The Senate last week approved an amendment that would require the Department of Homeland Security (DHS) to submit a report to Congress on coordinating the U.S. Coast Guard’s water traffic, security and safety review with FERC’s environmental reviews of proposed liquefied natural gas (LNG) terminals.

The amendment, which was sponsored by Sen. Jack Reed (D-RI), was included in the fiscal year 2005 appropriations measure for DHS. The spending bill has passed both the Senate and House, and will be headed to conference.

The senator “thinks all the information [pertaining to an LNG facility] should be presented” when a project is up for FERC approval, said Reed spokesman Adam Bozzi. The current process allows the Coast Guard’s letter of recommendation for an LNG terminal to be delayed until after a final decision by the Federal Energy Regulatory Commission, the senator noted.

Reed sent a letter to FERC Chairman Patrick Wood last Wednesday, expressing his dismay with the fact that the Commission would likely complete its environmental review of two LNG projects planned for the New England region prior to the Coast Guard finishing its review.

“It is troubling…that the FERC will likely complete the [environmental impact study] processes on the Weaver’s Cove and KeySpan [LNG) projects — and the public’s opportunity to comment will end — before the Coast Guard has completed an Incident Action Plan that will answer key questions regarding potential bridge closures and restrictions on commercial and recreational vessels along shipping routes,” Reed wrote.

“The public should be aware of the entire impact of an LNG terminal, including the Coast Guard’s vulnerability assessment, before a final decision is made on the placement of the terminal,” he said.

“I urge [FERC] to work with DHS to explore every opportunity to coordinate the approval process with the Coast Guard so that the public can comment on proposed projects with a more thorough understanding of security protocols and the confidence that every security issue has been addressed.”

The proposed Weaver’s Cove LNG terminal, which is opposed by the local community of Fall River, MA, would have a capacity of 0.8 Bcf/d. The KeySpan facility would be sited in Providence, RI, and would have a capacity of 0.5 Bcf/d.

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