Career Possibilities and Career Possibilities and Current Trends in Current Trends in Energy Law Energy Law

Young Lawyers Committee of Young Lawyers Committee of the Energy Bar Association the Energy Bar Association

Energy Bar AssociationEnergy Bar Association

IntroductionIntroduction– International non-profit, voluntary association of International non-profit, voluntary association of

attorneys, non-attorney professionals, and attorneys, non-attorney professionals, and students active in all areas of lawstudents active in all areas of law

– Mission: Mission: ““Promote the professional excellence and ethical Promote the professional excellence and ethical

integrity of its members in the practice, integrity of its members in the practice, administration, and development of energy laws, administration, and development of energy laws, regulations and policies.”regulations and policies.”

– Quick FactsQuick Facts Established in 1946Established in 1946 Approx. 2,600 members Approx. 2,600 members Seven regional chapters across the USSeven regional chapters across the US http://www.eba-net.org/http://www.eba-net.org/

Energy Bar AssociationEnergy Bar Association

Sample activities and programs:Sample activities and programs:– Publishes the Energy Law Journal, a preeminent law Publishes the Energy Law Journal, a preeminent law

review focused on current energy concerns, and review focused on current energy concerns, and includes annual committee reports surveying all includes annual committee reports surveying all developments in numerous areas of energy law; developments in numerous areas of energy law;

– Publishes the Association Directory which includes Publishes the Association Directory which includes names, phone numbers, and e-mail addresses of names, phone numbers, and e-mail addresses of members; members;

– Prepares and provides summaries of recent court Prepares and provides summaries of recent court opinions of interest to members; opinions of interest to members;

– Provides an ongoing forum and network for the Provides an ongoing forum and network for the discussion of energy issues; anddiscussion of energy issues; and

– Hosts a Charitable Foundation (CFEBA), which Hosts a Charitable Foundation (CFEBA), which engages in a variety of energy-related and engages in a variety of energy-related and general charitable activities around the world. general charitable activities around the world.

Energy Bar AssociationEnergy Bar Association

EBA Committees:EBA Committees:– Alternative Dispute Resolution Alternative Dispute Resolution – Competition & Antitrust Competition & Antitrust – Compliance & Enforcement Compliance & Enforcement – Demand-Side Resources & Smart Grid Demand-Side Resources & Smart Grid – Electricity Regulation Electricity Regulation – Environmental Regulation Environmental Regulation – FERC Practice & Administrative Law Judges FERC Practice & Administrative Law Judges – Finance & Transactions Finance & Transactions – International Energy Law & Transactions International Energy Law & Transactions – Judicial Review Judicial Review – Legislation Legislation

– Judicial Review Judicial Review – Legislation Legislation – Natural Gas Regulation Natural Gas Regulation – Nuclear Regulation Nuclear Regulation – Oil & Liquids Pipeline Oil & Liquids Pipeline

Regulation Regulation – Power Generation & Power Generation &

Marketing Marketing – Professional Professional

Development, Education Development, Education & Ethics & Ethics

– Programs & Meetings Programs & Meetings – Renewable Energy Renewable Energy – State Commission State Commission

Practice & Regulation Practice & Regulation – System Reliability & System Reliability &

Planning Planning – Young Lawyers Young Lawyers

Intro. to Energy LawIntro. to Energy Law

Intersection of Several Areas of LawIntersection of Several Areas of Law– Federal Federal

FPA, NGA, APA, Dodd-Frank Act, antitrust law, FPA, NGA, APA, Dodd-Frank Act, antitrust law, bankruptcy law, constitutional law, tax law, bankruptcy law, constitutional law, tax law, maritime lawmaritime law

– StateState Administrative procedure law, utility law, tort law, Administrative procedure law, utility law, tort law,

contract law, property lawcontract law, property law– International International

Arbitration, contract negotiation and execution Arbitration, contract negotiation and execution under foreign law, Kyoto Protocol, international under foreign law, Kyoto Protocol, international trade, development, and financing activities trade, development, and financing activities

Intersection of Several Disciplines Intersection of Several Disciplines

– Law, accounting, economics, engineering, politicsLaw, accounting, economics, engineering, politics

Types of Actions Types of Actions

Legislation Legislation Administrative Adjudication Administrative Adjudication Administrative RulemakingAdministrative Rulemaking NegotiationNegotiation Mediation Mediation Enforcement Enforcement Judicial Review Judicial Review

ForumsForums

FERC, DOE, CFTC FERC, DOE, CFTC CongressCongress State LegislaturesState Legislatures Federal CourtsFederal Courts State CourtsState Courts State Utility Commissions State Utility Commissions

