Exhibit B
December 5, 1994
CLIMATE CHALLENGE PROGRAM
MEMORANDUM OF UNDERSTANDING
EXHIBIT B
SUPPLEMENTAL GUIDANCE ON COMMITMENT DEFINITIONS AND REPORTING
INTRODUCTION
The Climate Challenge Program is a joint, voluntary effort of the U.S.
Department of Energy (DOE) and the electric utility industry to reduce, avoid
or sequester greenhouse gas emissions (GHG Reductions). Annual reporting by a
Climate Challenge Participant (Participant) of efforts to reduce, avoid or
sequester greenhouse gas emissions shall be consistent with the United States
Department of Energy Guidelines for Voluntary Reporting of Greenhouse Gases
under subsection 1605(b) of the Energy Policy Act of 1992 (Guidelines) and
shall be on Forms EIA-1605 or EIA-1605EZ, Voluntary Reporting of Greenhouse
Gases (Form EIA-1605). This Exhibit B to the Climate Challenge Program
Memorandum of Understanding provides supplement guidance to Climate Challenge
Participants in fulfilling commitment definition and reporting obligations
described in sections II.B.1 and II.B.2 of the Climate Challenge Program
Memorandum of Understanding and section I.A and I.B of the model Climate
Challenge Participation Accord (the Accord).
Participant may provide supplemental information in the Form EIA-1605 report
regarding GHG Reductions resulting from Participant activities initiated prior
to the guidelines and Form EIA-1605's historic baseline period.
In addition to its Form EIA-1605 report, each Participant is urged to submit an
annual report to DOE describing in clear and understandable terms its actions
and achievements under its Accord. Such report may include information
regarding GHG Reductions and issues such as Participant activities that
do not result in quantifiable Reductions, special conditions or factors that
affect achievement of Accord commitments, highlights of lessons learned, or
barriers encountered. Participant may likewise provide similar information to
the public or in its Form EIA-1605 report, over and above that specified in the
guidance provided in this Exhibit.
CLIMATE CHALLENGE PROGRAM MEMORANDUM OF UNDERSTANDING
GUIDANCE ON COMMITMENT TYPES
Section II.B.1.a Make a specified contribution to particular industry
initiatives identified in Exhibit A, "Industry Programs."
Commitment Definition:
- Specify the annual dollar and/or in-kind contribution(s), the year of the
contribution(s), and the Exhibit A Industry Program(s) (Industry Program) to
which the contribution(s) will be made.
Reporting:
- Report annually on Form EIA-1605 the actual amounts contributed to the
Industry Program specified in the Accord.
- Report annually on Form EIA-1605 GHG Reductions resulting from the
Participants contribution in accordance with the allocation of the total
Industry Program GHG Reductions among the Industry Program participants as
specified by the Industry Program sponsor or governing committee.
- If no allocation of GHG Reductions resulting from the Industry Program is
made by the Industry Program sponsor or governing committee, Participant may
report an estimate of GHG Reductions resulting from the Participants
contribution. If a Participant estimate is reported, include discussion of the
method of estimation.
Section II.B.1.b Reduce greenhouse gas emissions by a specified
amount below the utility's 1990 baseline level by the year 2000.
Commitment Definition:
- Specify the Participant's entity-wide 1990 baseline level of GHG
emissions and the amount of entity-wide GHG emissions below the 1990 baseline
level that the Participant will achieve by the year 2000 for the GHG(s)
included in the Accord commitment. If the Accord commitment includes multiple
GHG's, the Participant may express the Accord commitment in terms of
equivalent CO2. If so, specify the source and values of Global Warming
Potential factors utilized.
- Discuss which of the Participant' business activities (generation
of power, purchased power transactions, transmission and distribution of power,
demand side management, use of power production by-products, fleet management,
CFC management, off-site projects or other business activities) are included in
the entity-wide 1990 baseline and the Participants commitment.
- Describe the actions that the Participant has taken or intends to take
toward achieving the specified reduction in year 2000 GHG emissions compared to
year 1990 baseline GHG emissions.
Reporting:
- Report annually on Form EIA-1605 entity-wide GHG emissions as compared to
entity-wide 1990 baseline GHG emissions.
- Report annually GHG Reductions resulting from the individual actions
described in the Accord and any other actions the Participant may choose to
describe.
- If the Accord commitment is expressed in terms of equivalent CO2, include
supplemental information in the Form EIA-1605 report showing the calculation of
total emissions as equivalent CO2.
- Provide information called for in Form EIA-1605 concerning emission data
for 1987 through 1990 and subsequent years, emission factors used to determine
reductions, assumptions about the individual actions described in the Accord,
and data sources in a clear and understandable manner.
- Make clear which of the Participants business activities are
included in the reported emission total.
