BACKGROUND INFORMATION INDEX Title 1 President Clinton’s Climate Change Proposal 2 Initial Climate Change Actions Background Information 3 President Clinton’s Five Climate Change Principles 4 President’s Three-Stage Plan on Climate Change 5 Comprehensive Framework for Effective Sensible Action 6 Fact Sheet on International Emissions Trading 7 Fact Sheet on Joint Implementation 8 Fact Sheet on Electricity Restructuring 9 Fact Sheet on Federal Energy Management 10 Fact Sheet on U S Global Change Research Program 11 Fact Sheet on PNGV 12 Fact Sheet on Fuel Cells 13 Fact Sheet on PATH 14 Fact Sheet on Potential Industry Sector Savings 15 Fact Sheet on Potential Building Sector Savings 16 Fact Sheet on Potential Transportation Sector Savings PRESIDENT CLINTON’S FIVE CLIMATE CHANGE PRINCIPLES October 22 1997 Global climate change is the premier environmental challenge and opportunity of the list century and the risks it poses justify sensible preventive steps Addressing this issue is one of the United States ’ greatest imperatives for this andfuture generations Recognizing the solid foundation of climate science President Clinton is committed to strong and sensible action to reduce greenhouse gas emissions — including realistic and binding emissions targets President Clinton’s climate change plan is based on five key principles • Guided bv science The vast majority of the world’s scientists have concluded that if the countries of world do not work together to cut greenhouse gas emissions temperatures will rise and disrupt the global climate Indeed most scientists say this process has already begun But there is much we still don’t know about how the climate and human health will react to increased greenhouse gas concentrations That’s why the President’s plan includes regular science reviews to ensure that our policies are guided by the best science available • Market-based common-sense tools We have learned that the costs of protecting the environment is substantially lower if we harness the power of markets to do so That’s why the President’s plan emphasizes flexible and market-based mechanisms His plan includes a domestic and international permit trading system for greenhouse gas emissions similar to the highly successful permit trading system that has dramatically cut acid rain at a fraction of the predicted cost • Seek win-win solutions There are a multitude of win-win solutions to reducing carbon emissions that can improve our energy efficiency and save consumers money For example a breakthrough in fuel cell technology announced yesterday will clear the way toward developing cars that are twice as efficient as today’s models - cutting pollution while also cutting driving costs The President believes that we must seek such win-win solutions to addressing climate change • Global participation Climate change is a global problem and requires a global solution A ton of carbon emitted in Argentina has just as much effect on the global climate as a ton of carbon emitted in the United States - and within the next few decades emissions from developing countries are expected to exceed those from developed countries And many winwin opportunities exist to reduce greenhouse gas emissions in developing countries That’s why the United States has spear-headed joint implementation projects and the President has committed that the United States will not adopt binding obligations without developing country participation • Common-sense economic reviews Our knowledge of the challenges and opportunities we face will grow over time Therefore the President is calling for regular 5-year economic reviews and updates to ensure that policy-makers both in the Administration and in Congress have the best possible information on how the economy is responding to the effort to address climate change how other countries are performing relative to their own commitments and how the climate is changing in response to human activities THE PRESIDENT’S THREE-STAGE PLAN ON CLIMATE CHANGE October 22 1997 Reflecting his five key principles the President’s plan vv ill proceed in three stages • Stage 1 Priming the Pump Through R D Tax Incentives Incentives for Early Action Federal Leadership and Industry Consultations The first stage of the President’s package includes a 9-point action plan — including $5 billion in tax incentives and spending for R D and energy efficiency incentives for early action a set of Federal government energy initiatives and industry-by-industry consultations to explore their best ideas on how to reduce emissions in a cost-effective manner including market-oriented standards for energy efficiency The first economic review would occur near the end of Stage 1 • Stage 2 Review and Evaluation The second stage which would begin around 2004 will build upon the programs adopted in Stage 1 by including a review of our progress and an evaluation of next steps as we move toward a market-based permit trading system for carbon emissions During this second stage the details of the permit system would be refined and perhaps tested Such a permit system is similar in concept to the one that dramatically cut acid rain emissions - although the scale would be significantly larger than the current acid rain program The second economic review would occur near the end of Stage 2 • Stage 3 Meeting Binding Targets Through Domestic and International Emissions Trading Program In the third stage we would reduce emissions to 1990 levels by 20082012 and below 1990 levels in the 5-year period after that through a market-based domestic and international emissions trading system Before beginning this third stage the second economic update and review would allow Congress and the President to evaluate how the economy had