Emergency Order Issued to the California Independent System Operator Corporation (CAISO) To Operate Power Generating Facilities Under Limited Circumstances in California as a Result of Extreme Weather, 53647-53648 [2021-21012]

Agencies

• DEPARTMENT OF ENERGY

[Federal Register Volume 86, Number 185 (Tuesday, September 28, 2021)]
[Notices]
[Pages 53647-53648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21012]


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DEPARTMENT OF ENERGY

[DOE Docket No. 202-21-2]


Emergency Order Issued to the California Independent System 
Operator Corporation (CAISO) To Operate Power Generating Facilities 
Under Limited Circumstances in California as a Result of Extreme 
Weather

AGENCY: Office of Electricity, Department of Energy.

ACTION: Notice of emergency action.

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SUMMARY: The U.S. Department of Energy (DOE or Department) is issuing 
this Notice to document emergency actions that it has taken pursuant to 
the Federal Power Act (FPA).

ADDRESSES: Requests for more information should be addressed by 
electronic mail to [email protected].

FOR FURTHER INFORMATION CONTACT: For further information on this 
Notice, or for information on the emergency activities related to the 
Order, contact Kenneth Buell, 202-586-3362, [email protected], 
or by mail to the attention of Kenneth Buell, CR-20, 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.
    The Order and all related information are available here: https://www.energy.gov/oe/federal-power-act-section-202c-caiso-september-2021.

SUPPLEMENTARY INFORMATION: Pursuant to 10 CFR 1021.343(a), the 
Department is issuing this Notice to document emergency actions taken. 
Under FPA section 202(c), ``[d]uring the continuance of a 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 . . . to require by order 
such temporary connections of facilities and generation, delivery, 
interchange, or transmission of electric energy as in [the Secretary's] 
judgment will best meet the emergency and serve the public interest.'' 
16 U.S.C. 824a(c)(1). The authority to issue such orders, which was 
originally vested in the defunct Federal Power Commission, was 
transferred to and vested in the Secretary of Energy by section 301(b) 
of the Department of Energy Organization Act, 42 U.S.C. 7151(b), and is 
non-exclusively delegated to the Deputy Secretary of Energy (Deputy 
Secretary) by paragraph 1.12(A) of Delegation Order No. 00-001.00H 
(Oct. 2, 2020).
    On September 7, 2021, the CAISO filed a Request for Emergency Order 
Pursuant to section 202(c) of the Federal Power Act (Application) with 
the Department ``to preserve the reliability of [the] bulk electric 
power system in California.'' In its Application, the CAISO cited 
``extremely challenging conditions including extreme heat waves, 
multiple fires, high winds, and various grid issues'' that could lead 
to electric demand outpacing available generation. The CAISO requested 
authority to dispatch several natural gas-fueled generation resources 
(``Covered Resources''). The CAISO stated that certain of the Covered 
Resources ``will not have completed federal environmental permitting 
requirements'' by the date it requested issuance of an emergency order, 
``and [cannot] operate unless they are subject to a DOE emergency 
order.'' The CAISO also noted that other units included in the Covered 
Resources are subject to permit limitations preventing them from 
operating at their full capacity. Because ``[t]he emergency for which 
the CAISO seeks relief is ongoing and could have serious consequences 
regarding the CAISO's ability to serve load in California and meet its 
reserve obligations,'' the CAISO requested that the Department issue an 
order, effective no later than September 10, 2021, and for a period of 
60 days, authorizing ``the generating units identified . . . that are 
subject to permit limits (or have yet to obtain permits) to operate at 
their maximum levels,'' along with authorization for ``testing of 
Covered Resources as necessary to ensure they can operate reliably and, 
in the case of new units, synchronize to the electric grid.'' The CAISO 
contended that the requested relief would ``help . . . meet the 
existing emergency and serve the public interest by preventing or 
mitigating power disruptions and the potential curtailment of 
electricity load within the CAISO balancing authority area.''
    After review of the facts and CAISO policy and procedure, the 
Deputy Secretary issued Order No. 202-21-2 (the Order) on September 10, 
2021, for a period of 60 days, directing the CAISO to dispatch the 
necessary electric generation units from the Covered Resources and to 
order their operation only as needed during (1) the issuance and 
continuation of an Energy Emergency Alert Level 2 condition or greater 
between the hours of 14:00 Pacific Daylight Time and 22:00 Pacific

[[Page 53648]]

