NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.
| The State Department web site below is a permanent electronic archive of information released prior to January 20, 2001. Please see www.state.gov for material released since President George W. Bush took office on that date. This site is not updated so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein. |
Carbon Dioxide ProgramsCarbon dioxide (CO2) accounted for 85 percent of net U.S. greenhouse gas emissions in 1995. Investing in energy efficiency is the most cost-effective way to reduce CO2 emissions, often providing energy cost savings that exceed the added first cost of advanced technologies. CCAP combines an array of public-private partnerships to stimulate the deployment of existing energy-efficient technologies and accelerate the introduction of innovative technologies. The goal of these programs is to cut CO2 emissions, while enhancing productivity domestically and U.S. competitiveness abroad. The following discussion of CCAP programs and initiatives is broken out by economic sector.
The 1993 CCAP included three foundation programs that have broadly involved key sectors in efforts to reduce greenhouse gas emissions. Large portions of the electric utility and industrial sectors have pledged greenhouse gas reductions through the Climate Challenge and Climate Wise programs, respectively. And many state and local governments are working with the federal government on their own greenhouse gas action strategies through the State and Local Outreach Program.
The projected contributions of these programs have been quantified for the first time in this Climate Action Report. Because partners in the foundation programs have the flexibility to comprehensively include all of their activities to reduce greenhouse gas emissions, they sometimes include actions taken in conjunction with other programs or actions already anticipated in the 1993 CCAP's development (i.e., in the CCAP's emissions "baseline"). No additional emission reductions were quantified for the foundation programs in the CCAP due in part to the uncertainty regarding the specific activities associated with these commitments. Now, however, the programs have better information on the actions that their partners have pledged and have calculated the expected additional emission reductions from these actions.
Residential and Commercial Sector Actions In 1995, commercial and residential buildings accounted for 35 percent of total U.S. energy consumption, including 65 percent of all electrical generation (U.S. DOE/EIA 1996a). CCAP programs are working with commercial building owners to reduce energy waste and realize the economic potential of energy-efficiency opportunities. Programs have demonstrated that many existing buildings can achieve average energy savings of 35 percent through an integrated systems approach to energy efficiency. As a result of these programs, companies are lowering their overhead, improving their productivity, and increasing their competitiveness.
CCAP also targets key opportunities in the residential sector, such as the energy efficiency of heating and cooling equipment, home appliances, and lighting and the design of building exteriors. The residential programs include a mix of partnerships with businesses and utilities, as well as new standards and building codes. A typical home built fifteen years ago can be upgraded to save as much as 40 percent of its energy use at a profit to homeowners.
Some significant changes to the commercial and residential programs have been implemented to maximize program effectiveness and respond to changing circumstances. Building on the success of the Green Lights program (Action 2), EPA has integrated the program with its newer Energy Star Buildings program (Action 1). Another program, "Golden Carrot" Market-Pull Partnerships (Action 6), was originally intended to pool utility rebates and use other innovative partnerships to commercialize energy-efficient technologies. However, utility funding of energy-efficiency initiatives has begun to decline since the CCAP was released. To fulfill the goals of Action 6, EPA and DOE are promoting successful ENERGY STAR® consumer labeling programs, and DOE is facilitating advanced high-efficiency appliances into the marketplace. Finally, DOE has integrated two actions--Home Energy Rating Systems (Action 8) and Residential Energy Efficiency (Action 11)--into its Energy Partnerships for Affordable Housing program. One action--State Revolving Funds for Public Buildings (Action 3)--was canceled due to lack of funding.
Rebuild America (Action 1 )
DOE is working with community partnerships to identify and achieve cost-effective investments in public housing, commercial, and multifamily residential buildings through improved energy efficiency. Rebuild America programs are based on local needs and priorities, which provides community leaders a high level of flexibility in their program design. Any assembly of companies and organizations may form a partnership. Rebuild America helps its partners by providing a customized set of products and services designed to meet their community's special needs. The partners also receive both local and national recognition for their innovative approaches to community-wide programs. Rebuild America program representatives work with partners' teams to ensure the assistance provided will be timely and effective.
To date, over 125 community partnerships have been formed in thirty-five states and territories. When the upgrades to their floor space are completed, they will result in annual financial savings for building owners and occupants of $1.2 billion and annual energy savings of 100 trillion Btus. The 1993 CCAP projected emission reductions from this action and expansion of the Energy Star Buildings program (below) would be 3.1 MMTCE in 2000. The actions have been realigned to reflect the integration of the Green Lights and Energy Star Buildings programs. Current projections for Rebuild America are 1.6 MMTCE in 2000 and 6.3 MMTCE in 2010.
