I 
109TH CONGRESS 
1ST SESSION 
H. R. 359 
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 
JANUARY 25, 2005 
Mr. TERRY (for himself, Mr. GENE GREEN of Texas, Mr. NUNES, Mr. 
ENGLISH of Pennsylvania, Mr. WILSON of South Carolina, Mr. BART-
LETT of Maryland, Mr. GONZALEZ, and Mr. LATOURETTE) 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, con-
struction, expansion, and operation of liquefied natural 
gas import terminals, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Liquefied Natural Gas 
Act of 2005’’.
SEC. 2. TERMS AND CONDITIONS FOR LIQUEFIED NATURAL 
GAS IMPORT TERMINALS. 
(a) EXPORTATION OR IMPORTATION OF NATURAL 
GAS.—Section 3 of the Natural Gas Act (15 U.S.C. 717b) 
is amended to read as follows: 
‘‘EXPORTATION OR IMPORTATION OF NATURAL GAS 
‘‘SEC. 3. (a) AUTHORIZATION ORDER.—No person 
shall export any natural gas from the United States to 
a foreign country or import any natural gas from a foreign 
country without first having secured an order of the Sec-
retary of Energy authorizing such person to do so. The 
Secretary shall issue such order upon application, unless, 
after opportunity for hearing, the Secretary finds that the 
proposed exportation or importation will not be consistent 
with the public interest. The Secretary may by order grant 
such application, in whole or in part, with such modifica-
tion and upon such terms and conditions as the Secretary 
may find necessary or appropriate, and may from time to 
time, after opportunity for hearing, and for good cause 
shown, make such supplemental order as the Secretary 
may find necessary or appropriate. 
‘‘(b) FREE TRADE AGREEMENTS AND LIQUEFIED 
NATURAL GAS.—With respect to natural gas which is im-
ported into the United States from a nation with which 
there is in effect a free trade agreement requiring national
treatment for trade in natural gas, and with respect to 
liquefied natural gas— 
‘‘(1) the importation of such natural gas shall 
be treated as a ‘first sale’ within the meaning of sec-
tion 2(21) of the Natural Gas Policy Act of 1978; 
and 
‘‘(2) the Secretary of Energy shall not, on the 
basis of national origin, treat any such imported 
natural gas on an unjust, unreasonable, unduly dis-
criminatory, or preferential basis. 
‘‘(c) APPLICATION AND APPROVAL PROCESS.—For 
purposes of subsection (a), the importation of the natural 
gas referred to in subsection (b), or the exportation of nat-
ural gas to a nation with which there is in effect a free 
trade agreement requiring national treatment for trade in 
natural gas, shall be deemed to be consistent with the pub-
lic interest, and applications for such importation or ex-
portation shall be granted without modification or delay. 
‘‘(d) AUTHORIZATION FOR LIQUEFIED NATURAL GAS 
IMPORT TERMINALS.—(1) No person shall site, construct, 
expand, or operate a liquefied natural gas import terminal 
without first having secured an order of the Federal En-
ergy Regulatory Commission authorizing such person to 
do so. The Federal Energy Regulatory Commission shall 
issue such order upon application, unless, after oppor-
tunity for hearing, it finds that the proposed siting, con-
struction, expansion, or operation will not be consistent 
with the public interest. The Federal Energy Regulatory 
Commission may by its order grant such application, in 
whole or in part, with such modification and upon such 
terms and conditions as the Federal Energy Regulatory 
Commission may find necessary or appropriate. 
‘‘(2) An order issued pursuant to paragraph (1) shall 
not be conditioned on— 
‘‘(A) a requirement that the liquefied natural 
gas import terminal offer service to persons other 
than the person securing the order; 
‘‘(B) any regulation of the liquefied natural gas 
import terminal’s rates, charges, terms, or condi-
tions of service; or 
‘‘(C) a requirement to file with the Federal En-
ergy Regulatory Commission schedules or contracts 
related to the liquefied natural gas import terminal’s 
rates, charges, terms, or conditions of service. 
‘‘(3) Except as otherwise provided by Federal law, no 
State or local government may require a permit, license, 
concurrence, approval, certificate, or other form of author-
ization with respect to the siting, construction, expansion, 
or operation of a liquefied natural gas import terminal.
‘‘(4) Any decision made or action taken by a Federal 
administrative agency or officer (or State administrative 
agency or officer acting under delegated Federal author-
ity) with respect to the siting, construction, expansion, or 
operation of a liquefied natural gas import terminal must 
be consistent with any authorization provided by the Fed-
eral Energy Regulatory Commission pursuant to this sub-
section with respect to the liquefied natural gas import 
terminal, and shall not prohibit or unreasonably delay the 
siting, construction, expansion, or operation. 
‘‘(5) Nothing in this subsection shall be construed to 
repeal or modify the authority under this section to au-
thorize a person to import or export natural gas or to au-
thorize facilities for the import or export of natural gas 
other than liquefied natural gas import terminals. 
‘‘(e) SCHEDULE AND ADMINISTRATIVE RECORD.— 
(1) The Federal Energy Regulatory Commission shall ap-
prove or deny any application to site, construct, expand, 
or operate a liquefied natural gas import terminal under 
subsection (d) not later than 1 year after the application 
is complete. 
‘‘(2) With respect to each application under sub-
section (d), the Federal Energy Regulatory Commission 
shall establish a schedule for all Federal and State admin-
istrative proceedings commenced under authority of Fed-
eral law, the completion of which is required before a per-
son may site, construct, expand, or operate the liquefied 
natural gas import terminal, in order to ensure expeditious 
progress toward such siting, construction, expansion, or 
operation. The schedule shall also include all Federal and 
State administrative proceedings authorized by Federal 
law for the siting, construction, expansion, and operation 
of natural gas pipelines and facilities related to the trans-
portation of liquefied natural gas or natural gas from the 
liquefied natural gas import terminal. In establishing the 
schedule, the Federal Energy Regulatory Commission 
shall, to the extent practicable, accommodate the applica-
ble schedules established by Federal law for such pro-
ceedings. If a Federal or State administrative agency or 
officer fails to complete a proceeding in accordance with 
the schedule established by the Federal Energy Regulatory 
Commission, the action of the Federal or State adminis-
trative agency or officer that is required before a person 
may site, construct, expand, or operate the liquefied nat-
ural gas import terminal shall be conclusively presumed 
and the siting, construction, expansion, or operation shall 
proceed without condition. 
‘‘(3) With respect to the siting, construction, expan-
sion, or operation of a liquefied natural gas import ter-
minal, the Federal Energy Regulatory Commission shall