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 (Attachment A to this Participation Accord).

Seattle City Light (SCL), a department of the City of Seattle, is one of the nation's largest municipally-owned utilities, serving over 333,000 customers.

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

I. Utility Commitments

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

1. Meet all load growth over the next ten years with Demand-side Management

The City of Seattle has established Conservation as its highest priority energy resource. Seattle City Light committed in its latest Energy Resources Strategy (published 1992) to use demand-side programs to meet all expected load growth over the next ten years (1993-2003). This represents about 75 aMW in the year 2000. Competitive forces and changes in regional mechanisms for conservation funding may cause SCL to reevaluate its conservation goal, the mix of demand-side management (DSM) programs and/or the program timing. See Attachment B for a list of planned programs.

SCL has completed formal evaluations of DSM programs implemented from 1991 to 1993. These evaluations show that SCL saved 278,366 Mwh of electricity during that period, equivalent to avoiding 120,365 tons of CO₂ emissions.

DSM actions undertaken between 1991-2000 are projected to result in the following annual savings in the year 2000:

RESIDENTIAL: 174,263 Mwh; equivalent to 75,351 tons of CO₂ avoided;

COMMERCIAL: 325,463 Mwh; equivalent to 140,730 tons of CO₂ avoided; and

INDUSTRIAL: 153,304 Mwh; equivalent to 66,288 tons of CO₂ avoided.

TOTAL DSM: 653,030 Mwh; equivalent to 282,370 tons of CO₂ avoided.

From 1991 to 2000, actions undertaken since 1991 will save a cumulative 3,334,095 Mwh; this is equivalent to 1,441,662 tons of CO₂.

2. Undertake System Efficiency Improvements

SCL commits to undertake the efficiency upgrades described in Attachment C, subject to continuing funding sources.

Formal evaluations of electricity savings from system efficiency improvements undertaken from 1991 to 1993 demonstrated savings of 30,853 Mwh. This is equivalent to 13,341 tons of CO₂.

In 2000, system efficiency upgrades will avoid 39,886 tons of CO₂ by saving 92,243 Mwh of electricity in that year.

From 1991 to 2000, SCL expects to avoid 194,997 cumulative tons of CO₂ by saving 450,965 Mwh through system efficiency improvements undertaken during that period.

3. Construct the South Fork Tolt Hydroelectric Project

This project (FERC Project No. 2959) takes advantage of a 30 year-old water supply reservoir owned and operated by the Seattle Water Department. Water from the reservoir (which supplies one-third of Seattle's drinking water) will be run through a turbine for electric generation before undergoing treatment for drinking water supply. This resource is expected to come on-line in late 1995 and to generate 8.4 aMW (73,584 Mwh), and avoid 31,818 tons of CO₂ each year thereafter, including the year 2000.

CO₂ emissions avoided cumulatively from 1995 to 2000 are estimated to be 159,089 tons.

4. Purchase land and preserve it for wildlife habitat

Since 1992, SCL has purchased over 5,000 acres of forest lands, in accordance with Settlement Agreements negotiated with several agencies, Native American tribes and an environmental group. These agreements were entered into voluntarily in preparation for relicensing SCL's Skagit Hydroelectric Project.

For at least the life of the license (30+ years) SCL will allow these forests to mature and be preserved for wildlife habitat. These properties would otherwise have been logged or developed. Also, SCL has committed to spending $7 million in the next two years to purchase and manage additional parcels to preserve similarly.

In addition, 88 acres adjacent to our existing wildlife preserve near SCL's Boundary Hydroelectric project were recently purchased.

See Attachment D for a description of land purchases for Skagit and Boundary relicensing.

Presently, SCL does not have estimates of the amount of CO₂ that will be sequestered by these actions. A net increase in CO₂ sequestration is expected through the preservation of these forests for wildlife as compared to their continued management for periodic timber harvest.

5. Continue SCL's Urban Tree Replacement program

By the year 2000, SCL commits to plant at least 7,500 trees through this program, which was initiated in 1994 to replace trees removed to open up and maintain line clearance. This program is community based and provides an excellent example of collaboration between municipal agencies, community councils and youth corps groups to plant trees. Over the last few months, 713 trees have been planted in two communities. This effort is subject to continuing funding sources.

Presently, SCL does not have estimates of the amount of CO₂ that will be stabilized or sequestered by these actions.

6.Consider joining the Public Power Initiatives

Subject to availability of funding, SCL commits to becoming a charter utility member in the Public Power Initiatives, which are cooperative joint ventures being developed for effective GHG mitigation by a wide cross-section of public power entities. SCL may participate in specific initiatives (such as combined purchasing of efficient and innovative technologies) that are applicable and cost-effective in the SCL system.

No estimates of CO₂ reductions are possible at this time.

7.Other

SCL will continue to investigate and implement additional appropriate strategies to reduce, avoid and sequester GHG emissions such as using renewable and efficient technologies, waste-minimization, recycling, tree-planting and habitat preservation.

