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DOE
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FACT
SHEET
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The
Climate Challenge
and Your Utility |
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| 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 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
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