You should know now that the electrification is provided generally by appropriate technology. In that village, the agriculture is supported by a pump that irrigates fields, and that pump uses biogas, but more importantly, irrigation of those fields now permits this village to earn money outside of its own needs so that the village itself is not only empowered but it is able to plan for its future.

I had the occasion when I was there to present to that village, which now has its thoroughfares and its temple lighted, 50 solar lanterns exactly like the one you see here. The interesting piece you can't see this lit, but it is lit. If it were dark, I. could do this for you.

The interesting piece about this solar lantern is that when we went off to India we thought that the market penetration in India under a joint implementation pilot program might be for $1 million worth of such lanterns in villages. It would make dramatic difference in the lives of the people there because, as one example, it lights up a home at night and permits a student who might be learning and reading for the first time after a full day's work, to now be empowered to learn and to read.

One deal was signed there for $1 million worth of lamps to be introduced into villages like the village in Danawas. After we left, we were told that the market penetration for 1 year is expanded now to $10 million for such lamps.

This is simply one example of a program that really is in action, because these lamps are now being deployed in villages in India. Let's take it a step further. It is good for U.S. industry, it is good for the economy, it is, of course, excellent for the environment.

This is a very simple system which will permit villagers to be trained to understand and know how quickly to repair a system that with 8 hours of the solar collector in the sunshine-and trust me, there is ample sunshine in India-provides 8 hours of lamp light at home and provides work for Indians as well. That is just one example of a joint implementation pilot program already signed and up and running in India.

I have another one. This is a steam trap. For those of you who know about industrial processes, this strange little gizmo here, in the center of what really looks like a valve or a fitting around a pipe, simply maintains and holds the steam in a long pipeline and keeps it at steady pressure. Without this steam trap, what you get is the leakage of steam, the reduction of power, and you also get a very unsafe condition, as many of us who have worked in manufacturing processes know.

This is a very simple device, which if attached to equipment in a place, say, like a textile plant in India or Pakistan, can reduce the energy consumption dramatically, improve safety, and also help us on our Greenhouse Gas Emissions Reductions Project. This is a joint program entered into by a manufacturing company out of Michigan, with a contract signed in Bombay while I was there, and gets the work done. It qualifies under the rubric that we are now establishing for review of joint implementation pilot programs. This is jobs in America, this is jobs in India, and will work in any other industrial process. Pretty simple stuff as well.

Finally, I want to talk about one other assessment program now ongoing which platforms another pilot program. In districts in China, the issues there are leakage in the gas pipeline; old gas pipeline designed to take wet gas in decades before whose couplings are done with hemp and other natural fibers. The issue there is the loss in the gas pipeline amounts to about 25 percent, which is a tremendous greenhouse gas emitter.

This is a collaborative program, speaking of collaboration, coming out of the State of Illinois, with Illinois Power and in conjunction with the State Energy and Natural Resources Office there. This is a proposal under one of the plans submitted by one of our utilities, but the dramatic piece here is that by simply bringing in pretty low technology, USA couplings, we can reduce that loss in that pipeline at no cost because, in point of fact, there is an energy savings. The annual reduction in emissions is 68,000 metric tons, simply in one province in China. These are activities, this is not stuff written down, we are ready to go with these programs and these projects. I would simply end this discussion by saying that on the two sustainable energy development presidential missions we have done, in furtherance of these goals and in furtherance of economic expansion of the United States and of the countries in which we visit, and with a clear eye on what is happening in developing countries—as their per capita income increases, so do their energy uses per capita increase more dramatically than OECD countries-that we have interest so high, that on the first mission to India we had 40 people.

When we arrived in Pakistan, there were 80 individuals on the mission. And the wonderful thing about this mission is not your typical, simply large energy development projects, but high-tech, low-tech, appropriate technology, a mix, and more importantly, enriched by the addition of our nongovernmental organizations seeking to meet with the nongovernmental organizations, generally.

If I had brought another picture, it would be of the Secretary of Energy with the Prime Minister of Pakistan, whose country began, as we arrived on a 5-day mission, very much focused on large megawatt deals. In the 5 days that we worked there, we began to show the prime minister and her energy and economic team the value of ensuring that energy efficiency and small projects were accorded the same respect and public play.

At the end of a signing ceremony, where $4 billion worth of deals were moved through the first phase of energy reform in Pakistan, the project that received the most interest in the press and certainly from the prime minister was a deal signed with Agra Electric for a 10-megawatt plant that uses for its energy source, hulls

from rice.

The win is obvious. India, China, Pakistan produce rice. What is left over is waste, is the agriwaste, in this instance, rice hulls, but it could also be stalks from cotton, and on and on.

This works. There is a great desire to see it work. It is cost-effective, and we are ready to roll. I would submit to you that we will have pilot programs for joint implementation running the gamut, ready for review by the Secretariat, and we will move them as quickly as possible.

