Climate Challenge - Climate Challenge Participation Letter

Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

Climate Challenge Participation Accord
Between
United States Department of Energy
And
Cooperative Power Association

The Climate challenge Program is a joint, voluntary effort of the United States Department of Energy ("DOE") and the electric utility industry undertaken in pursuit of the President's goals for reducing greenhouse gas emissions. The framework of the Climate Challenge Program was established in the Climate Challenge Memorandum of Understanding dated April 20, 1994 ("Climate Challenge MOU"), (See Attachment A to this Participation Accord).

This Participation Accord describes the actions that Cooperative Power Association (CPA) and DOE have committed to undertake under the Climate Challenge Program. Cooperative Power Association's commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE's commitments include specific actions designed to assist CPA in achieving its Climate Challenge Commitments.

CPA is an electric power generation and transmission cooperative which supplies wholesale power to 17 member-owned distribution cooperatives in west-central and southern Minnesota.

Additionally, the electric cooperatives listed in Attachment B have an ownership interest in and receive bulk electric power from CPA. These electric cooperatives in turn serve approximately 199,000 customers. Due to this ownership and power supply relationship, the cooperatives in Attachment B will participate in the Climate Challenge Program through CPA.

I. Cooperative Power Association Commitments.

Consistent with Paragraph ll.B.l and Exhibit B of the Climate Challenge Program MOU, the Cooperative Power Association has or will undertake the following actions since January 1, 1991:

Fossil-fueled Generating Station Heat Rate Improvement Projects

₂

L-0 Buckets which will avoid the emission of approximately 95,447 tons of CO₂ in 2000.
Fan improvements which will avoid the emission of approximately 208,906 tons of CO₂ in 2000.

Cooling tower improvements which will avoid the emission of approximately 7,631 tons of CO₂ in 2000.
Controls upgrade improvements will avoid the emission of approximately 95,447 tons of CO₂ in 2000.
Simulator improvements will avoid the emission of approximately 28,630 tons of CO₂ in 2000.
Ultrasonic & helium leak detection improvements will avoid the emission of approximately 95,447 tons of CO₂ in 2000.
Ventilation improvements will avoid the emission of approximately 8,021 tons of CO₂in 2000.
Compressed air improvements will avoid the emission of approximately 3,247 tons of CO₂ IN 2000.
Variable packing in turbine improvements will avoid the emission of approximately 62,995 tons of CO₂ in 2000.

Coal Creek Station is jointly owned by CPA and United Power Association (UPA). CPA's share of total CO₂ avoidance resulting from heat rate improvements at Coal Creek Station is 56% or approximately 327,116 tons of CO₂ in 2000.

Coal Ash Programs
The use of coal ash in the manufacture of cement and other materials requires less energy which will result in the avoidance of greenhouse gas emissions. CPA recycled over 63.300 tons of coal ash in the baseline year of 1990. Recycling is estimated to be 150,000 tons in the year 2000 which is an increase of 86,700 tons over 1990 and translates into a reduction of 72,250 tons of CO₂ in 2000. Creek Station is jointly owned by CPA and United Power Association (UPA). CPA's share of total CO₂ avoidance resulting from heat rate improvements at Coal Creek Station is 56% or 40,460 tons of CO₂ in 2000.

Demand Side Management (DSM) Programs
CPA has implemented and will continue to implement residential, commercial and industrial DSM programs. This will avoid the emission of approximately 82,000 tons of CO₂ in 2000.

The Energy Intelligent Business and The Energy Intelligent Farm^TM Grant Financing Program
The Energy Intelligent Business^TM and The Energy Intelligent Farm^TM grants are DSM programs designed to solicit proposals for energy and capacity saving projects from farm and business owners. The proposals are assessed for viability and cost-effectiveness and those which rank the highest may be awarded grants to share in the cost of the project This program will avoid the emission of approximately 61,000 tons of CO₂ in 2000.

Efficient Lighting
Some member cooperatives encourage the use of energy efficient lighting, primarily compact fluorescents. Efforts have focused largely on providing information. This program will avoid the emission of approximately 1,600 tons of CO₂ in 2000.

