FERC Introduction Meeting Northeast Energy Direct Project March

FERC Introduction Meeting Northeast Energy Direct Project March 12 and 19, 2015 Eric J. Tomasi – Project Manager Division of Gas – Environment & Engineering Office of Energy Projects Federal Energy Regulatory Commission

FERC Who is FERC? Ø FERC is an independent federal regulatory agency that: l l l Regulates the interstate transmission of natural gas (siting & rates); electricity and oil (rates only); Reviews proposals to build interstate natural gas pipelines and liquefied natural gas (LNG) terminals, and natural gas storage fields (National Enviro. Policy Act) Licenses and inspects non-federal hydropower projects Office of Energy Projects

FERC Organization Chart Chairman Cheryl La. Fleur Energy Projects Administrative Litigation Commissioner Philip D. Moeller External Affairs Administrative Law Judges Commissioner Tony Clark Enforcement Energy Market Regulation Commissioner Norman Bay Electric Reliability Executive Director Commissioner Colette D. Honorable General Counsel Secretary Energy Policy & Innovation Office of Energy Projects

FERC’s Siting Authority Ø Section 7 of the Natural Gas Act – Determination of public convenience and necessity Ø Energy Policy Act of 2005 – Assigns FERC exclusive siting authority—does not preempt other required federal authorizations – Optional use of Pre-Filing Process for pipeline projects – Names FERC lead agency for NEPA review and coordinator of all federal authorizations Office of Energy Projects

FERC State and Local Permits FERC encourages cooperation between interstate pipelines and local authorities. Ø Goal is to work with agencies to identify and minimize conflicting requirements Ø If the Commission approves a project, state or local permits must be consistent with the conditions of any FERC certificate Ø Office of Energy Projects

FERC Role Ø FERC is the lead for NEPA review; coordinator of federal authorizations l Other agencies urged to participate in process Ø FERC establishes a schedule for all Federal authorizations l Ensures expeditious processing of all natural gas project permits and authorizations l Federal authorization decisions to be issued within 90 days of FERC’s Final NEPA document Ø FERC to maintain complete consolidated record l Provides for swifter judicial review Office of Energy Projects

FERC Division of Gas (Environment and Engineering) Ø Evaluate applications and conduct environmental reviews/siting for jurisdictional gas facilities: l Ø Import/Export, Storage, Interstate Transmission, Abandonment, LNG Conduct inspections of jurisdictional facilities l LNG facilities and pipeline construction/restoration Office of Energy Projects

• FERC Phases of Project Review Ø Marketing and Preliminary Project Design l Ø Pre-Filing - CURRENT l Ø FERC staff working with the applicant and stakeholders before the filing of an application Application Review l Ø The applicant working on its own FERC preparing NEPA document that is reviewed by cooperating agencies prior to public issuance for comment Post-Authorization l FERC staff working to ensure compliance with conditions to the FERC approval Office of Energy Projects

FERC Certificate Process Non-Environmental Review and Analysis • Engineering – GQI, storage, hydraulic flow • Tariff – rates, terms & conditions of service • Policy – precedents, rules, regulations • Accounting File Application Parallel Processing Paths Preparation of EIS • Project description/ purpose and need • Water resources • Ecology – fish, wildlife, vegetation • Cultural resources – historic preservation • Land use/socioeconomics – recreation, aesthetics • Soils and geology • Air and noise • Alternatives Issue Order

FERC The Pre-Filing Process Ø Ø Ø More interactive NEPA/permitting process, no shortcuts Be more proactive and explore ways to Outreach Earlier, more direct interaction between FERC, other agencies, stakeholders, and the applicant Transparency in the Pre-Filing Review Process Goal is to resolve problems and have “no surprises” Encourages cooperation with federal, state, and local authorities FERC staff is an advocate for the process, not the project Office of Energy Projects

FERC NEPA Pre-Filing Review Project is in the preliminary planning phase Ø Formal application has not been filed Ø Purpose of the Pre-Filing Process Ø l l l encourage involvement by interested stakeholders in a manner that allows for the early identification and resolution of issues identify and attempt to address environmental issues prior to the time when an application is filed Review and comment on draft resource reports Office of Energy Projects