Green Lights and Energy Star Buildings (Actions 1 and 2)
Since the Green Lights program's inception in 1991, EPA has entered into more than 2,300 partnerships with corporations, small business, utilities, nonprofit organizations, and other groups that agree to upgrade lighting equipment with more energy-efficient systems. These lighting system upgrades save, on average, 50 percent of the energy used for lighting, and they provide an average rate of return of 35 percent. Partners have already invested over $1 billion in lighting upgrades, and have made commitments for much larger investments.
EPA's newer Energy Star Buildings program, launched in 1995, leads a building owner through a more comprehensive, five-stage strategy to capitalize on system interactions intended to maximize energy savings at minimum cost. In the 1993 CCAP, the expansion of these programs was expected to yield greenhouse gas reductions of approximately 3.6 MMTCE in 2000. Current projections for the expansion of the programs are 3.4 MMTCE in 2000 and 16.3 MMTCE in 2010. The full programs are expected to achieve even larger reductions.
Cost-Shared Demonstrations of Emerging Technologies (Action 4)
DOE has sponsored cost-shared demonstrations of emerging energy-efficient technologies, such as a new laundry waste-water filtration and recycling system. As part of a DOE-initiated consortium of hotel and motel chains, Red Lion Inns hosted a project to test and evaluate the new water- and energy-conserving system. National recycling of 60 percent of the hot water at large institutional laundries can save 20 trillion Btus per year (costing $35 million) and reduce annual demand for water and sewage treatment by 85 billion gallons. Annual chemical cost savings may reach $250 million. Additional demonstrations in progress include innovative sulfur lamp technology in Postal Service and Air Force facilities, advanced dedicated compact fluorescent fixtures and controls for guest rooms in cooperation with Holiday Inns, and evaluation of new horizontal-axis clothes washers in a variety of commercial, institutional, and residential settings.
Combined with Action 5, below, these programs were projected in the 1993 CCAP to yield reductions of approximately 3.8 MMTCE in 2000. Funding for these programs has been significantly reduced from originally anticipated levels. Current projections are that there will be no significant reductions by 2000, with 1.0 MMTCE in reductions in 2010.
Operation, Maintenance, and Training for Commercial Building Facility Managers and Operators (Action 5)
DOE will use training programs and the educational infrastructure of the trades in its work to develop an operation and maintenance training curriculum highlighting energy. Once in place, training will be available to new and experienced operators to keep them informed about energy-efficiency improvements for a highly transitory career field. DOE also draws upon the experience of the Federal Energy Management Program, state energy offices, low-income weatherization providers, utilities, and other successful programs currently underway, such as Rebuild America.
Combined with Action 4, these programs were projected in the 1993 CCAP to yield reductions of 3.8 MMTCE in 2000. Funding for these programs has been significantly reduced from originally anticipated levels. Current projections are that there will be no significant reductions by 2000, with 1.0 MMTCE in reductions in 2010.
ENERGY STAR® Products (Action 6)
EPA and DOE are using the ENERGY STAR® label to promote products and services that save energy and money and help the environment. The goal of the ENERGY STAR® programs is to increase the market share of energy-efficient products by encouraging consumers to purchase products and homes displaying the ENERGY STAR® label. Over 500 manufacturers currently participate in these programs and are offering over 13,000 product models that qualify for the ENERGY STAR® label. In addition, more than 200 builders and developers have committed to build over 15,000 Energy Star Homes across the nation.
DOE launched "Energy Star Retailer" to promote energy-efficient appliances through point-of-purchase information, product labeling, sales force training, and corporate advertising. DOE also established a program to promote ENERGY STAR® appliances in new homes, initially in cooperation with the manufactured housing industry in the Northwest. DOE is also facilitating volume purchases of efficient appliances that "raise the bar" for ENERGY STAR® levels by demonstrating emerging technologies with buyers' groups. Volume purchases have already resulted in a new apartment-sized refrigerator that is 31 percent more efficient than federal minimum standards, and commitments from public housing authorities to purchase 71,000 of these refrigerators in 1997.
The 1993 CCAP projected this action would yield reductions of approximately 5.0 MMTCE in 2000. Current projections are 4.3 MMTCE in 2000 and 19.4 MMTCE in 2010.
Residential Appliance Standards (Action 7)
DOE maintains and improves the efficiency standards for eleven product categories of residential appliances. In so doing, it works with manufacturers, trade associations, environmental groups, utilities, retailers, government agencies, and others in the public rulemaking process.
A congressional moratorium imposed on new standards during 1996 has ended, and DOE expects to issue final rules for improved efficiency standards for refrigerators and room air conditioners before the end of 1997. An Advanced Notice of Proposed Rulemaking for clothes washers is also due out soon.
The 1993 CCAP projected this action would yield reductions of approximately 6.8 MMTCE in 2000. Due to delays in implementing the standards, current projections are 0.2 MMTCE in 2000 and 3.7 MMTCE in 2010.
