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Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

Climate Challenge Participation Accord
Between
United States Department of Energy
And
The New York Power Authority


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 the New York Power Authority ("NYPA") and DOE have committed to undertake under the Climate Challenge Program. NYPA's commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE's commitments include specific actions designed to assist NYPA in achieving its Climate Challenge Commitments.

I. NYPA Commitments

A. Consistent with Paragraph II.B.l.f and Exhibit B of the Climate Challenge Program MOU, NYPA will undertake the following projects to reduce, avoid or sequester green-house gas emissions:

1. DEMAND SIDE MANAGEMENT PROGRAMS:

    NYPA will continue to implement two broad categories of DSM programs throughout New York State. They are expected to reduce CO2 emissions by about 632,000 metric tons in the year 2000, with a total of approximately 2.9 million metric tons of CO2 for the 1991-2000 period.

    a. NYPA Customer Programs:

    NYPA Customer Programs are estimated to reduce CO2 emissions by approximately 482,000 metric tons in the year 2000 and by a total of 2.1 million metric tons of CO2 for the 1991- 2000 period.1 These reductions will result from programs in high efficiency lighting for Authority customers in Southeast New York ("SENY"), residential energy efficiency measures for upstate cooperative and municipal customers, and the installation of advanced energy efficiency technologies for NYPA industrial customers. In addition energy efficiency programs are planned to be initiated for the New York City Public Housing Authority, Metropolitan Transit Authority, and the New York City Board of Education.

    b. NYPA - IOU Partnership Programs:

    NYPA - IOU partnership programs are estimated to reduce CO2 emissions by approximately 149,000 metric tons in the year 2000 and by approximately 840,000 metric tons for the 1992- 2000 period2. NYPA promotes energy efficiency programs in schools, state-owned buildings as well as in county and municipal-owned buildings statewide.

2. RENEWABLES PROGRAMS:
    NYPA will undertake the Renewables Programs described in Attachment 2. They are expected to result in CO2 emission reductions of approximately 33,500 metric tons in the year 2000 and a total of 101,000 metric tons for the 1992-2000 period. The programs focus on projects in photovoltaics, biomass, fuel cells and wind power.
3. NYPA'S ELECTRIC TRANSPORTATION PROGRAM:
    NYPA is involved in and will continue to implement the Transportation and Electric Vehicle programs described in detail in Attachment 3. NYPA will also participant in EV America by purchasing up to 50 EVs by the end of 1995.
4. NYPA FACILITIES:
    NYPA's system-wide net generation for 1990 was 34,138,028 MWH. As described in Attachment 1, NYPA has undertaken and plans to undertake plant efficiency improvement programs that are estimated to reduce CO2 emissions by approximately 88,000 metric tons in the year 2000, with a total reduction of approximately 364,000 metric tons of CO2 for the 1993- 2000 period.
5. IN-HOUSE CORPORATE ACTIVITIES TO REDUCE GREENHOUSE GAS EMISSIONS:
    NYPA has dramatically reduced in-house energy consumption in the past few years and will continue to reduce internal consumption of energy through numerous campaigns and seminars that increase employee awareness of energy efficient alternatives.

    a. Transit Checks Program: Under this program, employees are encouraged to use mass transit for commuting to work. Approximately $1 million has been allocated for NYPA's Transit Check Program by the year 2000.

    b. Waste Paper Reduction activities: Currently NYPA recycles approximately 260 tons of paper per year. It is estimated that NYPA will have recycled approximately 1,600 tons in the 1991-2000 period.

