The chairman of the Federal Energy Regulatory Commission, which has siting authority of liquefied natural gas terminals, is stepping down.

Joseph T. Kelliher announced his decision in a letter to President George Bush posted to the FERC Web site. His last day is Jan. 20, the day President-elect Barack Obama takes office.

Kelliher will remain on the commission, though he plans to recuse himself from future FERC business, the letter said.

Commission spokeswoman Mary O’Driscoll said the FERC has members recuse themselves when they are seeking employment from companies or law firms representing companies with business before the commission. They can either recuse themselves case by case or from all cases, though O’Driscoll wasn’t sure which option Kelliher would take.

“It’s too early to say what the chairman will do,” she said.

Kelliher did not explain his reason for stepping aside with three years left to his five-year term.

Several anti-LNG groups applauded Kelliher’s leaving.

“This a great sign of things to come,” said Jody McCaffree, leader of local opposition against the LNG terminal proposed for Coos Bay by Jordan Cove. “Obama now has an opportunity to appoint someone who understands how to create a clean power grid appropriate for our times.”

 O’Driscoll said there aren’t any plans at this point on selecting a new chairman.

“At this point, it’s up to the Obama administration,” she said.

Obama could chose to name one of the four remaining commissioners as chairman or appoint someone new. The first option may be more likely since appointing a new commissioner would require a Senate confirmation, whereas naming an existing member can be done with an executive order.

McCaffree said she wasn’t sure if the change in chairmen would influence Jordan Cove’s prospects, though she noted the top position has a lot of sway over the rest of the board.

She said she favored the appointment of Jon Wellinghoff, who voted against the proposed LNG terminal on the Columbia River.

“If they appointed Wellinghoff, it might influence the others,” in the Jordan Cove vote, McCaffree said.

 Jordan Cove Project Manager Bob Braddock said he doesn’t expect to see any big changes. He noted the commission usually changes leadership with a new president, though partisanship doesn’t come into the equation.

“Historically, FERC doesn’t tend to be as political as other groups in the administration,” he said. “If they see things are in order, it’s OK. If they see things that do not conform to the rules they have established that’s the critical thing.”

Kelliher took over as chairman in July 2005, shortly before Congress enacted the Energy Policy Act that gave FERC its infamous siting authority, taking away state siting control.

The lameduck chairman expressed appreciation at the opportunity to serve in his capacity following that legislation.

“This law gave FERC better tools to discharge its historic missions of guarding the consumer from exploitation and promoting the development of a robust energy infrastructure, as well as giving the agency new missions on grid reliability and enforcement,” he wrote in his letter.

According to his Web site’s biography, Kelliher severed as senior policy advisor to the U.S. Secretary of Energy and attorney to the House Commerce Committee. He also held positions with private corporations, trade associations and law firms prior to his FERC appointment.

Assuming Kelliher resigns from his position before his term ends in 2012, Obama will have a chance to give the FERC a Democratic three-person majority. Whether that changes the fate of the Jordan Cove proposal is anyone’s guess. The Bradwood Landing project proposed for the Columbia River passed muster with the FERC in September 2008 on a 4-1 vote, including support from Democrat Suedeen Kelly.