I will close by saying that 1605 has moved not as rapidly as you wanted it, but it has moved most especially with the collaboration that makes it, first of all, realistic, it is cost-effective and gets the job done. You asked also for some discussion on the science of greenhouse gas emissions, and I have a paragraph or two in my testimony.

I will say to you that I am not a scientist and I do not pretend to espouse the science. I have read the testimony and, more importantly, have been briefed by our own scientists at our laboratories who have been involved in doing this work.

I am clear that their pronouncements are rational, but from my own personal experience I know that the rationality is there because it is expressed to me by the Mayor of Decin in the Czech Republic. It is expressed to me by the president of the South African Republic who is concerned not yet about greenhouse gasses but about the health effects of emissions. And in each country where we are visiting, we get the call for these joint implementation programs because they make a difference in the lives of the people in those countries.

And so while people quarrel the science, I will very pragmatically go about my business and the business of the Department, which is to find the need and to fill it and to fill it in the very best way and the most cost-effective way. We are not dragging people on these missions. They want to come.

Thank you, Mr. Chairman.

[The prepared statement of Hon. Hazel R. O'Leary follows:]

TESTIMONY OF

HAZEL R. O'LEARY

SECRETARY OF ENERGY

Mr. Chairman, members of the Subcommittee, it is a great pleasure for me to appear before you today, two weeks before the one-year anniversary of President Clinton's release of the Administration's Climate Change Action Plan. The Administration has made progress on implementing the Plan this past year. The Department of Energy's actions this new fiscal year will continue the policy momentum to achieve our overall goal of returning U.S. aggregate net greenhouse gas emission level to its 1990 level by the year 2000. In my testimony today, I will highlight the Department's accomplishments and the steps we are taking in both the international and domestic arenas. I am particularly excited by the many "win-win" situations we have been able to foster in just this past year. I am confident that this approach will lead to significant reductions in greenhouse gas emissions and to the advancement of U.S. competitiveness and sustainable development goals.

Progress in Climate Change Action Plan (CCAP) Implementation

Our Administration has launched a major innovation in environmental compliance that could prove to be a model to address other environmental issues in the future: government sets the overall environmental goals, and industry is given the flexibility to find the most cost effective ways to meet the goals. It builds on the authority this Subcommittee created in the Energy Policy Act of 1992 to encourage voluntary actions to reduce or sequester greenhouse gases.

The Department has made significant progress in implementing the President's plan since we last testified before this Subcommittee. We have spent this time designing the programs in close collaboration with our stakeholders and laying the foundations for an aggressive start this fiscal year. We have consolidated several actions and have ensured that they complement existing efforts -especially implementation of key provisions of the Energy Policy Act. Early feedback from our stakeholders suggests that many people are eager to participate in these exciting voluntary programs.

Some of our programs were attracting industry volunteers even before new funding became available. For example, the Climate Challenge provides individual electric utilities the opportunity to design and implement programs to reduce, avoid or sequester greenhouse gases. Mr. Chairman, as you remember

from our tent on the mall signing last Earth Day eve, the Climate Challenge has drawn-together over 800 utilities - representing over 80 percent of U.S. generating capacity - to commit to specific targets or specific projects to reduce or sequester greenhouse gas emissions. Some will commit to reducing to or below their 1990 levels, while others will commit to reducing the growth in emissions that might otherwise have occurred, while others may even invest money in reduction opportunities outside of their own systems. I am extremely excited by how energized the industry is over the prospects of this program. I hope to be joining our first volunteers for signing the first agreements later this month. Now that the voluntary reporting system is nearly complete, detailed agreements between the Department and many other individual utilities will be announced before the end of the year. I believe that the Climate Challenge could become the model for environmental policy making -- the Government establishes the goals and accounts for reduction compliance while the private sector utilizes its ingenuity to find low cost solutions.

In the same voluntary spirit as the Climate Challenge, the Department of Energy and the Environmental Protection Agency created the Climate Wise program for other industries. Under this program, companies and soon cities will have the opportunity to design individual, flexible programs for greenhouse gas emissions reductions or sequestration. Our agencies will provide technical assistance and recognition for their efforts. Major industrial partners have already signed up -- they represent more than 3 percent of total industrial energy use. These companies alone have pledged to reduce their emissions by 10 million metric tons of carbon equivalent by 2000.

The Motor Challenge is also off to a promising start. As you know, two-thirds of all the electricity used in the industrial sector is used to run motors, accounting for about 100 million metric tonnes of carbon. This partnership seeks to increase the market penetration of highly efficient industrial motor systems in order to reduce this level of emissions. We established a national technical assistance service, held workshops, and published a request for showcase demonstration proposals just this week in the Federal Register. To date, 105 partners are participating in this program - including such industrial giants as General Motors, Ford, Dow, and Johnson & Johnson.

Now that the fiscal year has begun, we are poised for an early roll-out of many of the Plan's actions. While we did not fare as well in the appropriations process as we had hoped due to the tight budget climate, we believe that we have sufficient funding to demonstrate the viability of our approach with