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DOE

FACT
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The Climate Challenge
and Your Utility
WHAT IS CLIMATE CHALLENGE?

The Climate Challenge is a voluntary program between the electric utility and the U.S. Department of Energy, as part of the U.S. response to the 1992 Rio Treaty mandating international stabilization of greenhouse gas emissions.

Parameters of the Climate Challenge program are defined in a Memorandum of Understanding signed April 20, 1994, between U.S. Department of Energy Secretary Hazel O’Leary and all the national utility trade associations.

Individual utility reductions are based on voluntary efforts that make economic sense on their own merits.

A utility that agrees to reduce greenhouse gas emissions by joining the Climate Challenge program must:

  • Agree to one or more of the six types of reduction commitments,
  • Report annually to DOE on progress, and
  • Be available to confer occasionally with DOE on progress.
Types of commitments are broad enough that any utility can participate, whether large or small, with or without generation, having any resource mix, and experiencing high or low load growth.
HOW CAN MY UTILITY JOIN THE CLIMATE CHALLENGE?

Your utility can join the Climate Challenge by taking the following steps:

1. Contact your national trade association or DOE.

2. Determine what voluntary cost-effective actions make sense for your utility.

3. Sign an accord or letter agreement (utilities <50,000 customers) with DOE specifying what steps your utility will take.

To see what other utilities are
undertaking you can view already
signed accords on the Internet at
http://www.eren.doe.gov/climatechallenge/


WHY JOIN THE CLIMATE CHALLENGE?

  • National and international officials are watching this program closely. Therefore, an effective voluntary effort may negate the need for legislation or regulations.
  • Your involvement may yield possible future “credits” for your emission reductions. A companion voluntary reporting program (“1605(b) Voluntary Reporting of Greenhouse Gases Program”), implemented by the U.S. Department of Energy's Energy Information Administration, creates a record of your reported emission reduction(s), that could possibly be used for “credit” against future mandatory requirements.
  • Your efforts are likely to improve your utility’s and your customer’s operations and bottom line. Most of the options taken by Climate Change utilities have reduced costs and/or improved operations, saving money and/or producing new revenue. This is especially useful at a time of increasing competition.
  • Your community will support your efforts. Public opinion polls demonstrate that the public wants a healthy environment and will judge community institutions by their environmental commitment. You can secure favorable local publicity for your actions.
  • Your efforts count. Only through a concerted effort on the part of all electric utilities, as well as other industries, will the nation be able to stabilize greenhouse gas emissions. Over 60% of the electric utility industry is represented by signed agreements pledging voluntary reduction efforts. Your neighboring utility is likely one of those utilities with an agreement already signed.

WHAT TYPES OF COMMITMENT DOES MY UTILITY MAKE TO JOIN THE CLIMATE CHALLENGE?

An agreement between your utility and DOE is expected to contain one or more of the following types of commitments:

  • Reduce greenhouse gas emissions by a specified amount below the utility’s 1990 baseline level by the year 2000, or
  • Reduce greenhouse gas emissions to the utility’s 1990 baseline level by the year 2000, or
  • Reduce greenhouse gas emissions to a particular level expressed in terms of emissions per kWh generated or sold, or
  • Reduce greenhouse gas emissions by or to some other specified level, or
  • Undertake or finance specific projects or actions to reduce greenhouse gas emissions, or
  • Make a specified contribution to particular industry initiatives, or
  • Agree to some combination of the above.

WHAT ARE INDUSTRY-WIDE INITIATIVES?

To help implement Climate Challenge, the electric utility industry has developed nine industry-wide initiatives covering a variety of activities:

  • Earth Comfort Geothermal Heat Pump Consortium
  • EV America
  • International Utility Efficiency Partnership Program
  • EnviroTech Investment Fund
  • Utilities Forest Carbon Management Program
  • Electric End-Use Efficiency Technology Initiative
  • Tree Power
  • International Donated Equipment Initiative
  • Combined Purchasing Initiative
  • Contact your national trade organization on how to incorporate any of the above initiatives as part of your accord or letter agreement.

OPTIONS WORKBOOK

DOE and the utility industry have jointly developed the Climate Challenge Options Workbook which describes over fifty options that utilities may use to reduce greenhouse gas emissions. The Workbook includes case studies, potential partners, strategies to overcome barriers, contact personnel and an annotated bibliography of DOE and EPRI publications. For copies, as well as information on DOE’s relevant Energy Partnership programs, call (800) 363-3732.


WHAT ARE ACTIONS MY UTILITY CAN TAKE?

There are many, including:

    Improve efficiency in end-use distribution;

    Improve transmission and generation efficiency;

    Join any of the Environmental Protection Agency’s voluntary greenhouse gas reducing programs via their Climate Protection Division Partnership Programs pages or their Global Warming pages;

    Upgrade to electrotechnologies;

    Undertake individual projects that will reduce, avoid or sequester greenhouse gas emissions;

    Switch to lower carbon fuels;

    Improve transportation;

    Enhance forestry;

    Recover methane from landfills and sewage plants;

and many others. The Climate Challenge Options Workbook gives more detail.

Utilities can also participate in any of the nine industry sponsored Climate Challenge Initiatives and in EPA-and DOE-sponsored voluntary Climate Change programs. For more information on EPA’s programs, call (202) 233-9002; for DOE’s, call (800) 363-3732.



 

For Information About Voluntary Reporting...

Voluntary Reporting of Greenhouse Gases Program
Energy Information Administration, EI-81
U.S. Department of Energy
1000 Independence Avenue, S.W.
Washington, DC 20585

1-800-803-5182

e-mail: infoghg@eia.doe.gov

web: http://www.eia.doe.gov/oiaf/1605/frntend.html


FOR MORE INFORMATION

Contact your national trade association or DOE:

Edison Electric Institute
John Novak
(202) 508-5655

American Public Power Association
Rebecca Blood
(202) 467-2929

National Rural Electric Cooperative Association
Rae Cronmiller
(703) 907-5791

Department of Energy
Larry Mansueti
(202) 586-2588



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