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Energy Assurance Plan Base Plan

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Energy Assurance Plan Base Plan Arizona Energy Assurance Plan August 31, 2017 Arizona Energy Assurance Plan Base Plan The Arizona Energy Assurance Plan is a result of collaboration between state agencies and partners, led by the Arizona Department of Emergency and Military Affairs. For more information on this plan, contact: Matt Heckard Technological Hazards Branch Manager [email protected] 602-464-6308 Arizona Energy Assurance Plan Base Plan DEMA-EM maintains the Energy Assurance Plan as a living document intended to be continuosly reviewed and revised, with input from all stakeholders, to guarantee the most current plan possible. PLAN REVIEW, EVALUATION, AND CHANGES Recommendation By Date Summary of Activity Plan Section Entry Made By August 2017 BP-i Arizona Energy Assurance Plan Base Plan DEMA-EM is committed to ongoing training, exercise, and engagement of the Energy Assurance Plan to validate capabilities of the state energy emergency consequence management and support effort. TRAINING, EXERCISE, AND ENGAGEMENT ACTIVITY Date Summary of Activity Partners Involved Entry Made By August 2017 BP-ii Arizona Energy Assurance Plan Base Plan BASE PLAN INTRODUCTION .................................................................................................................BP-1 PURPOSE, SCOPE, SITUATION OVERVIEW, AND ASSUMPTIONS ..........................BP-2 PURPOSE ..........................................................................................................................BP-2 SCOPE ..............................................................................................................................BP-2 APPLICABILITY ................................................................................................................BP-2 SITUATION OVERVIEW ....................................................................................................BP-3 PLANNING ASSUMPTIONS ................................................................................................BP-7 PLAN STRUCTURE .............................................................................................................BP-8 BASE PLAN ......................................................................................................................BP-8 ANNEXES .........................................................................................................................BP-8 CONCEPT OF OPERATIONS .............................................................................................BP-8 COORDINATION WITH LOCAL GOVERNMENTS .................................................................BP-8 COORDINATION WITH OTHER STATE GOVERNMENTS ......................................................BP-9 COORDINATION WITH THE FEDERAL GOVERNMENT ........................................................BP-9 DIRECTION, CONTROL, AND COORDINATION .........................................................BP-10 ORGANIZATION AND ASSIGNMENT OF RESPONSIBILITIES ................................BP-11 EMERGENCY SUPPORT FUNCTION 12 – ENERGY ............................................................BP-12 FEDERAL GOVERNMENT SUPPORT .................................................................................BP-12 STRATEGIC PETROLEUM RESERVE ................................................................................BP-13 OFFICE OF ELECTRICITY DELIVERY AND ENERGY RELIABILITY (OE) ...........................BP-13 ENERGY INFORMATION ADMINISTRATION (EIA) ..........................................................BP-14 NATIONAL ASSOCIATION OF STATE ENERGY OFFICIALS (NASEO) ..............................BP-14 NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS (NARUC) ........BP-14 FEDERAL ENERGY REGULATORY COMMISION (FERC) .................................................BP-14 THE NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC) .....................BP-15 WESTERN AREA POWER ADMINISTRATION (WAPA) ....................................................BP-15 WESTERN STATES PETROLEUM ASSOCIATION (WSPA) ................................................BP-15 ARIZONA PETROLEUM MARKETERS ASSOCIATION (APMA) .........................................BP-15 INFORMATION COLLECTION, ANALYSIS, AND DISSEMINATION .......................BP-15 PLAN DEVELOPMENT AND MAINTENANCE.............................................................BP-16 TRAINING AND EXERCISING THE PLAN ..........................................................................BP-16 CONTEXT OF AUTHORITY FOR ENERGY ASSURANCE ..........................................BP-17 August 2017 BP-iii Arizona Energy Assurance Plan Base Plan ANNEXES ANNEX 1 - BLACK SKY AND ELECTRICAL GRID DISRUPTION ..............................A1-1 ANNEX 2 - TRANSPORTATION