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Outgoing DOE Chief Bullish on Energy Bill Passage, Federal Oversight of LNG
Outgoing Secretary of Energy Spencer Abraham on Wednesday said that there needs to be a strong federal role in making sure that liquefied natural gas (LNG) terminals get sited in the U.S. and expressed optimism that Congress will finally be able to pull a comprehensive energy bill across the finish line this year.
“I think there needs to be a real debate here or discussion of the proper of the federal government in this [LNG siting] because I think the federal government has a responsibility to make sure that the country does have the energy security that we need,” Abraham said at a press briefing in Washington, DC, sponsored by the Energy Daily. “I really do believe that there needs to be a federal role in this process.”
Abraham, who is being replaced by Samuel Bodman as Secretary of Energy, said that “at a minimum…what you don’t want is to have a situation in which community after community after community sort of says no” to LNG projects “and then nothing happens. There needs to be some process that results in action being taken.”
He said, “I do think probably there needs to be some federal authority, though, to make sure that we do have this capacity. If we don’t, the country’s going to face some serious consequences.”
Several local communities in the U.S. have voiced opposition to various proposed LNG projects. “I think it will be a growing problem,” he said when asked about states pushing for more say in the siting of LNG terminals. “It’s fairly easy, I think, for local communities to be worked up about and raise concerns about gas. I expect to see that happening wherever siting is proposed.”
But he doesn’t think “the other side of the story is being properly told of what the costs to the country are in terms of lost jobs, of soaring fuel costs and so on if we can’t meet our growing demand for gas.”
Noting a previous federal legislative proposal to give last-resort transmission siting authority to the federal government in electric transmission corridors identified as a national interest, Abraham said that LNG siting is “as much of a national interest” as electric transmission corridors.
“If we don’t site LNG terminals in this country, on both coasts, and therefore with access to the gas from all parts of the world, we put America at risk — a significant risk — and so I think there needs to be a discussion of this.”
While he doesn’t have a specific proposal in terms of implementing federal LNG siting authority, the former DOE secretary said “it’s impossible to go ahead without there being a strong federal role to make sure that ultimately these needed terminals are sited.”
Lawmakers on Capitol Hill are moving to clarify the federal role in the siting of LNG terminals. Rep. Lee Terry (R-NE) recently re-introduced legislation that, among other things, would place jurisdiction for the siting of LNG import terminals with the Federal Energy Regulatory Commission, ending existing jurisdictional conflicts (see Daily GPI, Feb. 1).
Meanwhile, Abraham, a former U.S. Senator from Michigan, gazed into the crystal ball in trying to gauge the chances for comprehensive energy legislation finally clearing Congress this year.
“The truth is the numbers now are such that an energy bill can get passed in this Congress,” he said. “The numbers in the Senate now, it seems to me, make it very likely — certain almost — that we can pass a bill. I also think that ANWR [Arctic National Wildlife Refuge] will now have an excellent chance of being moved under a reconciliation budget process.”
Abraham said that his biggest disappointment while serving as Secretary of Energy occurred when comprehensive energy legislation fell two votes short of being passed by Congress in November 2003.
“I look ahead and see some real serious energy hurdles and challenges coming in the years ahead,” he said. “I believe that by…taking action, demonstrating to the markets and to the rest of the world that America is going to be aggressively addressing its energy security issues, we would — and still will — have a very big impact when we get that legislation through.”
Abraham confirmed that he is joining the Hoover Institution’s Washington, DC, office “as part of their visiting distinguished fellows program.” Bodman, who was confirmed by unanimous consent as energy secretary earlier this week, officially took over the reins at the DOE on Tuesday (see Daily GPI, Feb. 2).
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