Section II.B.1.c Reduce greenhouse has emissions to the
utilitys 1990 baseline level by the year 2000.
Commitment Definition:
- Specify the Participants entity-wide 1990 baseline level of GHG
emissions for the GHG(s) to be included in the Accord commitment. If the Accord
commitment includes multiple GHGs, the Participant may express the Accord
commitment in terms of equivalent CO2. If so, specify the source and values of
Global Warming Potential factors utilized.
- Discuss which of the Participants business activities (generation
of power, purchased power transactions, transmission and distribution of power,
demand side management, use of power production by-products, fleet management
CFC management, off-site projects or other business activities) are included in
the entity-wide 1990 baseline and the Participants commitment.
- Describe the actions that the Participant has taken or intents to take
toward reducing GHG emissions to the 1990 baseline level by the year 2000.
Reporting:
- Report annually on Form EIA-1605 entity-wide GHG emissions as compared to
entity-wide 1990 baseline GHG emissions.
- Report annually the GHG Reductions resulting from the individual actions
described in the Accord and any other actions the Participant may choose to
describe.
- If the Accord commitment is expressed in terms of equivalent CO2, include
supplemental information in the Form EIA-1605 report showing the calculation of
total emissions as equivalent CO2.
- Provide information called for in Form EIA-1605 concerning emission data
for 1987 through 1990 and subsequent years, emission factors used to determine
reductions, assumptions about the individual actions described in the Accord,
and data sources in a clear and understandable manner.
- Make clear which of the Participants business activities are
included in the reported emission total.
Section II.B.1.d Reduce greenhouse gas emissions by or to some other
specified level.
Commitment Definition:
- If the Accord commitment is to limit entity-wide GHG emissions to a
specified level, specify the Participants entity-wide GHG emission limit
commitment for the GHG(s) to be included in the Accord commitment in terms of
equivalent CO2. If so, specify the source and values of Global Warming
Potential factor utilized.
- If the Accord commitment is to reduce GHG emissions by a specified level,
specify the GHG Reduction commitment for the GHG(s) to be included in the
Accord commitment. Describe the level of emissions against which the GHG
emission reduction will be measured; i.e., describe the Reference Case
as defined in the Guidelines. If the Accord commitment includes multiple
GHGs, the Participant may express the Accord commitment in terms of
equivalent CO2. If so, specify the source and values of Global Warming
Potential factors utilized.
- If the Accord commitment is to limit entity-wide GHG emissions to a
specified level, include discussion of which of the Participants business
activities (generation of power, purchased power transactions, transmission and
distribution of power, demand side management, use of power production
by-products, fleet management, CFC management, off-site projects or other
business activities) are included in the entity-wide GHG emission limit.
- Describe the actions that the Participant has taken or intends to take
toward achieving the GHG Reductions or the GHG emission limit.
Reporting:
- If the Accord commitment is to limit entity-wide GHG emissions to a
specified level, report annually on Form EIA-1605 entity-wide GHG emissions.
- Report annually GHG Reductions resulting from the individual actions
described in the Accord and any other actions the Participant may choose to
describe.
- If the Accord commitment is expressed in terms of equivalent CO2, include
supplemental information in the Form EIA-1605 report showing the calculation of
total emissions as equivalent CO2.
- Provide information called for in Form EIA-1605 concerning emission data
for 1987 through 1990 and subsequent years, emission factors used to determine
reductions, assumptions about the individual actions described in the Accord,
and data sources in a clear and understandable manner.
- Reporting of GHG Reduction may be based upon the use of data which is
adjusted from historic or projected data or based on established standards;
i.e., reported using a Modified Reference Case as defined in the
Guidelines. If so, include supplemental discussion of the Modified Reference
Case assumptions and application in the Form EIA-1605 report.
- Make clear which if the Participants business activities are
included in the report emission total.
Section II.B.1.e Reduce or limit the rate of greenhouse gas emissions
to a particular level, expressed in terms of emissions per kilowatt-hour
generated or sold.
Commitment Definition:
- Specify the Participants entity-wide reduction or limit of the rate
of emission of GHG, expressed in terms of emissions per kilowatt-hours
generated or sold, for the GHG(s) to be included in the Accord commitment. If
the Accord commitment includes multiple GHGs, the Participant may express
the Accord commitment in terms of equivalent CO2. If so, specify the source and
values of Global Warming Potential factors utilized.
- Discuss which if the Participants business activities (generation
of power, purchased power transactions, transmission and distribution of power,
demand side management, use of power production by-products, fleet management,
CFC management, off-site projects or other business activities) are included in
the entity-wide rate of emission.
- Describe the actions that the Participant has taken or intends to take
toward achieving the GHG emission rate reductions or the GHG emission rate
limit.
