Addendum 2.pdf

March 10, 2023

ADDENDUM 2

TO: VENDORS

FROM: CARMELITA GRAHAM, PURCHASING DIRECTOR

RE: REQUEST FOR PROPOSAL NO. RFP OOE 22 23 71

FLORIDA’S ENERGY ASSURANCE AND SECURITY STUDY

This addendum is to provide answers to questions received in reference to this request for proposal.

Question / Answer

1. What are the budgeted allocations/maximum dollar limits for the Initial Term of six months under 2.3 as well as the full-year allocations/maximum dollar limits for each of the subsequent three-year periods as described under 2.4?

The maximum amount available for the initial term is up to $200,000. Future allocations.

if required after USDOE’s review, will be determined as needed.

2. Can FDACS provide potential bidders access to a copy of the US Department of Energy’s Assistance Agreement DE-EE0009476 referenced in 2.1?

Yes. Please visit the FDACS Contract Transparency Portal to access the grant agreement.

Click on Link: https://contracts.fdacs.gov Insert the Agency Assigned Contract ID: 27755 Click the Search Contracts button Click on the displayed contract record below Click on the documents tab.

To review the agreement, please click on the “redacted final contract”.

3. Please clarify the nomenclatures used to refer to the final product. Under 2.1, it is stated that “Florida has developed over the years numerous plans and reporting mechanisms to address energy assurance.” An example is provided thereafter.

The subsequent narrative in 2.2 under Scope of Work and Deliverables says “FDACS seeks proposals from eligible vendors to revise the State of Florida’s energy assurance and security plan.” (emphasis ours) Therefore, it appears that the requested scope asks the vendor to combine multiple plans, policies and elements thereof into a single energy and assurance security plan that meets the DOE requirement for a State Energy Security Plan (SESP). Is that correct?

If yes, approximately how many plans and reporting mechanisms exist and need to be incorporated into the report sought under the Scope?

If not, is there a single existing plan that needs revising to ensure compliance with the DOE requirements? If there is such a plan, is it available for interested bidders to review?

Yes, only the Florida Energy Assurance Plan – April 2011 needs to be incorporated into the report under the Scope.

4. How much funding was allocated for this project?

Please see response to Question #1.

5. Will you provide the September 30, 2022, submitted version of Florida’s SESP to applicants?

Please see Exhibit 1: Signed – State Energy Security Plan Cover Letter.

6. Has stakeholder engagement been completed as part of the Sept. 2022 plan?

a. Does this include both State agencies and energy industry stakeholders?

b. How granular will we be able to see the output of those meetings?

Discussions were held with the Florida Division of Emergency Management, the Florida Public Service Commission, and the Florida Reliability Coordinating Council to develop the RFP.

7. “The Respondent shall provide names, addresses, phone numbers and email contacts of the two (2) customers for whom the Respondents have identified in this narrative on the ATTACHMENT B - REFERENCES/PAST PERFORMANCE form. Respondents who do not provide at least 3 references shall be deemed as non-responsive, and their Proposal shall be rejected as such.” Are vendors required to provide 2 or 3 references?

Deletions are struck through, and additions are highlighted.

The Respondent shall provide names, addresses, phone numbers and email contacts of three (3) two (2) customers for whom the Respondents have identified in this narrative on the ATTACHMENT B - REFERENCES/PAST PERFORMANCE form.

8. Are you expecting any travel necessary for this project?

Travel expenditures will be based on the respondent’s proposal of deliverables.

9. Section 2.1 at various points refers to a State Energy Security Plan, an Energy Supply Assurance Plan, an Energy Infrastructure Assurance plan and the State of Florida’s (existing) energy assurance and security plan. Section 2.1 also indicates that among other reports on the Florida Energy markets, there is a Comprehensive Emergency Management Plan that addresses all 20 ESF functions.

a. Will the Contractor have access to all the listed plans in section 2.1, including the ESF-12 and ESF-19 plans?

b. What is the difference between the Energy Supply Assurance Plan and the Energy Infrastructure Assurance Plan that are defined deliverables?

c. Section 2.2 appears to clearly list what should be included in the State Energy Security Plan. Should we estimate to those criteria?

a. Yes.

b. Please see question #19 response.

c. Yes. Please see question #12 response.

10. In Section 2.2B.1, what specific plan should be examined? The Plan submitted September 2022, or other referenced plans in 2.1?

The Florida Energy Assurance Plan – April 2011 should be examined. The other plans referenced are incorporated into this Plan).

11. In Section 2.2B.2, the SESP’s for other states are either not complete or not in the public domain. Will Florida acquire several relevant plans for the Contractor to review?

No, the contractor must obtain information that is in the public domain. The analysis should include plans and policies from other states that address these issues, not necessarily a state’s SESP.

12. Will Florida provide DOE feedback on the submitted September 2022 plan?

See Exhibit II- DOE Follow-up to FL SESP Letter.

13. Regarding Tab E (p 10), will the Respondents be held to a firm, fixed price for each of the deliverables, or only for the project in total?

Respondents will be held to a fixed price for each deliverable.

14. What information will be provided to bidders who attend the teleconference for the Bid Openings on March 27?

In accordance with Florida Statutes 119, the Department will conduct a Public Meeting for Opening of Proposals. During this time, vendors are encouraged to join the teleconference line to hear the list of received proposal firms. The Department will not answer inquires at the opening process.

15. How much is the MyFloridaMarketPlace transaction fee for the selected bidder?

When is this transaction fee owed?

Please refer to Florida Statutes 287.057(24) and Florida Administrative Code 60A-1.031.