Daylight Time after exhausting all reasonably and practically available 
resources; (2) a Transmission Emergency that requires operation of a 
Covered Resource to prevent or mitigate load curtailment during any 
operating hour; or (3) limited testing directed by the CAISO or 
synchronization of Midway Sunset Unit C, Greenleaf Unit 1, and 
Roseville Energy Park during periods of lowest electric demand for 
natural gas resources, as determined by the CAISO. For purposes of the 
Order, ``Energy Emergency Alert Level 2'' has the meaning set forth in 
section 3.6.4 of the CAISO System Emergency Operating Procedure Version 
13.1 (Aug. 20, 2021) (CAISO Emergency Operating Procedure). Also for 
purposes of the Order, ``Transmission Emergency'' has the meaning set 
forth in section 3.5 of the CAISO Emergency Operating Procedure.
    The Department has required the CAISO to report, by December 1, 
2021, ``source specific data for all dates between September 10 and 
November 9, 2021, on which the Covered Resources were 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 Department also 
required the CAISO to ``submit a final report by January 7, 2022, with 
any revisions to the information reported on December 1, 2021.'' After 
receiving the final data report from the CAISO, DOE will prepare a 
special environmental analysis of the potential impacts resulting from 
issuance of the Order, including impacts on air quality and 
environmental justice. The CAISO will be responsible for the reasonable 
third-party costs of the special environmental analysis.
    Procedural Background: The Covered Resources to which this Order 
pertains were identified in the Order and can be found on the website 
identified above. Given the emergency nature of the expected load 
stress, the responsibility of the CAISO to ensure maximum reliability 
on its system, and the ability of the CAISO to identify and dispatch 
generation necessary to meet the additional load, the Deputy Secretary 
determined that additional dispatch of the Covered Resources would be 
necessary to best meet the emergency and serve the public interest for 
purposes of FPA section 202(c). Because the additional generation may 
result in a conflict with environmental standards and requirements, the 
Deputy Secretary authorized only the necessary additional generation, 
with reporting requirements as described below.
    FPA section 202(c)(2) requires the Secretary of Energy to ensure 
that any FPA section 202(c) order that may result in a conflict with a 
requirement of any environmental law be limited to the ``hours 
necessary to meet the emergency and serve the public interest, and, to 
the maximum extent practicable,'' be consistent with any applicable 
environmental law and minimize any adverse environmental impacts. To 
minimize adverse environmental impacts, the Order ``limits operation of 
dispatched units to the times and within the parameters determined by 
the CAISO for reliability purposes.''
    The Deputy Secretary conditioned the Order by requiring the CAISO 
to report on actions taken pursuant to the Order regarding the 
environmental impacts of the Order and its compliance with the 
conditions of the Order. As noted previously, the CAISO must submit a 
final report by January 7, 2022, with any revisions to the information 
reported through that time. The environmental data the CAISO submits 
must include (1) Emissions data in pounds per hour for each Covered 
Resource unit, for each hour of the operational scenario, for carbon 
monoxide, nitrous oxides, particulate matter (PM) 2.5, PM10, 
volatile organic compounds, and sulfur dioxide, with details on the 
actual emissions in pounds per hour, permitted operating/emission 
limits, and the actual incremental emissions above the permit limits 
(except that for emissions units not equipped with continuous emission 
monitoring systems, actual emissions must be calculated using source 
test data); (2) stack parameters for each Covered Resource unit, 
including stack height, exit diameter, exit gas temperature, and exit 
velocity (or volumetric flow rate) (temperature and velocity must be 
the values applicable to the operations above permit limits); (3) the 
actual hours that each Covered Resource unit operated in excess of 
permit limits or operated without otherwise-required permits; (4) 
information provided to the California Air Resources Board (CARB) in 
response to the CARB's development and implementation of the plan to 
mitigate the effects of additional emissions authorized by Governor 
Newsom's July 30, 2021 emergency proclamation. The Department also 
noted that it may request additional information as it performs its 
special environmental analysis relating to the issuance of the Order.
    The reports will be available on the DOE website for this docket 
here: https://www.energy.gov/oe/federal-power-act-section-202c-caiso-september-2021.

Signing Authority

    This document of the Department of Energy was signed on September 
22, 2021 by Patricia A. Hoffman, Acting Assistant Secretary for the 
Office of Electricity and 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 September 23, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2021-21012 Filed 9-27-21; 8:45 am]
BILLING CODE 6450-01-P