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Commission Watch

CPUC questioned historic oversight authority.
Fortnightly Magazine - June 2004

and price relief for consumers. And the environmental benefits of LNG should not be forgotten. The SES project, for example, will also offer LNG in its liquid state, which means the product can be used immediately as a clean-burning vehicle fuel. California could see a pronounced environmental benefit from this if, for example, large diesel vehicles that operate in the Los Angeles basin converted to LNG, thus reducing both NO X and particulate emissions in the region.

The Sound Energy Solutions declaratory order clarified an important jurisdictional issue at a time when the United States is facing dwindling supplies of natural gas from traditional sources. While the order may ultimately be subject to judicial review, expeditious review and confirmation by the courts of the declaratory order may facilitate the development of new infrastructure and the expansion of existing LNG terminals.


  1. 495 F.2d 1057, 1064 (D.C. Cir. 1974), cert. denied, 419 U.S. 834 (1974).
  2. Dynegy LNG Production Terminal L.P., 97 FERC 61, 231 (2001).
  3. Hackberry LNG Terminal, L.L.C., 101 FERC 61,294 (2002).
  4. "Balancing Natural Gas Policy - Fueling the Demands of a Growing Economy," (Sept. 2003), available at, or by contacting NPC, 1625 K Street, Suite 600, Washington, D.C. 20006.


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We believe the NEPA review, in conjunction with the actions of the other Federal agencies as outlined in the recent agreement, will preclude the authorization of all projects that present imprudent risks to health and safety or are inconsistent with the public interest.