responded to a decade’s worth of experience in the first two stages of the President’s plan The President is committed to working with labor and Congress to insure that we give proper assistance to any workers dislocated by the changes in energy usage inherent in any climate change plan This three-stage program recognizes the long-term nature of the effort to address climate change in three ways • By adopting a graduated approach to emissions reductions it allows us to exploit the tremendous opportunities for win-win reductions first • By adopting a system of regular scientific and economic updates and reviews it allows us to monitor our progress and re-assess our success in reducing emissions the state of scientific knowledge and how the economy is responding to our efforts Only after we have accumulated ten years of experience with the first two stages of the program would we enter the internationally binding period • By insisting that the United States will not adopt binding obligations without developing country participation and by emphasizing the importance of an international trading system and joint implementation we take advantage of low-cost reduction possibilities wherever they occur - either here or abroad COMPREHENSIVE FRAMEWORK FOR EFFECTIVE SENSIBLE ACTION October 22 1997 GREENHOUSE GAS EMISSION REDUCTION TARGET Under the current international climate change agreement signed in Rio de Janeiro in 1992 industrialized countries accepted a non-binding emissions reduction goal Most nations including the United States will fall short of meeting it This fact coupled with better scientific evidence on the seriousness ofthe climate change threat led the US to propose last year that a new agreement set binding limits on emissions The proposed US emissions target is designed to provide important environmental gains while maintaining strong economic growth It is • Realistic Seeks to return U S emissions to 1990 levels in the period 2008-2012 and reduce them further thereafter Rejects European proposal for more stringent early reductions as well as the “do-nothing” approach of some interests • Achievable By providing incentives for early action to reduce emissions attacking domestic energy inefficiencies securing flexible international implementation mechanisms and putting in place a market-based domestic emissions trading system the U S can reach 1990 levels in the proposed time frame with minimal economic costs • Meaningful Achieving 1990 levels in the period 2008-2012 would amount to almost a 30 percent reduction off a business-as-usual path an important first step on the road toward stabilizing concentrations of greenhouse gases in the atmosphere Emissions accounting will include all greenhouse gas sources and sinks including reforestation FLEXIBLE MARKET-BASED IMPLEMENTATION Just as the effects of climate change will be felt globally so too are the causes of climate change global in nature Greenhouse gas emissions do equal harm to the atmosphere whether they come from a coal plant in China or a bus in Boston For this reason any regime to reduce greenhouse gases must be global It must also allow all nations the ability to seek out the most efficient way of reducing emissions so that the greatest gains are achieved at the least cost For these reasons the United States strongly supports the inclusion in a new climate change agreement of two innovative flexible mechanisms for reducing emissions International Emissions Trading —Using Markets to Lower Costs The principle of emissions trading is to use the efficiency of the market place to achieve environmental objectives at the lowest possible cost Under an international emissions trading regime a country or firm would be able to meet its emissions reduction target by reducing pollution itself purchasing reductions from another country or firm that was able to achieve excess gains or some combination of both Joint Implementation —A Global Solution to Low-Cost Reductions Joint Implementation JI is an innovative market-based approach for addressing global climate change that uses international partnerships to achieve low-cost reductions in greenhouse gas emissions Under JI a company in the United States invests in a project which reduces emissions in another country and uses those reductions as a less expensive means of meeting its own target PARTICIPATION OF DEVELOPING COUNTRIES In addition to its non-binding emissions reduction aim for developed countries the Rio climate change agreement required all countries to take policies and measures to reduce emissions Many developing countries have made real strides through for example reducing energy subsidies Nevertheless given that developing country emissions will eclipse those from the developed world within several decades these countries need to do more Accordingly the U S calls on developing countries to strengthen their existing commitments and to agree that their obligations must increase over time to include binding emissions limits Our principles include • Global Participation All countries must participate Every nation would be required to take meaningful actions to limit emissions The U S will not assume binding obligations until developing countries agree to participate meaningfully in the challenge of addressing climate change • Equity The obligations of poorer and less developed countries should take into account their state of economic development and their relative contribution to the climate change problem Assistance While insisting that developing countries take meaningful actions to address climate change the U S recognizes that many of these countries face significant development challenges that hamper their ability to reduce emissions President Clinton is