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 (Climate Challenge MOU) dated April 20, 1994 (see Attachment A to this Participation Accord).

This Participation Accord describes the actions that the South Carolina Public Service Authority (Santee Cooper) and DOE have committed to undertake under the Climate Challenge Program. Santee Cooper's commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE's commitments include specific actions designed to assist Santee Cooper in achieving its Climate Challenge Program commitments.

I. Santee Cooper commitment

A.
Consistent with paragraph II.B.1. and Exhibit B of the Climate Challenge Program MOU, Santee Cooper commits to undertake or continue the following projects and activities that will result in a reduction of greenhouse gas emissions through the year 2000:

1)

Santee Cooper committed funds to upgrade its Cross Station unit 2 turbine in December 1992. This upgrade improved steam path flow, improved intermediate turbine efficiency, and improved efficiency of the low pressure turbines on this 520 Mw unit. This upgrade resulted in an increase in generation of approximately 20.7 Mw at full load without increasing the energy requirements for the unit. From 1993 through the year 2000, this upgrade is expected to reduce CO₂ emissions by approximately 1,250,000 tons. In the year 2000, this upgrade is expected to reduce CO₂ emissions by approximately 160,000 tons compared with emissions in 1990.
2)
Santee Cooper has committed funds to upgrade Summer Nuclear station. Beginning in December of 1994, approximately 20 Mwh of coal fired generation will be displaced with Nuclear generation as a result of this upgrade. From 1995 through the year 2000, it is estimated that Santee Cooper's CO₂ emissions will be reduced by approximately 1,000,000 tons. In the year 2000, this upgrade is expected to reduce CO₂ emissions by approximately 160,000 tons compared with emissions in 1990.
3)
Santee Cooper has established Demand Side Management programs. Descriptions of these programs are included in attachment B. From 1991 through 1994, these DSM programs reduced coal fired generation by approximately 23,700 Mwh. Santee Cooper commits to the continuation and expansion of its DSM efforts as appropriate. From 1991 through the year 2000, approximately 245,000 tons of CO₂ are expected to be reduced as a direct result of DSM programs. In the year 2000, DSM activities are expected to reduce CO₂ emissions by approximately 95,000 tons compared with emissions in 1990.
4)
From 1991 through 1994, Santee Cooper planted approximately 900,000 trees. Santee Cooper will plant an estimated 335,000 trees from 1995 through the year 2000. It is estimated that these trees will sequester approximately 22,500 tons of CO₂ from 1991 through the year 2000. In the year 2000, forestation activities are expected to reduce CO₂ emissions by approximately 4,000 tons compared with emissions in 1990.
5)
Santee Cooper commits to the continued promotion of use of its coal combustion by-products. From 1991 through 1994, approximately 120,000 tons of Santee Cooper's fly ash were utilized by the cement industry. From 1995 through the year 2000, Santee Cooper anticipates 185,000 tons of fly ash to be utilized by the cement industry. An approximate reduction of 152,000 tons of CO₂ is expected from Santee Cooper's efforts in fly ash utilization from 1991 through the year 2000. In the year 2000, this fly ash utilization are expected to reduce CO₂ emissions by approximately 15,500 tons compared with emissions in 1990.
6)
Santee Cooper commits to continue participation in EPA's Green Lights Program, and to upgrade lighting systems that meet economic criteria specified in Santee Cooper's Memorandum of Understanding with EPA.
7)
Santee Cooper commits to evaluate other greenhouse gas emission reduction programs, projects, and strategies. These projects may include landfill methane gas utilization, electric vehicle utilization, and expansion of DSM programs (ie. ground source heat pumps, load control air conditioning, premium efficiency motors, and high efficiency lighting). Santee Cooper will adopt appropriate greenhouse gas emission programs if they are cost effective and consistent with Santee Cooper's integrated resource planning process. Santee Cooper will describe in its annual report to DOE the results of its evaluation.
B.
Santee Cooper 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 Santee Cooper prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.
C.
On or before June 30, 1996, Santee Cooper will meet with DOE regarding its participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate Santee Cooper'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 Santee Cooper will be the Manager of Environmental Services, Phil Pierce, PE. His office is located at 1 Riverwood Drive in Moncks Corner, SC. Santee Cooper 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.

The Climate Challenge representative for DOE will be Mr. Allan Hoffman, US DOE, 1000 Independence Avenue, N.W., Room 6B-128, Washington D.C. 20585. DOE will notify Santee Cooper prior to or, in any event, no later than 30 days after any change in the representative.

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 Santee Cooper for purposes of addressing Climate Challenge Program issues, it will provide notice to Santee Cooper.

To the extent permitted by applicable law and regulation and by the availability of funds, DOE will consider Santee Cooper's participation in Climate Challenge as a factor to be weighed positively in evaluating applications for financial or other assistance submitted to DOE in support of commitments made by Santee Cooper under this Participation Accord.

DOE agrees to provide public recognition to Santee Cooper 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 Santee Cooper.

A.
Use of DOE-developed materials by Santee Cooper will be governed by the provisions of section IV of the Climate Challenge MOU.
B.
In addition to the foregoing provisions, DOE and Santee Cooper agree to act in accordance with the principles set forth in section I of the Climate Challenge Program MOU and the general provisions set forth in subsections V.A. - V.D., V.F. and V.G. of the Climate Challenge 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.

   (Origianl signed by)
____________________________________________	date ___________
T. Graham Edwards, President and CEO
Santee Cooper



   (Origianl signed by)
____________________________________________	date ___________
The Honorable Hazel R. O'Leary, Secretary of Energy
United States Department of Energy

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