Introduction

• Natural resource planning is becoming increasingly important for utilities
• In addition to social pressures for more sustainable business practices, it is an essential element of obtaining licenses for electric, hydroelectric, and transmission operations
• Applicants seeking an exemption, original license, new license, or a license amendment for a project must consult with relevant federal, state, and interstate resource agencies, Native American tribes, and non-governmental agencies
• In many cases, these consultations result in agreements on programs that benefit threatened or endangered species, cultural resources, recreation areas, and other natural resources
• Proactive planning can help ensure a smooth process, avoid costly delays, and create public goodwill
• This document provides a brief overview of ScottMadden’s perspective

 

What is Natural Resource Planning?

• Natural resource planning is a strategic framework designed to guide future environmental stewardship decisions
  • It integrates with other strategic exercises such as integrated resource planning and annual business planning
• Natural resource planning addresses stewardship issues that are in the public eye such as:
  • Sustainable development
  • Protection of sensitive resources
  • Benefits provided by access to public and private lands
• Programs may include protecting threatened and endangered species, improving water quality, creating recreation sites for public use, and protecting cultural and archeological sites
• The natural resource planning process evaluates a broad range of program alternatives
  • It includes development of multiple strategies for proactive stewardship
  • Strategies are assessed against potential future business environment scenarios to determine the optimal program mix
• The final plan lays out an immediate course of action and a road map with options for leaders to use when making future strategic decisions

 

Examples of Natural Resource Programs

Biological Resources

• Example Activities:
  • Threatened and Endangered Species Protection
  • Natural Areas Management
  • Non-Native Invasive Plant Management
  • Conservation Planning

Water Quality

• Example Activities:
  • Water Quality Improvement
  • Shoreline Stabilization
  • Aquatic Ecology
  • Public Outreach and Education

Recreation

• Example Activities:
  • Public Day-Use Areas
  • Campgrounds
  • Stream Access Sites
  • Hiking Trails Management

Cultural Resource Protection

• Example Activities:
  • Archeological Resources Protection Act Compliance
  • Native American Graves Repatriation Act Compliance
  • National Historic Preservation Act Section 106 Compliance
  • Public Outreach and Education

 

Why is Natural Resource Planning So Important Today?

Proactive natural resource planning helps address a number of challenges facing utilities today. Challenge: Increased Environmental Pressures

• Potential Benefits: Recent economic and legislative climates have shown a shift toward sustainable operations and higher environmental standards. Proactive planning helps utilities stay ahead of the curve.

Challenge: Licensing Requirements

• Potential Benefits: When utilities apply for licenses for new projects, FERC and state utility commissions require environmental impact statements to be developed that weigh environmental impacts against mitigation activities. Natural resource planning alleviates the threat of surprises and helps avoid costly delays.

Challenge: Relationship with External Stakeholders

• Potential Benefits: Involving external stakeholders such as agencies and environmental groups in the planning process can help ease tensions and create mutually beneficial relationships and outcomes.

Challenge: Costs

• Potential Benefits: Proactive planning helps smooth the licensing process, avoid costly delays, alleviate stakeholder concerns, and can work to deter future lawsuits.

Challenge: Public Goodwill

• Potential Benefits: Environmental stewardship and the development of natural resource and recreation programs for public benefit create significant goodwill in an effective and efficient manner.

 

Licensing Requirements Create Multiple Challenges

Applicants seeking an exemption, original license, new license, or an amendment to a license for a project must consult with relevant federal, state, and interstate resource agencies, Native American tribes, and non-governmental agencies.

• To gain support, utilities must prove to each group that they are addressing their concerns
• In many cases, this results in a negotiated settlement to create or fund new natural resource programs

 

Proven ScottMadden Natural Resource Planning Process

Creating a natural resource plan requires a structured process with standardized tools, defined decision rights, specific criteria, and analytics.

1. Establish planning infrastructure
   • Work with leaders to set goals for planning process
   • Define scenarios
   • Build strategies
   • Create programs and identify options for level of support
2. Perform program option analysis
   • Define primary analysis metrics
   • Define strategic analysis metrics
   • Complete cost estimates
   • Perform benefit analysis
   • Determine benefit weightings
   • Finalize benefit scorecard
3. Assess results and select initial strategy
   • Rank elements based on overall benefit-to-cost score (by strategy)
   • Complete planning matrix
   • Score the strategies
   • Select the preferred mix of programs
4. Publish draft report and solicit comments
   • Draft initial resource plan
   • Draft supporting environmental impact statement (as required)
   • Publish documents
   • Solicit feedback from the public, agencies, and NGOs
5. Incorporate feedback and select final strategy
   • Update strategy based on feedback
   • Finalize and publish the completed plan

 

Multiple Tools Work Together in a Structured Approach

ScottMadden has created a proven natural resource planning approach that marries various perspectives and analysis to provide the optimal mix of programs.  

External Stakeholder Input is Critical

In addition to the planning analysis, input from the public, agencies, and other stakeholders is essential to ensure the development of a robust plan that can satisfy all future requirements and gain support from the public.  

Why ScottMadden?

We have recent and relevant experience in natural resource planning

• We have developed a first-of-its-kind natural resource plan for the largest public power utility in the country
• We have led multiple stakeholder engagement groups to secure buy-in for strategic planning efforts
• We have assisted numerous utilities with all areas of strategic planning
• We have substantial experience in sustainability-related projects, and we understand how to integrate them with natural resource planning
• We have developed a standardized approach and evaluation tools that we can deploy to assist companies in performing natural resource planning
• We have worked with hundreds of energy clients over nearly 30 years including 90% of the top 20