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Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

Southern California Edison Company
P.O. BOX 800
2244 WALNUT GROVE AVENUE
ROSEMEAD, CALIFORNIA 91770 

JOHN E. BRYSON
CHAIRMAN OF THE BOARD AND                                          
CHIEF EXECUTIVE OFFICER
April 17, 1995
The Honorable Hazel R. O'Leary
Secretary
U.S. Department of Energy
Washington, DC 20585

Dear Hazel:

Edison is pleased to submit to you its Climate Challenge Accord, detailing its participation in the President's Climate Challenge Program. As you know, Edison has made substantial greenhouse gas emissions reductions to date including fuel switching much of its generation to burn only natural gas; purchasing renewable energy; and implementing energy efficiency programs. While we may not submit many of these activities since they were completed or initiated prior to 1991, attached you will find a list of qualifying programs that continue our commitment to reducing greenhouse gas emissions.

The programs included in the Climate Challenge Accord demonstrate Edison's commitment to innovative, voluntary and "no regrets" emissions reduction. Reductions come from generation, with the increased use of renewables and emissions reduction programs; energy efficiency; research projects; and customer programs, including electric vehicles and our ENvestSCE program. We anticipate these actions in aggregate will reduce our carbon dioxide (CO2) emissions by two million tons in the year 2000. Approximately eighty percent of our reductions are projected to result from our energy efficiency programs and approximately twenty percent from our renewable energy purchases. Emission reductions from other projects, which cannot yet be quantified will be reported through the annual 1605(b) process.

Edison submits this accord with the understanding that the California Public Utilities Commission has proposed a restructuring of the California electric system, which may have a significant impact on Edison's ability to undertake the activities committed to in this accord DOE and Edison will meet to review this accord in light of any restructuring and consider the need for revisions to the accord.

We look forward to working with DOE on the Climate Challenge Program in the future.

Sincerely,

(Original signed by)
John

Climate Challenge Participation Accord

This Participation Accord describes the commitments that the Southern California Edison Company (Edison) 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 Challenge Program was established in the Climate Challenge Program Memorandum of Understanding and exhibits thereto dated April 20, 1994 (the Climate Challenge MOU) (see Attachment A to this Participation Accord).

I. Edison Commitments

    A.
      Consistent with paragraph II.B. 1 of the Climate Challenge Program MOU, Edison will:
      Undertake actions to reduce Carbon Dioxide (CO2) in the year 2000. Edison will undertake these programs through voluntary "no regrets" actions.

      In order to achieve the commitment(s), Edison will:

      • Participate in Energy Efficiency programs
        Edison has provided energy efficiency programs for its customers since 1972. In 1993, Edison's efforts avoided approximately 970 million kilowatt hours of generation through energy efficiency audits and installations. Since 1991, Edison has saved the equivalent of 3 billion kilowatt hours through energy efficiency programs.

      • Increase Purchases from Renewable Energy Sources
        Edison's dependable renewable resource capacity totals 4312 megawatts. Since 1991, Edison has purchased energy from new renewable resources that total 200 megawatts of nameplate capacity. This new renewable capacity comes from wind, biomass, and geothermal resources.

      • Conduct research activities outlined in the Nov. 1, 1994 MOU with Edison and DOE
        Edison, continuing its long history of research and development of new generating technologies, will focus on new technologies to increase energy efficiency, decrease harmful air emissions and improve productivity for electric customers.

      • Participate in EV America.
        EV America is an electric utility led effort to undertake a large-scale, multi-phased demonstration of electric vehicles and associated vehicle support systems. The goal of the program is to initiate the creation of a self-sustaining market for electric vehicles. Edison has pledged to purchase a minimum of 500 electric vehicles as part of this program.

      • Participate in ENvestSCE.
        ENvestSCE is an innovative Edison program which stimulates customer energy efficiency within our service territory through financial assistance to customers for market based efficiency measures. Edison offers commercial and industrial customers "turn-key" solutions that can reduce energy demand, improve productivity, and meet environmental requirements.

        Detailed descriptions of these programs are included as Appendix B.

    B.

      Edison 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 guidelines adopted pursuant to subsection 1605(b) of the Climate Challenge Program MOU and the climate change 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 Edison prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.
    C.
      Edison will confer with DOE on or before July, 1, 1996 to evaluate jointly the progress of Edison in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.
    D.
      Edison submits this accord with the understanding that the California Public Utilities Commission has proposed a restructuring of the California electric system, which may have a significant impact on Edison's ability to undertake the activities committed to in this accord. At the request of Edison, DOE and Edison will meet to review this accord in light of any restructuring and consider the need for revisions to the accord.
    E.
      The Climate Challenge Program Representative for Edison will be

    Michael M. Hertel, Ph.D.
    Manager, Environmental Affairs
    Southern California Edison Company
    2244 Walnut Grove Ave.
    Rosemead, CA 91770