6. PARTICIPATION IN EPA'S GREEN LIGHTS PROGRAM:
    NYPA is a Green Lights Ally. Under the Green Lights program NYPA will continue to install high efficiency lighting at its own facilities. These programs are estimated to reduce CO2 emissions by approximately 4,000 metric tons in the year 2000 and a total of 26,000 metric tons for the 1992-2000 period.
7. TREE POWER:
    NYPA's has had wide participation in the APPA-initiated Tree Power Program. Thirty-three of the state's fifty-one municipal electric systems and rural cooperatives participated in the Tree Power Program. In 1995, NYPA's Tree Power Program will be expanded to provide participation to NYPA SENY HELP customers3. It is anticipated that a total of 25,000 trees will be planted by the year 2000.
8. PARTICIPATION IN PUBLIC POWER CLIMATE CHALLENGE INDUSTRY INITIATIVES:
    NYPA has been an active participant in Public Power Climate Challenge Industry Initiatives ("PCI") from their inception, and will contribute membership dues for participation in all PCI initiatives.
Estimated reduction of approximately 3.5 million metric tons of CO2 are anticipated as a result of the successful implementation of all of the above enumerated NYPA projects (with specified CO2 emission reductions) by the year 2000.4

B.

    NYPA 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 NYPA prior to its becoming a participant in the program, expressed on an annual basis to the extent possible.
C.
    At reasonable intervals upon request, but no later than July 7, 1995, NYPA will meet with DOE regarding NYPA's participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate NYPA's progress towards 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.
D.
    The Climate Challenge representative for NYPA will be Robin Shanen; 1633 Broadway, 21st floor New York, NY 10019. NYPA will notify DOE prior to or, in any event, no later than 30 days after any change in contact.
II. DOE Commitments

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 Mr. Allan Hoffman; 1000 Independence Avenue, SW, Washington, DC 20585, (202) 586-1786. DOE will notify NYPA prior to, or in any event no later than 30 days after any change in representative.
C.
    DOE will meet with NYPA 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 NYPA for purposes of addressing Climate Challenge Program issues, it will provide notice to NYPA.
E.
    To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider NYPA'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 NYPA under this Participation Accord.
F.
    DOE agrees to provide public recognition to NYPA 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 NYPA.
III. General Provisions

A.
    Use of any DOE-developed materials by NYPA will be governed by the provisions of section IV of the Climate Challenge MOU.
B.
    In addition to the foregoing provisions, DOE and NYPA agree to act in accordance with the principles set out in Section I 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.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 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)
     ________________________________
     Haze1 O'Leary
     Secretary of Energy



     NEW YORK POWER AUTHORITY

        (Original signed by)
     ________________________________
     Philip J. Pellegrino
     Senior Vice President Energy Efficiency and Technology




     January 17, 1995

Footnotes

1 For detailed description of DSM Customer Programs, SEE Attachment 1.

2 For a detailed description of NYPA-IOU Partnership Programs, SEE Attachment 1.

3 For a description of NYPA's SENY HELP Program and customers, see Attachment 1.

4 Note, planned programs, not authorized by NYPA's Board of Trustees, are subject to Trustee approval.

Attachment 1

NEW YORK POWER AUTHORITY

The New York Power Authority ("NYPA" or the "Authority") a non- profit, public-benefit corporation, provides almost one-quarter of the New York's electricity requirements. It is the state's largest electric supplier and the nation's largest nonfederal public power organization. Its generation facilities include hydropower (61%), nuclear (31%) and natural gas and oil (8%).

NYPA supplies power to: 

  -  government agencies, public buildings, schools, subways and
     commuter rail lines in New York City and Westchester County;
  -  the seven major N.Y.S. investor-owned utilities (Central
     Hudson, Con Edison, Long Island Lighting, New York State
     Electric Gas, Niagara-Mohawk, Orange and Rockland, and
     Rochester Gas and Electric);
  -  fifty-one municipal and rural cooperative electric systems
     as well as municipal utility service agencies;
  -  industrial and commercial firms throughout NYS;
  -  seven neighboring states as mandated by federal license
     requirements.

NYPA DSM PROGRAMS

Customer Programs:

Southeast New York High Efficiency Lighting Program ("SENY HELP"): Under this direct installation program, NYPA will achieve estimated CO2 emission reductions of a total of 912,000 metric tons by the year 2000. This program was initiated by the Authority in 1990 to promote third generation lighting technologies with no up-front participation costs.

