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FERC and the Environment
Respecting the environment is one of the Commission's visions
and an important part of the country's energy markets and infrastructure.
FERC oversees environmental matters related to natural gas and
hydroelectric projects. The Commission does this by granting licenses
or certificates (permits) to companies that allows them to build
dams and natural gas facilities. In order to get these permits,
the companies must prove that they are going to take the environmental
impact of their project into consideration. However, the Commission
also has to consider the energy needs of the place where the natural
gas pipeline or hydroelectric dam is being planned. The Commission
does not oversee the construction of oil pipelines.
The Commission must balance many issues in the interest of the
public. These issues include what a proposed natural gas or hydroelectric
project's environmental impacts might be and what protective measures
are necessary to avoid or minimize those impacts. The Commission's
public interest balancing gives appropriate weight to environmental
protection measures, as reflected in conditions included in licenses
and certificates.
Did You Know...
A former railroad conductor named Edwin Drake struck oil 69.5 feet below the surface of the ground on August 27, 1859 in Titusville, Pennsylvania. His was the first oil producing well in the United States.
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With respect to hydroelectric projects, FERC safeguards the environment
by:
- making sure that planned projects will not damage the environment;
- requiring that prior to licensing, applicants communicate
fully with relevant federal and state land managing agencies,
Indian tribes, and state water quality agencies;
- ensuring that all license applicants perform studies that
are necessary to make an informed decision;
 issuing
draft environmental assessments (EA) for comment;- including license articles that require consideration of what
the entire impact on the environment will be ;
- Inspecting projects that are requesting re-licenses or license
amendments. These visits and meetings help determine the range
of environmental issues which require analysis. Scoping meetings
are required by the National Environmental Policy Act of 1969
(NEPA), and;
- Maintaining a licensing handbook which contains guidelines
for preparing Exhibit E drawings, the environmental information
exhibit required to be included with each application.
Licenses
The Commission uses an environmental measures effectiveness
database that tracks the success of environmental requirements
in licenses. This tracking capability is in the pilot program
stage and when completed will be capable of storing the requirements
and the results of monitoring studies conducted to verify whether
the license requirements are working to achieve their desired
result.
The Commission is committed to reducing the time and cost of
hydropower licensing without compromising environmental protection.
Commission licenses are issued for a minimum term of 30 years,
and a maximum term of 50 years.
Question: |
Company X wants to build a dam on a waterfall where many fish
and wildlife live. The dam will create energy for many families
living in the area. Some people are protesting the building of
the dam because they say it will harm the natural beauty of the
waterfall, but other people are talking about how much energy
the dam will create. Think about the pros and cons of building
that hydroelectric dam. That's what people at FERC do everyday.
What do you think? |
With respect to Natural Gas projects, FERC safeguards the environment
by:
- Disclosing, analyzing and minimizing impacts where it is feasible
and reasonable to do so;
- Encourage applicants to communicate with relevant federal
and state natural resources agencies, Indian tribes, and state
water quality agencies, prior to submitting an application;
- Ensuring that all applicants perform the necessary studies
to make an informed decision on the project;
- Issuing environmental assessments (EA) or draft and final
environmental impact statement (EIS) for comment on most projects;
- Including requirements with any certificate issued to reduce
environmental impacts; and
- Inspecting proposed project areas to determine the range of
environmental issues requiring analysis and holding scoping
meetings as appropriate.
Here is an illustration of the environmental review of gas pipelines.
Some important terms:
NEPA. The
National Environmental Policy Act of 1969 requires the Commission and resource agency staff
to analyze environmental impacts on proposed projects and alternatives to be considered
and to provide appropriate mitigation measures.
Protection, Mitigation
and Enhancement (PM&E) measures.
Terms and conditions to protect or improve recreation, fisheries,
wildlife, water quality, wetlands, or cultural resources
which have economic as well as aesthetic value.
Environmental Impact Statement.
A document prepared to describe the effects of proposed activities
on the environment. When preparing and EIS, land, water, air,
structures, living organisms, environmental values at the site,
and the social, cultural, and economic aspects are considered.
An impact is a consequence that results from an activity. Impacts
can be positive or negative or both. An EIS describes impacts,
as well as ways to manage impacts. Managing impacts means lessening
or removing negative impacts. Federal laws and regulations require
the federal government to evaluate the effects of its actions
on the environment and to consider alternative courses of action.
NEPA specifies when an EIS must be prepared.
Environmental Assessment.
An environmental assessment (EA) is a comprehensive and systematic
process designed to identify, analyze and evaluate the environmental
effects of proposed projects. EA preparation involves the public
in an open and participatory manner and allows for the effective
integration of environmental considerations and public concerns.
 Cultural Resources.
Districts, sites, structures, and objects and evidence of some
importance to a culture, a subculture, or a community for scientific,
traditional, religious, and other reasons. These resources and
relevant environmental data are important for describing and reconstructing
past lifeways, for interpreting human behavior, and for predicting
future courses of cultural development.
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