reemphasizing his commitment to working with these nations to help build more sustainable energy futures This includes a $ 1 billion package of assistance from USAID and a renewed commitment to provide financial assistance through the Global Environment Facility as well as our pathbreaking joint implementation proposals FACT SHEET ON INTERNATIONAL EMISSIONS TRADING October 22 1997 Description The principle of emissions trading is to use the efficiency of the market place to achieve environmental objectives at the lowest possible cost Under an international emissions trading regime a country or firm would be able to meet its emissions reduction target by reducing pollution itself purchasing reductions from another country or firm that was able to achieve excess gains or some combination of both Given an effective international regime emissions trading provides a powerful incentive for nations to reduce below the amount required and then sell excess reductions to others who in turn avoid more costly actions The U S has proposed that emissions trading be permitted among all countries that agree to a binding emissions target How it would work Consider a simplified example for how international emissions trading might work Country A and Country B must reduce emissions by 100 tons each It might cost each country $ 1 000 to reduce 100 tons individually for a total cost of $2 000 However if Country A could reduce its emissions by 200 tons for a total cost of $ 1 500 and sell half of these reductions to Country B the overall target would be achieved for $500 less a savings of 25 percent U S experience Emissions trading is being used successfully at the domestic level to reduce sulfur dioxide emissions which cause acid rain under the Clean Air Act Achieving targeted reductions was originally estimated to cost $5 billion annually if traditional controls had been required and $4 billion with emissions trading A GAO estimate after the initial stage of emissions trading now puts the cost at $2 billion per year or 60 percent below the original estimate with pollution reductions significantly ahead of schedule Emissions trading has also been successful in cutting the costs of phasing out leaded gasoline and in curbing the production of chlorofluorocarbons which deplete the ozone layer Cost savings According to the 1997 Economic Report of the President international emissions trading for carbon dioxide could lower the cost of reductions by 50 percent below the minimum achievable using purely domestic programs FACT SHEET ON JOINT IMPLEMENTATION October 22 1997 Description Joint Implementation JI is an innovative market-based approach for addressing global climate change that uses international partnerships to achieve low-cost reductions in greenhouse gas emissions Under JI a company in the United States invests in a project which reduces emissions in another country and uses those reductions as a less expensive means of meeting its own target The U S has proposed that a formal regime that gives credit for JI projects be part of a new climate change agreement How it would work Consider the example of a project announced today as part of a pilot program on joint implementation instituted by the United States Two U S companies Solar Electric Power and Light of Washington D C and Trexler and Associates Inc of Oak Grove Illionois will work with Renewable Energy Services Company of Asia Ltd to market and install 812 000 solar home systems in Sri Lanka These systems will replace the use of kerosene lamps for lighting and the use of diesel-electric charging of lead-acid batteries for powering small home appliances The result will be a 1 5 million metric ton reduction in greenhouse gas emissions and cleaner energy for tens of thousands of people U S experience Under the U S pilot program on JI formed under the existing climate change convention 28 projects have been approved in 12 countries including Costa Rica Bolivia the Czech Republic and Russia These projects span a range of technologies including solar geothermal and wind power fuel switching for district heating biomass energy and reforestation U S companies and organizations already participating include Commonwealth Edison Wisconsin Electric Power Kenetech Windpower Sealweld Corp American Electric Power PacificCorp Detroit Edison Clean Air Coalition and many others Benefits Lower costs JI provides a strong incentive for companies and countries to search the globe for the lowest cost ways of reducing greenhouse gas emissions Expanded exports of U S technology The enormous potential for JI projects around the world creates major opportunities for the increased sale of U S energy efficiency and alternative energy technologies Technology transfer Increased reliance on more energy efficient technologies and less carbon-intensive energy alternatives will help developing countries meet their growing energy needs with more environmentally sustainable solutions FACT SHEET ON ELECTRICITY RESTRUCTURING October 22 1997 As part ofhis climate change initiative President Clinton announced his support for appropriately crafted electricity restructuring legislation that will save consumers billions of dollars while reducing carbon emissions Description The electricity sector is our nation’s most capital intensive industry - and has sales of over $200 billion Under electricity restructuring competition would be the primary mechanism to set electricity generation prices Utilities would open up their distribution and transmission wires to all qualified sellers The transmission and distribution of electricity would continue to be regulated because they will remain monopolies for the foreseeable future The system would be restructured not deregulated Done correctly