This Participation Accord describes the commitments that Central Illinois Light Company (CILCO) and the U. S. Department of Energy (DOE) have made to participate in the Climate Challenge Program in pursuit of the President's goals for reducing greenhouse gas emissions. The Climate Challenge Program is a joint, voluntary effort of DOE and the electric utility industry to reduce, avoid or sequester greenhouse gas emissions. The framework of the Climate Challenge Program was established in the Climate Challenge Program Memorandum of Understanding and exhibits thereto dated April 20, 1994 (the Climate Challenge Program MOU) (see Attachment A to this Participation Accord).

 I. Utility Commitments

A.
 1. Consistent with paragraph II.B.1 of the Climate Challenge Program MOU, CILCO will make specific commitments in support of the following industry initiatives:
a. Utility Forest Carbon Managment Program
Contribute $5000 annually for carbon sequestration credit through the Utility Forest Carbon Management Program. Contribution will begin in 1994 and be assessed annually for continuation through 1999.

 b. EV America
Participate as an Ev America Ally to promote commercialization of electric vehicles. Beginning in 1995, an annual assessment and recommendations will be completed on the viability of adding electric vehicles to CILCO's fleet. CILCO will consider these recommendations and implement then if cost-effective.

2. In Addition, CILCO has undertaken or will undertake the following projects and programs:

a. Heat Rate (efficiency) Improvement
Installed high efficiency turbine buckets on E. D. Edwards Unit No. 3 in 1994, with a projected heat rate (efficiency) improvement equivalent to an annual reduction of approximately 19,000 metric tons of carbon dioxide beginning in 1995.

 b. Co-Generation Facility
Installed a Co-Generation facility with a local steam customer in 1994, with a projected annual reduction of approximately 97,000 metric tons of carbon dioxide beginning in 1995. An indirect annual reduction of approximately 4000 metric tons of carbon dioxide will result from the shutdown of the former steam generating facilities operated with coal.

c. Environmental Education/In Concert With The Environment
Continue to facilitate environmental education at the high school and junior high school levels, and with targeted adult participation, through the In Concert With The Environment Program. Based upon lO0% coal fired electricity generation, approximately 20,000 metric tons of carbon dioxide are projected to be avoided between 1992 and 2000 through conservation actions implemented by the participants in this program. This equates to approximately 4,000 metric tons of carbon dioxide avoided annually by year 2000. The program will be assessed annually for continuation through 1999.

 d. Tree Line USA Program
Participate in the Tree Line USA Program sponsored by The National Arbor Day Foundation in support of enhanced urban forestry. CILCO will contribute $20,000 annually beginning in 1995 to promote urban forest maintenance practices and to replace felled trees on a two for one basis. This program will be implemented in cooperation with the Tree City USA Program, and will be assessed annually for continuation.

 e. Green lights Program
Participate as an electric utility ally in the Green Lights Program sponsored by the United States Environmental Protection Agency (USEPA) to promote installation of energy efficient lighting. A Memorandum of Understanding will be signed with USEPA in 1995. Specific commitments will be defined and implemented during an initial five year schedule.

B.

 CILCO will report annually on activities and achievements under the Climate Challenge Program. Results achieved during each year shall be reported in a clear and understandable manner that is consistent with the guidelines adopted pursuant to subsection 1605(b) Energy Policy Act and the Climate Challenge accounting protocols in Exhibit B of the Climate Challenge Program MOU. The first such report may include a description of the activities and achievements of CILCO prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.

C.

 CILCO will confer with DOE on or before June 30. 1997 to evaluate jointly the progress of CILCO in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D.
 The Climate Challenge Program representative for CILCO will be:

 Robert M. Bisha
Central Illinois Light Company
300 Liberty Street
Peoria, Illinois 61602

 CILCO agrees to notify DOE prior to or, in any event, no later than thirty days after any change in the contact.

A.
 DOE's commitments to CILCO are those set out in section III of the Climate Challenge Program MOU, which are hereby incorporated in this Participation Accord by reference.

B.

 DOE will consider CILCO requests to intervene in regulatory proceedings of federal, state and local commissions and boards on issues pertinent to the Climate Challenge Program. Before DOE intervenes in regulatory and other proceedings pertaining to CILCO for purposes of addressing Climate Challenge Program issues, it will provide notice to CILCO.

C.

 DOE will provide an annual report to CILCO describing the actions that it has taken to fulfill its commitments under section III and Exhibit C of the Climate Challenge Program MOU and the results of those actions.

D.

 The Climate Challenge Program representative for DOE, who will serve as liaison to CILCO, will be:

 Mr. Larry Mansueti
Director, Climate Challenge Program
Office of Utility Technologies, EE-10
United States Department of Energy
1000 Independence Avenue, S.W.
Washington, D.C. 20585
(202) 586-2588 (phone)
(202) 586-1640 (fax)

 DOE agrees to notify CILCO prior to or, in any event, no later than thirty days after any change in liaison responsibilities or personnel.

III. General Provisions

A.
 Use of DOE-developed materials by CILCO will be governed by the provisions of section IV of the Climate Challenge Program MOU, which are hereby incorporated in this Participation Accord by reference.

B.

 In addition to the foregoing provisions, DOE and CILCO agree to act in accordance with the principles set out in section I of the Climate Challenge Program MOU and the general provisions set out in subsections V.A-V.D, V.F and V.G of the Climate Challenge Program MOU, which are hereby incorporated by reference.

C.

Either party may withdraw from this Participation Accord or any of its activities under the Climate Challenge Program without penalty and without being subject to remedies at law or equity.

Central Illinois Light Company

By:_______________________
Its: designee
Date:_____________________

U. S. Department of Energy
 

By:_______________________
Its: Secretary of Energy or designee
Date: July 7. l995

Attachment:

 Attachment A - - Climate Challenge Program MOU and exhibits

Return to the Climate Challenge Front Page

Please send comments to:
Lawrence.Mansueti@hq.doe.gov