Career Possibilities and Current Trends in Energy Law Young Lawyers Committee of the Energy Bar Association

Energy Bar Association Introduction Introduction –International non-profit, voluntary association of attorneys, non-attorney professionals, and students active in all areas of law –Mission: “Promote the professional excellence and ethical integrity of its members in the practice, administration, and development of energy laws, regulations and policies.” “Promote the professional excellence and ethical integrity of its members in the practice, administration, and development of energy laws, regulations and policies.” –Quick Facts Established in 1946 Established in 1946 Approx. 2,600 members Approx. 2,600 members Seven regional chapters across the US Seven regional chapters across the US

Energy Bar Association Sample activities and programs: Sample activities and programs: –Publishes the Energy Law Journal, a preeminent law review focused on current energy concerns, and includes annual committee reports surveying all developments in numerous areas of energy law; –Publishes the Association Directory which includes names, phone numbers, and addresses of members; –Prepares and provides summaries of recent court opinions of interest to members; –Provides an ongoing forum and network for the discussion of energy issues; and –Hosts a Charitable Foundation (CFEBA), which engages in a variety of energy-related and general charitable activities around the world.

Energy Bar Association EBA Committees: EBA Committees: –Alternative Dispute Resolution –Competition & Antitrust –Compliance & Enforcement –Demand-Side Resources & Smart Grid –Electricity Regulation –Environmental Regulation –FERC Practice & Administrative Law Judges –Finance & Transactions –International Energy Law & Transactions –Judicial Review –Legislation –Judicial Review –Legislation –Natural Gas Regulation –Nuclear Regulation –Oil & Liquids Pipeline Regulation –Power Generation & Marketing –Professional Development, Education & Ethics –Programs & Meetings –Renewable Energy –State Commission Practice & Regulation –System Reliability & Planning –Young Lawyers

Intro. to Energy Law Intersection of Several Areas of Law Intersection of Several Areas of Law –Federal FPA, NGA, APA, Dodd-Frank Act, antitrust law, bankruptcy law, constitutional law, tax law, maritime law FPA, NGA, APA, Dodd-Frank Act, antitrust law, bankruptcy law, constitutional law, tax law, maritime law –State Administrative procedure law, utility law, tort law, contract law, property law Administrative procedure law, utility law, tort law, contract law, property law –International Arbitration, contract negotiation and execution under foreign law, Kyoto Protocol, international trade, development, and financing activities Arbitration, contract negotiation and execution under foreign law, Kyoto Protocol, international trade, development, and financing activities Intersection of Several Disciplines Intersection of Several Disciplines –Law, accounting, economics, engineering, politics

Types of Actions Legislation Legislation Administrative Adjudication Administrative Adjudication Administrative Rulemaking Administrative Rulemaking Negotiation Negotiation Mediation Mediation Enforcement Enforcement Judicial Review Judicial Review

Forums FERC, DOE, CFTC FERC, DOE, CFTC Congress Congress State Legislatures State Legislatures Federal Courts Federal Courts State Courts State Courts State Utility Commissions State Utility Commissions

Legal History 1935: Federal Power Act 1935: Federal Power Act 1938: Natural Gas Act 1938: Natural Gas Act 1978: Public Utility Regulatory Policies Act 1978: Public Utility Regulatory Policies Act 1985: FERC Order No : FERC Order No : Energy Policy Act of 1992; FERC Order 1992: Energy Policy Act of 1992; FERC Order No. 636 No : FERC Orders Nos. 888 and : FERC Orders Nos. 888 and : FERC Order No : FERC Order No : FERC Order No : FERC Order No : Energy Policy Act of : Energy Policy Act of : FERC Order No : FERC Order No. 890

Different Energy Perspectives FERC FERC – DOE DOE – APPA APPA – EEI EEI – CFTC CFTC – EIA EIA – NRECA NRECA –

Focus on FERC Practice Areas Practice Areas –Electric –Hydropower –Natural Gas –Oil