this process can save consumers in their utility bills and reduce carbon emissions A properly structured retail competition system can deliver electricity more efficiently and just as reliably as our present system of regulated monopolies Cost savings Most experts are confident that restructuring will reduce the cost of electricity although there is a diversity of views over the potential size of the savings Because the industry is so large even modest savings represent billions of dollars DOE economists estimate potential savings of $20 billion a year which would mean average direct savings of about $100 a year to a typical family of four and indirect savings to such a family through lower cost goods and services of about another $ 100 a year Other studies predict far larger savings Carbon reductions With appropriate market-based provisions electricity restructuring legislation could reduce carbon emissions by creating incentives to produce and use electricity more efficiently and with less pollution As emphasized at the White House Conference on Climate Change two-thirds of the energy used to produce electricity is currently wasted Restructuring should introduce incentives for reducing this waste heat Restructuring legislation could also include other provisions — such as various incentives and mandates to promote energy efficiency and renewable energy - that offer potential carbon savings Next steps The Administration looks forward to working with interested parties on crafting comprehensive electricity restructuring legislation FACT SHEET ON FEDERAL ENERGY MANAGEMENT October 22 1997 Aggressive energy management can substantially reduce carbon emissions from the activities of the Federal government which has the nation’s largest energy bill at almost $8 billion per year Significant strides have already been made --energy consumption per square foot in Federal buildings is down 15 percent and energy use in civilian and military vehicles is down about 27 percent from 1985 levels However we can do much more The initiatives below will reduce Federal emissions of greenhouse gases through enhanced focus on energy efficiency and renewable energy They address areas which can deliver the greatest energy savings best leverage private sector funding and improve the Federal procurement system 1 Expand Energy Savings Performance Contracting • Expand use of Energy Savings Performance Contracts ESPC uses private investment capital and expertise to accomplish energy and cost saving projects in Federal facilities When a private sector firm which has invested in federal energy efficiency improvements is fully repaid from its share of the delivered savings all additional savings accrue to the government Streamlined ESPC contracts put in place by DOD and DOE are beginning to speed large investments in energy projects at Federal facilities However use of ESPC’s is still limited in the Federal govermnent The Office of Management and Budget will lead an effort to increase their use It will include new policy and budget guidance for agencies ESPC authority can also be extended to other areas including • Leased Federal buildings These include buildings where the Government either pays for the energy use directly or in other building where ESPC can provide a better lease for the Government • Federal mobility There may be great potential for energy savings from more efficient energy use in aircraft ships and vehicles • Water conservation Water conservation projects save energy because each gallon contains energy from pumping heating chilling or treatment • Non-federalfacilities where the Government makes indirect payment of energy expenses These include for example National Guard facilities which the state owns but where the Federal Government covers utility expenses and public housing facilities which are Federally supported but owned by public housing authorities • State and local government facilities Federal energy experts can help transfer ESPC techniques to state and local governments so they can access this important approach to energy efficiency 2 Improve Federal Procurement of Energy Efficient Technology • Accelerate the development of Product Energy Efficiency Recommendations These cover products that are in the top 25 percent of their class for energy efficiency or have Energy Star ratings for example electric motors and air conditioning chillers They provide a guide to Federal purchasers of the energy efficiency level to request in a specification or procurement Establish as standard practice the purchase of energy efficient products for Government use Traditionally federal purchases have been based on lowest price ignoring the substantial savings many energy efficient products can achieve over their life The Executive Office of the President will lead an interagency team to streamline and update Executive Orders and procurement practices to encourage the acquisition of these products Use of alternative contracting vehicles to acquire energy-efficient products will be encouraged and purchase of products in the top 25 percent of class for energy efficiency or conforming to Energy Star standards will become standard practice subject to necessary exceptions The initiative will be augmented by publication of a “best practices” buying guide and expanded training of purchasing decision-makers Use consolidated purchasing to stimulate markets and lower prices Consolidated Federal purchasing can stimulate commercial markets for new and emerging products which offer greater energy efficiency lower operating costs and sales opportunities for small businesses that produce these products Increase Federal procurement of renewable energy In states that have implemented retail competition in their