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FOIA Number: 2017-1094-F
FOIA
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This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
WH Task Force on Climate Change
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Roger Ballentine; Paul Bledsoe; Julie Anderson
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41301
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Talking Points
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100
3
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2
CARBON SEQUESTRATION & AGRICULTURE
APRIL 1999
Carbon sequestration could play a critical role in helping the world meet the challenge of climate
change. Under the Kyoto Protocol, so-called carbon "sinks" -- activities that absorb carbon, such
as planting trees -- can be used as offsets against emissions of greenhouse gases. The United
States strongly supports the broadest inclusion of sinks that is supported by sound science. Broad
inclusion of sinks has the capacity to help the United States cost effectively address the risks of
climate change and provide opportunities for the agriculture and forestry sectors to be a part of
the solution.
What is carbon sequestration and what agricultural activities sequester carbon? Carbon
sequestration refers to the storage of carbon dioxide from the atmosphere by soils, trees, crops,
and other plants. Carbon sinks, such as farmland, rangeland, and forests, can make a great
contribution to reducing net greenhouse gas emissions. Conservation activities -- such as planting
trees on marginal lands; restoring degraded soils; and adopting best management practices that
improve water quality, soil quality, and habitat protection -- also have the added benefit of
absorbing carbon.
Carbon Sinks and the Kyoto Protocol. The Kyoto Protocol recognizes that sinks must be
included as part of an economically and environmentally sound approach to climate change -- an
approach that the United States worked hard to achieve. Specifically, Article 3.3 of the Protocol
allows certain forestry activities to be counted toward a party's reduction commitments.
Moreover, Article 3.4 allows the Parties of the Protocol to add additional sink activities activities,
such as those related to agricultural soils. There is no need to amend the Protocol to accomplish
this.
International Progress. In 1998, the Parties agreed to move forward with a process to define
various categories of sinks and determine how they can best be measured and verified. This
process includes:
The IPCC Special Report on Land Use Change Issues. The Parties tasked the
Intergovernmental Panel on Climate Change (IPCC) (an international body of over 2,000 of
the world's leading climate scientists and experts) with conducting a comprehensive study on
land-use, land-use change, and forestry activities. Authors of the Special Report include
international technical experts, including many from the United States. Once the IPCC report
is finished in the spring of 2000, the Parties will be in a position at the following Conference
of the Parties to consider further decisions on the scope and use of carbon sinks under the
Protocol.
UN Workshops on Land Use Change and Forestry. The Subsidiary Body for Scientific and
Technological Advice (SBSTA) of the United Nations Framework Convention on Climate
Change (FCCC) is organizing two workshops on land use, land use change, and forestry
issues. The first workshop was held in Rome in September 1998. The objectives of the
Rome workshop were to provide input into the IPCC Special Report and to give Parties the
opportunity to discuss data, methods, and implementation of Article 3.3.
The United States is hosting the next workshop, which will take place in Indianapolis, Indiana
on April 26-28. This workshop will provide another opportunity for Parties to discuss
methodological and technical issues related to additional sink categories, such as those created
by improved conservation or management of agricultural soils, forests, and grasslands. In
preparation for this workshop, the Administration hosted a meeting on April 8 with interested
stakeholders to discuss the United States' presentation at the Indianapolis workshop.
Following the workshop, there will be a May 6 meeting with stakeholders to discuss the status
of this process.
Domestic Progress. The United States leads the world in understanding the science of carbon
sinks. More work, however, is needed to better understand how agricultural and forestry
practices affect the net carbon balance and to develop methods that will assist farmers, ranchers,
and forest landowners in increasing and verifying carbon sinks.
To help further our understanding of carbon sinks and how they can be enhanced, the President's
FY 2000 budget includes funding for the following initiatives:
Demonstration Projects and New R&D. The Forest Service, the Agriculture Research
Service, and the Natural Resources Conservation Service will launch new demonstration
projects as well as undertake additional R&D to better understand farmland, rangeland, and
forest carbon sinks.
Carbon Cycle Initiative. The FY 2000 budget request establishes a new multi-agency
initiative to improve our understanding of how carbon cycles between the atmosphere, the
oceans, and land. Included in this request are funds to study the role of farms, forests, and
other natural or managed lands in capturing carbon. The initiative includes $10 million in new
funding for USDA as well as additional funding for other research agencies.
Soil Carbon Inventory. The FY 2000 budget request includes $14 million to significantly
expand efforts to conduct a comprehensive scientific inventory of carbon stored in U.S. soils
and to develop methods to predict how soil carbon levels would be affected by different
practices and policies.
UNDERSTANDING THE MURKOWSKI "ENERGY AND CLIMATE POLICY ACT"
Senator Frank Murkowski (R-AK) is circulating a draft bill on climate change. While the bill has
several positive features, including a recognition that climate change is a real problem that must be
addressed, overall this proposed legislation does little to advance this important issue.
The bill does not address climate change today but rather leaves the
problem to our children. The bill is premised on the notion that we can put
off efforts to reduce greenhouse gas emissions for many years. The bill focuses
U.S. climate change policies on long-term technology R&D. However,
narrowly focused long-term technology R&D is not sufficient to meet the
challenges of climate change and would simply leave this serious problem for
our children to address.
The bill does not represent a comprehensive strategy to address climate
change. Both long-term technology R&D and technology deployment are
essential to a balanced, cost-effective climate change strategy. For example,
technology deployment is particularly important in the building and industrial
sectors where two-thirds of the greenhouse gas pollution in 2010 will be
caused by equipment that is purchased between now and then. Existing
deployment programs, such as Energy Star and Greenlights, are achieving
emission reductions today. This bill does nothing to strengthen and expand
these efforts.
The bill does not give businesses real credit for sound environmental
management. The bill fails to give businesses credit for actions that reduce
emissions today and fails to protect them against penalty under future
greenhouse gas reduction programs. Instead, the bill offers only unspecified
public "recognition" for such efforts. Businesses should be able to take action
today to lower costs, improve profits and reduce emissions without fear of
being disadvantaged at a later time.
The bill does nothing new to address global warming. The bill purports to
address the issue of climate change by creating a new office at DOE and
authorizing funds for long-term technology R&D. However, the Energy
Policy Act of 1992 already created a Director of Climate Protection at the
Department. Furthermore, the government already enters into agreements with
industry to conduct creative and useful long-term technology R&D -- for
example through DOE's Industries of the Future program -- without the
cumbersome process prescribed in the draft bill.
Murkowski Climate Change Bill
First and most important, we are gratified to see that, in this bill, Senators Murkowski and
Hagel recognize that climate change is a serious issue that needs to be addressed. This is
progress.
*
And we welcome the bill's emphasis on promoting the research, development and
diffusion of technologies to reduce or sequester the greenhouse gases that cause global
warming.
*
At the same time, the bill shouldn't be seen as a substitute for the broad range of activities
that the Administration is carrying on both domestically and internationally to address
climate change, including:
*
a vigorous effort to accelerate the research, development and deployment of energy
efficient technologies and renewable energy. These efforts include both medium and
long-term research as well as more immediate programs like those encouraging the use of
high-efficiency Energy Star products and Green Lights. These programs were funded at
over $1 billiion in FY 99, with nearly $1.4 billion requested for the next year."
*
a five-year package of tax incentives to encourage the purchase of clean
energy products;
*
a bill to restructure the electricity industry that is projected to save 40-60
million metric tons of carbon per year;
*
a set of working industry partnerships with sectors including autos, home
building, steel, chemicals and forest products;
*
an energetic diplomatic effort to complete the unfinished business of the Kyoto
Protocol and bring about the meaningful participation of key developing
countries;
* a $1.7 billion program in scientific research to improve our understanding of
the forces that shape the Earth's climate.
*
We are also pleased that Senators Murkowski and Hagel have clearly stated that the $200
million a year proposed R&D authorization program would be in addition to federal
efforts already underway to address climate change.
*
In short, we welcome the additional authorization, but the real question for
Congress is how much it agrees to appropriate for clean energy efforts that are
good for business, good for consumers, good for U.S. competitiveness, and
good for our energy security.
*
We are concerned that the bill would not give businesses real, bankable credit
for taking early action to reduce greenhouse gases. It proposes steps to
improve the voluntary reporting of greenhouse gas emissions, but businesses
deserve more: they deserve real credit when they take real action.
*
Regarding the Kyoto Protocol, there appears to be a good deal of confusion.
The Administration has said from the beginning that the Protocol is a work in
progress -- a vital and significant accomplishment that embodies the
fundamentally market-based approach that the United States fought for, but a
treaty that needs more work. In particular, a number of key provisions need to
be further fleshed out and, most important, there needs to be greater
participation by developing countries. Until that unfinished business is finished,
the Administration has made clear it won't submit the Protocol for ratification. It is
not in the best interests of the United States to give up on this process.
Our strategy should be to keep working on the diplomatic front to complete
Kyoto so that it can be ratified, and to keep working on the domestic front on
win-win steps to promote research, innovation, the diffusion of clean energy
products and voluntary industry actions to reduce and sequester greenhouse
gases.
MEETING THE CHALLENGE OF GLOBAL CLIMATE CHANGE
APRIL 1999
Global climate change is one of our greatest environmental challenges. The overwhelming
weight of scientific authority tells us that the build-up of greenhouse gases in the atmosphere
creates dangers -- such as severe storms and droughts, increases in respiratory and infectious
diseases, and rising sea levels - that are too serious to ignore.
The Clinton Administration is working at home and abroad to meet the challenge of climate
change. Domestically, we are working on a wide range of initiatives to reduce greenhouse gas
emissions by developing and deploying energy efficient technologies and spurring the broader
use of renewable energy. Internationally, we are working to secure the meaningful participation
of developing countries in addressing global warming and to complete the other unfinished
business of the Kyoto Protocol.
THE SCIENCE OF CLIMATE CHANGE
Greenhouse gases trap heat from the sun. These gases warm the Earth's surface by an estimated 60°
Fahrenheit (F), sustaining our existence on the planet. However, the burning of fossil fuels and
deforestation have increased the concentration of carbon dioxide (the principal greenhouse gas) by
more than 30% since preindustrial times.
Scientists predict that, if we continue on our current course, concentrations of greenhouse gases in
the atmosphere will reach roughly twice current levels by 2100 -- a level not seen on this planet for
the past 50 million years. The Intergovernmental Panel on Climate Change (IPCC), which represents
the work of more than 2,000 of the world's leading climate scientists, estimates that this will lead to
an increase in global temperature of 2 to 6.5° F. By way of comparison, the last ice age was only 5
to 10° F colder than today.
Over the past year, new data from satellites, tree rings, ice cores, and deep boreholes drilled in the
Earth's surface have reinforced the broad scientific consensus that human activities have started to
affect the climate and that continuing on a "business as usual" course will lead to substantial warming
in the next century. Studies have shown that the 20th century has been the warmest century in the
past 1,000 years and that the 1990s have been the warmest decade in that period, while 1998 has
been the single warmest year on record.
POTENTIAL IMPACTS OF CLIMATE CHANGE
Scientists predict a range of likely effects from global warming:
Extreme weather. As temperatures increase, so does the rate of evaporation. This acceleration
of the so-called hydrologic cycle is projected to increase the frequency and intensity of extreme
weather events such as floods and droughts. Last year's El Nino - which produced warmer and
wetter conditions akin to those anticipated from global warming - offered us a window on the
type of extreme weather that climate change may bring, from heat waves and drought in Texas,
to wildfires in Florida, Mexico and Indonesia, ice storms in the northeastern United States, and
devastating floods in China and Bangladesh.
Human health. Warmer temperatures are projected to increase fatalities from heat stress and
expand the geographic ranges for diseases like malaria and dengue fever. Additional smog
caused by warmer temperatures could increase the incidence of asthma and other respiratory
illnesses, particularly among children and the elderly.
Sea level rise. Scientists project that the sea level will rise by an additional 6 to 37 inches by
2100, endangering island states and coastal areas. A 20-inch rise could inundate 7,000 square
miles of the U.S. coastline, with Florida and the Gulf Coast at greatest risk.
Agricultural impacts. Changes in growing seasons, water availability, soil moisture, and
precipitation are expected to cause significant regional shifts in food productivity, with decreased
production in many of the world's poorest regions. Water supplies and water quality may also be
affected, posing threats to irrigation, fisheries, and drinking supplies.
Damage to ecosystems. Many species are highly adapted to particular climate conditions and
may not survive substantial climate shifts. For example, the United States may lose beech trees
and sugar maples, and western conifer forests are likely to shrink, as the tolerable climate zones
for these species shift hundreds of miles to the north.
PRESIDENT CLINTON'S DOMESTIC PLAN
Since 1993, President Clinton has put into place dozens of win-win programs to develop and deploy
energy efficient technologies and spur the development and broader use of renewable energy. These
efforts have accelerated since the Kyoto climate change conference in 1997.
Climate Change Technology Initiative. This vigorous program of tax incentives and
investments focuses on energy efficiency and renewable energy technologies. The FY 1999
appropriations for these programs totaled over $1 billion and represented a 25% increase over
the prior year. The President's FY 2000 budget proposes a still more accelerated effort.
The tax incentive package contains $3.6 billion over five years for consumers who purchase
energy efficient products and for producers of energy from renewable sources. Highlights
include: a tax credit of up to $2000 for energy efficient new homes; a 10-20% credit for
selected energy efficient products for homes and buildings; a credit of up to $2000 for
rooftop solar systems; a credit of up to $4000 for qualifying electric, fuel cell or hybrid
vehicles; extension of the current 1.5 cents/kilowatt hour credit for the production of
electricity from wind and biomass; an expansion of the biomass credit to cover additional
sources; and a 1.0 cent/kilowatt hour credit for cofiring coal and biomass in power plants.
The investment package contains nearly $1.4 billion in FY 2000 to research, develop, and
deploy clean energy technologies. This represents a 34% increase over the amount
appropriated in FY 1999. Highlights include: increased funding for the Partnership for a New
Generation of Vehicles, a government-industry effort to develop cars that get up to three
times the fuel efficiency of today's cars; the Partnership for Advancing Technology in
Housing, which aims to improve the energy efficiency of new homes by more than 50% and
to retrofit 15 million existing homes to make them 30% more energy efficient within a
decade; a stepped-up Bioenergy Initiative to develop advanced bioenergy technologies;
expanded research and development efforts in other key renewable energy technologies, such
as solar, wind, and geothermal energy; and a Carbon Cycle Initiative, to deepen our
understanding of carbon "sinks," such as forests and farmlands.
2
Human health. Warmer temperatures are projected to increase fatalities from heat stress and
expand the geographic ranges for diseases like malaria and dengue fever. Additional smog
caused by warmer temperatures could increase the incidence of asthma and other respiratory
illnesses, particularly among children and the elderly.
Sea level rise. Scientists project that the sea level will rise by an additional 6 to 37 inches by
2100, endangering island states and coastal areas. A 20-inch rise could inundate 7,000 square
miles of the U.S. coastline, with Florida and the Gulf Coast at greatest risk.
Agricultural impacts. Changes in growing seasons, water availability, soil moisture, and
precipitation are expected to cause significant regional shifts in food productivity, with decreased
production in many of the world's poorest regions. Water supplies and water quality may also be
affected, posing threats to irrigation, fisheries, and drinking supplies.
Damage to ecosystems. Many species are highly adapted to particular climate conditions and
may not survive substantial climate shifts. For example, the United States may lose beech trees
and sugar maples, and western conifer forests are likely to shrink, as the tolerable climate zones
for these species shift hundreds of miles to the north.
PRESIDENT CLINTON'S DOMESTIC PLAN
Since 1993, President Clinton has put into place dozens of win-win programs to develop and deploy
energy efficient technologies and spur the development and broader use of renewable energy. These
efforts have accelerated since the Kyoto climate change conference in 1997.
Climate Change Technology Initiative. This vigorous program of tax incentives and
investments focuses on energy efficiency and renewable energy technologies. The FY 1999
appropriations for these programs totaled over $1 billion and represented a 25% increase over
the prior year. The President's FY 2000 budget proposes a still more accelerated effort.
The tax incentive package contains $3.6 billion over five years for consumers who purchase
energy efficient products and for producers of energy from renewable sources. Highlights
include: a tax credit of up to $2000 for energy efficient new homes; a 10-20% credit for
selected energy efficient products for homes and buildings; a credit of up to $2000 for
rooftop solar systems; a credit of up to $4000 for qualifying electric, fuel cell or hybrid
vehicles; extension of the current 1.5 cents/kilowatt hour credit for the production of
electricity from wind and biomass; an expansion of the biomass credit to cover additional
sources; and a 1.0 cent/kilowatt hour credit for cofiring coal and biomass in power plants.
The investment package contains nearly $1.4 billion in FY 2000 to research, develop, and
deploy clean energy technologies. This represents a 34% increase over the amount
appropriated in FY 1999. Highlights include: increased funding for the Partnership for a New
Generation of Vehicles, a government-industry effort to develop cars that get up to three
times the fuel efficiency of today's cars; the Partnership for Advancing Technology in
Housing, which aims to improve the energy efficiency of new homes by more than 50% and
to retrofit 15 million existing homes to make them 30% more energy efficient within a
decade; a stepped-up Bioenergy Initiative to develop advanced bioenergy technologies;
expanded research and development efforts in other key renewable energy technologies, such
as solar, wind, and geothermal energy; and a Carbon Cycle Initiative, to deepen our
understanding of carbon "sinks," such as forests and farmlands.
2
Electricity restructuring. Another core element of the President's plan involves restructuring
the electricity industry by introducing competition that will save consumers millions on their
energy bills while reducing greenhouse gas emissions. The Administration's restructuring
proposal would provide a profit incentive for generators to produce more electricity with less
fuel and to improve energy efficiency. It also includes an aggressive, 7.5 percent renewable
portfolio standard to increase the use of electricity from renewable sources and a $3 billion Public
Benefits Fund to spur greater investment in energy efficiency and renewables.
Industry Partnerships. The Administration is also engaged in a wide range of consultations with
key industry sectors to improve energy use and reduce emissions. For example, the Industries of
the Future program works cooperatively with the nation's most energy-intensive industries --
such as aluminum, glass, chemicals, forest products, mining, petroleum refining, and steel -- to
develop technologies that increase energy and resource efficiency.
Credit for Early Action. The Administration is committed to working with Congress and
industry on legislation to reward companies taking early, voluntary action to reduce their
greenhouse gas emissions or increase carbon sequestration.
Clean Air Partnership Fund. The President's FY 2000 budget proposes $200 million for the
creation of a new Clean Air Partnership Fund to support state and local projects to reduce both
greenhouse gas emissions and ground-level air pollutants.
Federal energy use and procurement. The President's plan seeks to substantially reduce the
Federal government's own greenhouse gas emissions by improving the energy efficiency of
Federal facilities and activities and reforming procurement practices. These actions are important
in their own right, since the Federal government is the nation's largest single energy user, but
they also set an important example for the private sector.
Domestic emissions trading. The President has proposed a domestic emissions trading system
to begin by 2008 so that we can achieve our emissions target at the lowest possible cost. The
U.S. has used emissions trading successfully to reduce the pollution that causes acid rain --
exceeding environmental objectives at about 50% the expected cost.
Scientific research. The Administration is continuing its strong support for the U.S. Global
Change Research Program, with nearly $1.8 billion in funding requested for FY 2000. This
program provides a sound science foundation for policy decisions by furthering our
understanding of human- and naturally-induced changes in the Earth's environment and assessing
the likely consequences of global warming.
DIPLOMATIC AGENDA
Thanks largely to U.S. leadership, the international climate change agreement reached at Kyoto,
Japan in December 1997, combines strong environmental targets with elements of flexibility that will
allow nations to meet their targets in a cost-effective manner, including:
Flexible market mechanisms. The Protocol includes critically important market mechanisms
that can dramatically cut the cost of reducing emissions. Chief among these are international
emissions trading and the so-called Clean Development Mechanism (CDM), which will allow
U.S. companies to participate in joint clean energy ventures in the developing world and earn
credits from verified reductions in greenhouse gas emissions.
3
Emissions targets are to be reached over a five-year commitment period. The first
commitment period will be 2008-2012. Allowing emissions to averaged over a commitment
period helps smooth out short-term fluctuations due to economic performance or weather.
Having a decade before the start of the binding period will allow more time for companies to
make the transition to greater energy efficiency and/or lower carbon technologies.
Emissions targets include all six major greenhouse gases. This will provide both more
comprehensive environmental protection and additional flexibility for nations and companies.
Activities that absorb carbon, such as planting trees, can be used to offset emissions.
Including these so-called carbon sinks will encourage afforestation, reforestation, and better
forestry and agricultural conservation practices.
At the November 1998 UN climate change conference in Buenos Aires, the parties agreed on a two-
year timetable for filling in the key details of the Kyoto Protocol in areas such as emissions trading,
the CDM, compliance, and the scope and use of carbon sinks. Buenos Aires also saw progress on
the issue of developing country participation as Argentina and Kazakhstan announced their intention
to take on binding emissions targets for the 2008-2012 time period. The President has made clear
that he will not submit the Kyoto Protocol to the Senate without meaningful participation from key
developing countries in efforts to address global warming.
ECONOMIC COST OF KYOTO
The Administration's economic analysis of the Kyoto Protocol concludes that, if we do it right, the
cost to the United States of meeting our Kyoto target should be modest. Even without counting the
impact of domestic policies or the environmental, health, and economic benefits of limiting climate
change, estimates derived from economic modeling suggest an emissions price in the range of $14 to
$23 per ton of greenhouse gases. In 2010, that would translate into an increase of $70 to $110 per
year for an average family's energy bill. This increase, however, would be substantially offset by the
decline in electricity prices resulting from increased competition in a restructured electricity industry,
as the Administration and others have proposed. In addition, noted economists have estimated the
ancillary benefits of reducing greenhouse gas emissions -- such as reduced air pollution -- could
produce savings equal to one quarter of the costs of meeting our Kyoto target.
CONCLUSION
For the past 25 years, efforts to protect the environment, whether by cleaning our air, our water, or
eliminating acid rain, have been repeatedly assailed as a threat to our economy. Yet today, we have
the cleanest environment in a generation and the strongest economy in a generation. President
Clinton's balanced approach to the challenge of climate change will allow us to continue to grow the
economy and protect the environment at the same time.
4
Emissions targets are to be reached over a five-year commitment period. The first
commitment period will be 2008-2012. Allowing emissions to averaged over a commitment
period helps smooth out short-term fluctuations due to economic performance or weather.
Having a decade before the start of the binding period will allow more time for companies to
make the transition to greater energy efficiency and/or lower carbon technologies.
Emissions targets include all six major greenhouse gases. This will provide both more
comprehensive environmental protection and additional flexibility for nations and companies.
Activities that absorb carbon, such as planting trees, can be used to offset emissions.
Including these so-called carbon sinks will encourage afforestation, reforestation, and better
forestry and agricultural conservation practices.
At the November 1998 UN climate change conference in Buenos Aires, the parties agreed on a two-
year timetable for filling in the key details of the Kyoto Protocol in areas such as emissions trading,
the CDM, compliance, and the scope and use of carbon sinks. Buenos Aires also saw progress on
the issue of developing country participation as Argentina and Kazakhstan announced their intention
to take on binding emissions targets for the 2008-2012 time period. The President has made clear
that he will not submit the Kyoto Protocol to the Senate without meaningful participation from key
developing countries in efforts to address global warming.
ECONOMIC COST OF KYOTO
The Administration's economic analysis of the Kyoto Protocol concludes that, if we do it right, the
cost to the United States of meeting our Kyoto target should be modest. Even without counting the
impact of domestic policies or the environmental, health, and economic benefits of limiting climate
change, estimates derived from economic modeling suggest an emissions price in the range of $14 to
$23 per ton of greenhouse gases. In 2010, that would translate into an increase of $70 to $110 per
year for an average family's energy bill. This increase, however, would be substantially offset by the
decline in electricity prices resulting from increased competition in a restructured electricity industry,
as the Administration and others have proposed. In addition, noted economists have estimated the
ancillary benefits of reducing greenhouse gas emissions -- such as reduced air pollution -- could
produce savings equal to one quarter of the costs of meeting our Kyoto target.
CONCLUSION
For the past 25 years, efforts to protect the environment, whether by cleaning our air, our water, or
eliminating acid rain, have been repeatedly assailed as a threat to our economy. Yet today, we have
the cleanest environment in a generation and the strongest economy in a generation. President
Clinton's balanced approach to the challenge of climate change will allow us to continue to grow the
economy and protect the environment at the same time.
4
CARBON SEQUESTRATION & AGRICULTURE
APRIL 1999
Carbon sequestration could play a critical role in helping the world meet the challenge of climate
change. Under the Kyoto Protocol, so-called carbon "sinks" activities that absorb carbon, such
as planting trees can be used as offsets against emissions of greenhouse gases. The United
States strongly supports the broadest inclusion of sinks that is supported by sound science. Broad
inclusion of sinks has the capacity to help the United States cost effectively address the risks of
climate change and provide opportunities for the agriculture and forestry sectors to be a part of
the solution.
What is carbon sequestration and what agricultural activities sequester carbon? Carbon
sequestration refers to the storage of carbon dioxide from the atmosphere by soils, trees, crops,
and other plants. Carbon sinks, such as farmland, rangeland, and forests, can make a great
contribution to reducing net greenhouse gas emissions. Conservation activities -- such as planting
trees on marginal lands; restoring degraded soils; and adopting best management practices that
improve water quality, soil quality, and habitat protection also have the added benefit of
absorbing carbon.
Carbon Sinks and the Kyoto Protocol. The Kyoto Protocol recognizes that sinks must be
included as part of an economically and environmentally sound approach to climate change -- an
approach that the United States worked hard to achieve. Specifically, Article 3.3 of the Protocol
allows certain forestry activities to be counted toward a party's reduction commitments.
Moreover, Article 3.4 allows the Parties of the Protocol to add additional sink activities activities,
such as those related to agricultural soils. There is no need to amend the Protocol to accomplish
this.
International Progress. In 1998, the Parties agreed to move forward with a process to define
various categories of sinks and determine how they can best be measured and verified. This
process includes:
The IPCC Special Report on Land Use Change Issues. The Parties tasked the
Intergovernmental Panel on Climate Change (IPCC) (an international body of over 2,000 of
the world's leading climate scientists and experts) with conducting a comprehensive study on
land-use, land-use change, and forestry activities. Authors of the Special Report include
international technical experts, including many from the United States. Once the IPCC report
is finished in the spring of 2000, the Parties will be in a position at the following Conference
of the Parties to consider further decisions on the scope and use of carbon sinks under the
Protocol.
UN Workshops on Land Use Change and Forestry. The Subsidiary Body for Scientific and
Technological Advice (SBSTA) of the United Nations Framework Convention on Climate
Change (FCCC) is organizing two workshops on land use, land use change, and forestry
issues. The first workshop was held in Rome in September 1998. The objectives of the
Rome workshop were to provide input into the IPCC Special Report and to give Parties the
opportunity to discuss data, methods, and implementation of Article 3.3.
The United States is hosting the next workshop, which will take place in Indianapolis, Indiana
on April 26-28. This workshop will provide another opportunity for Parties to discuss
methodological and technical issues related to additional sink categories, such as those created
by improved conservation or management of agricultural soils, forests, and grasslands. In
preparation for this workshop, the Administration hosted a meeting on April 8 with interested
stakeholders to discuss the United States' presentation at the Indianapolis workshop.
Following the workshop, there will be a May 6 meeting with stakeholders to discuss the status
of this process.
Domestic Progress. The United States leads the world in understanding the science of carbon
sinks. More work, however, is needed to better understand how agricultural and forestry
practices affect the net carbon balance and to develop methods that will assist farmers, ranchers,
and forest landowners in increasing and verifying carbon sinks.
To help further our understanding of carbon sinks and how they can be enhanced, the President's
FY 2000 budget includes funding for the following initiatives:
Demonstration Projects and New R&D. The Forest Service, the Agriculture Research
Service, and the Natural Resources Conservation Service will launch new demonstration
projects as well as undertake additional R&D to better understand farmland, rangeland, and
forest carbon sinks.
Carbon Cycle Initiative. The FY 2000 budget request establishes a new multi-agency
initiative to improve our understanding of how carbon cycles between the atmosphere, the
oceans, and land. Included in this request are funds to study the role of farms, forests, and
other natural or managed lands in capturing carbon. The initiative includes $10 million in new
funding for USDA as well as additional funding for other research agencies.
Soil Carbon Inventory. The FY 2000 budget request includes $14 million to significantly
expand efforts to conduct a comprehensive scientific inventory of carbon stored in U.S. soils
and to develop methods to predict how soil carbon levels would be affected by different
practices and policies.
The United States is hosting the next workshop, which will take place in Indianapolis, Indiana
on April 26-28. This workshop will provide another opportunity for Parties to discuss
methodological and technical issues related to additional sink categories, such as those created
by improved conservation or management of agricultural soils, forests, and grasslands. In
preparation for this workshop, the Administration hosted a meeting on April 8 with interested
stakeholders to discuss the United States' presentation at the Indianapolis workshop.
Following the workshop, there will be a May 6 meeting with stakeholders to discuss the status
of this process.
Domestic Progress. The United States leads the world in understanding the science of carbon
sinks. More work, however, is needed to better understand how agricultural and forestry
practices affect the net carbon balance and to develop methods that will assist farmers, ranchers,
and forest landowners in increasing and verifying carbon sinks.
To help further our understanding of carbon sinks and how they can be enhanced, the President's
FY 2000 budget includes funding for the following initiatives:
Demonstration Projects and New R&D. The Forest Service, the Agriculture Research
Service, and the Natural Resources Conservation Service will launch new demonstration
projects as well as undertake additional R&D to better understand farmland, rangeland, and
forest carbon sinks.
Carbon Cycle Initiative. The FY 2000 budget request establishes a new multi-agency
initiative to improve our understanding of how carbon cycles between the atmosphere, the
oceans, and land. Included in this request are funds to study the role of farms, forests, and
other natural or managed lands in capturing carbon. The initiative includes $10 million in new
funding for USDA as well as additional funding for other research agencies.
Soil Carbon Inventory. The FY 2000 budget request includes $14 million to significantly
expand efforts to conduct a comprehensive scientific inventory of carbon stored in U.S. soils
and to develop methods to predict how soil carbon levels would be affected by different
practices and policies.
