Sec. 311. EXPORTATION OR IMPORTATION OF NATURAL GAS
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## SEC. 311 EXPORTATION OR IMPORTATION OF NATURAL GAS ###
(a)Scope of Natural Gas Act Section 1(b) of the Natural Gas Act (15 U.S.C. 717(b)) is amended by inserting “and to the importation or exportation of natural gas in foreign commerce and to persons engaged in such importation or exportation,” after “such transportation or sale,”. ###
(b)Definition Section 2 of the Natural Gas Act (15 U.S.C. 717a) is amended by adding at the end the following new paragraph: > > #### “(11) > > ‘**LNG terminal**’ includes all natural gas facilities located onshore or in State waters that are used to receive, unload, load, store, transport, gasify, liquefy, or process natural gas that is imported to the United States from a foreign country, exported to a foreign country from the United States, or transported in interstate commerce by waterborne vessel, but does not include— > > > ##### “(A) > > waterborne vessels used to deliver natural gas to or from any such facility; or > > > ##### “(B) > > any pipeline or storage facility subject to the jurisdiction of the Commission under section 7.” > . ###
(c)Authorization for Siting, Construction, Expansion, or Operation of LNG Terminals ####
(1)The title for section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by inserting “; lng terminals” after “exportation or importation of natural gas”. ####
(2)Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by adding at the end the following: > > ### “(d) > > Except as specifically provided in this Act, nothing in this Act affects the rights of States under— > > > #### “(1) > > the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.); > > > #### “(2) > > the Clean Air Act (42 U.S.C. 7401 et seq.); or > > > #### “(3) > > the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.). > > > ### “(e) > > > ####
(1)> > The Commission shall have the exclusive authority to approve or deny an application for the siting, construction, expansion, or operation of an LNG terminal. Except as specifically provided in this Act, nothing in this Act is intended to affect otherwise applicable law related to any Federal agency's authorities or responsibilities related to LNG terminals. > > > #### “(2) > > Upon the filing of any application to site, construct, expand, or operate an LNG terminal, the Commission shall— > > > ##### “(A) > > set the matter for hearing; > > > ##### “(B) > > give reasonable notice of the hearing to all interested persons, including the State commission of the State in which the LNG terminal is located and, if not the same, the Governor-appointed State agency described in section 3A; > > > ##### “(C) > > decide the matter in accordance with this subsection; and > > > ##### “(D) > > issue or deny the appropriate order accordingly. > > > #### “(3) > > > #####
(A)> > Except as provided in subparagraph (B), the Commission may approve an application described in paragraph (2), in whole or part, with such modifications and upon such terms and conditions as the Commission find necessary or appropriate. > > > ##### “(B) > > Before January 1, 2015, the Commission shall not— > > > ###### “(i) > > deny an application solely on the basis that the applicant proposes to use the LNG terminal exclusively or partially for gas that the applicant or an affiliate of the applicant will supply to the facility; or > > > ###### “(ii) > > condition an order on— > > > ###### “(I) > > a requirement that the LNG terminal offer service to customers other than the applicant, or any affiliate of the applicant, securing the order; > > > ###### “(II) > > any regulation of the rates, charges, terms, or conditions of service of the LNG terminal; or > > > ###### “(III) > > a requirement to file with the Commission schedules or contracts related to the rates, charges, terms, or conditions of service of the LNG terminal. > > > ##### “(C) > > Subparagraph
(B)shall cease to have effect on January 1, 2030. > > > #### “(4) > > An order issued for an LNG terminal that also offers service to customers on an open access basis shall not result in subsidization of expansion capacity by existing customers, degradation of service to existing customers, or undue discrimination against existing customers as to their terms or conditions of service at the facility, as all of those terms are defined by the Commission. > > > ### “(f) > > > ####
(1)> > In this subsection, the term ‘**military installation**’— > > > ##### “(A) > > means a base, camp, post, range, station, yard, center, or homeport facility for any ship or other activity under the jurisdiction of the Department of Defense, including any leased facility, that is located within a State, the District of Columbia, or any territory of the United States; and > > > ##### “(B) > > does not include any facility used primarily for civil works, rivers and harbors projects, or flood control projects, as determined by the Secretary of Defense. > > > #### “(2) > > The Commission shall enter into a memorandum of understanding with the Secretary of Defense for the purpose of ensuring that the Commission coordinate and consult with the Secretary of Defense on the siting, construction, expansion, or operation of liquefied natural gas facilities that may affect an active military installation. > > > #### “(3) > > The Commission shall obtain the concurrence of the Secretary of Defense before authorizing the siting, construction, expansion, or operation of liquefied natural gas facilities affecting the training or activities of an active military installation.” > . ###
(d)LNG Terminal State and Local Safety Concerns After section 3 of the Natural Gas Act (15 U.S.C. 717b) insert the following: > > ## Sec. 3A “STATE AND LOCAL SAFETY CONSIDERATIONS > > > ###
(a)> > The Commission shall promulgate regulations on the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) pre-filing process within 60 days after the date of enactment of this section. An applicant shall comply with pre-filing process required under the National Environmental Policy Act of 1969 prior to filing an application with the Commission. The regulations shall require that the pre-filing process commence at least 6 months prior to the filing of an application for authorization to construct an LNG terminal and encourage applicants to cooperate with State and local officials. > > > ### “(b) > > The Governor of a State in which an LNG terminal is proposed to be located shall designate the appropriate State agency for the purposes of consulting with the Commission regarding an application under section 3. The Commission shall consult with such State agency regarding State and local safety considerations prior to issuing an order pursuant to section 3. For the purposes of this section, State and local safety considerations include— > > > #### “(1) > > the kind and use of the facility; > > > #### “(2) > > the existing and projected population and demographic characteristics of the location; > > > #### “(3) > > the existing and proposed land use near the location; > > > #### “(4) > > the natural and physical aspects of the location; > > > #### “(5) > > the emergency response capabilities near the facility location; and > > > #### “(6) > > the need to encourage remote siting. > > > ### “(c) > > The State agency may furnish an advisory report on State and local safety considerations to the Commission with respect to an application no later than 30 days after the application was filed with the Commission. Before issuing an order authorizing an applicant to site, construct, expand, or operate an LNG terminal, the Commission shall review and respond specifically to the issues raised by the State agency described in subsection
(b)in the advisory report. This subsection shall apply to any application filed after the date of enactment of the Energy Policy Act of 2005. A State agency has 30 days after such date of enactment to file an advisory report related to any applications pending at the Commission as of such date of enactment. > > > ### “(d) > > The State commission of the State in which an LNG terminal is located may, after the terminal is operational, conduct safety inspections in conformance with Federal regulations and guidelines with respect to the LNG terminal upon written notice to the Commission. The State commission may notify the Commission of any alleged safety violations. The Commission shall transmit information regarding such allegations to the appropriate Federal agency, which shall take appropriate action and notify the State commission. > > > ### “(e) > > > ####
(1)> > In any order authorizing an LNG terminal the Commission shall require the LNG terminal operator to develop an Emergency Response Plan. The Emergency Response Plan shall be prepared in consultation with the United States Coast Guard and State and local agencies and be approved by the Commission prior to any final approval to begin construction. The Plan shall include a cost-sharing plan. > > > #### “(2) > > A cost-sharing plan developed under paragraph
(1)shall include a description of any direct cost reimbursements that the applicant agrees to provide to any State and local agencies with responsibility for security and safety— > > > ##### “(A) > > at the LNG terminal; and > > > ##### “(B) > > in proximity to vessels that serve the facility.” > .
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Sec. 311
EXPORTATION OR IMPORTATION OF NATURAL GAS
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