[Federal Register Volume 88, Number 32 (Thursday, February 16, 2023)]
[Notices]
[Pages 10105-10106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03314]



[[Page 10105]]

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DEPARTMENT OF ENERGY

[DOE Docket No. 202-22-3]


Emergency Order Issued to the Electric Reliability Council of 
Texas, Inc. (ERCOT) To Operate Power Generating Facilities Under 
Limited Circumstances in Texas 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. DOE issued an emergency order to the 
Electric Reliability Council of Texas, Inc. (ERCOT) to operate certain 
power generating facilities under limited circumstances as described 
further. ERCOT is the independent system operator for over 26 million 
people in Texas (ERCOT Region). The state of Texas experienced a severe 
winter weather system that caused a significant drop in temperatures. 
While the vast majority of generating units in the ERCOT region 
continued to operate without any problem, a small number of units 
experienced operating difficulties due to cold weather or gas 
curtailments. Additional generation required to serve the ERCOT Region 
was anticipated to result in a conflict with environmental standards 
and requirements, therefore DOE authorized only the necessary 
additional generation for ERCOT to sufficiently supply the amount of 
energy needed to prevent electrical disruption. Because no facilities 
operated above permitted levels during the emergency as authorized by 
the DOE order, no environmental impacts resulted from DOE issuing the 
order. Consequently, DOE has decided not to prepare a special 
environmental analysis.

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.
    The Order and all related information are available here: https://www.energy.gov/ceser/federal-power-act-section-202c-ercot-december-2022.

SUPPLEMENTARY INFORMATION:

Background

Section 202(c) of the Federal Power Act

    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 ERCOT
    On December 23, 2022, ERCOT filed a Request for Emergency Order 
Under section 202(c) of the Federal Power Act (Application) to take 
``measures to ensure the supply of generation will continue to be 
sufficient to meet system demand and reserve requirements'' in response 
to the severe winter weather impacting much of the United States. The 
temperature drop, accompanied by high winds in excess of 40 mph 
resulted in wind chill values across the state generally below ten 
degrees Fahrenheit, with some areas of Texas experiencing wind chills 
values well below zero degrees.
    In its Application, ERCOT noted that a small number of generating 
units experienced operating difficulties due to cold weather or gas 
curtailments and that one generation owner was limited in its power 
output due to emissions, effluent, and other limits established by 
federal environmental permits, or that, due to continuing cold weather 
conditions, may become subject to such operational limitations. 
Specifically, ERCOT indicated that the operation of gas-fired 
generators may be impacted by permit restrictions on nitrogen oxide, 
carbon monoxide, and ammonia emissions. ERCOT requested the authority 
to authorize the provision of additional energy from the units 
identified in Exhibit A of its Application, as well as any other 
generating units subject to emissions or other permit limitations, 
subject to the Order (``Specified Resources''). ERCOT stated that the 
emergency order it was requesting could result in exceedances of 
environmental limits. Given the permit limits of the Specified 
Resources, ERCOT anticipated that the additional capacity may not be 
made available absent an order under FPA section 202(c).
2. ERCOT Order
    On December 23, 2022, the Under Secretary of Energy for 
Infrastructure, acting pursuant to Delegated authority, issued Order 
No. 202-22-3 (the Order). As set forth in the Order, the Under 
Secretary of Energy for Infrastructure found that because of the 
expected shortage of electric energy, shortage of facilities for the 
generation of electric energy, and other causes in Texas and within the 
ERCOT region, the issuance of the Order would meet the emergency and 
serve the public interest.
    The Order authorized ERCOT to dispatch the Specified Resources for 
the period beginning with the issuance of the Order on December 23, 
2022, to 10:00 a.m. Central Time on December 25, 2022, under the 
conditions set forth in the Order, including the following:
    (i) For any Generation Resource or Settlement Only Generator whose 
operator notifies ERCOT that the unit is unable, or expected to be 
unable, to produce at its maximum output due to an emissions or other 
limit in any federal environmental permit at any point before 12:00 
p.m. Central Time on Saturday, December 24, 2022, and between 18:00 
(6:00 p.m.) Central Time on Saturday, December 24, 2022 and 10:00 
Central Time on Sunday, December 25, 2022, the unit would be allowed to 
exceed any such limit only during any period for which ERCOT has 
declared an Energy Emergency Alert (EEA) Level 2 or Level 3.\1\ This 
incremental amount of restricted capacity would be offered at a price 
no lower than $1,500/MWh. Once ERCOT declares that the EEA Level 2 
event has ended, the unit would be required to immediately return to 
operation within its permitted limits. And at all other times, the unit 
would be required to operate within its permitted limits.
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    \1\ For more information on EEA levels, see https://nercstg.nerc.com/pa/rrm/ea/Pages/Energy-Emergency-Alerts.aspx.
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    (ii) For any Generation Resource whose operator notifies ERCOT that 
the unit is offline or would need to go offline at any point before 
12:00 p.m. Central Time on Saturday, December 24, 2022, and between 
18:00 (6:00 p.m.) Central Time on Saturday, December 24,

