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Federal Energy Regulatory Commission. FERC’s Natural Gas Pipeline Certification Program Interstate Pipeline Regulatory Committee October 9, 2003 Berne L. Mosley, Director Division of Pipeline Certificates. FERC Organizational Structure. OEP Organizational Structure. - PowerPoint PPT Presentation
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FERC
Office of Energy Projects
Federal Energy Regulatory Commission
FERC’s Natural Gas Pipeline Certification ProgramInterstate Pipeline Regulatory
Committee
October 9, 2003Berne L. Mosley, Director
Division of Pipeline Certificates
2
FERC
Office of Energy Projects
FERC Organizational Structure
3
FERC
Office of Energy Projects
DirectorJ. Mark RobinsonDeputy DirectorRobert J. Cupina
Division of Pipeline Certificates
Director - Berne L. MosleyDeputy Dir. - Vacant
Division of Gas- Environment & Engineering
Director - Richard R. HoffmannDeputy Dir. - Vacant
Division of Hydropower-Environment & Engineering
Director – Ann F. MilesDeputy Dir. – Lon R. Crow
Division of HydropowerAdministration & ComplianceDirector – Joseph D. Morgan
Deputy Dir. – Vacant
Division of Dam Safety& Inspections
Director – Constantine TjoumasDeputy Dir. – Daniel J. Mahoney
Energy InfrastructurePolicy Group
Jeff C. Wright
Assistant DirectorManagement & Operations
Thomas Dewitt
Certificates Branch 1Michael McGehee
Certificates Branch 2William L. Zoller
Gas Branch 1Robert K. Arvedlund
Gas Branch 2Lauren H. O’Donnell
Gas Branch 3Lonnie A. Lister
Hydro East Branch 1Vince Yearick
Hydro East Branch 2Edward A. Abrams
Hydro West Branch 1Jennifer Hill
Hydro West Branch 2Timothy Welch
Land Resources & Reg.Compliance Branch
Hossein Ildari
Engineering &Jurisdiction Branch
Akbar Tahiry
Biological ResourcesBranch
George H. Taylor
Washington OfficeWilliam H. Allerton
Atlanta RegionalOffice
Jerrold W. Gotzmer
Chicago RegionalOffice
Peggy A. Harding
New York RegionalOffice
Anton J. Sidoti
Portland RegionalOffice
Harry T. Hall
San FranciscoRegional Office
Takeshi Yamashita
OEP Organizational Structure
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FERC
Office of Energy Projects
Office of Energy Projects - Functions
• OEP has the engineering and environmental expertise to: certificate new gas pipeline projects, authorize and monitor hydroelectric projects, and analyze energy infrastructure needs and policies.
• OEP focuses on: project siting and development, balancing environmental and other concerns, ensuring compliance, safeguarding the public, and providing infrastructure capacity information.
• Other FERC Offices
– OGC has corresponding hydro and pipeline legal responsibilities– OMTR, OMOI, OED, and OEA also have input to our products
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FERC
Office of Energy Projects
Gas Pipeline Program
• Evaluate applications for facilities to import, export transport, store or exchange natural gas
• Authorize the construction and operation of facilities for such services
• Approve abandonment of such facilities• Conduct environmental reviews of proposals
involving construction, modification, or abandonment
• Implement NEPA Pre-Filing Process• Conduct inspections of LNG facilities and
pipeline construction
6
FERC
Office of Energy Projects
Natural Gas Act (NGA)
Natural Gas Policy Act (NGPA)
Regulation of Interstate Construction
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FERC
Office of Energy Projects
NGPA OR NGA?
• NGA Certificate Grants a Right of Federal Eminent Domain
• NGPA Does Not Confer Any Rights of Federal Eminent Domain; Pipeline May Seek State Eminent Domain
8
FERC
Office of Energy Projects
Natural Gas Act
NATURAL GAS ACT
Section 3 Import/Expor
t
CaseSpecific
CaseSpecific
BlanketAuthority
Automatic PriorNotice
Section 7(c)Interstate
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FERC
Office of Energy Projects
• Automatic Authorization• Cost of facilities is less than $7.6 million
• Facilities are “eligible” facilities
• Prior Notice• Cost is between $7.6 and $21.2 million
• 45-day notice period prior to construction
• Facilities are “eligible” facilities
Natural Gas Act
• Blanket Certificate
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FERC
Office of Energy Projects
• Conduct a full review of proposal including engineering, rate, accounting, and market analysis
• Conduct an environmental review by preparing an Environmental Assessment or an Environmental Impact Statement
Natural Gas Act
• Case Specific Section 7(c) Certificate
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FERC
Office of Energy Projects
How Does FERC Evaluate All Of These Major Projects?
