President Clinton’s FY2001 Climate Change Budget
The greatest environmental challenge of the new century is global warming . . . If we fail to reduce the emission of greenhouse gases, deadly heat waves and droughts will become more frequent, coastal areas will flood, and economies will be disrupted. That is going to happen, unless we act. Many people . . . still believe you cannot cut greenhouse gas emissions without slowing economic growth. In the Industrial Age that may well have been true. But in this digital economy, it is not true anymore. New technologies make it possible to cut harmful emissions and provide even more growth."
Meeting the Challenge of Global Warming. Against a backdrop of growing scientific consensus that the Earth is warming -- and that human activities are at least partly to blame -- President Clinton’s FY 2001 budget is proposing over $2.4 billion (a more than 40 percent increase over FY 2000 enacted levels) in funding to combat global climate change. This includes a series of new initiatives, such as accelerated efforts to develop clean energy sources both at home and abroad and a new Clean Air Partnership Fund to boost state and local efforts to reduce greenhouse gases and air pollution, as well as a five-year package of tax incentives to spur clean energy technologies and increased investment for R&D in energy efficient technology and renewable energy. In addition, the President is proposing more than $1.7 billion for global change research, for a total package for FY 2001 of over $4 billion.
International Clean Energy Initiative. To help accelerate the development and deployment of clean energy technologies around the world, President Clinton is proposing $200 million this year (more than a 100 percent increase over FY 2000 enacted levels) for a multi-agency initiative to encourage open competitive markets; remove market barriers in developing countries to clean energy technologies; and to provide new incentives for clean energy technology innovation and export. The initiative will promote U.S. clean energy exports, create high-value jobs, and assist developing countries in fighting air pollution and climate change.
Bioenergy & Bio-based Products Initiative. The budget includes $289 million to accelerate the development of bio-based technologies, which convert crops, trees and other “biomass” into a vast array of fuels and products – an increase of $93 million over FY 2000 enacted levels. In addition to helping meet environmental challenges like global warming, this initiative will increase the viability of alternative energy sources, support farm incomes, and diversify and strengthen the rural economy.
Clean Air Partnership Fund. The President proposes $85 million for a new fund to provide grants to state and local governments for projects that reduce 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. CCTI investments have risen substantially each of the past two years. The President’s new budget proposes a still more accelerated effort.
$4.0 billion in Tax Incentives over 5 years. The proposed package contains $4.0 billion over five years in tax cuts ($201 million for FY 2001) for consumers who purchase energy efficient products and for producers of energy from renewable sources. This year’s CCTI tax package is $400 million more than last year’s proposed five-year package. Highlights include:
$1.4 billion for Energy Efficiency & Renewables. The proposed package contains over $1.4 billion in FY 2001 to research, develop, and deploy clean technologies for the four major carbon-emitting sectors of the economy -- buildings, transportation, industry, and electricity – a 30 percent increase over the amount appropriated in FY 2000. Highlights include:
Cleaner Fossil Fuels. The budget request contains $233 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 $22 million increase over FY 2000 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 2001 request includes over $1.7 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.
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