80_FR_26409 80 FR 26321 - Deepwater Port License Application Process for Offshore Export Facilities

80 FR 26321 - Deepwater Port License Application Process for Offshore Export Facilities

DEPARTMENT OF TRANSPORTATION
Maritime Administration

Federal Register Volume 80, Issue 88 (May 7, 2015)

Page Range26321-26324
FR Document2015-10619

This notice serves to inform interested parties and the public of the Maritime Administration's (MARAD) final policy to accept, evaluate and process license applications for the construction and operation of offshore deepwater port facilities for the export of oil and natural gas from the United States to foreign markets abroad and to use the existing Deepwater Port regulations for such purposes. On October 16, 2014, MARAD published a notice in the Federal Register seeking public comment on a draft policy under which such export applications would be accepted and processed. In response, the agency received 337 comments to which it provides its responses below.

Federal Register, Volume 80 Issue 88 (Thursday, May 7, 2015)
[Federal Register Volume 80, Number 88 (Thursday, May 7, 2015)]
[Notices]
[Pages 26321-26324]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-10619]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket Number MARAD-2014-0132]


Deepwater Port License Application Process for Offshore Export 
Facilities

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final policy.

-----------------------------------------------------------------------

SUMMARY: This notice serves to inform interested parties and the public 
of the Maritime Administration's (MARAD) final policy to accept, 
evaluate and process license applications for the construction and 
operation of offshore deepwater port facilities for the export of oil 
and natural gas from the United States to foreign markets abroad and to 
use the existing Deepwater Port regulations for such purposes. On 
October 16, 2014, MARAD published a notice in the Federal Register 
seeking public comment on a draft policy under which such export 
applications would be accepted and processed. In response, the agency 
received 337 comments to which it provides its responses below.

DATES: This policy is effective May 7, 2015.

ADDRESSES: The complete file for this policy is available for 
inspection with the Docket Clerk, Docket Management Facility, U.S. 
Department of Transportation, 1200 New Jersey Avenue SE., West 
Building, Room W12-140, Washington, DC 20590, between 9 a.m. and 5 
p.m., Monday through Friday, except on Federal holidays. You may also 
view the comments submitted to the docket via the Federal eRulemaking 
Portal at http://www.regulations.gov by following search instructions 
using DOT Docket Number MARAD-2014-0132.

FOR FURTHER INFORMATION CONTACT: You may contact Yvette M. Fields, 
Director, Office of Deepwater Ports and Offshore Activities, Maritime 
Administration, at (202) 366-0926. You may send mail to

[[Page 26322]]

Ms. Fields at Maritime Administration, 1200 New Jersey Avenue SE., MAR 
530, W21-309, Washington, DC 20590-0001. You may send electronic mail 
to Yvette.Fields@dot.gov. If you have questions on viewing the Docket, 
call Docket Operations, telephone: (202) 366-9826.

SUPPLEMENTARY INFORMATION: Pursuant to this notice, MARAD announces its 
final policy to accept and process applications for licenses for the 
ownership, construction and operation of deepwater port oil and natural 
gas export facilities. MARAD previously published a Notice of Proposed 
Policy (79 FR 62242, Oct. 16, 2014).

