Liquefied natural gas (LNG) historically has played a minor role in U.S. energy markets, but in reaction to rising natural gas prices, price volatility, and the possibility of domestic shortages, demand for LNG imports has increased significantly in recent years. To meet anticipated growth in LNG demand, new onshore and offshore LNG import terminals have been constructed or approved in United States coastal regions. More have been proposed. Because LNG (like other fossil fuels) is a hazardous liquid transported and stored in enormous quantities—often near populated areas—concerns exist about the federal government's role in addressing LNG safety in the terminal siting process. In addition, various energy policy proposals could impact the need for new LNG terminals by encouraging the development of alternative U.S. energy supplies and promoting conservation and efficiency. This report provides an overview of recent industry development of new LNG import terminals. The report summarizes LNG hazards and the industry's safety record. It discusses federal laws and regulations related to LNG terminal siting with a focus on the authorities of key federal agencies and safety provisions in the permitting of onshore facilities. The report reviews controversial safety issues in recent LNG siting proceedings, such as safety zones, marine hazards, hazard modeling, and remote siting. The report outlines policy issues related to LNG terminal safety, including the Federal Energy Regulatory Commission's (FERC's) LNG siting authority, regional LNG siting, "remote" siting requirements in federal regulations, state permitting requirements, terrorism, and other issues. LNG terminals directly affect the safety of communities in the states and congressional districts where they are sited, and may influence energy costs nationwide. Faced with an uncertain national need for greater LNG imports and persistent public concerns about LNG hazards, some in Congress have proposed changes to safety provisions in federal LNG siting regulation. Legislation proposed in the 110 th Congress addressed Coast Guard LNG resources, FERC's exclusive siting authority, state concurrence of federal LNG siting decisions, and agency coordination under the Coastal Zone Management Act, among other proposals. If Congress concludes that new LNG terminals as currently regulated will pose an unacceptable risk to public safety, Congress may consider additional LNG safety-related legislation, or may exercise its oversight authority in other ways to influence LNG terminal siting approval. Alternatively, Congress may consider other changes in U.S. energy policy legislation to reduce the nation's demand for natural gas or increase supplies of North American natural gas and, thus, the need for new LNG infrastructure. This report focuses broadly on industry and federal activities related to safety in LNG import terminal siting. For a more specific discussion of LNG security, see CRS Report RL32073, Liquefied Natural Gas (LNG) Infrastructure Security: Issues for Congress , by [author name scrubbed]. This report also deals primarily with those parts of LNG terminals which transfer, store, and process LNG prior to injection to natural gas pipelines for transmission off site. For more discussion of general natural gas or pipeline hazards, see CRS Report RL33347, Pipeline Safety and Security: Federal Programs , by [author name scrubbed]. Also, this report discusses mostly onshore facilities and near-shore shipping, since they pose the greatest public hazards. Offshore LNG terminal siting regulations are summarized in the Appendix . When natural gas is cooled to temperatures below minus 260° F it condenses into liquefied natural gas, or LNG. As a liquid, natural gas occupies only 1/600 th the volume of its gaseous state, so it is stored more effectively in a limited space and is more readily transported. A single tanker ship, for example, can carry huge quantities of LNG—enough to supply a single day's energy needs of over 10 million homes. When LNG is warmed it "regasifies" and can be used for the same purposes as conventional natural gas such as heating, cooking, and power generation. In 2009, LNG imports to the United States originated in Trinidad (54%), Egypt (34%), Norway (8%), and Nigeria (4%). In recent years, some LNG shipments have also come from Algeria, Qatar, Equatorial Guinea, Malaysia, Oman, Australia, and other countries. Brunei, Indonesia, Libya, and the United Arab Emirates also export LNG, and may be U.S. suppliers in the future. In addition to importing LNG to the lower 48 states, the United States exports Alaskan LNG to Japan. The United States has used LNG commercially since the 1940s. Initially, LNG facilities stored domestically produced natural gas to supplement pipeline supplies during times of high gas demand. In the 1970s, LNG imports began to supplement domestic production. Primarily because of low domestic gas prices, LNG imports stayed relatively small—accounting for only 1% of total U.S. gas