Energy Partnerships for Affordable Housing (Actions 8 and 11)
This action is designed to improve the energy efficiency and affordability of public and privately owned single-family and multifamily housing throughout the nation. Begun as a joint initiative between DOE and the Department of Housing and Urban Development (HUD), Energy Partnerships for Affordable Housing seeks to establish voluntary collaborations with state and local governments, utilities, and the housing development and financing industries to provide resource-efficient and affordable housing in both new and renovated buildings.
Major program components include: (1) formal partnerships with local public housing authorities to improve large portions of the housing they own and operate; (2) work with community-based housing providers, builders, architects, and associations to incorporate energy- and resource-efficient whole-building criteria design scenarios throughout their communities; (3) close collaboration with retailer program efforts to foster appliance efficiencies; and (4) development of an infrastructure to overcome barriers to energy-efficiency financing through the use of Home Energy Rating Systems.
The major goal of this action is to create local and community partnerships that will collectively commit to installing energy-efficiency improvements in at least one million housing units by 2000. Supporting activities to reach this goal include technical assistance made available to community-based housing providers for the application of whole-building design, rehabilitation specifications that can achieve 20-30 percent efficiency gains over current practice, and assistance to seven pilot states to overcome barriers to financing. Current participants in the action include public housing authorities in Chicago, Atlanta, and Boston; Habitat for Humanity and other community-based housing providers; Home Energy Rating System providers in Alaska, Arkansas, California, Colorado, Mississippi, Vermont, and Virginia; and associations at both national and local levels.
The 1993 CCAP jointly evaluated Actions 8 through 11, which were expected to achieve reductions of 4.4 MMTCE in 2000. Because funding for these programs has been significantly reduced from originally anticipated levels, current projections for them are 0.6 MMTCE in 2000 and 4.3 MMTCE in 2010.
Cool Communities (Action 9 )
DOE is working with American Forests and the USDA Forest Service to designate "Cool Communities" across the United States. The Cool Communities program provides national recognition to participants and a framework for strategic tree planting and surface-color lightening projects intended to improve local environments. Pilot Cool Communities nationwide are saving money and energy while building civic pride, involving citizens, and winning grants. DOE is working with manufacturers to develop, test, and label reflective surfaces and coatings.
The 1993 CCAP jointly evaluated Actions 8 through 11, which were expected to achieve reductions of 4.4 MMTCE in 2000. Because funding for these programs has been significantly reduced from originally anticipated levels, current projections for them are 0.4 MMTCE in 2000 and 3.3 MMTCE in 2010.
Update State Building Codes (Action 10)
Energy standards and guidelines for buildings are effective means of improving energy efficiency because they eliminate inefficient construction practices and technologies. DOE's increased emphasis on successful adoption of these practices has resulted in five hundred training sessions; more than ten thousand copies of "MECcheck" building code software distributed to more than twenty states; responses to more than 250 requests per month; and nearly four million dollars in financial assistance to twenty-eight states and territories to update and implement their energy-efficient building codes and standards.
The program is on target with thirty-four states meeting EPAct requirements for residential energy codes. In 1996 five new states adopted residential energy codes that meet or exceed the national model energy code. DOE is working with ten states to help them become early adopters of portions of the next generation of the building industry's commercial building consensus standard. In addition, DOE has developed a simple computer program and package compliance approach for assessing compliance with low-rise commercial building standards.
The 1993 CCAP jointly evaluated Actions 8 through 11, which were expected to achieve reductions of 4.4 MMTCE in 2000. Because funding for these programs has been significantly reduced from originally anticipated levels, current projections for them are 0.4 MMTCE in 2000 and 3.3 MMTCE in 2010.
Industrial Sector Actions The nation's industries were responsible for 42 percent of energy consumption in 1995, including 34 percent of electricity generated. Industry accounts for 34 percent of U.S. CO2 emissions from fossil fuel consumption. About two-thirds of these emissions results from producing steam and process heat, while the remaining third results from electricity use and related emissions from electric utilities. A small number of major manufacturing groups--primary metals, petroleum refining, chemicals, pulp and paper--account for about two-thirds of industrial energy use and 19 percent of gross domestic product. The CCAP establishes working partnerships with U.S. industry to help improve energy efficiency and productivity.
The CCAP's portfolio of industrial programs has been revised to adjust to reduced funding levels and other factors. Although DOE decided to eliminate the Adoption of Energy-Efficient Process Technologies (Action 14), which would have created one-stop shops to disseminate clean technology information through state agencies, Climate Wise is now performing a similar function. Golden Carrot Industrial Programs (Action 13) has been merged into Motor Challenge (Action 12) in response to stakeholder comments for enhanced program access. Reduce Pesticide Use (Action 18) has been terminated due to lack of funding.