Comments on the Proposed Policy

    In response to the Federal Register notice seeking public comment 
on its proposed policy for deepwater ports license application process 
for offshore export facilities, MARAD received a total of 337 comment 
submissions from the following entities: 328 individual comments from 
private citizens expressing support for the proposed application 
process; a letter of support from Senator Lisa Murkowski of Alaska; a 
letter of support from Delfin LNG, LLC, a private energy company; a 
letter from the New York Department of State (NYDOS) Office of Planning 
and Development, Deputy Secretary of State generally supportive of the 
proposed policy, but requesting additional considerations; a letter 
containing five comments from Clean Ocean Action (COA), an 
environmental interest group; one comment from a private citizen, who 
stated that MARAD should link the approval of deepwater port export 
projects to the use of U.S. flag vessels and U.S. crews; and four 
comments erroneously submitted to the docket by private individuals 
expressing opposition to a specific deepwater port application, which 
is not the subject of this notice or the proposed application process. 
As the bulk of the comments were in favor of the proposed policy 
without qualification, the agency has elected to respond below to 
specific comments provided by NYDOS, COA and the private citizen that 
expressed support of the use of U.S. flag vessels and U.S. crews in 
conjunction with deepwater port exports.
    In its letter, NYDOS provided four substantive comments on the 
proposed policy. NYDOS' first comment requested that MARAD include the 
approval from the Governor(s) of adjacent coastal State(s) as a fourth 
licensing requirement for the conversion of licensed import facilities 
to export facilities. Receiving approval or presumptive approval of the 
Governor of the adjacent coastal State(s) is a mandatory requirement of 
the Deepwater Port Act, as amended, (DWPA) (33 U.S.C. 1503(c)(8)), and 
as such will continue to be a condition for issuance of a deepwater 
port export facility license.
    NYDOS' second comment requested that MARAD's proposed policy 
language require compliance with the nine factors specified in 33 
U.S.C. 1503(c), not simply ``consideration'' of those factors as 
currently stated in the policy. MARAD has clarified the final policy to 
make it clear that an applicant must meet all nine conditions set forth 
in 33 U.S.C. 1503(c) before the Maritime Administrator may issue a 
license for an export facility. The Maritime Administrator's Deepwater 
Port Licensing record of decision (ROD) will address whether the 
(import or export) deepwater port license application satisfies each of 
the nine criteria and the requirements of the National Environmental 
Policy Act (NEPA), 42 U.S.C. 4321-4347, and other applicable 
requirements. The ROD will serve as the decision document (and, if 
appropriate, may contain a Finding of No Significant Impact) for 
purposes of complying with NEPA.
    NYDOS' third comment requested that, at a minimum, NEPA analysis 
for an export facility should address: The offshore port; the 
processing and liquefaction/regasification facilities; new pipelines; 
and other infrastructure necessary to support the production and 
conveyance of oil and/or natural gas to and from the export facility. 
The NEPA process requires a thorough analysis of the direct, indirect 
and cumulative environmental impacts of the proposed action. This 
analysis includes all aspects of the siting, construction, operation 
and decommissioning of the deepwater port. The commenter's concern 
regarding the components and operational aspects of the deepwater port 
are currently and will continue to be addressed in the statutorily-
required NEPA analysis, which is performed as part of all deepwater 
port license applications. The specific components of a deepwater port 
terminal, including those the commenter listed, are and will continue 
to be included in the preparation of the NEPA document. Finally, NYDOS 
requested that to ensure the NEPA review process adequately identifies 
and analyzes all potential impacts, MARAD's final policy clearly 
describe the relevant shore-based and offshore infrastructure that will 
be considered within the scope of an export facility. The U.S. Coast 
Guard (Coast Guard) and MARAD's environmental review of the proposed 
action includes all direct, indirect and cumulative impacts. This 
review must cover all offshore and onshore components and support 
activities associated with the deepwater port. However, it is important 
to note that every deepwater port application is considered on a case-
by-case basis. While the DWPA provides a comprehensive definition of 
what constitutes a deepwater port, it would be inappropriate to try and 
set forth a specific list of shore-based and offshore components that 
should be considered as part of an application and made part of the 
NEPA analysis.
    COA provided five comments on the proposed policy. COA's first 
comment stated that it is critical that MARAD's proposed policy have 
broad application and require a full review process that, among other 
requirements, engages the public in a meaningful way. In compliance 
with the DWPA, NEPA and other applicable laws and regulations, MARAD 
will ensure that a full and comprehensive public engagement and 
application review process is applied to the processing of all 
deepwater port license applications for both imports and exports.
    COA's second comment stated that it agrees with MARAD's proposal to 
encompass both established and proposed facilities in any export 
licensing policy it might adopt. The comment goes on to state that COA 
finds the proposed policy is sufficiently broad in this regard.
    In addition, COA discussed the scope of review contained in MARAD's 
proposed policy and expressed support for the concept of treating all 
requests for export authorization as new license applications and 
indicated support for the scope of review to occur under the proposed 
policy. MARAD will treat any proposal for deepwater port exports as a 
new license application, and MARAD will apply a full and comprehensive 
application review and public engagement process to the processing of 
export applications.
    COA's fourth comment requested that in instances where MARAD 
prepares an Environmental Assessment and intends to issue a Finding of 
No Significant Impact, it should provide a public review and comment 
period of not less than 90 days. According to COA, such a requirement 
would help maintain the integrity of the export application review 
process, ensure public involvement therein, and further enhance MARAD's 
environmental review.
    As part of the existing application review process, MARAD ensures 
that an

[[Page 26323]]

adequate and comprehensive environmental review is applied to the 
evaluation of all deepwater port license applications. MARAD will 
continue its comprehensive environmental review process and provide for 
the public review and comment periods required by current regulations 
for all applications.
    The final comment provided by COA relates to the environmental 
review of indirect and cumulative impacts. COA stated that there are a 
number of indirect and cumulative impacts that MARAD should consider 
with respect to any export license application. They include the 
impacts of a facility (operating with the functionality the proponent 
seeks) upon (1) the natural aquatic environment, including from 
increased vessel traffic and shipping lane congestion, (2) air quality, 
both on and offshore, (3) the environment onshore and proximate to the 
distribution infrastructure, (4) the environment in and around the 
extraction areas, and (5) the upstream (e.g., increased shale 
production and fracking activities), downstream (e.g., carbon 
emissions), and climate change impacts. Further, COA states that MARAD 
should consider the proposed activity's impacts in conjunction with 
impacts from other reasonably foreseeable projects, such as wind farms 
and other pipelines within the designated application area. As noted 
above, the Coast Guard and MARAD's environmental review of the proposed 
action includes all direct, indirect and cumulative impacts. This 
review must cover all offshore and onshore components and support 
activities associated with the deepwater port. It is important to note, 
however, that every deepwater port application is considered on a case-
by-case basis. While the DWPA provides a comprehensive definition of 
what constitutes a deepwater port, it would be inappropriate to try and 
set forth a specific list of shore-based and offshore components that 
may be considered as part of an application and made part of the NEPA 
analysis.
    The final commenter, a private citizen, supported the proposed 
policy and requested that MARAD follow the precedent established by 
former MARAD Administrator Sean Connaughton and link application 
approval to the use of U.S. vessels and U.S. crews to export liquefied 
natural gas (LNG). Under this policy, MARAD will continue its efforts 
to support the use of U.S. flag vessels and U.S. crews in the operation 
of all deepwater port licensed facilities.

