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DOCUMENT RESUM
06492 - [ B1987005]
Need To Improve Bequlatory Review Proces for Liquefied Natural
Gas Imports. ID-78-17; B-178205. July 14, 1978. 47 p. + 7
appendices (24 pp.) .
Report to the Conqress; by Elmer E. Staats, Ccoptrcilir General.
issue Area: Enerqy (1600) ; International Economic ai( Military
Programs (600).
Contact: International Div.
sudqet Function: Natural R-.sources, Environment, and Energy
(300); Natural Resources, Envirccuent, and Energy: Energy
(305) *
Orqanization Concerned: Department of Commerce; Department oi
Energy; Department of State.
Congressional Relevance: Hoiuse Committee on Interstate and
foreiqn Commerce; Senate Committee on Ene:gy and Natural
Resources,* Congress.
Authority: Fuels Transportation Safet. Aserdments Act of 1978;
H.R. 11622 (45th Conq.). Natural Gas Act ot 1938. Natural
G;as Pipeline -?~tty Act of 1968. Eeparkment of ELer~y
Organization Act. Deepwater Port Act cf 1974. H.F. C844
(95th Conq.).
The importation of liquefied natural gas is cne method
of dealing with the United States' dwirdling dcmestic supply of
natural gas. The overnmeatls uncertain approach toward
liquefied natural gas imuorts has resulted in a tife-consuming
regulatory review process. Findinqs/Ccnclusicns: Intensive
examination ot a propisal to import liquefied natural gas from
Indonesia to California showed that delays stes frc(.
inadequacies in the national policy cE imports; legislative
requireents; lack of established criteria and guidance; and
jurisdictional qaps, overlaps, and dihFutes between both Federal
agencies and Federal and State authorities. Raccamendations:
The Secretary of Energy should, in cccperation with ctber
Federal agencies, revise the policy statement for imported
natural qas to define clearly goals and oklectives for InForted
liquefied natural gas and establish cziteria as to what
constitutes excessive national dependency. In acting on this,
the Secretary should analyze the varicur alternative energy
sources or natural gas substitutes. If liquef~ed natural gas
imports are determined necessary to supplement U.S. gas
suppli s, the Secretary should reevaluate the existing
requla-ory process for liquefied natural gas import propcsals.
The Secretaries of State and Energy should consider the izos and
cons of a concerted effort by liquefied natural gas importing
nations to eftectively coordinate matters of mutual ccncern such
as pricing by exportinq countries. The Coagiess should require
the Secretary of Energy to report within a given time Leriod the
role liquefied nat'iral gas should play in satisfying U.S. energy
needs. This should be supported by a systematic anclysis of the](ViewImageLocal?handle=hein.gao/gaobaaxok0001&div=1&collection=&method=preview&ext=.png&size=3)