Federal Energy Regulatory Federal Energy Regulatory CommissionCommission

The Pre-Filing ProcessThe Pre-Filing Process

Federal Energy Regulatory Federal Energy Regulatory CommissionCommission

The Pre-Filing ProcessThe Pre-Filing Process

IRWA/AIIRWA/AIJanuary 13-14, 2009January 13-14, 2009

IRWA/AIIRWA/AIJanuary 13-14, 2009January 13-14, 2009

10

FERC

Office of Energy Projects

Major Pipeline Construction Projects

FERC Gas ProgramFERC Gas Program

Evaluate applications for facilities to import, export Evaluate applications for facilities to import, export transport, store or exchange natural gas in interstate transport, store or exchange natural gas in interstate commercecommerce

Authorize the construction and operation of facilitiesAuthorize the construction and operation of facilities

Approve abandonment of facilitiesApprove abandonment of facilities

Conduct environmental reviews of proposals involving Conduct environmental reviews of proposals involving construction, modification, or abandonment construction, modification, or abandonment

Implement Pre-Filing ProcessImplement Pre-Filing Process

Conduct inspections of LNG facilities and pipeline Conduct inspections of LNG facilities and pipeline constructionconstruction

Phases of Project Phases of Project ReviewReview

Project PreparationProject Preparation─ The applicant working on its ownThe applicant working on its own

Pre-FilingPre-Filing─ FERC staff working with the applicant and FERC staff working with the applicant and

stakeholders before the filing of an applicationstakeholders before the filing of an application

Application ReviewApplication Review─ FERC staff working with the applicant and FERC staff working with the applicant and

stakeholders after the filing of an applicationstakeholders after the filing of an application

Post-AuthorizationPost-Authorization─ FERC staff working with the applicant and FERC staff working with the applicant and

stakeholders to ensure compliance with conditions to stakeholders to ensure compliance with conditions to the FERC approvalthe FERC approval

The Pre-Filing ProcessThe Pre-Filing Process

Voluntary for pipelines, required for LNG Voluntary for pipelines, required for LNG facilitiesfacilities

Used for projects requiring an EIS, or an EA Used for projects requiring an EIS, or an EA where controversy is likelywhere controversy is likely

Normally requires the applicant to hire and Normally requires the applicant to hire and fund a contractor to prepare EA/EISfund a contractor to prepare EA/EIS─ Staff selects contractor from list of three Staff selects contractor from list of three

provided by the applicantprovided by the applicant─ Contractor works solely under Staff’s Contractor works solely under Staff’s

directiondirection

Pre-Filing RequirementsPre-Filing Requirements

Project sponsor selects site, pipeline routes Project sponsor selects site, pipeline routes and begins surveys and studiesand begins surveys and studies

Meet with staff regarding proposed projectMeet with staff regarding proposed project

Submit draft RFP for 3rd-party contract and Submit draft RFP for 3rd-party contract and draft PF request for staff reviewdraft PF request for staff review

File PF requestFile PF request

Complete at least 6 months of PF reviewComplete at least 6 months of PF review

Goals of the Pre-Filing Goals of the Pre-Filing ProcessProcess Early identification and resolution of Early identification and resolution of

environmental issuesenvironmental issues More direct interaction between FERC staff More direct interaction between FERC staff

and stakeholdersand stakeholders

Interactive, concurrent NEPA/permitting Interactive, concurrent NEPA/permitting process, no shortcutsprocess, no shortcuts

FERC staff are advocates of the FERC staff are advocates of the ProcessProcess, , not the not the ProjectProject!!

Goal of “no surprises” when application is Goal of “no surprises” when application is filedfiled

FERC Staff Pre-Filing FERC Staff Pre-Filing ActivitiesActivities

Identify affected parties:Identify affected parties:─ landownerslandowners─ agenciesagencies─ other stakeholdersother stakeholders

Facilitate identification Facilitate identification of issuesof issues

Identify study needsIdentify study needs

Facilitate resolution of Facilitate resolution of issuesissues

Issue scoping noticeIssue scoping notice

Examine alternativesExamine alternatives

Arrange and attend site Arrange and attend site visits and meetingsvisits and meetings

Initiate preparation of Initiate preparation of preliminary NEPA preliminary NEPA documentdocument

Review draft resource Review draft resource reportsreports

Public InvolvementPublic InvolvementDuring Pre-Filing ReviewDuring Pre-Filing Review

The FERC ProcessThe FERC Process

Project Sponsor Sends Project Sponsor Sends

Landowner Notification Landowner Notification

PackagePackage

Issue Notice of Intent to Issue Notice of Intent to

Prepare the NEPA Prepare the NEPA

Document (i.e., scoping)Document (i.e., scoping)