What Are The Criteria Used inThis Evaluation?
Project Evaluation
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FERC
Office of Energy Projects
Balancing Interests
People Like... But They Also Want...
Due Process Expedited Process
Smaller Government Effective Government
Less Regulation Assurance of Fair Markets
Market-dictated OutcomesProtection from Market
Dysfunctions, Unexpected Risk,and Unjust Rates
Protection for the Environment andProperty Interests
Ample Supplies ofLow-cost Energy
Due Process Expedited Process
Smaller Government Effective Government
Less Regulation Assurance of Fair Markets
Market-dictated OutcomesProtection from Market
Dysfunctions, Unexpected Risk,and Unjust Rates
Protection for the Environment andProperty Interests
Ample Supplies ofLow-cost Energy
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FERC
Office of Energy Projects
FERC’s Internal Review Process
• Initial review for completeness (10 days)
• Issue notice of application• Assign review team
– Environmental– Certificates– Rates– Attorney– Markets
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Environmental Review Public Interest Review
Notice of Intent
Data Requests
Analysis
Agency Coordination
Scoping Meetings
& Site Visit
Data Requests
Analysis
Interventions
Protests
Notice of Application
Preliminary Determination
(Optional)
Authorization / Rejection
Tech Conference
(Optional)
Cryogenic Design &
Safety Review
DEIS
FEIS
FERC
Review
Process
(Traditional Process)
LNG
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FERC
Office of Energy Projects
Traditional vs. NEPA Pre-Filing Process
AnnounceOpen
Season
AnnounceOpen
Season
Develop
StudyCorrido
r
DevelopStudy
Corridor
Conduct
Scoping
Conduct
Scoping
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Review DraftResource Reports& Prepare DEIS
IssueDraftEIS
IssueDraftEIS
FileAt
FERC
IssueOrder
IssueOrder
FileAt
FERC
Prepare ResourceReports
Prepare ResourceReports
IssueFinalEIS
IssueFinalEIS
(months)
Traditional - Applicant
Traditional - FERC
NEPA Pre-Filing - Applicant
NEPA Pre-Filing - FERC
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FERC
Office of Energy Projects
AnnounceOpen
Season
AnnounceOpen
Season
Develop
StudyCorrido
r
DevelopStudy
Corridor
Conduct
Scoping
Conduct
Scoping
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Review DraftResource Reports& Prepare DEIS
IssueDraftEIS
IssueDraftEIS
FileAt
FERC
IssueOrder
IssueOrder
FileAt
FERC
Prepare ResourceReports
Prepare ResourceReports
IssueFinalEIS
IssueFinalEIS
(months)
Traditional - Applicant
Traditional - FERC
NEPA Pre-Filing - Applicant
NEPA Pre-Filing - FERC
Traditional vs. NEPA Pre-Filing Process
NOT A SHORTCUT
17
FERC
Office of Energy Projects
How to “Expedite”the NEPA Pre-Filing Process
• Projects Can Be Expedited Only If– The company follows the NEPA Pre-
Filing guidelines;– Public involvement is made an integral
part of the project planning process;– The company works in partnership with
the agencies; and– The project is READY to move forward.
18
FERC
Office of Energy Projects
NEPA Pre-Filing Process –Completed Projects
• Kern River Expansion 2002 (720 miles,
looping)
– approved in 11 months
• Greenbrier Pipeline (280 miles, new pipe)
– approved in 9 months
19
FERC
Office of Energy Projects
NEPA Pre-Filing Process – Pending Projects
• FY03– Cheyenne Plains - CIG– Picacho Pipeline - PacTex– Grasslands Expansion - Williston Basin– Weavers Cove LNG - Dominion– Long Beach LNG Project - Sound Energy
Solutions – Ruby Project - CIG– San Juan 2005 Expansion - Transwestern
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FERC
Office of Energy Projects
Lessons Learned by FERC
• Project teams should be ready and able to make commitments necessary to move forward as partners in the process
• Participating agencies should be contacted as early as possible
• FERC has to work harder to bring agencies together
• Stakeholder involvement must proceed according to a well-defined plan supported by management
21
FERC
Office of Energy Projects
Lessons Learned by FERC
• Early in the process, projects are works in progress, routing and documentation will change
• Both the company and FERC need to hold focused meetings with stakeholders
• Project information must be readily available, easily accessible, and updated regularly.