[[Page 10106]]

2022 and 10:00 a.m. Central Time on Sunday, December 25, 2022 due to an 
emissions or other limit in any federal environmental permit, ERCOT may 
issue a Reliability Unit Commitment (RUC) instruction directing the 
unit operator to bring the unit online, or to keep the unit online, and 
to operate at the minimum level at which the Resource can be 
sustainably operated. In this circumstance, the operator would be 
allowed to make all of the unit's capacity available to ERCOT for 
dispatch during any period for which ERCOT has declared an Energy 
Emergency Alert (EEA) Level 2 or Level 3. This incremental amount of 
restricted capacity would be offered at a price no lower than $1,500/
MWh. Once ERCOT declares that such an EEA Level 2 event has ended, the 
unit would be required to immediately return to operating at a level 
below the higher of its minimum operating level or the maximum output 
allowable under the permitted limit.
    The Order required that ERCOT provide a report by January 25, 2023, 
for the dates between December 23, 2022 and December 25, 2022, 
inclusive on which the Specified Resources were operated, the hours of 
operation, and exceedance of permitting limits, including sulfur 
dioxide, nitrogen oxide, mercury, carbon monoxide, and other air 
pollutants, as well as exceedances of wastewater release limits. The 
report must include, ``(i) emissions data in pounds per hour for each 
Specified Resource unit, for each hour of the operational scenario, for 
CO, NOX, PM10, VOC, and SO2; (ii) 
emissions data must include emissions (lbs./hr.) calculated consistent 
with reporting obligations pursuant to operating permits, permitted 
operating/emission limits, and the actual incremental emissions above 
the permit limits; (iii) the number and actual hours each day that each 
Specified Resource unit operated in excess of permit limits or 
conditions, e.g. ``Generator #1; December 24, 2022; 4 hours; 04:00-
08:00 CT''; (iv) the amount, type and formulation of any fuel used by 
each Specified Resource; (v) all reporting provided under the Specified 
Resource's operating permit requirements over the last three years to 
the United States Environmental Protection Agency or local Air Quality 
Management District for the location of a Specified Resource that 
operates pursuant to the Order; (vi) additional information requested 
by DOE as it performs any environmental review relating to the issuance 
of the Order; and (vii) information provided by the Specified Resource 
complied with applicable environmental requirements to the maximum 
extent feasible while operating consistent with emergency conditions.
    The Order also requires ERCOT to submit a final report by February 
25, 2023, with any revisions to the information reported on January 25, 
2023. In this case, because no facilities operated above permitted 
levels during the emergency as authorized by the DOE order, no 
environmental impacts resulted from DOE issuing the order. 
Consequently, DOE has decided not to prepare a special environmental 
analysis.

Signing Authority

    This document of the Department of Energy was signed on February 
10, 2023, 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 February 13, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-03314 Filed 2-15-23; 8:45 am]
BILLING CODE 6450-01-P