CARBON SEQUESTRATION & AGRICULTURE
APRIL 1999
Carbon sequestration could play a critical role in helping the world meet the challenge of climate
change. Under the Kyoto Protocol, so-called carbon "sinks" activities that absorb carbon, such
as planting trees -- can be used as offsets against emissions of greenhouse gases. The United
States strongly supports the broadest inclusion of sinks that is supported by sound science. Broad
inclusion of sinks has the capacity to help the United States cost effectively address the risks of
climate change and provide opportunities for the agriculture and forestry sectors to be a part of
the solution.
What is carbon sequestration and what agricultural activities sequester carbon? Carbon
sequestration refers to the storage of carbon dioxide from the atmosphere by soils, trees, crops,
and other plants. Carbon sinks, such as farmland, rangeland, and forests, can make a great
contribution to reducing net greenhouse gas emissions. Conservation activities -- such as planting
trees on marginal lands; restoring degraded soils; and adopting best management practices that
improve water quality, soil quality, and habitat protection -- also have the added benefit of
absorbing carbon.
Carbon Sinks and the Kyoto Protocol. The Kyoto Protocol recognizes that sinks must be
included as part of an economically and environmentally sound approach to climate change -- an
approach that the United States worked hard to achieve. Specifically, Article 3.3 of the Protocol
allows certain forestry activities to be counted toward a party's reduction commitments.
Moreover, Article 3.4 allows the Parties of the Protocol to add additional sink activities activities,
such as those related to agricultural soils. There is no need to amend the Protocol to accomplish
this.
International Progress. In 1998, the Parties agreed to move forward with a process to define
various categories of sinks and determine how they can best be measured and verified. This
process includes:
The IPCC Special Report on Land Use Change Issues. The Parties tasked the
Intergovernmental Panel on Climate Change (IPCC) (an international body of over 2,000 of
the world's leading climate scientists and experts) with conducting a comprehensive study on
land-use, land-use change, and forestry activities. Authors of the Special Report include
international technical experts, including many from the United States. Once the IPCC report
is finished in the spring of 2000, the Parties will be in a position at the following Conference
of the Parties to consider further decisions on the scope and use of carbon sinks under the
Protocol.
UN Workshops on Land Use Change and Forestry. The Subsidiary Body for Scientific and
Technological Advice (SBSTA) of the United Nations Framework Convention on Climate
Change (FCCC) is organizing two workshops on land use, land use change, and forestry
issues. The first workshop was held in Rome in September 1998. The objectives of the
Rome workshop were to provide input into the IPCC Special Report and to give Parties the
opportunity to discuss data, methods, and implementation of Article 3.3.
ADMINISTRATION ECONOMIC ANALYSIS:
MEETING THE CHALLENGE OF CLIMATE CHANGE AT A REASONABLE COST
July 31, 1998
The Administration's economic analysis of the Kyoto Protocol concludes that the costs of
meeting our Kyoto target for reducing greenhouse gases should be modest; that taking
action to address global warming amounts to an insurance policy against a serious threat;
that there are significant opportunities for low-cost reductions both at home and abroad;
and that the benefits of averting climate change be very large.
There is a powerful scientific rationale for taking action on global warming; taking action
amounts to an insurance policy against a serious risk. Greenhouse gases are rapidly building up in
the atmosphere and at current rates will reach levels not seen in 50 million years by 2100. The nine
hottest years on record have occurred since 1987, 1997 was the hottest year ever, and 1998 has been
hotter still. Our leading scientists warn of serious consequences, like severe droughts, floods and
health problems, if global warming is ignored. In 1992, the National Academy of Sciences said:
"
even given the considerable uncertainties in our knowledge of the relevant phenomena,
greenhouse warming poses a potential threat sufficient to merit prompt responses Investment in
mitigation measures acts as insurance protection against the great uncertainties and the possibility of
dramatic surprises."
The costs of meeting our Kyoto target should be modest. Even without counting the impact of
domestic policies or the benefits of acting to mitigate climate change, estimates derived using the
Second Generation Model (SGM) suggest an emissions price in the range of $14 to $23 per ton of
greenhouse gases. In 2010, that would translate into an increase of $70-110 per year for an average
family's energy bill, although such increase would be substantially offset by the decline in electricity
prices resulting from restructuring the electricity industry, as the Administration and others have
proposed.
Domestic actions - which are not factored into the SGM model - can further reduce costs and
substantially increase the amount of reductions made at home. These include Federal electricity
restructuring; efforts to increase the rate of technology improvement, such as the President's $6.3
billion budget package; activities, like forestry activities, which can sequester carbon; industry
consultations; and initiatives to reform Federal energy use and procurement.
Doing it smart: The Kyoto Protocol is based upon flexibility measures that reduce costs. At U.S.
insistence, the Kyoto Protocol allows emissions to be reduced where and when such reductions are
cheapest. Key provisions include international trading of emissions permits as well as measures that
allow our companies to share credit for emissions reducing projects abroad.
The benefits of acting to address climate change could be very large. Noted economists have
estimated the environmental, health, and economic costs of global warming projected to occur during
the next century to be 1% of GDP or more - over $80 billion a year in today's terms. In the short
term, the ancillary benefits of reducing greenhouse gas emissions - such as reduced air pollution -
could produce savings equal to one quarter of the costs of meeting our Kyoto target.
DRAFT
Meeting the Challenge of Global Climate Change
April 1999
Global climate change is one of our greatest environmental challenges. The great weight of
scientific authority tells us that the problem is real and that the threats it poses -- such as severe
storms and droughts, increases in respiratory and infectious diseases, and rising sea levels -- are
too serious to ignore.
The Clinton Administration is working at home and abroad to meet the challenge of climate
change. Domestically, we are working on a wide range of initiatives to reduce greenhouse gas
emissions by developing and deploying energy efficient technologies and spurring the broader
use of renewable energy. Internationally, we are working to secure the meaningful participation
of developing countries in addressing global warming and to complete the other unfinished
business of the Kyoto Protocol.
The Science of Climate Change
Greenhouse gases trap heat from the sun to keep the Earth's temperature an estimated 60°
Fahrenheit (F) warmer than it would be absent such gases, sustaining our existence on the planet. As
a result of the burning of fossil fuels and deforestation, the concentration of carbon dioxide (CO2),
the principal greenhouse gas, has increased 30% since preindustrial times.
If we continue on a business-as-usual trajectory, this concentration is expected to reach almost twice
current levels by 2100 -- a level not seen in 50 million years. The Intergovernmental Panel on
Climate Change (IPCC), which represents the work of more than 2,000 of the world's leading
climate scientists, estimates that this will lead to an increase in global temperature of 2 to 6.5° F. By
way of comparison, the last ice age was only about 9° F colder than today.
Over the past year, new data from satellites, tree rings, ice cores, and deep boreholes drilled in the
Earth's surface have reinforced the broad scientific consensus that human activities have started to
affect the climate and that continuing a "business as usual" course will lead to substantial warming in
the next century. Studies have shown the 20th century to be the warmest century in the past 1,000
years and that the 1990s have been the warmest decade in that period. Since reliable instrument
records were first kept more than a century ago, 7 of the 10 warmest years on record have all
occurred since 1990, with 1998 being the warmest year.
Potential Impacts of Climate Change
Scientists predict a range of likely effects from global warming:
Extreme weather. As temperatures increase, so does the rate of evaporation. This acceleration of
the so-called hydrologic cycle is projected to increase the frequency and intensity of extreme
weather events such as floods and droughts. Last year's El Nino - which produced warmer and
wetter conditions akin to those anticipated from global warming - offered us a window on the
type of extreme weather that climate change may bring, from heat waves and drought in Texas,
to wildfires in Florida, Mexico and Indonesia, ice storms in the northeastern United States, and
devastating floods in China and Bangladesh.
Human health. Warmer temperatures are projected to increase fatalities from heat stress and
expand the geographic ranges for diseases like malaria and dengue fever. Additional smog
caused by warmer temperatures could increase the incidence of asthma and other respiratory
illnesses, particularly among children and the elderly.
Sea level rise. Scientists project that the sea level will rise by an additional 6 to 37 inches by 2100,
endangering island states and coastal areas. A 20-inch rise could inundate 7,000 square miles of
the U.S. coastline, with Florida and the Gulf Coast at greatest risk.
Agricultural impacts. Changes in growing seasons, water availability, soil moisture, and
precipitation are expected to cause significant regional shifts in food productivity, with decreased
production in many of the world's poorest regions. Water supplies and water quality may also be
affected, posing threats to irrigation, fisheries, and drinking supplies.
Damage to ecosystems. Many species are highly adapted to particular climate conditions and may
not survive substantial climate shifts. For example, the United States may lose beech trees and
sugar maples, and western conifer forests are likely to shrink, as the tolerable climate zones for
these species shift hundreds of miles to the north.
President Clinton's Domestic Plan
Since 1993, President Clinton has put into place dozens of win-win programs to develop and deploy
energy efficient technologies and spur the development and broader use of renewable energy. These
efforts have accelerated since the Kyoto climate change conference in 1997.
Climate Change Technology Initiative. This vigorous program of tax incentives and investments
focuses on energy efficiency and renewable energy technologies. The FY 1999 appropriations
for these programs totaled over $1 billion and represented a 25% increase over the prior year.
The President's FY 2000 budget proposes a still more accelerated effort.
The tax incentive package contains $3.6 billion over five years for consumers who purchase
energy efficient products and for producers of energy from renewable sources. Highlights
include: a tax credit of up to $2000 for energy efficient new homes; a 10-20% credit for
selected energy efficient products for homes and buildings; a credit of up to $2000 for
rooftop solar systems; a credit of up to $4000 for qualifying electric, fuel cell or hybrid
vehicles; extension of the current 1.5 cents/kilowatt hour credit for the production of
electricity from wind and biomass; an expansion of the biomass credit to cover additional
sources; and a 1.0 cent/kilowatt hour credit for cofiring coal and biomass in power plants.
The investment package contains nearly $1.4 billion in FY 2000 to research, develop, and
deploy clean energy technologies. This represents a 34% increase over the amount
appropriated in FY 1999. Highlights include: increased funding for the Partnership for a New
Generation of Vehicles, a government-industry effort to develop cars that get up to three
times the fuel efficiency of today's cars; the Partnership for Advancing Technology in
Housing, which aims to improve the energy efficiency of new homes by more than 50% and
to retrofit 15 million existing homes to make them 30% more energy efficient within a
decade; a stepped-up Bioenergy Initiative to develop advanced bioenergy technologies;
expanded research and development efforts in other key renewable energy technologies, such
as solar, wind, and geothermal energy; and a new research project; and, the Carbon Cycle
Initiative, to deepen our understanding of carbon "sinks," such as forests and farmlands.
Electricity restructuring. Another core element of the President's plan involves restructuring the
electricity industry by introducing competition that will save consumers millions on their energy
bills while reducing greenhouse gas emissions. The Administration's restructuring proposal
would provide a profit incentive for generators to produce more electricity with less fuel and to
improve energy efficiency. It also includes an aggressive renewable portfolio standard to
increase the use of electricity from renewable sources and a Public Benefits Fund to spur greater
investment in energy efficiency and renewables.
Industry Partnerships. The President's plan also involves building partnerships with industry to cut
emissions. The Industries of the Future program, for example, works cooperatively with the
nation's most energy-intensive industries -- such as aluminum, glass, chemicals, forest products,
mining, petroleum refining, and steel to develop technologies that increase energy and resource
efficiency. The Administration has also initiated high-level consultations with many of these same
industries focused on removing technical and regulatory barriers and fostering greater
development and diffusion of energy efficient technologies and practices.
Credit for Early Action. The Administration is committed to working with Congress and industry
on legislation to reward companies taking early, voluntary action to reduce their greenhouse gas
emissions or increase carbon sequestration.
Clean Air Partnership Fund. The President's FY 2000 budget proposes $200 million for the
creation of a new Clean Air Partnership Fund to support state and local projects to reduce both
greenhouse gas emissions and ground-level air pollutants.
Federal energy use and procurement. The President's plan seeks to substantially reduce the
Federal government's own greenhouse gas emissions by improving the energy efficiency of
Federal facilities and activities and reforming procurement practices. These actions are important
in their own right, since the Federal government is the nation's largest single energy user, but
they also set an important example for the private sector.
Domestic emissions trading. The President has proposed a domestic emissions trading system to
begin by 2008 so that we can achieve our emissions target at the lowest possible cost. The U.S.
has used emissions trading successfully to reduce the pollution that causes acid rain exceeding
environmental objectives at about 50% the expected cost.
Scientific research. The Administration is continuing its strong support for the U.S. Global Change
Research Program, with nearly $1.8 billion in funding requested for FY 2000. This program
provides a sound science foundation for policy decisions by furthering our understanding of
human- and naturally-induced changes in the Earth's environment and assessing the likely
consequences of global warming.
Diplomatic Agenda
Thanks largely to U.S. leadership, the international climate change agreement reached at Kyoto,
Japan in December 1997, combines strong environmental targets with elements of flexibility that will
allow nations to meet their targets in a cost-effective manner, including:
Flexible market mechanisms. The Protocol includes critically important market mechanisms that
can dramatically cut the cost of reducing emissions. Chief among these are international
emissions trading and the so-called Clean Development Mechanism (CDM), which will allow
U.S. companies to participate in joint clean energy ventures in the developing world and earn
credits from verified reductions in greenhouse gas emissions.
Emissions targets are to be reached over a five-year commitment period. The first commitment
period will be 2008-2012. Allowing emissions to averaged over a commitment period helps
smooth out short-term fluctuations due to economic performance or weather. Having a decade
before the start of the binding period will allow more time for companies to make the transition
to greater energy efficiency and/or lower carbon technologies.
Emissions targets include all six major greenhouse gases. This will provide both more
comprehensive environmental protection and additional flexibility to nations and companies.
Activities that absorb carbon, such as planting trees, can be used to offset emissions. Including
these so-called "carbon sinks" will encourage afforestation, reforestation, and better forestry and
agricultural conservation practices.
At the November 1998 UN climate change conference in Buenos Aires, the parties agreed on a two-
year timetable for filling in the key details of the Kyoto Protocol in areas such as emissions trading,
the CDM, compliance, and the scope and use of carbon sinks. Buenos Aires also saw progress on
the issue of developing country participation as Argentina and Kazakhstan announced their intention
to take on binding emissions targets for the 2008-2012 time period. The President has made clear
that he will not submit the Kyoto Protocol to the Senate until there is meaningful participation on the
part of key developing countries in addressing global warming.
Economic Cost of Kyoto
The Administration's economic analysis of the Kyoto Protocol concludes that, if we do it right, the
cost to the United States of meeting our Kyoto target should be modest. Even without counting the
impact of domestic policies or the environmental, health, and economic benefits of limiting climate
change, estimates derived from economic modeling suggest an emissions price in the range of $14 to
$23 per ton of greenhouse gases. In 2010, that would translate into an increase of $70 to $110 per
year for an average family's energy bill. This increase, however, would be substantially offset by the
decline in electricity prices resulting from increased competition in a restructured electricity industry,
as the Administration and others have proposed. In addition, noted economists have estimated the
ancillary benefits of reducing greenhouse gas emissions such as reduced air pollution -- could
produce savings equal to one quarter of the costs of meeting our Kyoto target.
Conclusion
For the past 25 years, efforts to protect the environment, whether by cleaning our air, our water, or
eliminating acid rain, have been repeatedly assailed as a threat to our economy. Yet today, we have
the cleanest environment in a generation and the strongest economy in a generation. President
Clinton's balanced approach to the challenge of climate change will allow us to continue to grow the
economy and protect the environment at the same time.
Meeting the Challenge of Global Climate Change
June 1998
Global climate change is one of our greatest environmental challenges. The world's leading
scientists tell us that this problem is real and that the threats it poses -- such as increasingly
frequent and severe storms and droughts, potential increases in asthma and infectious diseases and
rising sea levels -- are too serious to ignore.
The Clinton Administration is working hard at home and with our partners abroad to address
climate change. Domestically, we are working to implement the President's balanced, reasonable
plan for reducing greenhouse gas emissions. Internationally, we are seeking to build on the
agreement reached in Kyoto last December.
THE SCIENCE OF CLIMATE CHANGE
Scientists know that greenhouse gases in nature keep the Earth's temperature an estimated 60
degrees Fahrenheit warmer than it would be absent such gases, thus sustaining our existence on the
planet.
As a result of human activities, the concentration of carbon dioxide (the principal greenhouse gas)
has increased 30% since preindustrial times. If we continue on a business-as-usual trajectory,
concentrations could double current levels of carbon dioxide by 2100, producing the highest level of
CO2 in 50 million years. Climate models project an increase in global temperature of about 2-6.5° F
by 2100. By way of reference, a cooling in average temperatures of 9° F brought on the last ice age.
There is substantial evidence that global warming is well under way. Studies have shown that the
20th century has been the warmest century in 600 years, 1990s have been the warmest decade in that
period, and 1997 has been the single warmest year.
POTENTIAL IMPACTS OF CLIMATE CHANGE
The impacts could be serious as CO2 concentrations reach and exceed two times preindustrial levels:
Human health. Warmer temperatures are projected to increase fatalities from heat stress of
the kind that killed 400 in Chicago in 1995 and expand the geographic ranges for diseases
like malaria and dengue fever. The incidence of asthma and other respiratory illnesses,
particularly among children and the elderly, is expected to increase from the additional smog
caused by warmer temperatures.
Extreme weather. Warmer, wetter weather is projected to increase the frequency and
intensity of extreme events such as floods and drought. The 1993 Mississippi River flood
alone caused damages of $10-20 billion, while the Pacific Northwest floods in 1996-97, and
the 1997 Ohio River and Red River floods resulted in substantial costs to business and
homeowners.
1
Sea level rise. Scientists project that sea level will rise by an additional 6-38 inches by
2100. A 20-inch rise could inundate 7,000 square miles of the U.S. coastline, with Florida
and the Gulf Coast at greatest risk. Changes in rain and snowfall could affect water supplies
and water quality, posing threats to irrigation, fisheries, and drinking supplies.
Agricultural impacts. Changes in growing seasons, water availability, soil moisture and
precipitation could cause significant regional shifts in food productivity, with decreases in
food production in many of the world's poorest regions.
Degrading of natural ecosystems. During the next century, the geographical range of
forests is expected to move several hundred miles north exceeding the ability of many forests
to migrate. The northeast may lose its beech trees and sugar maples. Western conifer
forests will likely shrink.
PRESIDENT CLINTON'S PLAN
Domestic Program
In October 1997, President Clinton outlined an environmentally and economically sound plan for
reducing U.S. greenhouse gas emissions. This plan emphasizes win-win initiatives designed to cut
emissions by increasing energy efficiency; developing new, cleaner energy technologies; working
with industry and others to promote sensible solutions; and relying on market-based mechanisms to
ensure cost-effective reductions.
Tax incentives and R&D. The President's plan includes a vigorous program of tax cuts and
research and development aimed at improving energy efficiency and spurring the use of
renewable energy sources. The package amounts to $6.3 billion over 5 years -- $3.6 billion
in tax cuts and $2.7 billion in new investment.
The tax incentive package includes a tax credit of up to $4,000 for consumers who
purchase highly efficient vehicles; a tax credit of up to $2,000 for energy-efficient new
homes: a 15% tax credit (with a $2,000 limit) for rooftop solar equipment; a 20% tax credit
(subject to a cap) for energy-efficient building equipment for homes and offices; a 10% tax
credit for investment in combined heat and power systems; and an extension of a current tax
credit of 1.5 cents per kilowatt hour for the production of electricity from wind and biomass.
The investment package includes research and development spending in the major
carbon-emitting sectors of the economy -- buildings, transportation, and industry. Among
projects to be expanded is the Partnership for a New Generation of Vehicles, a government-
industry effort to develop highly-efficient cars, and the Partnership for Advancing
Technologies in Housing. Substantial funds will also be invested in research partnerships for
key renewable energy technologies.
Industry consultations. A second component of the President's plan involves building
partnerships with key energy-intensive industries to develop sector-by-sector initiatives to
cut emissions. These partnerships will identify opportunities for working together to
remove barriers to the development and widespread use of energy efficient technologies and
2
practices. As part of these consultations, the Administration will discuss ways to ensure
credit for that businesses that act early.
On May 4, President Clinton announced one important new partnership -- the
Partnership for Advancing Technology in Housing (PATH). This partnership with the
homebuilding sector is designed to build new homes that are 50% more energy efficient
within a decade and to retrofit at least 15 million existing homes within a decade to make
them 30% more energy efficient. Meeting PATH goals would save consumers $11 billion a
year in energy costs by 2010 and reduce annual carbon emissions in 2010 by nearly 24
million tons -- the amount produced by some 20 million cars.
In another recent government-industry development, the Environmental Protection
Agency and the Department of Energy extended their joint Energy Star program to
commercial buildings that achieve a 30% reduction in energy use. The Energy Star
program allows manufacturers of selected energy efficient products to promote their
products with an "Energy Star" label. Among the major buildings that have already signed
up for the Energy Star building program are the Empire State Building, World Trade
Center, and Chicago's Sears Tower.
Federal energy use and procurement. A third element of the President's plan is to
substantially reduce the Federal government's own greenhouse gas emissions by improving
the energy efficiency of Federal facilities and activities and by reforming procurement
practices. These actions would be important in their own right, since the Federal
government is the nation's largest single energy user, but they can also set an important
example for the private sector.
Electricity restructuring. Another core element of the President's plan involves
restructuring the electricity industry in such a way as to reduce greenhouse gas emissions
while saving consumers millions on their energy bills. The Administration's restructuring
proposal includes a renewable portfolio standard to increase the use of electricity from
renewable sources and a $6 billion/year Public Benefits Fund to spur greater investment in
energy efficiency and renewable resources.
Domestic emissions trading. The President has proposed a domestic emissions trading
system to begin by 2008. after a decade of experience in reducing emissions The goal of
such a regime is to ensure that further cuts are achieved as cost-effectively as possible. The
U.S. has used emissions trading successfully to reduce the pollution that causes acid rain --
exceeding environmental objectives at costs far lower than anticipated.
Scientific research. The Administration is continuing strong support for the U.S. Global
Change Research Program. This program is focused on increasing our knowledge of the
timing and regional patterns of the climate changes we expect, the combined effects of
natural variation and human actions, and the vulnerability of natural resources. A strong
foundation of peer-reviewed science results will support sound policy making and the
evaluation of actions taken to confront the challenge of climate change.
3
Diplomatic Agenda
U.S. leadership ensured that the international climate change agreement negotiated in Kyoto, Japan,
brought the power of the free market to bear in protecting the global environment. The protocol
includes strong, realistic emissions reduction targets and U.S. proposals for flexible, market-based
mechanisms to achieve them. The U.S. continues to work towards meaningful participation by
developing countries and to work towards establishing rules and guidelines for putting agreed market
mechanisms into practice.
Emissions targets. The flexibility the U.S. negotiated into the emissions targets include a
multi-year time frame (2008-2012), giving our economy and our technologies more time to
adapt: differentiated targets for developed countries; coverage of all six greenhouse gases
and of so-called "sinks" -- activities that absorb carbon dioxide.
Flexible market mechanisms. The Protocol includes key market mechanisms that will
provide companies with real flexibility in how they achieve emissions reductions --
international emissions trading and the Clean Development Mechanism (CDM).
International trading among countries that have taken on targets has the potential to cut the
cost of reducing emissions significantly. The CDM establishes the right for U.S. companies
to secure low-cost emissions credits by participating with developing countries in specific
projects to reduce their emissions.
Meaningful participation by developing countries. President Clinton has called for the
meaningful participation of key developing countries in reducing emissions and will not
submit the Kyoto Protocol to the Senate until such participation is achieved. The Kyoto
Protocol makes an important down payment (principally through the CDM), and the
Administration is actively engaged now in seeking greater participation from key developing
countries.
CONCLUSION
For the past 25 years, efforts to protect the environment. whether by cleaning our air and water,
eliminating acid rain or closing the ozone hole. have been repeatedly assailed as a threat to our
economy. Yet today we have the cleanest environment in a generation and the strongest economy
in a generation. President Clinton's balanced approach to the challenge of climate change will allow
us to grow the economy and protect the environment at the same time.
4
President Clinton's FY 2000
Climate Change Budget
The President's climate change package for FY 2000 totals over $4.1 billion -- an increase of
more than $1 billion (34 percent) from the amount enacted for FY 1999. It is comprised of a new
Clean Air Partnership Fund to boost state and local efforts to reduce both greenhouse gases and
ground-level air pollutants; the Climate Change Technology Initiative, which mixes tax incentives
and direct spending to spur the research, development, and deployment of energy efficient
technology and renewable energy; other climate-related investments, such as R&D of highly
efficient technologies for the combustion and use of coal and natural gas, weatherization, and
state energy grants; and the United States Global Change Research Program, to enhance our
understanding of the human and natural forces that influence the Earth's climate system.
Table 1. Climate-Change-Related Domestic Programs ($ in Millions)
FY 1999 FY 2000
Enacted
Request
Change
Clean Air Partnership Fund
0
200
+200
Climate Change Technology Initiative--tax incentives
--
383*
+383
Climate Change Technology Initiative--spending
1,021
1,368
+347
Other Climate-Related Investments (cleaner coal &
387
400
+13
natural gas; weatherization; state energy grants)
Global Change Research Program
1,681
1,786
+105
TOTAL
3,090
4.137
+1.048
*First year of a proposed five year, $3.6 billion package.
Clean Air Partnership Fund
To help protect public health and ease the threat of global warming, President Clinton is
proposing $200 million for the creation of a new Clean Air Partnership Fund. The Fund will
provide grants to states, localities, and tribes to support state, local, tribal, and private efforts that
achieve reductions in both greenhouse gas emissions and ground-level air pollutants. The Fund
will be administered by the Environmental Protection Agency (EPA) under existing authority.
Integrated Pollution Control. The Fund will stimulate integrated, cost-effective pollution
control strategies. It directs new resources to state, local, and tribal governments to
finance projects and programs that achieve accelerated reductions in both air pollutants,
such as soot, smog, and air toxics, and in greenhouse gases.
A Quicker Path to Cleaner Air. By providing new resources for projects that accelerate
pollution reductions, the Fund will enable communities to achieve multi-pollutant clean air
goals sooner and reduce greenhouse gas emissions at the same time.
Technological Innovation. The Fund will help spur both public and private sector
innovations in next-generation pollution control technology.
A Magnet for Local Investment & Innovation. The Fund will encourage public-private
partnerships to demonstrate ways to create a cleaner environment at the local level. The
Fund can be used to support local revolving funds, low-interest loan programs, matching
grants, and other mechanisms that will leverage the original Federal investment, greatly
increasing its impact.
"Win-Win" Clean Air Projects. The Fund will support a wide range of practical projects
that will mean cleaner air, reduced greenhouse gas emissions, and real savings for
taxpayers and consumers. These could include projects such as building combined heat
and power facilities that put waste heat to work, reducing emissions of both sulfur dioxide
and carbon dioxide; retrofitting municipal buildings to make them more energy efficient,
reducing pollution resulting from electricity generation; and upgrading municipal vehicle
fleets to make them more fuel efficient.
2
Climate Change Technology Initiative:
$3.6 Billion in Tax Incentives
The President is proposing a new $3.6 billion package in tax incentives over five years to
help reduce greenhouse gas emissions by spurring the purchase of energy efficient products and
the use of renewable energy (see Table 2).
Table 2. CCTI Tax Incentives ($ in Billions)
Revenue Effect
Total
FY 2000
FY00-04
Homes and Buildings
Provide tax credit for energy efficient building equipment
-0.2
-1.5
Provide tax credit for new energy efficient homes
-0.1
-0.4
Provide tax credit for rooftop solar systems
__*
-0.1
Vehicles
Extend tax credit for electric or fuel cell vehicles and provide
tax credits for highly fuel efficient hybrid vehicles
o
-0.9
Renewable Energy
Extend tax credit for electricity produced from wind and
biomass; expand eligible biomass sources; and include coal-
biomass cofiring
__*
-0.3
Industry
Provide tax credit for combined heat and power systems
-0.1
-0.3
TOTAL
-0.4
-3.6
*Less than $50 million.
**Total may not add due to rounding.
3
HOMES AND BUILDINGS
Tax credit to consumers who purchase new energy efficient homes. To encourage the
purchase of new energy efficient homes, consumers would receive a tax credit of $1,000
for homes purchased from 2000-2001 that are at least 30 percent more energy efficient
than the standard under the 1998 International Energy Conservation Code (IECC); a
credit of $1,500 for homes purchased from 2000-2002 that are at least 40 percent more
efficient than the IECC standard; and a credit of $2,000 for homes purchased from
2000-2004 that are at least 50 percent more efficient than the IECC standard.
Tax credit for energy efficient equipment in new and existing homes or buildings.
This credit will encourage the purchase of electric heat pump and natural gas water
heaters, electric and natural gas heat pumps, advanced central air conditioners, and fuel
cells. The credit would apply to both residential and commercial equipment. For electric
heat pump water heaters, natural gas heat pumps, and fuel cells, the credit would be 20
percent of the cost of the investment, subject to a cap, for equipment purchased from
2000-2003. For all other equipment, the credit would be 10 percent of the cost of the
investment, subject to a cap, at one level of efficiency (2000-2001) and 20 percent, subject
to a cap, at a higher level of efficiency (2000-2003).
Tax credit for rooftop solar systems. A 15 percent tax credit will encourage the purchase
by consumers and businesses of rooftop solar systems. The maximum credit would be
$2,000 for rooftop photovoltaic systems placed in service from 2000-2006 and $1,000 for
solar water heating systems placed in service from 2000-2004.
VEHICLES
Tax credits for highly efficient cars and light trucks. Cars and light trucks (including
minivans, sport utilities, and pickups) currently account for 20 percent of greenhouse gas
emissions. Tax credits for electric, fuel cell, and hybrid vehicles will help to move these
highly efficient technologies from the laboratory to the highway. These technologies can
significantly reduce emissions of carbon dioxide, the most prevalent greenhouse gas.
Extend the current tax credit for electric vehicles and fuel cell vehicles. Under
current law, a 10 percent credit, up to $4,000, is provided for the cost of qualified
electric vehicles and fuel cell vehicles. The credit begins to phase down in 2002
and phases out in 2005. The President's proposal would extend the tax credit at
its $4,000 maximum level through 2006.
4
Tax credits for hybrid vehicles. The credit -- available for all qualifying vehicles,
including cars, minivans, sport utility vehicles, and pickup trucks -- would be:
-- $1,000 for each vehicle that is one-third more fuel efficient than a
comparable vehicle in its class -- available from 2003-2004;
-- $2,000 for each vehicle that is two-thirds more fuel efficient than a
comparable vehicle in its class -- available from 2003-2006;
-- $3,000 for each vehicle that is twice as fuel efficient as a comparable
vehicle in its class -- available from 2004-2006; and,
-- $4,000 for each vehicle that is three times as fuel efficient as a
comparable vehicle in its class -- available from 2004-2006.