16. On page 4 the RFP references three plans (State Energy Security Plan, Energy Supply Assurance Plan, and Energy Infrastructure Assurance Plan) - can FDACS confirm the name(s) of the final product(s)?

The final product is the State Energy Security Plan (SESP).

17. Can FDACS confirm if the final plan(s) needs to be submitted to FDACS before the September 30 deadline for the DOE’s federal fiscal year 2023 state energy security plan deadline?

The final draft plan is due by August 28, 2023.

18. What form is the current Energy Assurance Plan in? Are the Energy Supply Assurance Plan and Energy Infrastructure Assurance Plan intended to be annexes to the Energy Assurance Plan, or two additional standalone Plans?

They will be annexes to the State Energy Security Plan.

19. Can FDACS provide the table of contents for the planning documents that are required to be reviewed as part of this project?

Please see Exhibit III- Florida Energy Assurance Plan.

20. May we propose additional services in our response?

Yes, however if additional services are proposed. The Department reserves the right to request a detailed budget. All fees for services must be included in the price sheet.

21. Is there a not to exceed amount for this proposal?

Please see Question #1 response.

22. On page 5 of the RFP, 2.2 – Section B it states “In addition, the final report must include an analysis of the following: . . . 2. Compare Florida’s plans & policies to other states’ plans to employ best practices.” Will Florida provide other states’ plans and policies? Or Is the contractor expected to secure other states’ plans and policies?

Please see Question #11 response.

23. On page 9 of the RFP, it states the respondent shall provide both 2 and 3 customers on ATTACHMENT B – REFERENCES/PAST PERFORMANCE form. Can the Department verify if they would like 2 or 3 References/Past Performances from the respondent?

Please see Question #7 response.

24. On page 28 of the RFP, Attachment I Contract, it states “Failure to meet the deliverables of this AGREEMENT shall result in a financial consequence. The Contractor shall perform all deliverables within the time frame established in this AGREEMENT. The DEPARTMENT shall reduce payment by: _____”. Can the department please clarify what the financial consequences are?

Financial consequences provide a methodology to reduce or withhold payment due to non-compliance or non-performance of services by the contractor. The specific financial consequence(s) will be developed based on the awardee’s proposal.

25. RFP Reference: Section 1.1. Is this work only funded using federal funds?

Yes.

26. RFP Reference: Section 1.1. Is the federal funding only from the IIJA SEP funding?

No.

27. RFP Reference: Section 1.1. What source of funding is the Department using for FY22-23 if the anticipated start date begins in April 2023?

The Department is using the State Energy Program (SEP) funding.

28. RFP Reference: Section 1.1. Are any state funding sources being used? If other funding sources are being used, what are they?

Please see Question #25 response.

29. RFP Reference: Section 1.1 and Section 2.1. To help vendors tailor their proposal response, can FDACS please provide further detail beyond the descriptions in Section 1.1 and Section 2.1 on the purpose and intended use for the Plans? For example, does the Department have aspirations to incorporate the Governor’s vision and priorities for the state or is the intention to solely comply with the Federal DOE and SESP instructions?

The intended use of the plan is to comply with the USDOE requirements for the SESP.

30. RFP Reference: Section 2.1-2.2. Does the expected scope include (1) energy assurance and security assessment only, (2) updates to the existing plans only, or

(3) both?

Both.

31. RFP Reference: Section 2.2. Does FDACS anticipate any attribution of content in the published Plan to a consulting partner?

32. RFP Reference: Section 2.2. Will FDACS coordinate collaboration with additional entities required to develop the plans (e.g., DEM, FPSC)?

33. RFP Reference: Section 2.2. What level of participation and resources will FDACS contribute to the assessments and the report? What number of resources at x% of time can respondents expect FDACS to contribute?

The draft report will be reviewed and edited by FDACS.

34. RFP Reference: Section 2.1. Background (page 4) states “The FDACS/Department seeks a consultant through this RFP to revise the State of Florida’s energy assurance and security plan…”. Can the existing plan be made available for review? When was the initial plan created and/or last revised?

Please see Question #11 response.

35. RFP Reference: Section 2.2. At what level of detail is the State seeking for risk assessment to performed (e.g., system-wide risks, at individual asset level)?

Please see Question #12 response.

36. RFP Reference: Section 2.2. What level of detail is the State seeking in terms risk mitigation options (e.g., system-wide solutions, at individual asset level)?

Please see Question #12 response.

37. In item 2.2 of RFP, it states, "All proposals must be concise and target this particular RFP. " Could you provide any additional guidance on the limits for the response?

Provide enough detail as required for thorough evaluation to satisfy paragraph 3.8.

38. Does FDACS have an existing mechanism for secure file sharing and storage? If not, are there any restrictions or constraints around the specific mechanism (e.g., cloud storage locations, FTP site requirements, restrictive firewalls) for the consultant to employ?

Yes.

39. Could FDACS share any information (table of contents, public/redacted version, etc.) about the State of Florida’s current energy assurance and security plan?

Please see Question #19 response.

This Addendum is hereby incorporated into and made a part of the above noted Request for Proposal. All other terms, conditions and specifications of this Request for Proposal will remain the same. For questions regarding this Addendum, please contact the Purchasing Office at email at Bids@FDACS.gov.

mailto:Bids@FDACS.gov

Exhibit I

Department of Energy Washington, DC 20585

February 3, 2023

Dear Florida Department of Agriculture and Consumer Services, Thank you for the State of Florida’s submission to meet the State Energy Security Plan (SESP) requirement pursuant to the Infrastructure Investment and Jobs Act (IIJA) Section 40108, which amends Part D of Title III of the Energy Policy and Conservation Act (EPCA, 42 USC 6321). The U.S. Department of Energy (DOE) has reviewed Florida’s FY22 submission and accepts that the State has provided material responses to the requirements described in in the EPCA Section 366(c); therefore, DOE conditionally accepts Florida’s plan as the state’s FY 2022 submission for purposes of eligibility to receive financial assistance in accordance with Section 366(e), with additional details on some required elements to be provided in FY 2023.

