Career Possibilities and Current Trends in Energy Law Young Lawyers Council of the Energy Bar Association 2016

What is the Energy Bar Association? International, non-profit, voluntary association of attorneys, non-attorney professionals, and students active in all areas of energy law. International, non-profit, voluntary association of attorneys, non-attorney professionals, and students active in all areas of energy law. Mission: “To promote the professional excellence and ethical integrity of its members in the practice, administration, and development of energy laws, regulations and policies by providing (1) superior educational programming; (2) networking opportunities; and (3) information resources.” Mission: “To promote the professional excellence and ethical integrity of its members in the practice, administration, and development of energy laws, regulations and policies by providing (1) superior educational programming; (2) networking opportunities; and (3) information resources.” Facts Facts –Established in 1946 –Approximately 2,600 members –Seven regional chapters across the United States, with increasing membership in Canada and Mexico –

Sample Activities and Programs Publishes the Energy Law Journal, a preeminent law review focused on current energy concerns and which includes annual committee reports surveying developments in numerous areas of energy law; Publishes the Energy Law Journal, a preeminent law review focused on current energy concerns and which includes annual committee reports surveying developments in numerous areas of energy law; Publishes the EBA Membership Directory, which includes names, phone numbers, and addresses of members; Publishes the EBA Membership Directory, which includes names, phone numbers, and addresses of members; Prepares and provides summaries of recent court opinions of interest to 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 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. Hosts a Charitable Foundation (CFEBA), which engages in a variety of energy-related and general charitable activities around the world.

EBA Committees - ADR & Consensus Building - Compliance & Enforcement - Electricity - Demand-Side Res. & Smart Grid - Nuclear Regulation - Power Generation & Marketing - Renewable Energy - Environmental Regulation - FERC Practice - Finance & Transactions - Int’l Energy Law & Transactions - Legislative Practice - Membership - Natural Gas - Oil & Liquids - Professional Education - Retired Lawyers Council - Solo Practitioner Task Force - State Commission Practice - System Reliability, Planning & Security - Young Lawyers Council EBA has 21 active subject matter-specific committees and sub- committees, which develop educational programs and provide content for the Energy Law Journal (in Committee Reports) and the EBA Newsletter.

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, and more FPA, NGA, APA, Dodd-Frank Act, antitrust law, bankruptcy law, constitutional law, tax law, maritime law, and more –State Administrative procedure law, utility law, tort law, contract law, property law, and more Administrative procedure law, utility law, tort law, contract law, property law, and more –International Arbitration, contract negotiation and execution under foreign law, Kyoto Protocol, Paris Agreement, international trade, development, and financing activities Arbitration, contract negotiation and execution under foreign law, Kyoto Protocol, Paris Agreement, international trade, development, and financing activities Intersection of several disciplines Intersection of several disciplines –Law, accounting, economics, engineering, politics, and more

Legislation Legislation Administrative adjudication Administrative adjudication Administrative rulemaking Administrative rulemaking Litigation Litigation Negotiation Negotiation Mediation Mediation Enforcement Enforcement Judicial review Judicial review Types of Actions

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 International bodies International bodies Forums

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 No : Energy Policy Act of 1992; FERC Order 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 : FERC Order No : FERC Order No Legal History

FERC FERC – DOE DOE – American Public Power Association (APPA) American Public Power Association (APPA) – Edison Electric Institute (EEI) Edison Electric Institute (EEI) – CFTC CFTC – Energy Information Administration (EIA) Energy Information Administration (EIA) – National Rural Electric Cooperative Association (NRECA) National Rural Electric Cooperative Association (NRECA) – Diverse Energy Perspectives

Practice areas Practice areas –Electric regulation –Hydropower project regulation –Natural gas regulation –Oil pipeline regulation Focus on FERC

FERC regulates wholesale power sales and transmission service in interstate commerce pursuant to Part II of the FPA, which requires rates to be “just and reasonable” FERC regulates wholesale power sales and transmission service in interstate commerce pursuant to Part II of the FPA, which requires rates to be “just and reasonable” States regulate retail power sales and distribution service 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 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 FERC created concept of Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) to further break vertical market power of traditional monopolies Electric Regulation

Electric Regulation: RTOs and ISOs

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

Preliminary permits Original (or initial) licenses New licenses Exemptions Hydropower: Types of FERC Authorizations

Natural Gas Regulation 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 (Pipelines): Regulated by FERC if interstate; regulated by state if intrastate, Hinshaw, or § 311. Transportation (Pipelines): Regulated by 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.

Pipeline rates 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 Market-based rate authority Annual index-based rate changes Annual index-based rate changes Oil Pipeline Regulation

Oil Pipeline Regulation (cont’d) Types of clients: Types of clients: –Interstate petroleum pipeline owners –Petroleum refiners –Airlines –State public service commissions Other areas of practice: Other areas of practice: –Commodities market regulation –Pipeline safety –General environmental law

Project Finance Types of clients: Types of clients: –Energy companies, developers, sponsors –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 –Managing all legal aspects of the development of a generation facility as a sponsor’s counsel –Developing power purchase agreements and sale arrangements –Advising on tax-advantaged structures and leasing –Representing energy companies, lenders, or underwriters in mergers and acquisitions Conducting due diligence Conducting due diligence Preparing and filing applications for regulatory approval of transactions Preparing and filing applications for regulatory approval of transactions

Some Hot Topics in Energy Law Demand response Demand response Compliance/enforcement Compliance/enforcement Tax and project development incentives Tax and project development incentives Transmission planning/rates Transmission planning/rates Integrating renewables/distributed generation Integrating renewables/distributed generation Smart Grid Smart Grid Cyber-security Cyber-security Reliability standards/NERC regulation Reliability standards/NERC regulation Clean Power Plan/Paris Agreement Clean Power Plan/Paris Agreement Pipeline siting Pipeline siting New energy legislation??? New energy legislation???

Some Types of Regulatory Practice Private practice Private practice Government agencies Government agencies In-house counsel/compliance officer In-house counsel/compliance officer –Utilities –Public power –ISOs/RTOs –Marketers –Customers Reliability organizations Reliability organizations

Some Resources for Finding Energy Law Jobs EBA events EBA events –Young Lawyers Council happy hours (in D.C.) –EBA Annual and Mid-Year Meetings –“Meet the Judges” Series EBA Job Bank EBA Job Bank Martindale-Hubbell or other search tools Martindale-Hubbell or other search tools –Restrict search by “energy” practice area Clerkships and internships Clerkships and internships –FERC/state commission summer internships –Energy company internships –Firm summer associate opportunities

Questions?