06 LC 97
0729
Senate
Resolution 1195
By:
Senator Cagle of the 49th
ADOPTED
SENATE
A
RESOLUTION
Urging
the Environmental Protection Division of the Georgia Department of Natural
Resources to allow electric generation peaking facilities, which have the
capability to fire natural gas or fuel oil and the flexibility to use either
fuel throughout the year, assuring the state will benefit from the operation of
these facilities when natural gas supplies have been interrupted or are
otherwise highly volatile; and for other purposes.
WHEREAS,
a reliable and affordable supply of energy is essential to the well-being and
economic prosperity of the citizens of Georgia; and
WHEREAS,
Georgiás
energy infrastructure and supply were disrupted in the wake of Hurricanes
Katrina and Rita in August and September of 2005; and
WHEREAS,
the damage to
Georgiás
energy infrastructure demonstrated the importance of a diverse and robust energy
supply system not dependent upon a particular fuel or technology;
and
WHEREAS,
on October 3, 2005, Governor Sonny Perdue issued a call for the development of a
comprehensive energy plan that encourages greater diversity and reliability of
Georgiás
energy supply; and
WHEREAS,
since the late 1990s wholesale and retail prices for natural gas, petroleum,
fuel oils, and coal have been increasingly volatile as a result of reduced
supplies and growing demand; and
WHEREAS,
electric generating peaking facilities in this state stand ready to play a
significant role in the
statés
energy plan and portfolio, particularly in times of emergency, fuel supply
interruptions, or extreme demand; and
WHEREAS,
electric peaking facilities serve as a backstop for the regional power grid
during events of system upset, emergency, and extreme demand; and
WHEREAS,
numerous electric peaking facilities in Georgia are each capable of supplying
the electricity needs of several hundred thousand households; and
WHEREAS,
electric peaking facilities are designed to be available on short notice and can
operate in a broad range of conditions; and
WHEREAS,
some electric peaking facilities are designed to utilize natural gas as a
primary fuel and have on-site storage for fuel oil as a backup fuel;
and
WHEREAS,
these peaking facilities operate under air quality permits from the Georgia
Environmental Protection Division requiring that they be equipped with "Best
Available Control Technology" and some of these air quality permits allow the
use of fuel oil as a backup fuel to be utilized under specific conditions;
and
WHEREAS,
in order for these peaking facilities to be a strategic energy resource, they
must be allowed to operate in a manner consistent with their design, the
protection of
Georgiás
air quality, and contractual obligations; and
WHEREAS,
the Georgia Environmental Protection
Divisiońs
rules currently restrict fuel oil use in some peaking facilities by imposing
emissions standards that are more stringent than can be achieved by the best
available control technology, effectively preventing the use of backup and
emergency fuel supplies during much of the hurricane season or periods of
extreme demand; and
WHEREAS,
without the ability to use fuel oil as a back-up in emergencies or periods of
extreme demand that occur from May 1 through September 30 each year, the role of
peaking plants as energy emergency responders is compromised; and
WHEREAS,
following Hurricane Katrina, regional natural gas infrastructure was damaged and
natural gas supplies were disrupted, affecting many baseload power plants and
necessitating the use of peaking facilities to meet load requirements;
and
WHEREAS,
the post-Katrina events demonstrate that the natural gas supply is interruptible
throughout the year and operation on backup fuel oil in peaking plants is at
times necessary to maintain a reliable electric energy supply for Georgia;
and
WHEREAS,
the air quality in the Atlanta area and Georgia has improved in the last five
years; and
WHEREAS,
given proper control technology, fuel oil operation can be accomplished in an
environmentally responsible manner without degrading the air in the Atlanta area
or Georgia while ensuring that Georgia and the region gain full benefit from
these existing and critically important power generating assets;
and
WHEREAS,
reevaluating the Georgia Environmental Protection
Divisiońs
restrictions on the use of fuel oil in these peaking facilities will not cause
the air quality in the Atlanta area or Georgia to be adversely
affected.
NOW,
THEREFORE, BE IT RESOLVED BY THE SENATE that this body urges the Environmental
Protection Division of the Georgia Department of Natural Resources to allow
peaking facilities to operate using fuel oil when necessary to assure a reliable
energy supply for Georgia, and to develop and present to the Board of the
Department of Natural Resources any new rules necessary to ensure that the state
will benefit from the operation of these facilities in times of distress or
extreme demand.
BE
IT FURTHER RESOLVED that the Secretary of the Senate is authorized and directed
to transmit an appropriate copy of this resolution to the director of the
Environmental Protection Division of the Georgia Department of Natural
Resources.