Final Policy

    On December 20, 2012, the Coast Guard and Maritime Transportation 
Act of 2012 (Pub. L. 112-213, Sec. 312 (Dec. 20, 2012)) (CG&MT Act) 
amended Section 3(9)(A) (33 U.S.C. 1502(9)(A)) of the Deepwater Port 
Act (DWPA) and brought offshore export facilities within the DWPA's 
definition of a deepwater port. Previously, the definition of a 
deepwater port was limited to facilities transporting oil or natural 
gas to any State. The Secretary of Transportation must license the 
ownership, construction and operation of a deepwater port, now 
including export facilities, pursuant to 33 U.S.C. 1503(a) and (b). 
This amendment will be implemented in accordance with existing 
statutory and regulatory requirements applicable to the DWPA. The CG&MT 
Act provided no other amendments to the DWPA.
    Pursuant to 33 U.S.C. 1501-1524,\1\ the Maritime Administration 
(MARAD) and U.S. Coast Guard (Coast Guard) jointly process deepwater 
port license applications under delegations from the Secretary of 
Transportation (49 CFR 1.93(h)) and the Secretary of Homeland Security 
(Department of Homeland Security Delegation 0170.1(75)), respectively. 
In general, the Coast Guard and MARAD are co-lead agencies for 
compliance with NEPA, 42 U.S.C. 4321 through 4347. The Coast Guard also 
is responsible for matters related to navigation safety, engineering 
and safety standards, and facility operations and inspections. MARAD is 
responsible for determining citizenship and financial capability of the 
potential licensees, preparing the Record of Decision (ROD), and 
issuing or denying the license. The Coast Guard and MARAD share various 
other responsibilities under the DWPA, including the duty to consult 
with other Federal or State agencies. Such agencies include the U.S. 
Department of Energy (DOE), which is responsible for authorizing the 
transaction of importing or exporting liquefied natural gas (LNG) to or 
from the United States; the Federal Energy Regulatory Commission 
(FERC), responsible for authorizing onshore LNG import or export 
facilities, including the construction and operation of onshore natural 
gas pipelines that interconnect with deepwater ports; and the Pipeline 
and Hazardous Materials Safety Administration (PHMSA), which is 
responsible for ensuring the safe construction, operation and 
maintenance of natural gas pipelines located on Federal lands, 
including offshore deepwater port pipelines.
---------------------------------------------------------------------------

    \1\ When the Coast Guard moved from the Department of 
Transportation to the Department of Homeland Security, its 
responsibilities for deepwater ports transferred with it. See 6 
U.S.C. 468(b).
---------------------------------------------------------------------------

    Additionally, the Coast Guard has previously developed 
comprehensive regulatory requirements for deepwater port license 
applications. Regulations detailing the requirements of the deepwater 
port license application process; design, construction, and equipment; 
and port operations can be found in 33 CFR parts 148, 149 and 150. 
Additionally, it is noted that on April 9, 2015, the Coast Guard 
published in the Federal Register a Notice of Proposed Rulemaking (80 
FR 19118) updating 33 CFR parts 148, 149 and 150. These regulations 
pertain to the application review process, planning, environmental 
review, design, construction and operation of deepwater port facilities 
without specific regard to whether the facility imports or exports oil 
and/or natural gas products. With the addition of oil and natural gas 
exportation under the amendment to the DWPA, MARAD does not foresee any 
reason to alter the deepwater port licensing application process.
    Accordingly, MARAD, with the concurrence of the Coast Guard, 
intends to use the existing Deepwater Port regulations for the review, 
evaluation and processing of any deepwater port license application 
involving the export of oil or natural gas from domestic sources within 
the United States as provided for in 33 CFR parts 148, 149 and 150.
    A deepwater port license issued by MARAD does, not, by itself, 
convey an authorization to export crude oil or natural gas. Pursuant to 
15 CFR 754.2, a license granted by the U.S. Department of Commerce 
(DOC) would generally be required for exports of crude oil. Exports of 
natural gas, including LNG, will generally require authorization from 
DOE pursuant to Section 3 of the Natural Gas Act of 1938. Exports of 
refined petroleum products do not generally require an export license. 
MARAD licenses the deepwater port facility, while DOC and DOE approve 
the transactions that utilize the facility.
    Any deepwater port applicant who proposes to export oil or natural 
gas from domestic sources within the United States must submit an 
export-specific comprehensive license application conforming to all 
established and applicable deepwater port licensing requirements and 
regulations. Note that 33 CFR 148.5 defines ``oil'' as ``petroleum, 
crude oil and any substance refined from petroleum or crude oil.'' 
Thus, this

[[Page 26324]]

requirement would also cover a deepwater port intended for the export 
of refined products.
    The considerable technical, operational and environmental 
differences between import and export operations for oil or natural gas 
projects are such that any licensed deepwater port facility operator or 
any proponent of a deepwater port that has an application in process 
who proposes to convert from import to export operations must submit a 
new license application (including application fee) and conform to all 
licensing requirements and regulations in effect at such time of 
application. For licensed deepwater ports, an application to convert 
from import operations to export operations requires, at a minimum: (1) 
Approval from DOE or other approval authority to export oil or natural 
gas to free trade and/or non-free trade agreement countries; (2) a new 
or supplemental environmental impact statement or environmental 
assessment pursuant to NEPA that assesses the environmental impacts of 
the proposed change in operations; and (3) a revised operations manual 
that fully describes the proposed change in port operations. Only after 
all required application processes are completed, and MARAD issues a 
ROD or Finding Of No Significant Impact (FONSI) that explicitly 
addresses the nine mandatory criteria specified in the DWPA (33 U.S.C. 
1503(c)), may the Maritime Administrator approve, approve with 
conditions, or disapprove an application to export oil or natural gas 
through a deepwater port.
    For deepwater ports that already have a license to import oil or 
natural gas, if the Maritime Administrator approves an application to 
convert to export operations, the licensee must surrender the existing 
license, and the Maritime Administrator will issue a new license, as 
outlined above, with conditions appropriate to all intended activities, 
including, if applicable, authority to engage in bidirectional oil or 
natural gas import and export operations. For applications to site, 
construct and operate a new deepwater port, the Maritime Administrator 
will issue a new license with conditions appropriate to the applied-for 
activity.

Policy Analysis and Notices

    MARAD is publishing this policy in the Federal Register to indicate 
how it plans to exercise the discretionary authority provided by the 
DWPA, as amended by the CG&MT Act. This policy establishes an 
administrative process for the review of deepwater port applications 
that propose to export oil or natural gas. It is consistent with the 
existing process previously established for the review of import 
applications. This policy acknowledges that these existing statutory 
and regulatory procedures are sufficient and appropriate for the 
processing of export applications.

    Authority:  The Coast Guard and Maritime Transportation Act of 
2012; The Deepwater Port Act of 1974, as amended, 33 U.S.C. 1501-
1524; 49 CFR 1.93.

    Dated: May 1, 2015.

