By OGJ editors
HOUSTON, Dec. 14 -- US Rep. Barney Frank, D-Mass., is coordinating an effort with congressional delegates from coastal areas to support state governments arguing that the Federal Energy Regulatory Commission lacks final jurisdiction on LNG terminal siting permits.
Frank said a bipartisan group plans to file a friend-of-the-court brief in a petition for review that the California Public Utilities Commission (CPUC) filed with the US Court of Appeals for the District of Columbia about a proposed Long Beach, Calif., LNG terminal (OGJ Online, July 16, 2004).
Frank got involved after Congress approved spending legislation with a provision declaring FERC has the final decision in permitting LNG facilities.
"The provision, added to the explanatory report accompanying the omnibus bill with no advance notice or opportunity to review it, is not binding because it wasn't part of the actual bill," Frank said. "I believe it is very clear that this provision has no legal effect.
"On the other hand, it is always possible that an individual judge could decide that the provision should be taken into account in making a ruling on the California LNG site, with that ruling then being applied to other cases in the future."
The CPUC has a jurisdictional dispute with FERC over plans by Sound Energy Solutions (SES), a wholly owned subsidiary of Japan's Mitsubishi Corp., to build and operate an LNG terminal at the Port of Long Beach (OGJ Online, July 13, 2004).
CPUC said that the SES needs a state permit under California law and that FERC has no jurisdiction because the proposed facility would only send natural gas intrastate within California. In March, FERC ruled that it has jurisdiction over the SES facility.
Frank said he has until Jan. 10 to file the brief siding with the CPUC. He said it's unclear how many lawmakers might sign the brief.
