News 
January-March 2004
| News Release: March 24, 2004 | 
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| Docket Number: CP04-58-000 | |
Commission Asserts Exclusive Jurisdiction
For Liquefied Natural Gas Facilities
Regulatory authority for the siting and construction of liquefied natural gas
(LNG) import terminals rests exclusively with the federal government, the Federal
Energy Regulatory Commission concluded in an order issued today.
The Commission clarified its authority in an order responding to the
California Public Utilities Commission's (CPUC) claim that California has
jurisdiction over LNG facilities within its borders. The CPUC believes that Sound
Energy Solutions (SES), an applicant to FERC for a proposed LNG import facility
at the Port of Long Beach, must submit an application to the CPUC for the
proposed LNG terminal.
The Commission expressed its intention to continue to work closely with
the CPUC, other California state and local agencies, federal agencies, and the
public in reviewing the proposed Long Beach LNG project. The Commission
noted that FERC staff and the Port of Long Beach are working on a joint
environmental analysis of the project. In addition to potential impact on the
environment and cultural resources, the analysis will take into consideration tanker
operation, marine facilities, safety and terminal siting construction and operation.
"We acknowledge the legitimate concerns of the CPUC regarding matters
of safety and security and give our assurance that the evaluation of the proposed
project will include thorough and rigorous review of these issues," the
Commission said.
In a related action, the Commission today announced the formation of a
new branch within FERC's Office of Energy Projects devoted to LNG issues. The
LNG Engineering Branch will be responsible for the Commission's LNG
inspection program and ensuring coordination among other relevant agencies,
including the U.S. Coast Guard and the Department of Transportation's Office of
Pipeline Safety. Creating the new branch reflects LNG's importance for the
nation's energy infrastructure and economy.
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