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In the US, for example, LNG projects are subject to various
laws and regulations that are administered by the Federal
Energy Regulatory Commission (FERC), the Coast Guard, the
Army Corps of Engineers and the States. While the Energy Policy
Act of 2005 affirmed FERC's authority to site LNG terminals,
States can effectively block an LNG project by denying permits
associated with the Clean Water Act, the Coastal Zone Management
Act, and the Clean Air Act.
In other words, the FERC has exclusive authority under the
Energy Policy Act to authorize siting of LNG facilities for
both import and export; however, authorization is conditioned
on an applicant's satisfaction of other statutory requirements
beyond the scope of FERC's jurisdiction.
For example, under the Coastal Zone Management Act, an LNG
project sponsor must certify that the proposed activity in
a designated coastal zone complies with the enforceable policies
of the affected state's coastal zone management program. If
the state does not concur with the certification, no FERC
approval to construct may be granted. Also, under the Clean
Water Act, certification of compliance with the state's water
quality standards is required from the responsible state agency
for any activity (including construction and operation of
LNG import facilities) that may result in a discharge into
navigable waters. If the certification is denied, the LNG
facility cannot be constructed.
ZECG principals and executive consultants bring decades of
practice experience in regulatory affairs dating back long
before deregulation of the natural gas industry and globalization
of the gas trade. Experience ranges from rates and cost-of-service
studies prepared in connection with contested regulatory proceedings,
filings with provincial, state and federal agencies and expert
testimony, on the one hand, to client assistance in developing
sound, comprehensive regulatory strategies that integrate
optimally with corporate business plans on the other. |
