Baltimore County Baltimore County Liquefied Natural Gas Liquefied Natural Gas Task Force Task Force AES Sparrows Point LNG AES Sparrows Point LNG Mid - - Atlantic Express Atlantic Express Mid Project Presentation Project Presentation September 5, 2006 September 5, 2006
AES Provides Power World Wide AES Provides Power World Wide � Wind Wind � � Hydro Hydro � � Solar Solar � � Natural Gas Natural Gas � � Oil Oil � � Coal Coal – – AES operates Maryland AES operates Maryland ’ ’ s cleanest s cleanest � coal - - fired power plant in Cumberland, fired power plant in Cumberland, coal called Warrior Run; the plant has been called Warrior Run; the plant has been operating for five years. operating for five years.
Legislation Preamble Legislation Preamble � Demand in U.S. for natural gas for residential and industrial Demand in U.S. for natural gas for residential and industrial � use and for power generation is increasing rapidly. use and for power generation is increasing rapidly. � U.S. now relies on natural gas for nearly one quarter of its U.S. now relies on natural gas for nearly one quarter of its � energy use. energy use. � Projections indicate that consumption will soon outpace Projections indicate that consumption will soon outpace � domestic production. domestic production. � Technology makes importation of natural gas in liquefied form Technology makes importation of natural gas in liquefied form � feasible + cost effective, and imports of LNG are expected to feasible + cost effective, and imports of LNG are expected to sharply increase in the next decade. sharply increase in the next decade. � Public has compelling interest in obtaining Public has compelling interest in obtaining � COMPREHENSIVE, FACTUAL, AND OBJECTIVE COMPREHENSIVE, FACTUAL, AND OBJECTIVE INFORMATION about LNG facility proposed at Sparrows about LNG facility proposed at Sparrows INFORMATION Point. Point. � Task Force shall be formed to obtain Task Force shall be formed to obtain OBJECTIVE AND OBJECTIVE AND � ACCURATE INFORMATION about proposed LNG project, ACCURATE INFORMATION about proposed LNG project, including safety and other important aspects surrounding including safety and other important aspects surrounding siting decisions. decisions. siting
Task Force Mission Task Force Mission To study and report on the following: To study and report on the following: � � Risks and hazards of LNG facility Risks and hazards of LNG facility � Kind and use of facility Kind and use of facility � Population and demographic characteristics of the community Population and demographic characteristics of the community � Land use Land use � Natural and physical aspects of proposed location Natural and physical aspects of proposed location � Emergency response capabilities Emergency response capabilities � Need and distance for remote siting siting Need and distance for remote � Effect of facility on recreational and commercial boating, Effect of facility on recreational and commercial boating, � fishing, crabbing fishing, crabbing Impact on environment / water quality due to dredging Impact on environment / water quality due to dredging � Waterway access for residential property owners Waterway access for residential property owners �
2005 Energy Policy Act 2005 Energy Policy Act � Section 311(d) of the Energy Policy Act added a Section 311(d) of the Energy Policy Act added a � new Section 3A(b) to the Natural Gas Act that new Section 3A(b) to the Natural Gas Act that requires FERC to review: requires FERC to review: � Kind and use of the facility Kind and use of the facility � Existing and projected population and demographic Existing and projected population and demographic characteristics of the location characteristics of the location � Existing and proposed land use near the location Existing and proposed land use near the location � Natural and physical aspects of the location Natural and physical aspects of the location � Emergency response capabilities near the facility Emergency response capabilities near the facility location location � Need to encourage remote Need to encourage remote siting siting
Project Timing Project Timing � Voluntary Community Outreach � Elected Officials � Community Leaders � Public Presentation – January 17, 2006 � Public / Community presentations – January through May 2006 � Pre - Application Process � April 3, 2006 – FERC issued notice of commencement of pre - filing review process � Minimum 180 day period to initiate and complete studies and prepare reports that present site - specific results � Scoping meetings and continued outreach � Formal Application � Submitted after completion of studies and reports � Expected to be filed December 2006