electricity industry Federal facilities will work with their suppliers to ensure that the facilities purchase competitively supplied non-hydro renewable energy at levels equivalent to the percentage specified in that state’s retail competition legislation Report Federal Agencies' Contributions to Reduction of Carbon Emissions This initiative will develop £in appropriate measurement methodology to convert currently available data on Federal energy use to carbon emissions to aid national carbon reduction efforts 3 Building for the 21st Century Establish a new level of excellence for Federal building construction and renovation that incorporates energy efficiency quality affordability and sustainability By using the latest construction techniques and tapping the knowledge of the building community and local partners agencies will work to ensure that new Federal buildings achieve energy efficiency increases of SO­ SO percent by 2000 as compared to existing facilities This will be accomplished through a “whole building” approach that treats buildings as integrated systems rather than a series of independent component selections Deploy solar technologies in Federal buildings Show Federal leadership by installing solar photovoltaic and solar thermal systems on 20 000 Federal roofs by 2010 in support of the President’s ‘Million Solar Roof Initiative’ Utilize alternative financing methods to provide the rapid infusion of investment necessary to support the cost-effective installation of these systems Expand the use of combined heat and power generation at Federal facilities Combined heat and power makes greater use of the waste heat produced in the generation of electricity Use biomass fuels in Federal boilers Biomass would come from agricultural and wood waste and methane from landfill and treatment plant operations Expand public awareness of energy efficient technologies By showcasing energy efficient and renewable energy technologies at National Parks Federal offices embassies military bases and other facilities the public will be more aware of their potential to reduce pollution and lower costs • Seek increased resources for civilian agency staffing to expand energy management activities and complete energy efficiency projects In recent years budgets for energy management in several key agencies have been cut by more than 80 percent These Federal appropriations often provide the most cost-effective funding for Federal energy efficiency projects 4 Improve Aircraft Ship and Heavy Vehicle Fuel Efficiency • Public-Private partnerships to improve the energy efficiency of Federal aircraft ships and vehicles Energy use in Federal aircraft ships and vehicles predominantly in the military services is responsible for 43 percent of the $8 billion Federal energy bill This initiative would improve the energy efficiency of main propulsion systems with particular emphasis on medium and heavy diesel engines and high performance turbine technology The initiative - designed along the lines of the Partnership for a New Generation of Vehicles - would involve a partnership between Federal agencies and the private sector Advances under this initiative will have significant application in commercial markets In addition the initiative will focus on near-term energy efficiency opportunities such as lighting retrofits on ships • Increase the use of alternative fueled vehicles AFVs in the Federal fleet Federal agencies are increasing the use of alternative fuel vehicles which among other things helps reduce emissions of greenhouse gases This initiative would enhance the focus of the current program on AFVs such as electrics hybrid-electrics natural gas and renewable-fueled vehicles 5 Greenhouse Gas Assessments Federal agencies will be required to assess their greenhouse gas emissions in major actions they undertake FACT SHEET ON U S GLOBAL CHANGE RESEARCH PROGRAM October 22 1997 Background The U S Global Change Research Program USGCRP is a National Research Program conducted under the auspices of the National Science and Technology Council NSTC Committee on Environment and Natural Resources The NSTC is a cabinet-level council established by President Clinton in November 1993 to coordinate Federal science and technology efforts The program’s fundamental purpose is to increase understanding of the Earth system and of human and naturally induced changes in the Earth’s environment and thus provide a sound scientific basis for decision making on global change issues The USGCRP began as a Presidential Initiative and was codified by the Global Change Research Act of 1990 The overall FY 1997 USGCRP budget was $1 81 billion The core program of the USGCRP is focused on four key scientific areas • Seasonal to Interannual Climate Variability The development and refinement of forecasts of seasonal and interannual elimate variability including study and prediction of the El Nino phenomena • Climate Change Over Decades to Centuries Analysis and projection of the effects of long-term climate change on natural resources public health and socio-economic sectors • Changes in Ozone UV Radiation and Atmospheric Chemistry Research on the causes rate magnitude and human health and ecological consequences of changes in stratospheric ozone UV radiation and atmospheric chemistry • Changes in Land Cover and Terrestrial and Aquatic Ecosystems Research on the causes and consequences of land-cover changes and on basic processes governing the functions and structure of terrestrial aquatic and marine ecosystems New Research Directions Global change research is providing the information about the changing Earth system and in particular about climate change that is needed to achieve a sustainable future New research efforts include • A