Per Section 366(c) of the Energy Policy and Conservation Act (EPCA), as amended by Section 40108 of the IIJA, the six content elements required by Congress must address the following, specific to a state:

(1) SESPs must address all energy sources and regulated and unregulated energy providers.

(2) SESPs must provide a State energy profile, a including an assessment of energy production, transmission, distribution, and end-use.

(3) SESPs must address potential hazards to each energy sector or system, including: (A) physical threats and vulnerabilities; and (B) cybersecurity threats and vulnerabilities.

(4) SESPs must provide a risk assessment of energy infrastructure and cross-sector interdependencies.

(5) SESPs must provide a risk mitigation approach to enhance reliability and end-use resilience.

(6) SESPs must address: (A) multi-State and regional coordination, planning and response; and (B) coordination with Indian Tribes with respect to planning and response. To the extent practicable, SESPs must encourage mutual assistance in cyber and physical response plans.

DOE acknowledges that states had limited time to update their existing plans or develop new plans. The SESPs DOE received are a “first pass” and aligned with our expectations given the tight timeline. We want to be flexible and understand this to be an iterative process. We appreciate all your hard work on these plans to serve your constituents. We also want to make sure that you have the resources and TA you need from the Office of State and Community Programs (SCEP), the Office of Cybersecurity, Energy Security, and Emergency Response (CESER), and other parts of DOE, so you can create an even better product to support your state’s energy security.

DOE understands the level of detail for these elements in FY 2022 submissions to be commensurate with the limited available time to develop them and is prepared to assist states to strengthen plans in FY 2023 and beyond. DOE recognizes Florida’s efforts to date and commitment to improve the plan over time amidst dynamic threats and hazards. As provided by EPCA Section 366(f), DOE will deliver technical assistance to assist states in the development, implementation, or revision of a SESP. DOE looks forward to opportunities to support Florida to strengthen the state’s ability to secure its energy infrastructure against all physical and cybersecurity threats; mitigate the risk of and enhance the response to and

Exhibit II recovery from energy disruptions; and ensure the state has reliable, secure, and resilient energy infrastructure.

Based on its review of Florida’s FY 2022 submission, DOE has determined that the plan elements required by Congress were not fully addressed. Specifically, Florida’s FY 2022 submission did not completely address elements 1, 2, 3, 4, 5, and 6. Per the statute, Florida is required to submit a FY 2023 SESP that fully addresses all six elements under EPCA Section 366(e). DOE expects that Florida will submit a plan by September 30, 2023, that at a minimum, makes meaningful progress toward a complete plan, and that the state will not submit a Governor’s certification in lieu of an updated plan.

The enclosed tables detail DOE’s review notes for Florida’s FY22 submission, including plan elements that must be fully addressed in the FY23 submission.

Current areas of technical assistance DOE anticipates offering to states include but are not limited to convening cohorts of states with similar challenges and needs to support peer exchange and connect with subject matter experts, and a Transformation Collaborative on SESPs that will provide assistance on analyses such as distinguishing threats and hazards from vulnerabilities, linking probability and magnitude of possible impact to the energy system, and improving state hazard mitigation approach. To provide this technical assistance, SEP is partnering with CESER, the Department's lead office on SLTT energy security and resilience planning, emergency preparedness and response efforts to all hazards, and coordinating with the Grid Deployment Office (GDO), which administers programs to enhance grid resilience and reliability including Preventing Outages and Enhancing the Resilience of the Electric Grid Formula Grants to States and Indian Tribes and the Grid Resilience Innovation Partnership Program.

Attached is an overview of technical resources being developed by DOE. Please contact your SEP project officer if you would like to discuss technical assistance options, or if you have any questions regarding this letter.

Sincerely, AnnaMaria Garcia Associate Director Office of State and Community Energy Programs U.S. Department of Energy https://netl.doe.gov/bilhub/grid-resilience/formula-grants https://netl.doe.gov/bilhub/grid-resilience/formula-grants https://www.energy.gov/gdo/grid-resilience-innovation-partnership-programs

Plan Elements that Must be Fully Addressed for Florida’s FY23 SESP Submission

Sec. 366(c) Plan Element and Content Requirements

FY22 Review Notes

1 Address all energy sources and regulated and unregulated energy providers

• Document all energy sources, electric (including: coal, nuclear, and renewable energy), natural gas, and liquid fuels (petroleum, gasoline, diesel, propane, etc.).

• Address imports, production, and/or exports.

• Utilize current data (or data from the past few years).

• Provide summary of key findings when referencing external resources

(e.g., the State Hazard Mitigation Plan).

2 Provide a State energy profile, a including an assessment of energy production, transmission, distribution, and end-use

• Provide an energy profile including gross energy supply by sources (electric, liquid fuels, natural gas) and energy consumption by source and end use sector (residential, commercial, industrial, transportation).

See State Energy Profile Outline for guidance State Energy Security Plan (SESP) Resources | Department of Energy.

• Provide baseline data maps and charts, for example a summary chart with relative proportion of supply and demand by source and end use as well as summertime and wintertime peak loads. This information may be obtained through sites such as the Energy Information Administration - see direct EIA links in CESER Guidance on Developing a State Energy Profile.

• Utilize current data (or data from the past few years).