Metropolitan Transportation Authority ("MTA"): Budgeted to begin in 1995 this program will achieve a total of approximately 324,000 metric tons of CO2 emission reductions by the year 2000. NYPA will promote the installation of advanced lighting technologies in MTA subway and commuter rail cars, tunnels and stations. By the end of this decade, NYPA also plans to provide technical assistance and funding for the implementation of regenerative braking technology. The Authority's program will be coordinated with MTA's overall capital improvement and station modernization programs. NYPA will provide funding necessary to expand MTA's work beyond current capital program limitations. Public Housing: NYPA's Southeast New York Public Housing program will achieve a total of approximately 372,000 metric tons of C02 emission reductions by the year 2000. Planned for inception in 1995, it will be offered to the NY City Housing Authority and NYPA Westchester County customers. The program will fund Housing Authority purchases of high efficiency refrigerators air-conditioning window units and recycle and capture CFC's from older inefficient units replaced.

NYC Board of Education Pilot Coal Conversion Program: Under this program, budgeted to begin in 1995, NYPA will achieve estimated CO2 emission reductions of 15,000 metric tons by the year 2000. Fifty of the coal-fired boilers currently used in more than 300 NYC schools will be converted to gas-fired boilers at the rate of 10 per year, starting with the first 10 under the program pilot. The program will convert these coal-fired steam boilers and install other energy conservation measures as appropriate in coordination with the NYS Energy Office, Con Edison and Brooklyn Union Gas.

Industrial DSM Program : This program, which began in 1993, will achieve estimated CO2 emission reductions of a total of 115,000 metric tons by the year 2000. The program promotes the installation of advanced lighting technologies, energy efficient motors and drives, HVAC refrigeration and process measures for industrial customers by financing the cost of installation.

New Construction Program: Begun in 1992, this program will achieve a total of 147,000 metric tons of CO2 emission reductions by the year 2000. The program offers energy efficiency design assistance, rebates and customer incentives to SENY customers who have projects for new construction, major renovations or equipment replacements.

Watt Buster Residential Program: Under this program, which began in 1986, NYPA will achieve estimated total CO2 emission reductions of 160,000 metric tons between 1991 and the year 2000. The program promotes the installation of energy efficiency, water conservation and weatherization measures for residential customers of the municipal and cooperative electric systems served by NYPA.

Refrigerator Round-Up Program: This program began in 1994 and will achieve a total of approximately 31,000 metric tons of CO2 emission reductions by the year 2000. A $50 per refrigerator incentive is provided to residential customers in municipal systems for the environmentally safe disposal of inefficient second refrigerators from, their homes.

Federal Government HELP Program: This direct installation program, budgeted to begin in 1996, will achieve a total of approximately 51,000 metric tons in CO2 emission reductions by the year 2000. It will follow the program design for other HELP initiatives.

NYPA-IOU Partnership Programs:

These programs are executed in New York State I.O.U. service territories. Programs utilize available IOU rebates for funding, and provide NYPA financing to program participants.

Statewide HELP: Begun in 1991, Statewide HELP will achieve a total of approximately 314,000 metric tons in CO2 emission reductions by the year 2000. It is a direct installation program funding energy conservation measures including high efficiency lighting, motors, and building energy management systems in state-owned facilities.

Long Island HELP: Total CO2 emission reductions of approximately 133,000 metric tons by the year 2000 will be achieved under this program. Long Island HELP, which was initiated in 1992, is a direct installation program that promotes high efficiency lighting and energy efficient motors in school districts across Long Island.

Public Schools HELP: This program, which began in 1993, will achieve a total of approximately 177,000 metric tons of CO2 emissions by the year 2000. It is a direct installation program promoting high efficiency lighting and efficient motors in school districts and community colleges across New York State.

