Career Possibilities and Current Trends in Energy Law

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

2. Energy Bar Association 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.” Quick Facts Established in 1946 Approx. 2,600 members Seven regional chapters across the US http://www.eba-net.org/

3. Energy Bar Association 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 e-mail 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.

4. Energy Bar Association 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

5. Intro. to Energy Law • Intersection of Several Areas of Law • Federal • 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 • International • Arbitration, contract negotiation and execution under foreign law, Kyoto Protocol, international trade, development, and financing activities • Intersection of Several Disciplines • Law, accounting, economics, engineering, politics

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

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

8. Legal History • 1935: Federal Power Act • 1938: Natural Gas Act • 1978: Public Utility Regulatory Policies Act • 1985: FERC Order No. 436 • 1992: Energy Policy Act of 1992; FERC Order No. 636 • 1996: FERC Orders Nos. 888 and 889 • 1999: FERC Order No. 637 • 2000: FERC Order No. 2000 • 2005: Energy Policy Act of 2005 • 2007: FERC Order No. 890

9. Different Energy Perspectives • FERC • http://ferc.gov/ • DOE • http://www.energy.gov/ • APPA • http://www.publicpower.org/ • EEI • http://www.eei.org/Pages/default.aspx • CFTC • www.CFTC.gov • EIA • http://www.eia.gov • NRECA • http://www.nreca.coop

10. Focus on FERC • Practice Areas • Electric • Hydropower • Natural Gas • Oil

11. 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

12. Regional Transmission Organizations

13. 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

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

15. 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

16. 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

17. Natural Gas Overview • 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 • 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

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

19. Project Finance (cont’d) • 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 • Prepare applications for regulatory approval of transactions

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

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

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

23. Questions?