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Sound Energy Solutions, a subsidiary of Mitsubishi Corp. of Japan, is proposing to build and operate a liquefied natural gas (LNG) import terminal at the Port of Long Beach.
Sited to occupy 25 acres at the southeast end of Terminal Island, the terminal would provide about 10 percent of California’s needs for the cleaner-burning fuel. When cooled to minus 260 degrees, natural gas becomes a liquid. LNG would be shipped primarily from Pacific Rim countries to Long Beach, where the liquid would be gradually warmed until it is again a gas. The proposed terminal also would have a facility for distributing LNG in its liquid form.
Construction cannot begin without the approval of local, state and federal authorities, and after a thorough review of the issues. Since fall 2003, Port staff, other government regulators and representatives of SES have held more than a dozen meetings to inform the community about the possible scope and impacts of the project. The public will have more opportunities to comment as the review and permitting process continues. A final decision may not come until early 2006.
The Port of Long Beach is acting as the lead environmental review agency for the state. The federal government regulates LNG, so a federal review process is required in addition to a state review. Instead of two separate environmental reviews, the Federal Energy Regulatory Commission and the Port agreed to combine the reviews into a single comprehensive document.
Start of the Process
Before the review could begin, SES had to obtain a letter of intent from the Port saying that a place to build the terminal was available and reserved for a finite period. This was done in 2003.
SES also applied for a Harbor Development Permit from the Port, which is required before starting any construction. This permit has its own application and review process that is running concurrently with the federal and state environmental process. SES will need approval from the Long Beach Board of Harbor Commissioners to obtain this permit.
Once the joint environmental review was decided on, staff from the Port, FERC and SES met to develop a plan identifying potential impacts, people who might be affected, and how to include these potentially affected people in the review process.
These plans led to an SES-sponsored public workshop in September 2003. Public comments from the meeting were included in a "notice of preparation" that opened the "scoping" phase of the project. During this phase, the Port, SES and FERC held a public meeting in October 2003 to gather additional input and decide on the scope of the environmental review.
The Port and FERC are now preparing a draft of the joint Environmental Impact Statement/Environmental Impact Report that will include discussions of issues raised during the scoping phase. The document will examine possible safety risks; alternative plans for the project; potential air, noise or visual pollution; any cultural or historic impact; and other possible impacts. The document must also discuss mitigation of the potential impacts. In addition, SES is continuing to hold outreach meetings to educate and to listen to the community.
The Next Steps
The draft version of the EIS/EIR is scheduled for release to the public by the fall of 2005. FERC will send the document to the U. S. Environmental Protection Agency and the Federal Register, auto-matically triggering another public comment period. Written comments will be accepted during this 45-day period. This period will culminate with a meeting in the Port area where the public can comment in person.
Following this meeting, the Port and FERC will formally respond to each of the comments in the Final EIS/EIR. This process could take several months. The final version of the EIS/EIR could be released in early 2006.
Following a review of the final version, FERC will vote on the project. The commission meets in Washington, D.C. Although its meeting will be open to the public, the commission will not take additional public comment.
The environmental review is only one aspect of the total review and permitting process. Construction projects in the Port cannot begin without Harbor Commission approval of a Harbor Development Permit. The public will have a chance to comment on this permit at any of the Board’s weekly meetings before the permit comes up for a vote.
However, before the Port can issue a permit, it will need to amend its land-use master plan. The amendment needs the approval of the California Coastal Commission. The amendment process will take four to six months after the completion of the environmental review.
The U.S. Coast Guard also must review and approve any vessel safety and mooring plans for the terminal. This can happen at any time during the permitting processes.
A final nod will have to come from the Board of Harbor Commissioners. The five-member board will have to negotiate, approve and sign a permanent lease with SES before construction begins. This can happen as soon as the environmental review documents are finalized, but also can wait until all other reviews are decided.
If SES obtains all of the required permits and approvals, the firm could move forward with the project’s 36-month construction schedule by mid-2006, with an opening planned for 2009.
For more information about LNG, visit the California Energy Commission website.
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