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News
Sen. Feinstein Introduces Bill To Preserve State LNG Decisionmaking Powers
(May 23, 2005, updated 11:30 a.m.) -- U.S. Senator Dianne Feinstein (D., CA) has introduced a bill to maintain the authority of state agencies in Liquefied Natural Gas (LNG) siting and decisionmaking.
The move is to counter part of a House-passed Energy bill (and Senate proposed LNG verbiage released at midday, separate coverage coming) giving the Federal Energy Regulatory Commission (FERC) unambiguous federal authority to trump state bodies in LNG siting and safety decisionmaking.
For months, the CA Public Utilities Commission (CPUC) has opposed the advancing federal-supremacy language...which would effectively strip CPUC of jurisdiction over LNG under CA law.
The bill, introduced May 20 and designated S. 1090 (text below), is co-authored by a moderate Republican, U.S. Senator Olympia Snowe (R., ME).
And as first reported by LBReport.com, CA Governor Arnold Schwarzenegger has written the Republican chair and Democrat ranking member of the Senate Energy & Natural Committee (which will take up the Energy bill), opposing federal preemption of state authority on the LNG issue (and also weighing in on other issues).
Under Sen. Feinstein's proposed legislation, FERC "shall" approve an LNG application "unless, after opportunity for hearing, the Commission or designated State agency determines that the proposed siting, construction, expansion, or operation is not consistent with the public interest."
The bill allows states to "adopt additional or more stringent safety standards for intrastate pipeline facilities, intrastate pipeline transportation, and liquefied natural gas pipeline facilities only if those standards are compatible with the minimum standards prescribed under this chapter."
The fate of Sen. Feinstein's bill in the Republican controlled Senate is uncertain.
In supporting federal supremacy on LNG safety and siting decisionmaking, the chair of the House Energy Committee, Joe Barton (R., TX) called these provisions among the most important parts of the Energy bill. President Bush has previously indicated that he supports the House Energy bill as passed and has made general references to speeding FERC's authority to approve LNG facilities.
[begin Senator Feinstein bill text]
Liquefied Natural Gas Import Terminal Authorization Act (Introduced in Senate)
S 1090
109th CONGRESS
1st Session
S. 1090
To provide certain requirements for the siting, construction, expansion, and operation of liquefied natural gas import terminals, and for other purposes.
IN THE SENATE OF THE UNITED STATES
May 20, 2005
Mrs. FEINSTEIN (for herself and Ms. SNOWE) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources
A BILL
To provide certain requirements for the siting, construction, expansion, and operation of liquefied natural gas import terminals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Liquefied Natural Gas Import Terminal Authorization Act'.
SEC. 2. AUTHORIZATION FOR LIQUEFIED NATURAL GAS IMPORT TERMINALS.
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by adding at the end the following:
`(d) Authorization for Natural Gas Import Terminals-
`(1) IN GENERAL- A person shall not site, construct, expand, or operate a liquefied natural gas import terminal within the boundaries of a State unless--
`(A) the person submits an application to site, expand, or operate a liquefied natural gas import terminal to--
`(ii) the State agency that has siting authority under State law in the State in which the liquefied natural gas import terminal is located (referred to in this subsection as the `designated State agency'); and
`(B) the Commission and the designated State agency issue an order approving the application.
`(2) ISSUANCE OF ORDER- The Commission and the designated State agency shall issue an order approving an application, in whole or part, that is submitted under paragraph (1)(A), unless, after opportunity for hearing, the Commission or designated State agency determines that the proposed siting, construction, expansion, or operation is not consistent with the public interest.
`(3) TERMS AND CONDITIONS-
`(A) IN GENERAL- An order issued under paragraph (2) shall be subject to any terms and conditions that the Commission or designated State agency determines are appropriate.
`(B) SERVICE REQUIREMENTS-
`(i) IN GENERAL- Except as provided in clause (ii), an order issued under this subsection shall not be conditioned on a requirement that the liquefied natural gas import terminal offer service to persons other than the applicant.
`(ii) EXCEPTION- Notwithstanding clause (i), the Commission or designated State agency may require the applicant to establish a backup procedure for making the liquefied natural gas import terminal available to others if the applicant is unwilling or unable to provide a steady supply to the market served by the liquefied natural gas import terminal.
`(C) CONFLICTS- If an applicant is unable to comply with conflicting terms and conditions established under subparagraph (A), the Secretary of Energy, in cooperation with the Executive Office of the President, shall mediate the conflict between the Commission or designated State agency and the applicant through a process that includes public hearings in the area affected by the proposed liquefied natural gas import terminal.'.
SEC. 3. PREEMPTION.
Section 60104 of title 49, United States Code, is amended by striking subsection (c) and inserting the following:
`(1) IN GENERAL- A State authority that has submitted a current certification under section 60105(a) may adopt additional or more stringent safety standards for intrastate pipeline facilities, intrastate pipeline transportation, and liquefied natural gas pipeline facilities only if those standards are compatible with the minimum standards prescribed under this chapter.
`(2) SAFETY STANDARDS- Except in the case of liquefied natural gas pipeline facilities, a State authority may not adopt or continue in force safety standards for interstate pipeline facilities or interstate pipeline transportation.'.
Developing.
Related coverage: LBReport.com maintains a link on our front page to a compilation of our LNG coverage. To view it, click here.
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