FERC Pre-Filing Activities Identify affected parties: l landowners l agencies l other stakeholders Ø Facilitate identification of issues Ø Identify study needs Ø Facilitate resolution of issues Ø Issue scoping notice Ø Examine alternatives Ø Arrange and attend site visits and meetings Ø Initiate preparation of preliminary NEPA document Ø Review draft resource reports Ø Office of Energy Projects

FERC Resource Reports 1. 2. 3. 4. 5. 6. 7. General Project Description Water Use & Quality Fish, Wildlife & Vegetation Cultural Resources Socioeconomics Geological Resources Soils 8. 9. 10. 11. 12. 13. Land Use, Recreation & Visual Impacts Air Quality & Noise Alternatives Reliability & Safety PCB Contamination (for pipelines only) LNG Engineering & Design Details Office of Energy Projects

FERC Agency Involvement Ø Ø Ø Cooperating l Can review working draft NEPA document during application stage l Not subject to ex parte rules Participating l Same as cooperating agency during pre-filing stage l Limits to communication and review during application stage Intervenor l l l Must file a formal motion to intervene Submissions must be served on the applicant and all other parties to the proceeding May seek rehearing of the FERC decision and possibly judicial review at the Court of Appeals. Office of Energy Projects

FERC Ø Ø Ø FERC/Agency Actions During Pre-Filing Review route, identify study needs, and examine alternatives Connect with affected stakeholders Participate in applicant open houses, hold interagency meetings, inform local elected officials, and meet with landowners Facilitate identification and resolution of issues Analyze draft resource reports and initiate preparation of NEPA document Office of Energy Projects

FERC Applicant’s Responsibilities ØRoute development, infrastructure assessment, engineering design, and environmental surveys ØRecognize and address stakeholders’ concerns and develop public participation plan ØInvite the public to open houses ØPrepare FERC and other permit applications ØEngage in proactive planning and communication Office of Energy Projects

FERC Applicant’s Responsibilities at Filing Time Identify and address agency and stakeholder concerns Ø Provide consistent information to agencies and stakeholders Ø Submit complete FERC application Ø Provide FERC its proposed schedule of Federal applications and anticipated receipt dates Ø File for all Federal authorizations before or concurrent with FERC application filing Ø Office of Energy Projects

FERC/Coop. Agency Actions During Application Review ØDevelop and issue data requests, if needed ØPrepare/review ØFERC draft EIS issues draft EIS ØAttend comment meeting on draft EIS ØAddress comments and issues final EIS Office of Energy Projects

EIS Pre-Filing Environmental Review Process Applicant Process Assesses market need and considers project feasibility FERC Process Requests use of FERC’s Pre-Filing Process Receives Applicant’s request to conduct its review of the project within FERC’s NEPA Pre-Filing Process Studies potential site locations Identifies Stakeholders Holds open house to discuss project Public Input Opportunities Conducts route studies and field surveys. Develops application. Files formal application with the FERC Formally Approves Pre-Filing Process and issues PF Docket No. to Applicant Participates in Applicant’s open house Issues Notice of Intent for Preparation of an EIS opening the scoping period to seek public comments. Holds public scoping meeting(s) and site visits in the project area. Consults with interested stakeholders. Issues Notice of Application Analyzes data and prepares Draft EIS Issues Draft EIS and opens comment period Public Input Opportunities Holds public comment meetings on the Draft EIS in the project area Responds to comments and revises the Draft EIS Issues Final EIS Commission Issues Order Public Input Opportunities Parties can request FERC to rehear decision Submits outstanding information to satisfy conditions of Commission Order Issues Notice to Proceed with construction.

FERC Contact Information Federal Energy Regulatory Commission 888 First Street, N. E. Washington, DC 20426 Eric J. Tomasi 202. 502. 8097 Eric. Tomasi@ferc. gov