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, (Climate Challenge MOU). (See Attachment A to this Participation Accord.)

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

I. Tacoma's Commitments

A.
Consistent with paragraph II.B.1 and Exhibit B of the Climate Challenge MOU, Tacoma has implemented or will implement the following programs and specific activities.

1.

Efficiency Improvements at Existing Hydroelectric Facilities

Hydropower generation of electricity has been increased by modernizing and upgrading turbines at seven turbine generator installations resulting in a minimum four percent efficiency gain. The first of these seven turbine runner replacements was completed in November 1991. Tacoma commits to upgrading two additional turbine runner replacements by the year 2000. This will enable Tacoma to produce more energy than it has in the past with the same amount of water. Increasing the efficiency of hydroelectric generating plants can potentially result in avoidance of greenhouse gas emissions. In the year 2000, system efficiency upgrades will avoid 8,963 tons of carbon dioxide (CO2) by saving 15,400 Mwh of electricity in that year.

From October 1991 to year 2000, Tacoma expects to avoid 45,632 cumulative tons of C02 by saving 78,406 Mwh of electricity through system efficiency improvements.

2.
Forest Carbon Management Project - Purchase Land and Preserve it for Wildlife Habitat

Tacoma has purchased 6,855 acres of forest lands in accordance with settlement agreements negotiated with several agencies. These agreements were entered into voluntarily during the relicensing of Tacoma's Cowlitz Hydroelectric Project. A portion of this acreage (2,212 acres) is reforested commercial timberland. For at least the life of the license (30+ years), Tacoma will allow these forests to mature and be preserved for wildlife habitat. These properties would otherwise have been logged or developed.

In 1995, Tacoma will plant 45,000 mixed evergreen trees (fir, hemlock and cedar) on the remaining 4,643 acres, thereby converting recently harvested commercial timberland to wildlife land. Tacoma has ordered an additional 90,000 trees for out-planting in 1997 and anticipates planting an average of 60,000 or more trees in each of the following three years. This tree replacement effort will create new carbon sinks.

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

3.
Hydropower Capacity at Existing Impoundments - Wynoochee Dam

Hydroelectric Project

Developing energy production from existing impoundments can result in a decreased need for fossil fuel generation. Tacoma developed the hydropower potential of an existing dam on the Wynoochee River to help meet increasing needs for energy. The 12.8 megawatt project, which commenced commercial operation on January 7, 1994, provides a new source of electricity with virtually no environmental impact and at a reasonable cost. The resource is expected to generate an average 37,200 megawatt hours annually and avoid 21,650 tons of C02 each year. C02 emissions avoided cumulatively from 1994 to 2000 are estimated to be 129,902 tons assuming 223,200 Mwh for the period January 1994 to year 2000.

The Wynoochee Dam Hydroelectric Project refits an existing United States Army Corps of Engineers dam originally built to provide industrial water storage for the City of Aberdeen, flood control, and fisheries flow enhancement. Under an agreement between Tacoma and the City of Aberdeen, Aberdeen assumed ownership of the dam and Tacoma developed and owns the hydroelectric project and 100 percent of its power output. The two cities share the cost of operation and maintenance of the dam and hydroelectric project.

4.
Steam Plant No. 2 Repowering Project and Combustion of Biomass

Tacoma's Steam Plant No. 2 Retrofit Project repowered a 50 megawatt mothballed thermal plant, originally built in 1931, with state-of-the-art combustion and pollution control equipment to burn refuse derived fuel (RDF), wood waste and coal. The project, which commenced commercial operation July 1, 1991, efficiently disposes of wood waste and other biomass thus avoiding local storage on unused property, landfilling or combustion in less efficient incinerators. When biomass decays in a landfill, it generates methane gas, a more potent greenhouse gas than CO2.

In 1991, the plant burned 83,319 tons of wood waste and 12,430 tons of RDF; in 1992, 128,906 tons of wood waste and 29,857 tons of RDF; and in 1993, 175,756 tons of wood waste and 48,410 tons of RDF. Utilization of these biomass fuels reduces the quantity of coal consumed at this facility which, according to permit, could be 100 percent of its fuel source. Similar levels of biomass consumption are anticipated in the future.

Fly ash, which once went to a landfill, is now recycled to a cement company where it is used to displace aggregate in the cement manufacturing process. In 1993, all of the 17,456 tons of fly ash produced at the plant was landfilled. During the period January through November 1994, 41 percent of the 11,053 tons of fly ash produced was recycled. It is estimated that 60 percent of the plant's fly ash will be recycled in 1995.

Presently Tacoma does not have estimates of the amount of CO2 and/or methane gas that will be avoided by this recycling effort.

