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June 21, 2005

Dear Chairman Domenici and Ranking Member Bingaman:

On behalf of the National Governors Association, I write to ask you to support the Feinstein/Snowe/Reed/Sessions amendment to the Energy Policy Act of 2005 on the siting of liquefied natural gas (LNG) facilities. As stewards of state resources, governors must have the authority to determine what is in the best interest of their state. This modification recognizes the critical role governors play within their states, as well as within a national energy policy, while avoiding an unnecessary pre-emption of state authority.

Governors recognize the importance of a comprehensive energy policy and support the promotion of a diverse and reliable portfolio of energy sources. However, any national energy policy must also recognize the authority of states in decision-making and not allow for the federal pre-emption of that authority. This policy extends to the siting of LNG facilities on state land or in state waters. Given the impact any proposed energy project can have on state and local resources, economy and infrastructure, governors must have the ability to review those impacts and approve or reject LNG projects that fall under state jurisdiction.

The bipartisan amendment offered by Senators Feinstein, Snowe, Reed and Sessions would require gubernatorial approval of any application regarding the siting of LNG facilities located onshore or in state waters, thus providing concurrent jurisdiction over these projects. This is the same authority granted to governors under the Deepwater Ports Act of 1974 for offshore projects and it is reasonable to request the same authority for projects that could have an even greater impact on states. Therefore, the governors urge you to support the amendment in an effort to reach a fair compromise that retains state authority while promoting a diverse national energy policy.

Governors commend both of you for your leadership in the effort to enact a new national energy policy and look forward to working with you as the legislation continues to move through Congress.

Sincerely,

Raymond C. Scheppach

cc: Members of the United States Senate