BHP Billiton cannot appeal the project, but it could file a lawsuit. The Coastal Commission will vote on the proposed LNG facility at its meeting on Thursday.
By Jonathan Friedman / Assistant Editor
To the delight and applause of a crowd of more than 500 people, the California State Lands Commission voted 2-1 Monday night to reject Australia energy giant BHP Billiton’s proposal to build a liquefied natural gas terminal 14 miles off the Malibu coast.
The commissioners voting against the project, Lt. Gov. John Garamendi and State Controller John Chiang, disagreed with their own staff’s report that California’s need for LNG outweighed the potential dangers of the project, which included air pollution and possible terrorist attacks or human-error disasters.
“I’m concerned that the people who live here will bear the brunt of the impacts and the [poor] air quality,” said Chiang, speaking about the residents of both Malibu and Oxnard.
Garamendi, who said that some of the information about California’s energy needs in the project’s environmental impact report was old, added that he did not believe California was in desperate need of natural gas at the moment, despite BHP Billiton officials and the commission staff saying otherwise.
“There is enough time in the future for this entire LNG issue to be analyzed with up-to-date data,” said Garamendi, who also spoke out against the project’s EIR mentioning alternatives to the project but then discounting them.
The lone vote in favor of the project came from Anne Sheehan, who sat on the panel as a representative of state Finance Director Michael Genest, a member of Gov. Arnold Schwarzenegger’s Cabinet.
“We are running out of natural gas supplies,” Sheehan said. “We are going to need natural gas. I do see this project as a bridge… We have got to move forward.”
The Lands Commission vote was specifically to consider the project’s EIR and BHP Billiton’s application for a 30-year lease of two 24-inch pipelines that would transport the gas from the terminal, dubbed Cabrillo Port, to the Oxnard shore. With the panel’s rejection, the company will have a difficult time pursuing its plan. The Lands Commission decision cannot be appealed, although the company could file a lawsuit.
BHP Billiton released a statement Tuesday that gave little insight into what its next move might be.
“For the last four years, BHP Billiton has been open and committed to working side-by-side with Californians through demanding environmental reviews and vigorous public scrutiny,” said Renee Klimczak, president of the company’s division in charge of the project, in the statement. “BHP Billiton is committed to the values and environmental ethics that distinguish this state and believe strongly in California’s view of the future and mission to limit carbon emissions that pollute the air. We’re disappointed in the decisions by the State Lands Commission last night. We’re evaluating our options and next steps.”
Despite the project’s rejection by a state commission that must approve the project for it to become a reality, the proposal will still go before the California Coastal Commission on Thursday as planned. The Coastal Commission will consider at its meeting in Santa Barbara whether the project satisfies state and federal coastal protection laws. The Coastal Commission staff has recommended a “no” vote.
Gov. Arnold Schwarzenegger also has veto power over the project, a power he might not need to use if BHP Billiton chooses not to sue and the Lands Commission ruling stands. However, Schwarzenegger released a statement late Monday night stating that his office would still be studying the project during the 45-day review period that began after last Wednesday’s U.S. Coast Guard hearing.
“It would be inappropriate for me to take a position on any application before the review process is complete, but I do believe that liquefied natural gas should be a part of California’s energy portfolio,” Schwarzenegger wrote. “Natural gas is the cleanest-burning fossil fuel and an LNG facility to serve our state would make California less vulnerable to variations in supply and price.”
Louis Mauro, the governor’s chief deputy legal affairs secretary, released an additional statement on Tuesday, “Because the decisions by the State Lands Commission and the California Coastal Commission may be subject to legal challenge and review, and may not be final, the governor will continue his review of the application for a federal license. If the governor fails to communicate a decision within 45 days [of the Coast Guard hearing], he will be deemed to have approved the project. His continuing review will ensure that he can take appropriate steps to protect the environment and the people of California.”
A Schwarzenegger spokesperson declined to comment on whether an assistant to one of the governor’s Cabinet members voting in favor of the project was an indication that Schwarzenegger supported it.
Approximately 300 people were at the hearing Monday when it began at 10 a.m. The crowd swelled to more than 1,000 by 5 p.m., with many young people bused in from around the area. The building could not accommodate all of them, and many stood outside listening to the hearing through a loudspeaker. The mostly anti-BHP Billiton crowd wore T-shirts and held signs opposing the project.
In the mid-afternoon during the hearing, a rally took place outside, which included such speakers as Assemblymember Julia Brownley and Malibu resident Keely Shaye Brosnan, who, with her actor husband Pierce, has been a leading vocal opponent of the project. She disputed BHP Billiton’s claim that it was bringing a clean, safe energy source to the area.
“The only thing green about this project is the billions of dollars BHP will be getting,” Brosnan said to the roaring crowd.
Following the vote, Brosnan told The Malibu Times she had come to the hearing not knowing what to expect, and was delighted by the outcome.
“Lt. Gov. Garamendi [who chaired the meeting] handled this entire process so well and with so much sensitivity,” Brosnan said.
The 12-hour hearing was only interrupted by a 45-minute lunch break and a few 10-minute breaks throughout the day. More than 200 speakers commented on the project, most of them in opposition. The few supporters were mostly local business groups from Ventura and skeptics of the alleged dangers.
“I don’t buy the hype,” one proponent said. “This is a few Malibu residents who fear their ocean views will be harmed.”
In addition to the state agencies and the governor having a say in the project, U.S. Maritime Administrator Sean Connaughton also is involved in the approval process. He has 90 days from the U.S. Coast Guard hearing to make a decision. However, even if he approves the project, BHP Billliton will not be able to use the two 24-inch pipes to bring the natural gas to land unless it can somehow overturn Monday’s ruling.