# Presentation: 282622

## U.S. Climate Change Activities

***Drusilla Hufford***
***Director******Global Programs Division***
***U.S. EPA***
***November 20, 2002***

**Notes:**
My Administration is committed to a leadership role on the issues of climate change. We recognize our responsibility and we will meet it, at home, in our hemisphere, and in the world -- President Bush, February 14, 2002

## Overview

**U.S. Climate Policy Update**
**Climate Change Initiatives**
**Progress in Key Areas**
**Research**
**Technology**
**Voluntary Programs**
**Conclusions**

**Notes:**
Focus in on US - Domestic efforts
On international side -- (FYI)
Concept of economic growth -- needed to make investments in R&D and employ new, cleaner technology --  along with emissions reductions offers growing developing countries the incentive and means to join with us in tackling climate challenge together
Over 80% of projected growth in global emissions between now and 2020 will come from the developing world [this doesn’t acknowledge current contribution  to concentrations...]
Therefore, important to include international efforts, some examples:
Tripled funding for “debt-for-nature” tropical forest conservation program ($40 million in ‘03 budget)
Fully funding Global Environment Facility (GEF) for its third 4-year replenishment of $430 million, and paying $210 million in arrears over next 3 years
Enhanced support for climate observation systems and climate technology assistance in developing countries ($25 million)
Sustaining level funding of $155 million on ‘03 for USAID climate programs, including technology transfer and capacity building in developing countries
Launched bilateral partnerships with Italy, Australia, India, China, EU, Korea, Japan

## U.S. Climate Policy Update

**February 2002 Presidential initiative includes efforts to:**
**Cut GHG intensity by 18% over next 10 years**
**Compares to projected 14% BAU reduction **
**Improve emissions reduction registry**
**Interagency effort to enhance accuracy, reliability, verifiability of federal (1605b) system**
**Increase support for science research & technology**
**$4.5 B for climate programs in President’s 2003 budget**
- $1.7 B for science research
- $1.3 B for climate technologies

**Notes:**
On February 14, 2002, President Bush announced new plan to address global cliamte change
Intensity = tons of GHG/$GDP
In 1990s, economy shifted significantly to less energy-intensive service sectors, and energy intensity dropped.  U.S. Energy Information Agency does not believe this trend is likely to continue, and that energy intensity will not drop at same rate over the next decade.  The 18% target is a clear and substantial improvement over projected trend of 14%.
Some claim that plan will allow emissions to increase indefinitely. President Bush made clear on February 14th that the long term goal of our approach is to reverse the growth in GHG emissions.  His plan first sets U.S. on path to slow growth of GHG emissions, and – as the science justifies – to stop and then reverse that growth.   Only by reversing overall emissions can we achieve long term stabilization of concentrations, as envisioned in Framework Convention. 
President’s 2003 budget commitment unmatched in the world.

## What an 18% Intensity Cut Means  

**What an 18% Intensity Cut Means  **

**BAU-Baseline is 14%improvement in emissions per GDP over next 10 years ****	**
**Administration’s Goal is to advance to 18% improvement which cuts:**
**100 mmtce in 2012**
**500 mmtce cumulatively**

**Notes:**
The President’s 18% intensity reduction goal will lower our rate of emissions from an estimated 183 metric tons per million dollars of GDP in 2002, to 151 metric tons per million dollars of GDP in 2012.

Meeting this commitment will prevent over 500 million metric tons of GHGs from entering the atmosphere over the next 10 years - the equivalent of taking 70 million (or 1 out of 3) cars off the road.

