for your letter of May 26 to Counselor Timothy Wirth. He appreciated having the opportunity to appear before the Subcommittee on Energy and Power in May and is glad to have this opportunity to further expand on the Administration's view on the critical issue of global warming.

The Administration takes the issue of climate change extremely seriously. Many of your constituents may have already voiced their concern about sea level rise and other projected coastal impacts of global warming - issues and concerns which we are addressing. We are working to develop a policy which at the same time will be environmentally sound and economically cost-effective. In order to assure ourselves that the policy fully recognizes the complexity of climate change, the Administration has created six interagency working groups to examine these issues in detail (including groups on energy supply, energy demand, transportation, methane and other greenhouse gases, sinks of greenhouse gases, and joint implementation). In addition, we have established an interagency analysis team to provide numerical analyses and to help synthesize the work of the other groups.

We expect that through the joint efforts of these groups, and with the additional input derived from the private sector (including the business community and environmental and academic organizations), we will be able to meet the President's commitment to reduce our greenhouse gas emissions to their 1990 levels by the year 2000. It is clear, however, that the task will be difficult. As you note in your letter, many questions arise with respect to the development and interpretation of baselines of greenhouse gas emissions, of the specific emissions reductions that can be credited to particular actions, and of the potential need for new regulation or legislation to meet the goals. Let me try to address these concerns in order.

The Honorable
Cliff Stearns,

House of Representatives.

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2000

2010

1809

144

363

1446

b) AVOIDED CARBON EMISSIONS (WT/yr)

1990 DOE AE093 Basel ine Emissions

1341 1501 1641 Basel ine adjusted for non-co2 gases

1478 1656 Reductions from efficiency initiatives Efficiency scenario missions

1512 Percent reduction below adjusted baseline

8.77 20.1% Percent change from 1990 level

2.3% -2.2% NOTE: Annual spending is given in millions of constant 1990s (MS/yr). Carbon emissions are given as millions of metric tons per year (MT/yr), on a carbon mass basis and counting full fuel cycle greenhouse gas emissions.

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