Posted on 06/22/2005 9:43:07 AM PDT by NormsRevenge
WASHINGTON - The Senate agreed Wednesday to give federal regulators clear authority to override state objections to the siting of liquefied natural gas import facilities, rejecting a proposal that would have allowed governors to block a project because of public health or the environmental concerns.
Supporters for increased federal authority over LNG import facilities argued that the country will require huge increases of natural gas imports in coming years and that state-imposed roadblocks could hamstring needed import projects. They argued states will continue to have a say in siting decisions because of various local and state requirements for local permits.
The Senate rejected, 52-45, a proposed amendment to a sweeping energy bill that would have allowed governors to veto a final LNG siting decision by the Federal Energy Regulatory Commission. The Senate was expected to finish the energy bill this week.
"States must have a role in siting LNG facilities in order to protect the welfare of its citizens," argued Sen. Dianne Feinstein, D-Calif., whose state has been the focus of a legal fight over authority of FERC to approve an LNG terminal in Long Beach despite state objections.
The energy bill includes a provision clarifying that FERC has the "exclusive" authority to make a final decision on an LNG import facility.
"Any governor that wants to participate ... has ample opportunity to do that," maintained Sen. Pete Domenici, R-N.M., adding that there were "a myriad" of zoning, environmental and other permits that a project still must obtain.
But he said that the country is dependent on natural gas and will need a growing amount of LNG imports to meet demand. "The country can't wait around and say we'll wait until this matter is litigated to see how many governors will say no until we find one that will say yes," said Domenici.
A growing number of coastal states, especially in heavily populated areas of the Northeast and West, have raised concerns over siting LNG sites because of the potential for a spill or possible terrorist attack against a site or incoming LNG tanker.
A report last year by the Sandia federal lab concluded terrorists could tear one or more holes in a tanker that would release LNG and create an intense fire capable of causing significant property damage and serious burns as far as a mile away.
"We're not talking about the siting a neighborhood ballpark or a Wal-Mart," said Sen. Olympia Snowe, R-Maine, where communities have rejected several LNG projects. "It's a state rights issue, plain and simple."
There are four LNG import facilities currently operating in Massachusetts, Maryland, Georgia and Louisiana. More than 40 additional facilities have been proposed, including some in heavily populated areas where the projects have generated strong local and state objections.
While currently LNG accounts for only about 3 percent of U.S. natural gas use, the Energy Department estimates the market share will grow to more than 20 percent by 2025 because of a decline in domestic natural gas supplies.
LNG is natural gas that is cooled to minus-260 degrees Fahrenheit to liquid form so it can be shipped on a specially designed tanker. At an import facility that liquid is stored in tanks before being gradually warmed and returned to a gaseous state and shipped through conventional pipelines.
Tell me again how Republicans believe in state control over federal control?
Maybe this will speed up the Long Beach terminal
I'm confused. I seem to recall that the Republicans were in favor of state control, but I am obviously misremembering.
Newport, Oregon's LNG Facility has been unused since it was built many many years ago. Looks like Newport might just end up as a large crater after all...
My understanding was the Newport LNG facility has been in full use as a surge tank. Could be wrong on that one though. Information on LNG terminals has been pulled from official sites.
We have been shipping Alaskan LNG to Japan for many more years than the Newport tank has been there. LNG has been moved safely around Africa & Asia & Europe & NE US for a long time.
I've been observing the Newport Lng Tank facility over the years and there is never any activity going on there. No ships, no work activity. My brothers, bro-in-law worked there as a security guard. He says the place is inactive. It just sits there waiting for it's day in the sun.
States' rights get hosed again.
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