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Section II:As of October 1996, Secretary of Energy Hazel O'Leary has signed 114 Participation Accords and Letters of Participation representing 630 utilities, and several more participation agreements are in preparation. The Climate Challenge utilities represent over 60 percent of both 1990 U.S. generation and 1990 U.S. utility carbon emissions. These utilities have committed to reduce, avoid or sequester over 44 million metric tons of carbon equivalent (MMTCE)1 in the year 2000. In communicating the achievements of the Climate Challenge program, DOE compiles utilities' commitments and their anticipated greenhouse gas (GHG) emission reductions. DOE develops its tabulations by reviewing each of the Participation Accords and identifying the utility's own estimates of GHG reductions in the year 2000. Wherever possible, DOE's tabulations maintained the same estimates, conversion factors, and methodology used by each utility, recognizing that reporting guidelines under Energy Policy Act of 1992 Section 1605(b) permits this flexibility. Since each Participation Accord is a unique document, there is a wide range in specificity and style of reporting. Some of the Accords are very specific in terms of the anticipated results (reduced GHG emissions), while others focus more on the types of actions to be taken. Within the Climate Challenge program, one form is not preferred over another. As of October 1996, DOE's tabulation of Participation Accords showed pledges of about 44.2 MMTCE of GHG reductions, categorized as shown in Figure 1. The figure shows that Climate Challenge utilities are pledging a wide range of GHG reduction actions. About half of the pledged GHG reductions stem from supply-side activities, resulting from improvements in nuclear plant availability, fossil generation efficiency, renewable energy sources, transmission and distribution modifications, fuel switches to natural gas from coal and oil, and others. Substantial GHG reductions are also pledged from demand-side management activities, landfill and coal mine methane capture, forestry, international activities, and other programs. The 44.2 MMTCE is a conservative figure, as it does not include reductions that were not categorized by utilities in their Participation Accords or reductions from any of the industry sponsored Climate Challenge initiatives.
The Climate Challenge program was envisioned as one of two "Foundation Actions" in the Climate Change Action Plan (CCAP); actions that facilitate involvement by participants in other CCAP actions. A large portion of the 44 MMTCE in reduced GHG emissions is due to utility participation in other CCAP actions, yet about 7.4 MMTCE of reductions in GHG emissions are due to actions that utility participants have identified and undertaken on their own, outside of the CCAP programs. Industry InitiativesAmong the unique features of the Climate Challenge program are the initiatives undertaken at the industry-wide level. These programs are aimed at reducing GHG emissions through collective voluntary action by groups of utilities, thus allowing individual utilities to pool resources with other utilities to invest in projects and cover a wide range of GHG reduction activities. The utility industry has an ongoing process to identify and create additional industry initiatives. Currently there are ten initiatives either underway or under consideration. EnviroTechSM Venture Capital Investment Funds. The charter of EnviroTechSM is to invest utility capital in companies focused on the commercialization of promising electrotechnologies and renewable energy technologies that reduce greenhouse gas emissions. The EnviroTechSM funds also provide electric utility investors with a useful business development tool for access to new technology and exposure to new business opportunities. Thus far, $52 million has been invested in two funds operating under the EnviroTechSM charter. The EnviroTech Fund is $31.5 million, with $6.1 million so far invested in companies that are developing products in flywheel energy storage systems, automotive and truck tire technologies, magnetic bearings, electronic lighting ballasts, and other technologies. The Utech Climate Challenge Fund is $20.6 million, with $6.7 million so far invested in photovoltaic cell technology, renewable power generation systems, hydrogen-based technologies, distributed control technologies for energy management systems, and others. Other investments are forthcoming, as the fund managers are investigating dozens of promising technologies and companies. National Earth Comfort Geothermal Heat Pump Program. The goal of the National Earth Comfort Program is to increase the number of geothermal heat pumps installed annually from 40,000 to 400,000 by the year 2001, reducing greenhouse gas emissions by approximately 1.5 MMTCE per year. The Earth Comfort Program is a multifaceted approach which includes launching a dozen demonstration programs in six U.S. regions in cooperation with electric utilities; establishing six to eight state-of-the-art training centers for installation technicians; educating homeowners and developers about the advantages of geothermal heat pumps; and other efforts. Combined Purchasing Initiative. This initiative combines the purchasing power of electric utilities to create a market for technologies that reduce greenhouse gas emissions. Combined purchasing initiatives are currently under development for high efficiency refrigerators, photovoltaic modules, and high efficiency energy transformers. Purchases of other technologies will also be considered. Electric End Use Efficiency Technology Initiative. This public power initiative developed a catalogue of demand-side management/energy efficient products for distribution to utilities at low cost. Utilities could distribute these catalogues to their customers to use in ordering energy-efficient products directly from the product vendor. The product vendor could aggregate orders and report estimates of energy savings and greenhouse gas emissions reductions from the products sold.
