132
energy infrastructure; (iii) will provide a reliable source of clean energy to U.S. allies in the
event of market disruption; and (iv) will have a low impact on the availability and cost of natural
gas in the U.S. domestic market.
300
Additionally, MARAD “encourage[s] Delfin LNG to use
U.S.-flagged vessels crewed with U.S. mariners to support Port operations.”
301
Addressing energy and national security interests, MARAD concludes that “the export of
natural gas from the Port will not jeopardize the Nation’s environmental security or the
commodity’s availability to domestic markets.”
302
In support of this finding, MARAD cites data
from the U.S. Energy Information Administration (EIA) analyzing U.S. natural gas reserves and
production. MARAD further concludes that “[t]he export of natural gas will serve U.S. national
security interests through the diversification of global natural gas supply, benefitting U.S. allies
that are subject to unreliable natural gas supplies.”
303
MARAD finds that the construction of Delfin’s Port will have a “positive impact” on
employment levels in Louisiana.
304
Additionally, MARAD finds that the Port will create
“numerous permanent jobs for the region,” to support both the Port’s operations and the vessels
that utilize the Port.
305
2.
Environmental Considerations Under the Deepwater Port Act and NEPA
MARAD observes that Delfin will be utilizing a “first-of-its-kind” FLNGV to be
operated on the Outer Continental Shelf. MARAD states that, by using air-cooled (rather than
water-cooled) FLNGVs at the Port, Delfin will reduce the amount of water used in its industrial
300
See id. at 65.
301
Id.
302
Id. at 67.
303
Id.
304
MARAD ROD at 67.
305
Id.
133
processes, thereby minimizing impacts to the marine environment. Consequently, MARAD
finds that Delfin’s Port will constructed and operated using the best available technology.
306
MARAD states the EPA Administrator did not inform MARAD of Delfin’s inability to
comply with certain federal environmental statutes, including the Clean Air Act and Clean Water
Act. MARAD therefore concludes that Delfin’s Port will be able to comply with those laws.
307
MARAD further explains that, on January 12, 2017, EPA Region 6 submitted a final
letter to MARAD in which it expressed “continuing concern” over the potential impacts of
greenhouse gas (GHG) emissions associated with Delfin’s proposal.”
308
Specifically, EPA
informed MARAD 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.”
309
In response to this letter from EPA, MARAD finds that “the scope of the EIS for the
Delfin LNG project meets the statutory requirement of NEPA and the [Deepwater Port] Act.”
310
MARAD states that “the Final EIS includes an estimate of GHG emissions related to the
proposed construction, operation, and decommissioning of the proposed Delfin LNG Port.”
311
The Final EIS also analyzed “reasonably foreseeable connected actions” as required under
NEPA, such as the federal actions of cooperating agencies, including but not limited to FERC for
the certification of the components of the Delfin Onshore Project.
312
MARAD acknowledges that the Final EIS “does not analyze the upstream effects from
306
See id. 65-66.
307
See id. at 66.
308
Id. at 60.
309
MARAD ROD at 60.
310
Id.
311
Id.
312
See id.
134
potential induced production or downstream effects from the export of natural gas.”
313
MARAD
concludes, however, that “CEQ’s final guidance on evaluating GHG impacts does not require
NEPA analyses to include such unforeseeable effects.”
314
On this basis, MARAD determines
that the Final EIS properly evaluated the foreseeable direct and indirect impacts of the proposed
port under NEPA.
315
Addressing downstream GHG emissions from overseas transport, regasification, and
combustion of export LNG, MARAD points to Delfin’s LNG export proceedings before
DOE/FE, including the Application in this proceeding. MARAD concludes that “[t]he necessary
factors for a meaningful analysis”—including the demand for LNG to be exported from Delfin’s
Port, the destination(s) of Delfin’s proposed exports, the transport routes, and the ultimate end
uses of the LNG—“are unknown.”
316
Therefore, MARAD finds that the downstream GHG
emissions are likewise “not reasonably foreseeable.”
317
Finally, according to MARAD, EPA suggested that the Final EIS consider the LCA
GHG Report discussed herein in evaluating downstream GHG emissions. MARAD reviews
NETL’s findings in the LCA GHG Report, and concludes that “[b]ecause NETL analyzed
representative approaches for U.S. LNG exports, the general conclusions regarding GHG
emissions from such exports are expected to apply to [Delfin’s] project.”
318
3.
Issuance of the Deepwater Port License
On the basis of the evidence discussed in the ROD, MARAD approves Delfin’s
313
Id.
314
Id. at 60-61.
315
See id. at 60.
316
MARAD ROD at 61.
317
Id.
318
Id. at 61 n.89.
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