Climate Wise (Foundation Program )
Climate Wise is working with U.S. industrial companies to turn energy efficiency and environmental performance into a corporate asset. Jointly sponsored by EPA and DOE, Climate Wise works with companies to develop a comprehensive set of cost-effective actions to reduce greenhouse gas emissions. Over 250 companies, representing more than 7 percent of U.S. industrial energy use, are taking such actions as: improving industrial processes, optimizing boiler efficiency, improving air-compressor system performance, eliminating waste heat, launching cogeneration systems, and switching to less carbon intensive fuels. Participating companies already expect to save more than $300 million by 2000 from cost-effective emission reduction actions.
In addition to economic savings, Climate Wise companies receive technical assistance in the form of Action Plan Workshops, Business-to-Business Peer Exchange Working Sessions, consultation assistance through the DOE national labs and through the "Wise Line" Technical Assistance Hotline, and on-site energy and waste assessments through DOE Industrial Assessment Centers. One of the foundation programs in the CCAP, Climate Wise serves as an umbrella program encouraging participation in the full range of CCAP initiatives.
The 1993 CCAP did not quantify the emission reductions expected from this program. Current projections are 1.8 MMTCE in 2000 and 3.7 MMTCE in 2010.
Motor Challenge (Action 12 )
This voluntary partnership program between DOE and industry promotes the adoption of a systems approach to developing, purchasing, and managing motors, drives, and motor-driven equipment that will increase energy efficiency, enhance productivity, and improve environmental quality. Since two-thirds of the industrial sector's electricity use is for motors, industrial motors use over 20 percent of all U.S. electricity generation.
As of October 1996, over sixteen hundred organizations have joined the program. Motor Challenge Showcase Demonstrations, Industry Partnerships, Allied Partnerships, and Excellence Partnerships are exceeding initial program expectations. DOE has selected twenty-nine ongoing showcase demonstrations, representing an industry investment of $10 million. The estimated annual energy savings represents 100 million kilowatt-hours per year--the equivalent of electricity supplied to over five thousand houses a year. The Showcase Demonstrations bring together motor system users, equipment manufacturers, utility companies, and state energy offices to host the design, engineering, installation, and operation of these projects using technology and engineering to optimize electric motor systems. By 2000, Motor Challenge will generate energy cost savings of $250 million.
The 1993 CCAP projected emission reductions of 8.8 MMTCE in 2000 from this action. Because funding for this program has been significantly reduced from originally anticipated levels, current projections are 1.8 MMTCE in 2000 and 5.8 MMTCE in 2010.
Industrial Assessment Centers (Action 15)
Since 1978, DOE has sponsored energy audits for small and medium-sized manufacturers. In 1993, the agency teamed with EPA to expand the Energy Analysis and Diagnostics program to include industrial assessments that result in productivity improvements and waste reduction as well as energy savings. While funding to expand this program under the 1993 CCAP has not been appropriated, the base program is quite active. Industrial Assessment Center program engineering faculty and student teams perform approximately thirty assessments in each of thirty centers each year, for a total of seven thousand energy assessments since 1978, The program has also distributed a "Life Cycle Costing" manual and "Self Assessment" work book for both small and large plants.
The 1993 CCAP projected emission reductions from the expansion of the Industrial Assessment Centers of 0.5 MMTCE. Due to lack of incremental funding, no emission reductions are currently projected for the intended expansion. However, projected emission reductions for the base program (outside of CCAP) are 1.8 MMT in 2000 and 3.7 MMT in 2010.
Waste Minimization (Action 16)
The United States is expanding voluntary source-reduction, pollution-prevention, and product-recycling programs through three programs. The 1993 CCAP projected emission reductions of 4.2 MMTCE from these programs. Current projections are 4.1 MMTCE in 2000 and 7.0 MMTCE in 2010.
National Industrial Competitiveness Through Energy, Environment, Economics Program. NICE3 is a DOE cost-shared grant program. In partnership with states and private companies, DOE catalyzes cleaner production and manufacturing processes, reduces wastes in industry, conserves energy and energy-intensive feedstocks, and improves industrial competitiveness. With fiscal year 1997 funds, thirteen projects were selected to produce the next wave of cost-effective, pollution-prevention technologies that will spawn further innovation as project successes come to fruition. The total federal value of current projects is approximately $25 million, with an average private-sector cost share of over $3.50 of private investment per federal dollar. Successful projects are experiencing a 60 percent annual rate of return.
