[Congressional Record Volume 151, Number 33 (Thursday, March 17, 2005)]
[Senate]
[Pages S3064-S3066]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED:
  S. 684. A bill to amend the Natural Gas Act to provide additional 
requirements for the siting, construction, or operation of liquefied 
natural gas import facilities; to the Committee on Energy and Natural 
Resources.
  Mr. REED. Mr. President, today I introduce the Liquefied Natural Gas 
Safety and Security Act of 2005.
  The siting of liquefied natural gas (LNG) import terminals is an 
issue that has taken on critical importance for me and for the people 
of Rhode Island in recent months, as the Federal Energy Regulatory 
Commission (FERC) is now considering proposals by KeySpan Energy and 
Weaver's Cove Energy to establish LNG marine terminals in Providence, 
RI and Fall River, MA, respectively.
  I recognize that natural gas is an important and growing component of 
New

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England's and the Nation's energy supply, and that imported LNG offers 
a promising new supply source to complement our domestic natural gas 
supplies. In a post-September 11 world, however, we must consider the 
substantial safety and security risks associated with siting LNG marine 
terminals in urban communities and requiring LNG tankers to pass within 
close proximity to miles of densely populated coastline.
  The LNG Safety and Security Act would address these concerns by 
improving FERC's siting process, requiring closer collaboration between 
FERC and the Coast Guard, and protecting States' permitting rights 
under Federal and State law.
  First, the bill would improve FERC's approval process for LNG 
terminals. Instead of reviewing proposed LNG projects on a first come-
first served basis, the bill would require FERC to work with states and 
the Coast Guard to pursue a regional approach to LNG terminal siting, 
including a review of offshore and remote sites and a determination of 
how many LNG terminals a region needs. To address the substantial new 
costs faced by state and local agencies responsible for security and 
safety at the LNG terminal and along shipping routes, the bill would 
require the developer to create a cost-sharing plan describing direct 
cost reimbursements to these agencies. To make sure that FERC addresses 
all relevant safety and security issues in its Final Environmental 
Impact Statement (EIS) for an LNG terminal--and that the public has 
access to this information before FERC makes a final decision--the bill 
requires FERC to await the completion of an Incident Action Plan by the 
Coast Guard before issuing a Final EIS. It would require FERC to 
incorporate the non-security sensitive components of the Incident 
Action Plan into the Final EIS, including all safety and security 
resource requirements identified by the Coast Guard.
  Second, to ensure that States continue to have the authority to 
establish meaningful safety and security standards and to protect their 
fragile coastal environments, the bill requires FERC to comply with 
Federal laws that may be enforced by States, including the National 
Historic Preservation Act, the Coastal Zone Management Act, the Clean 
Water Act, and the Clean Air Act; clarifies the right of a State to 
review an application to site an LNG facility under any of these laws; 
and establishes that FERC has no authority to preempt a State 
permitting determination under federal or state law.
  Third, to ensure that the Department of Transportation's safety 
standards for LNG terminals truly encourage remote siting as Congress 
intended, the bill requires the Secretary of Transportation to issue 
new regulations establishing standards to promote the remote siting of 
LNG terminals.
  Finally, to protect coastal communities along LNG shipping routes, 
the bill requires the Coast Guard to issue regulations establishing 
thermal and vapor exclusion zones for vessels transporting LNG, based 
on existing DOT regulations for LNG terminals on land.
  I again want to emphasize that I recognize LNG's important role in 
the energy infrastructure of Rhode Island and the Nation, and I look 
forward to working with my colleagues to ensure reliable supplies of 
natural gas to our homes and businesses without siting LNG import 
terminals in densely populated urban areas. I am confident that we can 
achieve this goal by requiring FERC and other federal agencies to 
explore a broad list of alternatives--including offshore LNG 
facilities--to bring more natural gas to our communities while 
minimizing the risk to our citizens.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 684

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Liquefied Natural Gas Safety 
     and Security Act of 2005''.

     SEC. 2. SITING OF LIQUEFIED NATURAL GAS IMPORT FACILITIES.