      Edison agrees to notify DOE prior to or, in any event, no later than 30 days after any change in the contact.
II. DOE Commitments
    A.
      DOE's commitments to Edison 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 Edison 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 Edison for purposes of addressing Climate Challenge Programs issues, it will provide notice to Edison.
    C.
      DOE will provide an annual report to Edison 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 representative for DOE, who will serve as liaison to Edison, will be
    Allan Hoffman
    Department of Energy, Room 6B-128 (EE-10)
    1000 Independence Avenue SW
    Washington, DC 20585

    Phone - 202/586-1786

      DOE agrees to notify Edison prior to, or in any event, no later than 30 days after any change in the liaison responsibilities or personnel.
III. General Provisions
    A.
      Use of DOE-developed materials by utility 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 Edison 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)
John Bryson,
President and CEO
Southern California Edison
April 17, 1995 (date)

(Original Signed By)
Hazel R. O'Leary
Secretary of Energy or designee
U.S. Department of Energy
April 24, 1995 (date)

Attachment A: Climate Challenge Program MOU and exhibits

Attachment B:

  • Energy Efficiency Programs Summary
  • Southern California Edison Renewable Energy Strategy Description and Fact Sheet
  • Memorandum of Understanding between Edison and the Department of Energy on collaborative research activities, November 1, 1994
  • Description and Edison's commitment to the EV America Program Description of Edison's ENVESTSCE program

    MEMORANDUM OF UNDERSTANDING
    BETWEEN THE UNITED STATES DEPARTMENT OF ENERGY
    AND
    SOUTHERN CALIFORNIA EDISON COMPANY

    This Memorandum of Understanding ("MOU") is entered into, by, and between the United States Department of Energy ("DOE") and Southern California Edison Company ("SCE"). DOE and SCE may be referred to individually as "Party" and collectively as "Parties".

      WHEREAS, pursuant to Sections 1202, 3001 and 3002 of the Energy Policy Act of 1992 (the "Energy Policy Act"), Public Law 102-486, DOE has pursued an aggressive partnership program with utilities focusing on the research and development of projects of compelling national or regional interest that will provide advanced generation technologies, increase energy efficiency, improve environmental quality, reduce electricity consumption, offer resource diversity and improve energy demand in management;

      WHEREAS Section 111(a) of the Energy Policy Act encourages electric utilities to make investments in energy conservation, energy efficiency and other demand side management measures;

      WHEREAS SCE has undertaken extensive research developing a variety of fuel efficient technologies, including photovoltaic systems (on-grid and off-grid), solar technology programs, and fuel cells, which emphasize cost-effective applications, reduced infrastructure costs, higher energy efficiency, emissions reductions, reduced dependency on fossil fuels, more stable long-term electricity rates and job preservation in the State of California;

      WHEREAS the Parties seek to enter into cooperative agreements dedicated to the research and development of advanced generation projects that will: result in energy efficiency; improve environmental quality; offer resource diversity and minimize the risk of fuel supply disruption; and

      WHEREAS the Parties desire to participate in a collaborative partnership which wlll promote technologies encouraging production-process and customer energy efficiencies while meeting strict air quality and other environmental improvement requirements.

    NOW THEREFORE, the Parties agree as follows:

    1.

      The Parties agree to undertake collaborative Research, Development and Demonstration ("RD&p;D") activities. The scope and objectives of the collaborative RD&D activities include but are not limited to the following:
      a)
        The development and demonstration of dispersed generation technologies that will offer resource diversity, minimize the risk of fuel supply disruption, and provide significant environmental benefits. The purpose of these technologies is to meet future customer energy requirements.
      b)
        The development and demonstration of alternative and renewable technologies and gas technologies which will focus on ways to increase the efficiency of environmentally sensitive technologies for central station and disperse a generation utilization, and to reduce their costs so they become competitive with other fossil fuel-fired generation technologies. This also includes the recognition by DOE that photovoltaic technology, which enables improved on- site energy demand management, is an acceptable tool for improving the management of energy demand.
      c)
        The establishment of Utility/Industry/Government collaborative research and development partnerships to achieve timely and effective technology transfer. These partnerships are intended to attract new businesses, strengthen and retain existing ones, encourage industrial modernization, and enhance U.S. competitiveness in the global market.
      d)
        The development and demonstration of energy efficient and emission-reduction commercial/industrial technologies which will improve customer efficiency and assist manufacturers and processors in reducing the cost of regulatory compliance.
    2.
      The Parties agree to implement enhanced collaborative RD&D efforts by establishing a Model Cooperative Agreement. The Model Cooperative Agreement will streamline procedures, reduce paperwork, and standardize general terms and conditions for DOE participation in Southern California Edison RD&D projects. The Model Cooperative Agreement will serve as a prototype for ongoing RD&D project collaboration between DOE and SCE, subject to DOE program priorities and budgetary constraints. The Model Cooperative Agreement will not delineate the specific individual RD&D projects, but will set forth the terms and conditions that can be incorporated into individual RD&D project agreements.
    3.
      Consistent with the scope and objectives described in Section I, DOE's participation under this MOU shall include the following:

      a)

