undertaken in 1998. By undertaking these projects. participants indicated that they reduced CO, emissions by 165.8 million metric tons" (Table 6). The organizations almost universally measured their project-level reductions by comparing emissions with what they would have been in the absence of the project. Reported CO, reductions from these projects accounted for 7.5 percent of 1998 CO2 emissions attributed to the generation of electric power in the United States. Foreign reductions, largely from carbon-sequestration projects, account for 6.0 percent of total electric utility sector reductions reported for 1998. DOE's Climate Challenge Program, a voluntary initiative with the electric utility sector established under the President's 1993 Climate Change Action Plan, has become the principal mechanism by which electric utilities participate in voluntary emission reduction activities. Participants that reported the CO2 emission reductions summarized in this report include electric utilities and holding companies, independent power producers, and landfill methane operators. Climate Challenge participants negotiate voluntary commitments with the DOE to achieve a certain level of emission reductions and/or to participate in specific projects. Companies making Climate Challenge commitments as of 1998 accounted for about 71 percent of 1990 U.S. electric utility generation. Climate Challenge participants are required to report their achieved emissions reductions to the Voluntary Reporting of Greenhouse Gases Program. Results from the Climate Challenge program cannot be compared directly to other figures in this report because Table 6. Electric Power Sector Carbon Dioxide Emission Reductions, 1997 and 1998 (Million Metric Tons Carbon Dioxide) "The Voluntary Reporting of Greenhouse Gases Program is currently in the 1999 data reporting cycle; the most recent year for which complete data are available is 1998. The 1997 and 1998 data in last year's report were preliminary and have been revised in this report due to subsequent completion of internal EIA review of those data. Emission reductions also include those reported by landfill methane operators. The use of landfill methane to generate electricity displaces fossil fuel power generation and produces a reduction in CO2 emissions equivalent to the amount of CO, that would have resulted from fossil fuel power generation. In calculating CO, reductions, it is assumed that landfill carbon is biogenic and, thus, the CO2 emissions from landfill gas combustion are zero. Note: Totals may not equal the surns of the parts due to independent rounding. This data cannot be compared directly to other figures in this report because reporters to EIA's Voluntary Reporting of Greenhouse Gases Program may report emission reductions using baselines and valuation methods different from those applied elsewhere. Source: Energy Information Administration, Form EIA-1605, "Voluntary Reporting of Greenhouse Gases," (long form) and EIA1605EZ, "Voluntary Reporting of Greenhouse Gases," (short form), 1997 and 1998 data. The Voluntary Reporting of Greenhouse Gases Program is currently in the 1999 data reporting cycle; the most recent year for which complete data are available is 1998. The 1997 and 1998 data in last year's report were preliminary and have been revised in this report due to subsequent completion of internal EIA review of those data. Emission reductions also include those reported by landfill methane operators. "The EIA also receives numerous reports on projects and emissions reductions from reporters outside the electric power sector. In addition, many reports submitted to the Voluntary Reporting Program (including electric power sector reports) include reductions of greenhouse gases other than carbon dioxide, such as methane and nitrous oxide and the high Global Warming Potential gases such as HFCs, PFCs and sulfur hexafluoride. * U.S. Department of Energy. Climate Challenge Fact Sheet (1998), and conversation with Larry Mansueti, August 10, 1999. See also http://www.eren.doe.gov/climatechallenge/execsumm/execsumm.htm. Department of Energy and Environmental Protection Agency/ Carbon Dioxide Emissions from the the Climate Challenge program allows participants to report emissions reductions using baselines and calculation methods different from those applied elsewhere. For this reason, EIA keeps an accounting of reports submitted by Climate Challenge participants, but the United States counts only a fraction of these reported reductions in comprehensive assessments of overall reductions in greenhouse gases." The largest reductions claimed for 1998 are from these major U.S. electric utilities: the Tennessee Valley Authority (26.0 million metric tons of CO2), TXU (19.9 million metric tons of CO2). Duke Energy (12.1 million metric tons of CO2), and FirstEnergy (10.6 million metric tons of CO2). These four companies accounted for about 41.4 percent of the CO2 emissions