Water Heater Blankets
Some cooperatives have encouraged energy conservation through the use of water heater blankets. (Water heater blankets are also known as water heater tank wraps.) Water heater blankets are essentially insulation added to the exterior of tanks to reduce the heat lost to the surrounding air. In 1991, six cooperatives were providing or subsidizing water heater blankets to members. This program will avoid the emission of approximately 4,700 tons of CO₂ in 2000.

Low-Flow Showerheads
Some cooperatives encourage water and energy conservation through the use of low- flow showerheads. These devices reduce the hot water, and in turn, water heating energy used during showers. This program will avoid the emission of approximately 7,000 tons CO₂ in the year 2000.

Miscellaneous Projects

Other setback thermostats will avoid the emission of approximately 1,000 tons of CO₂ in 2000.
Reduction of excess water heater settings will avoid the emission of approximately 2,000 tons of CO₂ in 2000.
Water pipe insulation will avoid the emission of approximately 5,200 tons of CO₂ in 2000.

Transformer Loss Evaluation Program
CPA has purchased and will continue to purchase efficient distribution and substation transformers by including the cost of losses during the bid evaluation process. CPA has purchased and will to purchase the more efficient transformer when the amount of the calculated costs to otherwise supply the reduced losses over the life of the new transformer is greater than any additional cost that would presently be required to purchase the more efficient transformer. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of the Transformer Loss Evaluation Program are not yet available.

Shunt Capacitor Programs
CPA has added and will continue to add shunt capacitors and remote control switching of these devices on the CPA transmission system and the members' distribution systems to reduce line losses by constantly improving power factor and voltage profile. Reduced current on the lower voltage portions of the CPA and member transmission systems also provides additional loss reductions which are reflected throughout the power supply system. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of Shunt Capacitor Programs are not yet available.

T & D System Improvement Programs
CPA has achieved and will continue to achieve loss reductions through reconductoring lines with larger wire and through conversion of lines to operation at a higher voltage, resulting in a reduction of current and conductor resistance losses. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of T & D System Improvement Programs are not yet available.

Tree-Planting Programs
CPA has implemented a tree planting program at its Coal Creek Station generating facility in 1991 which, at a minimum, will result in the planting of 12,500 trees by the year 2000. In addition, CPA has implemented, and will continue to implement an employee- tree planting program. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of the employee tree- planting program are not yet available.

Electrotechnologies
CPA will provide energy information and perform audits for residential, commercial, and industrial customers promoting the use of electrotechnologies, and energy efficiency and conservation measures which have the net effect of reducing greenhouse gas emissions. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of these activities must be calculated on a per-use basis and are not yet available.

Recycling Projects and Activities.
CPA is a member of EPA and Minnesota WasteWise programs and plans to increase its recycling activities, including the sale of combustion by-products, in future years. In most cases the use of recycled materials instead of virgin materials in production processes requires less energy which will result in the avoidance of greenhouse gas emissions. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of these activities are not yet available.

Employee Use of Videoconferencing, Teleconferencing and FAX
Because the use of videoconferencing, teleconferening and FAX reduces related emissions, non- productive travel time and cost, CPA will strongly encourage the use of these technologies whenever they are feasible. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of these activities are not yet available.

Vehicle Use Activities
CPA has reduced the number of vehicle miles driven to accomplish certain work efforts, such as meter reading, and maintenance and repair of transmission and distribution facilities. CPA will continue to look for opportunities to improve worker efficiency, such as consolidating or otherwise modifying its operations to reduce the travel times and miles driven by its work crews and other employees. These activities also reduce vehicle emissions, including the emissions of greenhouse gases. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of these activities are not yet available. In addition, CPA employees have implemented, and will continue to implement an employee-owned van pool corporation. Estimates of the annual quantities of greenhouse gases reduced, avoided, or sequestered as a result of the employee- owned program are not yet available.

The Cooperative Power Association will report to DOE annually on its 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 [[section]]1605(b) of the Energy Policy Act and the Supplemental Guidance on Commitment Definitions and Reporting in Exhibit B of the Climate Challenge MOU. The first such report may include a description of the activities and achievements of the Cooperative Power Association prior to its becoming a participant in the program, expressed on an annual basis to the extent possible.

Cooperative Power Association will confer with DOE no later than September 1, 1997 regarding Cooperative Power Association's participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate Cooperative Power Association's progress towards achieving its Climate Challenge commitments and possible adjustments to these commitments based on the availability of reasonable, cost-justified activities for reducing greenhouse gas emissions.