Rationale is that sustained economic growth is essential part of solution, not the problem -- it makes possible the needed investment in research, development, and deployment of new, clean encergy technologies

## Making Progress in Key Areas

**Federal Climate Research**
**Technology Development**
**Voluntary Programs**

**Notes:**
Progress is already happening in all of these areas...
Federal Climate Research
accelerating science-based climate change policy development under Climate Change Research Initiative (CCRI)
Technology Development
advancing energy and sequestration technology development under National Climate Change Technology Initiative (NCCTI)
increasing international cooperation to engage and support other nations on climate change and clean technologies
Voluntary Programs
Increasing incentives to reduce GHG emissions through DOE’s voluntary GHG reporting program (under 1605b of the Energy Policy Act of 1992) and other voluntary programs
If, by 2012, we find we are not on track toward meeting our goal, and sound science justifies further policy action, we will respond with additional measures that may include a broad, market-based program as well as additional incentives and voluntary measures designed to accelerate technology development and deployment

## Federal Climate Research

**Three broad areas for new research strategy:**
**Scientific inquiry **
**Observations & monitoring systems **
**Decision support tools **
**Strategic plan for U.S. climate change research to be published in April 2003**
**Workshop on U.S. Climate Change Science Program December 3-5, 2002, in Washington, DC**

## Technology Development

**Reviewing ****existing R&D**** activities**
**Developing approaches to pursue ****advanced technologies**
**Identifying creative ways to advance development of ****innovative technologies**

**Notes:**
This is the NCCTI (National Climate Change Technology Initiative) or “neck tie” effort

Reviewing existing R&D activities
identifying ways to strengthen basic research, enhance public-private partnerships, promote cutting-edge technologies
Developing approaches to pursue advanced technologies
to yield cost-effective means to mitigate risks associated with climate change
Identifying creative ways to advance development of innovative technologies
 including use of open solicitations for technologies to achieve maximum gains from competition

## Examples of Technology Progress

**Fuel Cells for transportation**
**FreedomCAR initiative launched**
**CO2 Capture and Sequestration **
**Support to conservation programs**
**$25 M initiative to co-fund innovative carbon sequestration projects launched by DOE**
**Agriculture and Forestry**
**Researching methods to reduce emissions of methane and nitrous oxide from agriculture**

**Notes:**

Freedom Car --
pubic private partnership with the nation’s automobile manufacturers to advance the research and development, and use of technologies such as fuel cells and hydrogen from domestic renewable sources; long-term result is a more efficient, less expensive, less polluting transportation fleet
Prez 2003 budget -- $3billion in tax credits (over 11 years) for consumers who purchase fuel cell and hybrid vehicles

CO2 capture and sequestration -- 
supporting conservation programs that offer the benefits of carbon sequestration in forested areas, including soils, and offsetting agricultural emissions of GHGs

## Voluntary Programs

**Spur investment**
**Focus on cost-effective opportunities**
- Where largest environmental benefits can be achieved
**Focus on action**
- Provide consumer with information
- Reduce transaction costs
**Employ many underutilized, cost-effective technologies and practices resulting in:**
**Sizeable efficiency gains and GHG reductions by 2010**
**Significant energy bill savings**
**Enhanced economic growth**

**Notes:**
Programs work now, while R&D activities underway

Bring results through increased market efficiency

Assessing cost-effective opportunities identify where markets not working

## Voluntary Programs Get Results 

-   Total investments in efficient technologies
- Net savings for consumers and businesses
-   	      Total GHG reductions thru 2010
- 		      Total peak energy saved

***  ******$15 invested***
***  ******$60 net energy savings***
***  ******More than 1 ton Carbon                                   avoided***

***$11 Billion***
***$60 Billion ***
***450 MMTCE***
***10 GW***

- Source: CPPD 2000 Annual Report

**Summary of EPA Program Efforts to Date**

**Voluntary Programs Get Results **

**Notes:**
Additional opportunities from capital stock that will be turning over in next 10 years -- 50% of 2010 emissions of CO2 are from yet to be purchased equipment for buildings/homes, transportation, and industry

Programs also reach non-CO2 gases with high GWPs
% of industry participating in other EPA voluntary programs to reduce emissions is high:

Natural Gas STAR  -- over 50% of industry
Primary Aluminum Smelting -- over 90% of industry
Semiconductor Industry -- 70% of industry
SF6 and Utilities -- over 50% of industry
SF6 and Magnesium -- over 75% of industry
HCFC-22 Manufacturers -- 100% of industry
Coalbed Methane Outreach -- assisted 25 new projects 
Landfill Methane Outreach -- assisted 200 new projects 
Agricultural Outreach Programs

