[Congressional Record Volume 153, Number 63 (Thursday, April 19, 2007)]
[Senate]
[Page S4780]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CARDIN (for himself and Ms. Mikulski):
  S. 1174. A bill to amend the Natural Gas Act to modify a provision 
relating to the siting, construction, expansion, and operation of 
liquefied natural gas terminals; to the Committee on Energy and Natural 
Resources.
  Mr. CARDIN. Mr. President, today I am introducing legislation to 
restore the authority of State and local governments to protect the 
environment and ensure public safety with respect to the siting of 
Liquefied Natural Gas (LNG) terminals within their States. This measure 
would strike a provision in the Energy Policy Act of 2005 which gave 
the Federal Regulatory Energy Commission (FERC) power to preempt State 
and local concerns in the siting, construction and operation of LNG 
facilities.
  In recent years, the LNG industry has proposed building dozens of new 
LNG terminals throughout the United States, as LNG's share of the 
natural gas market continues to grow rapidly. Many of these terminals 
are being planned near populated areas or in environmentally sensitive 
coastal areas. As a highly hazardous and combustible fuel source, LNG 
poses serious safety concerns to local communities from potential 
accidents, as well as terrorism risks. Richard Clarke, a former Bush 
Administration Counter Terrorism official, noted that LNG terminals and 
tankers present ``especially attractive targets'' to terrorists. 
Experts have identified anumber of potentially catastrophic events that 
could arise from an LNG release, including pool fires--an extremely 
intense fire that cannot be extinguished and can spread over 
considerable distance, flammable vapor clouds that may drift some 
distance from the spill site, and flameless explosions. According to 
the Congressional Research Service, there have been approximately 13 
serious accidents at LNG plants around the world over the past six 
decades, including three accidents which caused fatalities--two in 
Algeria in 1977 and 2004 respectively, and another at Cove Point, MD; 
in 1979, which killed one worker and caused some $3 million in damages.
  In the State of Maryland, which is already home to one of six 
operating LNG terminals in the United States, AES Sparrows Point LNG, 
LLC and Mid-Atlantic Express, LLC has proposed building a new terminal 
near a densely-populated area of Baltimore. Our area Congressional 
Delegation, Governor O'Malley, Baltimore County Executive Jim Smith and 
other local officials and community leaders believe this project poses 
unacceptable public safety, economic and environmental risks and does 
not serve the public interest. Yet, under current law, the Federal 
Energy Regulatory Commission now has exclusive authority to approve 
onshore LNG terminal siting applications. While the law requires FERC 
to consult with State and local governments regarding safety concerns, 
they have no role in the final decision. Moreover, while the law 
permits states to conduct safety inspections of LNG terminals, they do 
not have the authority to require any safety precautions or to take 
enforcement actions if they discover problems at a facility during a 
safety inspection.
  It is vital, in my opinion, that State and local authorities and the 
public have a meaningful opportunity to participate in the decision-
making process about the siting of these plants. These terminals have 
the potential for tremendous impacts on the communities in which they 
would be constructed and would operate. The measure I am introducing 
today seeks to restore that authority and give Governors the same veto 
powers for onshore LNG terminal proposals as they currently exercise 
for offshore terminal proposals under the Deepwater Port Act. I urge my 
colleagues to join me in supporting this measure.
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