Waste Wi$e. This program addresses three critical environmental and natural resource challenges now facing the country: the reduction of greenhouse gas emissions, the sustainable use of natural resources, and the economical disposal of solid waste. Waste Wi$e has engaged over five hundred businesses to set voluntary waste-prevention and recycling goals that they can achieve cost-effectively and report on progress toward achieving those goals. Waste Wi$e is opening membership to tribal, state, and local governments for the first time in 1997.
While 1996 results are not yet available, in 1995, Waste Wi$e partners conserved nearly 344,000 tons of materials through waste prevention--a 40 percent increase over 1994 reported figures. In addition, partners quadrupled the reported amount of materials collected for recycling to over four million tons. Partners also helped create stronger markets for collected recyclables by purchasing more than two million tons of recycled-content products in 1995.
Expansion of Recycling Technology . This USDA Forest Service program is developing technology to remove barriers to the use of recycled wood and fiber in durable structural products suitable for the housing markets.
Transportation Sector Actions The combustion of fossil fuels to move people and goods consumed 27 percent of the nation's energy in 1995. The expected increase in demand for transportation services over the next decade will hamper efforts to reduce greenhouse gas emissions and will continue to contribute to urban air pollution and to U.S. reliance on foreign oil. Transportation will be the fastest-growing source of CO2 emissions through the year 2000. The 1993 CCAP contains a package of initiatives to address growth in transportation sector emissions by slowing the growing demand for vehicle travel and enhancing the market for more efficient technologies and cleaner fuels.
Because the transportation sector represents such a significant source of CO2 emissions, the 1993 CCAP called for establishing a process to develop measures that would significantly reduce greenhouse gas emissions from personal motor vehicles, including cars and light trucks. The goal of this process was to identify regulatory and nonregulatory measures that would improve fuel efficiency in new vehicles by an amount equivalent to 2 percent per year over ten to fifteen years.
To implement this commitment, President Clinton established a Policy Advisory Committee to Assist in the Development of Measures to Significantly Reduce Greenhouse Gas Emissions from Personal Motor Vehicles. Despite an extensive effort involving representatives from key public- and private-sector interests, this process failed to produce consensus recommendations. As a result, emission reductions from the transportation sector remain a significant challenge to returning total net emissions to 1990 levels.
Cash Value of Parking (Action 19)
This action is a change in the Internal Revenue Code section relating to the taxation as income of employer-provided parking. Its goal is to reduce vehicle travel and traffic congestion by providing employees a powerful new incentive to car pool, take transit, or find other ways to get to work. The change requires some employers to offer a cash allowance as an option to tax-exempt parking subsidies as a condition of the tax exemption. Legislation to implement the change was introduced in 1994 as part of the General Agreement on Tariffs and Trade legislation but was not enacted. The 1993 CCAP jointly evaluated Actions 19 through 21, expecting them to achieve reductions of 6.6 MMTCE in 2000. Current projections for these programs are 4.6 MMTCE in 2000 and 10.9 MMTCE in 2010.
Innovative Transportation Strategies (Action 20)
This action is expected to broaden the arsenal of strategies available to cities and states seeking to meet the joint challenges of clean air and urban mobility. EPA, in consultation with DOT, is drafting guidance documents that identify the air quality benefits of innovative transportation strategies to reduce vehicle miles traveled.
The United States is aggressively promoting innovative pollution control strategies, concentrating on market mechanisms, such as parking charges, emission-based fees, accelerated vehicle scrapping, and transportation subsidies, to encourage people to drive less. Some states have experimented with innovative programs, such as congestion pricing tolls and mass transit finance. New technologies, such as virtual offices (completely portable communications and computing equipment), smart cars and transit vehicles, and advanced traveler information systems, will be encouraged. This initiative has the potential to reduce the costs of complying with clean air regulations and improve the quality of life of transportation users through increased choice and enhanced environmental quality.
In the 1993 CCAP, Actions 19 through 21 were jointly evaluated and were expected to achieve reductions of 6.6 MMTCE in 2000. Current projections for these programs are 4.6 MMTCE in 2000 and 10.9 MMTCE in 2010.
Telecommuting Program (Action 21)
DOT, in collaboration with other agencies, is implementing a federal government pilot telecommuting program that reduces commuter travel by encouraging work-at-home arrangements and by using existing telework centers, which provide generic office facilities closer to employees' homes. Telecommuting is believed to have a large potential for application, based on rapid technological advance in computers and computer links and on the growth of information workers as a proportion of the total labor force.
In April 1994 the Secretary of Transportation issued a formal departmental policy on telecommuting, and in June 1996 President Clinton directed executive departments and agencies to develop plans and expand their abilities to offer employees opportunities to telecommute. In addition, the federal government is promoting increased use of telecommuting by state and local governments and private industry.
In the CCAP, Actions 19 through 21 were jointly evaluated and were expected to achieve reductions of 6.6 MMTCE in 2000. Current projections for these programs are 4.6 MMTCE in 2000 and 10.9 MMTCE in 2010.
