By H. JOSEF HEBERT, Associated Press Writer
WASHINGTON - A provision slipped with little notice into a massive spending bill may help the Federal Energy Regulatory Commission overcome local and state opposition in the approval of liquefied natural gas import terminals.
The commission already has asserted formally that it has final permitting authority over LNG terminals under a 1938 law regulating natural gas transport. But that authority is being challenged in a California case and may also be contested in connection with several projects in New England.
The language quietly tucked into a $388 billion spending bill just before Congress adjourned last month reasserts that FERC has "exclusive jurisdiction" over LNG permits and that the 1938 law "pre-empts" states on approving natural gas infrastructure "associated with interstate and foreign commerce."
While the provision is not legally binding because it is only advisory, some lawyers say it may help FERC argue in court that Congress fully intended the commission to have final rule over LNG sites.
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