RENEWABLE ENERGY
Tax credit for electricity produced from wind. Current law encourages the production of
electricity from wind, which emits no greenhouse gases, through a tax credit of 1.5 cents
per kilowatt hour (adjusted for inflation after 1992). The current tax credit covers
facilities placed in service before July 1, 1999. The President proposes a 5-year extension
of this tax credit.
Tax credits for electricity produced from biomass. Biomass refers to trees, crops and
agricultural wastes used to produce power, fuels or chemicals. This package of credits
would:
-- Extend current biomass credit. This proposal extends for five years the
current 1.5 cent per kilowatt hour tax credit (adjusted for inflation after 1992),
which covers facilities placed in service before July 1, 1999.
-- Expand definition of eligible biomass. This proposal expands the definition of
biomass eligible for the 1.5 cent tax credit to include certain forest-related
resources and agricultural and other sources.
-- Include cofiring biomass and coal. This proposal adds a 1.0 cent per kilowatt
hour tax credit for electricity produced by cofiring biomass in coal plants.
INDUSTRY
Tax credit for combined heat and power (CHP) systems. CHP systems make effective
use of thermal energy that is otherwise wasted in producing electricity by more
conventional methods. To encourage and accelerate investment in CHP equipment, this
proposal provides an 8 percent tax credit for investments in large CHP systems that have a
total energy efficiency exceeding 70 percent and in smaller systems that have a total
energy efficiency exceeding 60 percent. The credit would apply to property placed in
service from 2000-2002.
5
Climate Change Technology Initiative:
$1.4 Billion for Energy Efficiency & Renewables
The President's FY 2000 budget proposes nearly $1.4 billion for the research, development, and
deployment of renewable energy technologies and energy efficient products that will help reduce
U.S. greenhouse gas emissions. This represents a $347 million increase (34 percent) over FY
1999 spending (see Table 3). The President's proposed investment package covers the four
major carbon-emitting sectors of the economy -- buildings, transportation, industry, and electricity
-- as well as carbon sequestration (see Table 4). The following sections highlight selected
programs in each of these areas of effort. The full agency programs extend well beyond what is
described here.
Table 3. CCTI Funding by Agency ($ in Millions)
FY 1998
FY 1999
FY 2000
Change
Enacted
Enacted
Request
from 1999
Energy
729
902
1,124
+222
EPA
90
109
216
+107
Housing & Urban Development
0
10
10
0
Agriculture
0
0
16
+16
Commerce
0
0
2
+2
TOTAL*
819
1.021
1.368
+347
*Totals may not add due to rounding
Table 4. CCTI Funding by Area of Activity ($ in Millions)
FY 1998
FY 1999
FY 2000
Change
Enacted
Enacted
Request
from 1999
Buildings
140
172
273
+101
Transportation
245
291
377
+86
Industry
157
188
239
+51
Electricity
239
310
379
+69
Carbon Sequestration
0
14
39
+25
Management, Planning & Analysis
37
46
60
+14
TOTAL*
819
1.021
1.368
+347
* Totals may not add due to rounding.
6
BUILDINGS
Partnership for Advancing Technology in Housing (PATH). PATH is a partnership
between the Federal government and building industry to develop and deploy housing
technologies to make new homes 50 percent more energy efficient and to make at least
15 million existing homes 30 percent more energy efficient within a decade.
Energy Efficient Appliances and Products. Various DOE and EPA programs aim to
promote the dissemination of energy efficient appliances and products:
-- DOE will accelerate its program to establish energy efficiency standards for
lighting and appliances.
-- EPA and DOE's Energy Star Products program saves consumers money and
reduces greenhouse gas emissions at the same time by promoting the use of
energy efficient products -- everything from computers to refrigerators to central
air-conditioning units. New funding will support the launch of new Energy Star
product lines.
Energy Efficient Commercial Buildings. DOE and EPA work in partnership with
industry to research, develop, and deploy new technologies and practices to improve the
energy performance of commercial buildings. Buildings in the top 25 percent in energy
efficiency qualify for EPA's "Energy Star Buildings" label. Participants include the
Empire State Building, the World Trade Center, and Chicago's Sears Tower.
Energy Smart Schools. Announced in October 1998, this initiative cuts across several
DOE programs and brings together public and private sector resources to cut schools'
energy bills so that the savings can be reinvested in students and their education.
TRANSPORTATION
Partnership for a New Generation of Vehicles (PNGV). PNGV is a government-
industry effort that aims to develop attractive, affordable cars that meet all applicable
safety and environmental standards and get up to three times the fuel efficiency of today's
cars. Since 1993, great strides have been made in producing lower-cost, light-weight
materials, inexpensive fuel cells, and advanced internal combustion engines for use in
hybrid vehicles. The program aims to produce a prototype mid-sized family car capable of
80 miles per gallon (mpg) with a two-thirds reduction in carbon emissions by 2004. The
FY 2000 budget includes $264 million for PNGV-related work, an increase of $24 million
over the amount appropriated for FY 1999.
7
Light and Heavy Trucks. Similar government-industry efforts are aimed at developing
cleaner, more efficient diesel engines for both light and heavy trucks.
-- By 2002, DOE aims to develop advanced diesel cycle engine technologies for
pickup trucks, vans, and sport utility vehicles which achieve at least a 35 percent
fuel efficiency improvement relative to current gasoline-fueled trucks while
meeting strict emission standards.
-- By 2004, DOE, in coordination with EPA and the Department of Defense, aims
to develop engine and vehicle technologies for heavy trucks that will increase
the fuel economy to 12 mpg from the current average of 5.3 mpg.
Biofuels. Working with the Department of Agriculture (USDA), DOE will continue its
work in the biochemistry of converting wood chips, grasses, agricultural wastes, and other
products into ethanol and other potentially useful fuels.
INDUSTRY
Industries of the Future. This DOE program works cooperatively with the nation's most
energy-intensive industries -- such as aluminum, glass, chemicals, forest products, mining,
petroleum refining, and steel -- on developing technologies that increase energy and
resource efficiency. Promising collaborative efforts include improvements in the process
of making steel, pulp and paper, and other energy-intensive products that could
dramatically increase efficiency, lower greenhouse gas emissions, and improve
competitiveness.
Industrial Combined Heat and Power (CHP) Systems. DOE is developing new
industrial CHP systems to capture thermal heat would otherwise be wasted. These
systems are expected to be 15 percent more energy efficient and 80 percent cleaner than
conventional power systems and cut electricity costs by 10 percent. In addition, EPA and
DOE are also working to eliminate barriers to the rapid dissemination of combined heat
and power technology.
Voluntary Industrial Partnerships. EPA will expand its industry partnership programs,
such as Climate Wise and the Voluntary Aluminum Industrial Partnership, to
encourage businesses to take advantage of cost-effective emissions reductions
opportunities -- including emissions of the most potent greenhouse gases, such as
methane, perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), and sulfur hexaflouride
(SF6).
8
Agriculture and Forestry. USDA will undertake R&D and support demonstration
projects aimed at both lowering greenhouse gas emissions from agriculture and forestry
and reducing their vulnerability to climate change.
--The Natural Resources Conservation Service will invest $3 million in projects
to demonstrate and test various means of reducing greenhouse gas emissions in
agriculture, such as compost-based waste-handling facilities, rotational grazing
systems, and improved feed and forage systems.
--The Agricultural Research Service will devote $7 million towards climate
change related activities, including the development of new technology and
expertise for reducing agriculture's vulnerability to a changing climate. Field
experiments will seek to measure various potential effects of climate change, such
as varying amounts and patterns of rainfall on forage production.
The FY 2000 budget also includes important USDA funding for developing advanced
biomass energy technologies; R&D and demonstration projects for carbon sequestration;
research to study the role of farms, forests, and other natural or managed lands in
capturing and storing carbon; and a comprehensive U.S. soil carbon inventory (see pp. 10-
12 below).
ELECTRICITY
Photovoltaic Energy Systems. Over the past 20 years, Federal R&D has resulted in a 90
percent cost reduction in solar photovoltaics. DOE will accelerate R&D of the next
generation photovoltaic cells; increase manufacturing R&D; increase research in
buildings-integrated applications; and fund efforts to develop new, unconventional
technologies.
-- Million Solar Roofs. In June, 1997, the President announced an initiative to
encourage the installation of one million solar systems by 2010, which would
reduce carbon emissions equivalent to the annual emissions from 850,000 cars.
DOE has received commitments for over half a million solar rooftop installations.
Biomass. Biomass represents a tremendous renewable resource whose use can help
strengthen our energy security, protect the environment, and enhance our rural economy.
-- Biomass Power. DOE is testing and demonstrating biomass co-firing with coal;
developing advanced technologies for biomass gasification using paper industry
by-products; and developing and testing high-yield, low-cost biomass feedstocks.
9
-- Advanced Biomass Technologies. This year DOE, USDA, and other Federal
agencies and private partners will launch a national partnership to develop
advanced integrated biomass technologies. These technologies will enable the
production of power, transport fuels, and high-value chemicals from biomass
feedstocks.
Wind Power. DOE will continue developing a next-generation wind turbine able to
produce power at 2.5 cents per kilowatt-hour in good wind regions, accelerate R&D on
critical components, and accelerate testing and field validation.
Hydrogen. DOE will accelerate research on low-cost hydrogen production and storage,
prerequisites to the widespread use of hydrogen as a fuel.
High Temperature Superconductivity. DOE supports industry-led projects to capitalize
on recent breakthroughs in superconducting wire technology, aimed at developing devices
such as advanced motors, power cables, and transformers. These technologies would
allow more electricity to reach the consumer without an increase in fossil fuel input.
CARBON SEQUESTRATION
R&D for Sequestration. Research initiatives are being funded to find ways to sequester
(store) carbon. Examples include:
-- Enhancing Forest and Farmland Sinks. The Forest Service, in conjunction
with other USDA agencies, will spend $6 million for R&D and demonstration
projects for optimizing forest, farmland, and rangeland carbon sinks. The focus of
such projects will include storage of carbon in forest soils and increased durability
and use of wood products to sequester carbon.
-- Enhancing natural geological and oceanic processes. DOE will support
research into the feasibility of capturing and storing carbon dioxide in underground
geological structures and in the deep ocean.
10
Other Climate-Related Investments
There are a number of additional programs for which funding is proposed in the FY 2000 budget
that -- while not part of the Climate Change Technology Initiative per se -- contribute to
improving energy efficiency and reducing greenhouse gas emissions. These programs include:
Cleaner Coal and Natural Gas. The FY 2000 budget includes $209 million to support
the Department of Energy's (DOE) aggressive R&D effort to develop next-generation
technologies for the combustion and use of coal and natural gas. For example, research
and development of two new coal combustion technologies -- integrated gasification
combined cycle and pressurized fluidized bed combustion -- could lead to ultra-high
efficiency coal plants with dramatically lower greenhouse gas emissions.
Low Income Weatherization and State Energy Grants. These DOE programs facilitate
energy efficiency investments at the State and local level. The Weatherization
Assistance Program, for example, delivers energy conservation services, such as
insulation, to low-income Americans, reducing energy costs for consumers, improving
health and safety, and reducing carbon emissions. The total FY 2000 budget request for
these two programs is $191 million -- a $25 million increase over FY 1999 appropriations.
Agricultural & Forestry Conservation Programs. Many Department of Agriculture
conservation programs have the co-benefit of reducing carbon emissions resulting from
agriculture and forestry and enhancing the ability of "sinks," such as forests and
farmlands, to sequester or store carbon. This includes programs such as the Conservation
Reserve Program, the Environmental Quality Incentives Program, and the Farmland
Protection Program. In general, these programs assist farmers, ranchers, and other
landowners in conserving and improving soil, water, and other natural resources
associated with rural land.
11
U.S. Global Change Research Program
The United States Global Change Research Program (USGCRP) seeks to provide a sound
scientific understanding of both the human and natural forces that influence the Earth's climate
system. The information produced by USGCRP's scientists is used by national and international
policy makers to make informed decisions on global change issues. This multi-agency scientific
research program coordinated through the National Science and Technology Council.
For FY 2000, the President is requesting nearly $1.8 billion for the USGCRP, an increase of $105
million, or 6 percent, above the amount enacted for FY 1999. Of the FY 2000 budget request,
$828 million is for scientific research (up $84 million) and $958 million is for NASA's
development of climate monitoring satellites and ground based observation systems. Other
important USGCRP budget highlights include:
Carbon Cycle Initiative. The FY 2000 budget request establishes a new multi-agency
initiative to improve our understanding of how carbon cycles between the atmosphere, the
oceans, and land. Included in this request are funds to study the role of farms, forests, and
other natural or managed lands in capturing carbon. Such carbon "sinks" may provide the
U.S. and other nations with new tools for offsetting greenhouse gas emissions. The
initiative includes $10 million in new funding for the Department of Agriculture (USDA)
and $5 million for the Department of Energy.
Soil Carbon Inventory. The FY 2000 budget request includes $14 million (an increase of
$12 million from FY 1999 appropriations) to significantly expand efforts to conduct a
comprehensive scientific inventory of carbon stored in U.S. soils and to develop methods
to predict how soil carbon levels would be affected by different practices and policies.
The inventory will be conducted by USDA's Natural Resources Conservation Service.
3-Dimensional Mapping of Forests. The FY 2000 budget provides funding to launch
NASA's Vegetation Canopy Lidar, which, for the first time, will give scientists a three
dimensional view of the Earth's forests to help determine the contribution of forests in
sequestering atmospheric carbon.
Consequences of Climate Change. The FY 2000 budget provides funding to complete a
report on the first national assessment of the potential consequences of climate change on
the United States. The report will identify potential impacts on key economic sectors and
geographic regions, mitigation and adaptation strategies, and provide technical
information for policy makers.
Regional Variability. The FY 2000 budget request includes funding to help scientists
examine climate change and variability on a regional scale. Supported in part by the
Administration's new Information Technology Initiative, the funding will help improve
U.S. computer capabilities to run the complex models required to understand the effects of
climate change and variability at the regional level.
12
Agriculture and The President's FY 2000
Climate Change Budget
Farmland, rangeland, and forests can play a critical role in meeting the challenge of global
warming through carbon sequestration and renewable bioenergy. In his FY 2000 budget, the
President is proposing $251 million in funding for sequestration and bioenergy research,
development, and deployment. This includes $105 million for the Department of Agriculture
(USDA). a $50 million increase over the amount appropriated for FY 1999, and $146 million for
the Department of Energy (DOE), a $59 million increase over FY 1999 appropriated funds.
Highlights include:
SEQUESTRATION
Carbon sequestration refers to the storage of carbon from the atmosphere by soils, trees, crops,
and other plants.
Demonstration Projects and New R&D. The Forest Service, the Agriculture Research
Service and the Natural Resources Conservation Service will launch new R&D and
demonstration projects to optimize farmland, rangeland, and forest carbon sinks.
Carbon Cycle Initiative. The FY 2000 budget request establishes a new multi-agency
initiative to improve our understanding of how carbon cycles between the atmosphere. the
oceans, and land. Included in this request are funds to study the role of farms, forests, and
other natural or managed lands in capturing carbon. Such carbon "sinks" may provide the
U.S. and other nations with new tools for offsetting greenhouse gas emissions. The
initiative includes $10 million in new funding for USDA and $5 million for DOE.
Soil Carbon Inventory. The FY 2000 budget request includes $14 million to significantly
expand efforts to conduct a comprehensive scientific inventory of carbon stored in U.S.
soils and to develop methods to predict how soil carbon levels would be affected by
different practices and policies.
BIOENERGY
Biomass refers to trees, crops and agricultural wastes used to produce power, fuels or chemicals.
It represents a tremendous renewable resource whose use can help strengthen our energy security,
protect the environment, and enhance our rural economy.
Biomass Power and Fuels. DOE and USDA will continue developing, testing, and
demonstrating high-yield, low-cost biomass feedstocks; testing and demonstrating biomass
cofiring with coal; and seeking to produce alternative fuels, such as ethanol, from biomass.
Advanced Biomass Technologies. This year, DOE, USDA and other Federal agencies
and private partners will launch a national partnership to develop advanced integrated
biomass technologies.
Biomass Tax Credit. The President's tax package proposes to extend for 5 years the
current 1.5 cent per kilowatt hour tax credit for electricity produced from biomass. The
proposal also expands the types of biomass eligible for the credit to include certain forest-
related, agricultural and other resources. Finally, the package includes a 1.0 cent per
kilowatt hour tax credit for electricity produced by cofiring biomass in coal plants.
Elliot J. Diringer
03/17/99 05:22:39 PM
Record Type:
Record
To:
Todd Stern/WHO/EOP@EOP, Martha L. Wofford/WHCCTF/EOP@EOP, John D.
Gibson/WHCCTF/EOP@EOP
cc:
Subject: Q&A - PLS REVIEW
Q. You talk frequently about the threat of climate change, but you haven't sent the Kyoto
Protocol to the Senate for ratification, and the Administration is doing little or nothing to
reduce greenhouse gas emissions. In fact, energy use and greenhouse emissions continue to
rise. If the threat is so real, why aren't you doing more to address it? Could it be that the
economic costs of dealing with it would be as dire as some predict?
A. The challenge of global warming is real, and we are pursuing an aggressive, common-sense
strategy to meet it. The Kyoto Protocol sets strong, realistic targets for reducing greenhouse gas
emissions. And, thanks to U.S. leadership, it includes market-based tools like emissions trading
that will allow us to achieve those targets at the least possible cost. The Protocol is a work in
progress and, as I've said before, we will not submit it to the Senate until there is meaningful
participation by key developing countries. We made significant progress at the negotiations last
year in Buenos Aires, where Argentina and Kazakstan committed to take on emissions targets.
Building on that progress is very much a part of our diplomatic agenda.
INVEST.
1
At the same time, we are working hard to reduce emissions here in the United States. This year's
budget includes a record $1 billion for research investments in clean, efficient energy
technology. For next year, I am proposing another significant increase in our R&D budget, plus
tax incentives for the purchase of energy-efficient homes, cars, and appliances. I also am
proposing a new Clean Air Partnership Fund to help finance state, local, and private efforts that
both reduce greenhouse gas emissions and improve air quality.
Just as important is the growing recognition within the private sector that this challenge is real,
and that we can meet it in ways that create new economic opportunities. A growing number of
leading corporations are voluntarily pledging to significantly reduce their emissions. We are
working closely with people in industry and in Congress to encourage these efforts through
legislation that rewards early, voluntary reductions in greenhouse emissions.
As for cost, many of the studies our there greatly exaggerate the cost by using worst-case
scenarios instead of modeling the policies we're actually pursuing. Our economic analysis shows
that meeting the Kyoto target will likely cost the average family less than $100 a year in higher
energy bills -- and that would be substantially offset by savings from the kind of electricity
restructuring we are proposing. On balance, I think that's a very modest premium for insurance
against some rather catastrophic consequences.
Republican Budget
Fails to Extend Solvency of Social Security and Medicare
and Dramatically Cuts Key Priorities
March 18, 1999
Building on the success of six years of fiscal discipline and the virtuous economic cycle it created, President
Clinton has proposed a budget that includes a more than $3.4 trillion debt reduction lock-box that extends the
solvency of Social Security until 2055 and extends Medicare's solvency for more than a decade. It invests in
education and a cleaner environment, and provides a pro-savings tax cut to help American families build wealth
through new Universal Savings Accounts (USAs). The Republicans have responded by proposing a budget
that:
Fails to extend the solvency of Medicare and Social Security.
Forces dramatic cuts in key priorities -- more than 10% in 2000 and more than 20% in 2004.
Chooses instead a large tax cut targeted away from the middle class.
Fails to Extend Medicare Solvency
A year ago, in a radio address response [February 7. 1998], Chairman Domenici said, "I believe that we should
save Medicare first." In the Senate Budget Committee. he said, "for every dollar you divert to some other
program you are hastening the day when Medicare falls into bankruptcy. [Committee on Budget Mark-up, March 18,
1998] President Clinton's plan allocates 15 percent of the surplus over 15 years (or $686 billion) to Medicare,
and extends its solvency by more than a decade. Congressional Democrats share the President's determination
to allocate 15 percent of the surplus for Medicare. However, the Republican budget:
Does not extend Medicare solvency by one day.
Does not set aside even one penny of the surplus to strengthen Medicare.
Fails to Extend Social Security Solvency
The Republican budget would do nothing to extend the solvency of Social Security. President Clinton's
plan, according to the Social Security's independent actuary, extends the solvency of Social Security until
2055. Even if the Republican budget carries out any debt reduction, it does not apply the benefits of this
debt reduction to Social Security. The solvency of Social Security is not extended by one day. At the same
time, the Republicans are placing top priority on a tax cut that explodes in cost right when the baby boom
approaches retirement.
The Republican lock-box's debt mechanism would "preclude the United States from meetings its future
obligations to repaying maturing debt and to honor payments -- including benefit payments -- and could
also run the risk of worsening a future economic downturn." [letter from Secretary Rubin to Senator Daschle, March
17, 1999].
Forces Dramatic Cuts in Key Priorities: More than 10% in 2000 and roughly 25% in 2004
The Republican budget dramatically cuts the funds available for key domestic priority programs that have in the
past received bipartisan support. The severity of these required cuts demonstrates that the Republican budget is
unrealistic and unworkable. After factoring in Republican commitments made in their budget -- on tax cuts,
defense, education, NIH -- remaining programs would be slashed more than 10 percent in 2000 and more
than 20 percent in 2004. If cut across-the-board, the Republican budget could mean that in 2000 alone:
Up to 100,000 children would lose access to Head Start.
About 2,700 FBI agents would be cut.
The Congressional Budget:
Sacrificing Our Environment and Public Health
President Clinton is proposing " record $33.9 billion in FY 2000 to protect our environment and public
health, including major new initiatives to preserve America's lands legacy, combat air pollution and
global warming, and help build livable communities for the 21st century.
The Congressional budget not only fails to fund these environmental priorities, but imposes drastic
cuts that would stop toxic waste cleanups, shut down national parks, cripple water quality programs,
and heighten the risk of deadly wildfires.
The Congressional budget slashes funding for priority domestic programs 12 percent in FY 2000 and 28
percent in 2004. Across-the-board cuts would have these devastating impacts on public health and the
environment:
Stopping 135 Toxic Waste Cleanups - The Congressional budget would cut Superfund by a total
of $1.5 billion over the next five years. needlessly jeopardizing public health by preventing as
many as 135 priority cleanups nationwide -- 92 percent of the federally led cleanups planned.
Shutting Down National Parks - Cuts to the National Park Service would reduce services and
hours of operation at 378 parks and other facilities serving almost 300 million visitors a year. In
FY 2004, $575 million in cuts would shut down many smaller parks and backcountry areas in
larger parks, and jeopardize visitor safety by blocking vital maintenance and repairs.
Squandering Our Lands Legacy - By failing to fund the President's Lands Legacy initiative, the
Congressional budget would block federal efforts to preserve natural treasures, and deny states and
communities $588 million to protect farmland, coastland, urban parks and other green spaces.
Slashing Water and Public Health Protections - By FY 2004, cuts to the Environmental
Protection Agency would eliminate funding for the Clean Water Action Plan, which helps
communities clean up the 40 percent of surveyed waters still too polluted for fishing or swimming;
and let polluters off the hook by crippling EPA's ability to enforce public health protections.
Gambling with Global Warming - Cuts to the Department of Energy and EPA would gut efforts
toward cleaner, more efficient energy for homes, transportation, and industry; and keep the
Partnership for a New Generation of Vehicles from meeting its goal of new cars three times more
fuel-efficient than today's models by 2004.
Crippling Wildlife Protections - Cuts to the Fish and Wildlife Service, National Oceanic and
Atmospheric Administration. and Army Corps of Engineers would hamper salmon restoration in
the Pacific Northwest, shut down wildlife refuges, and halt efforts to restore endangered species.
Raising the Risk of Deadly Wildfires - FY 2000 cuts to the Forest Service and Bureau of Land
Management would close some lands to the public and reduce firefighting capabilities. A total of
$700 million in FY 2004 cuts for these two agencies would cripple firefighting capabilities,
jeopardizing lives and property throughout the West.
President Clinton's FY 2000
Climate Change Budget
The President's climate change package for FY 2000 totals over $4.1 billion -- an increase of
more than $1 billion (34 percent) from the amount enacted for FY 1999. It is comprised of a new
Clean Air Partnership Fund to boost state and local efforts to reduce both greenhouse gases and
ground-level air pollutants; the Climate Change Technology Initiative, which mixes tax incentives
and direct spending to spur the research, development, and deployment of energy efficient
technology and renewable energy; other climate-related investments, such as R&D of highly
efficient technologies for the combustion and use of coal and natural gas, weatherization, and
state energy grants; and the United States Global Change Research Program, to enhance our
understanding of the human and natural forces that influence the Earth's climate system.
Table 1. Climate-Change-Related Domestic Programs ($ in Millions)
FY 1999 FY 2000
Enacted
Request
Change
Clean Air Partnership Fund
0
200
+200
Climate Change Technology Initiative--tax incentives
:
383*
+383
Climate Change Technology Initiative--spending
1,021
1,368
+347
Other Climate-Related Investments (cleaner coal &
387
400
+13
natural gas; weatherization; state energy grants)
Global Change Research Program
1,681
1,786
+105
TOTAL
3,090
4.137
+1.048
*First year of a proposed five year, $3.6 billion package.
President Clinton's FY 2000 Climate Change Budget
"Our most fateful new challenge is the threat of global warming. Tonight I propose a new clean air fund to help
communities reduce greenhouse and other pollution, and tax incentives and investments to spur clean energy
technology."
President Bill Clinton, State of the Union address, January 19, 1999
Meeting the challenge of global warming. In his FY 2000 budget, the President is proposing a 34 percent
increase for R&D in energy efficient technology and renewable energy; a new Clean Air Partnership Fund
to boost state and local efforts to reduce greenhouse gases and air pollution; a five-year package of tax
incentives to spur clean energy technologies; substantial new funding to focus on the ways farms and forests
can reduce and offset greenhouse gas emissions; and $1.8 billion for global change research -- a total
package for FY 2000 of over $4 billion.
Clean Air Partnership Fund. The President proposes $200 million for a new fund to provide grants to
state and local governments for projects that reduce both greenhouse gases and pollutants like soot, smog,
and air toxics.
Climate Change Technology Initiative (CCTI). The CCTI is a package of targeted tax incentives and
investments aimed at increasing energy efficiency and spurring the broader use of renewable energy. The
package will save consumers money and reduce greenhouse gas emissions at the same time. FY 1999
appropriations represented a 25 percent increase over the prior year. The President's new budget proposes a
still more accelerated effort.
$3.6 billion in tax incentives over five years. The proposed package contains $3.6 billion over
five years in tax cuts ($383 million for FY 2000) for consumers who purchase energy efficient
products and for producers of energy from renewable sources. Highlights include:
Tax credits for energy efficient homes. Consumers can receive a $1000-2000 credit toward
the purchase of a new energy efficient home; a 10-20 percent tax credit for the purchase of
selected energy efficient products for their homes and buildings; and a $1000-2000 credit for
installing a rooftop solar system.
Tax credits for fuel-efficient cars. The package includes tax credits ranging from
$1000-4000 for the purchase of a qualifying electric, fuel cell or hybrid vehicle.
Tax credits for renewable energy. The package extends the 1.5 cent per kilowatt hour tax
credit for the production of electricity from wind and biomass; expands the biomass credit to
cover additional sources of biomass; and adds a 1.0 cent per kilowatt hour tax credit for
cofiring coal and biomass in power plants.
$1.4 billion for Energy Efficiency & Renewables. The proposed package contains nearly $1.4
billion in FY 2000 to research, develop, and deploy clean technologies for the four major
carbon-emitting sectors of the economy -- buildings, transportation, industry, and electricity --
a 34 percent increase over the amount appropriated in FY 1999. Highlights include:
Partnership for a New Generation of Vehicles PNGV is a government-industry effort to
develop comfortable, affordable cars that meet all applicable safety and environmental
standards and get up to three times the fuel efficiency of today's cars. The combined
proposal for PNGV in the FY 2000 budget is $264 million, an increase from the $240
million appropriated in FY 1999.
Partnership for Advancing Technology in Housing. PATH is a government-industry
partnership to improve the energy efficiency of new homes by more than 50 percent and to
retrofit 15 million existing homes to make them 30 percent more energy efficient within a
decade. The FY 2000 budget request for building efficiency efforts, such as PATH, Energy
Star, and Building America, totals $273 million, a 59 percent increase over FY 1999
appropriations.
Renewable energy. The President proposes $399 million for the Department of Energy's
(DOE) solar and renewable energy programs, a 19 percent increase over the amount
appropriated in FY 1999. The package includes expanded efforts in key renewable
technologies, such as wind, bioenergy, photovoltaics, and geothermal energy.
Forests and Farms. The FY 2000 proposal includes $105 million for the Department of Agriculture's
(USDA) climate change budget, an increase of $50 million over the amount appropriated in FY 1999 and
$40 million over the Administration's FY 1999 request. The new proposal includes funding for a new,
multi-agency Carbon Cycle Initiative to better understand how carbon is absorbed by agricultural soils and
forests; a soil carbon inventory; pilot projects to demonstrate how improved farming practices can help
store carbon; and programs to reduce emissions through means such as the conversion of waste to energy.
In addition, DOE, in conjunction with USDA, will expand efforts aimed at broadening the use of biomass to
produce power, fuels, and chemicals.
Cleaner Coal. The budget request contains $122 million for R&D to develop next-generation technologies
for coal combustion with much higher energy efficiency and lower greenhouse gas emissions.
Weatherization & State Energy Grants. The budget request includes $191 million -- a $25 million
increase over FY 1999 appropriations -- to deliver energy conservation services to low-income Americans
and to assist state energy offices in addressing their energy priorities.
U.S. Global Change Research Program. The FY 2000 request includes $1.8 billion for scientific research
to improve our understanding of human and natural forces that influence the Earth's climate system and to
assess the likely consequences of global warming.
2
Clean Air Partnership Fund
To help protect public health and ease the threat of global warming, President Clinton is
proposing $200 million for the creation of a new Clean Air Partnership Fund. The Fund will
provide grants to states, localities, and tribes to support state, local, tribal, and private efforts that
achieve reductions in both greenhouse gas emissions and ground-level air pollutants. The Fund
will be administered by the Environmental Protection Agency (EPA) under existing authority.
