By Debra DeHaney-Howard
March 7, 2005

Providence Mayor David Cicilline testified February 15 before Senate Subcommittee on Energy and Natural Resources concerning current review and siting processes used by the Federal Energy Regulatory Commission (FERC) for Liquefied Natural Gas (LNG) projects. In his testimony, Cicilline stated, "Given the serious flaws in the way FERC administers the Environmental Impact Study (EIS) process and given post 911 homeland security realities, it is time for a comprehensive review and reform of the LNG siting approval process ."

Cicilline's testimony focused on whether or not LNG facilities and marine terminals should be located in densely populated urban centers. Citing a recent report by Sandia National Laboratories, Cicilline said, "The report raises particular concern — and FERC must incorporate the findings of the report into its review process and review criteria." The report, issued earlier this year, provides a comprehensive assessment of the impact of terrorist strikes on LNG terminals.

To keep up with demand for natural gas, industry officials say more LNG terminals need to be built. In response, FERC is considering proposals for new terminals as well as expanding existing terminals.

Cicilline noted that the "FERC siting process has insufficiently accounted for the immediate and long-term economic impact the KeySpan expanded facility proposal will have on the city of Providence." He pointed out that "Real and perceived danger presented by this expanded facility will, no doubt, lower property values in the surrounding area as the city's public safety duties and expenses will increase."

Cicilline urged Congressional action to address LNG siting issues. Cicilline recommended that the Committee focus on the following facility siting reforms: analyzing proposals in a comprehensive, regional way not project-by-project; evaluating alternatives, including reality of the threat of terrorism in the 21st century; increasing safety standards which include the latest science; and finally, ending the practice of grandfathering facilities.

In concluding his testimony, Cicilline said, "The process for reviewing and approving LNG projects is seriously flawed and needs to be reformed."