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 emissions. The framework of the Climate Challenge Program was established in the Climate Challenge Memorandum of Understanding dated April 20, 1994 (Climate Challenge MOU).

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

I. OUC Commitments

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

1.

In 1993 OUC contracted for 6,694,500 MMBTU of firm gas transportation on an annual basis beginning in 1995 through the year 2014. OUC will use this natural gas fuel to displace the burning of #6 oil at its Indian River Plant when it is economically supported by relative fuel prices. OUC estimates that using natural gas in the above listed amount will avoid the emission of 163,000 tons of CO₂ annually.
2.
Since 1991 OUC has initiated and will continue to pursue and expand the numerous demand-side conservation programs listed in Attachment A. OUC estimates these programs will reduce CO₂ emissions by 9,830 tons in 2000.
3.
In 1994 OUC began planting trees on its buffer lands and commits that by 1998 the total number of planted trees will be 26,000. This should result in an annual sequestering of 250 tons of CO₂ emissions.
4.
OUC will continue to implement the programs it established in 1992 to improve the efficiency of electrical transmission and distribution. This is primarily through the installation of high efficiency transformers and larger diameter conductors. Since 1991 OUC has replaced 1,888 transformers and estimates that by 2000 OUC will replace an additional 2,400 transformers. OUC estimates that in the year 2000 these projects will result in a reduction of 5,140 tons of CO₂ emissions.
5.
OUC presently has one pilot project utilizing photovoltaic technology to supply all of the power for a City of Orlando park and sewer lift station. This solar project has been in service for approximately two years and reduces CO₂ emissions by .25 ton per year. This project has shown the usefulness of photovoltaic energy sources in certain applications. Presently, OUC is considering the use of solar power at remote railroad crossings and will continue to look for cost effective uses of solar power.
6.
OUC will expand sales of fly ash for use as a Portland cement substitute if market prices remain favorable. By 2000, OUC's sales of fly ash that is used as a Portland cement substitute are estimated at 90,000 tons. This amount correlates to an estimated reduction of 90,000 tons of CO₂ emissions.
7.
OUC will continue to participate as a member of the EPA Green Lights Program as a utility ally. At this time, no figures are available for the projected CO₂ emissions savings.
8.
The fleet division of OUC is currently operating two state of the art electric vehicles. This program has just been initiated and further expansion will be dependent on OUC's economic analysis.
9.
During 1995, the fleet division of OUC will begin testing the use of vehicles powered by compressed natural gas, known as CNG. OUC will initially operate three to five vehicles, with the intention of converting as many as one-third of all fleet vehicles and equipment to this fuel over the next five years, if OUC's pending economic analyses show favorable results. This conversion would mean that by the year 2000, OUC could have several hundred CNG powered vehicles.
10.
On November 29,1994 OUC became a charter member of the EPA's Landfill Methane Outreach Program. In conjunction with this program OUC will evaluate the possibility of utilizing captured gaseous emissions from landfills for the production of electricity.
B.
OUC 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 OUC prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.

C.
At a date no later than June 1, 19971 OUC will meet DOE regarding its participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate OUC'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 OUC will be Gregory A. DeMuth, Director of Environmental Affairs, Orlando Utilities Commission, 500 South Orange Ave., Orlando, Florida, 32801. OUC will notify DOE prior to or, in any event, no later than 30 days after any change in the contact.

II. DOE Commitments

A.
DOE will perform the actions and fulfill the commitments set out in section Ill of the Climate Challenge MOU.
B.
The Climate Challenge representative for DOE will be Allan Hoffman, Department of Energy, 1000 Independence Avenue, S. W., Room 6B128, Washington, D.C., 20585, 202-586-1786. DOE will notify OUC prior to or, in any event, no later than 30 days after any change in representative.
C.
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 OUC for purposes of addressing Climate Challenge Program issues, it will provide notice to OUC.
D.
To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider OUC's participation in the Climate Challenge Program as a factor to be weighed positively in the evaluation of applications for financial, regulatory, or other assistance submitted to DOE in support of commitments made by OUC under this Participation Accord.
E.
DOE agrees to provide public recognition to OUC 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 OUC.

A.
Use of DOE-developed materials by OUC will be governed by the provisions of section IV of the Climate Challenge MOU.
B.
In addition to the foregoing provisions, DOE and OUC 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)
____________________________________________            _________________
Robert C. Haven                                         Date
General Manager and Chief Executive Officer
Orlando utilities Commission



    (Original signed by)
____________________________________________            _________________
Hazel O'Leary                                           Date
Secretary, Department of Energy

Demand-Side Carbon Dioxide Emissions reduction Projects

1) Residential Energy Survey Program

Auditors give each customer written recommendations on energy saving measures and practices.

Fiscal Year 2000 Estimated CO₂ Savings: 100 Tons CO₂

Auditors give each commercial customer written recommendations on energy saving measures and practices.

Fiscal Year 2000 Estimated CO₂ Savings: 260 Tons CO₂

3) Commercial Efficient Lighting Program

Auditors perform a lighting survey for commercial customers and a rebate of $100 is given to the customer for each kW of removed lighting load.

Fiscal Year 2000 Estimated CO₂ Savings: 3400 Tons CO₂

Customers with incomes of $20,000 or less are eligible to have their homes improved by adding attic insulation, weatherstripping/caulking of doors and windows, duct repairs, water heater insulation, repair of water leaks, and/or installation of various air infiltration equipment. OUC pays 85% of the cost.

Fiscal Year 2000 Estimated CO₂ Savings: 640 Tons CO₂

Customers installing a heat pump with a SEER 11 (or greater) and removing an electric heater will qualify, for a $300 rebate. Customers replacing inefficient electric central air conditioning units will qualify for a rebate of up to $150.

Fiscal Year 2000 Estimated CO₂ Savings: 3410 Tons CO₂

Customers installing R-19 attic insulation can receive a rebate of $140. Customers havingtheir duct systems repaired can receive a rebate of up to $100. Customers installing weatherstripping/caulking of doors and windows, window tinting, solar screens and water heater insulation can receive a rebate of up to $110 for a combination of these measures.

Fiscal Year 2000 Estimated CO₂ Savings: 820 Tons CO₂

Encourage commercial customers using cooling systems with electric strip heat to convert to heat pumps by offering a $100 rebate per kW reduced or $70 per ton of equipment installed.

Fiscal Year 2000 Estimated CO₂ Savings: 490 Tons CO₂

This program will encourage customers to replace older less efficient motors with high efficiency motors by offering a rebate of $10 per hp of high efficiency motor.

Fiscal Year 2000 Estimated CO₂ Savings: 710 Tons CO₂

The Total Estimated Carbon Dioxide Emissions from Demand-Side Programs Is 983O Tons. This tonnage is based on base-loaded units using natural gas as a fuel.

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