National Assessment of Climate Change Impacts to aggregate information across regions and sectors analyze national-scale consequences and support development of mitigation and adaptation strategies • Improved Regional-scale Analyses including regional estimates of the rate and magnitude of climate change analyses of the environmental and socio-economic consequences of climate change in the context of other stresses and integrated assessments of the implications for society and the environment of climate change • Regional Workshops to examine the vulnerabilities of various regions of the United States to climate change FACT SHEET ON PNGV October 22 1997 Announced at the White House on September 29 1993 by President Clinton Vice President Gore and the CEOs of the domestic auto makers the Partnership for a New Generation of Vehicles PNGV is a partnership between the U S Federal government 7 agencies and 20 federal laboratories and Chrysler Ford and General Motors that aims to strengthen America's competitiveness by developing technologies for a new generation of vehicles Its programs include research support for over 350 automotive suppliers universities and small businesses PNGV's long-term goal is to develop production prototypes of an attractive affordable car that can meet all applicable environmental and safety times and achieve up to three times the fuel efficiency of a comparable automobile sold today This would mean that a typical midsize car would be able to achieve 80 mpg The partnership also aims to i improve automotive manufacturing and ii introduce efficiency technologies into production vehicles as soon as they are economically justified There are numerous reasons for pursuing PNGV including • Environmental Automobiles are a major contributor to atmospheric carbon dioxide a major greenhouse gas Already concentrations of carbon dioxide are 25 percent higher than pre­ industrial levels and are expected to double within the next century Since the number of registered vehicles in the United States is expected to climb from 194 million in 1993 to as many as 270 million in 2010 PNGV's success is critical to any program of controlling US and world greenhouse gas emissions It will also result in low cost methods for controlling the emissions that contribute to urban air pollution • Reducing U S Dependence on Foreign Oil The United States currently imports 50 percent of the oil we consume - this share is expected to grow to more than 60 percent by 2010 Petroleum imports make up ten percent of our country's import inventory and account for a large chunk of the nation's trade deficit This dependence on foreign oil makes the United States vulnerable PNGV Status Report The industrial partners are now in the process of selecting technologies that will be included in concept vehicles that will be completed by the turn of the century The federal agencies are working to revise their research priorities to support both technologies that can be incorporated in production prototypes for 2004 and that can be integrated into even more advanced vehicles that would be designed in later years The goal of the program while extremely ambitious still seems possible given the advances in key technology that have been achieved during the life of the program These include advances in production of low-cost light-weight materials for the vehicle body and frame electrical control systems batteries and compact inexpensive fuel cells including the new technology for using gasoline to power fuel cells announced yesterday and advanced internal combustion engines for use in hybrid vehicles FACT SHEET ON FUEL CELLS October 22 1997 THE BREAKTHROUGH A gasoline-powered technology that would allow you to double the fuel efficiency of a car and emit half the greenhouse gases and virtually no other air pollution For the first time gasoline was used to produce electricity from a pollution-free fuel cell allowing the use of the existing gasoline infrastructure Previously fuel cells have been powered by hydrogen or methanol which are less convenient for use in cars The Department of Energy together with Los Alamos National Laboratory and A D Little have developed a breakthrough fuel processor which can extract hydrogen from gasoline and other fuels such as ethanol and natural gas Last week this fuel processor was combined with a fuel cell from Plug Power to demonstrate for the first time that a fuel cell electric car could be fueled by gasoline or ethanol This eliminates the limited driving range and lengthy recharging times associated with electric cars that run on batteries WHAT IS A FUEL CELL The fuel cell converts the chemical energy of a fuel directly into usable electricity and heat without combustion Fuel cells are similar to batteries in that both produce a direct current by means of an electrochemical process but fuel cells can operate indefinitely as long as fuel is supplied to them Fuel cells can provide power for cars and other applications such as electricity and hot water for buildings The Department of Energy working with its partners has brought down the cost of proton exchange membrane PEM fuel cells by a factor of twenty in the last ten years Continued R D coupled with the economies of scale from mass production of fuel cells as they enter the marketplace should allow us to maintain this pace of cost reduction for another decade PARTNERSHIP FOR A NEW GENERATION OF VEHICLES PNGV The fuel cell breakthrough was accomplished as part of President Clinton’s PNGV initiative an innovative partnership between the government the national laboratories the big three automakers and their suppliers PNGV’s goal is to develop a family-sized vehicle with triple the fuel efficiency of today’s cars without