Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

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 (GHG) 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 the Jacksonville Electric Authority (JEA) and DOE have committed to undertake under the Climate Challenge Program. JEA's commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE's commitments include specific actions designed to assist JEA in achieving its Climate Challenge commitments.

I. JEA's Commitments

A.
Consistent with paragraph II.B.1 and Exhibit B of the Climate Challenge Program MOU, JEA has implemented or will implement the following programs and specific activities to reduce, avoid, or sequester greenhouse gas emissions.

1.

In 1991, JEA converted its Northside Generating Station Unit #1 to dual fuel capability. From the conversion date to October 1994, 5,043,000 MMbtus of residual fuel oil generation has been displaced by natural gas. This has resulted in approximately 133,860 tons of avoided C02 emissions.

2.
On December 6th 1994, the JEA Board approved a contract for 7,300,000 Mmbtus of firm gas transportation on an annual basis through the year 2010. Although economics will be a factor in its use, it is estimated that natural gas will avoid the emission of approximately 190,000 tons of CO2 on an annual basis.

3.
JEA has entered into a cooperative agreement with the City of Jacksonville Public Utilities Department to jointly develop two landfill gas recovery and generation projects. The Public Utilities Department will develop the well fields and related collection systems while JEA will build, maintain and operate the generation facilities. The combined generation from these projects will be 10 to 12 MWs. Oil fired generation displaced by the landfill gas projects will avoid an estimated 63,000 tons of CO2 annually. By the year 2000, these projects will annually eliminate an estimated 18,245 tons of methane emissions with a CO2 equivalence of 1,023,000 tons per year (based on a mole ratio of 21 to 1).

In addition, on December 2, 1994 JEA joined EPA's Methane Outreach Program as a Utility Ally. In this regard, JEA will assist EPA in sharing technical and practical experience to facilitate similar projects at other utilities.

4.
In 1994, JEA added high efficiency fans to the Northside Generating Station Unit #3. 002 emissions from the unit should be reduced by an estimated 4450 tons per year.

5.
JEA will continue to pursue its demand side management (DSM) program. The program includes the following: Commercial Lighting; Residential Appliance Efficiency Education; Enhanced Residential Energy Audit and Low Income Residential Energy Audit Programs. It is estimated that the JEA DSM program will reduce CO2 emissions by 16,000 tons per year. This rate represents an annualized value from 1995 to 2000.

6.
JEA will continue to participate in the APPA Tree Power program and plant at least 300,000 trees during the project period of 1993 to 1997. It is estimated that 3400 tons of CO2 will be sequestered annually by this program. Significant CO2 avoidance may result from this program through residential and commercial cooling benefits. Numerical impacts cannot be estimated at this time.

In addition, JEA is studying the planting of approximately 210,000 trees on 300 acres of buffer lands at existing facilities. It is estimated that this will sequester another 2240 tons of CO2 annually.

7.
JEA will continue its programs to improve Distribution and Transmission efficiency. These will include the replacement of existing transformers with high efficiency transformers and a VAR Compensation Program. It is estimated that these programs will reduce CO2 emissions by 4500 tons per year. This rate represents an annualized value from 1995 to 2000.

8.
JEA will continue to pursue expanded byproduct sales of fly ash for high GHG impact uses. For example, every ton of fly ash used as a Portland cement substitute reduces one ton of CO2. Currently only 15% of coal fly ash from JEA operated coal-fired units is used in this manner. This is due to the high carbon content of the ash which limits its use for this purpose.

JEA will review and consider several carbon reduction proposals. If the high carbon problem can be solved in an economical manner, up to 300,000 tons of fly ash per year may be available for high GHG impact uses. Potentially this could avoid 300,000 tons of CO2 annually. (Note that two (2) JEA operated units are co-owned with Florida Power and Light Company. Co-owner concurrence will be needed for this project. Emission reduction credits will be allocated pursuant to ownership agreements.)

9.
JEA will undertake a biomass feasibility study to determine if urban biomass can be economically utilized as a supplemental fuel at a JEA pulverized coal facility. Preliminary studies indicate that urban biomass sufficient for 25 MW of generation may be available. If determined to be economically feasible and then

implemented, the use of urban biomass may potentially displace 172,000 tons of CO2 annually from fossil fuel combustion. (Note that two (2) JEA operated units are co-owned with Florida Power and Light Company. Co-owner concurrence will be needed for this project. Emission reduction credits will be allocated pursuant to ownership agreements.)

B.
JEA is involved in several additional programs which may have significant GHG mitigation benefits. However, these benefits cannot be quantified at this time.

1.

JEA is a Charter Utility in the development of Public Power initiatives. JEA plans to participate in specific initiatives that are applicable and cost effective in the JEA system.

2.
JEA is investigating additional greenhouse gas reduction strategies including the following: Car pooling; ZEV purchases; Telecommuting; Energy Star computers; EPA Green Lights Program and DOE's Rebuild America Program.

C.
JEA will report to DOE 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) of the Energy Policy Act and the model accounting protocols in Exhibit B of the Climate Challenge MOU. The first such report may include a description of the activities and achievements of the JEA prior to its becoming a participant in the Program. The report should be expressed on an annual basis to the extent possible.

D.
At reasonable intervals, but no later than March 31, 1997, upon the request of DOE, JEA will meet with DOE regarding its participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate JEA's progress toward achieving the Climate Challenge commitments and possible adjustments to these commitments based on the availability of reasonable, cost-justified activities for reducing greenhouse gas emissions.

E.
The Climate Challenge representative for JEA will be Robert L. Kappelmann, 21 W. Church St., Tower 8, Jacksonville Florida, 32202. JEA will notify DOE prior to or, in any event, no later than 30 days after any change in the contact

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

B.
The Climate Challenge representative for DOE will be Allan Hoffman, United States Department of Energy, 1000 Independence Ave. SW Washington DC 20585, (202) 586-1786. DOE will notify JEA prior to or, in any event, no later than 30 days after any change in representative.

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

D.
DOE will consider requests 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 JEA for purposes of addressing Climate Challenge Program issues, it will provide notice to JEA.

E.
To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider JEA'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 JEA under this Participation Accord.

F.
DOE agrees to provide public recognition to JEA 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 JEA

A.
Use of DOE-developed materials by JEA will be governed by the provisions of section IV of the Climate Challenge MOU.

B.
In addition to the foregoing provisions, DOE and JEA 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.

   (Original signed by)
______________________________                  _______________
Royce Lyles, Managing Director                  Date  
Jacksonville Electric Authority





   (Original signed by)
______________________________                  _______________
Hazel O'Leary. Secretary                        Date
U.S. Department of Energy

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