reductions reported in 1998 by the electric power sector. Each of these companies owns one or more nuclear power plants, and the bulk of their reported reductions is calculated by comparing either actual or additional nuclear output from their plants with the emissions that would have occurred if the same quantity of electricity had been generated using fossil fuels. Electric power industry companies also reported on projects reducing other greenhouse gases." Combining all projects and all greenhouse gases, the electric power sector reporters claimed 176.9 million metric tons of carbon dioxide equivalent reductions in 1998. Utilities also undertook a number of carbon-sequestration projects. Although these projects do not directly affect CO2 emissions, they do offset utility CO2 emissions. Foreign carbon sequestration projects from the electric sector were reported to be 9.9 million metric tons of CO, in 1998, while domestic projects were reported to be 0.5 million metric tons. These activities were dominated by three independent power producer subsidiaries of the AES Corporation, which reported 7.6 million metric tons of CO, sequestration annually from three projects with activities in Belize, Bolivia, Ecuador, Peru, and Guatemala. These projects undertake tropical rain forest management, preservation, or reforestation. In addition, more than 30 companies reported on their pro-rated share of participation in the Edison Electric Institute's UtiliTree program." The UtiliTree program is a carbon-sequestration mutual fund in which electric utilities purchase shares. UtiliTree uses the funds to participate in forest management and reforestation projects in the United States and abroad. The United States' voluntary programs are reducing domestic emissions of greenhouse gases in a number of sectors across the economy through a range of partnerships and outreach efforts. For example, the ENERCY STAR Program, run by the EPA in partnership with DOE, reduces energy consumption in homes and office buildings across the Nation. EPA and DOE set energy-efficiency specifications for a range of products including office equipment, heating and cooling equipment, residential appliances, televisions and VCRs, and new homes. The ENERGY STAR label for buildings is based on a performance rating system that allows building owners to evaluate the efficiency of their buildings relative to others. On average, buildings across the country can improve efficiency by 30 percent through a variety of improvements. Manufacturer and retailer partners in the program may place the nationally recognized ENERGY STAR label on qualifying products. In the past several years, the ENERGY STAR label has expanded to include more than 30 products and nearly 7,000 product models. In 1999, energy consumption was reduced by approximately 28 billion kilowatthours as a result of the program, reducing greenhouse gas emis sions by nearly 21 million metric tons CO, (Table 7) Through EPA's ENERGY STAR Buildings and Green Lights Partnership, more than 15 percent of the square footage in US buildings has undergone efficiency upgrades resulting in electricity savings in excess of 21 billion kilowatthours and emissions reductions of more than 16 million metric tons CO2. Environmental Effects of Federal Restructuring Legislation In April 1999, the Administration submitted to Congress the Comprehensive Electricity Competition Act (CECA), a bill to restructure the U.S. electricity industry and foster retail competition. CECA was designed to ensure "See the 1997 Climate Change Action Report (the Submission of the United States of America under the United Nations Framework Convention on Climate Change), p. 100, for one such assessment. 22 TXU was formerly known as Texas Utilities, while FirstEnergy is the result of a merger between Ohio Edison and Centerior Energy (Cleveland Electric). 23 Other greenhouse gases include methane reductions from landfills and oil and natural gas systems, and sulfur hexafluoride (SFM). which has 23,900 times the global warming impact of carbon dioxide when released into the atmosphere. "The more than 40 companies referenced in last year's report are participants in EEI's UtliTree program. Of these companies, 31 reported their share of participation to the Voluntary Reporting of Greenhouse Gases Program for 1998. Department of Energy and Environmental Protection Agency/ Carbon Dioxide Emissions from the Table 7. CO, Emission Reductions and Energy Savings from EPA's Voluntary Programs, 1998 and 1999 Source: U.S. Environmental Protection Agency, Climate Protection Division, 1998 Annual Report: Driving Investment in Energy Efficiency, ENERGY STAR and Other Voluntary Programs (EPA 430-R-99-005), forthcoming. that the full economic and environmental benefits of electricity restructuring are realized. The expected environmental benefits are the result of both the effects of competition and specific provisions included in the Administration's