Note:
The estimates of avoided CO₂ presented above assume that an efficient, natural gas-fired Combined Cycle Combustion Turbine (CCCT) would have been utilized in the absence of these programs or actions. All estimates are in short tons.
B.
SCL 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 SCL 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 June 30, 1997, SCL will meet with DOE regarding its participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate SCL'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 SCL will be Lynn Best, 1015 Third Avenue (EHS), Seattle, WA. 98104. SCL will notify DOE prior to or, in any event, no later than 30 days after any change in the contract.

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

III. General Provisions

A.
Use of DOE-developed materials by SCL will be governed by the provisions of section IV of the Climate Challenge MOU.

B.
In addition to the foregoing provisions, DOE and SCL 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)
______________________________          _______________
Seattle City Light		             Date



     (original signed by)
______________________________          _______________
U.S. Department of Energy		     Date

SCL has pursued conservation programs as its highest priority energy resource since 1977. SCL's long term energy resources strategy is to meet all load growth over the next 10 years (1993-2003) with demand-side management (DSM) programs. Below is a short description of the major DSM programs SCL has operated since 1991 or has planned for the near future. These (or similar) programs will make up the conservation resource in the future. They provide significant potential for avoiding Greenhouse Gas (GHG) emissions since they defer or avoid construction of new thermal generation resources.

The programs are organized by sector and generally listed in order of the size of their measurable contribution to the conservation goal. Currently, most of them are cooperatively funded with the Bonneville Power Administration. Only the major programs active after 1990 are included in this list. The calculations of total avoided CO₂ emissions in this document cover only savings for measures installed after 1990, but do include continued savings throughout the life of the conservation measure.

RESIDENTIAL SECTOR:

Home Water Savers Program

This program, begun in 1992, is a cooperative effort between several City departments and other agencies. It provides efficient showerheads, faucet aerators, and other water saving devices and informational materials. It also provides direct installation of the energy conservation measures in multifamily buildings. Market saturation is expected in 1995.

Low Income Electric Program (LIEP)

Through this program, weatherization grants are provided to low-income electrically-heated households for measures such as under floor insulation. Money for home repairs is included to ensure that the savings are realized. This program alone has saved 3 to 4 aMW each year in the last several years.

Multifamily Conservation Program

This program provides financial and technical help to owners of apartment buildings with electric space-heat. The conservation measures included are building insulation, common area lighting and efficient water heaters. Standard-income building owners qualify for a ten year zero-interest loan. Low-income building owners receive a full-cost grant, as long as the owner signs an agreement to not raise rents due to the conservation measures for a period of five years. In the last few years this program has reached more than 2,000 households, annually.

Warm Home Program

Begun in 1994, this program offers free insulation and financial assistance for installing efficient windows in electrically heated homes, including rental property. This program is a revised version of the Home Energy Loan Program (HELP), which ran until 1993 and saved 2 to 3 aMW each year.

Multifamily Super Good Cents Program

This is a "beat the code" program designed to encourage builders of new multi-family buildings with electric space heat to exceed provisions of the Washington State Energy Code. In 1993, almost 2,000 apartment units were contracted through this program.

Energy Efficient Water Heater Rebate Program (EEWHRP)

Begun in March 1992, the EEWHRP is an effort to "beat the standard" by offering rebates for installing an energy efficient model during normal replacement. The target population is all residential customers and includes common area laundry rooms in multifamily buildings. In 1993, there were almost 8,000 participants in this program.

COMMERCIAL & INDUSTRIAL SECTOR

Energy Smart Design

This program offers technical and financial assistance to building owners and developers for installing conservation measures to increase energy efficiency of new and remodeled commercial and governmental buildings. In 1993, this program alone saved about 13 aMW of electricity.

Energy Management Survey Program

Through this program, SCL's analysts provide commercial and industrial customers with facility energy surveys, and recommendations for energy-efficient measures. This program ran from 1984 through 1992 and saved an average of 4 aMW each year.

Energy Savings Plan (E$P)

This is a retrofit program for the industrial sector. The program pays financial incentives for energy conservation improvements in manufacturing, processing and refining industries. This program has saved 1 to 2 aMW per year.

Street & Area Lighting Program

This program provided replacement of mercury vapor streetlights with energy efficient high pressure sodium luminaires throughout the City. This program reached market saturation in 1992.

Industrial Research & Demonstration Project (IRDP)

The central purpose of the IRDP was to test energy savings and cost-effectiveness in a set of fifteen pilot industrial retrofit projects. The measures were installed with SCL providing up to 70% of the cost of the energy conservation measures. This R&D project was completed in 1993.

Lighting Design Lab

The objective of the Lab is to provide energy-efficient lighting options to a wide variety of lighting professionals in the commercial sector. It is a regional support service for technical assistance and demonstrations concerning efficient lighting. It has won several regional and national awards for its contribution. In 1993 alone, the Lab had almost 7,000 participants.

The Lighting Design Lab is jointly funded by several Northwest and Canadian utilities, BPA, the Washington State Energy Office and the Northwest Public Power Council.

