I 

108TH CONGRESS 

2D SESSION H. R. 4413

To require certain terms and conditions for the siting, construction, expansion, 

and operation of liquefied natural gas import terminals, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2004

Mr. TERRY (for himself, Mr. GREEN of Texas, Mr. SULLIVAN, and Mr. 

NUNES) introduced the following bill; which was referred to the Committee on Energy and Commerce 

A BILL

To require certain terms and conditions for the siting, construction, expansion, and operation of liquefied natural 

gas import terminals, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Liquefied Natural Gas 

5 Import Terminal Development Act of 2004’’. 
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1 SEC. 2. TERMS AND CONDITIONS FOR LIQUEFIED NATURAL 

2 GAS IMPORT TERMINALS. 

3 (a) EXPORTATION OR IMPORTATION OF NATURAL

4 GAS.—Section 3 of the Natural Gas Act (15 U.S.C. 717b) 

5 is amended to read as follows: 

6 ‘‘EXPORTATION OR IMPORTATION OF NATURAL GAS

7 ‘‘SEC. 3. (a) AUTHORIZATION ORDER.—No person 

8 shall export any natural gas from the United States to 

9 a foreign country or import any natural gas from a foreign 

10 country without first having secured an order of the Sec11 retary of Energy authorizing such person to do so. The 

12 Secretary shall issue such order upon application, unless, 

13 after opportunity for hearing, the Secretary finds that the 

14 proposed exportation or importation will not be consistent 

15 with the public interest. The Secretary may by order grant 

16 such application, in whole or in part, with such modifica17 tion and upon such terms and conditions as the Secretary 

18 may find necessary or appropriate, and may from time to 

19 time, after opportunity for hearing, and for good cause 

20 shown, make such supplemental order as the Secretary 

21 may find necessary or appropriate. 

22 ‘‘(b) FREE TRADE AGREEMENTS AND LIQUEFIED

23 NATURAL GAS.—With respect to natural gas which is im24 ported into the United States from a nation with which 

25 there is in effect a free trade agreement requiring national 
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1 treatment for trade in natural gas, and with respect to 

2 liquefied natural gas—

3 ‘‘(1) the importation of such natural gas shall 

4 be treated as a ‘first sale’ within the meaning of sec5 tion 2(21) of the Natural Gas Policy Act of 1978; 

6 and 

7 ‘‘(2) the Secretary of Energy shall not, on the 

8 basis of national origin, treat any such imported 

9 natural gas on an unjust, unreasonable, unduly dis10 criminatory, or preferential basis. 

11 ‘‘(c) APPLICATION AND APPROVAL PROCESS.—For 

12 purposes of subsection (a), the importation of the natural 

13 gas referred to in subsection (b), or the exportation of nat14 ural gas to a nation with which there is in effect a free 

15 trade agreement requiring national treatment for trade in 

16 natural gas, shall be deemed to be consistent with the pub17 lic interest, and applications for such importation or ex18 portation shall be granted without modification or delay. 

19 ‘‘(d) AUTHORIZATION FOR LIQUEFIED NATURAL GAS

20 IMPORT TERMINALS.—(1) No person shall site, construct, 

21 expand, or operate a liquefied natural gas import terminal 

22 without first having secured an order of the Federal En23 ergy Regulatory Commission authorizing such person to 

24 do so. The Federal Energy Regulatory Commission shall 

25 issue such order upon application, unless, after oppor-
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1 tunity for hearing, it finds that the proposed siting, con2 struction, expansion, or operation will not be consistent 

3 with the public interest. The Federal Energy Regulatory 

4 Commission may by its order grant such application, in 

5 whole or in part, with such modification and upon such 

6 terms and conditions as the Federal Energy Regulatory 

7 Commission may find necessary or appropriate. 

8 ‘‘(2) An order issued pursuant to paragraph (1) shall 

9 not be conditioned on—

10 ‘‘(A) a requirement that the liquefied natural 

11 gas import terminal offer service to persons other 

12 than the person securing the order; 

13 ‘‘(B) any regulation of the liquefied natural gas 

14 import terminal’s rates, charges, terms, or condi15 tions of service; or 

16 ‘‘(C) a requirement to file with the Federal En17 ergy Regulatory Commission schedules or contracts 

18 related to the liquefied natural gas import terminal’s 

19 rates, charges, terms, or conditions of service. 

20 ‘‘(3) Except as otherwise provided by Federal law, no 

21 State or local government may require a permit, license, 

22 concurrence, approval, certificate, or other form of author23 ization with respect to the siting, construction, expansion, 

24 or operation of a liquefied natural gas import terminal. 
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1 ‘‘(4) Any decision made or action taken by a Federal 

2 administrative agency or officer (or State administrative 

3 agency or officer acting under delegated Federal author4 ity) with respect to the siting, construction, expansion, or 

5 operation of a liquefied natural gas import terminal must 

6 be consistent with any authorization provided by the Fed7 eral Energy Regulatory Commission pursuant to this sub8 section with respect to the liquefied natural gas import 

9 terminal, and shall not prohibit or unreasonably delay the 

10 siting, construction, expansion, or operation. 

