California PUC calls on US FERC to reconsider LNG jurisdiction

Washington (Platts)--26Apr2004

Continuing its turf fight, the California Public Utilities Commission on
Friday filed a request for rehearing of the US Federal Energy Regulatory
Commission's Mar 24 order asserting exclusive jurisdiction over Sound Energy
Solutions' plan to build a liquefied natural gas terminal in Long Beach,
California. The PUC accused FERC of committing "numerous legal errors" in the
order and trying "to strip the state of California" of its rights. The state
regulators said Congress has "explicitly provided" savings clauses in several
federal statutes that enable states to impose their own safety requirements
and environmental protections. Yet, FERC has "sought to divest the state of
California of any decisionmaking authority with regard to where in California
LNG facilities should be located or what safeguards must be employed at those
LNG facilities to protect the health and safety of its citizens and its
environment," the PUC said.

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