[Federal Register Volume 88, Number 189 (Monday, October 2, 2023)]
[Notices]
[Pages 67740-67742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21719]


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DEPARTMENT OF ENERGY

[DOE Docket No. 202-23-1]


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 in this section. ERCOT is the independent system operator for 
over 26 million people in Texas (ERCOT Region). The State of Texas 
experienced a sustained heat wave that resulted in abnormally high 
electric demand. Because the additional generation required to serve 
the ERCOT Region was anticipated to result in a conflict with 
environmental standards and requirements, DOE authorized only the 
necessary additional generation for ERCOT to sufficiently supply the 
amount of energy needed to prevent electrical disruption. However, 
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 <a href="/cdn-cgi/l/email-protection#6c2d1f072f3e2c041d42080309420b031a"><span class="__cf_email__" data-cfemail="b4f5c7dff7e6f4dcc59ad0dbd19ad3dbc2">[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#470c22292922332f690532222b2b072f366923282269202831"><span class="__cf_email__" data-cfemail="317a545f5f5445591f7344545d5d7159401f555e541f565e47">[email protected]</span></a>, to <a href="/cdn-cgi/l/email-protection#531220381001133b227d373c367d343c25"><span class="__cf_email__" data-cfemail="5e1f2d351d0c1e362f703a313b70393128">[email protected]</span></a>, 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-september-2023.

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.''

[[Page 67741]]

1. Request for Emergency Order From ERCOT
    On September 7, 2023, ERCOT filed a Request for Emergency Order 
Under Section 202(c) of the Federal Power Act (Application) to allow 
ERCOT to operate certain electric generating units up to their maximum 
generation output levels to preserve the reliability of the bulk power 
system.
    In its Application, ERCOT noted that the region was experiencing 
extreme heat conditions resulting in especially high electric demand. 
On September 6, 2023, ERCOT reported that it established a September 
load record, and, on the same day, it declared an Energy Emergency 
Alert (EEA) Level 2 due to low reserve margins coupled with a post-
contingency transmission overload. ERCOT observed high loading on a 
certain transmission element in similar circumstances in the weeks 
preceding September 7, 2023, and assessed that a post-contingency 
overload could occur again during the later afternoon and evening hours 
of September 7, 2023, and September 8, 2023. Such an overload would 
have required ERCOT to reduce output of resources impacting the loading 
on that element, exacerbating ERCOT's scarcity concern. The extreme 
heat and high electric demand were expected to continue through 
September 8, 2023. 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 September 7, 2023, the Secretary of Energy issued Order No. 202-
23-1 (the ERCOT Order). As set forth in the ERCOT Order, the Secretary 
for Energy found that given the emergency nature of the expected load 
stress, the responsibility of ERCOT to ensure maximum reliability on 
its system, and the ability of ERCOT to identify and dispatch 
generation necessary to meet the additional load, 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 September 7, 
2023, for the hours of 5 p.m. through 9 p.m. CDT and 5 p.m. and 9 p.m. 
CDT on Friday, September 8, 2023, 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, the unit would be allowed to 
exceed any such limit only between the hours of 5 p.m. and 9 p.m. CDT 
on Thursday, September 7, 2023, and 5 p.m. and 9 p.m. CDT on Friday, 
September 8, 2023, and only if ERCOT has declared an EEA Level 2 or 
Level 3 that remained in effect during all or any part of either such 
period. This incremental amount of restricted capacity would be offered 
at a price no lower than $1,500/MWh. Once ERCOT declares that it is no 
longer in an EEA Level 2 or 3, or at 9 p.m. CDT, whichever occurs 
first, the unit would be required to return to operation within its 
permitted limits as expeditiously as possible. And at all other times, 
the unit would be required to operate within its permitted limits.
    (ii) For any Generation Resource whose operator notifies ERCOT that 
the unit will be offline at any point between the hours of 5 p.m. and 9 
p.m. CDT Thursday, September 7, 2023, and 5 p.m. and 9 p.m. CDT Friday, 
September 8, 2023, or would need to go offline during either such 
period, due to an emissions or other limit in any Federal environmental 
permit, if ERCOT has declared or expects to declare an EEA Level 2 or 
Level 3 that is expected to be in effect during all or any part of that 
period, then ERCOT may issue a Reliability Unit Commitment (RUC) 
instruction in advance of that period or during that period 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. If ERCOT issues the instruction in advance of 
either such period, then ERCOT shall endeavor to commit the unit at a 
time that allows the unit to reach its low sustained limit no earlier 
than the beginning of that period or the start of any EEA Level 2, 
whichever is expected to occur last. An operator subject to RUC 
instruction described herein would be allowed to make all of the unit's 
capacity available to ERCOT for dispatch during any period between the 
hours of 5 p.m. and 9 p.m. CDT on Thursday, September 7, 2023, and 5 
p.m. and 9 p.m. CDT Friday, September 8, 2023, for which ERCOT has 
declared an EEA Level 2 or Level 3. This capacity would be offered at a 
price no lower than $1,500/MWh. Once ERCOT issues a declaration 
indicating that it is no longer in an EEA Level 2 or 3, or at 9 p.m. 
CDT, whichever occurs first, the unit would be required to return to 
operation within its permitted limits as expeditiously as possible 
unless the unit is subject to a subsequent RUC instruction that 
complies with the terms specified herein.
    The Order required that ERCOT provide a report by October 6, 2023, 
for the dates between September 7, 2023 and September 8, 2023, 
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 was required to include, (i) emissions data in pounds per hour 
for each Specified Resource unit, for each hour of the operational 
scenario, for CO, NO<INF>X</INF>, PM<INF>10</INF>, VOC, and 
SO<INF>2</INF>; (ii) emissions data must have included 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; September 
8, 2023; 4 hours; 04:00-08:00 CDT''; (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 required that ERCOT submit a final report by November 6, 
2023, with any revisions to the information reported on October 6, 
2023. However, 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

[[Page 67742]]

prepare a special environmental analysis.

Signing Authority

    This document of the Department of Energy was signed on September 
26, 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 September 27, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-21719 Filed 9-29-23; 8:45 am]
BILLING CODE 6450-01-P


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