3 Address potential hazards to each energy sector or system, including: (A) physical threats and vulnerabilities; and (B) cybersecurity threats and vulnerabilities

• Describe state-specific threats and hazards that could disrupt or damage energy supply (electric, liquid fuels, and natural gas). This should include human-caused threats (physical and cyberattacks), natural hazards (e.g., extreme weather), pandemics and technology accidents or failure.

• Identify specific vulnerabilities within infrastructure, processes, and systems, and the degree of susceptibility to various threats.

o Example: Threat: State is experiencing more frequent and severe storms that result in flooding. Vulnerability: Electric substation is located in floodplain and has been flooded before.

o Example: Threat: Cyberattacks – penetration attempts increasing across all critical infrastructure sectors. Vulnerability:

Smaller utilities do not have the expertise or funds to undertake the recommended actions to detect or prevent an attack.

https://www.energy.gov/ceser/state-energy-security-plan-sesp-resources https://www.energy.gov/ceser/state-energy-security-plan-sesp-resources https://www.energy.gov/sites/default/files/2022-08/DOE%20CESER%20Guidance_State%20Energy%20Profile%20Outline_FINAL_508_0.pdf https://www.energy.gov/sites/default/files/2022-08/DOE%20CESER%20Guidance_State%20Energy%20Profile%20Outline_FINAL_508_0.pdf

4 Provide a risk assessment of energy infrastructure and cross-sector interdependencies

• Conduct a risk assessment that considers the vulnerability (weaknesses within infrastructure, processes, and systems) of assets to specific threats:

o human-caused (physical and cyberattacks), o natural (extreme weather) o pandemics, and o technology accidents or failure, as well as the magnitude of consequences and probability of threat occurring. Understanding the risk landscape and which assets are most critical can better support mitigation investment priorities.

o Example: Threat: State is experiencing more frequent and severe storms that result in flooding. Vulnerability: Electric substation is located in floodplain and has been flooded before.

• Assess the interdependencies within the energy sector and other critical infrastructure (water, telecommunications, transportation, etc.).

5 Provide a risk mitigation approach to enhance reliability and end-use resilience

• Describe the state’s approach or strategy to increase energy reliability and resilience; reducing the impact or consequences of an energy disruption.

• Describe the risk mitigation measures your state will pursue and how energy infrastructure security will be enhanced.

• Describe how the state will engage the appropriate entities to ensure electric reliability and fuel supply.

6 Address: (A) multi-State and regional coordination, planning and response; and (B) coordination with Indian Tribes with respect to planning and response. To the extent practicable, SESPs must encourage mutual assistance in cyber and physical response plans

• Describe multi-state/regional interaction on communication mechanisms which may include a contact list and communication framework with clear points of escalation.

o Review and update contact and agency information.

• Elaborate on multi-state/regional coordination efforts around planning for and responding to energy emergencies.

o Examples may include but are not limited to regional tabletop exercises, winter coordination calls, regional fuel shortage planning.

• Describe planning and response activities with tribes.

• Describe how the state supports mutual assistance. Consider state mutual aid via EMAC and/or state support for industry response.

Specify any agreements or ESF-12 mission ready packages in place.

F L O R I D A

ENERGY ASSURANCE PLAN

APRIL 2011

Executive Office of the Governor Florida Energy and Climate Commission

Exhibit III

Florida Energy Assurance Plan Page ii

ACKNOWLEDGEMENT

This report is based upon work supported by the U.S. Department of Energy and the Florida Energy and Climate Commission under Award Number DE-OE0000089, Enhancing State Government Energy Assurance Capabilities and Planning for Smart Grid Resiliency through the American Recovery and Reinvestment Act.

Disclaimer: This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government or any agency thereof, nor any of their employees, nor any of their contractors, subcontractors or their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or any third party’s use or the results of such use of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof or its contractors or subcontractors. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.

This report was developed by Disaster Strategies and Ideas Group, LLC under contract (A2F904) from the Governor’s Energy Office.

DSIdeas Group, LLC

“Road Map to 21st Century Emergency Management” P.O. Box 12333, Tallahassee, Florida 32317-2333 Telephone (850) 385-4013/Fax (850) 385-1510 www.dsideas.com http://www.dsideas.com/

Florida Energy Assurance Plan Page iii

TABLE OF CONTENTS

ACKNOWLEDGEMENT.............................................................................................................. ii

TABLE OF CONTENTS .............................................................................................................. iii

EXECUTIVE SUMMARY ............................................................................................................ vi

