The Federal Energy Regulatory Commission (FERC) regulates the interstate transportation and sale of natural gas. FERC oversees the permitting process for natural gas pipelines, known as Certificates of Public Convenience and Necessity. To obtain a Certificate, pipeline companies must demonstrate that their proposed project is required by and will serve the public interest. The Certificate allows construction but other environmental permits are also required. After obtaining permits, companies can build pipelines through voluntary easements or eminent domain. FERC's role is to balance public benefits with potential harms of pipeline projects.

1. Your water. Your environment. Your voice.
NATURAL GAS
PIPELINES
WHAT THE FERC IS FERC AND
WHAT DO THEY HAVE TO DO
WITH PIPELINES?

2. WHAT IS FERC?
• FERC is the Federal Energy Regulatory Commission
• An independent governmental agency created in 1977.
• It oversees the regulation and approval of:
• Hydroelectric
• Electric utilities
• Natural gas pipelines
• Oil pipelines
• Governed by 5 commissioners and is located in D.C.

3. • Natural Gas Act passed in 1938
• It regulates:
• Transportation of natural
gas in interstate commerce.
• Sale of natural gas for the
purpose of resale in
interstate commerce
• Companies engaged in the
interstate transportation or
interstate resale of natural
gas.
Natural Gas Act
Photo courtesy of FERC

4. Transportation of natural gas
in interstate commerce
• FERC regulates the interstate transport of natural
gas.
– It does not regulate natural gas lines that are truly
intra-state.
– It does not regulate distribution lines
– It does not regulate “feeder” lines

5. Certificate of Public Convenience
And Necessity
• Commonly know as “Certificate of Need”
• The ultimate goal of a pipeline company
• It is the “permit” that authorizes a company to move
forward with its project.
• Even with a Certificate of Need, project still needs to
obtain environmental permits.

6. Certificate of Public Convenience
And Necessity
• 15 U.S.C. 717f sets out the requirements for FERC to
issue a certificate of need:
“Whenever the Commission, after notice and opportunity
for hearing, finds such action necessary or desirable in
the public interest, it may by order direct a natural-gas
company to extend or improve its transportation facilities
. .”

7. What is “Public Interest”
• The term is not defined in the Natural Gas Act.
• The term is not defined in the implementing
regulations.

8. Standards
FERC’s policy on issuing Certificates of Need:
“the Commission balances the public benefits
against the potential adverse consequences.
The Commission’s goal is to give appropriate
consideration to the enhancement of
competitive transportation alternatives, the
possibility of overbuilding, subsidization by
existing customers, the applicant's responsibility
for unsubscribed capacity, the avoidance of
unnecessary disruptions of the environment,
and the unneeded exercise of eminent domain
in evaluating new pipeline construction.”

9. FERC PROCESS
The process for obtaining a Certificate of Need
• Pre-file
– Some of the work is
done in a public process.
– If pre-filed cannot file a
formal application for
180 days after pre-file.
• No pre-file
– Applicant does all of the
work upfront without
public input.
NEPA Process
Issuance or denial of Certificate of Need

10. FERC PROCESS
What to do once there is an application
filed?
• Submit comments to FERC.
• Comments submitted during pre-file are not
part of the record. They must be refiled.
• File for Intervention

11. FERC PROCESS
What is Intervention?
• Must file a motion to request intervener status
• There is a time limit within which to file for
intervener status.
• Time line is set out in notice of application.
• Must file for intervener status if want to request
rehearing.

12. After Certificate of Need
What is next after Certificate of Need
• Applicant needs to
obtain environmental
approvals.
• Obtain Easements
– Voluntary Purchase
– Eminent Domain
(Condemnation)
• Challenge to Certificate
– Request rehearing
– Appeal to Court

13. Environmental Approvals
I thought FERC pre-empted all other
regulations?
NO!

14. Environmental Approvals
• Federal Laws are not pre-empted.
• Endangered Species Act
• Clean Water Act
• Section 401 Water Quality
Certificate
• Section 404 Dredge and Fill
• Section 402 NPDES
• Clean Air Act
• National Historic Preservation Act

15. Environmental Approvals
• This is another opportunity to comment
and oppose the project.
• Applicant will submit permit applications
to State/Federal Agencies.
• In NJ that may mean:
• NJ DEP
• Delaware River Basin Commission.
• In other states:
• EPA
• Army Corp
• FWS

16. Eminent Domain
If the applicant cannot obtain voluntary
sale of property they can file for eminent
domain.
Where do they file:
• Federal if over $3,000
• State if less than $3,000 or chosen.
How do they value the property?
Big question. Some jurisdictions look to
Federal law, some to state law.

17. Resources
FERC - www.ferc.gov
Environmental Overview by FERC-http://www.ferc.gov/industries/gas/enviro.asp
Information on Pending and Upcoming Projects –
http://www.ferc.gov/for-citizens/projectsearch/SearchProjects.aspx
FERC’s citizens guides: http://www.ferc.gov/for-citizens/citizen-guides.asp
Caroline Elefant’s Knowing and Protection Your Rights When an Interstate Gas Pipeline
Comes to Your Community - http://lawofficesofcarolynelefant.com/wp-
content/uploads/2010/06/FINALTAGguide.pdf

18. Your water. Your environment. Your voice.
Thank you!