Integrated Pollution Control. The Fund will stimulate integrated, cost-effective pollution
control strategies. It directs new resources to state, local, and tribal governments to
finance projects and programs that achieve accelerated reductions in both air pollutants,
such as soot, smog, and air toxics, and in greenhouse gases.
A Quicker Path to Cleaner Air. By providing new resources for projects that accelerate
pollution reductions, the Fund will enable communities to achieve multi-pollutant clean air
goals sooner and reduce greenhouse gas emissions at the same time.
Technological Innovation. The Fund will help spur both public and private sector
innovations in next-generation pollution control technology.
A Magnet for Local Investment & Innovation. The Fund will encourage public-private
partnerships to demonstrate ways to create a cleaner environment at the local level. The
Fund can be used to support local revolving funds, low-interest loan programs, matching
grants, and other mechanisms that will leverage the original Federal investment, greatly
increasing its impact.
"Win-Win" Clean Air Projects. The Fund will support a wide range of practical projects
that will mean cleaner air, reduced greenhouse gas emissions, and real savings for
taxpayers and consumers. These could include projects such as building combined heat
and power facilities that put waste heat to work, reducing emissions of both sulfur dioxide
and carbon dioxide; retrofitting municipal buildings to make them more energy efficient,
reducing pollution resulting from electricity generation; and upgrading municipal vehicle
fleets to make them more fuel efficient.
2
Climate Change Technology Initiative:
$3.6 Billion in Tax Incentives
The President is proposing a new $3.6 billion package in tax incentives over five years to
help reduce greenhouse gas emissions by spurring the purchase of energy efficient products and
the use of renewable energy (see Table 2).
Table 2. CCTI Tax Incentives ($ in Billions)
Revenue Effect
Total
FY 2000
FY00-04
Homes and Buildings
Provide tax credit for energy efficient building equipment
-0.2
-1.5
Provide tax credit for new energy efficient homes
-0.1
-0.4
Provide tax credit for rooftop solar systems
__*
-0.1
Vehicles
Extend tax credit for electric or fuel cell vehicles and provide
tax credits for highly fuel efficient hybrid vehicles
0
-0.9
Renewable Energy
Extend tax credit for electricity produced from wind and
biomass; expand eligible biomass sources; and include coal-
biomass cofiring
__*
-0.3
Industry
Provide tax credit for combined heat and power systems
-0.1
-0.3
TOTAL*
-0.4
-3.6
*Less than $50 million.
**Total may not add due to rounding.
3
HOMES AND BUILDINGS
Tax credit to consumers who purchase new energy efficient homes. To encourage the
purchase of new energy efficient homes, consumers would receive a tax credit of $1,000
for homes purchased from 2000-2001 that are at least 30 percent more energy efficient
than the standard under the 1998 International Energy Conservation Code (IECC); a
credit of $1,500 for homes purchased from 2000-2002 that are at least 40 percent more
efficient than the IECC standard; and a credit of $2,000 for homes purchased from
2000-2004 that are at least 50 percent more efficient than the IECC standard.
Tax credit for energy efficient equipment in new and existing homes or buildings.
This credit will encourage the purchase of electric heat pump and natural gas water
heaters, electric and natural gas heat pumps, advanced central air conditioners, and fuel
cells. The credit would apply to both residential and commercial equipment. For electric
heat pump water heaters, natural gas heat pumps, and fuel cells, the credit would be 20
percent of the cost of the investment, subject to a cap, for equipment purchased from
2000-2003. For all other equipment, the credit would be 10 percent of the cost of the
investment, subject to a cap, at one level of efficiency (2000-2001) and 20 percent, subject
to a cap, at a higher level of efficiency (2000-2003).
Tax credit for rooftop solar systems. A 15 percent tax credit will encourage the purchase
by consumers and businesses of rooftop solar systems. The maximum credit would be
$2,000 for rooftop photovoltaic systems placed in service from 2000-2006 and $1,000 for
solar water heating systems placed in service from 2000-2004.
VEHICLES
Tax credits for highly efficient cars and light trucks. Cars and light trucks (including
minivans, sport utilities, and pickups) currently account for 20 percent of greenhouse gas
emissions. Tax credits for electric, fuel cell, and hybrid vehicles will help to move these
highly efficient technologies from the laboratory to the highway. These technologies can
significantly reduce emissions of carbon dioxide, the most prevalent greenhouse gas.
Extend the current tax credit for electric vehicles and fuel cell vehicles. Under
current law, a 10 percent credit, up to $4,000, is provided for the cost of qualified
electric vehicles and fuel cell vehicles. The credit begins to phase down in 2002
and phases out in 2005. The President's proposal would extend the tax credit at
its $4,000 maximum level through 2006.
4
Tax credits for hybrid vehicles. The credit -- available for all qualifying vehicles,
including cars, minivans, sport utility vehicles, and pickup trucks -- would be:
-- $1,000 for each vehicle that is one-third more fuel efficient than a
comparable vehicle in its class -- available from 2003-2004;
-- $2,000 for each vehicle that is two-thirds more fuel efficient than a
comparable vehicle in its class -- available from 2003-2006;
-- $3,000 for each vehicle that is twice as fuel efficient as a comparable
vehicle in its class -- available from 2004-2006; and,
-- $4,000 for each vehicle that is three times as fuel efficient as a
comparable vehicle in its class -- available from 2004-2006.
RENEWABLE ENERGY
Tax credit for electricity produced from wind. Current law encourages the production of
electricity from wind, which emits no greenhouse gases, through a tax credit of 1.5 cents
per kilowatt hour (adjusted for inflation after 1992). The current tax credit covers
facilities placed in service before July 1, 1999. The President proposes a 5-year extension
of this tax credit.
Tax credits for electricity produced from biomass. Biomass refers to trees, crops and
agricultural wastes used to produce power, fuels or chemicals. This package of credits
would:
-- Extend current biomass credit. This proposal extends for five years the
current 1.5 cent per kilowatt hour tax credit (adjusted for inflation after 1992),
which covers facilities placed in service before July 1, 1999.
-- Expand definition of eligible biomass. This proposal expands the definition of
biomass eligible for the 1.5 cent tax credit to include certain forest-related
resources and agricultural and other sources.
-- Include cofiring biomass and coal. This proposal adds a 1.0 cent per kilowatt
hour tax credit for electricity produced by cofiring biomass in coal plants.
INDUSTRY
Tax credit for combined heat and power (CHP) systems. CHP systems make effective
use of thermal energy that is otherwise wasted in producing electricity by more
conventional methods. To encourage and accelerate investment in CHP equipment, this
proposal provides an 8 percent tax credit for investments in large CHP systems that have a
total energy efficiency exceeding 70 percent and in smaller systems that have a total
energy efficiency exceeding 60 percent. The credit would apply to property placed in
service from 2000-2002.
5
Climate Change Technology Initiative:
$1.4 Billion for Energy Efficiency & Renewables
The President's FY 2000 budget proposes nearly $1.4 billion for the research, development, and
deployment of renewable energy technologies and energy efficient products that will help reduce
U.S. greenhouse gas emissions. This represents a $347 million increase (34 percent) over FY
1999 spending (see Table 3). The President's proposed investment package covers the four
major carbon-emitting sectors of the economy -- buildings, transportation, industry, and electricity
-- as well as carbon sequestration (see Table 4). The following sections highlight selected
programs in each of these areas of effort. The full agency programs extend well beyond what is
described here.
Table 3. CCTI Funding by Agency ($ in Millions)
FY 1998
FY 1999
FY 2000
Change
Enacted
Enacted
Request
from 1999
Energy
729
902
1,124
+222
EPA
90
109
216
+107
Housing & Urban Development
0
10
10
0
Agriculture
0
0
16
+16
Commerce
0
0
2
+2
TOTAL*
819
1.021
1.368
+347
*Totals may not add due to rounding
Table 4. CCTI Funding by Area of Activity ($ in Millions)
FY 1998
FY 1999
FY 2000
Change
Enacted
Enacted
Request
from 1999
Buildings
140
172
273
+101
Transportation
245
291
377
+86
Industry
157
188
239
+51
Electricity
239
310
379
+69
Carbon Sequestration
0
14
39
+25
Management, Planning & Analysis
37
46
60
+14
TOTAL*
819
1.021
1.368
+347
* Totals may not add due to rounding.
6
BUILDINGS
Partnership for Advancing Technology in Housing (PATH). PATH is a partnership
between the Federal government and building industry to develop and deploy housing
technologies to make new homes 50 percent more energy efficient and to make at least
15 million existing homes 30 percent more energy efficient within a decade.
Energy Efficient Appliances and Products. Various DOE and EPA programs aim to
promote the dissemination of energy efficient appliances and products:
-- DOE will accelerate its program to establish energy efficiency standards for
lighting and appliances.
-- EPA and DOE's Energy Star Products program saves consumers money and
reduces greenhouse gas emissions at the same time by promoting the use of
energy efficient products -- everything from computers to refrigerators to central
air-conditioning units. New funding will support the launch of new Energy Star
product lines.
Energy Efficient Commercial Buildings. DOE and EPA work in partnership with
industry to research, develop, and deploy new technologies and practices to improve the
energy performance of commercial buildings. Buildings in the top 25 percent in energy
efficiency qualify for EPA's "Energy Star Buildings" label. Participants include the
Empire State Building, the World Trade Center, and Chicago's Sears Tower.
Energy Smart Schools. Announced in October 1998, this initiative cuts across several
DOE programs and brings together public and private sector resources to cut schools'
energy bills so that the savings can be reinvested in students and their education.
TRANSPORTATION
Partnership for a New Generation of Vehicles (PNGV). PNGV is a government-
industry effort that aims to develop attractive, affordable cars that meet all applicable
safety and environmental standards and get up to three times the fuel efficiency of today's
cars. Since 1993, great strides have been made in producing lower-cost, light-weight
materials, inexpensive fuel cells, and advanced internal combustion engines for use in
hybrid vehicles. The program aims to produce a prototype mid-sized family car capable of
80 miles per gallon (mpg) with a two-thirds reduction in carbon emissions by 2004. The
FY 2000 budget includes $264 million for PNGV-related work, an increase of $24 million
over the amount appropriated for FY 1999.
7
Light and Heavy Trucks. Similar government-industry efforts are aimed at developing
cleaner, more efficient diesel engines for both light and heavy trucks.
-- By 2002, DOE aims to develop advanced diesel cycle engine technologies for
pickup trucks, vans, and sport utility vehicles which achieve at least a 35 percent
fuel efficiency improvement relative to current gasoline-fueled trucks while
meeting strict emission standards.
-- By 2004, DOE, in coordination with EPA and the Department of Defense, aims
to develop engine and vehicle technologies for heavy trucks that will increase
the fuel economy to 12 mpg from the current average of 5.3 mpg.
Biofuels. Working with the Department of Agriculture (USDA), DOE will continue its
work in the biochemistry of converting wood chips, grasses, agricultural wastes, and other
products into ethanol and other potentially useful fuels.
INDUSTRY
Industries of the Future. This DOE program works cooperatively with the nation's most
energy-intensive industries -- such as aluminum, glass, chemicals, forest products, mining,
petroleum refining, and steel -- on developing technologies that increase energy and
resource efficiency. Promising collaborative efforts include improvements in the process
of making steel, pulp and paper, and other energy-intensive products that could
dramatically increase efficiency, lower greenhouse gas emissions, and improve
competitiveness.
Industrial Combined Heat and Power (CHP) Systems. DOE is developing new
industrial CHP systems to capture thermal heat would otherwise be wasted. These
systems are expected to be 15 percent more energy efficient and 80 percent cleaner than
conventional power systems and cut electricity costs by 10 percent. In addition, EPA and
DOE are also working to eliminate barriers to the rapid dissemination of combined heat
and power technology.
Voluntary Industrial Partnerships. EPA will expand its industry partnership programs,
such as Climate Wise and the Voluntary Aluminum Industrial Partnership, to
encourage businesses to take advantage of cost-effective emissions reductions
opportunities -- including emissions of the most potent greenhouse gases, such as
methane, perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), and sulfur hexaflouride
(SF6).
8
Agriculture and Forestry. USDA will undertake R&D and support demonstration
projects aimed at both lowering greenhouse gas emissions from agriculture and forestry
and reducing their vulnerability to climate change.
--The Natural Resources Conservation Service will invest $3 million in projects
to demonstrate and test various means of reducing greenhouse gas emissions in
agriculture, such as compost-based waste-handling facilities, rotational grazing
systems, and improved feed and forage systems.
--The Agricultural Research Service will devote $7 million towards climate
change related activities, including the development of new technology and
expertise for reducing agriculture's vulnerability to a changing climate. Field
experiments will seek to measure various potential effects of climate change, such
as varying amounts and patterns of rainfall on forage production.
The FY 2000 budget also includes important USDA funding for developing advanced
biomass energy technologies; R&D and demonstration projects for carbon sequestration;
research to study the role of farms, forests, and other natural or managed lands in
capturing and storing carbon; and a comprehensive U.S. soil carbon inventory (see pp. 10-
12 below).
ELECTRICITY
Photovoltaic Energy Systems. Over the past 20 years, Federal R&D has resulted in a 90
percent cost reduction in solar photovoltaics. DOE will accelerate R&D of the next
generation photovoltaic cells; increase manufacturing R&D; increase research in
buildings-integrated applications; and fund efforts to develop new, unconventional
technologies.
-- Million Solar Roofs. In June, 1997, the President announced an initiative to
encourage the installation of one million solar systems by 2010, which would
reduce carbon emissions equivalent to the annual emissions from 850,000 cars.
DOE has received commitments for over half a million solar rooftop installations.
Biomass. Biomass represents a tremendous renewable resource whose use can help
strengthen our energy security, protect the environment, and enhance our rural economy.
-- Biomass Power. DOE is testing and demonstrating biomass co-firing with coal;
developing advanced technologies for biomass gasification using paper industry
by-products; and developing and testing high-yield, low-cost biomass feedstocks.
9
-- Advanced Biomass Technologies. This year DOE, USDA, and other Federal
agencies and private partners will launch a national partnership to develop
advanced integrated biomass technologies. These technologies will enable the
production of power, transport fuels, and high-value chemicals from biomass
feedstocks.
Wind Power. DOE will continue developing a next-generation wind turbine able to
produce power at 2.5 cents per kilowatt-hour in good wind regions, accelerate R&D on
critical components, and accelerate testing and field validation.
Hydrogen. DOE will accelerate research on low-cost hydrogen production and storage,
prerequisites to the widespread use of hydrogen as a fuel.
High Temperature Superconductivity. DOE supports industry-led projects to capitalize
on recent breakthroughs in superconducting wire technology, aimed at developing devices
such as advanced motors, power cables, and transformers. These technologies would
allow more electricity to reach the consumer without an increase in fossil fuel input.
CARBON SEQUESTRATION
R&D for Sequestration. Research initiatives are being funded to find ways to sequester
(store) carbon. Examples include:
-- Enhancing Forest and Farmland Sinks. The Forest Service, in conjunction
with other USDA agencies, will spend $6 million for R&D and demonstration
projects for optimizing forest, farmland, and rangeland carbon sinks. The focus of
such projects will include storage of carbon in forest soils and increased durability
and use of wood products to sequester carbon.
-- Enhancing natural geological and oceanic processes. DOE will support
research into the feasibility of capturing and storing carbon dioxide in underground
geological structures and in the deep ocean.
10
Other Climate-Related Investments
There are a number of additional programs for which funding is proposed in the FY 2000 budget
that -- while not part of the Climate Change Technology Initiative per se -- contribute to
improving energy efficiency and reducing greenhouse gas emissions. These programs include:
Cleaner Coal and Natural Gas. The FY 2000 budget includes $209 million to support
the Department of Energy's (DOE) aggressive R&D effort to develop next-generation
technologies for the combustion and use of coal and natural gas. For example, research
and development of two new coal combustion technologies -- integrated gasification
combined cycle and pressurized fluidized bed combustion -- could lead to ultra-high
efficiency coal plants with dramatically lower greenhouse gas emissions.
Low Income Weatherization and State Energy Grants. These DOE programs facilitate
energy efficiency investments at the State and local level. The Weatherization
Assistance Program, for example, delivers energy conservation services, such as
insulation, to low-income Americans, reducing energy costs for consumers, improving
health and safety, and reducing carbon emissions. The total FY 2000 budget request for
these two programs is $191 million -- a $25 million increase over FY 1999 appropriations.
Agricultural & Forestry Conservation Programs. Many Department of Agriculture
conservation programs have the co-benefit of reducing carbon emissions resulting from
agriculture and forestry and enhancing the ability of "sinks," such as forests and
farmlands, to sequester or store carbon. This includes programs such as the Conservation
Reserve Program, the Environmental Quality Incentives Program, and the Farmland
Protection Program. In general, these programs assist farmers, ranchers, and other
landowners in conserving and improving soil, water, and other natural resources
associated with rural land.
11
U.S. Global Change Research Program
The United States Global Change Research Program (USGCRP) seeks to provide a sound
scientific understanding of both the human and natural forces that influence the Earth's climate
system. The information produced by USGCRP's scientists is used by national and international
policy makers to make informed decisions on global change issues. This multi-agency scientific
research program coordinated through the National Science and Technology Council.
For FY 2000, the President is requesting nearly $1.8 billion for the USGCRP, an increase of $105
million, or 6 percent, above the amount enacted for FY 1999. Of the FY 2000 budget request,
$828 million is for scientific research (up $84 million) and $958 million is for NASA's
development of climate monitoring satellites and ground based observation systems. Other
important USGCRP budget highlights include:
Carbon Cycle Initiative. The FY 2000 budget request establishes a new multi-agency
initiative to improve our understanding of how carbon cycles between the atmosphere, the
oceans, and land. Included in this request are funds to study the role of farms, forests, and
other natural or managed lands in capturing carbon. Such carbon "sinks" may provide the
U.S. and other nations with new tools for offsetting greenhouse gas emissions. The
initiative includes $10 million in new funding for the Department of Agriculture (USDA)
and $5 million for the Department of Energy.
Soil Carbon Inventory. The FY 2000 budget request includes $14 million (an increase of
$12 million from FY 1999 appropriations) to significantly expand efforts to conduct a
comprehensive scientific inventory of carbon stored in U.S. soils and to develop methods
to predict how soil carbon levels would be affected by different practices and policies.
The inventory will be conducted by USDA's Natural Resources Conservation Service.
3-Dimensional Mapping of Forests. The FY 2000 budget provides funding to launch
NASA's Vegetation Canopy Lidar, which, for the first time, will give scientists a three
dimensional view of the Earth's forests to help determine the contribution of forests in
sequestering atmospheric carbon.
Consequences of Climate Change. The FY 2000 budget provides funding to complete a
report on the first national assessment of the potential consequences of climate change on
the United States. The report will identify potential impacts on key economic sectors and
geographic regions, mitigation and adaptation strategies, and provide technical
information for policy makers.
Regional Variability. The FY 2000 budget request includes funding to help scientists
examine climate change and variability on a regional scale. Supported in part by the
Administration's new Information Technology Initiative, the funding will help improve
U.S. computer capabilities to run the complex models required to understand the effects of
climate change and variability at the regional level.
12
Agriculture and The President's FY 2000
Climate Change Budget
Farmland, rangeland. and forests can play a critical role in meeting the challenge of global
warming through carbon sequestration and renewable bioenergy. In his FY 2000 budget, the
President is proposing $251 million in funding for sequestration and bioenergy research,
development, and deployment. This includes $105 million for the Department of Agriculture
(USDA), a $50 million increase over the amount appropriated for FY 1999, and $146 million for
the Department of Energy (DOE), a $59 million increase over FY 1999 appropriated funds.
Highlights include:
SEQUESTRATION
Carbon sequestration refers to the storage of carbon from the atmosphere by soils, trees, crops,
and other plants.
Demonstration Projects and New R&D. The Forest Service, the Agriculture Research
Service and the Natural Resources Conservation Service will launch new R&D and
demonstration projects to optimize farmland, rangeland, and forest carbon sinks.
Carbon Cycle Initiative. The FY 2000 budget request establishes a new multi-agency
initiative to improve our understanding of how carbon cycles between the atmosphere, the
oceans, and land. Included in this request are funds to study the role of farms, forests, and
other natural or managed lands in capturing carbon. Such carbon "sinks" may provide the
U.S. and other nations with new tools for offsetting greenhouse gas emissions. The
initiative includes $10 million in new funding for USDA and $5 million for DOE.
Soil Carbon Inventory. The FY 2000 budget request includes $14 million to significantly
expand efforts to conduct a comprehensive scientific inventory of carbon stored in U.S.
soils and to develop methods to predict how soil carbon levels would be affected by
different practices and policies.
BIOENERGY
Biomass refers to trees, crops and agricultural wastes used to produce power, fuels or chemicals.
It represents a tremendous renewable resource whose use can help strengthen our energy security,
protect the environment, and enhance our rural economy.
Biomass Power and Fuels. DOE and USDA will continue developing, testing, and
demonstrating high-yield, low-cost biomass feedstocks; testing and demonstrating biomass
cofiring with coal; and seeking to produce alternative fuels, such as ethanol, from biomass.
Advanced Biomass Technologies. This year, DOE, USDA and other Federal agencies
and private partners will launch a national partnership to develop advanced integrated
biomass technologies.
Biomass Tax Credit. The President's tax package proposes to extend for 5 years the
current 1.5 cent per kilowatt hour tax credit for electricity produced from biomass. The
proposal also expands the types of biomass eligible for the credit to include certain forest-
related, agricultural and other resources. Finally, the package includes a 1.0 cent per
kilowatt hour tax credit for electricity produced by cofiring biomass in coal plants.
MEETING THE CHALLENGE OF GLOBAL CLIMATE CHANGE
MARCH 1999
Global climate change is one of our greatest environmental challenges. There is a broad scientific
consensus that the problem is real and that the threats it poses -- such as increasingly frequent and
severe storms and droughts, potential increases in respiratory and infectious diseases, and rising
sea levels -- are too serious to ignore
The Clinton Administration is working hard at home and abroad to meet the challenge of climate
change. Domestically, we are working to implement the President's balanced plan of win-win
initiatives to reduce greenhouse gas emissions. Internationally, we are working to complete the
unfinished business of the Kyoto Protocol and to secure the meaningful participation of developing
countries in efforts to address global warming.
THE SCIENCE OF CLIMATE CHANGE
Greenhouse gases trap heat from the sun to keep the Earth's temperature an estimated 60 degrees
Fahrenheit (F) warmer than it would be absent such gases, thus sustaining our existence on the
planet. As a result of the burning of fossil fuels and deforestation, the concentration of carbon
dioxide (CO2), the principal greenhouse gas, has increased 30% since preindustrial times. If we
continue on a business-as-usual trajectory, this concentration is expected to reach almost twice
current levels by 2100 -- a level not seen in 50 million years. The Intergovernmental Panel on
Climate Change (IPCC), which represents the work of more than 2,000 of the world's leading
climate scientists, estimates that this will lead to an increase in global temperature of 2 to 6.5
degrees F. By way of comparison, the last ice age was only about 9 degrees F colder than today.
Over the past year, new data from tree rings, ice melts, boreholes, and satellites have reinforced the
broad scientific consensus that global warming is well underway. Studies have shown that the 20th
century has been the warmest century in the past 1200 years; the 1990s have been the warmest
decade in that period; and that 1997 and 1998 have been the warmest years since reliable instrument
records began more than a century ago.
POTENTIAL IMPACTS OF CLIMATE CHANGE
Scientists predict a range of likely effects from global warming:
Extreme weather. As temperatures increase, so does the rate of evaporation. This acceleration
of the hydrologic cycle is projected to increase the frequency and intensity of extreme weather
events such as floods and droughts. Last year's El Nino - which produced warmer and wetter
conditions akin to those anticipated from global warming - offered us a window on the type of
extreme weather that global warming may bring, from droughts and fires in Florida, Texas,
Mexico and Indonesia to devastating floods in China and Bangladesh.
Human health. Warmer temperatures are projected to increase fatalities from heat stress and
expand the geographic ranges for diseases like malaria and dengue fever. Additional smog
caused by warmer temperatures could increase the incidence of asthma and other respiratory
illnesses, particularly among children and the elderly.
Sea level rise. Scientists project that the sea level will rise by an additional 6 to 37 inches by
2100, endangering island states and coastal areas. A 20-inch rise could inundate 7,000 square
miles of the U.S. coastline, with Florida and the Gulf Coast at greatest risk.
Agricultural impacts. Changes in growing seasons, water availability, soil moisture, and
precipitation are expected to cause significant regional shifts in food productivity, with decreased
production in many of the world's poorest regions. Water supplies and water quality may also be
affected, posing threats to irrigation, fisheries, and drinking supplies.
Damage to ecosystems. Many species are highly adapted to particular climate conditions and
may not survive substantial climate shifts. For example, the United States may lose beech trees
and sugar maples, and western conifer forests are likely to shrink, as the tolerable climate zones
for these species shift hundreds of miles to the north.
PRESIDENT CLINTON'S DOMESTIC PLAN
In October 1997, President Clinton outlined an environmentally and economically sound plan for
reducing U.S. greenhouse gas emissions. The plan emphasizes win-win initiatives designed to cut
emissions while increasing energy efficiency and creating new opportunities for economic growth.
Tax incentives and R&D. The President's plan includes the Climate Change Technology
Initiative a vigorous program of tax incentives and investments aimed at increasing energy
efficiency and spurring the broader use of renewable energy. The FY 1999 appropriations for
these programs totaled over $1 billion and represented a 25% increase over the prior year. The
President's FY 2000 budget proposes a still more accelerated effort.
The tax incentive package contains $3.6 billion over five years for consumers who purchase
energy efficient products and for producers of energy from renewable sources. Highlights
include: a tax credit of up to $2000 for energy efficient new homes; a 10-20% credit for
selected energy efficient products for homes and buildings; a credit of up to $2000 for
rooftop solar systems; a credit of up to $4000 for qualifying electric, fuel cell or hybrid
vehicles; extension of the current 1.5 cents/kilowatt hour credit for the production of
electricity from wind and biomass; an expansion of the biomass credit to cover additional
sources; and a 1.0 cent/kilowatt hour credit for cofiring coal and biomass in power plants.
The investment package contains nearly $1.4 billion in FY 2000 to research, develop, and
deploy clean energy technologies. This represents a 34 percent increase over the amount
appropriated in FY 1999. Highlights include: increased funding for the Partnership for a New
Generation of Vehicles, a government-industry effort to develop cars that get up to three
times the fuel efficiency of today's cars; the Partnership for Advancing Technology in
Housing, which aims to improve the energy efficiency of new homes by more than 50 percent
and to retrofit 15 million existing homes to make them 30 percent more energy efficient
within a decade; a stepped-up bioenergy initiative to develop advanced bioenergy
technologies; expanded research and development efforts in other key renewable energy
technologies; and a new research project, the Carbon Cycle Initiative, to deepen our
understanding of carbon "sinks," such as forests and farmlands.
2
Credit for Early Action. The Administration is working closely with industry and Congress on
legislation to reward companies taking early, voluntary action to reduce their greenhouse gas
emissions or increase carbon sequestration.
Clean Air Partnership Fund. The President's FY 2000 budget also proposes $200 million for
the creation of a new Clean Air Partnership Fund to support state and local efforts to reduce both
greenhouse gas emissions and ground-level air pollutants. The Fund will help finance projects
that go beyond legal requirements and enable communities to achieve clean air goals sooner. It
will also stimulate cost-effective pollution control strategies, spur technological innovation, and
leverage substantial non-Federal investment in cleaner air.
Industry consultations. The President's plan also involves building partnerships with key
energy-intensive industries to develop sector-by-sector initiatives to cut emissions. These
partnerships are identifying opportunities for working together to remove barriers to the
development and widespread use of energy efficient technologies and practices.
Electricity restructuring. Another core element of the President's plan involves restructuring
the electricity industry by introducing competition that will reduce greenhouse gas emissions
while saving consumers millions on their energy bills. The Administration's restructuring
proposal would provide a profit incentive for generators to produce more electricity with less
fuel and to improve energy efficiency. It also includes a renewable portfolio standard to increase
the use of electricity from renewable sources and a Public Benefits Fund to spur greater
investment in energy efficiency and renewables.
Federal energy use and procurement. The President's plan seeks to substantially reduce the
Federal government's own greenhouse gas emissions by improving the energy efficiency of
Federal facilities and activities and reforming procurement practices. These actions are important
in their own right, since the Federal government is the nation's largest single energy user, but
they also set an important example for the private sector.
Domestic emissions trading. The President has proposed a domestic emissions trading system
to begin by 2008 so that we can achieve our emissions target at the lowest possible cost. The
U.S. has used emissions trading successfully to reduce the pollution that causes acid rain
exceeding environmental objectives at about 50% the expected cost.
Scientific research. The Administration is continuing its strong support for the U.S. Global
Change Research Program. This program provides a sound science foundation for policy
decisions as it furthers our understanding of human and naturally induced changes in the Earth's
environment and assesses the likely consequences of global warming.
DIPLOMATIC AGENDA
Thanks largely to U.S. leadership, the international climate change agreement reached at Kyoto,
Japan in December 1997, combines strong environmental targets with flexible, market-based
mechanisms that will allow nations to meet their targets in a cost-effective manner.
3
Emissions targets. The Kyoto Protocol's emissions targets include a multi-year time frame
(2008-2012), giving our economy and our technologies more time to adapt; differentiated targets
for developed countries; coverage of all six greenhouse gases; and inclusion of so-called carbon
"sinks" - so that nations can receive credit for activities that absorb carbon dioxide, such as
afforestation, reforestation, and better forestry and agricultural conservation practices.
Flexible market mechanisms. The Protocol includes key market mechanisms that will provide
nations and companies with real flexibility in how they achieve emissions reductions, including
international emissions trading and the Clean Development Mechanism (CDM). Trading among
countries that have taken on targets can dramatically cut the cost of reducing emissions. The
CDM will allow U.S. companies to gain low-cost emissions credits through, for example,
emissions-cutting, clean technology projects undertaken in developing countries.
Meaningful participation by developing countries. President Clinton has called for more
meaningful participation on the part of key developing countries in addressing global warming.
He has made clear that he will not submit the Kyoto Protocol to the Senate until such
participation is achieved.
