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, 61595-61596 [2022-22124]

Agencies

• DEPARTMENT OF ENERGY

[Federal Register Volume 87, Number 196 (Wednesday, October 12, 2022)]
[Notices]
[Pages 61595-61596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 [email protected].

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, 
[email protected], 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: https://www.energy.gov/ceser/federal-power-act-section-202c-banc-september-2022.

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 https://www.energy.gov/ceser/federal-power-act-section-202c-banc-september-2022. 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