ACEEE PRESS BRIEF

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BUSH WAR BUDGET FAILS TO USE EFFICIENCY WEAPONS FOR ENERGY SECURITY

February 3, 2003

WASHINGTON, D.C. -- As the United States mobilizes fiscal resources for possible military action in the Persian Gulf and for homeland security, the Administration's Fiscal Year 2004 budget fails to call on energy efficiency as a key resource in this national security campaign. Energy efficiency, which reduces U.S. oil import dependence, should be an essential element of national security policy.

"As we boost spending to deploy military technology abroad and security technology at home, we need also to increase funding for energy efficiency technology to shore up our energy security and flagging economy," stated Steven Nadel, ACEEE's Executive Director. "The Administration's budget falls short of what's needed."

The U.S. Department of Energy's FY2004 efficiency budget request totals $875.8 million, which is $20.7 million (2.3%) lower than the FY2002 level (FY2003 spending bills are still pending). The request for U.S. Environmental Protection Agency's ENERGY STAR® programs is about $50 million, the same level as FY2002. DOE's request cuts several key efficiency programs to fund the proposed FreedomFuel program. "This budget starves too many important research and development programs," noted Bill Prindle, ACEEE's Policy Program Director. "Hydrogen technology, while promising, is still more than 15 years away and we can't afford either to wait that long or to bet too much on one technology."

On the economic front, the Administration's request spectacularly fails in energy efficiency funding for rural communities, among the hardest hit by the soft economy. The 2002 Farm Bill includes an Energy Title, which provides $115 million entitlement funding over six years for funding energy efficiency and renewable energy projects, and authorizes a farm energy audit program. The Administration's budget not only seeks zero funding for this audit program, but also seeks to remove authorization for entitlement funds—an extraordinary move in an appropriations bill. "Owners of small farms and ranches are facing unprecedented challenges to survival. Since energy costs are a significant burden for many in rural America, energy efficiency assistance is sorely needed," said Neal Elliott, ACEEE's Industry and Agricultural Program Director.

ACEEE's research has shown that not only is energy efficiency a key element of national security, but also that efficiency contributes significant economic and environmental benefits to the nation. A recent National Academy of Sciences analysis showed that DOE efficiency programs provide admirable financial returns on the federal investment: as an example, a portfolio of efficiency research and development programs returned benefits of $30 billion on a federal investment of $7 billion over a multi-year period. These and other findings are explained in a special ACEEE publication, Energy Efficiency Research, Development, and Deployment: Why Is Federal Support Necessary? This four-page, illustrated publication can be found on ACEEE's website at http://www.aceee.org/energy/rddkey.htm.