BILL ANALYSIS
SB 426
Page 1
SENATE THIRD READING
SB 426 (Simitian)
As Amended August 24, 2006
Majority vote
SENATE VOTE : 24-14
UTILITIES & COMMERCE 5-5 NATURAL
RESOURCES 7-2
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|Ayes:|Levine, De La Torre, |Ayes:|Hancock, Ruskin, Laird, |
| |Jerome Horton, Montanez, | |Nava, Saldana, Wolk, |
| |Ridley-Thomas | |Lieber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bogh, Baca, Blakeslee, |Nays:|La Malfa, Harmon |
| |Keene, Wyland | | |
| | | | |
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APPROPRIATIONS 12-4
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|Ayes:|Chu, Bass, Berg, | | |
| |Karnette, Klehs, Leno, | | |
| |Nation, Oropeza, Laird, | | |
| |Saldana, Yee, Mullin | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Sharon Runner, Emmerson, | | |
| |Nakanishi, Walters | | |
| | | | |
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SUMMARY : Requires the California Energy Commission (CEC) to
evaluate and rank every proposed liquefied natural gas (LNG)
terminal and directs the Governor to disapprove an application for
a license to construct and operate an LNG terminal if the project
is not ranked one of the two highest ranked sites.
EXISTING LAW: Under the federal Deepwater Port Act of 1974,
precludes the U.S. Secretary of Transportation from issuing a
license for the construction and operation of an off-shore natural
gas structure in federal waters without the approval of the
Governor of each adjacent coastal state, and can condition the
license on making the project consistent with state environmental,
land-use, water, and coastal management programs.
SB 426
Page 2
FISCAL EFFECT : According to the Assembly Appropriations Committee
analysis, for the initial assessment and ranking in 2006, CEC
estimates $250,000 for 3.0 personnel years (PYs) and up to $1
million for consulting contracts. For evaluation of subsequent LNG
proposals, CEC estimates $85,000 for 1.0 PY and about $100,000 for
consulting contracts.
COMMENTS : Current law permits the Governor to approve or
disapprove an off-shore LNG facility using discretion. This bill
requires the Governor to disapprove an application if it meets
specific criteria. There are currently three active proposals to
build LNG terminals off the California coast. One of the
developers, BHP Billiton, is in the final phases of the licensing
process and has completed its environmental impact report for the
Cabrillo Deepwater Port project off of Ventura County. The project
proposal must be heard and approved by the California Coastal
Commission and the State Lands Commission prior to being submitted
to the Governor for final approval.
Analysis Prepared by : Gina Adams / U. & C. / 319-2083FN: 0016441