International Utility Efficiency Partnerships. The International Utility Efficiency Partnerships (IUEP) program identifies and reviews energy efficiency, fuel switching, renewable energy and other greenhouse gas reduction projects in developing countries. U.S. electric utilities evaluate proposed IUEP projects, and offer financial and technical assistance to those that elect to join. In addition to its environmental benefits, the program provides a window on developments in the world's fastest growing markets and access to new business opportunities. IUEP works closely with the U.S. Initiative on Joint Implementation (USIJI) to obtain official recognition for its projects. IUEP's first sponsored project, a 15 Megawatt biomass waste to energy power plant in Guaimaca, Honduras, was chosen as a pilot project in USIJI's second round. Partnerships for Joint Implementation and Donated Equipment Initiative. The National Rural Electric Cooperative Association's (NRECA) international programs work to expand rural electrification in developing countries, and often emphasize renewable energy. In addition, working through NRECA's existing International Foundation Equipment and Materials Program, surplus utility equipment and materials are reinstalled in areas to replace less efficient equipment. Utility Forest Carbon Management Program/UtiliTree Carbon Company. The primary goals of the Utility Forest Carbon Management Program are to implement a number of forestry projects and to advance the state of knowledge on options for managing greenhouse gases via forestry activities. The program solicits and evaluates proposals for forestry projects. Out of these initial efforts, forty electric utilities have established the UtiliTree Carbon Company, a nonprofit company formed to sponsor forest management projects that can sequester or reduce greenhouse gases. In August 1996, UtiliTree committed $2.4 million to fund five projects, representing diverse approaches toward managing greenhouse gases. The projects involve rural tree planting, forest preservation, and forest management, and are located in the United States (California, Louisiana, Oregon), Belize, and Malaysia. The projects, selected from among 32 worldwide project proposals, will reduce the equivalent of over two million tons of CO2 emissions over the projects' lives. Tree Power. Tree Power's goal is to plant one tree for each of public power's 16 million customers. To date, 2 million trees have been planted. EV America. EV America is a multi-phase, market demonstration program to promote the use of electric vehicles. The program's goal is to increase the number of electric vehicles in utility, commercial, government and transit fleets to 5,000 by December 31, 1997. EV America has developed a general list of vehicle specifications which includes requirements for warranties, Federal safety certification and performance guarantees. EV America is currently evaluating numerous vehicles. Quiet Stop. Quiet Stop is an initiative currently under consideration by the Edison Electric Institute. Recent conceptual studies have shown that travel stop electrification can eliminate idling by parked heavy-duty trucks leading to substantial economic savings/profits for trucking companies, travel stop operators, and utilities. The concept can also yield impressive reductions in pollutant emissions. The Quiet Stop initiative's goal would be to catalyze full-scale electrification of travel stops. A first step would be to design and field-test prototype electrification packages. Voluntary Reporting of Greenhouse Gases As the 1992 Framework Convention on Climate Change was being negotiated, Congress began to consider measures that would help the Federal government meet the national "commitment" under the treaty. One such measure was Section 1605(b) of the Energy Policy Act of 1992, which requires the Energy Information Administration (EIA) to create reporting forms and a database for the voluntary reporting of greenhouse gases and actions taken to reduce or avoid GHG emissions. The Voluntary Reporting Program was developed by EIA in cooperation with potential reporters, the Department of Energy's Office of Policy, and the U.S. Environmental Protection Agency. The program permits individuals, corporations, and other organizations to report annually on emissions and actions taken that reduced GHG emissions. According to EIA's Emissions of Greenhouse Gases in the United States: 1995, reporters chose to undertake the considerable effort and expense of preparing their submissions for several reasons:
This last point seems to have come to pass. On August 15, 1996, Assistant Secretary of State Eileen B. Claussen wrote to Thomas R. Kuhn, President of Edison Electric Institute that "The Administration believes that any future commitment must be predicated on ensuring...that those who take early action receive credit toward future targets." In July 1996, EIA published Voluntary Reporting of Greenhouse Gases, 1995 (DOE/EIA-0608(95)), describing the development of the program and documenting the reports received during the program's first reporting year. (Utilities and other reporters are presently preparing their reports for activities completed in 1995.) As detailed in Table 1 on page 6, electric utilities were by far the largest participating group in the Voluntary Reporting System, comprising over 90 percent of all reports received. Ninety-six electric utilities filed reports, including 12 of the 15 largest electric utilities in the United States. Nearly all of the utilities filing are Climate Challenge participants. The enthusiastic participation of Climate Challenge utilities in the Voluntary Reporting Program was not unexpected. Early on, both DOE and the electric utilities embraced the idea that, in providing a practical, accessible record of efforts to reduce emissions, the Voluntary Reporting Program supports the exchange of information on the most effective ways to reduce GHG gas emissions and helps to inform the public debate about activities aimed at reducing or offsetting emissions. Accordingly, the Climate Challenge Participation Accords typically provide that each utility will file reports consistent with the guidelines adopted pursuant to EPAct Section 1605(b). Most utilities have chosen to meet their commitment to report annually by filing Form EIA-1605. Most reporters indicated that their projects were affiliated with one or more government-sponsored voluntary programs. Of the 645 total projects reported, 556 were identified as being affiliated with the Climate Challenge Program, 15 with EPA's Green Lights Program, and 6 with the Landfill Methane Outreach Program. Other voluntary programs mentioned included Energy Star Computers, Energy Star Transformers, the U.S. Initiative on Joint Implementation, and others, where electric utilities are also playing a lead role. As seen in Table 2, the reported projects cover all ten categories in the Voluntary Reporting System, with electricity generation and energy end-use comprising about two-thirds of the total. Utility projects include improved plant efficiencies, cogeneration, and use of non-fossil fuels such as nuclear power. There are indications that the utilities' efforts to reduce emissions are helping to make a difference at the national level. In October, 1996, EIA published Emissions of Greenhouse Gases in the United States: 1995 (DOE/EIA-0573(95)). That report noted that in 1995, the economy grew by about 2.1 percent, while growth in energy consumption was 1.9 percent. Carbon dioxide emissions rose even less, by a modest 0.8 percent, because of increased nuclear and hydroelectric power production, as well as increased efficiency in fossil generation. Although low emitting nuclear power and renewable fuels provide about 15 percent of the U.S. energy supply, these sources accounted for two-thirds of the increase in U.S. energy requirements experienced in 1995.
SECTION III: CLIMATE CHALLENGE SUCCESS STORIES
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