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

Who is FERC?  FERC is an independent federal regulatory agency that: Regulates the interstate transmission of natural gas (siting & rates); electricity and oil (rates only); 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) 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 Licenses and inspects non-federal hydropower projects Office of Energy Projects FERC

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

FERC’s Siting Authority  Section 7 of the Natural Gas Act – Determination of public convenience and necessity  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 FERC Office of Energy Projects

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

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

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

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

Certificate Process FERC Parallel Processing Paths IssueOrder Non-Environmental Review and Analysis Engineering – GQI, storage, hydraulic flow Tariff – rates, terms & conditions of service Policy – precedents, rules, regulations Accounting 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 FileApplication

The Pre-Filing Process  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 FERC Office of Energy Projects

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

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

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

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

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 FERC Office of Energy Projects

Applicant’s Responsibilities  Route development, infrastructure assessment, engineering design, and environmental surveys  Recognize and address stakeholders’ concerns and develop public participation plan  Invite the public to open houses  Prepare FERC and other permit applications  Engage in proactive planning and communication FERC Office of Energy Projects

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

FERC/Coop. Agency Actions During Application Review  Develop and issue data requests, if needed  Prepare/review draft EIS  FERC issues draft EIS  Attend comment meeting on draft EIS  Address comments and issues final EIS FERC Office of Energy Projects

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

Contact Information Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC FERC Eric J. Tomasi