Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

This Participation Accord describes the commitments that Pacific Gas & Electric Company (PG&E) and the U.S. Department of Energy (DOE) have made to participate in the Climate Challenge Program in pursuit of the President's goals for reducing greenhouse gas emissions. The Climate Challenge Program is a joint, voluntary effort of DOE and the electric utility industry to reduce, avoid or sequester greenhouse gas emissions. The framework of the Climate Control Program was established in the Climate Challenge Program Memorandum of Understanding and exhibits thereto dated April 20,1994 (the Climate Challenge Program MOU) (see Attachment A to this Participation Accord).

As early as 1977, PG&E began reducing CO₂ emissions by fuel switching to natural gas. Our 1993 CO₂ emissions were 50% below those of 1977 and our CO₂ emission rate in lbs/kwh declined by about 50%. PG&E is one of the lowest CO₂ emitting utilities in the U.S. Our Current CO₂/kwh emission rate is about one-third that of the national average. L PG&E's Achievements and Commitments

A.
Consistent with paragraph II.B.1(f) of the Climate Challenge Program MOU, PG&E has and will continue to undertake specified or similar programs, as listed in PG&E's filing with the California Public Utilities Commission, or activities to reduce greenhouse gas emissions, as described below:

1.

Since 1990 PG&E has invested a total of $l.069 billion in Customer Energy Efficiency (Demand-Side Management) Programs. The cumulative effect has resulted in energy savings which now equate to more than 2.7 million kilowatt hours (kwb) of electricity, 7 billion cubic ft. of natural gas, and 1.2 million tons of CO₂ per year. On April 2Q, 1994, The California Public Utilities Commission released its proposal to restructure and deregulate California's electric utility industry. Deregulation and competition could have a significant impact upon PG&E's Customer Energy Efficiency Program However, PG&E initiated a collaborative process in August 1994 with major stakeholders, including the environmental community, regulatory sta fs, customers and business representatives. PG&E's future commitment on the outcome of this proposal.
2.
In 1993 PG&E and the City of Davis replaced 150 watt incandescent traffic signals with 25 watt light emitting diodes This 83% reduction in electricity use results in savings of about $1,000 per intersection per year.

3.
In 1994 the first super-efficient and chlorofluorocarbon (CFC) free refrigerator was installed in the White House. These refrigerators are now available to the public at competitive prices. PG&E led a national collaborative involving 25 utilities and various other groups that led to the development of this refrigerator. In October 1994 PG&E and the other parties filed an agreement with the Department of Energy proposing that by 1998, all refrigerator manufacturers adhere to the standards initiated by this program.
4.
U.S. Windpower, with support from PG&E and other utilities, has developed and field tested variable speed wind turbines which are expected to reduce wind energy cost to a commercially competitive 5 cents per kwh rate. In 1994 total wind energy generation in Northern California almost doubled to a level equivalent to annual savings of half a million tons, of CO₂ per year.
5.
PG&E has replaced many of its pipeline pressure-activated devices with products that release less or no natural gas. These efforts, coupled with ongoing pipeline leak inspection and repair/ replacement efforts, are projected to reduce natural gas emissions from pipelines by at least 100 million cubic ft. per year by the year 2000, saving at least 40,000 to 60,000 tons of CO₂ equivalents per year.
6.
By 1993 PG&E's energy efficiency programs had reduced capacity growth by 1,018 mw since 1990. In 1993 PG&E projected that it would capture an additional 2,500 mw by 2000. Had this projection remained viable, we would have reduced CO₂ emissions cumulatively by 15 million tons by 2000. Because of restructuring and deregulation, it is likely that these numbers will be reduced by as much as 1,000 mw and 4 or 5 million tons by 2000. We are hopeful our redesigned energy efficiency program for 1995 and beyond will still deliver Significant energy savings and CO₂ emissions reductions over the coming years.
7.
PG&E will continue as appropriate to participate in:

- The EPA Green Lights Program
- The EPA Natural Gas Star Program
- The Natural Gas Vehicle Coalition
- The Customer Clean Air Coalition

The Natural Gas Vehicle Coalition was designed by PG&E and the other California gas utilities to develop consistent rules, regulations, and standards which will aid in the commercialization of natural gas vehicles.

The Customer Clean Air Coalition was developed by PG&E to assist fleet owners in evaluating the benefits of natural gas and electric vehicles over conventional fueled vehicles and in optimizing the design of refueling facilities.

B.
PG&E will report 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) Energy Policy Act and the Climate Challenge Accounting Protocols in Exhibit B of the Climate Challenge Program MOU. The first such report may include a description of the activities and achievements of the PG&E prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.
C.
PG&E will confer with DOE on or before July 1,1996 to evaluate jointly the progress of the Utility in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.
D.
The Climate Challenge Program representative for PG&E will be John F. McKenzie, Room 2442,77 Beale Street, San Francisco, California 94105. PG&E agrees to notify DOE prior to or, in any event no later than 30 days after any changes in the contact.

II. DOE Commitments

A.
DOE's commitments to PG&E are those set out in section III of the Climate Challenge Program MOU, which are hereby incorporated in this Participation Accord by reference.
B.
DOE will consider PG&E requests to intervene in regulatory 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 PG&E for purposes of addressing Climate Challenge Program issues, it will provide notice to PG&E.
C.
DOE will provide an annual report to PG&E describing the actions that it has taken to fulfill its commitments under section III and Exhibit C of the Climate Challenge Program MOU and the results of those actions.
D.
The. Climate Challenge Program representative for DOE, who will serve as liaison to PG&E, will be Allan Hoffiman. DOE agrees to notify PG&E prior to or, in any event, no later than 30 days after any change in liaison responsibilities or personnel.

A.
Use of DOE-developed materials by PG&E will be governed by the provisions of section IV of the Climate Challenge Program MOU, which are hereby incorporated in this Participation Accord by reference.
B.
In addition to the foregoing provisions, DOE and PG&E 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 VA-VD, 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.

Pacific Gas & Electric Company

_________________[date]

(Original signed by)
_____________________________
Secretary of Energy or designee
U.S.. Department of Energy

_________________[date]

Attachment:

Attachment A - Climate Challenge Program MOU and exhibits

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