        DOE shall, consistent with DOE goals, objectives, and priorities exercise best efforts to secure appropriated funds for collaborative research, demonstration and development of projects developed pursuant to this memorandum, including emerging energy efficiency, air quality enhancement technologies and related projects which will emphasize potential commercialization.
      b)
        DOE shall coordinate its R&D planning efforts with SCE to develop a recommended framework and priorities for RD&D on industrial, commercial and residential customer energy, air quality and other environmental technologies within the scope of this MOU, including the investment and installation of energy conservation and environmental compliance measures including, where appropriate, the use of photovoltaics and other solar technologies.
      c)
        DOE shall promote field testing on the state of the art energy efficiency and renewable technologies described in Section I through cost-shared demonstrations in collaboration with SCE where appropriate. Demonstrated technologies shall include but are not limited to gas turbine engines, fuel ceils, on-grid and off-grid photovoltaic, solar thermal and waste~to~energy applications.
    4.
      Consistent with the scope and objectives described in Section I, SCE's participation under this M0U shall include the following: a)
        SCE shall identify and evaluate the energy technology and emission reduction needs of commercial and industrial customers within its service territory and develop efficient, environmentally-sensitive approaches to meeting these needs. SCE will coordinate these efforts with DOE and, where there is mutual interest and opportunities for regional and/or national applications, SCE will propose collaborative efforts with DOE. As part of this action, SCE shall also identify major commercial and industrial customers for participation in projects covered by this Agreement.
      b)
        SCE shall coordinate all aspects of collaborative RD&D projects, including recommendations regarding energy conservation and emission reduction solutions; securing the installation of photovoltaic, solar thermal and other energy efficient and emission reduction equipment designed to enhance energy savings and environmental quality.
      c)
        SCE shall identify environmentally sensitive alternative and renewable technologies, with emphasis on increasing the efficiency and cost-effectiveness of these technologies for central station and dispersed generation utilization.
    5.
      The Parties agree to conduct an annual conference to review plans for, and subsequent performance of, all activities undertaken pursuant to this MOU. The review will be conducted by the designees of the signatories of this memorandum.
    6.
      Either Party to this MOU may propose to the other Party specific individual RD&D projects for collaboration, consistent with the terms of this MOU. Such proposals may be made at any time, with particular recognition of the budgeting and decision- making schedules of both organizations.
    7.
      The Parties agree to negotiate the Model Cooperative Agreement on terms which are mutually agreed upon. The parties agree to initiate the negotiation process within 30 days of the effective date of this MOU.
    8.
      This MOU is intended to broadly state basic understandings by the Parties. The details of the level of support to be furnished by DOE with respect to funding will be developed in other agreements, subject to the availability of funds. This MOU shall not be used to obligate or commit funds or as the basis for transfer of funds. It is not a contract for the acquisition of supplies or services covered by the Federal Acquisition Regulation or Department of Energy Acquisition Regulation.
    9.
      Subject to the Freedom of Information Act (5 U.S.C. 552), decisions on disclosure of information to the public regarding projects and programs referenced in this MOU shall be made by the DOE following consultation with SCE.
    10.
      Any disputes under this MOU shall be resolved by DOE pursuant to its statutory authorities.
    11.
      This MOU shall not supersede the terms and conditions in effect in current R&D contracts or cooperative agreements between DOE and SCE.
    12.
      This MOU shall be effective on the latter date of the signatures of the Parties and shall continue in effect for a period of five (5) years, or until terminated by mutual agreement or by either party upon 90 days' written notice given to the other Party.
    13.
      This MOU may be amended or extended at any time upon mutual written agreement of the Parties.
    14.
      As a priority course of action, the Parties shall establish a Joint Coordinating Committee. The Committee shall be responsible for facilitating all aspects of implementation of the MOU, including preparation of the
      Model Cooperative Agreement, planning and review of potential collaborative R&D projects and preparations for the annual conference. Within 15 days of the. effective date of this MOU, each Party shall designate its co-chair of the Joint Coordinating Committee.
    IN WITNESS WHEREOF, the Parties hereto have executed this MOU by their respective officers, duly authorized.

    UNITED STATES DEPARTMENT OF ENERGY

    (Original Signed By)
    Hazel R. O'Leary
    Secretary of Energy

    SOUTHERN CALIFORNIA EDISON COMPANY

    (Original Signed By)
    John E.Bryson
    President & Chief Executive Officer



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