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Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

Climate Challenge Participation Accord
between
Sacramento Municipal Utility District (SMUD)
and the
United States Department of Energy

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) (See attachment A to this Participation Accord).

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

I. SMUD COMMITMENTS

A. Consistent with paragraph II.B.1.b and Exhibit B (Supplemental Guidance on Commitment Definitions and Reporting) of the Climate Challenge MOU, SMUD commits to reduce by the year 2000, CO2 emissions to seventy percent (70%) of the 3.9 million tons produced in our 1990 baseline year. These reductions come from our primary business activities of generating, procuring, distributing, and selling electricity. The 1990 baseline level and the 2000 commitment include emissions from SMUD generation facilities and emissions associated with purchased power. The thirty percent reduction will be accomplished through a combination of supply and demand side programs as discussed below:

    1. DEMAND SIDE MANAGEMENT - SMUD's energy efficiency and conservation DSM programs which contribute to the CO2 emission reductions under this accord will save 767 GWh per year for our customers by the year 2000. These programs include:

      a. Residential Retrofit programs including energy audits, energy efficient lighting, attic insulation, whole house fans, sun screens, etc., for target building profiles.

      b. Residential and Commercial New Construction energy efficiency upgrade programs in excess of state and local code requirements.

      c. Home Appliance Efficiency programs including energy efficient refrigerator rebates and "Golden Carrot" program, energy efficient heat pump and air conditioner rebates.

      d. Commercial and Industrial Energy Management Services programs includingefficient lighting, lighting/load controls, and efficient electric motors.

      e. Residential Solar Hot Water program.

      f. Shade Tree Program planting 500,000 trees in the Sacramento area by the year 2000.

    2. SUPPLY SIDE RESOURCES - Efficiency gains in fossil fueled supply. side resources are an important initial part of our Climate Challenge Program. However, renewable resources offer lasting reductions in CO2 emissions. SMUD will use the opportunity afforded by this voluntary Climate Challenge program to promote the use and general availability of renewable, environmentally compatible, and economically viable electrical generation resources.

    SMUD's supply side CO2 reduction projects include:

    a. Four high efficiency, natural gas fired, combined cycle, cogeneration projects will be built in the SMUD service area in the next three years. The electrical output from these projects will be used by SMUD to replace electricity currently purchased from other utilities and generated at older less efficient plants. Due tositing in our service territory, transmission losses will also be reduced. One 97 MWe project will be on line in 1995, and three more projects totaling 420 MWe will come on line in 1997. Advanced gas turbine cycle and fuel cell projects are potential projects in SMUD's resource plan which could reduce greenhouse gas emissions even further.

    b. Renewable energy projects committed to be added to SMUD's existing hydro and geothermal energy resources include: Wind turbines, 5 MW in 1994, plus 45 MW in 1996; grid connected Photovoltaics, 1 MW per year through the year 2000; Biomass, 43 MW in 1995. Additional wind, solar thermal, and photovoltaicsprojects are included in our resource plan as potential projects awaiting development late in this decade and early in the next.

B. Consistent with paragraph II.B.1.f and Exhibit B of the Climate Challenge MOU, SMUD has initiated specific projects outside of our primary business of generating, procuring, distributing, and selling electricity that will reduce net greenhouse gas emissions. These programs include:
    1.A commitment to reduce job related vehicle miles traveled by our employees. 310 car/van pools will be in place by 2000. This will reduce CO2 emissions by 1600 tons per year in 1997, and 2100 tons per year in 2000. Meter reading routes with schedules optimized to reduce vehicle miles traveled, will save 200,000 miles per year, or 86 tons of CO2 per year

    2. SMUD is committed to a Shade Tree program which sequesters carbon in addition to saving energy. The energy savings potential for this program is included in DSM programs in paragraph A.1.f. above. The 500,000 trees planted in this program between 1991 and the year 2000 will sequester 42,000 tons of C02 equivalent by the year 2000.

    3. SMUD is committed to an Electric Vehicle development program which will reduce net C02 emissions of SMUD fleet vehicles by 5,000 tons per year by the year 2000. Additional direct and indirect reductions in emissions from non-SMUD vehicles will also accrue. Participation in `"EV America" is a part of our Electric Vehicle program.

    4. Additional CO2 reduction strategies may include the following:

    a. Participate in Public Power Climate Challenge initiatives as applicable and cost justified, and

    b. When economically justified, initiate changes to the transmission and distribution system which will decrease losses.

C.
    1. SMUD will report to DOE annually on activities and achievements under the Climate Challenge Program. Annual greenhouse gas emissions attributable to SMUD and emission reductions achieved in that year attributable to the programs in SMUD's greenhouse gas reduction program will be reported consistent with EPACT section 1605(b) reporting guidelines and Exhibit B to the Climate Challenge MOU. Baseline emissions will also be reported consistent with 1605(b) guidelines and Exhibit B to the Climate Challenge MOU.

    2. Assumptions concerning the origin of and greenhouse gases attributable to, generation of electric power which SMUD has purchased or will purchase from other power sales entities or generators will be made by SMUD. Such assumptions will be consistent with the spirit of reducing net greenhouse gas emissions to the earth's atmosphere, and will be based on the best information which SMUD has.

D.
    At reasonable intervals upon request but not later than March 19, 1997, SMUD will confer with DOE to evaluate jointly SMUD's progress in achieving its Climate Challenge Program goals, and to discuss possible adjustments to its voluntary commitments based on the availability of reasonable, cost justified activities for reducing greenhouse gas emissions.
E.
    The Climate Challenge representative for SMUD will be Mr. H.I. Bud Beebe, c/o SMUD, Mail Stop 99, 6201 S Street, Sacramento, California 95817-1899. SMUD will notify DOE prior to or no later than 30 days after any change in contact information.

II. DOE Actions

    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, U.S. Department of Energy Rm. 6B-128, 1000 Independence Ave. S.W., Washington D.C. 20585; Phone 202 586-1786. DOE will notify SMUD 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 SMUD for purposes of addressing Climate Challenge Program issues, it will provide notice to SMUD.
    D.
      To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider SMUD'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 SMUD under this Participation Accord.
    E.
      DOE agrees to provide public recognition to SMUD 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 SMUD.
III. GENERAL PROVISIONS
    A.
      Use by SMUD of DOE developed materials will be governed by the provisions of section IV of the Climate Challenge MOU.
    B.
      In addition to the foregoing provisions, DOE and SMUD 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)
_____________________________________                 ___________
Sacramento Municipal Utility District                 Date


   (Original signed by)
_____________________________________                 ____________
U.S. Department of Energy                             Date



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