On July 30, 2021, the Governor of California, Gavin Newsom, issued a state of emergency proclamation to address the accelerating and compounding effects droughts, wildfires, and heatwaves have on the reliability of California’s grid. Through October 31, 2021, on any day the California Independent System Operator (“CAISO”) issues a Grid Warning or Emergency notice, certain restrictions on daily and instantaneous temperature limitations in waste discharge requirements for thermal power plants will be suspended. In addition, to the extent the California Energy Commission (“CEC”) permitting requirements and conditions of certification as well as local air quality management district permitting requirements restrict generation, those conditions and requirements will be suspended. To conserve energy, ships berthed in California ports will not be required to use shore power and will be allowed to use auxiliary ship engines. Any exceedances of permitting requirements and other conditions, additional fuel used, and additional times of operation will need to be disclosed to the CEC, the California Air Resources Board (“CARB”), and the relevant local air quality management district.
In addition, the Department of Finance is directed to fund electrical demand reduction programs, to be established by California publicly owned and investor owned utilities. Such programs may run no later than October 31, 2021 and are subject to restrictions. Participants in such programs may be able to use stationary and portable generators during the time of a CAISO Grid Warning or Emergency notice. Further, the CEC and the Department of Water Resources are directed to enter contracts to procure materials, goods, and services necessary for projects likely to be online by October 31, 2021.
The CEC will establish an expedited process for certain actions, including streamlined post certification petitions for changes in power plant project design, operation, performance. The CEC will also be able to issue a license for certain new emergency and temporary power generators of 10 MW or more, bypassing California Environmental Quality Act provisions, if it determines the generator will deliver net peak energy before October 31, 2021. A similar allowance is made for the CEC licensing new or expanded battery storage systems of 20 MW or more that can discharge for at least two hours and will deliver net peak energy by October 31, 2022. The CAISO is encouraged to expedite the interconnection of resources as specified by the CEC for purposes of this proclamation.
The CPUC is also charged with expediting is actions with respect to demand response programs as well as storage and clean energy projects to ensure supply through October 31, 2021 and to increase clean energy capacity by October 31, 2022.
The State of Emergency proclamation is available here.
For more information, please contact Sean Neal, Lauren Perkins, or Sylwia Dakowicz.
