[Congressional Record Volume 144, Number 134 (Wednesday, September 30, 1998)]
[Senate]
[Pages S11187-S11188]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  ENERGY SAVING PERFORMANCE CONTRACTS

 Mr. KOHL. Mr. President, I rise today to encourage my 
colleagues to continue our efforts toward promoting energy efficiency 
and renewable energy technology. The Administration has placed a high 
priority on energy efficiency for the coming year and we must follow 
their lead. The problems of air and water pollution as well as the 
dangers of climate change only reinforce the need for an increased 
effort.

[[Page S11188]]

 Improved energy efficiency can buy us the time needed to develop an 
improved national energy policy based on renewable energy which will be 
the foundation of the 21st century.
  Human activities, particularly the burning of fossil fuels has 
increased atmospheric CO2, methane and nitrous oxide, all of 
which contribute to global warming. In fact, U.S. fossil energy 
currently produces about one-fourth of the world's CO2 
emissions. The U.S. accounts for 25% of world oil use, two-thirds of 
which is consumed by the transportation sector. Economically, U.S. oil 
imports accounts for 50% of national oil use, which amounts to $60 
billion, or 36% of our trade deficit. Mr. President not only is this 
dangerous for our environment, but it also poses a great threat to our 
economic security.
  From FY1948-FY1997 total energy R & D spending reached $108 billion. 
Of this figure $66 billion or 61% has been spent on nuclear technology, 
$26 billion or 24% for fossil fuels, while only $11 billion or 10% has 
been spent on renewables and $7 billion or 7% for energy efficiency. In 
contrast, the DOE's 1995 Energy Conservation Trends report found that 
energy conservation activities from 1973 to 1991 curbed energy use by 
about 27%. In 1992 this savings equaled $283 billion or about half of 
the nation's $538 billion annual energy spending. These figures show 
the benefits energy efficiency can bring to the U.S. if managed 
properly. We must work to reverse this discrepancy and increase funding 
for renewable energy and energy efficiency programs.
  One program which I believe shows great promise for the future is 
Federal use of Energy Savings Performance Contracts (ESPC's). 
Administered under DOE's Federal Energy Management Program (FEMP), 
ESPC's are a technique which reduces energy costs and consumption by 
the Federal government without increasing budgetary outlays. ESPC's are 
awarded to private firms who then install and maintain energy 
efficiency improvements in Federal facilities while guaranteeing 
savings.
  However, the FEMP program has repeatedly gone under funded. It is for 
this reason I introduced the Federal Energy Bank Act of 1997 (S. 1375) 
which sought an alternative means of providing the critical needed 
funding for Federal energy management. I'd like to take this time now 
to thank my colleagues, Senators Feingold, Bumpers, Johnson, Bingaman, 
Jeffords and Campbell in supporting my bill and efforts.
  Mr. President, President Clinton has recently directed all Federal 
agencies to maximize their use of ESPC's before the authority to use 
ESPC's expires in the year 2000. I call on all my colleagues to support 
a reauthorization and expansion of the ESPC authority before this 
valuable program expires. We should continue to work with DOE and the 
Administration to see this important partnership between the private 
and public sectors is extended well into the future.
  Mr. President, if anyone is skeptical as to the benefits of the 
program I'd like to give two examples of successful ESPC's involving a 
Wisconsin company, Johnson Controls. Under one of the largest ESPC's in 
the country Johnson Controls has agreed to replace the outdated 50-
year-old steam system at DOE's Hanford complex in Washington. The 
Hanford complex, which includes research labs, fuel fabrication 
facilities, industrial sites as well as numerous administrative 
buildings are undergoing a transition from a nuclear weapons production 
site to an energy research and development facility. This 25-year 
contract will save the taxpayers a guaranteed $108 million while 
reducing harmful emissions.
  Johnson also has recently signed onto another ESPC with the U.S. 
Department of Transportation to make improvements to the Volpe National 
Transportation Center in Massachusetts. Johnson will make and maintain 
improvements to lighting, heating, ventilation, air conditioning as 
well as other energy management systems. This 10-year contract will 
reduce energy expenses by $200,000 each year for the life of the 
contract, and limit carbon dioxide emissions.
  Mr. President, this is an important partnership which benefits many 
parts of society. It's good for the government, the private sector as 
well as the environment and should be continued. Again, I'd like to 
thank my colleagues for their past support. I encourage them to support 
reauthorizing this program for the future and support additional 
funding for energy efficient and renewable energy technology. Thank you 
Mr. President.

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