    By Order of the Maritime Administrator.
Thomas M. Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2015-10619 Filed 5-6-15; 8:45 am]
 BILLING CODE 4910-81-P



                                                                                  Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices                                                  26321

                                                  copy of the certification on his/her                    Submitting Comments                                   the document listed to review. If you do
                                                  person while driving for presentation to                   If you submit a comment, please                    not have access to the Internet, you may
                                                  a duly authorized Federal, State, or local              include the docket number for this                    view the docket online by visiting the
                                                  enforcement official. Each exemption                    notice (FMCSA–2000–8398; FMCSA–                       Docket Management Facility in Room
                                                  will be valid for two years unless                      2002–12294; FMCSA–2004–17984;                         W12–140 on the ground floor of the
                                                  rescinded earlier by FMCSA. The                         FMCSA–2005–20027; FMCSA–2005–                         DOT West Building, 1200 New Jersey
                                                  exemption will be rescinded if: (1) the                 20560; FMCSA–2006–24783; FMCSA–                       Avenue SE., Washington, DC 20590,
                                                  person fails to comply with the terms                   2007–27333; FMCSA–2007–27897;                         between 9 a.m. and 5 p.m., e.t., Monday
                                                  and conditions of the exemption; (2) the                FMCSA–2009–0054; FMCSA–2011–                          through Friday, except Federal holidays.
                                                  exemption has resulted in a lower level                 0010; FMCSA–2011–0057), indicate the                    Issued on: April 30, 2015.
                                                  of safety than was maintained before it                 specific section of this document to                  Larry W. Minor,
                                                  was granted; or (3) continuation of the                 which each comment applies, and                       Associate Administrator for Policy.
                                                  exemption would not be consistent with                  provide a reason for each suggestion or               [FR Doc. 2015–10965 Filed 5–6–15; 8:45 am]
                                                  the goals and objectives of 49 U.S.C.                   recommendation. You may submit your                   BILLING CODE 4910–EX–P
                                                  31136(e) and 31315.                                     comments and material online or by fax,
                                                  III. Basis for Renewing Exemptions                      mail, or hand delivery, but please use
                                                                                                          only one of these means. FMCSA                        DEPARTMENT OF TRANSPORTATION
                                                    Under 49 U.S.C. 31315(b)(1), an                       recommends that you include your
                                                  exemption may be granted for no longer                  name and a mailing address, an email                  Maritime Administration
                                                  than two years from its approval date                   address, or a phone number in the body                [Docket Number MARAD–2014–0132]
                                                  and may be renewed upon application                     of your document so the Agency can
                                                  for additional two year periods. In                     contact you if it has questions regarding             Deepwater Port License Application
                                                  accordance with 49 U.S.C. 31136(e) and                  your submission.                                      Process for Offshore Export Facilities
                                                  31315, each of the 17 applicants has                       To submit your comment online, got
                                                                                                          to http://www.regulations.gov and put                 AGENCY:  Maritime Administration,
                                                  satisfied the entry conditions for                                                                            Department of Transportation.
                                                  obtaining an exemption from the vision                  the docket number, ‘‘FMCSA–2000–
                                                                                                          8398; FMCSA–2002–12294; FMCSA–                        ACTION: Final policy.
                                                  requirements (65 FR 78256; 66 FR
                                                  16311; 67 FR 46016; 67 FR 57267; 68 FR                  2004–17984; FMCSA–2005–20027;                         SUMMARY:   This notice serves to inform
                                                  13360; 69 FR 33997; 69 FR 61292; 69 FR                  FMCSA–2005–20560; FMCSA–2006–                         interested parties and the public of the
                                                  62741; 70 FR 2701; 70 FR 12265; 70 FR                   24783; FMCSA–2007–27333; FMCSA–                       Maritime Administration’s (MARAD)
                                                  16887; 70 FR 17504; 70 FR 30997; 71 FR                  2007–27897; FMCSA–2009–0054;                          final policy to accept, evaluate and
                                                  32183; 71 FR 41310; 71 FR 62147; 72 FR                  FMCSA–2011–0010; FMCSA–2011–                          process license applications for the
                                                  12665; 72 FR 12666; 72 FR 25831; 72 FR                  0057’’ in the ‘‘Keyword’’ box, and click              construction and operation of offshore
                                                  27624; 72 FR 39879; 72 FR 52419; 73 FR                  ‘‘Search.’’ When the new screen                       deepwater port facilities for the export
