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 LADWP and DOE have committed to undertake under the Climate Challenge Program. LADWP’s commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE’s commitments include specific actions designed to assist LADWP in achieving its Climate Challenge commitments.
 
 

I. LADWP Actions
 
 

• Consistent with Paragraph II.B.1 and Exhibit B of the Climate Challenge MOU, LADWP commits to reduce its greenhouse gas emissions such that the average of its greenhouse gas emissions over the period of 1991 through 2000 equals its 1990 baseline of 18.1 million tons of CO₂.
   
   
• LADWP will utilize the Global Warming Potential Factors for methane and other appropriate greenhouse gases as listed under Section 1605(b) of the Energy Policy Act of 1992.
   
   

• LADWP will account for estimated greenhouse gas emissions attributable to its generating facilities. In addition, LADWP will account for estimated greenhouse gas emissions attributable to generation of power purchased under agreements of at least 10 years duration and will exclude emissions attributable to the generation of power sold under such agreements.
   
   

1. Reduction strategies which have been committed or completed to achieve this goal include the following:

1. Switch from fuel oil no. 6 to natural gas at Los Angeles basin generating facilities except under emergency situations;
    
    
    
2. Repower Harbor Generating Station with natural gas-fired combustion turbines and heat recovery steam generators;
    
    
    
3. Implement demand-side management programs described in Attachment B;
    
    
    
4. Implement efficiency upgrades at Los Angeles basin generating stations and Intermountain Generating Station (e.g., remove flue gas reheaters at Intermountain Generating Station);
    
    
    
5. Plant at least 60,000 trees in domestic forests and urban landscapes;
    
    
    
6. Participate in Public Power Climate Challenge Initiatives as applicable and cost-justified;
    
    
    
7. Participate in the EV America Program;
    
    
    
8. Participate in the Environmental Protection Agency’s Landfill Methane Outreach Program; and
    
    
    
9. Purchase and install lower loss transformers when economically justified.
    
    
    

• LADWP estimates that implementation of these emissions reduction strategies will result in a cumulative CO₂ reduction of 7 million tons over the period from

  1991 to 2000.
   
   

2. Additional reduction strategies to achieve the goal may include the following:
    
    
   1. Continue to utilize and expand LADWP’s fleet of electric vehicles;
       
       
       
   2. Transfer SO² allowances recognized by the Environmental Protection Agency under Title IV of the Clean Air Act Amendments of 1990 to Niagara Mohawk Power Company or other utilities in exchange for CO₂ reductions consistent with protocols developed with DOE and exchange participants;
       
       
       
   3. Participate in American Public Power Association’s TreePower Program by planting an additional 50,000 trees by 2000;
       
       
       
   4. Implementation of low nitrogen dioxide (NOx) technology on Los Angeles basin generating station boilers. LADWP will report NOx emissions reductions when DOE develops global warming potentials for NOx and begins accepting reports on NOx in 1997;
       
       
       
   5. Continue development of programs related to implementation of electrotechnologies (e.g., lawn mower and internal combustion engine replacement programs); and
       
       
       
   6. Implement other greenhouse gas emission reduction strategies as appropriate.
       

2. LADWP 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 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
    
3. At reasonable intervals upon request, but in any event no later than September 1, 1996, LADWP will meet with DOE regarding its participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate LADWP’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.
    
    
    
4. The Climate Challenge representative for LADWP will be:
   Bruce M. Moore, Manager
   Air Quality Business Team
   Environmental Services
   Los Angeles Dep't of Water & Power
   111 North Hope Street, Room 1050
   Los Angeles, California 90012.

   Email:   bmoore@ladwp.com
   Mobile: 213.792.4972
   Voice:  213.367.3772
   Fax:     213.367.4710

   LADWP will notify DOE prior to or, in any event, no later than 30 days after any change in the contact.
    
    

1. DOE will perform the actions and fulfill the commitments set out in Section III of the Climate challenge MOU.
    
    
    
2. The Climate Challenge representative for DOE will be Allan Hoffman, 1000 Independence Avenue, S.W., Washington, D.C. 20585, (202) 586-1786. DOE will notify LADWP prior to or, in any event, no later than 30 days after any change in representative.
    
    
    
3. 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 LADWP for purposes of addressing Climate Challenge Program issues, it will provide notice to LADWP.
    
    
    
4. To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider LADWP'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 LADWP under this Participation Accord.
    
    
    
5. DOE agrees to provide public recognition to LADWP 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 LADWP.
    

1. Use of DOE-developed materials by LADWP will be governed by the provisions of Section IV of the Climate Challenge MOU.
    
2. In addition to the foregoing provisions, DOE and LADWP 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.
    
    

3. Either party may withdrawfrom 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.