proposal, such as a renewables portfolio standard, a public benefits fund, and tax incentives for investment in combined heat and power facilities. Competition itself will also provide incentives to generators to improve their own efficiencies, and create new markets for green power and end-use efficiency services, all of which reduce greenhouse gas emissions. Following an exhaustive interagency review, the DOE issued a Supporting Analysis" that quantified both the economic and environmental benefits of the Administration's plan in May 1999. The analysis focused on the impacts of full national retail competition relative to continued cost-of-service regulation. The results showed that the Administration's proposal will reduce CO2 emissions by 216 million metric tons in 2010. An EIA study using the same assumptions from the supporting analysis produced similar results. Carbon dioxide emissions in the EIA report were estimated to be 194 million metric tons lower in the competitive case than in the cost-of-service reference case in 2010. A number of key uncertainties, however, can affect these projections, and some of the reductions could be realized due to actions already taken by individual States. Recognizing uncertainties and the need to avoid double-counting, the Administration projected that its proposal would reduce CO, emissions from energy use by 147 to 220 million metric tons annually by 2010. The DOE and EPA see no recent developments that would change our projection of the expected impact of the Administration proposal. However, we note that restructuring bills that have recently moved forward in the Congress differ significantly from the Administration's comprehensive proposal. These bills do not include key provisions that support the effective functioning of competitive electricity markets and energy diversity while at the same time providing reductions in CO2 emissions. In addition to maintaining our capability to reassess the impacts of our own proposal, we are also prepared to provide quantitative analyses of alternative restructuring bills. Additional measures could offer potential for cost-effective emissions reductions in the electric power sector, although they are no substitute for comprehensive restructuring legislation that promotes competitive markets and consumer benefits while providing important reductions in CO2 emissions from electric power generation. "U.S. Department of Energy, Supporting Analysis for the Comprehensive Electricity Act, May 1999. 25 Energy Information Administration. The Comprehensive Electricity Competition Act: A Comparison of Model Results. Internet site at http://www.ela.doe.gov/olaf/servicerpt/ceca.html. Department of Energy and Environmental Protection Agency/ Carbon Dioxide Emissions from the My Administration's proposal to promote retail competition in the electric power industry, if enacted, will help to deliver economic savings, cleaner air, and a significant down payment on greenhouse gas emissions reductions. The proposal exemplifies my Administration's commitment to pursue both economic growth and environmental progress simultaneously. As action to advance retail competition proceeds at both the State and Federal levels, the Administration and the Congress share an interest in tracking environmental indicators in this vital sector. We must have accurate and frequently updated data. Under current law, electric power generators report various types of data relating to generation and air emissions to the Department of Energy (DOE) and the Environmental Protection Agency (EPA). To ensure that this data collection is coordinated and provides for timely consideration by both the Administration and the Congress, you are directed to take the following actions: • On an annual basis, you shall provide me with a report summarizing CO2 emissions data collected during the previous year from all utility and nonutility electricity generators providing power to the grid, beginning with 1998 data. This information shall be provided to me no more than 6 months after the end of the previous year, and fur 1998, within 6 months of the date of this directive. • The report, which may be submitted jointly, shall present CO2 emissions information on both a national and regional basis, stratified by the type of fuel used for electricity generation, and shall indicate the percentage of electricity generated by each type of fuel or energy resource. The CO2 emissions shall be reported both on the basis of total mass (tons) and output rate (e.g., pounds per megawatt-hour). The report shall present the amount of CO, reduction and other available information from voluntary carbon-reducing and carbon-sequestration projects undertaken, both domestically and internationally, by the electric utility sector. • The report shall identify the main factors contributing to any change in CO, emissions or CO, emission rates relative to the previous year on a national, and, if