consumption as late as 2002. In countries with limited domestic gas supplies, however, LNG imports grew dramatically over the same period. Japan, for example, imported 97% of its natural gas supply as LNG in 2002, more than 11 times as much LNG as the United States. South Korea, France, Spain, and Taiwan also became heavy LNG importers. Natural gas demand growth accelerated in the United States from the mid-1980s through 2000 due to environmental concerns about other energy sources, widespread building of natural gas-fired electricity generation, and low natural gas prices. Domestic gas supplies have not always kept up with growth in demand, however, so prices have become volatile. At the same time, international LNG costs have fallen since the 1970s because of increased supplies and more efficient production and transportation, making LNG more competitive with domestic natural gas. In 2003 testimony before Congress, the Federal Reserve Chairman called for a sharp increase in LNG imports to help avert a potential barrier to U.S. economic growth. According to the Chairman's testimony: "... high gas prices projected in the American distant futures market have made us a potential very large importer.... Access to world natural gas supplies will require a major expansion of LNG terminal import capacity." Likewise, FERC Commissioner Suedeen Kelly told industry representatives in 2006 that,"while LNG has made a marginal contribution to gas supply over the last 30 years, it is poised to make a major contribution in the future." Because burning natural gas produces only half as much carbon dioxide as burning coal, and also less carbon dioxide than vehicular fuels like gasoline, some also anticipate natural gas demand to grow as the preferred fuel in the near-term for power plants and motor vehicles under a national policy of carbon control. Recent increases in U.S. natural gas production from domestic shale deposits have complicated projections about LNG markets. Nonetheless, many analysts expect continued growth in the U.S. LNG imports over the long term. LNG tankers unload their cargo at dedicated marine terminals which store and regasify the LNG for distribution to domestic markets. Onshore terminals consist of docks, LNG handling equipment, storage tanks, and interconnections to regional gas transmission pipelines and electric power plants. Offshore terminals regasify and pump the LNG directly into offshore natural gas pipelines or may store LNG for later injection into offshore pipelines. There are seven active onshore LNG import terminals in the United States: Everett, Massachusetts; Lake Charles, Louisiana; Cove Point, Maryland; Elba Island, Georgia; Peñuelas, Puerto Rico; Freeport, Texas; and Sabine Pass, Louisiana. There are two active offshore import terminals, one located in the Gulf of Mexico and a second near Boston, Massachusetts. (There is also one export terminal in Kenai, Alaska.) In addition to these active terminals, some 25 LNG terminal proposals have been approved by regulators across North America to serve the U.S. market Figure 1 . A number of these proposals have been withdrawn, however, due to siting problems, financing problems, or other reasons. Developers have proposed another 8 U.S. terminals prior to filing formal siting applications. The safety hazards associated with LNG terminals have been debated for decades. A 1944 accident at one of the nation's first LNG facilities killed 128 people and initiated public fears about LNG hazards which persist today. Technology improvements and standards since the 1940s have made LNG facilities much safer, but serious hazards remain since LNG is inherently volatile and is usually shipped and stored in large quantities. A 2004 accident at Algeria's Skikda LNG terminal, which killed or injured over 100 workers, added to the ongoing controversy over LNG facility safety. Natural gas is combustible, so an uncontrolled release of LNG poses a hazard of fire or, in confined spaces, explosion. LNG also poses hazards because it is so cold. The likelihood and severity of catastrophic LNG events have been the subject of controversy. While questions remain about the credible impacts of specific LNG hazards, there appears to be consensus as to what the most serious hazards are. If LNG spills near an ignition source, evaporating gas will burn above the LNG pool. The resulting "pool fire" would spread as the LNG pool expanded away from its source and continued evaporating. A pool fire is intense, burning far more hotly and rapidly than oil or gasoline fires. It cannot be extinguished—all the LNG must be consumed before it goes out. Because an LNG pool fire is so hot, its thermal radiation may injure people and damage property a considerable distance from the fire itself. Many experts agree that a large pool fire, especially on water, is the most serious LNG hazard. If LNG spills but does not immediately ignite, the evaporating natural gas will form a vapor cloud that may drift some distance from the spill site.