INTRODUCTION

A. FLORIDA’S ENERGY INFRASTRUCTURE

1. Petroleum

2. Natural Gas

3. Coal

4. Renewables

5. Nuclear

B. STATE/COUNTY/UTILITY: FLORIDA’S ENERGY ASSURANCE PLANS

C. RULES AND STATUTES GOVERNING FLORIDA’S ENERGY ASSURANCE PRACTICES

SECTION ONE: FLORIDA ENERGY ASSURANCE PLAN

A. PURPOSE

B. SITUATION

1. Hazard Analysis

2. Vulnerabilities

C. PLANNING ASSUMPTIONS

D. DISASTER DECLARATIONS

E. ROLES AND RESPONSIBILITIES

1. Local Governments (County)

2. Electric Utilities

3. Electric Generating Companies

4. Natural Gas Pipeline Companies

5. Petroleum Companies

6. State Agencies

7. Other Stakeholders

F. PUBLIC INFORMATION

1. Public Information Programs

2. Coordination

3. Emergency Communications Procedures

G. OPERATIONAL OBJECTIVES

1. Preparedness/Prevention

2. Response

Florida Energy Assurance Plan Page iv

3. Recovery

4. Energy Mitigation Actions

H. ENERGY EMERGENCY RESPONSE PLANS

1. Florida Reliability and Coordinating Council

2. SERC Reliability Corporation

3. Individual Utility Response Plans

4. Natural Gas Response Plans

5. Petroleum

SECTION TWO: STATE BEST PRACTICES AND IMPROVING FLORIDA’S ENERGY ASSURANCE

A. STATE BEST PRACTICES

B. RECOMMENDATIONS FOR FLORIDA

1. Create an Energy Assurance Task Force

2. Consideration of Other Best Practice Recommendations

C. AUTOMATED OUTAGE REPORTING SYSTEM

SECTION THREE: ENHANCING FLORIDA’S RESILIENCY AND PROTECTING CRITICAL

INFRASTRUCTURE

A. DIVERSIFICATION OF ENERGY SOURCES (RENEWABLE ENERGY SOURCES)

1. Solar

2. Biomass

3. Ocean

B. SMART GRID/CYBER SECURITY

C. SMART GRID APPLICATIONS

D. Smart Grid Implementation

1. Florida Power & Light Company (FPL)

2. Gulf Power

3. Progress Energy Florida

4. Tampa Electric Company (TECO)

E. Energy Assurance Planning

LIST OF COMMONLY USED ACRONYMS

APPENDIX 1: STATE COMPREHENSIVE EMERGENCY MANAGEMENT PLAN- BASIC PLAN

APPENDIX 2: EMERGENCY SUPPORT FUNCTION 12 - ENERGY

APPENDIX 3: FRCC GENERATING CAPACITY SHORTAGE PLAN

APPENDIX 4: FLORIDA ELECTRICAL EMERGENCY CONTINGENCY PLAN, FUEL SUPPLY

SHORTAGE ELEMENT

Florida Energy Assurance Plan Page v

APPENDIX 5: PSC STANDARD OPERATING PROCEDURE – ESF-12

APPENDIX 6: EMERGENCY SUPPORT FUNCTION 12, ENERGY ANNEX – REVISED, GUIDELINES

FOR DEMAND REDUCTION STRATEGIES

APPENDIX 7: SAMPLE COUNTY ESF-12 ANNEX

APPENDIX 8: FACTS AND FIGURES OF THE FLORIDA UTILITY INDUSTRY

Florida Energy Assurance Plan Page vi

EXECUTIVE SUMMARY

The Florida Energy Assurance Plan (FEAP) has been developed to recognize those events when energy availability has been disrupted as a result of a natural or man-made disaster. According to the 2010 State of Florida Comprehensive Emergency Management Plan (Annex E, pg 1), “Florida may be considered the most vulnerable state in the nation to the impacts from hurricanes and tropical storms. Forty percent of all land falling hurricanes in the Unites States hit Florida. More than 76% of the state’s 18 million persons reside in one of the state’s 35 coastal counties.” Such events have the potential to disrupt the availability of Florida’s energy supply.

The FEAP has been divided into three sections to assist emergency workers and policy makers responding to energy disruptions:

Section One identifies and summarized the various documents that form the FEAP that serve as Florida’s unified plan for energy assurance. The FEAP focuses on operational readiness to primarily address the impact of a loss of electricity, natural gas, or petroleum. The unified plan is designed to be used in any crisis resulting in the activation of the State Emergency Operations Center (SEOC), and Emergency Support Function (ESF) – 12, Energy.

Section One also describes the overall hazards the State is vulnerability to. It describes the process by which a Presidential Disaster Declaration is secured, and how ESF – 12, Energy would be activated. It identifies the basic roles and responsibilities of the major energy stakeholders from state and local governments, the electric utilities, natural gas, and petroleum industries. Section One also describes the various government and industry energy emergency response plans.

Section Two is a listing of “best practices” in energy assurance currently in use in other states.

These recommendations came from the States of Alabama, Georgia, Iowa, Massachusetts, North Carolina, Tennessee, Washington, and Arizona. They include:

1. Create a Task Force/Work Group comprised of government and industry stakeholders for energy assurance planning.

2. Conduct more training/exercises/workshops to better prepare stakeholders and emergency response staff for an energy emergency.

3. Assess tracking systems for energy supply disruptions.

4. Address protocols, timing, and strategies for demand reduction in a crisis.

Florida Energy Assurance Plan Page vii

5. Develop figures and flowcharts to better visualize the information needed by decision makers in an energy emergency.

6. Consolidate all the relevant contact information for an energy emergency in one location.

7. Develop a weight restriction waiver strategy for delivery or distribution of energy related products over the State’s highway network.

Section Two also provide information on how an energy assurance task force could be set up and operated. Lastly, it discusses the results of the “Automated Outage Reporting System Report” completed by the FECC.

Section Three is provides a brief summary of the smart grid technologies being deployed in Florida with a discussion on how they may contribute to Florida’s energy resiliency in the future or provide additional challenges. There is also a discussion of the three renewable resources that hold the most promise for Florida’s energy production that include solar, biomass, and the ocean.

To ensure Florida’s readiness to respond to any energy shortfall or outage, this Plan should be updated on a regular basis.

Florida Energy Assurance Plan Page 2

INTRODUCTION

The Florida Energy Assurance Plan (FEAP) was prepared to ensure there are procedures and policies in place to respond to situations involving an energy disruption. This plan:

Identifies the operational reply to an energy disruption occurring in Florida;

Identifies energy assurance best practices, both in-state and out-of-state;

Identifies renewable energy and smart grid technologies already in place in Florida; and, Evaluates Florida’s vulnerabilities and risk factors impacting energy assurance.

