Energy Bill gives Federal authority over LNG

It looks like the final version of the federal Energy Bill will give federal regulators authority over the development of new liquefied natural gas facilities:

Rep. Joe Barton, R-Texas, the committee chairman, said it was "imperative" that the authority of the Federal Energy Regulatory Commission over approval of LNG import sites be clarified.

FERC regulates natural gas transmission and maintains it has the final say over LNG terminals as well. But California in a lawsuit has challenged the agency's authority in connection with a proposed LNG import facility in Long Beach.

Markey, sponsor of the amendment that would have stripped the LNG provision from the bill, said the legislation will essentially block California's court challenge and reduce the ability of other states to be involved in LNG siting decisions.

"It's going to pre-empt the states for the purpose of taking care of the natural gas industry," said Markey, warning that the provision will increase the likelihood that an LNG facility will be put in a populated areas over the objections of local residents.

The full House was expected to take up the energy bill — now being crafted by three committees — possibly as early as next week. The Senate is expected to begin considered of an energy package later this year.