Emergency Order Issued to the Balancing Authority of Northern California To Operate Power Generating Facilities Under Limited Circumstances in California as a Result of Extreme Weather
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Issuing agencies
Abstract
The U.S. Department of Energy (DOE or the Department) is issuing this Notice to document emergency actions that it has taken pursuant to the Federal Power Act. California experienced several periods of extreme heat, drought conditions, and threat of wildfires. California Governor Gavin Newsom issued a proclamation declaring a state of emergency regarding increased electrical demand and generation. Because the additional generation may result in a conflict with environmental standards and requirements, the DOE authorized only the necessary additional generation, allowing BANC to sufficiently supply the necessary amount of energy needed to prevent electrical disruption.
Full Text
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<title>Federal Register, Volume 87 Issue 196 (Wednesday, October 12, 2022)</title>
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[Federal Register Volume 87, Number 196 (Wednesday, October 12, 2022)]
[Notices]
[Pages 61595-61596]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-22124]
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DEPARTMENT OF ENERGY
[DOE Docket No. 202-22-2]
Emergency Order Issued to the Balancing Authority of Northern
California To Operate Power Generating Facilities Under Limited
Circumstances in California as a Result of Extreme Weather
AGENCY: Office of Cybersecurity, Energy Security, and Emergency
Response; Department of Energy.
ACTION: Notice of emergency action.
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SUMMARY: The U.S. Department of Energy (DOE or the Department) is
issuing this Notice to document emergency actions that it has taken
pursuant to the Federal Power Act. California experienced several
periods of extreme heat, drought conditions, and threat of wildfires.
California Governor Gavin Newsom issued a proclamation declaring a
state of emergency regarding increased electrical demand and
generation. Because the additional generation may result in a conflict
with environmental standards and requirements, the DOE authorized only
the necessary additional generation, allowing BANC to sufficiently
supply the necessary amount of energy needed to prevent electrical
disruption.
ADDRESSES: Requests for more information should be addressed by
electronic mail to <a href="/cdn-cgi/l/email-protection#f9b88a92baabb99188d79d969cd79e968f"><span class="__cf_email__" data-cfemail="d392a0b8908193bba2fdb7bcb6fdb4bca5">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: For further information on this
Notice, or for information on the emergency activities described
herein, contact Kenneth Buell, (202) 586-3362,
<a href="/cdn-cgi/l/email-protection#652e000b0b00110d4b2710000909250d144b010a004b020a13"><span class="__cf_email__" data-cfemail="09426c67676c7d61274b7c6c6565496178276d666c276e667f">[email protected]</span></a>, or by mail to the attention of Kenneth Buell,
CR-30, 1000 Independence Ave. SW, Washington, DC 20585. Due to limited
access to DOE facilities because of current COVID-19 restrictions,
contact via phone or email is preferred.
SUPPLEMENTARY INFORMATION: The Order and all related information are
available here: <a href="https://www.energy.gov/ceser/federal-power-act-section-202c-banc-september-2022">https://www.energy.gov/ceser/federal-power-act-section-202c-banc-september-2022</a>.
Background
Section 202(c) of the Federal Power Act
The U.S. Department of Energy (the Department) is issuing this
Notice pursuant to 10 CFR 1021.343(a) to document emergency actions
taken in accordance with section 202(c) of the Federal Power Act (FPA)
(16 U.S.C. 824a(c)). FPA section 202(c) provides that ``[d]uring the
continuance of any war in which the United States is engaged, or
whenever the [Secretary of Energy] determines that an emergency exists
by reason of a sudden increase in the demand for electric energy, or a
shortage of electric energy or of facilities for the generation or
transmission of electric energy, or of fuel or water for generating
facilities, or other causes, the [Secretary of Energy] shall have
authority, either upon [her] own motion or upon complaint, with or
without notice, hearing, or report, to require by order such temporary
connections of facilities and generation, delivery, interchange, or
transmission of electric energy as in [her] judgment will best meet the
emergency and serve the public interest.''
1. Request for Emergency Order From the Balancing Authority of Northern
California
On September 2, 2022, the Balancing Authority of Northern
California (BANC) submitted to the Department a Request for Emergency
Order under section 202(c) of the Federal Power Act which it amended on
September 3, 2022, by an Amended, Supplement and Clarified Draft
Request for Emergency Order Pursuant to section 202(c) of the Federal
Power Act. BAN's request as so amended is referred to herein as the
Application.ge (Application) with the Department ``to preserve the
reliability of bulk electric power system in California.'' In its
Application, BANC requested that the Department issue an emergency
order to preserve the reliability of the bulk electric power system in
California to allow BANC to dispatch generation within the BANC
Balancing Authority Area (BAA) ``that may be necessary for BANC to meet
demand in the face of extreme heat.'' BANC sought the emergency order
to allow it to direct the operation of 24 diesel-fired generators
located at a data center in Sacramento, California (the Covered
Resource), up to a maximum output of 26.1 megawatts (the Covered
Maximum Amount). BANC represented that the Covered Resource could not
operate due to restrictions in its existing permits absent an emergency
order.