Legal History 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. 4361985: FERC Order No. 436 1992: Energy Policy Act of 1992; FERC Order 1992: Energy Policy Act of 1992; FERC Order

No. 636No. 636 1996: FERC Orders Nos. 888 and 889 1996: FERC Orders Nos. 888 and 889 1999: FERC Order No. 6371999: FERC Order No. 637 2000: FERC Order No. 20002000: FERC Order No. 2000 2005: Energy Policy Act of 2005 2005: Energy Policy Act of 2005 2007: FERC Order No. 8902007: FERC Order No. 890

Different Energy Different Energy Perspectives Perspectives FERCFERC

– http://ferc.gov/ http://ferc.gov/ DOEDOE

– http://www.energy.gov/ http://www.energy.gov/ APPA APPA

– http://www.publicpower.org/ http://www.publicpower.org/ EEI EEI

– http://www.eei.org/Pages/default.aspx http://www.eei.org/Pages/default.aspx CFTCCFTC

– www.CFTC.gov www.CFTC.gov EIAEIA

– http://www.eia.gov http://www.eia.gov

NRECANRECA– http://www.nhttp://www.nreca.coopreca.coop

Focus on FERC Focus on FERC

Practice Areas Practice Areas – Electric Electric – HydropowerHydropower– Natural GasNatural Gas– Oil 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 OverviewNatural Gas Overview

Production- state regulated. Biggest regions are the Production- state regulated. Biggest regions are the Gulf of Mexico, Texas, Rockies, Marcellus Shale Gulf of Mexico, Texas, Rockies, Marcellus Shale

Transportation via pipelines- regulated by the FERC Transportation via pipelines- regulated by the FERC if interstate; regulated by state if intrastate, if interstate; regulated by state if intrastate, Hinshaw or Hinshaw or § 311§ 311

Marketers- contract with interstate or intrastate Marketers- contract with interstate or intrastate pipelines to transport gas to market; customers pipelines to transport gas to market; customers include end users and wholesale counterparties; gas include end users and wholesale counterparties; gas is usually delivered to a Utilityis usually delivered to a Utility

Utilities- Local distribution companies that deliver Utilities- Local distribution companies that deliver gas to the local market; regulated by state gas to the local market; regulated by state commissioncommission

Project FinanceProject Finance

Types of Clients Types of Clients – Energy companiesEnergy companies– Banks, lending institutions, Banks, lending institutions,

underwriters underwriters – Equipment manufacturersEquipment manufacturers– States, sovereigns, municipalities States, sovereigns, municipalities – All other players involved in the All other players involved in the

development of energy projects development of energy projects

Project Finance Project Finance (cont’d)(cont’d) Representative activities: Representative activities:

– Developing and negotiating project specific Developing and negotiating project specific capital structure arrangementscapital structure arrangements

– Manage all legal aspects of the development of a Manage all legal aspects of the development of a generation facility as a sponsor’s counsel generation facility as a sponsor’s counsel

– Develop power purchase agreements and sale Develop power purchase agreements and sale arrangements arrangements

– Advise on tax-advantaged structure and leasingAdvise on tax-advantaged structure and leasing– Represent energy companies, lenders or Represent energy companies, lenders or

underwriters in mergers and acquisitions underwriters in mergers and acquisitions Conduct due diligenceConduct due diligence Prepare applications for regulatory approval of Prepare applications for regulatory approval of

transactionstransactions

Hot Topics in Energy Hot Topics in Energy LawLaw Transmission Planning Transmission Planning Renewable IntegrationRenewable Integration Penalty Guidelines Penalty Guidelines Smart GridSmart 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 Possible Types of Regulatory Practice Regulatory Practice Private PracticePrivate Practice Government Agencies Government Agencies In-house CounselIn-house Counsel

– UtilitiesUtilities– Public powerPublic power– ISOs/RTOsISOs/RTOs– MarketersMarketers– CustomersCustomers

Reliability Organizations Reliability Organizations Energy Company Compliance Officer Energy Company Compliance Officer

Resources for Finding Resources for Finding Energy Law Jobs Energy Law Jobs EBA Events EBA Events

– Young Lawyers Committee Happy HoursYoung Lawyers Committee Happy Hours– EBA Mid-Year MeetingEBA Mid-Year Meeting– Meet the Judges SeriesMeet the Judges Series

EBA Job Bank EBA Job Bank Martindale-Hubbell search for law firmsMartindale-Hubbell search for law firms

– Restrict search by “Energy” practice areaRestrict search by “Energy” practice area Clerkships and Internships Clerkships and Internships

– FERC Summer ClerkshipsFERC Summer Clerkships– Energy Company InternshipsEnergy Company Internships– Firm Summer Associate Opportunities Firm Summer Associate Opportunities

Questions?