1. Security at FERC Energy Projects Energy Bar Association Mid-Year Meeting Robert J. Cupina, Deputy Director Office of Energy Projects Federal Energy Regulatory Commission November 4, 2004

2. FERC Office of Energy Projects 2 Public Information Availability Interagency/Industry Coordination Security Assessments Consequence Analysis Threat Dissemination/Information Sharing Siting Impacts Cost Recovery Security at FERC Energy Projects

3. FERC Office of Energy Projects 3 Non-Internet Public (NIP) Critical Energy Infrastructure Information (CEII) Re-evaluate in 2005 Beyond CEII DHS’ Critical Infrastructure Act (CII) Public Information Availability

4. FERC Office of Energy Projects 4 Hydro: Coast Guard, Corps of Engineers, National Dam Safety Review Board, R&D Agencies, States, Licensees And Local Law Enforcement and Response Agencies LNG: Department of Transportation, Coast Guard MOU, Companies and Local Law Enforcement and Emergency Response Agencies Interagency/Industry Coordination

5. FERC Office of Energy Projects 5 Hydro: Licensees Completed in September 2003 Hydro: Annual Security Inspections LNG: Biennial Site Visits LNG: Review Emergency and Security Plans Security Assessments

6. FERC Office of Energy Projects 6 Assesses Threat Potential Assesses Consequences of Various Attack Scenarios Assesses Effectiveness of Current Security System Identifies if Upgrades to Security are Needed Allows Decisions to be Made for Corrective Measures Vulnerability and Security Assessment Methodology for Dams

7. FERC Office of Energy Projects 7 Hydro: Recovery Plan will reduce consequences Hydro: Operation Plan will provide best options LNG: DOT required exclusion zone analysis LNG: FERC-sponsored pool hazard model Consequence Analysis

8. FERC Office of Energy Projects 8 Hydro: Information Sharing and Analysis Center (ISAC) Hydro: NERC TAL List Serve/COE Fusion Cell Hydro: Disseminate Alerts via email LNG: Disseminate Alerts and Intelligence via email Threat Dissemination/ Information Sharing

9. FERC Office of Energy Projects 9 Siting Impacts Hydro: CEII LNG: Heightened public security concerns, restricted attendance technical conferences Pipelines: Emergency Reconstruction Rule, Order 633

10. FERC Office of Energy Projects 10 Cost Recovery September 14, 2001 Policy Statement Nine Applications (gas, oil, electric, LNG) April 19, 2004 Reliability Policy Statement No applications to date

11. FERC Office of Energy Projects 11 Conclusion FERC continues to advance infrastructure protection FERC must balance security with its permitting function Security programs are an evolving process Success requires participation by regulated companies