This Plan is comprised of several documents which are included by reference. Together, they form the FEAP and serve as Florida’s unified plan for energy assurance. The FEAP focuses on operational readiness to primarily address the impact of a loss of electricity, natural gas, or petroleum. The unified plan is designed to be used in situations resulting in the activation of the State Emergency Operations Center (SEOC), and Emergency Support Function (ESF) – 12 Energy. The purpose of this document is to provide information and guidance on how to respond to an energy emergency caused by the large-scale disruption of electricity, natural gas, or petroleum products in the State of Florida. The FEAP is divided into three sections.

Section One provides the roles and responsibilities of the key stakeholders in an energy emergency, including state agencies, electric cooperatives, municipal electric utilities, investor-owned utilities, and petroleum companies. It provides guidance on coordinating public information in the event of an energy emergency and emergency communication procedures.

It provides an overall hazard analysis for the State of Florida to demonstrate the various natural and man-made hazards that can cause an energy emergency.

Section Two provides a brief description of the best practices from other states and recommends two actions that may strengthen Florida’s energy assurance. Eight states were evaluated relating to the use of best practices in energy assurance planning and operations.

They included Alabama, Georgia, Iowa, Massachusetts, North Carolina, Tennessee, Washington, and Arizona. From that examination, several recommendations were identified for possible application to the State of Florida including:

Having an Energy Assurance Task Force/Work Group;

Conducting energy assurance training, exercises and workshops;

Having systems in place that are able to track energy supply disruptions;

Having strategies in place that can reduce energy demand during shortages;

Being able to visually communicate components of the energy assurance plan, and Being able to waive transportation limitations during energy crises.

Florida Energy Assurance Plan Page 3

Section Three discusses Florida’s renewable energy potential and Florida utilities’ smart grid deployment efforts. The FEAP addresses enhancing resiliency and protecting critical infrastructure. This is accomplished through a brief assessment of our State’s risks and vulnerabilities; application of smart grid technologies; and, cyber security issues.

A. FLORIDA’S ENERGY INFRASTRUCTURE

It helps to have a general understanding of Florida’s energy infrastructure in order to know how to approach restoration. The following information is provided to assist the emergency worker.

There are different types of energy consumed for power generation and transportation fuels.

Both sources of energy must be addressed at the state level but they are handled in different ways. Florida has very few petroleum-based natural resources, and although there is potential for growth, solar and wind generating represents a small portion of the energy generated for use in the State.

According to the Employ Florida Banner Center for Energy, Florida currently ranks third in the nation in total fuel and electrical energy consumed per year.1 The largest consumers of energy are Florida’s buildings. Commercial, residential, and industrial buildings consume energy to keep the lights on, computers powered up, and air heated and cooled. Florida’s electrical demand and energy requirements are heavily dependent on the energy consumption behaviors of residential customers.2 As shown in the table below, residential customers make up close to 90 percent of Florida’s electric customers and purchase more than 50 percent of the state’s electric energy. The following table identifies the percentages of use by commercial class in the State of Florida:3

Characteristics of Florida’s Electric Customers (2009 Actual)

Customer Class Number of Customers % of Customers Energy Sales

(GWh) % of Sales

Residential 8,338,964 88.7 113,341 52.7 Commercial 1,032,948 11.0 80,939 37.6 Industrial 27,627 0.3 20,811 9.7 Total 9,399,539 100.0 215,091 100.0

1 The Employ Florida Banner Center for Energy is a statewide, industry-driven resource for energy workforce education and training. It is located at the Indian River State College, Ft. Pierce, Florida http://bannercenterforenergy.com/energy_statistics.html

2 Review of the 2010 Ten-Year Site Plans for Florida’s Electric Utilities, FPSC, October 2010, pg 11

3 Ibid, pg 11 http://bannercenterforenergy.com/energy_statistics.html http://bannercenterforenergy.com/energy_statistics.html

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To meet this demand, electrical energy is generated from the following fuel sources.

Florida Energy Generation By Fuel Type4

The majority of fuel needed for electrical generation (98%) is imported into the State. In 2009, Florida’s summer generation capacity from all fuel types was 58,420 MW, of which 1,219.9 MW (2.09%) came from renewable resources produced in Florida.5

1. Petroleum

Florida has no oil refineries and relies on petroleum products delivered by tanker and barge to marine terminals near the State’s major coastal cities. Due in part to Florida’s tourist industry, demand for petroleum-based transportation fuels (motor gasoline and jet fuel) is among the highest in the United States.6 of Florida’s petroleum uses by category.

The following table provides an overall summary

Total Petroleum Consumption Estimates, 2009 (Thousand Barrels)

State Residential Commercial Industrial Transportation Electric Power

Total

Florida 2,456 5,979 18,037 268,553 15,734 310,759 Source: State Energy Data System (SEDS)7 Note: 2009 actual data will be released June, 2011

4 Facts and Figures of the Florida Utility Industry, FPSC, March 2011, pg 2

5 Ibid, pg 3

6 EIA Overview of Florida: Petroleum - http://www.eia.gov/state/state-energy-profiles-analysis.cfm?sid=FL

7 This can be found at: http://www.eia.gov/emeu/states/hf.jsp?incfile=sep_fuel/html/fuel_use_df.html http://www.eia.gov/state/state-energy-profiles-analysis.cfm?sid=FL

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Florida is dependent on fuel imported across state lines and is vulnerable to disruptions.

The FEAP recognizes this vulnerability, and provides guidance on meeting an energy emergency based on the large-scale disruption of electricity, natural gas, or petroleum products in Florida.