At the November 1998 UN climate change conference in Buenos Aires, the parties agreed to a two-
year timetable for filling in the key details of the Kyoto Protocol in areas such as emissions trading,
the Clean Development Mechanism, compliance, and the scope and use of carbon sinks. Buenos
Aires also saw a significant breakthrough on the issue of developing country participation as
Argentina and Kazakhstan announced their intention to take on binding emissions targets for the
2008-2012 time period.
ECONOMIC COST OF KYOTO
The Administration's economic analysis of the Kyoto Protocol concludes that the cost to the United
States of meeting our Kyoto target for reducing greenhouse gases should be modest. Even without
counting the impact of domestic policies or the benefits of acting to mitigate climate change,
estimates derived from economic modeling suggest an emissions price in the range of $14 to $23 per
ton of greenhouse gases. In 2010, that would translate into an increase of $70 to $110 per year for
an average family's energy bill. This increase, however, would be substantially offset by the decline
in electricity prices resulting from restructuring the electricity industry, as the Administration and
others have proposed. In addition, noted economists have estimated the ancillary benefits of
reducing greenhouse gas emissions -- such as reduced air pollution -- could produce savings equal to
one quarter of the costs of meeting our Kyoto target.
CONCLUSION
For the past 25 years, efforts to protect the environment, whether by cleaning our air, our water, or
eliminating acid rain, have been repeatedly assailed as a threat to our economy. Yet today we have
the cleanest environment in a generation and the strongest economy in a generation. President
Clinton's balanced approach to the challenge of climate change will allow us to grow the economy
and protect the environment at the same time.
4
Fact Sheet on EIA Economic Analysis
The Energy Information Administration's (EIA) recent analysis of the Kyoto Protocol is
significantly flawed. In modeling implementation of the Protocol, EIA fails to take into account
the Protocol's flexibility mechanisms, incorrectly assumes that most businesses will fail to take
action to address climate change until 2005 or later, and uses a model that underestimates the
dynamism of the U.S. economy. In contrast, the Administration's economic analysis of the
Protocol, released in July, demonstrates that with effective market mechanisms, meaningful
developing country participation, and a realistic ramp up period, the costs of meeting the Kyoto
target should be modest.
The EIA Analysis Fails to Model the Kyoto Protocol's Flexibility
The EIA analysis fails to model international trading. EIA's model is not capable of
modeling international emissions trading, even though this is a critical feature in reducing
the cost of compliance for the United States and other countries. By contrast, the
Administration explicitly modeled international trading, as has every modeling team
participating in the exercise assessing Kyoto conducted under Stanford's Energy Modeling
Forum which includes virtually all of the leading energy economic modelers in the
world. These models have demonstrated that international trading among industrialized
countries could lower costs of emissions reductions by as much as half.
EIA does attempt to include scenarios which assume an amount of domestic reductions
intended to mirror the level of domestic reductions implied in the model used by the
Administration. However, these EIA scenarios still overstate the cost of permits because
they fail to take into account the way that an international market, bidding to a single
international permit price, lowers cost.
The EIA analysis fails to account for all six types of greenhouse gases. The EIA study
assumes that the United States would achieve its target only through carbon dioxide
reductions. In fact, the Kyoto Protocol covers all six major greenhouse gases, and permits
countries to achieve their targets through reductions made in any of these gases. This
flexibility allows countries and companies to make reductions in the most cost-effective
manner possible, reducing the cost of compliance.
EIA Assumes Firms Take Little or No Action to Address Climate Change before 2005
In EIA's study, most businesses do not take action to address climate change until 2005,
and therefore only have a short time until the 2008-2012 budget window to reduce
emissions. Studies have demonstrated that the amount of lead time a company takes has
dramatic economic implications. For example with EIA's model, a 5-year "ramp-up"
(starting in 2005) would result in economic costs 65% greater than that associated with a
10-year "ramp-up" (starting in 2000). Thus, EIA's assumption that many businesses
would fail to plan for the future results in higher projected costs.
1
Already businesses are taking action to address climate change. For example, on
September 18, British Petroleum announced its plan to reduce emissions of greenhouse
gases worldwide by 10% below 1990 levels by the year 2010. In July, United
Technologies announced their plan to reduce its worldwide energy consumption by 25%
by the year 2007.
The EIA Analysis Does Not Include Policy Elements That Will Lower Costs
In the Administration's analysis, additional elements of policy were recognized as having
the potential to significantly decrease the costs of compliance and increase the amount of
reductions that might be accomplished at home. These policies were not factored into the
illustrative model the Administration cited, but were qualitatively taken into account in
reaching the conclusion that the United States could meet its Kyoto target for a relatively
modest cost. The EIA analysis, however, ignores elements such as forestry activities
(covered under the Kyoto Protocol) and the Administration's electricity restructuring
proposal, which could significantly lower compliance costs.
Studies put out by the Department of Energy's National Laboratories (the so-called Five
Lab and Eleven Lab studies) demonstrate that there are many viable technology pathways
to reduce greenhouse gas emissions at low cost.
The EIA Study Ignores the Dynamism of the U.S. Economy
The EIA study uses a macroeconomic model a short-term forecasting tool that is
inappropriate to use for making forecasts going out a decade or more -- as opposed to a
general equilibrium-type model that would incorporate the dynamism and flexibility that is
the hallmark of the American economy. (For example, the American economy has
adopted the Internet in the past decade, leading to industries and services that could not
have been imagined a decade ago.) A study by the World Resources Institute indicates
that this one factor is often enough to double the estimated costs of meeting a given
emissions reduction goal.
The EIA study assumes that in their use of energy, consumers and businesses are much
less responsive to price changes than is commonly assumed in the economics literature. A
more moderate choice of price responsiveness would reduce the estimated permit prices
and reduce the economic costs estimated by EIA.
The EIA Study is Pessimistic About the Role of Technology
The EIA study is pessimistic about the potential of technology and market innovation. It
assumes no direct effect of substantially higher fuel prices on the availability of more
advanced technology or more innovative uses of technology, both of which could
contribute significantly to reducing emissions.
2
THE CLINTON-GORE
ECONOMIC RECORD
Before
After Six Years
Budget Deficit/Surplus
$290 billion deficit in 1992 --
First budget surplus in a
the highest dollar level
generation -- the largest
in history
dollar surplus on record
Job Growth
Previous Administration: worst
17.7 million new jobs -- with
record since the
the highest percentage in the
Great Depression
private sector in 50 years
Unemployment
7.5% in 1992
4.5% in 1998 -- the lowest in
29 years and lowest
peacetime rate in 41 years
Median Family Income
Down $1,835 from 1988-1992
Up $3,517 since 1993
(Adjusted for Inflation)
Real Hourly Wages
Down 5% from 1981-1992
Up about 2.5% over past year
-- the fastest real wage growth
in over 20 years
Private-Sector Growth
2.4% from 1981-1992
3.9% -- the fastest rate since
(Average Annual Rate)
Johnson was President
Business Investment
1.9% from 1988-1992
12.1% -- the fastest rate since
(Producer's Durable Equipment
Kennedy was President
Average Annual Growth Rate)
Federal Government
Up from 21.7% in 1980
Cut from 22.5% in 1992 to
Spending
to 22.5% in 1992
19.6% in 1998 -- lowest level
(As A Share of GDP)
in 25 years
Welfare Rolls
14.1 million people on welfare
8.4 million people on welfare
in Jan. 1993
-- down 41% since 1993 --
lowest percentage since 1968
Inflation
4.2% from 1981-1992
2.5% -- the lowest since
(Average Annual Rate)
Kennedy was President
Homeownership Rate
Down, from 65.4% in 1981 to
7.4 million new homeowners
64.2% in 1992
-- the highest homeownership
rate in history
(66.8% in 3rd qtr of 1998 )
Auto Production
1992: Trailed Japan for 13th
World's #1 auto producer for
consecutive year
five years in a row
Competitiveness
1992: Trailed Japan, Germany,
World's most competitive
Denmark, and Switzerland
economy for five years
in a row
Providing Safe After-School Opportunities for A Quarter of A Million Children Each Year --
expanded the 21st Century Community Learning Centers program to provide safe and educational
after-school opportunities for up to 250,000 school-age children in rural and urban communities
each year.
Preparing for the 21st Century by Expanding Access to Education Technology -- created the
Technology Literacy Challenge Fund to help connect every school to the Internet by 2000. increase
the number of multimedia computers in the classroom and provide technology training for teachers.
Increased overall investments in educational technology by thirty-fold. from $23 million in 1993 to
$698 million this year. Secured low-cost connections to the Internet for schools, libraries, rural
health clinics and hospitals.
Establishing the GEAR-UP Mentoring Program for Middle School Children -- created a new
mentoring initiative to help up to 100,000 low income middle school children prepare for college.
Expanding Choice and Accountability in Public School -- supported increase of public charter
schools, from one charter school in the nation in 1993 to more than 1,000 charter schools in 1998,
on track toward 3,000 quality charter schools early next century.
Providing Early Education to 835,000 Children with Head Start -- now reaching more kids than
at any time since its creation in 1965 and more than 200,000 additional children than in 1992.
Crime and Drugs: Lowest Crime Rates in 25 Years
Violent Crime at Lowest Level since 1973 -- violent crime fell 7% in 1997 and 21% since 1993.
The murder rate is down more than 25% since 1993, its lowest point in 30 years.
Putting 100,000 New Police on the Street -- in 1999, ahead of schedule and under budget, the
Administration will meet its commitment of 100,000 police officers for our communities.
Over 250,000 Felons, Fugitives and Stalkers Denied Handguns -- since the President signed the
Brady Bill into law. And the historic 1994 Crime Bill banned 19 of the deadliest assault weapons
and their copies, keeping assault weapons off our streets.
Developed Comprehensive Anti-Drug Strategy Including an Unprecedented $2 Billion
Anti-Drug Youth Media Campaign -- appointed four-star General Barry McCaffrey as the
nation's Drug Czar.
Fighting Hate Crimes -- enacted the Hate Crimes Sentencing Enhancement Act in 1994.
Announced sponsorship of the Hate Crimes Prevention Act during the historic White House
Conference on Hate Crimes in 1997.
Health Care: Increasing Access for Millions of Americans
3
OCT-21-1998 12:38
OES Congressional Affairs
202 647 4221 P.01/08
Bureau of Oceans and International
Environmental and Scientific Affairs
Washington, D.C. 20520
DATE: 10/21
NUMBER OF PAGES TO FOLLOW: 7
FAX TO:
Martha Wofford
TELEPHONE:
FAX:
OFFICE:
FAX FROM:
Susan Povenmire
202-647-3486
TELEPHONE:
FAX: 202-647-4221
OFFICE:
MESSAGE:
As we discussed
HES, PFCs, METHANE NITTOGEN CO2, SF 6
1BM ANNOUNCEMENT
White House Update on Global Climate Change
July 20, 1998
This is the first of a series of White House updates on climate change. Attached to this e-mail is a
four-page fact sheet that outlines the science, potential impacts of climate change and the
President's plan to address the challenge of climate change.
Climate Change & Weather
A study published in the science journal Nature on April 23 found, based on data from the
Northern Hemiphere, the 20th century to be the warmest century in 600 years, and three years in
the 1990s to be the warmest ever -- with 1997 the single warmest year on record.
The Hottest June on Record. Last week, the Vice President along with the National Oceanic and
Atmospheric Administration (NOAA), announced new data showing that last month was the hottest
June on record and that the additional heat in the climate system is leading to more extreme weather
-- such as the fires in Florida, the drought in Texas and the flooding in the Northeast.
Record Temperatures January through May. The Vice President's announcement last week
follows a report from NOAA that each of the first five months of this year, January through May, set
new records for global temperature. Thomas Karl, senior scientist at the National Climatic Data
Center, said "The data also suggest that the year's El Nino may have been made worse by global
warming. In any event, the extreme events brought on by El Nino's warmer, wetter weather
provides a taste of what we can expect from a warmer, wetter world under global warming." As
Vice President Gore stated "this winter's El Nino is a window on the future -- a future that could
include more flood, drought, disease and forest fires -- if we don't act today."
Recent Energy Efficiency & Renewables Initiatives
PATH. On May 4, the President launched the Partnership for Advancing Technology in Housing
(PATH) in Los Angeles. PATH is an ambitious partnership between the building industry and
government to accelerate the deployment and development of advanced technologies that will make
houses far more energy efficient as well as more affordable, durable and of higher quality. As the
President said, PATH "will be the most ambitious effort ever to help private homebuilders and
homeowners make cost-effective, energy saving decisions that will pay big dividends throughout the
21st Century."
PATH aims to build homes that use 50 percent less energy within a decade and to
retrofit 15 million existing homes to make them 30 percent more energy efficient.
Residential homes account for 20 percent of all U.S. greenhouse gas emissions. If
PATH goals are met, the housing sector will reduce greenhouse gas emissions by
around 24 million metric tons of carbon in 2010, at a savings of some $11 billion to
consumers.
1
PRESIDENT CLINTON:
PROTECTING THE ENVIRONMENT AND PUBLIC HEALTH
October 15, 1998
In the Fiscal Year 1999 budget, President Clinton won important increases to combat water pollution,
protect precious lands, restore endangered species, and develop clean energy technologies. At the same
time, the President forced Congress to drop special-interest riders that would have rolled back protections
already in place.
Clean, Safe Water for America. The budget provides $1.7 billion -- a 16 percent increase -- for the
President's Clean Water Action Plan, a five-year initiative to help communities and farmers clean up the
almost 40 percent of America's surveyed waterways still too polluted for fishing and swimming. In addition,
the budget provides States $2.13 billion in financing for water quality construction projects.
Preserving Precious Lands. An additional $325 million through the Land and Water Conservation Fund in
Fiscal Year 1999 -- a $55 million increase -- will be used to acquire dozens of natural and historic sites
around the country, including critical winter range for Yellowstone bison, New Mexico's Baca Ranch and the
last remaining private stretches of the Appalachian Trail. In addition, the budget provides $226 million to
continue the Administration's Everglades restoration effort.
Leading the Fight Against Global Warming. The budget provides over $1 billion -- a 26 percent increase --
for research investments that will reduce greenhouse gas pollution, save energy, create jobs, and save
consumers money through energy efficiency and renewable energy technologies. An additional $192.5 million
goes to the Global Environment Facility, an international fund that invests in clean energy and other
environmental projects in developing countries.
Protecting Endangered Species. The budget provides a 23 percent increase for efforts to restore threatened
and endangered species, including $5 million to provide incentives for habitat conservation on private lands.
An additional $115 million goes toward salmon restoration in the Pacific Northwest.
Defending Our Environment Against Stealth Attacks. President Clinton forced Congress to drop
special-interest riders that would have rolled back hard-won environmental protections.
Anti-environmental riders stripped from budget bills would have: Carved the first road ever through a
designated wilderness area; forced overcutting of timber on national forests; accelerated logging of
Alaskan rain forest; allowed intrusive helicopter landings in Alaska wilderness; hindered salmon
restoration in the Pacific Northwest; allowed harmful commercial fishing in wilderness waters of
Glacier Bay National Park; blocked common-sense actions to reduce greenhouse gas pollution; barred
the Administration from informing the public about the threat of global warming.
More Work Ahead:
Speeding Toxic Cleanups. President Clinton called for an additional $650 million -- a 40 percent increase --
to accelerate Superfund cleanups. But the Republican majority refused to provide these funds now,
threatening to delay cleanup at up to 171 sites across the country.
Ending Taxpayer Ripoffs. The Republican majority insists on blocking rules requiring oil companies to pay
fair-market for oil from federal lands, costing the U.S. Treasury an estimated $64 million a year.
Outline of Events
President's plan announced, Oct. 22, 1997
Kyoto -- historic agreement
7% below 1990 levels
flexibility mechansims -- CDM, trading, all six ghg
Budget package --CCTI
PATH
Energy Star Buildings
Our Role
we reflect the people's view, people expect their gov't to forsee (emerging block of new
voters -- environment #1 issue)
It's our job to provide good info to the public and legislators so they can make good
decisions
We're at a stage when things are polarized
Business community seems to be moderating, want a good env. reputation and want a
good outcome, requires being at the table, not being in denial
To ratify the Kyoto Protocol takes 67 votes in the Senate
Need a coalition that includes business, environmentalists, economicist who believe the
risks are serious, the technology is there, it's not overly expensive and it's fair.
The risks of not acting are too great to ignore even though its not popular politically
We have a tremendous amount of work to do to help them understand
What we've been doing: economic modeling, regional workshops, technolgy trying to do
R&D
You'll hear a variety of different perspectives on climate today and in your reading. Remember
that people have different interests at stake and that we have a vibrant political system that allows
everyone to be heard -- $$$
Communications planning
1st thing in developing a communications plan is determining audience
challenge with cc is so many different audiences
International front -- many different audiences
broadest scope of any international treaty on the environment -- involves nearly every
government, how gov'ts power their economies, transportation, etc.
Small, incremental steps.
Difficult to move domestic audiences -- few benchmarks to use
Talking Points on the
Economic Impact of the Kyoto Protocol
June 9, 1998
1.
The model used to derive these numbers is flawed. It omits all the flexibility mechanisms
included in the Kyoto Protocol and the Administration's policies.
The WEFA analysis omits international emissions trading. This study assumes
that no countries undertake emissions trading, even though the right to trade is
explicitly stated in the Kyoto agreement. International trading among industrialized
countries could reduce costs of emissions by half.
The WEFA study does not include developing country participation in
emissions reduction. This study assumes developing countries do nothing to reduce
greenhouse gas emissions. However, the Kyoto Protocol establishes the Clean
Development Mechanism, and even if developing nations only participate in this
mechanism the costs to the United States could be 20 to 25% lower. If key
developing countries participate more fully, for example by taking on emissions
targets and undertake emissions trading, the costs to the United States could be
reduced even more.
The WEFA study does not account for six categories of greenhouse gases. This
study assumes that emissions reductions would occur only through carbon dioxide
reductions, even though all six major greenhouse gases are covered by the Protocol.
Since the Kyoto agreement requires countries to reduce emissions to specific targets,
on average across all kinds of greenhouse gases, the flexibility is available to reduce
emissions of some gases more than others if it is cost-effective. Allowing for trading
across gases could lower costs by about 10%.
The WEFA analysis omits carbon sinks. This study assumes that no carbon sink
opportunities for absorbing greenhouse gas emissions are available, even though the
Kyoto agreement explicitly includes forestry activities. Low-cost carbon sink options
provide another opportunity to achieve emissions targets at a modest cost.
By ignoring these flexibility mechanisms, this analysis fails to assess accurately the Kyoto
Protocol as well as the Administration's efforts to reduce greenhouse gas emissions. The
Administration has always said that reducing emissions can be done smart or dumb. By failing
to account for these flexibility mechanisms, the WEFA analysis illustrates the costs of doing it
dumb. The Administration believes that by including market mechanisms it can be done smart.
The costs of meeting the challenge of climate change will be modest. The Administration is
working to ensure that greenhouse gas emissions that contribute to global warming are reduced in
common sense, cost-effective ways. The Administration believes that with effective market
mechanisms -- international emissions permit trading, the Clean Development Mechanism joint
implementation, timing flexibility during the commitment period, opportunities to trade across
greenhouse gases, and carbon sinks -- as well as with meaningful developing country participation
and flexible timetables, the economic cost to the United States of meeting the Kyoto targets will be
modest.
1
2.
The potential costs of waiting too long to address the threat of climate change exceed the
costs of acting now. The threats climate change presents are widespread and range from
potential increases in asthma and infectious diseases to increasingly frequent and severe
storms. Despite the challenge of putting a price tag on the risks of inaction, economists have
nonetheless developed troubling cost estimates of the risks of global climate change --
ranging in the tens of billions of dollars per year for the United States.
Human health. Warmer temperatures are projected to increase fatalities attributable
to heat waves in the U.S. of the kind that killed 400 in Chicago in 1995. The
incidence of asthma and other respiratory illnesses, particularly among children and
the elderly, is expected to increase from the additional smog caused by warmer
temperatures. In a warmer, wetter world, the geographic ranges for infectious
diseases could significantly expand. The incidence of malaria, for example, could
increase by 50 million or more cases a year by 2100.
Extreme weather. Warmer, wetter weather is projected to increase the frequency
and intensity of extreme events such as floods and drought. The 1993 Mississippi
River flood alone caused damages of $10-20 billion, while the Pacific Northwest
floods in 1996-97, and the 1997 Ohio River and Red River floods resulted in
substantial costs to business and homeowners. Global warming may also mean
increased drought in the U.S., particularly in the Great Plains and other arid areas.
Sea level rise. Scientists project that sea level will rise by an additional 6-38 inches
by 2100. A 20 inch-rise could inundate 7,000 square miles of the U.S. coastline, with
Florida and the Gulf Coast at greatest risk. Changes in rain and snowfall could affect
water supplies and water quality, posing threats to irrigation, fisheries, and drinking
supplies
Agricultural impacts. Changes in growing seasons, water availability, soil moisture
and precipitation could cause significant regional shifts in food productivity, with
decreases in food production.
3.
The President's plan protects the environment and grows the economy. In October 1997,
President Clinton put forward a responsible, balanced approach to begin meeting the
challenge of global warming, while protecting our economy and maintaining our international
competitiveness. This plan emphasizes win-win initiatives designed to cut emissions by
increasing energy efficiency; developing new, cleaner energy technologies; working with
industry and others to promote sensible solutions; and relying on market-based mechanisms
to ensure cost-effective reductions.
The plan includes a $6.3 billion package of tax incentives and R&D aimed at cutting
greenhouse gas emissions and building partnerships with industry to remove barriers
to the development and widespread use of energy efficient technologies and practices.
4.
Enabling environmental protection and economic growth to go hand-in-hand. For the
past 25 years, efforts to protect the environment, whether by cleaning our air and water,
eliminating acid rain or closing the ozone hole, have been repeatedly assailed as a threat to
our economy. Yet today we have the cleanest environment in a generation and the strongest
economy in a generation. President Clinton's balanced approach to the challenge of climate
change will allow us to grow the economy and protect the environment at the same time.
2
Nine of the last 11 years have been the hottest this century; and the 1990's were the warmest
decade in 600 years.
Although this winter's severe El Nino cannot be directly linked to be linked to global
warming, it provides a preview some of the extreme, erratic weather that can be
expected more frequently as the climate changes.
U.S. rainfall has increased 5 to 10 percent over the last century, an increase consistent
with projections of a warmer, wetter world resulting from climate change.
Most mountain glaciers around the world have receded significantly in the last 100
years. For example, Glacier National Park has lost 70 percent of its glaciers, and they
are predicted to be completely gone by 2030.
POTENTIAL IMPACTS OF CLIMATE CHANGE
Health
Warmer temperatures are projected to increase fatalities from heart failure and
pulmonary disease of the kind that killed 400 people in Chicago in 1995. In the next
50 years, deaths attributable to heat waves in the U.S. could double.
The prevalence of asthma and other respiratory illnesses, particularly among children
and the elderly, is expected to increase from the additional smog caused by warmer
temperatures.
In a warmer, wetter world, the geographic ranges for infectious diseases could
significantly expand, resulting in 50 million or more additional cases of malaria a year
by 2100.
Increased Costs from Flooding and Drought
Warmer, wetter weather means increased flooding. Recent years have shown us how
vulnerable we are to such events. The 1993 Mississippi River flood caused damages of
$10-20 billion, the Pacific Northwest floods in 1996-1997 resulted in $3 billion in
losses, the 1997 Ohio River flood cost $1 billion, and the 1997 Red River flood in the
Northern Plains caused $2 billion in losses.
Global warming may also mean increased drought. Large areas of the eastern and
central United States would face more frequent moderate to severe droughts,
particularly in the Great Plains. Damage from the Southern Plains drought of 1996
was estimated at $4 billion.
2
Energy Star Building Label. On April 20, the Administration launched the Energy Star Building
Label Program, a market-driven, voluntary partnership to reduce energy consumption by 30%,
reducing the emissions that cause global climate change and saving money from lower energy costs.
Key charter members include the Empire State Building, the World Trade Center and the Sears
Tower in Chicago.
Solar Roof Financing. On Thursday, June 25, a new private sector partnership to provide long-
term, low-cost financing for solar energy systems was announced. The announcement comes one
year after the President launched the Million Solar Roofs Initiative with a goal of placing solar
energy systems on 1 million U.S. roofs by 2010. Under the partnership between General Motors
Acceptance Corporation and the Solar Energy Industries Association, financing for solar systems will
be made available at the same rate as standard home mortgages, rather than at the much higher rates
that are typically charged.
A year after the President's announcement, the Department of Energy has received commitments for
over half a million solar roofs. Meeting the goal of 1 million solar roofs will help reduce carbon
emissions equivalent to the annual emissions from 850,000 cars; create approximately 70,000 high-
tech jobs; and increase domestic production of solar technologies, helping reduce production prices
and keeping the U.S. solar energy industry competitive in the $1.5 billion solar global market.
Industry Consultations
On October 22, 1997, the President announced a plan to begin addressing the challenge of
climate change. A major component of the President's plan is working with key industries to
encourage them to prepare voluntary action plans to reduce greenhouse gases and to work with
the government to identify and remove barriers to energy efficiency. Consistent with the
President's call, White House staff are consulting leading companies from several key industries to
start a dialogue on voluntary emissions reductions.
Over the last two senior White House staff met with senior executives of the aluminum industry,
the public power and rural electricity co-ops, and the steel industry. Over the next couple of
months, White House staff will be meeting with other key industries to advance similar dialogues
on voluntary emissions reduction strategies.
Industry Support
The support among business for taking action to meet the challenge of climate change is growing.
Pew Center. In April, the new Pew Center on Climate Change, with $5 million from Pew
Charitable Trusts, launched a campaign to build support for action on climate change. The
Center ran ads in The Wall Street Journal, The Washington Post, and The New York Times
that featured a joint statement by 13 major companies that said, "We believe we must address
one of the major challenges of the 21st Century: responding to global climate change while
2
maintaining economic growth." The companies, members of the Business Environmental
Leadership Council, are: Boeing, Lockheed-Martin, Toyota, Maytag, Whirlpool, United
Technologies, 3M, British Petroleum, Sun Oil. American Electric Power, U.S. Generating
Co., Enron and Intercontinental Energy.
Shell Oil. Also in April, Shell Oil quit the Global Climate Coalition, an oil industry coalition
opposed to the Kyoto Protocol, because the group's agenda conflicted with Shell's
commitment to help reduce carbon dioxide emissions, according to a company spokesman.
A report released by Shell stated that "Shell companies are committed to play their part in
making the savings in energy needed."
American Public Power Association. Last month the American Public Power Association
approved a new policy on global climate change acknowledging utilities' responsibility to
work to reduce greenhouse gas emissions. "Investments at home in our local communities,
in tandem with developing mitigation projects in other countries, will help the United States
reduce domestically its greenhouse gas emissions in a way that will benefit our national
economy and improve our local environment."
United Technologies. On July 14, United Technologies Corporation, a $25 company that
produces high-tech systems including Otis elevators, Carrier air conditioners, Pratt &
Whitney engines and Sikorsky helicopters, announced a plan to reduce energy consumption
by 25% by 2007, in an effort to combat global climate change. George David, United
Technologies Corporation Chairman and CEO, stated: "we, along with many others,
recognize the substantial ambiguities and open questions in research on global climate
change, but we believe also that the prudent course is to work to reduce greenhouse gas
emissions."
Congressional Activity
There has been recent action on the three appropriations bills that contain funding for the R&D
portion of the President's Climate Change Technology Initiative. This initiative involves
historically bi-partisan energy efficiency and renewable energy programs that help decrease our
dependence on foreign oil, improve air quality, decrease energy costs for consumers and
business, increase our economic competitiveness and reduce greenhouse gas emissions.
The VA-HUD bill, as reported by the House Appropriations Committee, includes an
anti-environmental rider stating that no funds can be used by the Environmental
Protection Agency (EPA) to: "develop, propose or issue" rules, regulations, decrees,
or orders for the purpose of implementation of or in contemplation of implementation
of the Kyoto Protocol."
Moreover, the report language in the bill would seek to impose a gag rule on the
Administration, stating that "[EPA] and the CEQ (Council on Environmental Quality)
are thus directed to refrain from conducting educational outreach or informational
seminars on policies underlying the Kyoto Protocol until or unless the Protocol is
3
ratified by the Senate."
The Appropriations Committees in the House and Senate have cut all of the President's
requested funding increases for energy efficiency and renewable energy programs. On the
Energy and Water bill, the Senate accepted a floor amendment sponsored by Senator Jeffords
to add back $70 million of the $100 million for renewable energy that had been cut in the
Appropriations Committee.
Diplomatic Activity
China. During the President's recent trip to China, he raised the issue of global warming on
numerous occasions. In his speech at Beijing University, the President departed from his
prepared text and made a strong appeal to the students to lead the charge on this issue: "But I
will say this again your generation must do more about this. This is a huge challenge for
you, for the American people and for the future of the world."
G8. At the G8 meeting in Birmingham, England in May, the Eight countries agreed that
industrialized countries should lead in the effort to combat global climate change, but that all
countries should participate in the global regime. The Eight agreed that the remaining steps
needed to ratify Kyoto included gaining broader participation from developing nations. The
Eight pledged "to work as a group with developing nations to secure participation and
commitments from all nations" and to develop rules for market-based emissions trading and
other flexibility mechanisms.
Summit of the Americas. At the Summit of the Americas in Santiago, Chile in April,
President Clinton and President Frei of Chile agreed "that developing countries should
participate meaningfully in efforts to address climate change, taking on emissions targets
whenever possible." Argentina took the same position last Fall.
Emissions Trading Potential. Emissions trading and the Clean Development Mechanism,
established under the Kyoto Protocol, represent immense opportunity for the private sector
and particularly for American clean technology firms. In a sign of international business
interest in emissions trading, in April, Japan and Russia reached an agreement to begin
feasibility studies on reducing emissions at 20 power plants in Russia to offset Japanese
emissions. In addition, in May, the International Petroleum Exchange in London announced
its intention to begin developing an emissions trading system and Canada began a pilot
greenhouse gas emissions trading system.
Bonn. Parties to the Framework Convention on Climate Change met in Bonn, Germany
from June 1-12, at the only planning meeting to prepare for the next Conference of the
Parties to be held November 2-13 in Buenos Aires, Argentina. The Bonn meeting considered
a number of items that stemmed from the Protocol and related Kyoto decisions, including:
international emissions trading, joint implementation, the Clean Development Mechanism and
carbon sinks.
4
White House Update on Global Climate Change
July 16, 1998
This is the first of a series of White House updates on climate change. Attached to this e-mail is a
four-page fact sheet that outlines the science, potential impacts of climate change and the
President's plan to address the challenge of climate change.