County and Local Government HELP: This direct installation program, expected to commence in 1995 will achieve a total of approximately 86,000 metric tons in CO2 emission reductions by the year 2000. It will fund energy conservation measures, including high efficiency lighting, motors and energy management systems in local government-owned buildings throughout NY State.


NYPA FACILITIES PROGRAMS

Hydro Generation: Niagara's net generation for 1993 was 16.4 million megawatt hours. Thirteen state-of-the-art turbines will be installed by the year 2006. These will be replacing older, less efficient turbines. The first of these installations was done in 1994, and the remaining 12 will be installed one per year until 2006. Each turbine increases overall efficiency of the plant by 2-10%, depending upon whether power is being utilized on or off peak. Total emission reductions by the year 2000 are expected to be approximately 323,000 metric tons. Availability of hydro-power reduces the need for peak fossil fuel power, thus reducing overall emission rates in NYS.

Fossil Generation: NYPA's fossil-fuel related C02 emissions for 1990 were 1,37 lb/KWH of C02. An efficiency improvement study has been performed and, if implemented, will result in an expected overall 1-2% improvement in system operations, starting in 1997.

Nuclear Generation: Replacement of low pressure turbines at Indian Point-3 is expected to increase plant capability by 20 Mws in peak summer months and 17 Mws in the winter season. Total C02 emission reductions as a result of increased plant efficiency will be approximately 40,000 metric tons by the year 2000. Any additional nuclear generation will be utilized to offset fossil fuel generation and thus reduce CO2 emissions.

Attachment 2

NYPA RENEWABLE PROGRAMS

Wind Project

NYPA will install 4 MWs of advanced wind turbines at a wind farm site to be identified in 1995. The project is expected to avoid approximately 12,000 metric tons of C02 emissions by the year 2000.

Biomass

NYPA will develop a bio-fuel production plant with an equity partner, to be on line 1997. The biomass plant will convert approximately 300 tons of wood chips to methanol or hydrogen fuel per day. Approximately 73,000 metric tons of CO2 emissions will be avoided by the year 2000 as a result of this project.

Photovoltaics

NYPA will purchase and install 300 KW of photovoltaic ("PV") modules in 1995 at NYPA public customer sites in the SENY area. NYPA will also purchase and install, 1 MW of PV systems per year for a five year period beginning 1996 for SENY customers. As a result of NYPA PV projects, approximately 16,000 metric tons of CO2 emissions are expected to be avoided by the year 2000.

Fuel Cell

NYPA will be acting as the host to a DOE sponsored project to demonstrate a 2.8 MW molten carbonate fuel cell utilizing purified landfill gas.

Attachment 3

NYPA'S ELECTRIC TRANSPORTATION PROGRAM

NYPA is currently involved in a number of electric transportation initiatives. They are:

EV America: In order to promote the development of electric vehicles (Ev), NYPA is committed to the purchase and use of between 25-50 EV's by the end of 1995.

Electric Shuttle Buses: This planned demonstration project will test electric battery powered shuttle buses. New York City Transit, the Port Authority of NY and NJ and Westchester County will participate in the project.

NYC Trolley Coach Program: NYPA has completed a feasibility study, to develop a trolley system to replace the over 100 buses now running along 1st and 2nd Avenues in Manhattan. New York City is currently considering this alternative as part of a broader plan for the East Side of Manhattan. NYPA is committed to finance the electric infrastructure of the project, if it goes forward

Small Urban EV's: This project consists of the placement of small 3-wheeled vehicles in a variety of uses including the NYC Police Department, the Parks Department, and the NYC Housing Authority.

Hybrid Electric Transit Bus/Delivery Truck : These testing and development projects are meant to be a bridge technology until all-electric buses and delivery trucks are workable alternatives to internal combustion vehicles.

Other Ev projects being planned include 42nd Street Light Rail Project, assistance to the Port Authority's Airport Access Program and a feasibility study for high speed rail.



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