7
(2)
Environmental Studies:
On June 4, 2014, DOE/FE issued two notices in the Federal Register proposing to
evaluate different environmental aspects of the LNG production and export chain. First,
DOE/FE announced that it had conducted a review of existing literature on potential
environmental issues associated with unconventional natural gas production in the lower-48
states. The purpose of this review was to provide additional information to the public concerning
the potential environmental impacts of unconventional natural gas exploration and production
activities, including hydraulic fracturing. DOE/FE published its draft report for public review
and comment, entitled Draft Addendum to Environmental Review Documents Concerning
Exports of Natural Gas from the United States (Draft Addendum).
22
DOE/FE received
comments on the Draft Addendum and, on August 15, 2014, issued the final Addendum with its
response to the public comments contained in Appendix B.
23
Second, DOE/FE commissioned the National Energy Technology Laboratory (NETL), a
DOE applied research laboratory, to conduct an analysis calculating the life cycle greenhouse gas
(GHG) emissions for LNG exported from the United States. See infra § X.A. The purpose of
this analysis was to determine: (i) how domestically-produced LNG exported from the United
States compares with regional coal (or other LNG sources) for electric power generation in
Europe and Asia from a life cycle GHG perspective, and (ii) how those results compare with
natural gas sourced from Russia and delivered to the same markets via pipeline. DOE/FE
22
Dep’t of Energy, Draft Addendum to Environmental Review Documents Concerning Exports of Natural Gas
From the United States, 79 Fed. Reg. 32,258 (June 4, 2014). DOE/FE announced the availability of the Draft
Addendum on its website on May 29, 2014.
23
Dep’t of Energy, Addendum to Environmental Review Documents Concerning Exports of Natural Gas From the
United States, 79 Fed. Reg. 48,132 (Aug. 15, 2014) [hereinafter Addendum]; see also
http://energy.gov/fe/addendum-environmental-review-documents-concerning-exports-natural-gas-united-states;
infra § IX. We take administrative notice of the Addendum in this proceeding.
8
published NETL’s report entitled Life Cycle Greenhouse Gas Perspective on Exporting
Liquefied Natural Gas from the United States (LCA GHG Report).
24
DOE/FE also received
public comment on the LCA GHG Report, and provides its response to those comments in this
Order. See infra § X.B.
With respect to both the Addendum and the LCA GHG Report, DOE/FE has taken all
public comments into consideration in this decision and has made those comments, as well as the
underlying studies, part of the record in this proceeding. As explained below, neither the
Addendum nor the LCA GHG Report are required by NEPA, but DOE/FE believes that these
documents will inform its review of the public interest under NGA section 3(a), and are
responsive to concerns previously raised in this proceeding.
Parallel MARAD Proceeding. In granting Delfin’s application for a deepwater port
license, MARAD found that the construction and operation of Delfin’s proposed Port ( i.e.,
Liquefaction Facility) will be “in the national interest” under section 4(c)(3) of the Deepwater
Port Act, and meets other required statutory criteria.
25
Specifically, MARAD found that the
Liquefaction Facility will have a beneficial effect on local and national economic growth; will
expand and diversify U.S. energy infrastructure; will provide a reliable source of clean energy to
U.S. allies in the event of market disruption; will have a low impact on the availability and cost
of natural gas in the U.S. domestic market; and is
consistent with other national policy goals and
objectives, including environmental quality
.
26
24
Dep’t of Energy, Life Cycle Greenhouse Gas Perspective on Exporting Liquefied Natural Gas From the United
States, 79 Fed. Reg. 32,260 (June 4, 2014) [hereinafter LCA GHG Report]. DOE/FE announced the availability of
the LCA GHG Report on its website on May 29, 2014.
25
33 U.S.C. § 1503(c)(3) (allowing the Secretary of Transportation to issue a license for a deepwater port if, in
relevant part, “he determines that the construction and operation of the deepwater port will be in the national interest
and consistent with national security and other national policy goals and objectives, including energy sufficiency
and environmental quality”).
26
See MARAD ROD at 65, 68.
9
In addition to the statutory requirements of the Deepwater Port Act, MARAD was
required to review Delfin’s Application under NEPA. As part of its environmental review,
MARAD issued a draft environmental impact statement (EIS) for the Port on July 15, 2016,
27
and a final EIS
28
on November 28, 2016.
29
The EIS evaluated the potential environmental
impact of the proposed Port, and recommended that MARAD subject any approval of Delfin’s
deepwater port license to several conditions. MARAD describes many of these conditions in
the ROD, but states that the “precise conditions … will be set forth in the License upon its
issuance.”
30
Additional details of the ROD are discussed below. See infra § XI.C.
DOE/FE’s Adoption of the EIS and Issuance of a Record of Decision Under NEPA,
and NGA Section 3(a) Authorization. After an independent review, DOE/FE adopted
MARAD’s EIS for the proposed Delfin Liquefaction Facility (DOE/EIS-0531) on April 18,
2017, and the U.S. Environmental Protection Agency (EPA) published a notice of the adoption
on April 28, 2017.
31
Concurrently with this Order, DOE/FE is issuing a Record of Decision
(ROD) for the proposed Liquefaction Facility.
32
As discussed below, this Order grants the
Application and is conditioned on Delfin’s receipt of all connected local, state and federal
permits—including FERC’s NGA section 7 authorization for the Delfin Onshore Facility—as
27
See id. at 14 n.24; see also U.S. Dep’t of Transp. Maritime Admin., Deepwater Port License Application: Delfin
LNG LLC, Delfin LNG Deepwater Port; Notice of Availability; Notice of Public Meeting; Request for Comments,
81 Fed. Reg. 46,157 (July 15, 2016) (notice of availability of Draft EIS).
28
See supra note 8.
29
See MARAD ROD at 14 n.28; see also U.S. Dep’t of Transp. Maritime Admin., Deepwater Port License
Application: Delfin LNG LLC, Delfin LNG Deepwater Port; Final Application, Public Hearing, and Final
Environmental Impact Statement, 81 Fed. Reg. 85,678 (Nov. 28, 2016) (notice of availability of Final EIS).
30
MARAD ROD at 16; see also id. at 49-59.
31
U.S. Envtl. Prot. Agency, Environmental Impact Statements; Notice of Availability, 82 Fed. Reg. 19,715 (Apr. 28,
2017) (providing notice that DOE has adopted the final EIS for the Delfin Liquefaction Facility).
32
U.S. Dep’t of Energy, Delfin LNG LLC, Record of Decision and Floodplain Statement of Findings for the Delfin
LNG LLC Application to Export Liquefied Natural Gas to Non-Free Trade Agreement Countries, FE Docket No.
13-147-LNG (June 1, 2017).
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