                                                  61925; 74 FR 9329; 74 FR 11988; 74 FR                   appears, click on ‘‘Comment Now!’’                    of oil and natural gas from the United
                                                  15586; 74 FR 19270; 74 FR 21427; 75 FR                  button and type your comment into the                 States to foreign markets abroad and to
                                                  66423; 76 FR 9856; 76 FR 17483; 76 FR                   text box in the following screen. Choose              use the existing Deepwater Port
                                                  18824; 76 FR 20076; 76 FR 25762; 76 FR                  whether you are submitting your                       regulations for such purposes. On
                                                  29024; 78 FR 14410; 78 FR 16762; 78 FR                  comment as an individual or on behalf                 October 16, 2014, MARAD published a
                                                  24300; 79 FR 24298). Each of these 17                   of a third party and then submit. If you              notice in the Federal Register seeking
                                                  applicants has requested renewal of the                 submit your comments by mail or hand                  public comment on a draft policy under
                                                  exemption and has submitted evidence                    delivery, submit them in an unbound                   which such export applications would
                                                  showing that the vision in the better eye               format, no larger than 81⁄2 by 11 inches,             be accepted and processed. In response,
                                                  continues to meet the requirement                       suitable for copying and electronic                   the agency received 337 comments to
                                                  specified at 49 CFR 391.41(b)(10) and                   filing. If you submit comments by mail                which it provides its responses below.
                                                  that the vision impairment is stable. In                and would like to know that they                      DATES: This policy is effective May 7,
                                                  addition, a review of each record of                    reached the facility, please enclose a                2015.
                                                  safety while driving with the respective                stamped, self-addressed postcard or
                                                                                                          envelope. FMCSA will consider all                     ADDRESSES: The complete file for this
                                                  vision deficiencies over the past two                                                                         policy is available for inspection with
                                                  years indicates each applicant continues                comments and material received during
                                                                                                          the comment period and may change                     the Docket Clerk, Docket Management
                                                  to meet the vision exemption                                                                                  Facility, U.S. Department of
                                                  requirements. These factors provide an                  this notice based on your comments.
                                                                                                                                                                Transportation, 1200 New Jersey
                                                  adequate basis for predicting each                      Viewing Comments and Documents                        Avenue SE., West Building, Room W12–
                                                  driver’s ability to continue to drive                      To view comments, as well as any                   140, Washington, DC 20590, between 9
                                                  safely in interstate commerce.                          documents mentioned in this preamble                  a.m. and 5 p.m., Monday through
                                                  Therefore, FMCSA concludes that                         as being available in the docket, go to               Friday, except on Federal holidays. You
                                                  extending the exemption for each                        http://www.regulations.gov and in the                 may also view the comments submitted
                                                  renewal applicant for a period of two                   search box insert the docket number,                  to the docket via the Federal
                                                  years is likely to achieve a level of safety            ‘‘FMCSA–2000–8398; FMCSA–2002–                        eRulemaking Portal at http://
                                                  equal to that existing without the                                                                            www.regulations.gov by following
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                                                                          12294; FMCSA–2004–17984; FMCSA–
                                                  exemption.                                              2005–20027; FMCSA–2005–20560;                         search instructions using DOT Docket
                                                  IV. Public Participation and Request for                FMCSA–2006–24783; FMCSA–2007–                         Number MARAD–2014–0132.
                                                  Comments                                                27333; FMCSA–2007–27897; FMCSA–                       FOR FURTHER INFORMATION CONTACT: You
                                                                                                          2009–0054; FMCSA–2011–0010;                           may contact Yvette M. Fields, Director,
                                                    FMCSA encourages you to participate                   FMCSA–2011–0057’’ in the ‘‘Keyword’’                  Office of Deepwater Ports and Offshore
                                                  by submitting comments and related                      box and click ‘‘Search.’’ Next, click                 Activities, Maritime Administration, at
                                                  materials.                                              ‘‘Open Docket Folder’’ button choose                  (202) 366–0926. You may send mail to