Climate Change & Weather
A study published in the science journal Nature on April 23 found that the 20th century has
been the warmest century in 600 years, the 1990s have been the warmest decade, 1997 has
been the single warmest year.
The Hottest June on Record. Earlier this week, the Vice President along with the National
Oceanic and Atmospheric Administration (NOAA), announced new data showing that last month
was the hottest June on record and that the additional heat in the climate system is leading to more
extreme weather of all kinds -- like the fires in Florida, the drought in Texas and the flooding in the
Northeast.
Record Temperatures January through May. The Vice President's announcement this week
follows a report from NOAA that each of the first five months of this year, January through May, set
new records for global temperature. Thomas Karl, senior scientist at the National Climatic Data
Center, said "The data also suggest that the year's El Nino may have been made worse by global
warming. In any event, the extreme events brought on by El Nino's warmer, wetter weather
provides a taste of what we can expect from a warmer, wetter world under global warming." As
Vice President Gore stated "this winter's El Nino is a window on the future a future that could
include more flood, drought, disease and forest fires -- if we don't act today."
Recent Energy Efficiency & Renewables Initiatives
PATH. On May 4, the President launched the Partnership for Advancing Technology in Housing
(PATH) in Los Angeles. PATH is an ambitious partnership between the building industry and
government to accelerate the deployment and development of advanced technologies that will make
houses far more energy efficient as well as more affordable, durable and of higher quality. As the
President said, PATH "will be the most ambitious effort ever to help private homebuilders and
homeowners make cost-effective, energy saving decisions that will pay big dividends throughout the
21st Century."
PATH aims to build homes that use 50 percent less energy within a decade and to
retrofit 15 million existing homes to make them 30 percent more energy efficient.
Residential homes account for 20 percent of all U.S. greenhouse gas emissions. If
PATH goals are met, the housing sector will reduce greenhouse gas emissions by
around 24 million metric tons of carbon in 2010, at a savings of some $11 billion to
1
consumers.
Energy Star Building Label. On April 20, the Administration launched the Energy Star Building
Label Program, a market-driven, voluntary partnership to reduce energy consumption by 30%,
reducing the emissions that cause global climate change and saving money from lower energy costs.
Key charter members include the Empire State Building, the World Trade Center and the Sears
Tower in Chicago.
Solar Roof Financing. On Thursday, June 25, a new private sector partnership to provide long-
term, low-cost financing for solar energy systems was announced. The announcement comes one
year after the President launched the Million Solar Roofs Initiative -- with a goal of placing solar
energy systems on 1 million U.S. roofs by 2010. Under the partnership between General Motors
Acceptance Corporation and the Solar Energy Industries Association, financing for solar systems will
be made available at the same rate as standard home mortgages, rather than at the much higher rates
that are typically charged.
A year after the President's announcement, the Department of Energy has received commitments for
over half a million solar roofs. Meeting the goal of 1 million solar roofs will help reduce carbon
emissions equivalent to the annual emissions from 850,000 cars; create approximately 70,000 high-
tech jobs; and increase domestic production of solar technologies, helping reduce production prices
and keeping the U.S. solar energy industry competitive in the $1.5 billion solar global market.
Industry Consultations
On October 22, 1997, the President announced a plan to begin addressing the challenge of climate
change. A major component of the President's plan is working with key industries to encourage
them to prepare voluntary action plans to reduce greenhouse gases and to work with the government
to identify and remove barriers to energy efficiency. Consistent with the President's call, White
House staff are consulting leading companies from several key industries to start a dialogue on
voluntary emissions reductions.
Last week, senior White House staff met with senior executives of the aluminum industry and the
public power and rural electricity co-ops and this week with CEOs from the steel industry. Over the
next couple of months, White House staff will be meeting with other key industries to advance
similar dialogues on voluntary emissions reduction strategies.
Industry Support
The support among business for taking action to meet the challenge of climate change is growing.
In April, the new Pew Center on Climate Change, with $5 million from Pew Charitable
Trusts, launched a campaign to build support for action on climate change. The Center ran
ads in The Wall Street Journal, The Washington Post, and The New York Times that featured
a joint statement by 13 major companies that said, "We believe we must address one of the
major challenges of the 21st Century: responding to global climate change while maintaining
economic growth.". The companies, members of the Business Environmental Leadership
Council, are: Boeing, Lockheed-Martin, Toyota, Maytag, Whirlpool, United Technologies,
2
3M, British Petroleum, Sun Oil. American Electric Power, U.S. Generating Co., Enron and
Intercontinental Energy.
Also in April, Shell Oil quit the Global Climate Coalition, an oil industry coalition opposed to
the Kyoto Protocol, because the group's agenda conflicted with Shell's commitment to help
reduce carbon dioxide emissions, according to a company spokesman. A report released by
Shell stated that "Shell companies are committed to play their part in making the savings in
energy needed."
Last month the American Public Power Association approved a new policy on global climate
change acknowledging utilities' responsibility to work to reduce greenhouse gas emissions.
"Investments at home in our local communities, in tandem with developing mitigation
projects in other countries, will help the United States reduce domestically its greenhouse gas
emissions in a way that will benefit our national economy and improve our local
environment."
On July 14, United Technologies Corporation, a $25 company that produces high-tech
systems including Otis elevators, Carrier air conditioners, Pratt & Whitney engines and
Sikorsky helicopters, announced a plan to reduce energy consumption by 25% by 2007, in an
effort to combat global climate change. George David, United Technologies Corporation
Chairman and CEO, stated: "we, along with many others, recognize the substantial
ambiguities and open questions in research on global climate change, but we believe also that
the prudent course is to work to reduce greenhouse gas emissions."
Congressional Activity
There has been recent action on the three appropriations bills that contain funding for the R&D
portion of the President's Climate Change Technology Initiative. This initiative involves historically
bi-partisan energy efficiency and renewable energy programs that help decrease our dependence on
foreign oil, improve air quality, decrease energy costs for consumers and business, increase our
economic competitiveness and reduce greenhouse gas emissions. The VA-HUD bill, as reported by
the House Appropriations Committee includes an anti-environmental rider stating that no funds can
be used by the Environmental Protection Agency (EPA) to: "develop, propose or issue" rules,
regulations, decrees, or orders for the purpose of implementation of or in contemplation of
implementation of the Kyoto Protocol."
Moreover, the report language in the bill would seek to impose a gag rule on the
Administration, stating that "[EPA] and the CEQ (Council on Environmental Quality) are
thus directed to refrain from conducting educational outreach or informational seminars on
policies underlying the Kyoto Protocol until or unless the Protocol is ratified by the Senate."
The Appropriations Committees in the House and Senate have cut all of the President's
requested funding increases for energy efficiency and renewable energy programs. On the
Energy and Water bill, the Senate accepted a floor amendment sponsored by Senator Jeffords
to add back $70 million of the $100 million for renewable energy that had been cut in the
Appropriations Committee.
3
Diplomatic Activity
During the President's trip to China, he raised the issue of global warming on numerous
occasions. In his speech at Beijing University, the President departed from his prepared text
and made a strong appeal to the students to lead the charge on this issue: "But I will say this
again your generation must do more about this. This is a huge challenge for you, for the
American people and for the future of the world."
At the G8 meeting in Birmingham, England in May, the Eight countries agreed that
industrialized countries should lead in the effort to combat global climate change, but that all
countries should participate in the global regime. The Eight agreed that the remaining steps
needed to ratify Kyoto included gaining broader participation from developing nations. The
Eight pledged "to work as a group with developing nations to secure participation and
commitments from all nations" and to develop rules for market-based emissions trading and
other flexibility mechanisms.
At the Summit of the Americas in Santiago, Chile in April, President Clinton and President
Frei of Chile agreed "that developing countries should participate meaningfully in efforts to
address climate change, taking on emissions targets whenever possible." Argentina took the
same position last Fall.
Emissions trading and the Clean Development Mechanism, established under the Kyoto
Protocol, represent immense opportunity for the private sector and particularly for American
clean technology firms. In a sign of international business interest in emissions trading, in
April, Japan and Russia reached an agreement to begin feasibility studies on reducing
emissions at 20 power plants in Russia to offset Japanese emissions. In addition, in May, the
International Petroleum Exchange in London announced its intention to begin developing an
emissions trading system and Canada began a pilot greenhouse gas emissions trading system.
Parties to the Framework Convention on Climate Change met in Bonn, Germany from June
1-12, at the only planning meeting to prepare for the next Conference of the Parties to be
held November 2-13 in Buenos Aires, Argentina. The Bonn meeting considered a number of
items that stemmed from the Protocol and related Kyoto decisions, including: international
emissions trading, joint implementation, the Clean Development Mechanism and carbon
sinks.
4
Energy Star Building Label. On April 20, the Administration launched the Energy Star Building
Label Program, a market-driven, voluntary partnership to reduce energy consumption by 30%,
reducing the emissions that cause global climate change and saving money from lower energy costs.
Key charter members include the Empire State Building, the World Trade Center and the Sears
Tower in Chicago.
Solar Roof Financing. On Thursday, June 25, a new private sector partnership to provide long-
term, low-cost financing for solar energy systems was announced. The announcement comes one
year after the President launched the Million Solar Roofs Initiative with a goal of placing solar
energy systems on 1 million U.S. roofs by 2010. Under the partnership between General Motors
Acceptance Corporation and the Solar Energy Industries Association, financing for solar systems will
be made available at the same rate as standard home mortgages, rather than at the much higher rates
that are typically charged.
A year after the President's announcement, the Department of Energy has received commitments for
over half a million solar roofs. Meeting the goal of 1 million solar roofs will help reduce carbon
emissions equivalent to the annual emissions from 850,000 cars; create approximately 70,000 high-
tech jobs; and increase domestic production of solar technologies, helping reduce production prices
and keeping the U.S. solar energy industry competitive in the $1.5 billion solar global market.
Industry Consultations
On October 22, 1997, the President announced a plan to begin addressing the challenge of climate
change, A major component of the President's plan'is working with key industries to encourage
them to prepare voluntary action plans to reduce greenhouse gases and to work with the government
to identify and remove barriers to energy efficiency. Consistent with the President's call, White
House staff are consulting leading companies from several key industries to start a dialogue on
voluntary emissions reductions.
CURRENTLY
Last week, senior White House staff met with senior executives of the aluminum industry and the
public power and rural electricity co-ops and this week with CEOs from the steel industry. Over the
next couple of months, White House staff will be meeting with other key industries to advance
similar dialogues on voluntary emissions reduction strategies.
Industry Support for ACTION
The support among business for taking action to meet the challenge of climate change is growing.
In April, the new Pew Center on Climate Change, with $5 million from Pew Charitable
Trusts, launched a campaign to build support for action on climate change. The Center ran
ads in The Wall Street Journal, The Washington Post, and The New York Times that featured
a joint statement by 13 major companies that said, "We believe we must address one of the
major challenges of the 21st Century: responding to global climate change while maintaining
economic growth." The companies, members of the Business Environmental Leadership
Council, are: Boeing, Lockheed-Martin, Toyota, Maytag, Whirlpool, United Technologies,
3M, British Petroleum, Sun Oil. American Electric Power, U.S. Generating Co., Enron and
2
White House Update on Global Climate Change
July 16, 1998
This is the first of a series of White House updates on climate change. Attached to this e-mail is a
four-page fact sheet that outlines the science, potential impacts of climate change and the
President's plan to address the challenge of climate change.
Climate Change & Weather
A study published in the science journal Nature on April 23 found that the 20th century has been the
warmest century in 600 years, the 1990s have been the warmest decade, 1997 has been the single
warmest year.
The Hottest June on Record. Earlier this week, the Vice President along with the National
Oceanic and Atmospheric Administration (NOAA), announced new data showing that last month
was the hottest June on record and that the additional heat in the climate system is leading to more
extreme weather of all kinds -- like the fires in Florida, the drought in Texas and the flooding in the
Northeast.
Record Temperatures January through May. The Vice President's announcement this week
follows a report from NOAA that each of the first five months of this year, January through May, set
new records for global temperature. Thomas Karl, senior scientist at the National Climatic Data
Center, said "The data also suggest that the year's El Nino may have been made worse by global
warming. In any event, the extreme events brought on by El Nino's warmer, wetter weather
provides a taste of what we can expect from a warmer, wetter world under global warming." As
Vice President Gore stated "this winter's El Nino is a window on the future -- a future that could
include more flood, drought, disease and forest fires if we don't act today."
Recent Energy Efficiency & Renewables Initiatives
PATH. On May 4, the President launched the Partnership for Advancing Technology in Housing
(PATH) in Los Angeles. PATH is an ambitious partnership between the building industry and
government to accelerate the deployment and development of advanced technologies that will make
houses far more energy efficient as well as more affordable, durable and of higher quality. As the
President said, PATH "will be the most ambitious effort ever to help private homebuilders and
homeowners make cost-effective, energy saving decisions that will pay big dividends throughout the
21st Century."
PATH aims to build homes that use 50 percent less energy within a decade and to retrofit 15
million existing homes to make them 30 percent more energy efficient.
Residential homes account for 20 percent of all U.S. greenhouse gas emissions. If PATH
goals are met, the housing sector will reduce greenhouse gas emissions by around 24 million
metric tons of carbon in 2010, at a savings of some $11 billion to consumers.
1
Energy Star Building Label. On April 20, the Administration launched the Energy Star Building
Label Program, a market-driven, voluntary partnership to reduce energy consumption by 30%,
reducing the emissions that cause global climate change and saving money from lower energy costs.
Key charter members include the Empire State Building, the World Trade Center and the Sears
Tower in Chicago.
Solar Roof Financing. On Thursday, June 25, a new private sector partnership to provide long-
term, low-cost financing for solar energy systems was announced. The announcement comes one
year after the President launched the Million Solar Roofs Initiative -- with a goal of placing solar
energy systems on 1 million U.S. roofs by 2010. Under the partnership between General Motors
Acceptance Corporation and the Solar Energy Industries Association, financing for solar systems will
be made available at the same rate as standard home mortgages, rather than at the much higher rates
that are typically charged.
A year after the President's announcement, the Department of Energy has received commitments for
over half a million solar roofs. Meeting the goal of 1 million solar roofs will help reduce carbon
emissions equivalent to the annual emissions from 850,000 cars; create approximately 70,000 high-
tech jobs; and increase domestic production of solar technologies, helping reduce production prices
and keeping the U.S. solar energy industry competitive in the $1.5 billion solar global market.
Industry Consultations
On October 22, 1997, the President announced a plan to begin addressing the challenge of climate
change. A major component of the President's plan is working with key industries to encourage
them to prepare voluntary action plans to reduce greenhouse gases and to work with the government
to identify and remove barriers to energy efficiency. Consistent with the President's call, White
House staff are consulting leading companies from several key industries to start a dialogue on
voluntary emissions reductions.
Last week, senior White House staff met with senior executives of the aluminum industry and the
public power and rural electricity co-ops and this week with CEOs from the steel industry. Over the
next couple of months, White House staff will be meeting with other key industries to advance
similar dialogues on voluntary emissions reduction strategies.
Industry Support
The support among business for taking action to meet the challenge of climate change is growing.
In April, the new Pew Center on Climate Change, with $5 million from Pew Charitable
Trusts, launched a campaign to build support for action on climate change. The Center ran
ads in The Wall Street Journal, The Washington Post, and The New York Times that featured
a joint statement by 13 major companies that said, "We believe we must address one of the
major challenges of the 21st Century: responding to global climate change while maintaining
economic growth." The companies, members of the Business Environmental Leadership
Council, are: Boeing, Lockheed-Martin, Toyota, Maytag, Whirlpool, United Technologies,
3M, British Petroleum, Sun Oil. American Electric Power, U.S. Generating Co., Enron and
2
Intercontinental Energy.
Also in April, Shell Oil quit the Global Climate Coalition, an oil industry coalition opposed to
the Kyoto Protocol, because the group's agenda conflicted with Shell's commitment to help
reduce carbon dioxide emissions, according to a company spokesman. A report released by
Shell stated that "Shell companies are committed to play their part in making the savings in
energy needed."
Last month the American Public Power Association approved a new policy on global climate
change acknowledging utilities' responsibility to work to reduce greenhouse gas emissions.
"Investments at home in our local communities, in tandem with developing mitigation
projects in other countries, will help the United States reduce domestically its greenhouse gas
emissions in a way that will benefit our national economy and improve our local
environment."
On July 14, United Technologies Corporation, a $25 company that produces high-tech
systems including Otis elevators, Carrier air conditioners, Pratt & Whitney engines and
Sikorsky helicopters, announced a plan to reduce energy consumption by 25% by 2007, in an
effort to combat global climate change. George David, United Technologies Corporation
Chairman and CEO, stated: "we, along with many others, recognize the substantial
ambiguities and open questions in research on global climate change, but we believe also that
the prudent course is to work to reduce greenhouse gas emissions."
Congressional Activity
There has been recent action on the three appropriations bills that contain funding for the
R&D portion of the President's Climate Change Technology Initiative. This initiative
involves historically bi-partisan energy efficiency and renewable energy programs that help
decrease our dependence on foreign oil, improve air quality, decrease energy costs for
consumers and business, increase our economic competitiveness and reduce greenhouse gas
emissions. The VA-HUD bill, as reported by the House Appropriations Committee includes
an anti-environmental rider stating that no funds can be used by the Environmental Protection
Agency (EPA) to: "develop, propose or issue" rules, regulations, decrees, or orders for the
purpose of implementation of or in contemplation of implementation of the Kyoto Protocol."
Moreover, the report language in the bill would seek to impose a gag rule on the
Administration, stating that "[EPA] and the CEQ (Council on Environmental Quality) are
thus directed to refrain from conducting educational outreach or informational seminars on
policies underlying the Kyoto Protocol until or unless the Protocol is ratified by the Senate."
The Appropriations Committees in the House and Senate have cut all of the President's
requested funding increases for energy efficiency and renewable energy programs. On the
Energy and Water bill, the Senate accepted a floor amendment sponsored by Senator Jeffords
to add back $70 million of the $100 million for renewable energy that had been cut in the
Appropriations Committee.
3
Diplomatic Activity
During the President's trip to China, he raised the issue of global warming on numerous
occasions. In his speech at Beijing University, the President departed from his prepared text
and made a strong appeal to the students to lead the charge on this issue: "But I will say this
again your generation must do more about this. This is a huge challenge for you, for the
American people and for the future of the world."
At the G8 meeting in Birmingham, England in May, the Eight countries agreed that
industrialized countries should lead in the effort to combat global climate change, but that all
countries should participate in the global regime. The Eight agreed that the remaining steps
needed to ratify Kyoto included gaining broader participation from developing nations. The
Eight pledged "to work as a group with developing nations to secure participation and
commitments from all nations" and to develop rules for market-based emissions trading and
other flexibility mechanisms.
At the Summit of the Americas in Santiago, Chile in April, President Clinton and President
Frei of Chile agreed "that developing countries should participate meaningfully in efforts to
address climate change, taking on emissions targets whenever possible." Argentina took the
same position last Fall.
Emissions trading and the Clean Development Mechanism, established under the Kyoto
Protocol, represent immense opportunity for the private sector and particularly for American
clean technology firms. In a sign of international business interest in emissions trading, in
April, Japan and Russia reached an agreement to begin feasibility studies on reducing
emissions at 20 power plants in Russia to offset Japanese emissions. In addition, in May, the
International Petroleum Exchange in London announced its intention to begin developing an
emissions trading system and Canada began a pilot greenhouse gas emissions trading system.
Parties to the Framework Convention on Climate Change met in Bonn, Germany from June
1-12, at the only planning meeting to prepare for the next Conference of the Parties to be
held November 2-13 in Buenos Aires, Argentina. The Bonn meeting considered a number of
items that stemmed from the Protocol and related Kyoto decisions, including: international
emissions trading, joint implementation, the Clean Development Mechanism and carbon
sinks.
4
BI-WEEKL.629
Page 1
STEA
White House Update on Global Climate Change
July §, 1998
13,
This is the first of a series of White House updates on climate change. Attached to this e-mail is
a four-page fact sheet that outlines the science, potential impacts of climate change and the
President's plan to address the challenge of climate change.
NOT accurate.
Climate Change & Weather
get Rosena to exit.
A study published in the science journal Nature on April 23 found that the 20th century has been
the warmest century in 600 years, the 1990s have been the warmest decade, 1997 has been the
single warmest year
Earlier this month the Vice President along with the National Oceanic and Atmospheric
Administration, announced new data showing record temperatures in each of the first five
months of this year. Thomas Karl, senior scientist at the National Climatic Data Center, said
"The data also suggest that the year's El Nino may have been made worse by global warming. In
any event, the extreme events brought on by El Nino's warmer, wetter weather provides a taste of
what we can expect from a warmer, wetter world under global warming." As Vice President
Gore stated "this winter's El Nino is a window on the future a future that could include more
flood, drought, disease and forest fires if we don't act today."
- Recent Energy Efficiency & Renewables Initiatives
PATH. On May 4, the President launched the Partnership for Advancing Technology in
Housing (PATH) in Los Angeles. PATH is an ambitious partnership between the building
industry and government to accelerate the deployment and development of advanced
technologies that will make houses far more energy efficient as well as more affordable, durable
and of higher quality. As the President said, PATH "will be the most ambitious effort ever to
help private homebuilders and homeowners make cost-effective, energy saving decisions that
will pay big dividends throughout the 21st Century."
PATH aims to build homes that use 50 percent less energy within a decade and to retrofit
15 million existing homes to make them 30 percent more energy efficient.
Residential homes account for 20 percent of all U.S. greenhouse gas emissions. If PATH
goals are met, the housing sector will reduce greenhouse gas emissions by around 24
million metric tons of carbon in 2010, at a savings of some $11 billion to consumers.
Energy Star Building Label. On April 20, the Administration launched the Energy Star
Building Label Program, a market-driven, voluntary partnership to reduce energy consumption
by 30%, reducing the emissions that cause global climate change and saving money from lower
energy costs. Key charter members include the Empire State Building, the World Trade Center
and the Sears Tower in Chicago.
Add Industry consultations
BI-WEEKL.629
Page 2
Solar Roof Financing. On Thursday, June 25, a new private sector partnership to provide
long-term, low-cost financing for solar energy systems was announced. The announcement
comes one year after the President launched the Million Solar Roofs Initiative -- with a goal of
placing solar energy systems on 1 million U.S. roofs by 2010. Under the partnership between
General Motors Acceptance Corporation and the Solar Energy Industries Association, financing
for solar systems will be made available at the same rate as standard home mortgages, rather than
at the much higher rates that are typically charged.
A year after the President's announcement, the Department of Energy has received commitments
for over half a million solar roofs. Meeting the goal of 1 million solar roofs will help reduce
carbon emissions equivalent to the annual emissions from 850,000 cars; create approximately
70,000 high-tech jobs; and increase domestic production of solar technologies, helping reduce
production prices and keeping the U.S. solar energy industry competitive in the $1.5 billion solar
global market.
Industry Support
The support among business for taking action to meet the challenge of climate change is
growing.
In April, the new Pew Center on Climate Change, with $5 million from Pew Charitable
Trusts, launched a campaign to build support for action on climate change. The Center
ran ads in The Wall Street Journal, The Washington Post, and The New York Times that
featured a joint statement by 13 major companies that said, "We believe we must address
one of the major challenges of the 21st Century: responding to global climate change
while maintaining economic growth." The companies, members of the Business
Environmental Leadership Council, are: Boeing, Lockheed-Martin, Toyota, Maytag,
Whirlpool, United Technologies, 3M, British Petroleum, Sun Oil. American Electric
Power, U.S. Generating Co., Enron and Intercontinental Energy.
Also in April, Shell Oil quit the Global Climate Coalition, an oil industry coalition
opposed to the Kyoto Protocol, because the group's agenda conflicted with Shell's
commitment to help reduce carbon dioxide emissions, according to a company
spokesman. A report released by Shell stated that "Shell companies are committed to
play their part in making the savings in energy needed."
Last month the American Public Power Association approved a new policy on global
climate change acknowledging utilities' responsibility to work to reduce greenhouse gas
emissions. "Investments at home in our local communities, in tandem with developing
mitigation projects in other countries, will help the United States reduce domestically its
greenhouse gas emissions in a way that will benefit our national economy and improve
our local environment."
Congressional Activity
spazing
BI-WEEKL.629
Page 3
There has been recent action on the three appropriations bills that contain funding for the R&D
portion of the President's Climate Change Technology Initiative. This initiative involves
historically bi-partisan energy efficiency and renewable energy programs that help decrease our
dependence on foreign oil, improve air quality, decrease energy costs for consumers and
business, increase our economic competitiveness and reduce greenhouse gas emissions. The
VA-HUD bill, as reported by the Appropriations Committee includes an anti-environmental rider
-that states that no funds can be used by the Environmental Protection Agency (EPA) or the
Council on Environmental Quality (CEQ) to: "develop, propose or issue" rules, regulations,
decrees, or orders for the purpose of implementation of or in contemplation of implementation of
the Kyoto Protocol."
E thank bill lenguage only hits EPA- check
In addition, the report language in the bill would seek to impose a gag rule on the Administration, v/
stating that "[EPA] and the CEQ are thus directed to refrain from conducting educational
outreach or informational seminars on policies underlying the Kyoto Protocol until or unless the
Julie.]
Protocol is ratified by the Senate."
Appropriations Committee)in the House and Senate have cut all of the President's requested
funding increases for energy efficiency and renewable energy programs. On the Energy and
Water bill, the Senate accepted a floor amendment sponsored by Senator Jeffords to add back
The
$70 million of the $100 million for renewable energy that had been cut in the Appropriations
Committee.
Diplomatic Activity
on mmerons occusions.
During the President's trip to China, he raised the issue of global warming throughout In
his speech at Beijing University, the President urged students to lead the charge on this
issue: saying "But I will say this again your generation must do more about this. This is
a huge challenge for you, for the American people and for the future of the world."
At the G8 meeting in Birmingham, England in May, the Eight countries agreed that
industrialized countries should lead in the effort to combat global climate change, but that
all countries should participate in the global regime. The Eight agreed that the remaining
steps needed to ratify Kyoto included gaining broader participation from developing
nations. The Eight pledged "to work as a group with developing nations to secure
participation and commitments from all nations" and to develop rules for market-based
emissions trading and other flexiblity mechanisms.
At the Summit of the Americas in Santiago, Chile in April, President Clinton and
President Frei of Chile agreed "that developing countries should participate meaningfully
in efforts to address climaté change, taking on emissions targets whenever possible."
Argentina took the same position last Fall.
Emissions trading and the Clean Development Mechanism, established under the Kyoto
Protocol, represent immense opportunity for the private sector and particularly for
departed trom his propared text + made
L
strong 46621 to the
BI-WEEKL.629
Page 4
American clean technology firms. In a sign of international business interest in emissions
trading, in April, Japan and Russia reached an agreement to begin feasibility studies on
reducing emissions at 20 power plants in Russia to offset Japanese emissions. In
addition, in May, the International Petroleum Exchange in London announced its
intention to begin developing an emissions trading system and Canada began a pilot
greenhouse gas emissions trading system.
Parties to the Framework Convention on Climate Change met in Bonn, Germany from
June 1-12, at the only planning meeting to prepare for the next Conference of the Parties
to be held November 2-13 in Buenos Aires, Argentina. The Bonn meeting considered a
number of items that stemmed from the Protocol and related Kyoto decisions, including:
international emissions trading, joint implementation, the Clean Development
Mechanism and carbon sinks.
07/06/98 MON 15:22 FAX 2024566474
CEQ
1
002
TO: Martha Wofford
FROM: Timothy Parr
RE: Tom Karl Quotes
"All these different observing systems confirm the same story: The temperatures we are seeing in
1998 are unprecedented in our observing history."
- Tom Karl
CBS Evening News 6/8/98
"Every month so far in 1998 we've broken an all-time record for global average temperature.
This is just unprecedented."
-Tom Karl
NBC Nightly News 6/19/98
"Increased precipitation averaged across the US is three inches. This may not sound like much,
but is equivalent to about half the annual discharge of water that drains out of the Mississippi
River every year."
- Tom Karl
NBC Nightly News 6/19/98
07/09/98 01:20
NO.339 P002/003
UNITED STATES DEPARTMENT OF
COMMERCE
NATIONAL
OCEANIC AND
ATMOSPHERIC
ADMINISTRATION
NEWS
WASHINGTON, D.C. 20230
NOAA 98-15
CONTACT: Patricia Viets, NOAA
FOR IMMEDIATE RELEASE
(301) 457-5005
3/9/98
Stephanie Kenitzer, NOAA
(301) 763-8000, ext. 7007
JANUARY AND FEBRUARY WARMEST AND WETTEST ON RECORD,
NOAA REPORTS
The first two months of 1998 were the warmest and wettest in the 104-year record of
temperatures and precipitation measurements for the contiguous 48 states, according to
preliminary data compiled by the Commerce Department's National Oceanic and
Atmospheric Administration.
"During the period January-February the national average temperature was 37.5
degrees Fahrenheit compared with a normal of 32.1. The previous record was 37.0 in 1990.
For precipitation, 6.01 inches fell, compared with a normal of 4.05. The previous record was
5.7 inches in 1979," said William Brown of NOAA's National Climatic Data Center.
For the winter (December-February) as a whole, however, temperatures and
precipitation were not as extreme. This past winter was the second warmest on record and
the seventh wettest. The normal national average temperature for the winter months of
December, January and February is 32.3 degrees F. This year's figure is 36.4 degrees F.
The record is 36.6 set in 1991-1992. For the three-month period, the normal precipitation
value for the country is 6.35 inches. This year's figure is 7.96 inches, compared with 8.5
inches in 1932.
NOAA reports that California and North Dakota had their wettest February on record.
Florida, Maryland, Nevada, Rhode Island and Virginia had their second wettest February
since 1895. The warmest February on record took place in much of the upper Midwest and
parts of the East, including Minnesota, Wisconsin, Illinois, Michigan, Ohio, Pennsylvania and
Connecticut.
"These are the patterns one would typically expect during a strong El Niño event,"
said Ants Leetmaa, director of NOAA's Climate Prediction Center in Camp Springs, Md.
(more)
07/09/98 01:20
NO.339 P003/003
(2)
"With the newest figures, the long-term trend of increasing temperatures and
precipitation in the United States continues," said Tom Karl, senior scientist at NOAA's
National Climatic Data Center in Asheville, N.C. "These record-breaking statistics are
generally consistent with both a strong El Niño and climate model projections of a continuing
trend toward a warmer and wetter world as greenhouse gases continue to increase."