Fuel Economy Labels for Tires (Action 22)
DOT will increase vehicle fuel economy by establishing tire labels for the replacement tire market. These labels will be based on a measure of their impacts on vehicle fuel economy (due to rolling resistance). In 1996 and 1997, Congress specifically restricted DOT from issuing tire labeling standards. The Administration still intends to pursue this measure. The 1993 CCAP expected this action to achieve reductions of 1.5 MMTCE in 2000. Current projections for the action are 0.7 MMTCE in 2000 and 4.8 MMTCE in 2010.
Energy Supply Actions The energy industry is entering an era of unprecedented change due to market and regulatory shifts. The EPAct and actions taken by the Federal Energy Regulatory Commission (FERC) have heightened competition in a variety of energy markets, increasing the efficiency of energy supply. Requirements under the Clean Air Act have prompted a shift to cleaner fuels, such as natural gas. And federal research and development into new energy technologies continues to help the industry increase the efficiency of generating and distributing electricity and meet environmental and market challenges.
The 1993 CCAP includes a number of actions that build on the EPAct, Clean Air, and FERC actions to reduce the amount of CO2 emitted from energy production and use. The intent is to increase the use of natural gas, encourage the commercial application of renewable-energy resources, make more efficient use of U.S. hydroelectric resources, and reduce the amount of energy lost in electricity transmission.
Among fossil fuels, natural gas emits the least amount of CO2 per unit of energy provided, and renewable-energy sources (such as solar, wind, geothermal, and biomass energy) emit no CO2. Nuclear power, which currently provides 22 percent of the electricity generated in the United States, will continue to play a key role in limiting CO2 emissions from electricity production.
Newer technologies can also increase the efficiency of generating and distributing electricity. Increased efficiency lowers the amount of greenhouse gases emitted by reducing the amount of fuel required to generate and deliver electricity to customers. Action 23 (Increasing Natural Gas Share of Energy Use Through Federal Regulatory Reform) and Action 31 (Transmission Pricing Reform) are not expected to achieve any measurable reductions over baseline energy forecasts.
Climate Challenge (Foundation Program )
Through this joint, voluntary effort to reduce, avoid, or sequester greenhouse gases, individual electric utilities are entering into agreements with DOE whereby they are committing to make efficiency improvements in end use, distribution, transmission, and generation; increase their use of energy-efficient electrotechnologies; switch to lower-carbon fuels, such as natural gas, nuclear, or renewable energy; implement transportation actions, including greater use of natural gas-powered and electric vehicles; undertake forestry actions; recover methane from landfills and coal seams; and use fly ash as a Portland cement substitute.
Climate Challenge has 118 Participation Agreements, representing 634 of the over 800 utilities that have expressed interest in the program, and 70 percent of 1990 electricity generation and utility carbon emissions. The utility industry developed nine Climate Challenge initiatives for widespread utility participation. The initiatives include $52 million committed to the Envirotech initiative to accelerate commercialization of renewable-energy technologies; to the Earth Comfort program to increase annual sales of energy-efficient geothermal heat pumps from 40,000 to 400,000; and to the Utility Forest Carbon Management Program, with over $2 million committed to funding several domestic and international forestry projects. Other initiatives include EV America, Tree Power, and the International Donated Equipment Initiative.
The 1993 CCAP did not quantify the impact of Climate Challenge on emissions. DOE estimates that pledged utility actions under the program will result in the reduction of approximately 45.5 MMTCE in the year 2000. The estimate is conservative, in that it does not include reductions not yet quantified, nor the effect of the nine utility industrywide initiatives. Furthermore, it does not include the emission reductions from several utilities that recently joined the program, nor recently increased commitments from existing members. The Administration conducted an analysis of the 45.5 MMTCE of pledged reductions and determined that about 7.6 MMTCE in reductions are beyond any actions included in the 1993 CCAP or in the Administration's Base Case energy forecast, and these reductions in the year 2000 were included as part of the CCAP impacts.
Of the year 2000 reductions for Climate Challenge utilities, about 29 percent (in terms of carbon-equivalent tonnage) are from improvements to existing nuclear power plants; 17 percent from improvements to existing fossil power plants; 17 percent from demand-side energy-efficiency efforts; 8 percent from methane recovery, forestry carbon sequestration, and recycling of coal combustion fly ash; 7 percent from renewable energy; and 22 percent from a broad range of miscellaneous projects, including such areas as improvements to transmission, district heating and cooling, and a range of unspecified activities.