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                                                  26322                           Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices

                                                  Ms. Fields at Maritime Administration,                  presumptive approval of the Governor                  environmental review of the proposed
                                                  1200 New Jersey Avenue SE., MAR 530,                    of the adjacent coastal State(s) is a                 action includes all direct, indirect and
                                                  W21–309, Washington, DC 20590–0001.                     mandatory requirement of the                          cumulative impacts. This review must
                                                  You may send electronic mail to                         Deepwater Port Act, as amended,                       cover all offshore and onshore
                                                  Yvette.Fields@dot.gov. If you have                      (DWPA) (33 U.S.C. 1503(c)(8)), and as                 components and support activities
                                                  questions on viewing the Docket, call                   such will continue to be a condition for              associated with the deepwater port.
                                                  Docket Operations, telephone: (202)                     issuance of a deepwater port export                   However, it is important to note that
                                                  366–9826.                                               facility license.                                     every deepwater port application is
                                                  SUPPLEMENTARY INFORMATION: Pursuant
                                                                                                             NYDOS’ second comment requested                    considered on a case-by-case basis.
                                                  to this notice, MARAD announces its                     that MARAD’s proposed policy                          While the DWPA provides a
                                                  final policy to accept and process                      language require compliance with the                  comprehensive definition of what
                                                  applications for licenses for the                       nine factors specified in 33 U.S.C.                   constitutes a deepwater port, it would
                                                  ownership, construction and operation                   1503(c), not simply ‘‘consideration’’ of              be inappropriate to try and set forth a
                                                  of deepwater port oil and natural gas                   those factors as currently stated in the              specific list of shore-based and offshore
                                                                                                          policy. MARAD has clarified the final                 components that should be considered
                                                  export facilities. MARAD previously
                                                                                                          policy to make it clear that an applicant             as part of an application and made part
                                                  published a Notice of Proposed Policy
                                                                                                          must meet all nine conditions set forth               of the NEPA analysis.
                                                  (79 FR 62242, Oct. 16, 2014).
                                                                                                          in 33 U.S.C. 1503(c) before the Maritime                 COA provided five comments on the
                                                  Comments on the Proposed Policy                         Administrator may issue a license for an              proposed policy. COA’s first comment
                                                     In response to the Federal Register                  export facility. The Maritime                         stated that it is critical that MARAD’s
                                                  notice seeking public comment on its                    Administrator’s Deepwater Port                        proposed policy have broad application
                                                                                                          Licensing record of decision (ROD) will               and require a full review process that,
                                                  proposed policy for deepwater ports
                                                                                                          address whether the (import or export)                among other requirements, engages the
                                                  license application process for offshore
                                                                                                          deepwater port license application                    public in a meaningful way. In
                                                  export facilities, MARAD received a
                                                                                                          satisfies each of the nine criteria and the           compliance with the DWPA, NEPA and
                                                  total of 337 comment submissions from
                                                                                                          requirements of the National                          other applicable laws and regulations,
                                                  the following entities: 328 individual
                                                                                                          Environmental Policy Act (NEPA), 42                   MARAD will ensure that a full and
                                                  comments from private citizens
                                                                                                          U.S.C. 4321–4347, and other applicable                comprehensive public engagement and
                                                  expressing support for the proposed
                                                                                                          requirements. The ROD will serve as the               application review process is applied to
                                                  application process; a letter of support
                                                                                                          decision document (and, if appropriate,               the processing of all deepwater port
                                                  from Senator Lisa Murkowski of Alaska;
                                                                                                          may contain a Finding of No Significant               license applications for both imports
                                                  a letter of support from Delfin LNG,                    Impact) for purposes of complying with                and exports.
                                                  LLC, a private energy company; a letter                 NEPA.                                                    COA’s second comment stated that it
                                                  from the New York Department of State                      NYDOS’ third comment requested                     agrees with MARAD’s proposal to
                                                  (NYDOS) Office of Planning and                          that, at a minimum, NEPA analysis for                 encompass both established and
                                                  Development, Deputy Secretary of State                  an export facility should address: The                proposed facilities in any export
                                                  generally supportive of the proposed                    offshore port; the processing and                     licensing policy it might adopt. The
                                                  policy, but requesting additional                       liquefaction/regasification facilities;               comment goes on to state that COA
                                                  considerations; a letter containing five                new pipelines; and other infrastructure               finds the proposed policy is sufficiently
                                                  comments from Clean Ocean Action                        necessary to support the production and               broad in this regard.
                                                  (COA), an environmental interest group;                 conveyance of oil and/or natural gas to                  In addition, COA discussed the scope
                                                  one comment from a private citizen,                     and from the export facility. The NEPA                of review contained in MARAD’s
                                                  who stated that MARAD should link the                   process requires a thorough analysis of               proposed policy and expressed support
                                                  approval of deepwater port export                       the direct, indirect and cumulative                   for the concept of treating all requests
                                                  projects to the use of U.S. flag vessels                environmental impacts of the proposed                 for export authorization as new license
                                                  and U.S. crews; and four comments                       action. This analysis includes all                    applications and indicated support for
                                                  erroneously submitted to the docket by                  aspects of the siting, construction,                  the scope of review to occur under the
                                                  private individuals expressing                          operation and decommissioning of the                  proposed policy. MARAD will treat any
                                                  opposition to a specific deepwater port                 deepwater port. The commenter’s                       proposal for deepwater port exports as
                                                  application, which is not the subject of                concern regarding the components and                  a new license application, and MARAD
                                                  this notice or the proposed application                 operational aspects of the deepwater                  will apply a full and comprehensive
                                                  process. As the bulk of the comments                    port are currently and will continue to               application review and public
                                                  were in favor of the proposed policy                    be addressed in the statutorily-required              engagement process to the processing of
                                                  without qualification, the agency has                   NEPA analysis, which is performed as                  export applications.
                                                  elected to respond below to specific                    part of all deepwater port license                       COA’s fourth comment requested that
                                                  comments provided by NYDOS, COA                         applications. The specific components                 in instances where MARAD prepares an
                                                  and the private citizen that expressed                  of a deepwater port terminal, including               Environmental Assessment and intends
                                                  support of the use of U.S. flag vessels                 those the commenter listed, are and will              to issue a Finding of No Significant
                                                  and U.S. crews in conjunction with                      continue to be included in the                        Impact, it should provide a public
                                                  deepwater port exports.                                 preparation of the NEPA document.                     review and comment period of not less
                                                     In its letter, NYDOS provided four                   Finally, NYDOS requested that to                      than 90 days. According to COA, such
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                                                  substantive comments on the proposed                    ensure the NEPA review process                        a requirement would help maintain the
                                                  policy. NYDOS’ first comment                            adequately identifies and analyzes all                integrity of the export application
                                                  requested that MARAD include the                        potential impacts, MARAD’s final                      review process, ensure public
                                                  approval from the Governor(s) of                        policy clearly describe the relevant                  involvement therein, and further
                                                  adjacent coastal State(s) as a fourth                   shore-based and offshore infrastructure               enhance MARAD’s environmental
                                                  licensing requirement for the conversion                that will be considered within the scope              review.
                                                  of licensed import facilities to export                 of an export facility. The U.S. Coast                    As part of the existing application
                                                  facilities. Receiving approval or                       Guard (Coast Guard) and MARAD’s                       review process, MARAD ensures that an


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                                                                                  Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices                                            26323