The Climate Challenge representative for the Cooperative Power Association will be Karen R. Hansen, 14615 Lone Oak Road, Eden Prairie, MN 55344. The Cooperative Power Association will notify DOE prior to or, in any event, no later than 30 days after any change in contact

II. DOE Commitments.

DOE will perform the actions and fulfill the commitments set out m section III of the Climate Challenge MOU.

The Climate Challenge representative for DOE will be Mr. Larry Mansueti; Office of Utility Technology, EE-10, 1000 Independence Avenue, S.W., Washington, DC 20585, (202) 586- 2588. DOE will notify the Cooperative Power Association prior to, or in any event, no later than 30 days after any change in representative.

DOE will meet with the Cooperative Power Association upon request regarding possible adjustments of the Climate Challenge commitments set forth in subsection I.A. of this Participation Accord.

DOE will consider requests by Cooperative Power Association to intervene in 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 the Cooperative Power Association for purposes of addressing Climate Challenge Program issues, it will provide notice to the Cooperative Power Association.

To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider Cooperative Power Association's participation in Climate Challenge as a factor to be weighed positively in evaluating applications for financial and other assistance submitted to DOE in support of commitments made by Cooperative Power Association under this Participation Accord.

DOE agrees to provide public recognition to Cooperative Power Association for its Climate Challenge activities. DOE will, among other things, prepare an annual report summarizing results achieved under Climate Challenge and highlighting any outstanding achievements or innovative approaches of Cooperative Power Association.

III. General Provisions

Use of any DOE- developed materials by Cooperative Power Association will be governed by the provisions of section W of the Climate Challenge MOU.

In addition to the foregoing provisions, DOE and Cooperative Power Association agree to act in accordance with the principles set out in section 1 of the Climate Challenge Program MOU and the general provisions set forth in subsections V.A, V.B, V.C, V.D, V.F and V.6. of the Climate Challenge Program MOU, which are hereby incorporated by reference.

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

U.S. DEPARTMENT OF ENERGY

(Original Signed By)
Hazel O'Leary
Secretary of Energy

COOPERATIVE POWER ASSOCIATION

(Original Signed By)
Julian Brix
General Manager

Attachments

Attachment B




Agralite Cooperative                                    Minnesota Valley Electric Cooperative

Box 228	                                                PO Box 125

East Highway 12                                         125 Minnesota Valley Electrive Drive

Benson, MN 56215                                        Jordan, MN 55352



Brown County Rural Electric Association                 Nobles Cooperative Electric

PO Box 529                                              PO Box 788

Highway 4 North                                         Highway 59 North

Sleepy Eye, MN 56085                                    Worthington, MN 56187-0788



Dakota Electric Association                             Redwood Electric Cooperative

4300-220th Street West                                  PO Box 15

Farmington, MN 55024                                    Clements, MN 56224



Federated Rural Electric Association                    Runestone Electric Association

PO Box 69                                               Box 9

Highway 71 South                                        Seventh & Fillmore

Jackson, MN 56143                                       Alexandria, MN 56308



Frost-Benco-Wells Electric                              South Central Electric Association

PO Box 8                                                PO Box 150

Highway 169 South                                       County Road 57 West

Mankato, MN 56002-0008                                  St.James, MN 56081



Goodhue County Cooperative Electric Association         Stearns Cooperative Electric Association

PO Box 99                                               900 East Kraft Drive

224 Main Street                                         Melrose, MN 56352

Zumbrota, MN 55992                                   

                                                        Steele-Waseca Cooperative Electric

Lake Region Co-op Electrical Association                PO Box 485

PO Box W                                                115 East Rose Street

12 Fifth Avenue NE                                      Owatonna, MN 55060

Pelican Rapids, MN 56572                                  

                                                        Todd Wadena Electric Cooperative 

McLeod Cooperative Power Association                    PO Box 431

PO Box 70                                               Highway 10 East

1231 Ford Avenue                                        Wadena, MN 56482

Glencoe, MN 55336       



Meeker Cooperative Light & Power Association 

PO Box 522

503 East Highway 12

Litchfield, MN 55355

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