11 ‘‘(5) Nothing in this subsection shall be construed to 

12 repeal or modify the authority under this section to au13 thorize a person to import or export natural gas or to au14 thorize facilities for the import or export of natural gas 

15 other than liquefied natural gas import terminals. 

16 ‘‘(e) SCHEDULE AND ADMINISTRATIVE RECORD.—

17 (1) The Federal Energy Regulatory Commission shall ap18 prove or deny any application to site, construct, expand, 

19 or operate a liquefied natural gas import terminal under 

20 subsection (d) not later than 1 year after the application 

21 is complete. 

22 ‘‘(2) With respect to each application under sub23 section (d), the Federal Energy Regulatory Commission 

24 shall establish a schedule for all Federal and State admin25 istrative proceedings commenced under authority of Fed-
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1 eral law, the completion of which is required before a per2 son may site, construct, expand, or operate the liquefied 

3 natural gas import terminal, in order to ensure expeditious 

4 progress toward such siting, construction, expansion, or 

5 operation. The schedule shall also include all Federal and 

6 State administrative proceedings authorized by Federal 

7 law for the siting, construction, expansion, and operation 

8 of natural gas pipelines and facilities related to the trans9 portation of liquefied natural gas or natural gas from the 

10 liquefied natural gas import terminal. In establishing the 

11 schedule, the Federal Energy Regulatory Commission 

12 shall, to the extent practicable, accommodate the applica13 ble schedules established by Federal law for such pro14 ceedings. If a Federal or State administrative agency or 

15 officer fails to complete a proceeding in accordance with 

16 the schedule established by the Federal Energy Regulatory 

17 Commission, the action of the Federal or State adminis18 trative agency or officer that is required before a person 

19 may site, construct, expand, or operate the liquefied nat20 ural gas import terminal shall be conclusively presumed 

21 and the siting, construction, expansion, or operation shall 

22 proceed without condition. 

23 ‘‘(3) With respect to the siting, construction, expan24 sion, or operation of a liquefied natural gas import ter25 minal, the Federal Energy Regulatory Commission shall 
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1 compile a single administrative record which shall consoli2 date the records of the proceedings referred to in para3 graph (2). 

4 ‘‘(4) Any Federal administrative proceeding that is 

5 an appeal or review of a decision made or action taken 

6 by a Federal administrative agency or officer (or State ad7 ministrative agency or officer acting under delegated Fed8 eral authority) with respect to the siting, construction, ex9 pansion, or operation of a liquefied natural gas import ter10 minal shall use as its exclusive record for all purposes the 

11 administrative record compiled by the Federal Energy 

12 Regulatory Commission under paragraph (3). 

13 ‘‘(f) JUDICIAL REVIEW.—(1) Except for review by 

14 the Supreme Court of the United States on writ of certio15 rari, the United States Court of Appeals for the District 

16 of Columbia Circuit shall have original and exclusive juris17 diction to hear and determine any civil action for review 

18 of a decision made or action taken by a Federal adminis19 trative agency or officer (or State administrative agency 

20 or officer acting under delegated Federal authority) with 

21 respect to the siting, construction, expansion, or operation 

22 of a liquefied natural gas import terminal. The civil action 

23 shall be filed not later than 60 days after the decision or 

24 action described in this paragraph. 
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1 ‘‘(2) If a civil action referred to in paragraph (1) is 

2 filed, the Federal Energy Regulatory Commission shall file 

3 in the United States Court of Appeals for the District of 

4 Columbia Circuit the single administrative record com5 piled under subsection (e)(3) with respect to the liquefied 

6 natural gas import terminal named in the civil action. 

7 ‘‘(g) LEAD AGENCY.—With respect to the siting, con8 struction, expansion, or operation of a liquefied natural 

9 gas import terminal, the Federal Energy Regulatory Com10 mission shall be the lead Federal agency for purposes of 

11 complying with the National Environmental Policy Act of 

12 1969 (42 U.S.C. 4321 et seq.).’’. 

13 (b) DEFINITION.—Section 2 of the Natural Gas Act 

14 (15 U.S.C. 717a) is amended by adding at the end the 

15 following new paragraph: 

16 ‘‘(11) ‘Liquefied natural gas import terminal’ 

17 includes all facilities located onshore or in State wa18 ters that are used to receive, unload, store, trans19 port, gasify, or process liquefied natural gas that is 

20 imported to the United States from a foreign coun21 try, but does not include the tankers used to deliver 

22 liquefied natural gas to such facilities.’’.

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