Project Development: Challenges and Strategies Northwest Gas - PowerPoint PPT Presentation

Project Development: 
 Challenges and Strategies 
 � Northwest Gas Association � 2016 Annual Energy Conference � Molly Lawrence � Mona Tandon � Emily Pitlick Mallen � � June 10, 2016 � 1

AGENDA � ◘ Challenges Facing FERC Projects � ◘ Challenges under Federal Environmental Laws � ◘ Public Perception: Strategies and Solutions � 2

Challenges Facing FERC Projects 
 � � Emily Pitlick Mallen � (202) 298 – 1859 � erp@vnf.com � � June 10, 2016 � 3

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The Role for FERC: Economic v. Environmental Oversight – A Brewing Conflict? � ◘ Section 7 of the Natural Gas Act (NGA), 15 U.S.C. § 717f(c), provides authority to grant a authorize a pipeline project that is required by the public convenience and necessity. � ◘ Section 102 of the National Environmental Policy Act (NEPA), 42 U.S.C. § 4332(C), directs executive level Federal agencies to assess the environmental impact of a proposed major Federal action significantly affecting the quality of the human environment. � 5

Challenges to FERC’s Regulatory Role: 
 Tactics & Disruption � ◘ Interventions and Protests � • “Swamping” the FERC process through an unprecedented number of interventions and protests in virtually every FERC NGA § 7 certificate proceeding over the last year or more. � ◘ Litigation � • Repeated filing of judicial appeals and petitions for stay of NGA § 7 certificate by anti-fossil fuel advocates and landowners in order to prevent condemnation or construction � ◘ Petition for Rulemaking � • Environmental and consumer groups filed a petition asking FERC to implement 16 USC § 825q–1 by initiating a rulemaking to establish an Office of Public Participation. � ◘ Congressional Action � • Environmental groups want senators to issue a formal request to GAO to investigate FERC. Members of the New Hampshire Congressional Delegation sent a request to the Inspector General of the Department of Energy. � ◘ Obstruction and Civil Disobedience � • See pictures above � 6

Legal Challenges to Pipeline Projects � ◘ Direct legal challenges to FERC certificates � • Myersville Citizens for a Rural Cmty., Inc. v. FERC, 783 F.3d 1301 (D.C. Cir. 2015). � ◘ Opposition to FERC NEPA process � • Delaware Riverkeeper Network v. FERC, 753 F.3d 1304 (D.C. Cir. 2014) (remanded on NEPA segmentation grounds). � • Gunpowder Riverkeeper v. FERC, 807 F.3d 267 (D.C. Cir. 2015) (NEPA claims dismissed). � 7

Legal Challenges to Pipeline Projects � ◘ Procedural attacks on FERC � • In re Stop the Pipeline , No. 15-926 (2d Cir. Apr. 21, 2015) (writ of mandamus denied). � • In re: Clean Air Council , No. 15-2940 (3d Cir. Aug. 13, 2015) (writ of mandamus denied). � ◘ State permit challenges/State veto � • Constitution Pipeline Co. v. N.Y. State Dept. of Envtl. Conservation , No. 16-1568 (2d. Cir. filed May 16, 2016). � • Dominion Transmission, Inc. v. Town of Myersville Town Council, 982 F. Supp. 2d 570 (D. Md. 2013). � • Bosley v. Md. Dep’t of the Env’t , No. 03-C-14-5417, et. al . (Cir. Ct. Balt. Cnty. Apr. 30, 2015). � 8

Legal Challenges to Pipeline Projects � ◘ Local opposition � • Minisink Residents for Environmental Preservation and Safety, et al. v. FERC , No. 12-1481 (D.C. Cir., Aug. 15, 2014). � • Millennium Pipeline Co ., 140 FERC ¶ 61,045, reh’g denied , 141 FERC ¶ 61,198 (2012) (two Comm’rs dissented on location of compressor station). � ◘ Post-certificate delay tactics � • See Constitution Pipeline proceeding (state permitting; tree clearing issues). � 9

Challenges Under Federal Environmental Laws 
 � � Molly Lawrence � Partner � (206) 802-3836 � mol@vnf.com � � June 10, 2016 � 10

NEPA Environmental Review Process �� • Project Description / Purpose and Need � • Level of Review (Cat Ex, EA or EIS) � • Reasonable Range of Reasonable Alternatives � • Connected Actions, Indirect Effects and Cumulative Impacts �� • Public Participation � • “Hard Look” Standard of Review � 11

T&E Species and Critical Habitat � • ESA Section 7 and Section 9 Obligations � • Section 7 Consultation � Requirements � • Emerging Issues � • Candidate Species Reviews & Listing � • Trend toward voluntary conservation efforts to avoid listing � • Migratory Bird Treaty Act � • Bald and Golden Eagle Act � 12

Crossing Waters � • Clean Water Act 404 Permits � • NWP or Individual Permit � • Use of multiple NWPs � • Trigger one IP and . . . � • Cumulative impacts � • General and Regional Permit Conditions � • 401 Water Quality Certification � • Pending change to WOTUS � • Floodplain crossings � • Executive Order 13690 � • ESA Compliance � 13

Cultural Resources � • National Historic Preservation Act Section 106 Consultations � • Integrate with NEPA? � • Identifying cultural resources � • Resolving “Adverse Effects”: Memorandums of Agreement and Programmatic Agreements � • Crossing “Tribal Lands” � • Inadvertent Discovery Plans � 14

Public Perception: 
 Strategies & Solutions 
 � Mona Tandon � Partner � (202) 298-1886 � mxt@vnf.com � � June 10, 2016 � 15

Public Opposition � 16

Public Opposition � 17

Public Perception: Reasons To Oppose Pipelines � ◘ 1. Safety standards don’t protect people. � � ◘ 2. Accidents are inevitable. � ◘ 3. Pipelines = lower property values. � ◘ 4. Difficulties selling homes and property. � ◘ 5. Fracking accelerates climate change. � 18

Public Perception: Reasons To Oppose Pipelines (cont) � ◘ 6. Gas is not for America. � ◘ 7. Exporting shale gas = increased energy bills. � ◘ 8. Fracking blocks transition to renewable energy. � ◘ 9. Pipelines do not create many local jobs. � ◘ 10. Pipelines don’t bring tax-revenue windfalls. � 19

Strategies & Solutions � ◘ BE PROACTIVE! � • Political campaign approach � ◘ Routing � ◘ Early Outreach � • Be the first to create your story � • Understand your stakeholders � ◘ Information � • Statistics � • Project benefits � • Social Justice � ◘ What is the stakeholders’ stake in the project? � ◘ Social media � ◘ Partner with different industries � 20

Independent Petroleum Association of America’s � Energy In Depth Campaign � www.energyindepth.org � 21

Questions? � 22

For more information: � www.vnf.com � � � � Molly Lawrence � Emily P. Mallen � Mona Tandon � 206-623-9372 � 202-298-1859 � 202-298-1886 � erp@vnf.com � mol@vnf.com � mxt@vnf.com � � � � � � � � � � � � � � � � 23