FUELS SHORTAGE AND DISRUPTION .................A2-1 ANNEX 3 - ELECTRICAL ENERGY IN ARIZONA .........................................................A3-1 ANNEX 4 - FUEL REDUCTION MEASURES ...................................................................A4-1 ANNEX 5 - PRIORITY END USER ....................................................................................A5-1 ANNEX 6 - ARIZONA FUEL SYSTEM VULNERABILITIES AND DISRUPTION CONSEQUENCES ................................................................................................................A6-1 ANNEX 7 – ENERGY ASSURANCE AND THE SMART GRID .....................................A7-1 August 2017 BP-iv Arizona Energy Assurance Plan Base Plan INTRODUCTION Arizona’s 2010 population of over 6,392,017 inhabitants is ranked 16th within the United States, as reported by the U.S. Census. Due to a period of rapid expansion, the population of the state has grown by 24.6 percent from the years 2000 to 2010. Despite much development and modern infrastructure, the state is strongly dependent on out-of-state petroleum and natural gas supplies. Most of the energy infrastructure in Arizona is privately owned. The private sector maintains a comprehensive inventory of their infrastructure and coordinates among industry partners during incidents through highly developed and tested emergency response protocols. The State of Arizona supports this robust effort in order to facilitate communication and cooperation between the public and private sectors. Objectives include sharing of information, support for consistent messaging to the community, and when requested provide government resource support in order to help these private sector partners ensure a readily available supply of energy to maintain the economy, health, and wellness of the whole community. The original Arizona Fuel Emergency Plan was written based on the recommendation of the federal Public Law 94-:163, Section 362, of 1975. This law called for the development of standby state energy conservation plans to reduce energy demand by regulating the public and private consumption of energy during a severe energy supply interruption. Although the State of Arizona does not have specific legislation that addresses energy emergencies, there are statutes that govern the declaration of emergencies within the state. Within the State Emergency Response and Recovery Plan (SERRP), the Emergency Support Function (ESF) 12 – Energy Annex facilitates coordination and support for the restoration and re-establishment of damaged energy systems and components for state-level or regional incidents, and forms the basis of the strategy for the consequence management effort during an energy emergency. The State of Arizona Energy Assurance Plan (the Plan) is a supplementary document to the SERRP, and provides additional hazard-specific planning and consequence management considerations. The Plan provides an overall basis by which appropriate energy- related policies, procedures, and regulations may be applied by the state if an energy emergency occurs. An "energy emergency" is an actual or impending shortage or curtailment of usable, necessary energy resources, such that the maintenance of necessary services; the protection of public health, safety, and welfare; or the maintenance of a basically sound economy is imperiled in any geographical section of the state or throughout the entire state. The Plan is designed to provide a basic framework for statewide effort to support and assist in the coordination of private sector efforts with government partners to reduce the impacts of a shortage to the state’s economy and its citizens’ health, safety, and welfare. The Plan represents a specific hazard-specific application of the the SERRP and ESF 12 which relies on a mixed strategy to respond to varying degrees of an energy shortage. The basic philosophy calls for reliance on the market to the fullest extent necessary. The Arizona Department of Emergency and Military Affairs, Emergency Management (DEMA-EM) is the lead agency for the SERRP and will provide state-level support for the coordination of energy emergency contingency measures with private sector partners as described in the SERRP. The Governor may declare an state of emergency in the event of an energy emergency. August 2017 BP-1 Arizona Energy Assurance Plan Base Plan Energy infrastructure owners develop effective response measures informed by a comprehensive awareness of the how these energy resources can impact the community if disrupted and how interdependencies affect the operational sustainability of their assets. Under Arizona state law, public service utilities are regulated monopolies given the opportunity to earn a fair and reasonable return on their investments. These organizations maintain awareness of geographic
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