The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“ENERGY SAVING PERFORMANCE CONTRACTS” mentioning the U.S. Dept. of Transportation was published in the Senate section on pages S11187-S11188 on Sept. 30, 1998.
The publication is reproduced in full below:
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.
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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