Thursday, April 07, 2005

Congress to push LNG authority to FERC

In a move angering State and Local Governments--and perhaps throwing into peril several liquefied natural gas projects already in the approval pipeline--Congress is pushing the Federal Energy Regulatory Commissin to rule on LNG siting:

As California officials assert their authority in court over liquefied natural gas terminals, Congress is moving to make it clear that federal regulators have the final word on where the sometimes-controversial facilities are located.

An energy bill being crafted by a House committee would solidify the Federal Energy Regulatory Commission's role in approving the growing number of proposed LNG facilities nationwide, proponents say. Some of the terminals, including several proposed for California, have encountered strong opposition from residents worried about accidents or terrorist attacks involving the highly explosive fuel.

Senate energy subcommittee Chairman Lamar Alexander, R-Tenn., introduced similar legislation yesterday.

First of all, let's set the record staright. In liquefied form, natural gas is not explosive.

Second, this bill seems to benefit those projects which have not begun the approval process. Those which are already undergoing public scrutiny would be at a comparative disadvantage if yet another regulatory body were added to the mix.