hr1604_LC_36_0202_a

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06 LC 36 0202

House Resolution 1604

By: Representative Lewis of the 15th

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 HOUSE OF REPRESENTATIVES 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 Clerk of the House of Representatives 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.