## EPA Voluntary Climate Opportunities

**Electricity: Clean generation**
- Combined heat and power (DOE/EPA)
- Green Power Partnership (EPA)
**Transportation: **
- CommuterChoice,  It All Adds Up to Cleaner Air
**Industry: Voluntary Partnerships**
- Climate Leaders
- Voluntary Sector Partnerships (Aluminum, etc.)
**Commercial and Residential Buildings**
- Energy Star
- WasteWise
**State and Local Climate Change Program**
**Agriculture and Forestry**
**Methane and High-GWP Programs**

**Notes:**
You will hear more about many of these later in the program -- but I will touch on a few of them here. 

As you can see the State and Local Climate Change Program is one part of a suite of voluntary programs at EPA

In addition to our unique work, one important role we play is to help state and local officials access the many other voluntary programs out there (both at EPA and other federal agencies) where so much is going on...

## Energy Star

**Energy-efficient products and solutions that yield:**
**Cost savings ($5 billion annually)**
**Greenhouse gas reductions**
**Energy reliability **
**Energy security**
**Avoided approximately 80 billion kWh in 2001**
**Avoided 15% of growth in energy demand for buildings since 1990**
**750 million Energy Star labeled products purchases**
**Avoided approximately 10 GW of peak power**
**Avoided need for more than 30 “average” 330MW plants**

**Notes:**
Reduces information gap, increasing market efficiency

Katy Hatcher from EPA’s Energy Star will be speaking later in the conference about opportunities under this program

## Climate Leaders

**Companies work with EPA to evaluate GHGs, set aggressive reduction goals, report progress toward goals**
**Gives businesses incentives to invest in new, cleaner technologies and pursue GHG mitigation and  sequestration strategies now**
**Currently, 30+ partner companies**
**Represent nearly all of energy-intensive industries**
**7 have set specific emissions reduction goals**
- Miller Brewing Company - reduce 18% per barrel
- GM - reduce total emissions by 10%

**Notes:**
Launched in February 2002

Both absolute and intensity goals -- must be aggressive, better than industry standard -- 

Miller Brewing Company: Reduce emissions by 18% per barrel of production by 2006 from 2001
General Motors Corporation: Reduce total emissions by 10% for all North American facilities by 2005 from 2000

Bethlehem Steel Corporation: Reduce GHG emissions by 12% per ton of steel from 2000-2010
Holcim Inc. (cement manufacturerer): Reduce GHG emissions by 12% per ton of cement from 2000-2008
IBM: Reduce CO2 emissions equivalent to 4% of electricity and fuel use from 2000-2005, reduce PFC emissions by 10% from 2000-2005
National Renewable Energy Laboratory: Reduce GHG emissions by 10% per sq ft from 2000-2005
SC Johnson & Son: Reduce GHG emissions by 23% per pound of product from 2000-2005 

## Clean Energy Programs

**Green Power Partnership**
**Companies commit to green power**
**500 Million KWh of green power to date**
**Currently 83 partners**
- Includes 13 state, county or local governments
**Combined Heat and Power Partnership**
**Promotes co-generation by industry, state/local governments, and nonprofits**
- 17 Fortune 500 companies
- 9 state, county or local governments

**Notes:**
Matt Clouse from GreenPower Partnership will be speaking tomorrow about opportunities for state and local involvement -- for their own purchases and to promote to businesses within their area

Also --

2003 budget seeks $555 million in clean energy tax incentives, including tax credits to spur investments in solar, wind and biomass energy, co-generation and landfill gas conversion.  This is the first part of ta $4.6 billion commitment over the next five years ($7.1 billion over the next 10 years)

## State & Local Climate Change Program

**Provides targeted technical and policy support**
**ID’s economically, environmentally efficient reductions**
**Evaluates actions and develops lessons learned**
**Recognizes leadership and showcases successes**
**Integrates states and localities into Administration’s climate strategy, 18% intensity reduction goal**