5.
Demand Side Management (DSM)
Tacoma expects continued evolution of its energy conservation programs during the next five years as the Bonneville Power Administration (BPA) reduces the amount of financial assistance that it provides to Tacoma for the implementation of conservation programs and as changes in the utility industry continue to occur. Through the development of its 1995 Integrated Resource Plan, Tacoma will revise and refine its conservation targets from the levels set in 1992. DSM actions undertaken between 1991-2000 are projected to result in a cumulative savings of 117,552 Mwh; equivalent to 68,415 tons of C02. The following describes Tacoma's key conservation efforts.

a.

Commercial/Industrial Sectors

Tacoma's energy conservation efforts in the commercial and industrial sectors includes financial assistance for the replacement of existing energy using equipment with substantially more efficient equipment and systems, or in the case of new construction, upgrading the planned equipment for the building to a level beyond what is required by the Washington State Energy Code.

Tacoma will provide technical assistance, including complete energy use analysis, for a variety of building design or industrial process options. All major electricity using systems in buildings are eligible for financial assistance in the form of both loans and grants, including lighting, refrigeration, heating, ventilation and air conditioning. The program for the industrial sector includes financial assistance for energy efficiency improvements to the industry's processes and materials handling, as well as the lighting and building shell.

b.
Residential

The Light Division will be seeking to achieve savings from three primary energy end uses in the residential sector: space heating, water heating and lighting. The Light Division provides loans and/or grants to owners of electrically heated houses or apartment buildings to cover a portion of the cost of installing insulation on the heating system ducts and in the ceilings, walls and floors. Over 13,000 customers have participated in the program since its inception, producing energy savings of approximately four average annual megawatts as of the end of 1993.

Light Division staff will recommend lighting conservation measures to apartment building owners, develop an estimate of the energy savings that can be achieved by these measures, and calculate an incentive payment (loan or grant and loan combination) for which the owner is eligible. The first full year of operation for this program was 1993.

The lighting program for houses and within apartment units provides for the Light Division to cover a portion of the cost of replacing normal incandescent light bulbs with energy efficient alternatives. This effort, which began in 1994, is expected to be a short-lived program, tapering off as energy efficient lighting becomes more common in residences.

Tacoma offers programs aimed at achieving energy savings from a home's hot water system including both cash incentives to encourage homeowners to purchase high efficiency electric water heaters when their old electric water heater is being replaced and free energy efficient showerheads that are provided to those electric water heater customers that request them. The current showerhead replacement effort follows the 1993 Watt and Water Project under which water-efficient shower heads and faucet aerators were installed in or delivered to 49,000 homes throughout Tacoma's service area in less than six months. The result is an annual savings of nearly 1.4 average annual megawatts of electricity and 187 million gallons of water.

Tacoma offers a Super Good Cents Program for new electrically heated homes. This effort provides financial incentives for builders that construct homes to efficiency levels well beyond those of the Washington State Energy Code.

c.
Military Base

In 1993, Tacoma began a large conservation effort at the Fort Lewis Military Reservation, one of Tacoma's largest customers. The utility, with financial support from BPA, will continue to implement this award winning project, making energy efficiency improvements in as many as 4,500 buildings (a few date back to World War I). Most of the energy savings-to-date have come from new or improved lighting systems, however, improvements to motors and their control systems, heating, ventilating and air conditioning systems, and the Fort's internal electrical distribution system will also be made. Upon completion of the five year project, the Light Division expects energy savings of nearly five average megawatts annually.

Note: The estimates of avoided C02 presented above assume that an efficient natural gas-fired combustion turbine would have been utilized in the absence of these programs or actions. All estimates are in short tons.

B.
Tacoma 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 Tacoma prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.

C.
At reasonable intervals upon the request of DOE but no later than June 30, 1997, Tacoma will meet with DOE regarding its participation in the Climate Challenge Program. The purpose of such meeting will be to evaluate Tacoma'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 Tacoma will be Barbara A. Serr, Post Office Box 11007, Tacoma, Washington 98411-0047. Tacoma will notify DOE prior to or, in any event, no later than 30 days after any change in the contact.

II. DOE Commitments

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, United States Department of Energy, 1000 Independence Avenue Southwest, Washington D.C. 20585; (202) 586-1786. DOE will notify Tacoma prior to or, in any event, no later than 30 days after any change in representative.

C.
DOE will meet with Tacoma 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 Tacoma for purposes of addressing Climate Challenge Program issues, it will provide notice to Tacoma.

E.
To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider Tacoma'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 Tacoma under this Participation Accord.

F.
DOE agrees to provide public recognition to Tacoma 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 Tacoma.

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

B.
In addition to the foregoing provision, DOE and Tacoma agree to act in accordance with the principles set out in section I of the Climate Challenge MOU and the general provisions set out 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.

  (Original signed by)
___________________________			____________________
Tacoma Public Utilities  				 Date


  (Original signed by)
___________________________			_____________________
U.S. Department of Energy			         Date

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