compromising cost or convenience POTENTIAL GREENHOUSE GAS REDUCTIONS One-third of the nation’s carbon dioxide emissions comes from the transportation sector primarily cars Fuel cell technology alone can directly double fuel efficiency and cut carbon dioxide emissions in half In combination with other PNGV advances such as lightweight materials and regenerative breaking fuel cells will allow a tripling of fuel efficiency and a further reduction in greenhouse gas emissions Powering the fuel cell with renewable fuels such as ethanol could eliminate automotive greenhouse gas emissions entirely in the long run The buildings sector also generates one-third of the nation’s emissions of carbon dioxide A building that uses the electricity and hot water from a fuel cell fueled by natural gas would have about half of the greenhouse gas emissions of the average building today Plug Power expects to introduce fuel cells for homes and other buildings in 2000 that will provide electricity for less than the current residential rate By 2010 fuel cells in buildings could be providing emissions savings of five million metric tons of carbon FACT SHEET ON PATH October 22 1997 What is PATH We are working to develop a partnership for 2P‘ century housing bringing together government and industry to develop demonstrate and deploy housing technologies designs and practices that can significantly improve the quality of housing without raising the cost of construction The Partnership for Advancing Technologies in Housing includes government DOE HUD EPA Labor Commerce FEMA and DOD and industry working together develop demonstrate and deploy housing technologies and practices so that homes can be built cheaper more environmentally sustainable more disaster resistant and provide a safer working environment PATH has a five-part approach • Industry-driven research on new technologies and practices • Working with industry on pilot programs building thousands of marketable houses • Streamlining of federal state and local codes and regulations • Judicious use of existing authority on standards • Information campaign to influence consumer demand R D Support more funds for accelerated research and demonstration of inexpensive highly efficient highly attractive housing Link with million solar roofs program Standards The success of PATH will in some part be based on utilizing existing authorities on standards for a select few products that have the potential for great savings There are five appliance products currently under review by DoE Clothes Washers Ranges Ovens Ballasts Residential water heaters transformers Of these the Clothes Washers and Water Heaters seem to have greatest potential Creating Markets The key to making the Partnership successful will be the ability to create markets and consumer demands for homes that meet the PATH goals The Partnership will work with states and communities to help them understand the benefits of building these homes and the opportunities it affords the communities for economic growth The Partnership will attempt to gain agreements between communities that PATH homes can go through an expedited permitting process Education and Outreach Marketing the benefits of these homes to consumers and to encourage consumers to begin to k for homes that are built to the quality level of PATH homes This will need to be an intensive campaign of getting the message out to communities builders and developers This will provide incentives for more and more builders to want to build these homes Pilots The pilots will play an important role in the success of PATH The pilot sites will begin of developing the markets and demonstrate the feasibility of the homes The pilot sites can also act as training sites for builders and community leaders to learn about the benefits of the technologies and as a classroom for training on how to use the technologies Sites under consideration are Stapleton Airport Denver Redevelopment of old airport site near downtown and Florida Working with the State to link energy and environment to disaster resistance and affordability Regulatory Streamlining Working with states and communities on making the code approval process more efficient and less time consuming FACT SHEET ON POTENTIAL INDUSTRY SECTOR SAVINGS October 22 1997 The industrial sector produces approximately one-third of total U S emissions We can cut emissions substantially in this sector through the right mix of tax incentives accelerated research and development electricity restructuring and environmental regulatory reinvention According to a recently released report from five of the nation’s energy laboratories programs such as the ones below can reduce emissions in the industrial sector in 2010 by 28 million metric tons even with no increase in energy prices Increasing Energy Efficiency Energy audits encourage systematic approaches to energy efficiency that typically have high yields Southwire Corporation a large manufacturer of wire rod and cable cut their use of natural gas by 60 percent and cut electricity use by 40 percent per pound of product produced Motors consume 70 percent of industrial electricity used and there is room for improving their efficiency The Greenville Tube Company for example increased productivity by 15 percent increased energy efficiency by 30 percent reduced scrap by 15 percent and achieved $77 000 per year savings -- a 6 month payback -- by improving the efficiency of their motors Cogeneration Combined Heat and Power New technologies available in the industrial sector will allow us to capture the waste heat the U S now throws away With the right policies industrial cogeneration of natural gas or biomass could cut annual carbon emission significantly by 2010 Advanced turbines