Electric Regulation The FERC regulates wholesale power sales and transmission service pursuant to Part II of the Federal Power Act which requires rates to be “just and reasonable” States regulate retail power sales and distribution service FERC ordered the “unbundling” of power sales from transmission service in Order Nos. 888 and 889 FERC created concept of Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) to further break vertical market power of traditional monopolies

Regional Transmission Organizations

Types of Hydropower Projects Conventional Hydropower Projects – –Energy from falling water in rivers and streams Hydrokinetic – –Energy from wave or direct flow of water in ocean currents, tides, or inland waters; no manmade impoundments

Types of FERC Authorizations for Hydropower Projects Preliminary Permits Original (or Initial) Licenses New Licenses Exemptions

Oil Pipeline Regulation Pipeline Rates – –Regulated by FERC under the Interstate Commerce Act as it stood on October 1, 1977 – –Methodology for ratemaking established in Commission Order No. 154-B – –Subject to substantially less regulation than electric and natural gas rates Market-based rate authority Annual index-based rate changes

Oil Pipelines (cont’d) – –Types of Clients Interstate petroleum pipeline owners Petroleum refiners Airlines State Public Service Commissions – –Other areas of practice Commodities market regulation Pipeline safety General environmental law

Natural Gas Overview Production- state regulated. Biggest regions are the Gulf of Mexico, Texas, Rockies, Marcellus Shale Production- state regulated. Biggest regions are the Gulf of Mexico, Texas, Rockies, Marcellus Shale Transportation via pipelines- regulated by the FERC if interstate; regulated by state if intrastate, Hinshaw or § 311 Transportation via pipelines- regulated by the FERC if interstate; regulated by state if intrastate, Hinshaw or § 311 Marketers- contract with interstate or intrastate pipelines to transport gas to market; customers include end users and wholesale counterparties; gas is usually delivered to a Utility Marketers- contract with interstate or intrastate pipelines to transport gas to market; customers include end users and wholesale counterparties; gas is usually delivered to a Utility Utilities- Local distribution companies that deliver gas to the local market; regulated by state commission Utilities- Local distribution companies that deliver gas to the local market; regulated by state commission

Project Finance Types of Clients Types of Clients –Energy companies –Banks, lending institutions, underwriters –Equipment manufacturers –States, sovereigns, municipalities –All other players involved in the development of energy projects

Project Finance (cont’d) Representative activities: Representative activities: –Developing and negotiating project specific capital structure arrangements –Manage all legal aspects of the development of a generation facility as a sponsor’s counsel –Develop power purchase agreements and sale arrangements –Advise on tax-advantaged structure and leasing –Represent energy companies, lenders or underwriters in mergers and acquisitions Conduct due diligence Conduct due diligence Prepare applications for regulatory approval of transactions Prepare applications for regulatory approval of transactions

Hot Topics in Energy Law Transmission Planning Transmission Planning Renewable Integration Renewable Integration Penalty Guidelines Penalty Guidelines Smart Grid Smart Grid Demand Response Demand Response Cyber Security Cyber Security Reliability Standards and NERC Regulation Reliability Standards and NERC Regulation Tax and Project Development Incentives Tax and Project Development Incentives CFTC regulation of energy markets CFTC regulation of energy markets

Possible Types of Regulatory Practice Private Practice Private Practice Government Agencies Government Agencies In-house Counsel In-house Counsel –Utilities –Public power –ISOs/RTOs –Marketers –Customers Reliability Organizations Reliability Organizations Energy Company Compliance Officer Energy Company Compliance Officer

Resources for Finding Energy Law Jobs EBA Events EBA Events –Young Lawyers Committee Happy Hours –EBA Mid-Year Meeting –Meet the Judges Series EBA Job Bank EBA Job Bank Martindale-Hubbell search for law firms Martindale-Hubbell search for law firms –Restrict search by “Energy” practice area Clerkships and Internships Clerkships and Internships –FERC Summer Clerkships –Energy Company Internships –Firm Summer Associate Opportunities

Questions?