First, I believe we should amend the Cabinet bill to establish a national environ- 

 mental technologies program. 



The new Administration is committed to making the United States a leader not 

 only in environmental protection, but also in the development and commercializa- 

 tion of clean technologies. Developing clean technologies will play an important part 

 in ensuring that we are economically competitive. If American companies are going 

 to succeed in international competition, they are going to have to accelerate their 

 productivity rate, and environmentally sound production is crucial to that process. 



While our major competitors, Japan and Germany, have fostered the development 

 of new environmental technologies through active involvement with all stages of re- 

 search, development and commercialization, the United States does not have a co- 

 herent national policy to encourage the development of environmental technology. 

 This legislation presents the perfect opportunity for setting forth our national 

 policy. 



I have introduced legislation to promote environmental technology innovation and 

 commercialization. It is modeled on the Small Business Innovation and Research 

 Act — a program that the General Accounting Office has found to be an extremely 

 successful mechanism for helping small businesses move new products into the mar- 

 ketplace. My legislation would direct a small percentage of Federal agencies' R&D 

 and environmental cleanup funds toward environmental technology development 

 and commercialization. I am currently working with Senator Mikulski, who has also 

 introduced environmental technology legislation, to combine our legislation into an 

 amendment to the Cabinet bill. 



The second amendment would strengthen EPA's role in pro\dding environmental 

 assistance to small business. Small businesses have an important role to play in 

 both the economy and the environment. They contribute significantly to job cre- 

 ation, but they also contribute to our environmental problems such as ground-level 

 ozone and urban runoff. Small businesses face obstacles in identifying and adopting 

 cost-effective environmental strategies. The current web of regulations and the ad- 

 versarial relationship between business and government create barriers to holistic, 

 pollution prevention approaches. It is time to move toward more of a partnership 

 with small business by expanding pollution prevention and compliance assistance 

 programs. I am drafting an amendment that would elevate the Small Business Om- 

 budsman Office within EPA to an office directly under the Administrator and pro- 

 vide a clear legislative mandate for the office. The amendment would also expand 

 other pollution prevention and compliance assistance programs for small businesses. 



Finally, my tfdrd amendment to the Cabinet bill would direct the Administration 

 to develop a national environmental strategy. As the U.S hjis stated repeatedly in 

 international fora, national environmental strategies are valuable tools for integrat- 

 ing environmental concerns into all areas of government decisionmaking. The Na- 

 tional Commission on the Environment, a bipartisan, distinguished Q)mmission 

 headed by former EPA Administrator Russell Train, also noted the benefits of na- 

 tional strategies and recommended in its recent report that Congress direct the Ad- 

 ministration to develop a national environmental strategy in conjunction with EPA 

 elevation. I believe such a strategy has several important benefits. In addition to 

 helping integrate environmental and economic policies, a national commitment to 

 clear, measurable environmental goals would improve government accountability 

 and would help steer private as well as public sector environmental protection ef- 

 forts. Building a consensus on the Nation s environmental objectives among govern- 

 ment departments and agencies, the Congress, and the public will require White 

 House and congressional leadership. 



I look forward to working with the Chairman and members of this Committee, 

 with my colleagues on the Environment and Public Works Committee, and with the 

 Administration to advance this bill and to consider these amendments. 



Chairman Glenn. Thank you very much. 



We are glad to welcome some of our Senate collesigues here 

 today. They wanted to testify on this and we are glad to welcome 

 them for their testimony in the order in which they arrived this 

 morning. 



Senator Baucus, if you would lead off? 



TESTIMONY OF HON. MAX BAUCUS, U.S. SENATOR FROM THE 



STATE OF MONTANA 



Senator Baucus. Thank you very much, Mr. Chairman. 