The emission reductions under Climate Challenge will continue to increase as additional utilities join the program, and as existing members add to their existing commitments. Thus, these significant annual reductions are expected to continue well into the next century. Because the Climate Challenge plans do not currently extend beyond 2000, these additional benefits have not been quantified for this analysis. However, given that participation levels are growing, and that most utilities appear to be meeting or expanding upon their commitments, it is reasonable to expect that the Climate Challenge savings would continue at least at the 2000 levels.
Promote Seasonal Gas Use for Control of Nitrogen Oxides (Action 24)
Natural gas, an abundant domestic fuel, emits 15 percent less CO2 per unit of energy provided than oil and 30 percent less than coal. Encouraging the use of natural gas as a pollution control strategy under the Clean Air Act will lower the cost of combating the severe tropospheric ozone pollution problem plaguing many of our cities in a way that also reduces greenhouse gas emissions.
As part of that effort, EPA recently issued guidelines to urge state and local pollution control agencies to allow the use of natural gas in the summer in existing coal- and oil-fired power plants as a strategy to reduce nitrogen oxide (NOX) emissions. EPA will examine additional regulatory options where shifts to cleaner fuels could provide environmental benefits and cost savings. The 1993 CCAP expected this action to reduce emissions by 2.2 MMTCE in 2000. Current projections are that the program will reduce greenhouse gas emissions by approximately 0.5 MMTCE in 2000. No reductions are expected in 2010 below baseline forecasts.
High-Efficiency Gas Technologies (Action 25)
The United States will accelerate the commercialization of high-efficiency gas fuel cell technologies, through joint ventures with utilities, research organizations, and technology developers to fund demonstrations and market-entry initiatives. Fuel cells are an ultra-high-efficiency and environmentally benign method of producing electricity and by-product thermal energy. This technology provides a means of converting a fuel's chemical energy into electrical energy without a combustion process.
The 1993 CCAP projected this action would lead to reductions of 0.6 MMTCE in the year 2000. Because funding for this program has been significantly reduced from originally anticipated levels, current projections are that the program will reduce greenhouse gas emissions by 0.1 MMTCE in 2010, with no reductions expected in 2000.
Renewable Energy Commercialization (Action 26)
DOE strives to commercialize renewable energy by working with U.S. renewable energy companies, electric utilities, and other end users in cost-shared partnerships that share development risk and advance toward agreed-upon cost-reduction targets. Potential buyers of renewables are encouraged to work directly with the renewables industry and DOE to form market-pull partnership consortia to advance common goals toward accepted commercialization targets. These groups include the Utility PhotoVoltaic Group, Solar II (solar thermal central receiver) Commercialization Consortium, Utility Biomass Energy Commercialization Association, Utility Wind Interest Group, USH20 (Solar Hot Water) Consortium, and Geothermal Heat Pump Consortium. These buyer-led groups work directly with their respective renewable-energy industry and with DOE cost-sharing at appropriate stages, such as for hardware demonstration projects.
These efforts were expanded under the 1993 CCAP, which expected their combined effect to lead to 2.2 MMTCE of reductions in the year 2000. However, because funding for this program has been significantly reduced from originally anticipated levels, current projections are that the program will reduce greenhouse gas emissions by approximately 0.3 MMTCE in 2000 and 5.6 MMTCE in 2010.
Expanded Utility Integrated Resource Planning (IRP) Assistance (Action 27)
In 1994, the expanded IRP program emphasized outreach and education, putting IRP tools in the hands of state and regional regulators, legislators, and utility managers. Core program activities--including an Education Voucher program, an Electric Utility Restructuring Partnership, and an IRP in Public Power Project--exceeded program goals. More than 230 educational vouchers were awarded, and more than thirty seminars were sponsored before Congress discontinued funding the program in fiscal year 1996.
The 1993 CCAP expected this action would reduce emissions by 1.4 MMTCE in 2000. Although the program achieved many of its goals before being terminated, the full emission reduction goals will not be achieved. The reductions that will occur have been accounted for in the baseline energy forecast.
Profitable Hydroelectric Efficiency Upgrades (Action 28)
As proposed, this initiative would enable nonfederal developers to invest in environmentally sound upgrades at existing federal hydroelectric projects and to sell the incremental power thus generated at market rates. Significant technological potential exists for increasing generation at hydroelectric facilities, but institutional barriers have complicated efforts to make these profitable efficiency upgrades. Nonfederal investments will increase generation from hydroelectric facilities, reducing the need for fossil-fuel-fired generation. Furthermore, lease payments to the federal government will help reduce the federal deficit. Implementing legislation is currently being drafted.
The 1993 CCAP projected the combined effect of these initiatives would lead to 2.0 MMTCE of reductions in 2000. In the current review, no reductions were attributed to this action due to the uncertainty of enacting implementing legislation.