2. Natural Gas

Florida receives most of its natural gas supply from the Gulf Coast Region by way of two major interstate pipelines: the Florida Gas Transmission line, which runs from Texas through the Florida Panhandle to Miami, and the Gulfstream pipeline, an underwater link from Mississippi and Alabama to central Florida. With the completion of the Cypress Pipeline in May 2007, the Jacksonville area has also begun receiving supplies from the liquefied natural gas (LNG) import terminal at Elba Island, Georgia. According to the USEIA, Florida’s natural gas consumption is high and has grown rapidly in recent years, due primarily to increasing demand from the electric power sector, which dominates State natural gas use.

3. Coal

Coal is the second most used source of energy for electrical generation in Florida behind natural gas typically accounting for 24.2% of net generation.8 In Florida, coal is used to generate approximately 11,577 MW of electricity (summer capacity - 2009). There are no coalmines in Florida and coal-fired power plants rely on supplies delivered by railroad and barge, mostly from Kentucky, Illinois, and West Virginia. 9 generating units at 14 locations.

Florida has 30 coal-fired

4. Renewables

While the State does not have a renewable portfolio standard, Florida did adopt energy standards that require major facility projects in the State to be constructed to high energy efficiency standards in order to reduce energy use. In addition, utilities in Florida are required to disclose their fuel sources and adopt net metering to credit customers' utility bills for electricity they provide to the grid from renewable sources.10

8 Facts and Figures of the Florida Utility Industry, FPSC, 2011, pg 2

9 EIA Overview of Florida: Coal, Electricity, and Renewables - http://www.eia.gov/state/state-energy-profiles-analysis.cfm?sid=FL

10 Source: USDOE, EIA http://www.eia.gov/state/state-energy-profiles-analysis.cfm?sid=FL http://www.eia.gov/state/state-energy-profiles-http://www.eia.gov/state/state-energy-profiles-analysis.cfm?sid=FL

Florida Energy Assurance Plan Page 6

Florida’s Renewable Capacity in MW (2009) (Total: 1,219.9 MW)11

5. Nuclear

Florida has three operating nuclear power plants located near Ft. Pierce (St. Lucie County), Turkey Point (Miami- Dade County), and Crystal River (Citrus County). Florida’s nuclear capacity is approximately 12% of the States total electric generating capacity, placing nuclear third behind natural gas and coal. Florida Power and Light Company operates the St. Lucie and Turkey Point facilities, while Progress Energy operates the Crystal River facility.

11 Facts and Figures of the Florida Utility Industry, FPSC, 2011, pg 3

Florida Energy Assurance Plan Page 7

The following information is provided by the U.S. Energy Information Agency concerning the generation capacity of the three nuclear power plant sites in Florida.

Florida Nuclear Power Plants, Summer Capacity and Net Generation, 200812

Plant Name/Total Reactors

Summer Capacity

(MW)

Net Generation (Thousand MWh)

Share of State Nuclear Net Generation (Percent)

Owner

Crystal River Unit 3 860 7,000 21.8 Progress Energy

Florida Inc St Lucie Unit 1, Unit 2 1,678 13,760 42.8 Florida Power &

Light Co Turkey Point Unit 3, Unit 4 1,386 11,373 35.4 Florida Power &

Light Co 3 Plants 5 Reactors 3,924 32,133 100.0

Note: Totals may not equal sum of components due to independent rounding.

Sources: Form EIA-860, "Annual Electric Generator Report," and Form EIA-923, "Power Plant Operations Report."

B. STATE/COUNTY/UTILITY: FLORIDA’S ENERGY ASSURANCE PLANS

The Florida Energy Assurance Plan (FEAP) is comprised of several documents which are included by reference. Together, they form the FEAP and serve as Florida’s unified plan for energy assurance. These include:

State of Florida Comprehensive Emergency Management Plan (SCEMP) – 2010:

(Attached to this report as Appendix 1)

The SCEMP is the master operations document for the State of Florida in responding to all emergencies, (including energy emergencies) and all catastrophic, major, and minor disasters. The SCEMP defines the responsibilities of all levels of government, private, volunteer and non-governmental organizations (NGOs) that make up the State Emergency Response Team (SERT).

Appendix XII (ESF-12) to the SCEMP (Attached to this report as Appendix 2)

The purpose of ESF-12 is to promulgate the policies and procedures to be used by the Florida Public Service Commission (FPSC), the Florida Energy and Climate Commission (FECC) and the other support agencies and organizations in responding to and

12 Source: http://www.eia.gov/cneaf/nuclear/state_profiles/florida/FL.html http://www.eia.gov/cneaf/nuclear/state_profiles/florida/FL.html

Florida Energy Assurance Plan Page 8 recovering from shortages and disruptions in the supply and delivery of transportation fuels, electricity, natural gas, and other forms of energy and fuels that, impact or threaten, significant numbers of citizens and visitors

Florida Reliability Coordinating Council Generating Capacity Shortage Plan (Attached to this report as Appendix 3)

The purpose of this plan is to document guidelines and summarize procedures to be used by Florida’s electric utilities in response to generating capacity shortages which impact or threaten to impact significant numbers of customers. Generating capacity shortages may be caused by unusually hot or cold weather, fuel supply shortages, transmission disruptions or plant outages.

Florida Electrical Emergency Contingency Plan , Fuel Supply Shortage Element (Attached to this report as Appendix 4)

The purpose of the FRCC Fuel Supply Shortage Element is to establish a systematic and effective means of anticipating, assessing, and responding, in an appropriate and coordinated manner, to a long-term energy emergency caused by reason of a fuel supply shortage.

