Schwarzenegger, 5 other governors press senators on LNG terminals

Bakersfield Californian ^ | 5/25/05 | Erica Werner - AP

[NormsRevenge]

WASHINGTON (AP) - California Gov. Arnold Schwarzenegger and five other coastal-state governors are asking senators not to take away states' role in approving natural gas import terminals.

The issue is expected to come up Thursday when the Senate Energy Committee debates language in an energy bill that would give authority over placement of liquefied natural gas (LNG) terminals to the Federal Energy Regulatory Commission. In a letter Wednesday to the energy committee's chairman and top Democrat, Schwarzenegger and the governors of Massachusetts, Louisiana, Delaware, Rhode Island and New Jersey said states and local agencies should have shared jurisdiction with the federal government over projects on their coasts.

"We support legislation that would provide for concurrent state and federal jurisdiction over LNG and other energy facilities," said the letter to Sens. Pete Domenici, R-N.M., and Jeff Bingaman, D-N.M.

The House has already passed an energy bill affirming FERC's authority to approve the natural gas import terminals. The provisions passed by the GOP-controlled House "unacceptably pre-empt state and local jurisdiction," the three Republican and three Democratic governors wrote.

Sen. Dianne Feinstein, D-Calif., plans to offer an amendment Thursday requiring shared jurisdiction over natural gas terminals between states and the FERC.

But FERC Chairman Patrick Wood said Wednesday he didn't think the energy bill language would diminish states' authority over LNG terminals.

"I don't see in the energy bill's LNG language where the states' robust regulatory authority will be affected, except to set a reasonable and statutorily supported timeline for the states to act," he told reporters after a commission meeting.

A spokeswoman for Domenici did not immediately return a call for comment.

LNG is natural gas that is cooled into liquid form so it can be shipped from overseas, then converted back into gas form and distributed to U.S. consumers.

There are now just a handful of LNG import facilities in the United States and companies are trying to build more. But safety concerns over the potential for an explosion or spill are causing strenuous objections from some local communities.

The Long Beach, Calif., city council postponed a vote Tuesday night on a $450 million natural gas terminal that has caused an uproar among residents. That case has also prompted the California Public Utilities Commission to challenge FERC in federal court over which agency has authority over the terminal. The case is pending.

In addition to Schwarzenegger, a Republican, the governors signing the letter were Republicans Mitt Romney of Massachusetts and Donald Carcieri of Rhode Island, and Democrats Kathleen Blanco of Louisiana, Ruth Ann Minner of Delaware and Richard Codey of New Jersey, the acting governor.

[Ditto]

NIMBY's is action. LNG is little noticed, but IMHO, it is the most pressing item in the energy field. We need to get our ass in gear on building these new ports or we will be facing a serious crunch.