TITLE
Recommendation to direct the Port of Long Beach to terminate all negotiations, environmental reviews and safety assessments for a
"proposed" liquefied natural gas receiving terminal and regasification facility, or continue the "non-binding" discussions, per the Memorandum of Understanding of May 13, 2003, regarding the future long-term natural gas contract for the benefits of the citizens of Long Beach.
DISCUSSION
The Port of Long Beach (Port), Sound Energy Solutions (SES), and Long
Beach Energy (LBE) entered into a Memorandum of Understanding (MOU)
regarding a proposed liquefied natural gas receiving terminal and regasification
facility contingent upon SES conducting certain environmental, engineering and
economic feasibility studies, obtaining permits and approvals from the Federal
Energy Regulatory Commission (FERC), the Port and other governmental
agencies. The MOU states, "In order to obtain such permits and approvals, SES
will be required to submit environmental and engineering studies and other
reports and materials to such agencies." The MOU, the concurrent EIR/EIS and
safety assessments must be completed as part of the project approval process.
City Council actions regarding the proposed LNG facility has been limited
to authorizing LBE to execute this MOU for the purpose of discussing an
"arrangement for the benefit of the citizens of Long Beach" and the City. The
Council has also taken advocacy positions regarding pending Federal energy
policy legislation to preserve State and local jurisdiction regarding siting and
permitting authority. Whether FERC or the California Public Utilities Commission
(CPUC) retains siting and permitting authority, the decision to locate the facility
and negotiations on terms of the lease remains under the authority of the Port.
Furthermore, under the Port's MOU, "SES will have the exclusive right to pursue
the development of an LNG receiving terminal in the Port of Long Beach until the
earlier of the time that (i) ...
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