[Congressional Record Volume 150, Number 74 (Tuesday, June 1, 2004)]
[Senate]
[Pages S6267-S6268]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           U.S. INVESTMENT IN INTERNATIONAL ENERGY EFFICIENCY

  Mr. JEFFORDS. Mr. President, I address the Senate on the matter of 
the need for continued U.S. investment in energy efficiency projects in 
other countries, as well as our own. I recently submitted my view on 
this matter to a publication of the Alliance to Save Energy, but I feel 
now, particularly in these times of high gasoline prices, that I should 
make a few remarks to the full Senate on this issue.
  Fluctuating energy prices and instability in the Middle East once 
again are prompting calls for energy independence for the United 
States. In our efforts to meet that goal, we cannot forget that the 
energy use of other countries directly effects both the supply and 
price of our energy resources here at home.
  Federal efforts to ensure freedom from fluctuations in energy prices 
have been advocated by every President, both Republican and Democrat, 
since 1973 and the infamous oil boycott. As Americans we count on 
energy to protect our security, to fuel our cars, to provide heat, air 
conditioning and light for our homes, to manufacture goods, and to 
transport supplies. In all of these needs, we, as consumers, pay the 
price for fluctuations in the global energy market.
  Our efforts to guarantee adequate energy supplies in the U.S. should 
prompt us to again take a hard look at energy efficiency not only here, 
but abroad. We are reminded that the international energy efficiency 
programs and projects run by our Federal Government protect and enhance 
the economies and standard of living of developing nations around the 
world. Given that we have a single integrated global petroleum market 
these efficiency programs directly benefit American consumers: by 
lessening demand for oil abroad, we are helping to loosen supply and 
hold down price pressures domestically. Quite simply, lowered oil 
demand in Madras helps truckers in Montpelier. Lowered oil use in Sao 
Paolo helps drivers in Santa Fe.
  A visitor to the capital of almost any developing country, be it 
Bangkok, Cairo, Manila, or Mexico City, will have a common experience. 
These places have already seen extraordinary increases in energy use. 
People who last saw these places 10 or 15 years ago are struck by the 
massive increase in air pollution from automobiles, trucks, and 
factories. As development takes hold and growth accelerates, energy use 
increases dramatically. But in many cases developing countries do not 
use energy efficiently. They often require two to four times more 
energy than industrial countries to produce the same output. This fuel 
consumption speeds up the accumulation of carbon dioxide in the 
atmosphere, contributing to global warming. In addition, fuel 
combustion is often dirty and incomplete, generating local pollution.
  U.S. Government-funded efforts energy-efficient programs that provide 
equipment and improved energy management practices can greatly reduce 
energy consumption. Over the last 10 to 15 years, the U.S. Agency for 
International Development, U.S. AID, launched a number of energy 
conservation projects aimed at energy use. These projects helped create 
an interest in energy efficiency, trained local engineers in energy 
management, and sponsored energy audits and demonstration investments. 
The projects were technically successful and had good economic rates of 
return, and the Alliance to Save Energy has been involved in several of 
these projects. In most cases, fuel savings paid for the cost of 
investments in a year to two. By reducing energy consumption, the 
measures also reduced pollution.

  One of the most successful examples of a national energy conservation 
program has been Brazil's National Electricity Conservation Program 
PROCEL. With support from U.S. AID, PROCEL has developed demonstration 
and education programs to foster energy efficiency savings and reduce 
the need for new construction of costly power plants. The country has 
developed energy efficiency standards, regulatory measures, and joint-
venture projects that have become a model for the rest of Latin 
America. PROCEL's energy efficiency measures have resulted in direct 
savings of over 1200 gigawatt-hours per year.
  The need for programs such as these are overwhelming. According to 
the Energy Information Administration's most recent International 
Energy Outlook world energy consumption will rise by 54 percent from 
2001 to 2025, driven by rising demand for power in China, India and 
other parts of the developing world.
  The report, issued on April 15, 2004, says oil will remain the 
dominant energy source worldwide through 2025, in Asian markets as well 
as in the United States. Combined, Asian and U.S. consumers will 
account for nearly 60 percent of the increase in world oil demand, 
which is projected to rise from 77 million barrels per day in 2001 to 
121 million barrels per day in 2025. To meet that rising demand, the 
world's producers would have to increase daily production by more than 
44 million barrels.
  And for electric power generation, coal dominates energy markets in 
China, India, and other developing Asian countries. EIA projects 
extensive increases in coal use in China and India. EIA also projects a 
near doubling of worldwide net electricity consumption by 2025, from 
13,290 billion kilowatt hours to 23,072 billion kilowatt hours--again 
propelled by rising demand for electricity in the developing world.
  Unfortunately, despite these successes there is an alarming and 
decreasing trend in funding for energy efficiency programs at U.S. AID. 
During the past few years these programs have received a cut in 
funding--with the fiscal year 2004 request ($8 million) cut to 50 
percent of the fiscal year 2001, $16 million funding. And the current 
proposal will not reverse this trend.
  In a century likely to contain many surprises and new challenges, the 
importance of U.S. energy security can only increase. In achieving 
energy security we must be mindful of a few things. We must assist 
developing countries in cultivating a responsible energy policy which 
supports sound economic and social development for the betterment of 
their population and the global environment. This mutually beneficial 
partnership will enhance our energy security while providing sorely 
needed revenues for health care, education, and infrastructure abroad. 
We

[[Page S6268]]

also must remember that it takes continued federal investment to 
achieve this worthy goal.

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