• Changes in routing and mitigation should be tracked and reported frequently to stakeholders
22
FERC
Office of Energy Projects
New Directions for NEPA Pre-Filing
• Not just for Pipelines
– Currently being used for two LNG terminals
– Lots of LNG work on the horizon
– Expected to be large portion of future
workload
23
FERC
Office of Energy Projects
New Directions for NEPAPre-Filing
• Not just for EISs
– Process can work for major EAs
– No third-party contractor required, but may
be requested by staff at a later date
– Currently have one project approved that
will file an applicant prepared draft EA
24
FERC
Office of Energy Projects
Benefits of NEPA Pre-Filing
• More interactive NEPA process, no shortcuts
• Earlier, more direct involvement by FERC, other agencies, landowners
• Goal of “no surprises”
• Time savings realized only if we are working together with stakeholders
• FERC staff is an advocate of the Process, not the Project!
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FERC
Office of Energy Projects
Contributing to Success
• Interagency Agreement May 2002– FERC as lead agency
• Public Outreach Efforts– Last meeting - 10/02/03, Roanoke VA
• Other Cooperative Efforts– DOT CATS Program
– NASFM Case Study
– BLM Training
26
FERC
Office of Energy Projects
Interagency Communication
• Interagency Agreement - August 2002– FERC, ACHP, BLM, BIA, BOR, CEQ,
COE, DOT, EPA, Forest Service, FWS, MMS, NPS, and NOAA Fisheries
– Concurrent review– Concurrent issuance of necessary
approvals
27
FERC
Office of Energy Projects
Agencies Agree To…
• Coordinate early and often – proactive, informal
• Develop a workable schedule with lead agency– FERC, in most cases
• Support FERC’s NEPA Pre-Filing Option
• Share data
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FERC
Office of Energy Projects
Implementationof the Agreement
• Establish Working Group
• Assist in developing draft guidance for each agency
• Evaluate the Agreement’s effectiveness
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FERC
Office of Energy Projects
What This Means
• Signatory agencies stand ready to assist• Consistent key agency contacts• Increased need for consistent and timely
information from project sponsors• Good stakeholder communication is
imperative, must be transparent• Better project design, quicker decision
process
30
FERC
Office of Energy Projects
Gas Outreach Efforts
• Ongoing• 5th Workshop held on October 2 in
Roanoke, VA• Plan to have another meeting
before end of the year• Companies are taking stakeholder
involvement seriously
31
FERC
Office of Energy Projects
Nat
ura
l G
as P
ipel
ines
Storage and Vaporization
Facility
Liquefaction and Storage
Facility
Natu
ral Gas P
rod
uctio
n
Do
ck
Do
ck
LNG Supply Stream -- From Production to Distribution
1 32
Economic Oversight – Access to LNG Terminal
LNGShip
Natural Gas Pipelines
Liquid to Vapor Flow
FERC
Office of Energy Projects
32
Storage and Vaporization
Facility
Do
ck
New FERC Policy – Hackberry CaseNO oversight for access, rate or tariff for LNG terminals;
vaporized LNG competes with unregulated domestic supply.
33
FERC
Office of Energy Projects
Benefits of theNew LNG Policy
• Stimulates development of new LNG terminals
• Accommodates various business models
• Increases gas supplies to the U.S.
34
FERC
Office of Energy Projects
Alaskan Natural Gas Pipeline
• Long lead time and high cost for delivery to market
• Producers say that Alaskan project is uneconomic at this time
• Sensitivity in Canada, DC and Alaska• U.S. Government has been monitoring and
standing ready to help or act• New legislation for Alaskan Gas Project is
pending
35
FERC
Office of Energy Projects
Pending U. S. Energy Bill re Alaskan Gas
• Final outcome of bill is uncertain• Most likely - Provisions to streamline
regulatory and legal process• Probably - Some limit or ban on the
“Over-the-Top” route (above 68 degrees North)
• Possibly - Some type of financial assistance: loans or tax credits
36
FERC
Office of Energy Projects
Other Gas Initiatives
• Emergency Reconstruction Rule• Regional Energy Infrastructure
Conferences• The “Last Mile”• Other Outreach Efforts
37
FERC
Office of Energy Projects
Emergency Reconstruction Rule
• The Rule allows pipelines to begin work on restoration projects under the blanket certificate program
• Construction begins after notification to the Commission
• Landowner advance notice required• No cost cap• Rearrangements w/ Compression =
OK
38
FERC
Office of Energy Projects
THE LAST MILE
• High Pressure Needed In/Near Cities
• Congestion/ In-Street Construction
• Environmental Justice
• State Involvement– CZMA? 401?
39
FERC
Office of Energy Projects
Other Outreach Efforts
• Southwestern Gas Storage Technical Conference, Docket No. AD03-11-000:Analysis of relevant market needs and regulatory options available to assure the appropriate development of southwestern natural gas storage facilities
• Gathering Conference, Docket No. AD03-13-000:Reexamination of our gathering policies, and whether our gathering policies provide sufficient incentives to develop offshore gas supplies needed to meet the country's demand for natural gas