Hold Scoping MeetingsHold Scoping Meetings

Public InputPublic Input

Contact the project sponsor Contact the project sponsor

w/questions, concerns; w/questions, concerns;

contact FERCcontact FERC

Send letters expressing Send letters expressing

concerns about concerns about

environmental impactenvironmental impact

Attend scoping meetingsAttend scoping meetings

The Environmental ReportThe Environmental Report(13 Resource Reports)(13 Resource Reports)

1.1. General Project General Project DescriptionDescription

2.2. Water Use & QualityWater Use & Quality

3.3. Fish, Wildlife & Fish, Wildlife & VegetationVegetation

4.4. Cultural ResourcesCultural Resources

5.5. SocioeconomicsSocioeconomics

6.6. Geological Geological ResourcesResources

7.7. SoilsSoils

8.8. Land Use, Recreation, Land Use, Recreation, & Aesthetics& Aesthetics

9.9. Air & Noise QualityAir & Noise Quality

10.10. AlternativesAlternatives

11.11. Reliability & SafetyReliability & Safety

12.12. PCB Contamination PCB Contamination (for pipelines only)(for pipelines only)

13.13. LNG Engineering & LNG Engineering & Design DetailsDesign Details

Public InvolvementPublic InvolvementDuring Application ReviewDuring Application Review

The FERC ProcessThe FERC Process

Issue Notice of the Issue Notice of the ApplicationApplication

Issue Notice of Issue Notice of Availability of the DEISAvailability of the DEIS

Hold Public Meetings on Hold Public Meetings on DEISDEIS

Issue a Commission Issue a Commission OrderOrder

Public InputPublic Input

File an Intervention; File an Intervention; register for e-subscriptionregister for e-subscription

File comments on the File comments on the adequacy of DEISadequacy of DEIS

Attend public meetings to Attend public meetings to give comments on DEISgive comments on DEIS

Interveners can file a Interveners can file a request for rehearing of request for rehearing of the Commission Orderthe Commission Order

FERC

Office of Energy Projects

Timelines: Traditional vs. Pre-Filing Process

DevelopStudy

Corridor

DevelopStudy

Corridor

Approve PF

Request(at least6 mos.

before filing)

Conduct

Scoping

-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Conduct Scoping &

Direct Preparation of

Resource Reports

IssueDraftEIS

IssueDraftEIS

FileAt

FERC

IssueOrder

IssueOrder

FileAt

FERC

Prepare ResourceReports

PrepareResourceReports

IssueFinalEIS

IssueFinalEIS

Traditional – Applicant Activities

Traditional – FERC Activities

Pre-Filing – Applicant Activities

Pre-Filing – FERC Activities

(months)

Review Resource Reports

& AnalyzeProject

(length of studyperiod determined by the Applicant)

AnalyzeProject

SuccessesSuccesses The Pre-filing process is the normThe Pre-filing process is the norm

Increased agency acceptance of and participation Increased agency acceptance of and participation in the Pre-filing processin the Pre-filing process

Smaller projects are being filed and approved Smaller projects are being filed and approved quicker (using both the Pre-filing and Traditional quicker (using both the Pre-filing and Traditional processesprocesses

Other agencies are adopting similar review Other agencies are adopting similar review strategiesstrategies

The Real WorldThe Real Worldof Pre-Filingof Pre-Filing

The Pre-filing Process is not always being used The Pre-filing Process is not always being used as intendedas intended─ Agency consultations are not occurring during Pre-Agency consultations are not occurring during Pre-

filing or pre-certificate stagesfiling or pre-certificate stages─ Site-specific issues are not being identified and Site-specific issues are not being identified and

resolvedresolved

The number of recommendations in The number of recommendations in environmental documents is increasing instead of environmental documents is increasing instead of decreasingdecreasing

Result—delays in the start of constructionResult—delays in the start of construction

Stopping the PendulumStopping the Pendulum

Make better use of the Make better use of the PF processPF process

Deal openly with Deal openly with landownerslandowners

Engage elected officialsEngage elected officials

In other words—resolve In other words—resolve the issues the issues beforebefore they they become problemsbecome problems

Working TogetherWorking Togetherfor Solutionsfor Solutions Industry Efforts Industry Efforts

─ Commitment to LandownersCommitment to Landowners

─ Issues with shared corridorsIssues with shared corridors

Re-establish a regular dialogue between FERC Re-establish a regular dialogue between FERC staff and the industrystaff and the industry

Industry needs to educate consumers on impact Industry needs to educate consumers on impact of new natural gas supplies on our way of lifeof new natural gas supplies on our way of life

FERC staff want to be part of the solutionFERC staff want to be part of the solution

Contact Contact InformationInformation

Lauren H. O’Donnell, DirectorLauren H. O’Donnell, Director

Div. of Gas – Environment & EngineeringDiv. of Gas – Environment & Engineering

202-502-8325202-502-8325

lauren.odonnell@ferc.govlauren.odonnell@ferc.gov