developed by DOE with industry will be available in three years orders are already being taken They have an overall efficiency of 80 percent to 90 percent produce steam together with low-cost electricity and significantly reduce NOx emissions These turbines can run on natural gas or biomass Some industries have their own low-cost biomass feedstocks for example black liquor gasification in the pulp and paper industry which makes possible cogeneration with nearly zero carbon emissions Expanding Industries of the Future The seven most energy-intensive industries- -steel aluminum petroleum refining chemicals pulp and paper products glass and metal casting- -account for about 80 percent of the carbon emissions in U S manufacturing and more than 90 percent of the hazardous waste Industry partnering with the Department of Energy has developed long-term visions of energy-efficient low-polluting highly competitive Industries of the Future as well as technology roadmaps to identify an R D and deployment pathway to achieving the vision Visions typically foresee annual energy efficiency improvements of 1 0 percent to 1 5 percent for two decades FACT SHEET ON POTENTIAL BUILDINGS SECTOR SAVINGS October 22 1997 The buildings sector also produces approximately one-third of total U S emissions There is substantial opportunity to improve the energy efficiency of our buildings and the appliances in them Many of these technologies improve the quality of service delivered i e higher quality lighting and have also been documented in a number of cases to improve productivity According to a recently released report from five of the nation’s energy laboratories programs such as the ones below can reduce emissions in the buildings sector in 2010 by 25 million metric tons even with no increase in energy prices Standards- Substantial carbon emissions reductions in 2010 can be achieved through existing authority of the Department of Energy to establish market-oriented efficiency standards for appliances such as refrigerators and air conditioners The Department of Energy uses a consensus-based approach in which manufacturers environmentalists consumer advocates and the states work together to develop applicable standards Voluntary Programs Significant carbon reductions in 2010 could also be achieved by expanding voluntary programs such as the joint EPA-DOE Energy Star program Energy Star labeling has already transformed a number of markets For example it has cut the energy used by computers monitors and printers by 50 percent at virtually no incremental cost It is now being extended to dozens of other products Adopting Best Electricity Engineering Practices Electronic equipment consumes electricity in stand­ by mode even when not being used generating 12 MMTs of carbon emission each year Preliminary analysis suggests that 80 percent of that could be saved through adopting best engineering practices without reducing service Research and Deyelopment Designing buildings with advanced technology can reduce energy consumption by 25 to 50 percent without increasing the building’s initial cost The extra cost of some of the energy-efficient equipment is offset by the smaller required heating and cooling system Combined Heat and Power As in industry we can reduce the carbon intensity of the buildings sector by accelerating the use of combined heat and power CHP Two CHP technologies—small turbines and proton-exchange membrane PEM fuel cells—can convert natural gas to useful energy with 80 to 90 percent efficiency significantly cutting carbon emissions from a building FACT SHEET ON POTENTIAL TRANSPORTATION SECTOR SAVINGS October 22 1997 The transportation seetor produces approximately one-third of total U S emissions According to a recently released report from five of the nation’s energy laboratories programs such as the ones below can reduce emissions in the transportation sector in 2010 by 73 million metric tons even with no increase in energy prices High Efficiency Cars And Light Trucks The goal of the President's Partnership for a New Generation of Vehicles is to produce cars that are three times more efficient than current vehicles with no eompromise in size safety comfort or cost The objective is a production prototype vehicle with a fuel efficiency of 80 mpg in 2004 and commercial availability soon after A variety of efficient technologies such as hybrid vehicle design advanced engines regenerative braking and lightweight materials are under development These technologies are also applicable to light trucks and sport utility vehicles so that a PNGV for these heavier passenger vehicles is quite possible with an expanded research effort High efficiency heavy trucks Ongoing federal R D on advanced diesel engines and lightweight materials have the potential to substantially reduce carbon emissions from heavy trucks These technologies are projected to be available by about 2003 and be quickly adopted by trueking manufacturers since energy is a major cost component of freight transportation a truck typically gets 7 to 8 miles per gallon while traveling over 50 000 miles a year Advanced Efficient Aircraft and Rail Ongoing federal R D on advanced aircraft engines improved airframes and air traffic control have the potential to improve aircraft energy efficiency by 35 percent with an additional increment of carbon emissions reductions achieved by increasing the efficiency of trains Low-Carbon Fuel Government-industry R D partnerships have brought the cost of ethanol from cellulosic waste such as crop waste and dedicated crops such as switchgrass from $3 60 per gallon in 1980 to $1 20 per gallon today Such fuels are carbon neutral because the crops capture carbon dioxide when they grow and release it during combustion