The temperature and precipitation patterns that have dominated much of the winter
months are expected to continue through March and April, according to NOAA's climate
predictions. In the summer, at least slightly warmer than normal conditions are expected
across Southern California, the southwest and much of the East Coast. There are no strong
indications for either above or below normal precipitation across the country. El Niño
conditions in the tropical Pacific will gradually diminish through the summer. Ocean
temperatures in this region are predicted to be near normal later in the year.
The next monthly El Niño advisory from the Climate Prediction Center will be available
on Tuesday, March 10, on the Internet at http://nic.fb4.noaa.gov. Click on El Niño.
###
Editors' Notes:
Statistics about the past months, compiled by NOAA's National Climatic Data Center, are
available on the center's World Wide Web site at: http://www.ncdc.noaa.gov. Click onto
http://www.ncdc.noaa.gov/ol/climate/warmest.html for "What's Hot."
A map of individual state rankings is available on the World Wide Web from NOAA's Climate
Prediction Center:
February Precipitation
Rankingshtp://nic.fb4.noaa.gov/products/analysis_monitoring/regional_monitoring
/1mpranks.gif
February Temperatures Rankings
http://nic.fb4.noaa.gov/products/analysis_monitoring/regional_monitoring/1mtrank
s.gif
Dec - Feb Historical Precipitation Rankings
http://nic.fb4.noaa.gov/products/analysis_monitoring/regional_monitoring/3mprank
s.gif
Dec - Feb. Historical Temperature Rankings
http://nic.fb4.noaa.gov/products/analysis_monitoring/regional_monitoring/3mtrank
s.gif
###
NO.339 P001/003
07/09/98 01:20
I 511 NATIONAL NORR CCE UND
FAX
of
OFFICE OF PUBLIC & CONSTITUENT AFFAIRS
NATIONAL OCEANIC & ATMOSPHERIC ADMINISTRATION
U.S. DEPARTMENT OF COMMERCE
WASHINGTON, D.C.
FROM:
Janne Kanlutan
PHONE:
202/482-6090 (voice)
202/482-3154 (fax)
TO: months Wofford
AT:
395-2342
COMMENTS: attached per
your request.
PAGE 1 OF
-MIAMI A July
White House Update on Global Climate Change
- TEXAS AUG
July 6, 1998
This is the first of a series of White House updates on climate change. Attached to this e-mail is a
four-page fact sheet that outlines the science, potential impacts of climate change and the President's
plan to address the challenge of climate change.
482- 6090
Climate Change & Weather
A study published in the science journal Nature on April 23 found that the 20th century has been the
warmest century in 600 years, the 1990s have been the warmest decade, 1997 has been the single
warmest year.
THIS
Earlier this month the Vice President along with the National Oceanic and Atmospheric
Administration, announced new data showing record temperatures in each of the first five months of
this year. Thomas Karl, senior scientist at the National Climatic Data Center, said "The data also
suggest that the year's El Nino may have been made worse by global warming. In any event, the
TOMASTIK
extreme events brought on by El Nino's warmer, wetter weather provides a taste of what we can
expect from a warmer, wetter world under global warming." As Vice President Gore stated "this
winter's El Nino is a window on the future a future that could include more flood, drought,
SIGNATURE
disease and forest fires if we don't act today."
Recent Energy Efficiency & Renewables Initiatives
PATH. On May 4, the President launched the Partnership for Advancing Technology in Housing
(PATH) in Los Angeles. PATH is an ambitious partnership between the building industry and
government to accelerate the deployment and development of advanced technologies that will make
LAND
houses far more energy efficient as well as more affordable, durable and of higher quality. As the
President said, PATH "will be the most ambitious effort ever to help private homebuilders and
homeowners make cost-effective, energy saving decisions that will pay big dividends throughout the
21st Century."
PATH aims to build homes that use 50 percent less energy within a decade and to retrofit 15
million existing homes to make them 30 percent more energy efficient.
Residential homes account for 20 percent of all U.S. greenhouse gas emissions. If PATH
goals are met, the housing sector will reduce greenhouse gas emissions by around 24 million
metric tons of carbon in 2010, at a savings of some $11 billion to consumers.
Energy Star Building Label. On April 20, the Administration launched the Energy Star Building
Label Program, a market-driven, voluntary partnership to reduce energy consumption by 30%,
reducing the emissions that cause global climate change and saving money from lower energy costs.
Key charter members include the Empire State Building, the World Trade Center and the Sears
Tower in Chicago.
1
JUL-07-1998 10:01
P.02/02
foreign oil, improve air quality, decrease energy costs for consumers and business, increase Our
economic competitiveness and reduce greenhouse gas emissions. The VA-HUD bill. as reported by
the Appropriations Committee includes an anti-environmental rider that states that no funds can be
used by the Environmental Protection Agency (EPA) or the Council on Environmental Quality
(CEQ) to: "develop, propose or issue" rules, regulations. decrees, or orders for the purpose of
implementation of or in contemplation of implementation of the Kyoto Protocol."
In addition, the report language in the bill would seek to impose a gag rule on the Administration.
stating that "[EPA] and the CEQ are thus directed to refrain from conducting educational outreach
or informational seminars on policies underlying the Kyoto Protocol until or unless the Protocol is
ratified by the Senate."
Appropriations Committee in the House and Senate have cut all of the President's requested funding
increases for energy efficiency and renewable energy programs. On the Energy and Water bill, the
Senate accepted a floor amendment sponsored by Senator Jeffords to add back $70 million of the
$100 million for renewable energy that had been cut in the Appropriations Committee.
that the remaining
Incept
develop
&
make
trading
Diplomatic Activity
steps
Good
developing
and
3
kyoto
frauds
rules
gaing
enessor and Physician
At the G8 meeting in Birmingham, England last month, the Eight countries agreed that
industrialized countries should lead in the effort to combat global climate change. but that all
countries should participate in the global regime. The Eight agreed to work as a group with
developing nations to secure participation and commitments from all nations"
At the Summit of the Americas in Santiago, Chile in April, President Clinton and President
Frei of Chile agreed "that developing countries should participate meaningfully in efforts to
address climate change, taking on emissions targets whenever possible." Argentina took the
same position last Fall.
Emissions trading and the Clean Development Mechanism. established under the Kyoto
Protocol. represent immense opportunity for the private sector and particularly for American
clean technology firms. In a sign of international business interest in emissions trading, in
April, Japan and Russia reached an agreement to begin feasibility studies on reducing
emissions at 20 power plants in Russia to offset Japanese emissions. In addition, last month,
the International Petroleum Exchange in London announced its intention to begin developing
system. an emissions trading system and Canada began a pilot greenhouse gas emissions trading
to prepare for
Parties to the Framework Convention on Climate Change met in Bonn. Germany from June
1-12. at the only planning meeting/preparatory to the next Conference of the Parties to be
held November 2-13 in Buenos Aires. Argentina. In an effort to prepare for the Buenos
Aires meeting. the Bonn meeting considered a number of items that stemmed from the
Protocol and related Kyoto decisions, including: international emissions trading, joint
implementation, the Clean Development Mechanism and carbon sinks.
3
TOTAL P.02
JUL-07-1998 10:01
P.01/02
NATIONAL SECURITY COUNCIL
FAX. COVER SHEET
NATIONAL
From:
William Antholis
SECURITY
To:
Martha Wofford
COUNCIL
Agency: WHCCTF
Fax Number: 52342
Date/Time:
17th & Penn, N.W.
Washington, D.C.
No. of pages to follow:
20504
Message:
martha - you might also include a bullet about the china
Did you get a complete,
clear transmission? If not,
trip, including the Potus mentioning climate in the
please call:
Beijing University speech, his raising it with Jiang and
Zhu, and his discussing climate change and clean
(202) 456-
energy with enviro NGOs in Guilin.
-- wja
Toan Karl, [tith], said
{Quote about how extraond may
that 15]. The date
White House Update on Global Climate Change
also suggest that this
June 29, 1998
year's El Nino may tax
have been make unrse
by global unammq.
This is the first of a series of White House updates on climate change. Attached to this e-mail is a
[Kax]
four-page fact sheet that outlines the science, potential impacts of climate change and the President's
Quote]
plan to address the challenge of climate change.
In any event, the
extreme # events
Climate Change & Weather
brunght on by E) Nmrls
varmea, welken weather
provides C wanting taste
A study published in the science journal Nature on April 23 found that the 20th century has been the what
warmest century in 600 years, the 1990s have been the warmest decade, 1997 has been the single we can
warmest year. and that it is human activity the release of carbon dioxide and other greenhouse expect from
gases into the atmosphere that is to blame
n the warmer, watter
the
each of
world glubil unter
Earlier this month the Vice President along with National Oceanic and Atmospheric Administration,
Unamma,
announced new data showing record temperatures in the first five months of this year.and global-
warming's potential worsening effect on El Nino. As Vice President Gore stated "this winter's El
Nino gave us a taste of the extreme, erratic weather our children and grandchildren can expect more
of unless we reverse the trend of global warming It is a window on the future a future that could
include more flood, drought, disease and forest fires if we don't act today."
Recent Energy Efficiency & Renewables Initiatives
ing
PATH. On May 4, the President launched the Partnership for Advanced Technology in Housing
(PATH) in Los Angeles. PATH is an ambitious partnership between the building industry and
government to accelerate the deployment and development of advanced technologies that will make
houses far more energy efficient as well as more affordable, durable and of higher quality. As the
President said, PATH "will be the most ambitious effort ever to help private homebuilders and
homeowners make cost-effective, energy saving decisions that will pay big dividends throughout the
21st Century."
PATH aims to build homes that use 50 percent less energy within a decade and to retrofit 15
million existing homes to make them 30 percent more energy efficient.
It PATH goals her
met, that the housing
sector vill
Residential homes account for 20 percent of all U.S. greenhouse gas emissions so increasing reduce
their efficiency will not only save consumers money on their energy bills, but will also
gha by sarond
significantly reduce the greenhouse gases that eause global warming
24 million
metrictions of
carbon in
Energy Star Building Label. On April 20, the Administration launched the Energy Star Building
2010, at
Label Program, a market-driven, voluntary partnership to reduce energy consumption by 30%,
A savings
reducing the emissions that cause global climate change and saving money from lower energy costs
of some
Key charter members include the Empire State Building, the World Trade Center and the Sears
$11 billion
to Gonsumers.
Tower in Chicago.
Solar Roof Financing. On Thursday, June 25, a new private sector partnership to provide long-
1
term, low-cost financing for solar energy systems was announced. The announcement comes one
year after the President launched the Million Solar Roofs Initiative -- with a goal of placing solar
energy systems on 1 million U.S. roofs by 2010. The partnership between General Motors
Acceptance Corporation and the Solar Energy Industries Association) emoves a significant barrier to
the installation of solar energy systems in new and existing homes the availability of long-term,
low-cost financing and will help make the million solar roof goal a reality.
financing for 58/42
systems will available be made
A year after the President's announcement, the Department of Energy has received commitments for
at the
over half a million solar roofs. Meeting the goal of 1 million solar roofs will help reduce carbon
same Rate
emissions equivalent to the annual emissions from 850,000 cars; create approximately 70,000 high-
as
tech jobs; and increase domestic production of solar technologies, helping reduce production prices
and keeping the U.S. solar energy industry competitive in the $1.5 billion solar global market.
Rather
than at the
Industry Support
much higher
rates that
The support among business for taking action to meet the challenge of climate change is growing
are changed typically
Last week the American Public Power Association approved a new policy on global climate
change acknowledging utilities' responsibility to work to reduce greenhouse gas emissions.
3
"Investments at home in our local communities, in tandem with developing mitigation
projects in other countries, will help the United States reduce domestically its greenhouse gas
emissions in a way that will benefit our national economy and improve our local
environment."
In Apr.',
Last month, the Pew Center on Climate Change, with $5 million from Pew Charitable Trusts,
launched a campaign to build support for action on climate change. The Center ran ads in
\
The Wall Street Journal, The Washington Post, and The New York Times that featured a joint
statement by 13 major companies that said, "We believe we must address one of the major
challenges of the 21st Century: responding to global climate change while maintaining
economic growth." The companies, members of the Business Environmental Leadership
Council, are: Boeing, Lockheed-Martin, Toyota, Maytag, Whirlpool, United Technologies,
3M, British Petroleum, Sun Oil. American Electric Power, U.S. Generating Co., Enron and
Intercontinental Energy.
2nd
In April, Shell Oil quit the Global Climate Coalition, an oil industry coalition opposed to the
Z
Kyoto Protocol, because the group's agenda conflicted with Shell's commitment to help
reduce carbon dioxide emissions, according to a company spokesman. A report released by
Shell stated that "Shell companies are committed to play their part in making the savings in
energy needed."
Congressional Activity
This instructive snrolves
There has been recent action on the three appropriations bills that contain funding for the R&D
portion of the President's Climate Change Technology Initiative. historically bi-partisan energy
efficiency and renewable energy programs that help decrease our dependence on foreign oil, improve
air quality, decrease energy costs for consumers and business, increase our economic
2
House
as reported by The
Popr paintions
competitiveness and reduce greenhouse gas emissions. the VA-HUD bill, that funds EPA the Committee,
Council on Environmental Quality, among other Agencies, the House Appropriations Committee
includes
accepted an anti-environmental rider that states that no funds can be used to: "develop, propose or
issue" rules, regulations, decrees, or orders for the purpose of implementation of or in contemplation
of implementation of the Kyoto Protocol."
by EPA or CEQ
In addition, the report language in the bill would seek to impose a gag rule on the Administration,
stating that "[EPA] and the CEQ are thus directed to refrain from conducting educational outreach
or informational seminars on policies underlying the Kyoto Protocol until or unless the Protocol is
ratified by the Senate."
Appropriations Committee in the House and Senate have cut all of the President's requested funding
increases for energy efficiency and renewable energy programs. On the Energy and Water bill, the
Senate accepted a floor amendment sponsored by Senator Jeffords to add back $70 million of the
$100 million for renewable energy that had been cut in the Appropriations Committee.
Diplomatic Activity
countries
G-8
At the G8 meeting in Birmingham, England last month, the Eight agreed that industrialized
countries should lead in the effort to combat global climate change, but that all countries
should participate in the global regime. The Eight agreed "to work as a group with
developing nations to secure participation and commitments from all nations."
At the Summit of the Americas in Santiago, Chile in April, President Clinton and President
Frei of Chile agreed "that developing countries should participate meaningfully in efforts to
address climate change, taking on emissions targets whenever possible." Argentina took the
same position last Fall.
Emissions trading and the Clean Development Mechanism, established under the Kyoto
Protocol, represent immense opportunity for the private sector and particularly for American
clean technology firms. In a sign of international business interest in emissions trading, in
April, Japan and Russia reached an agreement to begin feasibility studies on reducing
emissions at 20 power plants in Russia to offset Japanese emissions. In addition, last month,
the International Petroleum Exchange in London announced its intention to begin developing
an emissions trading system and Canada began a pilot greenhouse gas emissions trading
system.
Parties to the Framework Convention on Climate Change met in Bonn, Germany from June
1-12, at the only planning meeting preparatory to the next Conference of the Parties to be
held November 2-13 in Buenos Aires, Argentina. In an effort to prepare for the Buenos
Aires meeting, the Bonn meeting considered a number of items that stemmed from the
Protocol and related Kyoto decisions, including: international emissions trading, joint
implementation, the Clean Development Mechanism and carbon sinks.
Let B2ll
3
Revrete this
BI-WEEKL.629
Page 1
Elhoo
818-1570
White House Update on Global Climate Change
June 29, 1998
This is the first of a series of White House updates on climate change. Attached to this e-mail is a
four-page fact sheet that outlines the science, potential impacts of climate change and the
President's plan to address the challenge of climate change.
Climate Change & Weather
A study published in the science journal Nature on April 23, found that the 20th century has been
the warmest century in 600 years, the 1990s have been the warmest decade, 1997 has been the
single warmest year and that it is human activity the release of carbon dioxide and other
greenhouse gases into the atmosphere -- that is to blame.
Earlier this month the Vice President along with National Oceanic and Atmospheric
Administration, announced new data showing record temperatures in the first five months of this
year and global warming's potential worsening effect on El Nino.
That
each
Type
was
the set & record etc.
Recent Energy Efficiency & Renewables Initiatives
Quote Tom KLal or other
scientist about how extraord,nary
PATH. On May 4, the President launched the Partnership for Advanced Technology in Housing Also
(PATH) in Los Angeles. PATH is an ambitious partnership between the building industry and
quote CC+ on
government to accelerate the deployment and development of advanced technologies that will
E)
make houses far more energy efficient as well as more affordable, durable and of higher quality.
Nino
of
PATH aims to build homes that use 50 percent less energy within a decade and to retrofit
15 million existing homes to make them 30 percent more energy efficient.
Residential homes account for 20 percent of all U.S. greenhouse gas emissions, so
increasing their efficiency will not only save consumers money on their energy bills, but
will also significantly reduce the greenhouse gases that cause global warming.
Energy Star Building Label. On April 20, the Administration launched the Energy Star
Building Label Program, a market-driven, voluntary partnership to reduce energy consumption by
30%, reducing the emissions that cause global climate change and saving money from lower
energy costs. Key charter members include the Empire State Building, the World Trade Center
and the Sears Tower in Chicago.
Solar Roof Financing. On Thursday, June 25, a new private sector partnership to provide
long-term, low-cost financing for solar energy systems was announced. The announcement
comes one year after the President launched the Million Solar Roofs Initiative -- with a goal of
placing solar energy systems on 1 million U.S. roofs by 2010. The partnership between General
Motors Acceptance Corporation and the Solar Energy Industries Association removes a
X significant barrier to the installation of solar energy systems in new and existing homes and will
Have to explain This. Precisity,
Onelse
BI-WEEKL.629
Page 2
#
help make the million solar roof goal a reality.
A year after the President's announcement, the Department of Energy has received commitments
for over half a million solar roofs. Meeting the goal of 1 million solar roofs will help reduce
carbon emissions equivalent to the annual emissions from 850,000 cars; create approximately
70,000 high-tech jobs; and increase domestic production of solar technologies, helping reduce
production prices and keeping the U.S. solar energy industry competitive in the $1.5 billion solar
global market.
Industry Support
The support among business for taking action to meet the challenge of climate change is growing.
Last week the American Public Power Association approved a new policy on global
climate change acknowledging utilities' responsibility to work to reduce greenhouse gas
emissions. "Investments at home in our local communities, in tandem with developing
mitigation projects in other countries, will help the United States reduce domestically its
greenhouse gas emissions in a way that will benefit our national economy and improve our
local environment."
Last month, the Pew Center on Climate Change, with $5 million from Pew Charitable
Trusts, launched a campaign to build support for action on climate change. The Center
ran ads in The Wall Street Journal, The Washington Post, and The New York Times that
featured a joint statement by 13 major companies that said, "We believe we must address
one of the major challenges of the 21st Century: responding to global climate change
while maintaining economic growth." The companies, members of the Business
Environmental Leadership Council, are: Boeing, Lockheed-Martin, Toyota, Maytag,
Whirlpool, United Technologies, 3M, British Petroleum, Sun Oil. American Electric
Power, U.S. Generating Co., Enron and Intercontinental Energy.
In April, Shell Oil quit the Global Climate Coalition, an oil industry coalition opposed to
the Kyoto Protocol, because the group's agenda conflicted with Shell's commitment to
help reduce carbon dioxide emissions.
Quate
improve energ development efficiency A
Congressional Activity
House & Senate
&
sprin
energy
In a short-sighted fashion, Appropriations Committees have been slashing funds requested by the
President for historically bi-partisan programs that would help decrease our dependence on
foreign oil, improve air quality, decrease energy costs for consumers and business, increase our
economic competitiveness and reduce greenhouse gas emissions. Not only is the funding request
being cut, but at least one of the relevant Appropriations bills also contains restrictive legislative
language. Earlier this month, the Vice President and a dozen Members of Congress denounced
the kind of backdoor attempts to roll back environmental protection that the climate change rider
represents.
The anti-environment rider in the VA, HUD & Independent Agencies bill states that no funds can
These bills
BI-WEEKL. 629
Page 3
be used to: "develop, propose or issue" rules, regulations, decrees, or orders for the purpose of
implementation of or in contemplation of implementation of the Kyoto Protocol." In addition,
the report language in the bill would seek to impose a gag rule on the Administration, stating that
"[EPA] and the CEQ are thus directed to refrain from conducting educational outreach or
informational seminars on policies underlying the Kyoto Protocol until or unless the Protocol is
ratified by the Senate."
Diplomatic Activity
At the G8 meeting in Birmingham, England last month, the world's largest economies
followed the U.S.' lead in agreeing that all countries, including developing nations, should
do their part to battle climate change. knoke
At the Summit of the Americas in Santiago, Chile in April, President Clinton and Chilean
President Frei agreed that developing countries should participate meaningfully on climate
change, taking on emissions targets whenever possible. Argentina took the same position
last Fall. Quate
Emissions trading and a Clean Development Mechanism represent immense opportunity
for the private sector and particularly for American clean technology firms. In a sign of
international business interest in emissions trading, in April, Japan and Russia reached an
agreement to begin feasibility studies on reducing emissions at 20 power plants in Russia
to offset Japanese emissions. In addition, last month, the International Petroleum
Exchange in London announced its intention to begin developing an emissions trading
system and Canada began a pilot greenhouse gas emissions trading system.
Parties to the Framework Convention on Climate Change met in Bonn, Germany from
June 1-12, at the only planning meeting preparatory to the next Conference of the Parties
to be held November 2-13 in Buenos Aires, Argentina. In an effort to prepare for the
Buenos Aires meeting, the Bonn meeting considered a number of items that stemmed from
the Protocol and related Kyoto decisions, including: international emissions trading, joint
implementation, the Clean Development Mechanism and carbon sinks.
Davin ?
WEEKLYTP.622
Page 1
White House Update on Global Climate Change
June 22, 1998
first of a regular serves of
This is the inaugural White House update on climate change, a fact sheet that we will be
distributing twice a month. Attached to this e-mail is a four-page fact sheet that outlines the
science and potential impacts of climate change and the President's plan to address the challenge
of climate change.
Science Nature
mayor
El Nino & Climate Change
Earlier this month the Vice President along with NOAA, [III announced new data showing record
(Two
temperatures in the first five months of this year and global warming's potential worsening effect
thin,
on El Nino. With the recent fires in Mexico and continued coverage of the devastation that El
need
Nino caused in the past year, there has been more discussion in the media of the link between
climate change and the severity of El Nino.
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The Clinton Administration is working in partnership with U.S. industry and consumers to
3
increase energy efficiency in businesses and homes, reducing greenhouse gas emissions and saving
what
need
energy costs. The President launched the Partnership for Advancing Technology in Housing
!
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(PATH) in May, an initiative to partner with the housing industry to build homes that are
mention
affordable, durable and 50% more energy efficient. In addition, EPA launched the Energy Star
the
Building Label Program in April, a voluntary partnership to reduce energy consumption by 30%.
housens
project
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cost
Last week the American Public Power Association approved a new policy on global
climate change acknowledging utilties responsiblity to work to reduce greenhouse gas
emissions. The tone of APPA's statement was positive: "Investments at home in our local
communities, in tandem with developing mitigation projects in other countries, will help
the United States reduce domestically its greenhouse gas emissions in a way that will
benefit our national economy and improve our local environment."
Last month, the Pew Center on Climate Change, with $5 million from Pew Charitable
Trusts, launched a campaign to build support for action on climate change. The Center
ran ads in The Wall Street Journal, The Washington Post, and The New York Times that
featured the logos of some of the major companies that are partnering with them,
a joint
including: Boeing, Lockheed-Martin, Toyota, Maytag, Whirlpool, United Technologies,
Statiment
3M, British Petroleum, Sun Oil. American Electric Power, U.S. Generating Co., Enron
by13 by 13
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WEEKLYTP.622
Page 2
Thet's HaLK backdura themse implementation RIKERS. r
specifically sented mention UP event]
In April, Shell Oil quit the Global Climate Coalition, an oil industry coalition opposed to
the Kyoto Protocol, because the group's agenda conflicted with Shell's commitment to
help reduce carbon dioxide emissions.
Congressional Activity
Congressional interest in climate change remains strong, with both the House and Senate
holding multiple hearings.
Despite formation of a new Renewables and Efficiency Caucus in the Senate, and a letter
with over 40 Senators supporting increased spending on renewables, in the first round of
Congressional action on appropriations, the President's request for increased funding for
renewables and other activities to ensure energy security provide clean air, save
consumers money and reduce greenhouse gas emisssion, is being cut.
Diplomatic Progress Activity
Work continues on achieving meaningful participation by developing nations and establishing the
rules and guidelines for the free market mechanisms an emissions trading system and a Clean
Development Mechanism that the U.S. negotiated into the Kyoto Protocol.
Bonn
At the G8 meeting in Birmingham, England last month, the world's largest economies
followed the U.S.' lead in agreeing that all countries, including developing nations, should
do their part to battle climate change.
At the Summit of the Americas in Santiago, Chile in April, President Clinton and Chilean
President Frei agreed that developing countries should participate meaningfully on climate
change, taking on emissions targets whenever possible. Argentina took the same position
last Fall.
Emissions trading and a Clean Development Mechanism represent immense opportunity
for the private sector and particularly for American clean technology firms. In a sign of
international business interest in emissions trading, in April, Japan and Russia reached an
agreement to begin feasibility studies on reducing emissions at 20 power plants in Russia
to offset Japanese emissions. In addition, last month, the International Petroleum
Exchange in London announced its intention to begin developing an emissions trading
system and Canada has begun a pilot greenhouse gas emissions trading system.
Purties to the FILL
tan June 1-12
The international community met in Bonn, Germany earlier this month to follow up on
elements of the Kyoto Protocol, including market mechanisms, laying the groundwork for
the upcoming Conference of the Parties at Buenos Aires, Argentina in November.
at the only please,
the next (& Puties, to
meeting proparatory to
The Bonn meetzong [ ],
be held NWZ-1311 B-A-.
White House Update on Global Climate Change
June 22, 1998
This is the inaugural White House update on climate change, a fact sheet that we will be distributing
twice a month. Attached to this e-mail is a four-page fact sheet that outlines the science and potential
NATURE
impacts of climate change and the President's plan to address the challenge of climate change.
El Nino & Climate Change
Earlier this month the Vice President along with NOAA, announced new data showing record
temperatures in the first five months of this year and global warming's potential worsening effect on
El Nino. With the recent fires in Mexico and continued coverage of the devastation that El Nino
caused in the past yearthere has been more discussion in the media of the link between climate
change and the severity of El Nino.
Recent Energy Efficiency & Renewables Initiatives
The Clinton Administration is working in partnership with U.S. industry and consumers to increase
energy efficiency in businesses and homes, reducing greenhouse gas emissions and saving energy
costs. The President launched the Partnership for Advancing Technology in Housing (PATH) in
May, an initiative to partner with the housing industry to build homes that are affordable, durable and
50 % more energy efficient. In addition, EPA launched the Energy Star Building Label Program in
April, a voluntary partnership to reduce energy consumption by 30%.
On Thursday, June 25, the first-year anniversary of the launch of the President's Million Solar Roofs
NEXT
initiative, senior administration officials will participate in an event announcing a breakthrough in
achieving more affordable financing of solar installations. Currently, the interest rate on a loan to
pay for the installation of solar panels in a new or retrofitted home is nearly double that of a normal
mortgage. On Thursday, GMAC, one of the country's leading lenders, will sign a Memorandum of
Understanding with the Solar Energy Association, agreeing to work together to make photovoltaic
and solar -powered housing more affordable. GMAC has agreed to offer loans for people buying
homes with solar installations or retrofitting their homes with solar at the prime mortgage rate or
below.
The event will take place at the ground breaking for an energy efficient 18-unit moderate- to low-
income housing project with solar generated heat and electricity in an empowerment zone in
Southwest Philadelphia.
Economic Front
Last week, the Global Climate Coalition released a study by the Wharton Econometrics Forecasting
Association (WEFA), that asserted the Kyoto Protocol would cost American households $2,700
annually and predicted how many jobs and how much income each state would lose because of the
treaty. WEFA, in developing their economic model, ignored all of the flexibility mechanisms that
were negotiated into the Kyoto Protocol, including emissions trading and a Clean Development
Mechansim. The study did not gain any national press coverage largely because it was funded by the
Global Climate Coalition and because it modeled a scenario significantly different(than the Kyoto
Protocol.
from ?
1
We plan to release our economic analysis next month, which will provide the statistical support for
CEA
chair
Dr. Janet Yellen's, Chair of the Council of Econòmic Advisers testimony on the economic impacts
of the President's climate change plan. Dr. Yellen testimony conveyed that the impact on the
economy would be modest and that the risks of not acting far outweighed the costs. (of acting - )
Industry Support
The support among big business for taking action to meet the challenge of climate change appears to
be growing.
A
Last week the American Public Power Company released a good statement on climate
change
Last month, the Pew Center on Climate Change, with $5 million from Pew Charitable Trusts,
launched a campaign to build support for action on climate change. The Center ran ads in
The Wall Street Journal, The Washington Post, and The New York Times that featured the
logos of some of the major companies that are partnering with them, including: Boeing,
Lockheed-Martin, Toyota, Maytag, Whirlpool, United Technologies, 3M, British Petroleum,
Sun Oil. American Electric Power, U.S. Generating Co., Enron and Intercontinental Energy.
In April, Shell Oil quit the Global Climate Coalition, an oil industry coalition opposed to the
Kyoto Protocol, because the group's agenda conflicted with Shell's commitment to help
reduce carbon dioxide emissions.
Congressional Activity
Congressional interest in climate change remains strong, with both the House and Senate
holding multiple hearings.
Despite formation of a new Renewables and Efficiency Caucus in the Senate, and a letter
with over 40 Senators supporting increased spending on renewables, in the first round of
Congressional action on appropriations, the President' request for increased funding for
renewables and other activities to ensure energy security, provide clean an, save consumers
money and reduce greenhouse gas emisssion is being cut
&
Diplomatic Progress
Work continues on achieving meaningful participation by developing nations and establishing the
rules and guidelines for the free market mechanisms an emissions trading system and a Clean
Development Mechanism - that the U.S. negotiated into the Kyoto Protocol.
At the G8 meeting in Birmingham, England last month, the world's largest economies
followed the U.S.' lead in agreeing that all countries, including developing nations, should do
their part to battle climate change.