**Notes:**
Technical and policy support -- 
Customized to address state needs
Builds capacity by using local resources

Developing new strategic framework for collaboration with state and local governments that you will hear more about from Brian McLean on Friday

## Other EPA Climate Activities

**WasteWise**
**High-GWP Environmental Stewardship Programs **
**Methane Programs**
**Transportation Programs**

**Notes:**
There are many, many other EPA Climate Activities in addition to the ones I just described

I encourage you  to find out more about all of these, we have representatives from many of these programs in the audience today, or presenting later in the program

WasteWise - waste recycling and source reduction to reduce GHG emissions
High-GWP Environmental Stewardship Programs - reduction of high-GWP emissions, transition away from ozone-depleting substances
Methane Programs - capture and use of methane emissions from natural gas sector, coal mines, landfills
Transportation Programs - commute flexibility, land-use policies, advanced clean and fuel-efficient automotive technology research

## Other Agencies’ Programs Contribute to Progress on Climate

**Other Agencies’ Programs Contribute to Progress on Climate**

**Department of Energy**
**Department of Transportation**
**Commerce Department/NOAA**
**Department of Agriculture**

**Notes:**
You’ve heard already from NOAA  and will hear from DOT shortly.  There will be speakers from USDA and DOE later in this conference.
Department of Energy
Voluntary emissions registry
Appliance standards, renewable energy programs
Rebuild America, Building America
Federal Energy Management Program, State Energy Program
Industrial Best Practices Programs, Industries of the Future 
Department of Transportation
Clean Cities
Commerce Department/NOAA
Department of Agriculture
Bioenergy program
Land conservation programs
Agriculture and methane (with EPA) 

## Voluntary Emissions Registry

**DOE leading inter-agency effort to improve Voluntary GHG Reporting Program(1605B) **
**Goal is to create comprehensive and transparent program to report and credit real GHG reductions**
**Four workshops to collect suggestions on specific improvements**
**The first took place in DC earlier this week**
**Other workshops planned for Houston, San Francisco and Chicago**
**New reporting guidelines expected by January 2004**

**Notes:**
Let me single out for more mention one area of work -- that is actually an inter-agency effort -- to enhance and improve the federal GHG registry (under section 1605(B) of the Energy Policy Act (EPAct) of 1992).

Proposed improvements intended to develop fair, objective, and practical methods for reporting baselines, calculating real results, and awarding transferable credits for actions that result in real GHG reductions
Companies, farms and other organizations participating in a new registry will be provide with transferable credits for achieving voluntary emissions reductions.  These credits will be available for use under any future incentive based or mandatory programs.  We believe the enhanced standards for the new registry will strengthen the current voluntary trading systems that are already out there. [ask Reid/Joe to review this point from Beale]
You will be hearing more about this on Friday, at our GHG registries session, from Margot Anderson of the US DOE

## Conclusions

**The U.S. Government is continuing a broad strategy to address climate change, reduce GHG emissions and sustain economic growth through:**
**Research and development**
**Innovative, clean technologies**
**Voluntary programs**

**Notes:**
Sound investments in research, development, and innovative, clean technologies provide significant GHG emissions reductions and sustained economic growth that in turn helps provide the capital necessary to make investments in the environment

Through increased science and technology R&D, expanding international collaboration, and successful voluntary and cost-effective programs, the U.S. climate policy is an ambitious, realistic, and measurable way to mitigate and reduce GHG emissions

States and localities play an important part in this strategy, through their efforts that lead to GHG reductions as well as their policy innovations and contributions to data and lessons learned

## For More Information

**EPA Global Warming website **
_**[www.epa.gov/](http://www.epa.gov/globalwarming)**__**[globalwarming](http://www.epa.gov/globalwarming)**_
**EPA’s voluntary programs information**
_**[www.epa.gov/climateleaders/resources.html](http://www.epa.gov/climateleaders/resources.html)**_
**U.S. Department of State climate website**
_**[www.state.gov/g/oes/climate](http://www.state.gov/g/oes/climate)**_