Statement of Ed Finklea to the Oregon House Sustainability and Economic Development Committee

Submitted April 16, 2009

 
My name is Ed Finklea. I am Executive Director of Energy Action Northwest, the labor and industry coalition for responsible energy policy. Energy Action opposes HB 2015 because it would create unnecessary hurdles to the development of a liquefied natural gas (LNG) terminal in Oregon. Current federal and Oregon state laws already require that LNG terminals meet all necessary environmental standards, protect fisheries, and safeguard Oregon’s air and water quality. Our coalition urges you to vote against HB 2015.

Under current law, the State of Oregon already has an indispensable role in the LNG permitting process. The Department of Environmental Quality and the Division of State Lands acting pursuant to Coastal Zone Management laws must act on permits for an LNG terminal to operate on the Oregon Coast.

HB 2015 would put Oregon’s Department of Energy in the position of attempting to usurp the role of the federal government in certificating an LNG terminal. The only certainty that would follow from enacting HB 2015 is that years of litigation would result. Under federal law, the State of Oregon cannot replace the Federal Energy Regulatory Commission’s role in certificating an LNG terminal.

I note that litigation is already pending in the federal Ninth Circuit Court of Appeals regarding the proper role of federal and state agencies in the permitting process. HB 2015 is unnecessary given the already pending federal litigation. The Fourth Circuit Court of Appeals and the DC Circuit Court of Appeals have already ruled in favor of federal pre-emption in state appeals of other LNG facilities in Maryland and Delaware.

Most importantly, Oregon cannot afford any legislative attempt to delay or block the development of an LNG terminal and natural gas pipelines. New natural gas infrastructure is crucial to achieving Oregon’s vision of a renewable energy future and is needed to heat homes, power businesses, and generate electricity. The use of clean natural gas can and should be the “blue bridge to a green future” for Oregon. As our state and nation address climate change, we need greater access to natural gas because it is the bridge fuel needed to reduce CO2 emissions.

Finally, HB 2015 would delay needed energy infrastructure development at a time when private investment is sorely needed and Oregon’s unemployment rate is at an historic 12.1 percent. Natural gas infrastructure projects would bring private investment to our state without tax breaks or public subsidies. One LNG terminal and one pipeline project alone would result in more than $1.5 billion in private investment. Two such projects would be a shot in the arm to many Oregon communities and create approximately 1,000 family-wage construction jobs that would last for several years. And, over the long-term, communities would also gain permanent jobs and a stable source of tax revenue from these project.

Energy Action believes that Oregon needs to responsibly develop new energy infrastructure, including natural gas pipelines, transmission lines and at least one LNG terminal. HB 2015 is not needed in order to ensure that an LNG terminal is responsibly permitted. Current law is doing the job. Our labor and business coalition urges you to oppose HB 2015.