This written statement is submitted on behalf of the Energy Task Force of the Urban Consortium for Technology Initiatives (UCETF) in support of continued appropriations for the Department of Energy's program to develop energy technologies and capabilities appropriate for large urban areas. The Congress has directed that funding for this program be made available through the UCETF.

Background of UCETF

The Energy Task Force of the Urban Consortium for Technology Initiatives is composed of members representing twenty of the urban jurisdictions that comprise the Urban Consortium, an association of the thirty-one largest cities and fourteen of the largest counties, by population, in the United States. The Energy Task Force of the Urban Consortium is the nation's most extensive local government cooperative program to develop, apply, and transfer practical energy-related technologies and advance energy management techniques in American cities and urban counties. The Energy Task Force designs annual work programs for applied research and technology transfer to improve the diversity of energy resources and efficiency of energy use in local governments and communities as a whole. A principal focus of the UCETF is the annual selection and funding of approximately twenty city and County energy projects that (1) respond to specific energy-related needs identified by local governments and (2) develop and enhance local governments' in-house energy expertise and capabilities.

Objectives

The three major objectives of the UCETF are as follows:

(1) to research and develop effective solutions for urban energy management and technology;

(2) to foster cooperative technical and financial partnerships among local governments, the federal government, and private industry to pursue such energy research and solutions and to ensure the transfer of technologies and capabilities among these parties;

(3) to maintain and strengthen an overall program direction that is guided by the needs of local government to assure that research and solutions meet the requirements of a broad range of cities and

counties.

Programs

Since inception of the program in the late 1970's the UCETF has sponsored approximately 180 city and urban county energy projects in 36 different jurisdictions around the country. In addition to maintaining the commitment of the nation's largest urban areas to energy technology development and energy conservation, the UCETF has been successful in encouraging private sector initiative and participation in many of these projects. Furthermore, every effort has been made to match local government energy needs with the work and capabilities of federal programs, including the Department of Energy's National Laboratories. UCETF projects also demonstrate the Task Force's emphasis on broadscale technology transfer and replication of successful projects. recent UCETF supported projects are described below.

Some

Testimony of

RICHARD H. WATSON
Chairman of the Board

On behalf of the

WESTERN INTERSTATE ENERGY BOARD

Concerning

DEPARTMENT OF ENERGY

FY 90 APPROPRIATIONS FOR ALTERNATIVE MOTOR VEHICLE FUELS

Before the

INTERIOR SUBCOMMITTEE
COMMITTEE ON APPROPRIATIONS

U.S. HOUSE OF REPRESENTATIVES

February 1989

The Western Interstate Energy Board, an association of sixteen western State governments, has been working to introduce alternative motor vehicle fuels to combat our growing energy security problem and reduce urban air pollution. The magnitude of these twin problems is illustrated in the attached figures.

Last Fall, the Congress took an important step toward addressing these national problems by enacting the Alternative Motor Fuels Act of 1988. Among its key provisions, the law directed the establishment of a Federal demonstration program for light and heavy duty vehicles using alternative fuels, such as methanol, ethanol, and compressed natural gas, and provided for improved testing of buses using alternative fuels. To implement this modest beginning, the law authorized appropriations for the various parts of the program over Fiscal Years 1990 through 1993.

The Board actively supported enactment of the Alternative Motor Fuels Act and has urged that funds be appropriated to implement the law's provisions. (See attached resolution adopted on December 2, 1988.) We urge the Committee to appropriate funds at the authorized levels.

The President's proposed budget for FY 90 provides limited funds ($1.5 million) for implementing the Alternative Motor Fuels Act. Congress needs to correct this oversight. Specifically, we urge the Committee to take the following actions.

1. Approve multi-year appropriations for implementing the program. It is important for the Federal government to send a clear signal to automobile manufacturers that the development of alternative fuel vehicles is a national priority which the government will pursue. Investment in new technologies by automobile manufacturers occurs over several years. Annual appropriations by the Federal government to purchase such vehicles does not signal the type of commitment needed to encourage auto manufacturers to make the needed technology investments.

2. Provide administrative start-up funds in FY 89 to implement the Act, either through a Supplemental Appropriation or reprogramming of funds. The Act established a timely, but demanding schedule for implementation. To meet the schedule, the Department of Energy needs to begin preparations in earnest in FY 89.

3. Appropriate funds to implement Section 400AA of the Alternative Motor Fuels Act (light duty demonstration program). Appropriate $5.0 million for FY 90, $3.0 million for FY 91, $2.0 million for FY 92; and $2.0 million for FY 93. The large increase in funds in FY 90 and subsequent years is for actual procurement of vehicles capable of using alternative motor fuels.

4. Appropriate funds to implement Section 400BB (alternative fuels truck program). Appropriate $4.0 million over Fiscal Years 90, 91 and 91. It is critical to make progress on alternative fuel truck engine technologies so that such technologies can be available to meet the Environmental Protection Agency's 1994 particulate standard (0.10 gram per brake horsepower-hour) for heavy duty trucks.

5. Appropriate funds to implement Section 400CC (alternative fuels bus program). Appropriate a total of $2 million over Fiscal Years 90, 91 and 92. There has been insufficient testing of buses using alternative motor fuels. Section 400CC was designed to rectify this problem by providing accurate assessments of the emissions, safety, performance and fuel economy of alternative fuel buses. The data from the bus testing program will be invaluable in helping to meet the 1991 particulate emission standard (0.10 gram per brake horsepower-hour) for buses and providing local transit authorities with the data they need to make sound decisions on future bus purchases.

6. Direct DOE to encourage and permit States to participate in the Federal alternative vehicle purchase program. Many western States face serious air pollution problems resulting from vehicle emissions. These States have established programs to test and/or implement alternative motor fuels as a means of combating urban air pollution. The Department of Energy's alternative motor fuels demonstration program should complement State efforts by permitting States to cooperatively purchase alternative fuel vehicles at the same price as the Federal government purchases the vehicles. Such combined purchasing will help to achieve the purposes of the law by increasing the demand for such vehicles and, thereby, encouraging auto manufacturers to produce such vehicles. We would suggest Committee Report language along the following lines:

In implementing the demonstration programs under the Alternative Motor Fuels Act of
1988, the Department is to encourage the participation of States and local governments in
the vehicle purchase program. Alternative fuel vehicles shall be available for purchase by
State and local governments at the same price as such vehicles are available to Federal
agencies. Such cooperative purchases will encourage the early production of alternative fuel
vehicles while assisting State and local government efforts to resolve serious vehicle-related
air pollution problems.

8. Encourage DOE to make alternative motor fuels a priority. Alternative motor fuels have historically not been a priority at the Department of Energy. This is a serious oversight which the Congress recognized and has begun to address with the enactment of the Alternative Motor Fuels Act. We encourage the Appropriations Committee to convey to the Department the vital importance of development alternative motor fuels to combat our increasing oil import vulnerability and address serious air pollution problems.

Last Fall, Congress took the first step toward lessening our dependence on petroleum in our transportation sector. We urge the Appropriations Committee to take the next step by funding the implementation of the Alternative Motors Fuels Act.

Thank you for this opportunity to provide comments.