Reporting:
- Report annually on Form EIA-1605 entity-wide GHG emissions.
- Report annually GHG reductions resulting from the individual actions
described in the Accord and any other actions the Participant may choose to
describe.
- Include supplemental information reporting the rate of GHG emission
expressed in terms of emissions per kilowatt-hour generated or sold in the Form
EIA-1605 report.
- If the Accord commitment is expressed in terms of equivalent CO2, include
supplemental information in the Form EIA-1605 report showing the calculation of
total emissions as equivalent CO2.
- Provide information called for in Form EIA-1605 concerning emission data
and rates for 1987 through 1990 and subsequent years, emission factors used to
determine reductions, assumptions about the individual actions described in the
Accord, and data sources in a clear and understandable manner.
- Make clear which if the Participants business activities are
included in the reported emission total and emission rate.
Section II.B.1.f Undertake specific projects or actions, or make
specific expenditures on projects or actions, to reduce greenhouse gas
emissions.
Commitment Definition
- Describe the projects or actions, or the expenditures on projects or
actions, that the Participant has taken or intends to take to reduce GHG
emissions.
- If reporting the GHG Reductions resulting from the projects or actions,
or the expenditures on projects or actions, in terms of equivalent CO2 is
envisioned, specify the source and values of Global Warming Potential factors
to be utilized.
Reporting:
- Reporting annually on Form EIA-1605 the GHG Reductions resulting from the
specific projects or actions, or from the specific expenditures on projects or
actions, described in the Accord and any other actions the Participant may
choose to describe.
- Participant may report the GHG Reductions in terms of equivalent CO2. If
so, provide supplemental information in the Form EIA-1605 report showing the
calculation of total emissions as equivalent CO2.
- Reporting of GHG Reductions may be based upon the use of data which is
adjusted from historic or projected data or based on established standard;
i.e., reported using a Modified Reference Case as defined in the
Guideline. If so, include supplemental discussion of the Modified Reference
Case assumptions and application in the Form EIA-1605 report.
- Provide information called for in Form EIA-1605 concerning emission
factors used to determine reductions, assumptions about individual actions
described in the Accord, and data sources in a clear and understandable
manner.
- Participant may provide information called for in Form EIA-1605
concerning emission data for 1987 through 1990 and subsequent years.
Exhibit C
DOE Actions to Facilitate Greenhouse Gas Emission
Reductions, Avoidance and Sequestration
As part of the Climate Challenge Program, the Department of Energy (DOE)
supports voluntary actions by the electric utility industry to limit greenhouse
gas emissions. DOE will support incentives to encourage cost-
effective
actions by Climate Challenge Program Utility Participants that reduce
greenhouse gas emissions. Moreover, DOE will support efforts to eliminate
unwarranted obstacles that inhibit actions to reduce greenhouse gas
emissions.
The parties recognize that much of the policy affecting Climate Challenge
Program activities is made outside of DOE -
-
by Congress, the White House, other federal agencies, state regulators and
others. DOE will promote Climate Challenge Program objectives in these diverse
arenas.
Listed below are some of the most significant activities that DOE will
undertake to support the actions of the Utility Participants, subject to the
constraints of authorization and appropriations. This commitment will be
reassessed by DOE with Utility Participants at reasonable intervals, in order
to determine whether changes should be made to this list.
1.
Work with other federal agencies to achieve appropriate tax policy for
energy efficiency programs.
2.
Consistent with the Energy Policy Act and Executive Order 12902, work with
other federal agencies and Utility Participants to implement cost-
effective
energy efficiency improvements and greenhouse gas emission reductions at
federal facilities.
3.
Support government/utility joint ventures in energy efficiency designed to
increase market penetration and reduce costs.
4.
Seek funding for photovoltaics, geothermal, wind and other renewable energy
initiatives.
5.
Seek support for research, demonstration and deployment of fuel cell
technology.
6.
Work with other federal agencies to address unwarranted obstacles to the
continued use and expansion of hydroelectric power at existing facilities.
7.
Work with other agencies to eliminated unwarranted regulatory obstacles to
tree planting at abandoned mine sites.
8.
Seek funding for programs that encourage the use of electrotechnologies and
electric vehicles that reduce net greenhouse gas emissions.
9.
Seek support for research on cofiring low-sulfur coal with natural gas.
10.
Encourage commercial deployment of high-efficiency clean coal
technologies.
11.
Work to facilitate resolution of issues of nuclear waste storage, nuclear
power plant life extension and relicensing policies, and the future use of
nuclear power.
12.
Work with federal, state and local agencies and regulators to identify
unwarranted obstacles to activities that reduce greenhouse gas emissions and to
work toward acceptable solutions.
Please send comments to:
Lawrence.Mansueti@hq.doe.gov