2. BANC Order
On September 4, 2022, the Acting Under Secretary for
Infrastructure, acting pursuant to delegated authority, issued Order
No. 202-22-2 (the BANC Order). As set forth in the BANC Order, the
Acting Under Secretary for Infrastructure found that because of the
expected shortage of electric energy, shortage of facilities for the
generation of electric energy, and other emergency conditions
prevailing and forecasted in the BANC BAA, the operation of the Covered
Resource up to the Covered Maximum Amount was necessary to contribute
to the reliability of the BANC BAA.
The BANC Order authorized BANC to dispatch the Covered Resource
from September 4, 2022 to September 8, 2022, solely upon issuance and
continuation of an Energy Emergency Alert Level 2 (EEA2) condition or
greater between 14:00 Pacific Daylight Time and 22:00 Pacific Daylight
Time, after exhausting all reasonably and practically available
resources.
The BANC Order requires that BANC provide a report by October 10,
2022, to include all source-specific data for dates between September
4, 2022 and September 8, 2022, during which the Covered Resource
operated. The report must include, ``for each unit: (1) the hours of
operation, as well as the hours in which any permit limit was exceeded;
and (2) a preliminary description of each permit term that was exceeded
and the manner in which such exceedance occurred.'' The BANC Order also
require BANC to ``submit a final report by November 14, 2022, with any
revisions to the information reported on December 12, 2022.'' DOE will
prepare a special environmental analysis of the potential impacts
resulting from issuance of the BANC Order, including impacts on air
quality and environmental justice. BANC will be responsible for the
reasonable third-party costs of the special environmental analysis.
3. Amendment Number 1 to BANC Order
On September 7, 2022, BANC submitted a Request for Extension and
Limited Amendment of Emergency Order Pursuant to Section 202(c) of the
Federal Power Act (Amendment Request). The Amendment Request requested
that: (1) the Department extend the effective date of the BANC Order
through September 11, 2022; and (2) the Department allow BANC to
dispatch the Covered Resource outside of EEA2 conditions to allow the
Covered Resource time to start up and fully transition load prior to
the commencement of EEA2 conditions. BANC explained that the actual
heat event was more severe than expected and record loads had been
experienced.
The Acting Under Secretary for Infrastructure issued Amendment
Number 1 to Order No. 202-22-2 (Amendment Number 1) on September 8,
2022, finding that an emergency continued to exist in California due to
a shortage of electric energy and that the issuance of Amendment Number
1 would help to meet the emergency conditions and serve the public
interest. Amendment Number 1 extended the
[[Page 61596]]
effectiveness of the BANC Order through September 11, 2022. In
addition, Amendment Number 1 allowed BANC to dispatch the Covered
Resource upon notification of an EEA2 or greater (without limiting
operation to the hours of 14:00 Pacific Time and 22:00 Pacific Time),
and to operate for such reasonable and limited time as is necessary for
the Covered Resource to ramp down following an EEA2 or greater. All
other terms of the BANC Order remained in effect, including the
obligation of BANC to exhaust all reasonably and practically available
resources prior to dispatching the Covered Resource and the obligation
to report information regarding the environmental impacts of the
operation of the Covered Resource permitted by the BANC Order. As
required by FPA section 202(c), the Department consulted with the
Environmental Protection Agency (EPA) in considering BANC's request for
an extension of the BANC Order. The EPA did not request any additional
conditions be included in the BANC Order as amended by Amendment Number
1.
4. Further Information
The BANC Order, Amendment Number 1, and other documents referenced
herein can be found on the Department's website at <a href="https://www.energy.gov/ceser/federal-power-act-section-202c-banc-september-2022">https://www.energy.gov/ceser/federal-power-act-section-202c-banc-september-2022</a>. The reports required by the BANC Order as amended by Amendment
Number 1 will be posted to the Department's website when they become
available.
Signing Authority
This document of the Department of Energy was signed on October 1,
2022, by Puesh M. Kumar, Director for the Office of Cybersecurity,
Energy Security, and Emergency Response, pursuant to delegated
authority from the Secretary of Energy. That document with the original
signature and date is maintained by DOE. For administrative purposes
only, and in compliance with requirements of the Office of the Federal
Register, the undersigned DOE Federal Register Liaison Officer has been
authorized to sign and submit the document in electronic format for
publication, as an official document of the Department of Energy. This
administrative process in no way alters the legal effect of this
document upon publication in the Federal Register.
Signed in Washington, DC, on October 6, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-22124 Filed 10-11-22; 8:45 am]
BILLING CODE 6450-01-P
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