FERC Process FERC Process � FERC has exclusive authority to approve or FERC has exclusive authority to approve or � deny application deny application � Encourages cooperation with state and local Encourages cooperation with state and local � officials and early public involvement officials and early public involvement � Anticipated schedule Anticipated schedule � � Submit first drafts of resource reports: August / Submit first drafts of resource reports: August / September 2006 September 2006 � Respond to data requests and revise resource Respond to data requests and revise resource reports: September / October / November 2006 reports: September / October / November 2006 � Formal application: December 2006 Formal application: December 2006 � Draft EIS: 2Q 2007 Draft EIS: 2Q 2007 � Final EIS: 3Q 2007 Final EIS: 3Q 2007 � Authorization and certificate: 4Q 2007 Authorization and certificate: 4Q 2007
FERC Process FERC Process � Resource reports Resource reports � (1) water use and quality (1) water use and quality (2) fish, wildlife, and vegetation (2) fish, wildlife, and vegetation (3) cultural resources (3) cultural resources (4) socio - - economics economics (4) socio (5) geological resources (5) geological resources (6) soils (6) soils (7) land use, recreation, and aesthetics (7) land use, recreation, and aesthetics (8) air quality & noise (8) air quality & noise (9) alternatives (9) alternatives (10) safety, security, and reliability (10) safety, security, and reliability (11) potential contamination issues (11) potential contamination issues (12) PCB contamination (12) PCB contamination (13) engineering design (13) engineering design
Sparrows Point Project Federal Energy Regulatory Commission Environmental Review P rocess Federal Energy Regulatory Commission (FERC) AES Sparrows Point Actions Actions AES Sparrows Point assesses market need and considers project feasibility. FERC receives AES Sparrows Point’s request to conduct its review of the project within the FERC’s Pre - AES Sparrow Point studies potential site locations. filing Process. AES Sparrows Point identifies stakeholders. FERC formally approves Pre - filing Process, issues PF Docket No. to AES Sparrows Point, and begins AES Sparrows Point requests use of the FERC’s project review. Pre - fil ing process FERC participates in AES Sparrows Point public meetings. AES Sparrows Point sp onsors public workshops. Issue Notice of Intent for Preparation of an Public Input Environmental Impact Statement (EIS). Open NEPA scoping period to seek public comments on the project. Opportunities Hold NEPA sco ping meetings in the project area. Consult with interested agencies. AES Sparrows Point files formal application with the FERC. FERC receives formal application from AES Sparrows Point. Issue Preliminary Draft Environmental Impact Statement (EIS) to cooperating agencies for review. Issue Draft EIS and open comment period. Public Input Opportunities Hold meetings in the project area to hear public comments on the Draft EIS. Respond to comments and revise the Draft EIS. Issue Fina l EIS. FERC determines whether or not to approve the project.
USCG Process USCG Process � Preliminary Waterway Suitability Analysis Preliminary Waterway Suitability Analysis Port characterization Port characterization � Risk assessment (safety and security) Risk assessment (safety and security) � Risk management strategies, including safety and security zones Risk management strategies, including safety and security zones � (current restrictions in Chesapeake Bay apply to cruise ships an (current restrictions in Chesapeake Bay apply to cruise ships an d all d all ships transporting cargos defined as hazardous), notice to marin ers, ers, ships transporting cargos defined as hazardous), notice to marin and/or information hotline and/or information hotline Required resources and payment responsibility Required resources and payment responsibility � � Follow Follow - - on Waterway Suitability Analysis on Waterway Suitability Analysis � Letter of Intent Letter of Intent � Letter of Recommendation Letter of Recommendation � Cooperating agency under FERC process Cooperating agency under FERC process � ESTIMATED TIME OF DISLOCATION AS LNG SHIP PASSES ESTIMATED TIME OF DISLOCATION AS LNG SHIP PASSES ENROUTE TO SPARROWS POINT 5 MINUTES 5 MINUTES ENROUTE TO SPARROWS POINT � ESTIMATED TIME IN APPROACH CHANNEL AND TURNING ESTIMATED TIME IN APPROACH CHANNEL AND TURNING BASIN BASIN 45 MINUTES 45 MINUTES � NO WATERWAY CLOSURES NO WATERWAY CLOSURES
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