Governor says final approval on offshore LNG project is his

Governor says final approval on offshore LNG project is his California Gov. Arnold Schwarzenegger Tuesday suggested he may be willing and able to circumvent a State Lands Commission vote that effectively stopped an $800 million project to build a liquefied natural gas terminal off the shore of Malibu.
   In a 2-1 vote Monday, the State Lands Commission refused to certify an environmental impact report (EIR) on the LNG project, and rejected issuing a lease needed for a critical pipeline in the project.
   'Despite the action taken today by the State Lands Commission,' Schwarzenegger said, 'my office, pursuant to federal law, is using the allotted 45-day review period to make sure that the project meets strict standards of public and environmental safety.”
   The project, under development by Australian energy giant BHP Billiton for more than four years, proposed to build a regasification terminal 14 miles offshore of Ventura County that would transform imported LNG back into natural gas and pump the gas via underwater pipelines into the state’s onshore gas pipeline system.
   The permit denied Monday effectively prevents the building of the pipelines connecting any terminal to the shore.
   Construction of the terminal itself also requires an approved EIR, which the commission also rejected Monday.
   While the governor said it was inappropriate for him to take a position on any application before the review process is complete, and despite the apparent finality of the commission vote on the issue, Schwarzenegger described his ultimate role in the process as 'decision making.'
   Louis Mauro, the governor's Chief Deputy Legal Affairs Secretary, said in a statement Tuesday that the federal permit required to build such a terminal requires the governor's approval. If the governor does not communicate his position on the project within 45 days of the last federal hearing on the project, approval is presumed under the guiding federal statute.
   Under the applicable Deepwater Port Act, Mauro said, Schwarzenegger can choose to voice his approval, approval with conditions, or disapproval with the project to the federal government no later than May 21.
   “The State Lands Commission and the California Coastal Commission are responsible for reviewing different and distinct aspects of the proposed project pursuant to different laws,' Mauro said.
   “Because the decisions by the State Lands Commission and the California Coastal Commission may be subject to legal challenge and review, and may not be final, the governor will continue his review of the application for a federal license. If the governor fails to communicate a decision within 45 days, he will be deemed to have approved the project.”
   Neither Schwarzenegger nor Mauro explained if the project could actually move forward having only the required federal permit and not the required state permits.