At the Summit of the Americas in Santiago, Chile in April, President Clinton and Chilean
President Frei agreed that developing countries should participate meaningfully on climate
change, taking on emissions targets whenever possible. Argentina took the same position last
2
Fall.
INTC Bus. INTEREST IN EMISSIONS TRADING
MCB IN EARLY STATES IF RESPONSES
Emissions trading and a Clean Development Mechanism represent immense opportunity for
the private sector and particularly for American clean technology firms. Other countries are
beginning to explore the possibilities and in April, Japan and Russia reached an agreement to
begin feasibility studies on reducing emissions at 20 power plants in Russia to offset Japanese
emissions. In addition, last month, the International Petroleum Exchange in London
announced its intention to begin developing an emissions trading system and Canada is
starting a pilot trading system in green gases.
The international community met in Bonn, Germany earlier this month to follow-up on
elements of the Kyoto Protocol, including market mechanisms, laying the groundwork for the
upcoming Conference of the Parties at Buenos Aires, in November.
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3
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Weekly White House Update on Global Climate Change
1998
Dirk
Davin
Lovetta
Elliot
Recent Energy Efficiency Initiatives
Todd
The Clinton Administration is working in partnership with U.S. industry and consumers to increase
Roger
energy efficiency in their businesses and homes, to reduce emissions and save energy costs.
PATH. On May 4, the President launched the Partnership for Advanced ing Technology in Housing
Shelley
(PATH) in Los Angeles. PATH is an ambitious partnership between the building industry and
government to accelerate the deployment and development of advanced technologies that will make
houses far more energy efficient as well as more affordable, durable and of higher quality.
PATH aims to build homes that use 50 percent less energy within a decade and to retrofit 15
million existing homes to make them 30 percent more energy efficient.
Residential homes account for 20 percent of all U.S. greenhouse gas emissions, so increasing
their efficiency will not only save consumers money on their energy bills, but will also
significantly reduce the greenhouse gases that cause global warming
Energy Star Building Label. On April 20, the Administration launched the Energy Star Building
Label Program, a market-driven, voluntary partnership to reduce energy consumption by 30%,
reducing the emissions that cause global climate change and saving money from lower energy costs.
Key charter members include the Empire State Building, the World Trade Center and the Sears
Tower in Chicago.
-Growing Industry Support
Earlier this month, the Pew Center on Climate Change, with $5 million from Pew Charitable
Trusts, launched a campaign to build support for action on climate change. The Center ran
ads in The Wall Street Journal, The Washington Post, and The New York Times that featured
the logos of some of the major companies that are partnering with them including, Boeing,
Lockheed-Martin, Toyota, Maytag, Whirlpool, United Technologies, 3M, British Petroleum,
Sun Oil. American Electric Power, U.S. Generating Co., Enron and Intercontinental Energy.
IL
Last month,Shell Oil quit the Global Climate Coalition, an oil industry coalition opposed to
the Kyoto Protocol, because the group's agenda conflicted with Shell's commitment to help
reduce carbon dioxide emissions.
Congressional Activity
In a sign of growing support for the President's budget request, the Senate is forming a
Renewables and Efficiency Caucus that will be officially launched next week.
1
hedate
Diplomatic Progress
Work continues on achieving meaningful participation by developing nations and establishing the
rules and guidelines for the free market mechanisms -- an emissions trading system and a Clean
Development Mechanism -- that the U.S. negotiated into the Kyoto Protocol.
in may,
At the G8 meeting in Birmingham, England earlier this month, the world's largest economies
followed the U.S.' lead in agreeing that all countries, including developing nations, should do
their part to battle climate change.
In April
Last month in Santiago, Chile, at the Summit of the Americas, President Clinton and Chilean
President Frei announced agreed that developing countries should participate meaningfully on
climate change, taking on emissions targets whenever possible. Chile thus became the second
key developing nation, following Argentina last Fall, to agree that developing countries
should join in fighting elimate change.
Emissions trading and a Clean Development Mechanism represent immense opportunity for
the private sector and particularly for American clean technology firms. Other countries are
beginning to explore the possibilities and last month Japan and Russia reached an agreement
to begin feasibility studies on reducing emissions at 20 power plants in Russia to offset
Japanese emissions. In addition, earlier this month, the International Petroleum Exchange in
London announced its intention to begin developing an emissions trading system.
The international community will meet in Bonn, Germany on June 2-12 to lay the
groundwork for the upcoming Conference of the Parties at Buenos Aires in November.
need to
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06/26/98 FRI 11:18 FAX 2024566474
CEQ
002
bi-weekl. 629
Page 3
DBS edits 9/26
The anti-environment rider in the VA, HUD & Independent Agencies bill states that no funds can
be used to: "develop, propose or issue" rules, regulations, decrees, or orders for the purpose of
implementation of or in contemplation of implementation of the Kyoto Protocol." In addition,
the report language in the bill would seek to impose a gag rule on the Administration, stating that
"[EPA] and the CEQ are thus directed to refrain from conducting educational outreach or
informational seminars on policies underlying the Kyoto Protocol until or unless the Protocol is
ratified by the Senate."
Diplomatic Activity
At the G8 meeting in Birmingham, England last month, the world's largest economies
followed the U.S. lead if Pagreeing that all countries, including developing nations,
should do their part to battle climate change.
At the Summit of the Americas in Santiago, Chile in April, President Clinton and Chilean
of
President Frei)agreed that developing countries should participate meaningfully on
Cline
climate change, taking on emissions targets whenever possible. Argentina took the same
position last Fall.
estaburhed under the
Emissions trading and the 1 Clean Development Mechanism represent immense opportunity
kycto Ivenol
for the private sector and particularly for American clean technology firms. In a sign of
international business interest in emissions trading, in April, Japan and Russia reached an
agreement to begin feasibility studies on reducing emissions at 20 power plants in Russia
to offset Japanese emissions. In addition, last month, the International Petroleum
Exchange in London announced its intention to begin developing an emissions trading
system and Canada began a pilot greenhouse gas emissions trading system.
Parties to the Framework Convention on Climate Change met in Bonn, Germany from
June 1-12, at the only planning meeting preparatory to the next Conference of the Parties
to be held November 2-13 in Buenos Aires, Argentina. In an effort to prepare for the
Buenos Aires meeting, the Bonn meeting considered a number of items that stemmed
from the Protocol and related Kyoto decisions, including: international emissions trading,
joint implementation, the Clean Development Mechanism and carbon sinks.
The G-8 agreed that menstration
should lead, Cut that all canties
should countries participate in the global regime. A
0.8 climate waking group was established
06/26/98 FRI 11:18 FAX 2024566474
CEQ
001
-EXECUTIVE OFFICE OF THE PRESIDENT-
OF PROTIVE QUALITY COUNCI UNITED THE OFFICE 10 OF THE PRESIDENT
COUNCIL ON ENVIRONMENTAL
QUALITY
ROOM 360
PHONE: (202) 456-6224
OLD EXECUTIVE OFFICE BUILDING
FAX: (202) 456-2710
WASHINGTON, D.C. 20502
TODD STERN 6-2215
TO:
MARTHA WOFFORD 5.2311
FROM: DAVID SANDALOW
DATE:
6/26
PAGES: 2
(INCLUDING COVER SHEET)
COMMENTS:
The document(s) accompanying this FAX transmission may contain information which is confidential and/or sensitive. The information is
intended only for use by the Individual or entity named on this transmission sheet. If you are not the intended recipient. you are hereby
notified that any disclosure, copying. distribution. or the taking of any action in reliance on the contents of this faxed information is strictly.
probibited, and that the documents should be returned to this office immediately. In this regard, if youhave received this FAX in error.
please notify us by telephone immediately so that we can arrange for the return of the original document(s) to us.
ON BACKGROUND
ASSESSES STATUS:
PROGRESS ODDOMESTIC FRONT:
GERTING INDUSTRY on BOARD -
PATH
ENERGY STAR
CONNECT THE DOB
BUTH STEEL
SHELL OIL
PEW
COAUTION @ N CUMATE CHANGE HAVING PROBLEMS
V
INTERNATIONAL
CHILE, ARGENTINA, 68
Fuu COURT PRESS- MADELEINE'S SPEECH
Bus. OPPTIES - EMISPIONS TRADING
CALCATIME A MARKET FOR POLUTION CONTROL
LONG, TOUGH ROAD - But SERIOUS Agnit IT1 MAKING
PROGRESS
- NATURE MAG.
BUDGET HILL / ana
- SPATE DEPT - KYOTO
- STATE of KNOWLEDGE
EXTENS & BERATTH or ORG.
MAY 27 -ELNINO
PRENEFIR For DENECOPING COUNTRIES
TAUCINIE POINTS
NATURE
PEN
ROSINA
NOAA
PRESIDENT CLINTON'S $6 BILLION CLIMATE CHANGE INITIATIVE
"Our overriding environmental challenge tonight is the worldwide problem of climate change, global warming, the
gathering crisis that requires worldwide action We have it in our power to act right here, right now. I propose $6
billion in tax cuts and research and development to encourage innovation, renewable energy, fuel-efficient cars,
energy-efficient homes." President Bill Clinton, State of the Union address, January 27, 1998
A $6 billion initiative over 5 years to cut greenhouse gas emissions. The Administration is proposing a
$6.3 billion package of tax incentives and research and development investment to stimulate development
and use of energy-efficient technologies and clean energy sources. The initiative was announced on
October 22, 1997, by the President and builds on U.S. government efforts to encourage voluntary reduction
of greenhouse gas emissions.
$3.6 billion in tax credits. The proposed package contains $3.6 billion over the next 5 years in tax cuts
for energy efficient purchases and renewable energy.
Tax credits for fuel efficient cars. The tax package includes tax credits of $3,000 to $4,000 for
consumers who purchase advanced technology, highly fuel efficient vehicles -- expected to total
$660 million over the next five years.
Tax credits for rooftop solar systems. Another tax provision provides a 15 percent credit (up to
$2,000) for purchases of rooftop solar electricity and hot water systems -- to provide incentives for
meeting the Million Solar Roofs goal.
Other tax credits for energy efficiency. The tax cuts also include a 20 percent credit (subject to a
cap) for purchasing energy-efficient building equipment, a $2,000 credit for purchasing energy-
efficient new homes, an extension of the wind and biomass tax credit, and a 10 percent investment
credit for the purchase of combined heat and power systems.
$2.7 billion in new R&D spending. The package also contains $2.7 billion over the next 5 years in
additional research and development spending -- covering the four major carbon-emitting sectors of the
economy (buildings, industry, transportation, and electricity), plus carbon removal and sequestration,
Federal facilities, and crossing cutting analyses and research. Selected examples of the R&D effort
include:
Partnership for a New Generation of Vehicles (PNGV). PNGV is a government-industry effort to
develop attractive, affordable cars that meet all applicable safety and environmental standards and
get up to three times the fuel efficiency of today's cars. In FY99, the combined proposal for
PNGV is $277 million, up from $227 million appropriated in FY98. Similar government-industry
efforts are proposed to develop cleaner, more efficient diesel engines for both light trucks and
heavy trucks.
Renewable energy. The package includes expanded research partnerships for key renewable
technologies such as wind, photovoltaics, geothermal, biomass, and hydropower to accelerate price
reductions and improve performance. The FY99 budget proposes a $100 million increase in DOE
for solar and renewable energy R&D -- a 37 percent increase over FY98.
GENERAL STATUS OF CHAIRMAN MCINTOSH
REQUESTS REGARDING CLIMATE CHANGE
McIntosh has sent over 44 oversight requests to 22 agencies.
The 22 agencies were asked over 485 questions, with hundreds of additional
subsidiary questions and numerous document requests.
Over 4,000 staff hours have been spent to date responding to the questions and
compiling documents responsive to the Subcommittee's requests.
Over 22,000 pages have already been produced to the Subcommittee.
Over 150,000 pages of documents are currently under internal review and some
agencies are still conducting searches.
SEA VENEL RISE
ППОЛЬНВ / FOODS
HVAT WAVES
I
AGGRESEIVE ON TRADING
-6 GASES
NON-ANNEX B COUNTRIES
(KEM DENELOPING)
- NO SINICS
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- INDUSTRY CONSULTATIONS.
COSTS OVTNK16H NON-CUMATE
Br BENBAR - DIDN'T MONSTIZE
CUMATE BENEFITS
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PAYMENT Nox of SULFAR
COASTAL DAMAGE
The Kyoto Protocol on Climate Change
State Department Fact Sheet
January 15, 1998
BACKGROUND
At a conference held December 1 - 11 1997, in Kyoto, Japan, the Parties to the UN
Framework Convention on Climate Change agreed to an historic Protocol to reduce
environment. greenhouse gas emissions by harnessing the forces of the global marketplace to protect the
The Kyoto Protocol in key respects including emissions targets and timetables for
industrialized nations and market-based measures for meeting those targets - - reflects
proposals advanced by the United States. The Protocol makes a down payment on the
meaningful participation of developing countries, but more needs to be done in this area.
Securing meaningful developing country participation remains a core U.S. goal.
EMISSIONS TARGETS
A central feature of the Kyoto Protocol is a set of binding emissions targets for developed
nations. The specific limits vary from country to country, though those for the key industrial
powers of the European Union, Japan, and the United States are similar - 8% below 1990
emissions levels for the EU, 7% for the U.S., 6% for Japan.
The framework for these emissions targets is based largely on U.S. proposals:
Emissions targets are to be reached over a five-year budget period as proposed by
the U.S., rather than by a single year. Allowing emissions to be averaged across a
budget period increases flexibility by helping to smooth out short-term fluctuations in
economic performance or weather, either of which could spike emissions in a particular
year.
The first budget period will be the U.S. proposal of 2008-2012. The Parties rejected
proposals favored by others, including budget periods beginning as early as 2003, that
were neither realistic nor achievable. Having a full decade before the start of the binding
period will allow more time for U.S. companies to make the transition to greater energy
efficiency and/or lower carbon technologies.
The emissions targets include all six major greenhouse gases. The EU and Japan
initially favored counting only three gases carbon dioxide, methane, and nitrous oxide.
Ensuring the inclusion of the additional gases (synthetic substitutes for ozone-depleting
CFCs) that are highly potent and long-lasting in the atmosphere provides more
comprehensive environmental protection and lends more certainty concerning the
treatment of the additional gases.
1
Activities that absorb carbon, such as planting trees, will be offset against emissions
targets. The treatment of these so-called "sinks" was another controversial issue at
Kyoto. Many countries wanted sinks to be excluded. The United States insisted that they
be included in the interest of encouraging activities like afforestation and reforestation.
Accounting for the role of forests is critical to a comprehensive and environmentally
responsible approach to climate change. It also provides the private sector with low-cost
opportunities to reduce emissions.
Is the target the United States agreed to actually 7% lower than what the President proposed
in October?
No. The 7% target represents at most a 3% real reduction below the President's initial
proposal of reducing greenhouse gases to 1990 levels by 2008-2012. The remaining 4
percentage points result from certain changes in the way gases and sinks are calculated and
do not reflect any increase in effort as compared to the President's original proposal.
Changing the baseline for the three synthetic greenhouse gases from 1990 to 1995
accounts for about 1% of the 7% reduction. Use of these three gases has grown since
1990, so that permitting a 1995 baseline allows for a higher overall baseline than the
Administration assumed last October when the President announced his goal of reaching
1990 levels by 2008-2012. Making reductions to meet a higher baseline is of course easier
than making reductions to meet a lower baseline. Had the United States maintained the same
level of effort assumed by the President in October, and no other factors had changed, the
shift to a 1995 baseline for the three synthetic gases would, alone, have transformed the
President's goal of 1990 levels into a goal equivalent to 1% below 1990 levels.
Altering the accounting method for carbon-absorbing activities, such as planting trees,
accounts for about 3% of the 7% reduction. The President's original goal assumed that
the 1990 baseline would be lowered by carbon-absorbing activities, but under the method
agreed in Kyoto, such activities do not lower the 1990 baseline. Because the 1990 level
baseline is thus higher under the Kyoto agreement, the U.S. target becomes somewhat less
stringent. Specifically, had the U.S. maintained the same level of effort assumed by the
President in October, and no other factors had changed, the shift in the accounting method for
carbon-absorbing activities would, alone, have transformed the President's goal of 1990
levels into a goal equivalent to at least 3% below 1990 levels. (As noted above, certain
period.) carbon-absorbing activities will count against emission reduction commitments in the budget
INTERNATIONAL EMISSIONS TRADING
The United States prevailed in securing acceptance of emissions trading among nations with
emissions targets. This free market approach, pioneered in the U.S., will allow countries to
others. seek out the cheapest emissions reductions, substantially lowering costs for the U.S. and
2
Under an emissions trading regime, countries or companies can purchase less expensive
emissions permits from countries that have more permits than they need (because they have
met their targets with room to spare). Structured effectively, emissions trading can provide a
powerful economic incentive to cut emissions while also allowing important flexibility for
taking cost-effective actions.
The Kyoto Protocol enshrines emissions trading. Rules and guidelines - - in particular for
verification, reporting, and accountability - are to be discussed at the next meeting of the
Parties at Buenos Aires in November 1998.
The inclusion of emissions trading in the Kyoto Protocol reflects an important decision to
address climate change through the flexibility of market mechanisms. Led by the United
States, the Conference rejected proposals to require all Parties with targets to impose specific
mandatory measures, such as energy taxes.
The United States also reached a conceptual agreement with a number of countries, including
Australia, Canada, Japan, New Zealand, Russia and Ukraine, to pursue an umbrella group to
trade emissions permits. Such a trading group could further contribute to cost-effective
solutions to this problem.
JOINT IMPLEMENTATION AMONG DEVELOPED COUNTRIES
Countries with emissions targets may get credit towards their targets through project-based
emission reductions in other such countries. The private sector may participate in these
activities.
Additional details may be agreed upon by the Parties at future meetings.
CLEAN DEVELOPMENT MECHANISM
Another important free market component of the Kyoto Protocol is the so-called "Clean
Development Mechanism" (CDM). The CDM embraces the U.S. proposal for "joint
implementation for credit" in developing countries.
With the Clean Development Mechanism, developed countries will be able to use certified
emissions reductions from project activities in developing countries to contribute to their
compliance with greenhouse gas reduction targets.
This Clean Development Mechanism will allow companies in the developed world to enter
into cooperative projects to reduce emissions in the developing world - such as the
construction of high-tech, environmentally sound power plants - - for the benefit of both
parties. The companies will be able to reduce emissions at lower costs than they could at
home, while developing countries will be able to receive the kind of technology that can
allow them to grow more sustainably. The CDM will certify and score projects. The CDM
can also allow developing countries to bring projects forward in circumstances where there is
no immediate developed country partner.
3
Under the Clean Development Mechanism, companies can choose to make investments in
projects or to buy emissions reductions. In addition, Parties will ensure that a small portion
of proceeds be used to help particularly vulnerable developing countries, such as island
states, adapt to the environmental consequences of climate change.
Importantly, certified emissions reductions achieved starting in the year 2000 can count
toward compliance with the first budget period. This means that private companies in the
developed world will be able to benefit from taking early action.
DEVELOPING COUNTRIES
Various Protocol provisions, taken together, represent a down payment on developing
country participation in efforts to reduce greenhouse gas emissions:
above. Developing countries will be engaged through the Clean Development Mechanism, noted
The Protocol advances the implementation by all Parties of their commitments under the
1992 Framework Convention on Climate Change. For example, the Protocol identifies
various sectors (including the energy, transport, and industry sectors as well as
agriculture, forestry, and waste management) in which actions should be considered in
developing national programs to combat climate change and provides for more specific
reporting on actions taken.
Developing countries may, as a prerequisite for engaging in emissions trading, voluntarily
assume binding emissions targets through amendment to the annex of the Protocol that lists
countries with targets. The Kyoto Protocol does not include a separate article for nations to
voluntarily assume binding emissions targets.
Securing meaningful participation from key developing countries remains a priority for the
United States. The Administration has stated that without such participation, it will not
submit the Kyoto Protocol to the Senate for advice and consent to ratification.
MILITARY EMISSIONS
The Kyoto Protocol achieves the objectives identified by the Department of Defense where
international agreement was necessary to protect U.S. military operations.
Emissions from "bunker" fuels (for international maritime or aviation use) are exempted
from emissions limits.
Emissions from multilateral operations pursuant to the United Nations Charter are
exempted from emissions limits. This includes not only multilateral operations expressly
authorized by the UN Security Council (such as Desert Storm, Bosnia, Somalia) but also
multilateral operations not expressly authorized that are nonetheless pursuant to the UN
Charter, such as Grenada.
4
Countries may decide, among themselves, how to account for emissions relating to
multilateral operations (for example, U.S. training in another NATO country). This
provision avoids the need to use emissions trading to allocate such emissions.
COMPLIANCE AND ENFORCEMENT
The Protocol contains several provisions intended to promote compliance. These include
requirements related to measurement of greenhouse gases, reporting, and review of
implementation
The Protocol also contains certain consequences for failure to meet obligations. For
example, as a result of a U.S.-proposed provision, a Party not in compliance with its
measurement and reporting requirements cannot receive credit for joint implementation
projects.
Effective procedures and a mechanism to determine and address non-compliance are to be
decided at a later meeting. For both environmental and competitiveness reasons, the United
States will be working on proposals to strengthen the compliance and enforcement regime
under the Protocol.
ENTRY INTO FORCE
The Kyoto Protocol will be open for signature in March 1998. To enter into force, it must be
ratified by at least 55 countries, accounting for at least 55 percent of the total 1990 carbon
dioxide emissions of developed countries. U.S. ratification will require the advice and
consent of the Senate.
5
Global Climate Change: Basic Talking Points
February 1998
Core Message
Global climate change is a key environmental challenge for the 21st century. The world's best
scientists tell us that this problem is real and that the threats it poses -- like increasingly frequent
and severe storms and droughts and rising sea levels -- are too serious to ignore. It is our
responsibility to take vigorous, sensible steps to solve this problem. If we fail to do so, our
children and grandchildren will pay the price.
Over the course of the next year, the Clinton Administration will be working hard at home and
with our partners abroad to address climate change. Domestically, we will begin implementing
the President's plan for reducing greenhouse gas emissions. Internationally, we will build on
the historic agreement reached in Kyoto, Japan last December.
President Clinton's Domestic Plan for Reducing Emissions
In October 1997, President Clinton outlined a comprehensive and economically sound plan for
reducing U.S. greenhouse gas emissions. This plan emphasizes win-win initiatives designed to
cut emissions by increasing energy efficiency; developing new, cleaner energy technologies;
working with industry and others to promote sensible solutions; and relying on market-based
mechanisms to ensure cost-effective reductions. The plan includes:
Tax cuts & research R&D. The President's plan includes a vigorous program of tax cuts
and R&D aimed at cutting greenhouse gas emissions. The package amounts to $6.3
billion over 5 years -- $3.6 billion in tax cuts and $2.7 billion in new investment.
-- The tax cut package includes tax credits for fuel efficient cars of up to $4,000
to consumers who purchase highly efficient vehicles. Also included are credits for
rooftop solar electricity and hot water systems, for energy efficient homes and
appliances, and for several forms of advanced power generation.
-- The investment package includes research and development spending in the
three major carbon-emitting sectors of the economy -- buildings, transportation,
and industry. Among projects to be expanded is the Partnership for a New
Generation of Vehicles, a government-industry effort to develop super-efficient
cars that are attractive, affordable, and meet all applicable safety and
environmental standards. Substantial funds will also be invested in research
partnerships for key renewable energy technologies.
Industry-by-industry partnerships. A second component of the President's plan
includes building partnerships with key energy producing and emitting industries to
develop sector-by-sector initiatives to cut emissions. These partnerships will identify
opportunities for working together to remove barriers to the development and widespread
use of energy efficient technologies and practices.
Federal energy use and procurement. A third element of the President's plan is to
substantially reduce the Federal share of U.S. greenhouse gas emissions by improving the
energy efficiency of Federal facilities and activities and by overhauling procurement
practices. While achieving important reductions and cost savings in their own right, these
actions can also set a powerful example for the private sector.
Electricity restructuring. Another core element of the President's plan involves
restructuring the electricity industry in such a way as to reduce greenhouse gas emissions
while saving consumers millions on their energy bills.
Domestic emissions trading. After a decade of experience in reducing emissions, the
President has proposed a domestic emissions trading system beginning in 2008. The goal
of such a regime is to ensure that further cuts are achieved as cost-effectively as possible.
The U.S. has used emissions trading successfully to reduce the pollution that causes acid
rain -- exceeding environmental objectives at costs far lower than anticipated.
The Kyoto Protocol on Climate Change
The Kyoto Protocol is an historic step toward building an effective international response to the
problem of climate change. In key respects, the Protocol embraces U.S. proposals -- most
notably bringing the power of the free market to bear in protecting the global environment. The
essential elements of the Kyoto Protocol include binding emissions targets for industrialized
nations and flexible market mechanisms for achieving those targets. Our work over the coming
year will focus on achieving meaningful participation from developing countries and on
establishing rules and guidelines for putting agreed market mechanisms into practice.
Emissions Targets. The U.S. proposal entering Kyoto was for realistic and achievable
emissions targets that were credible in reducing the dangerous buildup of greenhouse
gases yet measured enough to safeguard U.S. prosperity at home and competitiveness
abroad. We succeeded in achieving this goal by reaching agreement on:
-- The President's concept of a multi-year time frame for emissions reductions
rather than a fixed, single-year target. The multi-year time frame will allow nations
greater flexibility in meeting their targets.
-- The President's specific time frame of 2008-2012, rather than earlier periods
favored by the European Union and others, giving us time to gradually phase in
change and deploy new technologies cost-effectively.
-- Differentiated targets for the key industrial powers ranging from 6% to 8%
below baseline levels of greenhouse gas emissions, with the U.S. agreeing to a 7%
reduction. When changes in accounting rules for certain gases and offsets for
activities that absorb carbon dioxide are factored in, the level of effort required by
the U.S. is actually quite close to the President's original proposal to return
emissions to 1990 levels by 2008-2012. The Kyoto target is at most a 3% real
reduction below that proposal.
-- Coverage of all six greenhouse gases (the EU and Japan favored counting only
three) and of activities that absorb carbon dioxide. Including the additional
three gases and so called carbon "sinks" provides for more comprehensive
environmental protection while also allowing for cost-effective measures to
combat climate change.
Flexible Market Mechanisms. Central to making the Kyoto Protocol a comprehensive,
global, and cost-effective agreement are several market mechanisms that will provide U.S.
companies with real flexibility in how they achieve emissions reductions. These include:
-- The U.S. proposal on international emissions trading. Through our
domestic program to reduce acid rain, we have proven that emissions trading is an
effective way of achieving environmental objectives at low cost.
-- A Clean Development Mechanism (CDM) establishing the right for U.S.
companies to participate with developing countries in specific projects to cut
emissions. The CDM encompasses the U.S. proposal on joint implementation and
will provide companies with relatively low-cost emissions reduction opportunities
overseas while offering developing countries the double benefit of foreign
investment and clean technology.
Meaningful Participation from Developing Countries. President Clinton and Vice
President Gore have called for the meaningful participation of key developing countries in
reducing emissions and will not submit the Kyoto Protocol to the Senate until such
participation is achieved. The Kyoto Protocol makes a down payment on meaningful
participation (principally through the CDM), and the Administration plans to focus
extensive diplomatic efforts over the coming year on securing additional commitments.
Economic Implications. Through our success in achieving realistic and achievable
emissions targets (rather than the more extreme proposals of other nations) and in
establishing cost-effective market mechanisms (rather than the mandatory, standardized
policies and measures favored by others), the U.S. helped craft an agreement that is both
environmentally strong and economically sound. Those who claim that addressing global
warming will send energy prices soaring and damage the economy ignore key provisions
that will dramatically reduce costs, such as international emissions trading, and also ignore
the important effects of the President's plan for reducing emissions at home.
Remember: the naysayers have told us for the past 25 years that taking action to protect
our environment would hurt the economy and they have been wrong over and over again.
Today we have the cleanest environment in a generation and the strongest economy in a
generation. Environmental protection and economic growth have gone hand in hand and
they will in the case of global climate change as well.
Jun-03-98 11:51A Climate Change Task Force
P.03
Domestic Initiatives
In October 1997, President Clinton put forward a responsible, balanced approach to begin meeting
the challenge of global warming, while protecting our economy and maintaining our international
competitiveness. This plan emphasizes win-win initiatives designed to cut emissions by increasing
energy efficiency; developing new, cleaner energy technologies; working with industry and others to
promote sensible solutions; and relying on market-based mechanisms to ensure cost-effective
reductions. The plan includes:
Tax cuts & research R&D. The President's FY 1999 budget request includes a program of
tax incentives and R&D aimed at cutting greenhouse gas emissions. The package amounts to
$6.3 billion over 5 years -- $3.6 billion in tax cuts and $2.7 billion in new investment.
to highly purchasersal highly
The tax incentive package includes tax credits Earefuel efficient cars of up to $4,000
to consumers wherpurchase highly efficient vehicles. Also included are credits for
rooftop solar electricity and hot water systems, forgenergy efficient homes and
appliances. and for several forms of advanced power generation.
&
to improve The officiancy
The investment package includes research and development spending in the three
of
major curbon emitting sectors of the economy, buildings, transportation, and
industry. The President recently launched Partnership for Advanced Technology in
Housing -- a public private partnership to build affordable, durable homes that are
50% more energy efficient, and the Partnership for a New Generation of Vehicles -- a
government-industry effort to develop super-efficient cars that are attractive,
affordable, and meet all applicable safety and environmental standards. Substantial
funds are also being invested in research partnerships for key renewable energy
technologies.
The President has also launded
Industry-by-industry partnerships. A second component of T the President's plan includes STET
building partnerships with key energy producing and emitting industries to develop sector-by-
sector initiatives to cut emissions of greenhouse gases the pollution that contributes to
global warming. These partnerships will identify opportunities for working together to
gathing
remove barriers to the development and widespread use of energy efficient technologies and
practices.
Federal energy use and procurement. A third element of the President's plan is to
substantially reduce the Federal share of U.S. greenhouse gas emissions by improving the
energy efficiency of Federal facilities and activities and by overhauling procurement practices.
While achieving important reductions and cost savings in their own right, these actions can
also set a powerful example for the private sector.
Domestic emissions trading. After a decade of experience in reducing emissions, the
President has proposed a domestic emissions trading system beginning in 2008. The goal of
such a regime is to ensure that further cuts are achieved as cost-effectively as possible. The
U.S. has used emissions trading successfully to reduce the pollution that causes acid rain
exceeding diready environmental objectives at costs far lower than anticipated.
2