Northwest Energy Code Program

This program provides funding for inspection-based enforcement of the Seattle Energy Code and comparison to the alternative Model Conservation Standards for commercial buildings as well as multiplex residences with electric space heat. Each year the program has more than 1,300 participants from the commercial sector.

SCL commits to undertake the following system upgrades by the year 2000 and thus avoid emitting in the year 2000, a total of 39,886 tons of CO₂. The actions are listed in order of magnitude of the estimated amount of CO₂ expected to be avoided in 2000. The timing of these projects and the level of effort assume continued funding sources.

Turbine Runner Replacements

19,621 tons of CO₂

Starting in 1995, Seattle City Light will replace old turbine runners at its Skagit and Boundary dams with more efficient ones. The result will be higher efficiency of hydro turbines. A modest efficiency gain of roughly 0.5% is expected.

Individual Hydro-generator Unit Control

8,068 tons of CO₂

Hydraulic turbines are designed to operate most efficiently at specific hydraulic head and flow levels. In fact, these two parameters vary significantly in an operating year, meaning individual turbines do not always operate at their peak efficiency. Since there are many, many different turbines in the system, the probability of them operating at other than their optimum design points is high.

Now, all units in a powerhouse operate under group (not individual) control. When plant output varies, all the units in that group vary in unison and at the same rate. For example, instead of running two units, the control system will run all three units at a very low point on their efficiency curves.

Beginning in 1996, Seattle City Light will increase the output of its power system by means of a computer-based program which will dispatch each individual hydro turbine in order to achieve best overall system efficiency at any point in time and over the entire year. This will enable us to produce more energy than we have in the past with the same amount of water. This program is a companion to the Skagit River Reservoir(s) Optimization program.

Service Voltage Reduction

5,644 tons of CO₂

Service voltage at customer service entrances is required to be in a range of 116 - 124 volts AC. A project is planned to begin in 1999 to “tighten” that range to 116 - 120 Volts AC. The expected result will be savings of approximately 1% of aggregate utility load when the equipment modifications become operational throughout the entire distribution system

Generator Rewind and runner replacement at Cedar Falls

2,121 tons of CO₂

When insulated wire on generator windings ages, one of the first things to break down is the insulation. Beginning in 1995, Seattle City Light plans to rewind generators in such a way as to improve their efficiency. The gains can be achieved both through rewinding technique and core modifications carried out at the same time. The result is higher energy production for the same amount of water.

Skagit River Reservoir(s) Optimization

1,705 tons of CO₂

This project, planned to begin in 1996, will schedule hydraulic flows to the various powerhouses using a computer. The river flows and reservoir levels will be optimized while still providing flows required to meet environmental responsibilities. This program is a companion to Individual Hydro-generator Unit Control program.

Optimization of Feeder Loads

1,705 tons of CO₂

Losses from Seattle City Light’s distribution system are estimated to be about 2% of load, and are dependent on distribution equipment and feeder circuit routing. Unbalanced current flowing in the three phases of distribution feeders can be leveled and associated losses thereby reduced. Seattle City light plans to implement such a program, beginning in 1995, on its entire distribution system.

4kV to 26kV Distribution System Conversion

1,023 tons of CO₂

Seattle City Light will continue, until 2001, its program of increasing the voltage level in its distribution system from 4,000 to 26,000 volts. Doing so will reduce distribution system amperage levels, which will in turn reduce losses on the distribution system.

SKAGIT

The following parcels of land have already been purchased to be preserved for wildlife habitat as part of the mitigation plan for SCL's Skagit Hydroproject relicensing process. SCL commits to leave the parcels in their natural state, allowing them to regenerate and grow into mature forest.

Most of the property was purchased from timber companies, whose plans were to harvest on a regular schedule, usually every 40 - 50 years.

SCL does not currently have estimates of the amount of CO₂ that will be sequestered by these actions. A net increase in CO₂ sequestration is expected under the preservation of these forests for wildlife habitat as compared to their management for periodic timber harvest.

South Fork Nooksack River Basin

West side of Cascade Mountains, in Skagit County

690 acres, purchased in 1992

3301 acres, purchased in 1993

Skagit River Basin West side of Cascade Mountains, in Skagit County

688 acres, purchased in 1993

Illabot Creek Corridor

West side of Cascade Mountains, in Skagit County

373 acres, purchased in 1993

BOUNDARY

East side of Cascade Mountains, in Pend Oreille County

88 acres, purchased in 1994

This parcel is adjacent to, and thus enhances, our existing 155 acre wildlife preserve near SCL's Boundary Hydroelectric project.

Pending Purchases

As part of SCL's land acquisition program relating to the Skagit Hydroproject, SCL committed to spend over $19 million (1993 $) on land purchases and management. The remaining balance of approximately $7.1 million (1993 $) will be spent in 1995 and 1996 on the purchase and management of lands that have yet to be identified. One potential purchase has been identified.

320 acres - West side of Cascade Mountains, in Skagit County The Nature Conservancy has purchased this acreage with the intent of selling it to SCL after SCL receives a new operating license from the FERC for the Skagit Hydroproject. This property is located along Illabot Creek, and follows the basic description as the other 373 acres along the same drainage, as described above.

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