Regulatory Compliance for Marine LNG Import Terminals in California

Abstract

California’s projected natural gas demand, coupled with the reality of moribund supply basins, has prompted plans for the import of liquefied natural gas (LNG). Several project applications for the siting, design, construction, and operation of onshore and offshore LNG import terminals have recently undergone a rigorous federal and state regulatory appraisal. The environmental, public safety, and security mandates encoded in current legal statutes were the dominant compliance issues. Addressing compliance required comprehensive risk assessment with extensive modeling of the potentially perilous scenarios, including natural and malevolent intentional hazards for LNG tanker movements and marine terminal operations. The objective was to evaluate the effect of adverse consequences on public and property not associated with LNG terminal. On the basis of this evaluation experience, the principal federal and state laws, regulations, standards and concerns, and jurisdictional and technical conflicts relevant to environmental, public safety, and security compliance for a marine LNG import terminal are outlined. This will benefit others planning similar ventures in California or elsewhere.