Standard Operating Procedures (SOP) for ESF-12, Florida Public Service Commission (Attached to this report as Appendix 5)

The purpose of the SOP for ESF-12 is to ensure that the FPSC responds in a timely and appropriate manner to either of two classes of emergencies: (1) radiological - involving nuclear power plants; or (2) electric or natural gas utility service disruptions as a result of natural or man-made disasters. It also ensures that the response from each FPSC Technical Division is coordinated whenever the State of Florida activates its SCEMP and its SEOC. Lastly, it is to direct the interaction of the FPSC staff in assisting the FDEM.

Emergency Support Function 12, Energy Annex – Revised, Guidelines for Demand Reduction Strategies (Attached to this report as Appendix 6)

This is a document that guides the FPSC for implementing certain demand reduction strategies during an energy emergency.

Florida County CEMPs, and Local Annex ESF-12 (Attached to this report as Appendix 7)

This is a sample energy annex to all Florida county emergency management plans and outlines how local counties will manage their ESF-12 activities during an energy crisis.

Florida Energy Assurance Plan Page 9

Utility Company’s Emergency Plans

Every utility must have an emergency plan to guide its recovery from an outage. Copies of these plans can be found at the individual utility companies identified in the FEAP.

SERC Reliability Corporation (SERC), System Restoration Plan13

This document establishes the overall System Restoration Plan (SRP) for the electric systems of the SERC Reliability Corporation. The focus of the SERC SRP is in three main areas:

1. Assuring coordination among the individual Reliability Coordinator Area restoration plans developed by each Reliability Coordinator in accordance with NERC Reliability Standard EOP-006-1.

2. Coordinating the execution of the individual SRP and Emergency Plans developed and maintained respectively by the Transmission Operators in accordance with NERC Reliability Standard EOP-005-1 and Balancing Authorities in accordance with NERC Reliability Standard EOP-001-1 within the SERC reliability region.

3. Providing specific requirements for black start unit testing by Generator Operators performed in accordance with NERC Reliability Standard EOP-009-0.

FRCC Communications Protocols – Reliability Coordinator, Generator Operators and Natural Gas Transportation Service Providers14

The purpose of this procedure is to ensure appropriate and effective communications occur between the FRCC Reliability Coordinator (RC), FRCC Generator Operators (GOPs) and FRCC natural gas Transportation Service Providers (GasTSPs – interstate pipeline operators) regarding issues affecting scheduling of gas-fired generation. The procedure should be invoked under extreme conditions or where material changes in circumstances may significantly impact hourly natural gas flow rates to individual facilities. The procedure is also intended to bridge the understanding of the different terminology used across both the electric and gas industries.

13 This document can be found at:

http://www.serc1.org/Documents/SERC%20Standing%20Committee%20Documents/Regional%20Criteria/SERC %20Reg%20Criteria_System%20Restoration%20Plan_Rev%202%20(09-23-10).pdf

14 This document can be found at: https://www.frcc.com/handbook/Shared%20Documents/EOP%20-

%20Emergency%20Preparedness%20and%20Operations/FRCC%20Communications%20Protocols%20102207.pd f http://www.serc1.org/Documents/SERC%20Standing%20Committee%20Documents/Regional%20Criteria/SERC http://www.serc1.org/Documents/SERC%20Standing%20Committee%20Documents/Regional%20Criteria/SERC https://www.frcc.com/handbook/Shared%20Documents/EOP%20-%20Emergency%20Preparedness%20and%20Operations/FRCC%20Communications%20Protocols%20102207.pdf https://www.frcc.com/handbook/Shared%20Documents/EOP%20-%20Emergency%20Preparedness%20and%20Operations/FRCC%20Communications%20Protocols%20102207.pdf https://www.frcc.com/handbook/Shared%20Documents/EOP%20-%20Emergency%20Preparedness%20and%20Operations/FRCC%20Communications%20Protocols%20102207.pdf

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Florida Seaport System Plan, Florida Department of Transportation15

The Seaport System Plan provides specific policy guidance for development, enhancement, and preservation of Florida’s seaport system. It builds on established transportation goals and objectives as laid out in the Florida Transportation Plan (FTP) and Strategic Intermodal System (SIS). The 2010 SIS Strategic Plan Objectives are

(1) Interregional Connectivity, (2) Efficiency, (3) Choices, (4) Intermodal Connectivity,

(5) Economic Competitiveness, (6) Energy, Air Quality, and Climate, and (7) Emergency Management. Each of Florida’s ports prepares its own individual master plan. This plan is important for energy emergency stakeholders because Florida receives much of its petroleum through the ports, and the bulk storage for most of Florida’s petroleum is located at the ports.

Categorization of Florida’s Seaport 16

15 Florida Seaport System Plan, FDOT, 2011 http://www.dot.state.fl.us/seaport/seaportplanning.shtm

16 Florida Seaport System Plan, FDOT, 2011 Pg 3-13 http://www.dot.state.fl.us/seaport/seaportplanning.shtm

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When taken as a whole, the following graph illustrates the majority of the plans that come together to form the FEAP. Each contains information crucial to the viability of Florida’s energy assurance.

COMPONENTS OF THE FLORIDA ENERGY ASSURANCE PLAN

C. RULES AND STATUTES GOVERNING FLORIDA’S ENERGY ASSURANCE PRACTICES

Florida has a number of administrative codes and statutes that govern its emergency and energy assurance policies. The following governance documents apply to the Florida Energy Assurance Plan (FEAP):

1. Rule 25-6.0183, Florida Administrative Code, Electric Utility Procedures for Generating Capacity Shortage Emergencies

This FAC Rule Chapter formally adopted the Florida Reliability Coordinating Council’s Generating…