Energy-Efficient Distribution Transformer Standards (Action 29)
In 1992, EPAct required DOE to determine if standards are warranted for distribution transformers. In July 1996 the Oak Ridge National Laboratory prepared a report entitled Determination Analysis of Energy Conservation Standards for Distribution Transformers, which was peer reviewed by manufacturers of transformers, steel, and aluminum and by utilities, associations, and energy-conservation public interest groups. The report revealed that all energy-conservation cases that were analyzed are technically feasible, appear to be economically justified, and have the potential for significant energy savings. Based on the energy conservation cases analyzed, the potential savings range from 3.6 to 13.7 cumulative quads over the period 2000-2030. The study methodology consisted of four major elements: development of a data base, development of conservation options, assessments of energy-conservation options, and incorporation of feedback from stakeholders. DOE plans to publish a determination notice this year of its decision as to whether efficiency standards are warranted for distribution transformers.
The 1993 CCAP expected the combined effect of Actions 29 and 30 would reduce emissions by 0.8 MMTCE in 2000. Current projections are that the programs will reduce greenhouse gas emissions by approximately 0.5 MMTCE in 2000 and 1.4 MMTCE in 2010.
ENERGY STAR® Distribution Transformers (Action 30)
In 1991, about 7.4 percent of U.S. electric generation was lost while being distributed from power plants to consumers, and approximately 50 billion kilowatt-hours are lost every year in the delivery of electricity from distribution transformers. Stemming transmission and distribution losses will decrease the amount of electricity that needs to be generated to meet electricity demands, thus reducing CO2 emissions.
The United States is implementing an ENERGY STAR® labeling program to encourage electric utilities to invest in high-efficiency transformers that reduce transformer losses. Participating utilities agree to purchase only qualifying equipment designated with the ENERGY STAR® logo and to accelerate the replacement of higher-loss transformers where economically warranted. EPA is also distributing information regarding energy-efficient transformers to utilities and state regulatory bodies and is helping participating utilities organize group purchases of energy-efficient transformers to obtain lower prices.
The 1993 CCAP expected the combined effect of Actions 29 and 30 would reduce emissions by 0.8 MMTCE in 2000. Current projections are that the programs will reduce greenhouse gas emissions by approximately 0.5 MMTCE in 2000 and 1.4 MMTCE in 2010.
Land-Use Change and Forestry Actions Trees, plants, and soils absorb and store CO2 from the atmosphere. In 1995, the annual sequestration by these natural systems (sometimes called carbon "sinks") reduced U.S. net greenhouse gas emissions by 117 MMTCE. When humans affect the biosphere through changes in land use and forest management activities, they alter the natural balance of greenhouse gas emissions.
Most CO2 emissions occur as the result of burning fossil fuels. Additional CO2 emissions occur when the carbon stored in the biosphere is released--for example when trees are harvested and logging residual decomposes. Protecting the carbon stored in these forest reservoirs, therefore, can prevent CO2 emissions from occurring. The United States has already taken significant steps to protect carbon sequestered in forests. Lower harvests in old-growth forests help prevent CO2 emissions. The shift toward ecosystem management also favors timber harvest methods that inflict less damage, and helps retain carbon on forest lands. Sink protection actions are very cost-effective methods for limiting net CO2 emissions.
The CCAP includes several programs to maintain carbon sequestered in forest ecosystems. These programs were projected to provide about 9 percent of the emission reductions needed to reach the greenhouse gas target in 2000, or a total of approximately 10.0 MMTCE in additional annual sequestration. Due to funding cuts of CCAP initiatives, only 0.4 MMTCE in additional annual sequestration is expected by 2000. By 2010, it is anticipated that 2.2 MMTCE will be sequestered annually due to the 1993 CCAP. In addition to Actions 43 and 44, several other actions previously discussed lead to increased carbon sequestration in U.S. forests. In particular, efforts to enhance recycling will limit use of forest products, and Cool Communities' shade tree planting will increase carbon sinks.
Reduce Depletion of Nonindustrial Private Forests (Action 43)
No funding has been provided for this activity beyond the baseline activity that existed prior to the 1993 CCAP.
Accelerate Tree Planting in Nonindustrial Private Forests (Action 44)
In cooperation with the state foresters, USDA's Forest Service is working to increase tree planting on poorly stocked and nonstocked nonindustrial private forest land by 94,294 hectares (233,000 acres) within five years. To accomplish this, the federal government will expand technical assistance and reimburse up to 75 percent of the costs of tree planting. Accelerated planting programs increase carbon uptake and could provide significant economic and environmental benefits over the long term.
The 1993 CCAP projected this measure would reduce net emissions by sequestering an additional 0.5 MMTCE in the year 2000. Current projections are that the programs will reduce net emissions by sequestering an additional 0.4 MMTCE in 2000 and 2.2 MMTCE in 2010.