relevant, regional basis. In addition, the report shall identify deviations from the actual CO, emissions, generation, and fuel mix of their most recent projections developed by the Department of Energy and the Energy Information Administration, pursuant to their existing authorities and missions. • In the event that Federal restructuring legislation has not been enacted prior to your submission of the report, the report shall also include any necessary updates to estimates of the environmental effects of my Administration's restructuring legislation. • Neither the DOE nor the EPA may collect new information from electricity generators or other parties in order to prepare the report. WILLIAM J. CLINTON Department of Energy and Environmental Protection Agency/ Carbon Dioxide Emissions from the Appendix B Data Sources and Methodology This section describes the data sources and methodology employed to calculate estimates of carbon dioxide (CO) emissions from utility and nonutility electric generating plants. Due to the report being submitted in June of 2000, the annual census data, on which 1998 emission estimates are based, are not yet available from the Form EIA-860B and Form EIA-767. The methodology employed for estimating 1999 CO2 emissions in this report are based on two monthly data collections, Form EIA759 and Form EIA-900. The Form EIA-759 collects monthly generation and fuel consumption from all utility-owned generating plants, and the Form EIA-900 collects generation and fuel consumption from nonutility plants with a nameplate capacity of 50 megawatts (MW) or more. The 1999 estimates of CO2 emissions and net generation are preliminary estimates; final emissions estimates based on annual census data will be published in the Electric Power Annual Volume II 1999, later this year. Electric Utility Data Sources The electric utility data are derived from several forms. The Form EIA-767, "Steam-Electric Plant Operation and Design Report," collects information annually for all U.S. power plants with a total existing or planned organic-or nuclear-fueled steam-electric generator nameplate rating of 10 MW or larger. Power plants with a total generator nameplate rating of 100 MW or more must complete the entire form, providing among other data, information about fuel consumption and quality. Power plants with a total generator nameplate rating from 10 MW to less than 100 MW complete only part of the form, including information on fuel consumption. Form EIA-759, "Monthly Power Plant Report," is a cutoff model sample of approximately 360 electric utilities drawn from the frame of all operators of electric utility plants (approximately 700 electric utilities) that generate electric power for public use. The monthly data collection is from all utilities with at least one plant with a nameplate capacity of 50 MW or more. For all utility plants not included in the monthly sample, those with nameplate capacities less than 50 MW, monthly data are collected annually. Form EIA-759 is used to collect data on net generation; consumption of coal, petroleum, and natural gas; and end-of-the-month stocks of coal and petroleum for each plant by fuel-type combination. The Federal Energy Regulatory Commission (FERC) Form 423, "Monthly Report of Cost and Quality of Fuels for Electric Plants," is a monthly record of delivered-fuel purchases, submitted by approximately 230 electric utilities for each electric generating plant with a total steam-electric and combined-cycle nameplate capacity of 50 MW or more. FERC Form 423 collects data on fuel contracts, fuel type, coal origin, fuel quality and delivered cost of fuel. Nonutility Data Sources Form EIA-860B, "Annual Electric Generator Report Nonutility," (prior Form EIA-867, "Annual Nonutility Power Producer Report") collects information annually from all nonutility power producers with a total generator nameplate rating of 1 MW or more, including cogenerators, small power producers, and other nonutility electricity generators. All facilities must complete the entire form, providing, among other data, information about fuel consumption and quality, however facilities with a combined nameplate capacity of less than 25 MW are not required to complete Schedule V. "Facility Environmental Information," of the Form EIA-860B. Form ELA-900. "Monthly Nonutility Power Plant Report," is a cutoff model sample of approximately 500 nonutilities drawn from the frame of all nonutility facilities (approximately 2000 nonutilities) that have existing or planned nameplate capacity of 1 MW or more. The monthly data collection comes from all nonutilities with a nameplate rating of 50 MW or more. A cutoff model sampling and estimation are employed using the annual Form EIA-860B. CO2 Coefficients The coefficients for determining carbon released from the combustion of fossil fuels were developed by the Department of Energy and Environmental Protection Agency/ Carbon Dioxide Emissions from the |