Common use of CDCs Clause in Contracts

CDCs. 1. Interior may accrue CDCs from any of the following, in any combination: a. Curtailments, Efficiency Improvements, and retirements at b. Qualifying Projects; and c. Offsets, allowances, credits, or other similar instruments that Interior has secured, such that for each such instrument that represents a Metric Ton of CO2, Interior shall accrue 1.3 MWh of CDCs. d. RECs (as expressed in MWh) that Interior has secured, unless those RECs are associated with a Qualifying Project from which Interior accrues CDCs. 2. To the extent necessary, Interior shall develop additional credit accrual protocols and mechanisms for CDCs. 3. CDC calculation methodology for Curtailments, Efficiency Improvements, and retirements. a. Except as identified in section III.H.3 of this Appendix, Interior shall accrue CDCs from actual Curtailments and Efficiency Improvements at NGS equal to its contractually allocated ownership share of NGS (24.3% at this time). i. Interior shall accrue CDCs regardless of which NGS Unit is the subject of the Curtailment or Efficiency Improvement and regardless of the NGS Participant with which such Curtailments or Efficiency Improvements are associated. ii. CDCs attributable to an Efficiency Improvement shall initially be calculated based on engineering estimates provided by the vendor of the installed Efficiency Improvement. After the Efficiency Improvement has been in operation for three full calendar years, Interior may at its discretion commission an engineering performance study to determine the efficiency improvement actually achieved over the three-year period, and may adjust historic and future CDCs based on the study’s findings. 4. Except as identified in section III.H.3 of this Appendix, for any and all retirements at NGS, Interior shall accrue CDCs equal to a prorated amount of 11.5% based on a full unit retirement of its contractually allocated ownership share of NGS (24.3% at this time). Interior shall accrue CDCs regardless of which NGS Unit is the subject of the retirement and regardless of the NGS Participant with which such retirement is associated. 5. Interior shall accrue a CDC for each reduced MWh from all Curtailments, retirements, and Efficiency Improvements initiated or caused to be initiated by Interior for such Curtailments, retirements, and Efficiency Improvements associated with the U.S.’s share of NGS.