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4.
Significance of the 2014 and 2015 LNG Export Studies
For the reasons discussed above, DOE/FE commissioned the 2014 EIA LNG Export
Study and the 2015 LNG Export Study, and invited the submission of responsive comments on
both Studies. DOE/FE has analyzed this material and determined that these two Studies provide
substantial support for granting Delfin’s Application. Specifically, the conclusion of the 2015
Study is that the United States will experience net economic benefits from issuance of
authorizations to export domestically produced LNG.
We have evaluated the public comments submitted in response to the 2014 and 2015
LNG Export Studies. Certain commenters have criticized aspects of the models, assumptions,
and design of the Studies. As discussed above, however, EIA’s projections in AEO 2017
continue to show market conditions that will accommodate increased exports of natural gas.
When compared to the AEO 2014 Reference case, the AEO 2017 Reference case projects
increases in domestic natural gas production—well in excess of what is required to meet
projected increases in domestic consumption. Accordingly, we find that the 2014 and 2015 LNG
Export Studies are fundamentally sound and support the proposition
that the proposed
authorization will not be inconsistent with the public interest.
5.
Benefits of International Trade
We have not limited our review to the contents of the 2014 and 2015 LNG Export Studies
and the data from AEO 2017, but have considered a wide range of other information. For
example, the National Export Initiative, established by Executive Order and cited by Delfin, sets
a goal to “improve conditions that directly affect the private sector’s ability to export” and to
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“enhance and coordinate Federal efforts to facilitate the creation of jobs in the United States
through the promotion of exports.”
329
We have also considered the international consequences of our decision. We review
applications to export LNG to non-FTA nations under section 3(a) of the NGA.
The United
States’ commitment to free trade is one factor bearing on that review. An efficient, transparent
international market for natural gas with diverse sources of supply provides both economic and
strategic benefits to the United States and our allies. Indeed, increased production of domestic
natural gas has significantly reduced the need for the United States to import LNG. In global
trade, LNG shipments that would have been destined to U.S. markets have been redirected to
Europe and Asia, improving energy security for many of our key trading partners. To the
extent
U.S. exports can diversify global LNG supplies, and increase the volumes of LNG available
globally, we agree with Delfin—and MARAD’s conclusions in the ROD—that this will improve
energy security for many U.S. allies and trading partners. As such, authorizing U.S. exports may
advance the public interest for reasons that are distinct from and additional to
the economic
benefits identified in the 2014 and 2015 Studies.
C.
Environmental Issues
In reviewing the potential environmental impacts of Delfin’s proposal to export LNG,
DOE/FE has considered both its obligations under NEPA and its obligation under NGA section
3(a) to ensure that the proposal is not inconsistent with the public interest.
1.
Adoption of MARAD’s Final EIS
DOE/FE participated in MARAD’s environmental review of the proposed Delfin
Liquefaction Project (or “Port) as a cooperating agency. Because DOE was a cooperating agency,
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National Export Initiative, 75 Fed. Reg. 12,433 (Mar. 16, 2010).
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DOE/FE is permitted to adopt without recirculating MARAD’s Final EIS, provided that DOE/FE
has conducted an independent review of the EIS and determines that its comments and
suggestions have been satisfied.
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For the reasons set forth below, DOE/FE has not found that
the arguments raised in the MARAD proceeding, the current proceeding, or the 2014 and 2015
LNG Export Study proceedings detract from the reasoning and conclusions contained
in the Final
EIS. Accordingly, DOE has adopted the EIS (DOE/EIS-0531),
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and hereby incorporates the
reasoning contained in the EIS in this Order.
2.
Scope of NEPA Review
In the proceeding before MARAD, EPA Region 6 filed comments recommending that
MARAD consider the potential for increased natural gas production and associated increased
environmental impacts resulting from the proposed Delfin Port.
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EPA stated, for example, that
the Final EIS did not provide “adequate analysis and information regarding GHG emissions
associated with the production,
transport, and combustion of the natural gas proposed to be
exported.”
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As discussed above, MARAD responded to EPA’s comments in the ROD, concluding
that these issues are outside the scope of NEPA, and that “the scope of the EIS … meets the
statutory requirement of NEPA and the [Deepwater Port] Act.”
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MARAD pointed out that the
Final EIS “includes an estimate of GHG emissions related to the proposed
construction,
operation and decommissioning of the proposed Port.”
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Further, MARAD noted that the Final
EIS analyzed “reasonably foreseeable connected actions” as required under NEPA, such as the
330
See 40 C.F.R. § 1506.3(c).
331
See supra § I (citing 82 Fed. Reg. 19,715).
332
See MARAD ROD at 24, 60.
333
Id. at 60 (citation omitted).
334
Id.
335
Id.