BHPB’s proposed offshore liquefied natural gas (LNG) terminal, Cabrillo Port, will be allowed to release over 260 tons of smog-producing emissions each year, upwind of nearby Malibu and Los Angeles.

The US Environmental Protection Agency (EPA) has allowed the terminal to operate without restriction as they have officially located it in the pollution-free Channel Island zone where it will not hit smog quota levels.

Environmental groups and local government are outraged at the decision as the terminal will be located more than 40 kilometres from the nearest Channel Island and only 23 kilometres from Ventura County where it would come under strict air pollution regulations.

“It’s amazing to me that the Federal Government would give special treatment to a foreign company and seemingly forget the interests of the people of Malibu and Oxnard,” said Malibu mayor Andy Stern.

“It’s just another example of outrageous behaviour by the US Government.”

The EPA has responded by saying BHP has agreed to introduce an LNG tanker fleet that will substantially reduce emissions over old bunker oil-fuelled versions and will reduce impurities in its imported Australian gas to prevent pollution.

“Our company has been working closely with the EPA who governs this process,” said BHP in a statement.

“The decisions are the EPA’s to make and we would defer to the EPA to comment on the process and we will do all we can to cooperate with them. We believe we have satisfied all their data requests and the permit process is continuing.”

The terminal project is currently on hold while BHP is quizzed by the Coast Guard and the California State Lands Commission over environmental, terrorism-related and operational concerns. Environmental groups and local bodies have said they will lobby extensively against the plant during the deliberation.