       Section 3 of the Natural Gas Act (15 U.S.C. 717b) is 
     amended by adding at the end the following:
       ``(d)(1) Before issuing an order authorizing an applicant 
     to site, construct, expand, or operate a liquefied natural 
     gas import facility, the Commission shall require the 
     applicant, in cooperation with the Commandant of the Coast 
     Guard and State and local agencies that provide for the 
     safety and security of the liquefied natural gas import 
     facility and any vessels that serve the facility, to develop 
     a cost-sharing plan.
       ``(2) A cost-sharing plan developed under paragraph (1) 
     shall include a description of any direct cost reimbursements 
     that the applicant agrees to provide to any State and local 
     agencies with responsibility for security and safety--
       ``(A) at the liquefied natural gas import facility; and
       ``(B) in proximity to vessels that serve the facility.
       ``(e)(1) In this subsection, the term `region' means a 
     census region designated by the Bureau of the Census as of 
     the date of enactment of this subsection.
       ``(2) Not later than 90 days after the date of enactment of 
     this subsection and annually thereafter, the Commission 
     shall--
       ``(A) review all applications for the siting, construction, 
     expansion, or operation of a liquefied natural gas import 
     facility in a region that are pending with the Commission;
       ``(B) consult with States in the region to identify remote 
     sites for the development of potential liquefied natural gas 
     import facilities in the region; and
       ``(C) in collaboration with the Commandant of the Coast 
     Guard, review--
       ``(i) any offshore liquefied natural gas projects proposed 
     for a region; and
       ``(ii) other potential offshore sites for the development 
     of liquefied natural gas.
       ``(3) Based on the reviews and consultations under 
     paragraph (1), the Commission shall determine--
       ``(A) whether liquefied natural gas import facilities are 
     needed in a region; and
       ``(B) if the Commission determines under subparagraph (A) 
     that liquefied natural gas import facilities are needed for a 
     region, the number of liquefied natural gas import facilities 
     that are needed for the region.
       ``(4) The Commission shall cooperate with the Commandant of 
     the Coast Guard and States to ensure that--
       ``(A) the Commission approves only the number of liquefied 
     natural gas import facilities that are needed for a region, 
     as determined under paragraph (3)(B); and
       ``(B) any liquefied natural gas import facilities approved 
     under subparagraph (A) are sited in locations that provide 
     maximum safety and security to the public.
       ``(f)(1) Notwithstanding any other provision of law, the 
     Commission shall not issue a final environmental impact 
     statement or similar analysis required under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to a proposed liquefied natural gas facility 
     before the date on which--
       ``(A) the applicant completes--
       ``(i) a security assessment for the proposed facility; and
       ``(ii) a security plan for the proposed facility; and
       ``(B) the Commandant of the Coast Guard completes an 
     incident action plan that identifies the resources needed to 
     support appropriate air, land, and sea security measures 
     during the transit and offload of a liquefied natural gas 
     vessel.
       ``(2) The Commission shall incorporate into the final 
     environmental impact statement or similar analysis the non-
     security sensitive components of the incident action plan and 
     all other safety and security resource requirements 
     identified by the Commandant of the Coast Guard for a 
     proposed liquefied natural gas import facility.
       ``(g)(1) For purposes of reviewing and approving or 
     disapproving an application to site, construct, or operate a 
     liquefied natural gas import facility, the Commission shall--
       ``(A) consult with the State in which the facility is 
     proposed to be located; and
       ``(B) comply with all applicable Federal laws, including--
       ``(i) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.);
       ``(ii) the Coastal Zone Management Act of 1972 (16 U.S.C. 
     1451 et seq.);
       ``(iii) sections 401 and 402(b) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1341, 1342(b)); and
       ``(iv) sections 107, 111(c), and 116 of the Clean Air Act 
     (42 U.S.C. 7401, 7411(c), 7416).
       ``(2) Nothing in this section precludes or denies the right 
     of any State to review an application to site, construct, or 
     operate a liquefied natural gas import facility under--
       ``(A) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.);
       ``(B) the Coastal Zone Management Act of 1972 (16 U.S.C. 
     1451 et seq.);
       ``(C) sections 401 and 402(b) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1341, 1342(b)); and
       ``(D) sections 107, 111(c), and 116 of the Clean Air Act 
     (42 U.S.C. 7401, 7411(c), 7416).
       ``(3) Notwithstanding any other provision of law, the 
     Commission shall have no authority to preempt a State 
     permitting determination with respect to a liquefied natural 
     gas import facility that is made under Federal or State 
     law.''.

     SEC. 3. STANDARDS FOR LIQUEFIED NATURAL GAS PIPELINE 
                   FACILITIES.

       Section 60103 of title 49, United States Code, is amended--
       (1) by redesignating subsections (e), (f), and (g) as 
     subsections (f), (g), and (h), respectively; and

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       (2) by inserting after subsection (d) the following:
       ``(e) Remote Siting Standards.--Not later than 180 days 
     after the date of enactment of this Act, the Secretary shall 
     promulgate regulations establishing standards to promote the 
     remote siting of liquefied natural gas pipeline 
     facilities.''.

     SEC. 4. THERMAL AND VAPOR DISPERSION EXCLUSION ZONES.

       As soon as practicable after the date of enactment of this 
     Act, the Commandant of the Coast Guard shall issue 
     regulations establishing thermal and vapor dispersion 
     exclusion zone requirements for vessels transporting 
     liquefied natural gas that are based on sections 193.2057 and 
     193.2059 of title 49, Code of Federal Regulations (or any 
     successor regulations).
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