                                                  adequate and comprehensive                              Final Policy                                          construction, operation and
                                                  environmental review is applied to the                     On December 20, 2012, the Coast                    maintenance of natural gas pipelines
                                                  evaluation of all deepwater port license                Guard and Maritime Transportation Act                 located on Federal lands, including
                                                  applications. MARAD will continue its                   of 2012 (Pub. L. 112–213, Sec. 312 (Dec.              offshore deepwater port pipelines.
                                                  comprehensive environmental review                      20, 2012)) (CG&MT Act) amended                           Additionally, the Coast Guard has
                                                  process and provide for the public                      Section 3(9)(A) (33 U.S.C. 1502(9)(A)) of             previously developed comprehensive
                                                  review and comment periods required                     the Deepwater Port Act (DWPA) and                     regulatory requirements for deepwater
                                                  by current regulations for all                          brought offshore export facilities within             port license applications. Regulations
                                                  applications.                                           the DWPA’s definition of a deepwater                  detailing the requirements of the
                                                     The final comment provided by COA                    port. Previously, the definition of a                 deepwater port license application
                                                  relates to the environmental review of                  deepwater port was limited to facilities              process; design, construction, and
                                                  indirect and cumulative impacts. COA                    transporting oil or natural gas to any                equipment; and port operations can be
                                                  stated that there are a number of                       State. The Secretary of Transportation                found in 33 CFR parts 148, 149 and 150.
                                                  indirect and cumulative impacts that                    must license the ownership,                           Additionally, it is noted that on April 9,
                                                  MARAD should consider with respect to                   construction and operation of a                       2015, the Coast Guard published in the
                                                  any export license application. They                    deepwater port, now including export                  Federal Register a Notice of Proposed
                                                  include the impacts of a facility                       facilities, pursuant to 33 U.S.C. 1503(a)             Rulemaking (80 FR 19118) updating 33
                                                  (operating with the functionality the                   and (b). This amendment will be                       CFR parts 148, 149 and 150. These
                                                  proponent seeks) upon (1) the natural                   implemented in accordance with                        regulations pertain to the application
                                                  aquatic environment, including from                     existing statutory and regulatory                     review process, planning,
                                                  increased vessel traffic and shipping                   requirements applicable to the DWPA.                  environmental review, design,
                                                  lane congestion, (2) air quality, both on               The CG&MT Act provided no other                       construction and operation of deepwater
                                                  and offshore, (3) the environment                       amendments to the DWPA.                               port facilities without specific regard to
                                                  onshore and proximate to the                               Pursuant to 33 U.S.C. 1501–1524,1 the              whether the facility imports or exports
                                                  distribution infrastructure, (4) the                    Maritime Administration (MARAD) and                   oil and/or natural gas products. With
                                                  environment in and around the                           U.S. Coast Guard (Coast Guard) jointly                the addition of oil and natural gas
                                                  extraction areas, and (5) the upstream                  process deepwater port license                        exportation under the amendment to the
                                                  (e.g., increased shale production and                   applications under delegations from the               DWPA, MARAD does not foresee any
                                                                                                          Secretary of Transportation (49 CFR                   reason to alter the deepwater port
                                                  fracking activities), downstream (e.g.,
                                                                                                          1.93(h)) and the Secretary of Homeland                licensing application process.
                                                  carbon emissions), and climate change
                                                                                                                                                                   Accordingly, MARAD, with the
                                                  impacts. Further, COA states that                       Security (Department of Homeland
                                                                                                                                                                concurrence of the Coast Guard, intends
                                                  MARAD should consider the proposed                      Security Delegation 0170.1(75)),
                                                                                                                                                                to use the existing Deepwater Port
                                                  activity’s impacts in conjunction with                  respectively. In general, the Coast Guard
                                                                                                                                                                regulations for the review, evaluation
                                                  impacts from other reasonably                           and MARAD are co-lead agencies for
                                                                                                                                                                and processing of any deepwater port
                                                  foreseeable projects, such as wind farms                compliance with NEPA, 42 U.S.C. 4321
                                                                                                                                                                license application involving the export
                                                  and other pipelines within the                          through 4347. The Coast Guard also is                 of oil or natural gas from domestic
                                                  designated application area. As noted                   responsible for matters related to                    sources within the United States as
                                                  above, the Coast Guard and MARAD’s                      navigation safety, engineering and safety             provided for in 33 CFR parts 148, 149
                                                  environmental review of the proposed                    standards, and facility operations and                and 150.
                                                  action includes all direct, indirect and                inspections. MARAD is responsible for                    A deepwater port license issued by
                                                  cumulative impacts. This review must                    determining citizenship and financial                 MARAD does, not, by itself, convey an
                                                  cover all offshore and onshore                          capability of the potential licensees,                authorization to export crude oil or
                                                  components and support activities                       preparing the Record of Decision (ROD),               natural gas. Pursuant to 15 CFR 754.2,
                                                  associated with the deepwater port. It is               and issuing or denying the license. The               a license granted by the U.S.
                                                  important to note, however, that every                  Coast Guard and MARAD share various                   Department of Commerce (DOC) would
                                                  deepwater port application is                           other responsibilities under the DWPA,                generally be required for exports of
                                                  considered on a case-by-case basis.                     including the duty to consult with other              crude oil. Exports of natural gas,
                                                  While the DWPA provides a                               Federal or State agencies. Such agencies              including LNG, will generally require
                                                  comprehensive definition of what                        include the U.S. Department of Energy                 authorization from DOE pursuant to
                                                  constitutes a deepwater port, it would                  (DOE), which is responsible for                       Section 3 of the Natural Gas Act of 1938.
                                                  be inappropriate to try and set forth a                 authorizing the transaction of importing              Exports of refined petroleum products
                                                  specific list of shore-based and offshore               or exporting liquefied natural gas (LNG)              do not generally require an export
                                                  components that may be considered as                    to or from the United States; the Federal             license. MARAD licenses the deepwater
                                                  part of an application and made part of                 Energy Regulatory Commission (FERC),                  port facility, while DOC and DOE
                                                  the NEPA analysis.                                      responsible for authorizing onshore                   approve the transactions that utilize the
                                                     The final commenter, a private                       LNG import or export facilities,                      facility.
                                                  citizen, supported the proposed policy                  including the construction and                           Any deepwater port applicant who
                                                  and requested that MARAD follow the                     operation of onshore natural gas                      proposes to export oil or natural gas
                                                  precedent established by former                         pipelines that interconnect with                      from domestic sources within the
                                                  MARAD Administrator Sean                                deepwater ports; and the Pipeline and                 United States must submit an export-
                                                                                                          Hazardous Materials Safety
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                                                  Connaughton and link application                                                                              specific comprehensive license
                                                  approval to the use of U.S. vessels and                 Administration (PHMSA), which is                      application conforming to all
                                                  U.S. crews to export liquefied natural                  responsible for ensuring the safe                     established and applicable deepwater
                                                  gas (LNG). Under this policy, MARAD                                                                           port licensing requirements and
                                                                                                            1 When the Coast Guard moved from the
                                                  will continue its efforts to support the                                                                      regulations. Note that 33 CFR 148.5
                                                                                                          Department of Transportation to the Department of
                                                  use of U.S. flag vessels and U.S. crews                 Homeland Security, its responsibilities for
                                                                                                                                                                defines ‘‘oil’’ as ‘‘petroleum, crude oil
                                                  in the operation of all deepwater port                  deepwater ports transferred with it. See 6 U.S.C.     and any substance refined from
                                                  licensed facilities.                                    468(b).                                               petroleum or crude oil.’’ Thus, this


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                                                  26324                           Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices

                                                  requirement would also cover a                          or natural gas. It is consistent with the             intrastate gas transmission pipelines (as
                                                  deepwater port intended for the export                  existing process previously established               defined in 49 CFR part 192) and
                                                  of refined products.                                    for the review of import applications.                hazardous liquid pipelines carrying
                                                     The considerable technical,                          This policy acknowledges that these                   crude oil, refined petroleum products,
                                                  operational and environmental                           existing statutory and regulatory                     highly volatile liquids, biofuel, and
                                                  differences between import and export                   procedures are sufficient and                         carbon dioxide (as defined in 49 CFR
                                                  operations for oil or natural gas projects              appropriate for the processing of export              part 195) a share of the total Federal
                                                  are such that any licensed deepwater                    applications.                                         pipeline safety program costs in
                                                  port facility operator or any proponent                                                                       proportion to the number of miles of
                                                                                                            Authority: The Coast Guard and Maritime
                                                  of a deepwater port that has an                         Transportation Act of 2012; The Deepwater             pipeline for each operator. In
                                                  application in process who proposes to                  Port Act of 1974, as amended, 33 U.S.C.               accordance with COBRA, PHMSA also
                                                  convert from import to export                           1501–1524; 49 CFR 1.93.                               assesses user fees on LNG facilities (as
                                                  operations must submit a new license                                                                          defined in 49 CFR part 193).
                                                                                                            Dated: May 1, 2015.
                                                  application (including application fee)                                                                          On July 16, 1986, the agency
                                                  and conform to all licensing                              By Order of the Maritime Administrator.             published in the Federal Register a
                                                  requirements and regulations in effect at               Thomas M. Hudson, Jr.,                                notice for pipeline safety user fees to
                                                  such time of application. For licensed                  Secretary, Maritime Administration.                   describe the agency’s implementation of
                                                  deepwater ports, an application to                      [FR Doc. 2015–10619 Filed 5–6–15; 8:45 am]            the requirements set forth in the COBRA
                                                  convert from import operations to                       BILLING CODE 4910–81–P                                Act (51 FR 25782) (the user fee notice).
                                                  export operations requires, at a                                                                              With respect to pipelines, the user fee
                                                  minimum: (1) Approval from DOE or                                                                             notice adopted pipeline mileage as the
                                                  other approval authority to export oil or               DEPARTMENT OF TRANSPORTATION                          fee basis. With respect to the LNG
                                                  natural gas to free trade and/or non-free                                                                     facility portion of the gas program costs,
                                                  trade agreement countries; (2) a new or                 Pipeline and Hazardous Materials                      a fee basis other than mileage was
                                                  supplemental environmental impact                       Safety Administration                                 needed. For these facilities, the agency
                                                  statement or environmental assessment                   [Docket No. PHMSA–2014–0051]                          decided that storage capacity was the
                                                  pursuant to NEPA that assesses the                                                                            most readily measurable indicator of
                                                  environmental impacts of the proposed                   Pipeline Safety: Liquefied Natural Gas                usage as well as allocation of agency
                                                  change in operations; and (3) a revised                 Facility User Fee Rate Increase                       resources. In order to ensure that user
                                                  operations manual that fully describes                                                                        fees assessed for each type of pipeline
                                                  the proposed change in port operations.                 ACTION:   Notice of agency action.                    facility have a reasonable relationship to
                                                  Only after all required application                                                                           the allocation of departmental
                                                  processes are completed, and MARAD                      AGENCY:   Pipeline and Hazardous                      resources, the user fee notice
                                                  issues a ROD or Finding Of No                           Materials Safety Administration,                      established five percent of total gas
                                                  Significant Impact (FONSI) that                         Department of Transportation.                         program costs as the appropriate level
                                                                                                          SUMMARY: On July 3, 2014, (79 FR
                                                  explicitly addresses the nine mandatory                                                                       and established billing tiers based on
                                                  criteria specified in the DWPA (33                      38124) the Pipeline and Hazardous                     the storage capacity of LNG facilities.
                                                  U.S.C. 1503(c)), may the Maritime                       Materials Safety Administration                          In 2014, PHMSA determined that
                                                  Administrator approve, approve with                     (PHMSA) published a notice in this                    certain changes to the calculation table
                                                  conditions, or disapprove an application                docket to advise all liquefied natural gas            were necessary because the LNG rates
                                                  to export oil or natural gas through a                  facility (LNG) operators subject to                   had not been adjusted to reflect the
                                                  deepwater port.                                         PHMSA user fee billing of a change in                 increase in gas program costs since
                                                     For deepwater ports that already have                the LNG user fee rates to align these                 1986. On July 3, 2014, (79 FR 38124)
                                                  a license to import oil or natural gas, if              rates with the actual allocation of                   PHMSA issued a Federal Register
                                                  the Maritime Administrator approves an                  PHMSA resources to LNG program                        notice describing PHMSA’s planned
                                                  application to convert to export                        costs. PHMSA is publishing this notice                approach to updating the LNG user fee
                                                  operations, the licensee must surrender                 to explain changes PHMSA has made to                  assessments. The notice described
                                                  the existing license, and the Maritime                  the rate plan described in the July notice            PHMSA’s intention to update the rate
                                                  Administrator will issue a new license,                 in response to the comments received                  for each of the five storage capacity tiers
                                                  as outlined above, with conditions                      and to communicate PHMSA’s final                      in the table to arrive at five percent of
                                                  appropriate to all intended activities,                 LNG user fee plan.                                    total gas program costs when the tiers
                                                  including, if applicable, authority to                  FOR FURTHER INFORMATION CONTACT:                      are added together. PHMSA stated that
                                                  engage in bidirectional oil or natural gas              Blaine Keener by telephone at 202–366–                it plans to implement the increase in the
                                                  import and export operations. For                       0970, by email at blaine.keener@dot.gov,              LNG facility obligation in three equal
                                                  applications to site, construct and                     or by mail at U.S. Department of                      increments starting in 2015 and invited
                                                  operate a new deepwater port, the                       Transportation, PHMSA, PHP–30, 1200                   comments. Based on the comments
                                                  Maritime Administrator will issue a                     New Jersey Avenue SE., Washington,                    received, PHMSA has revised its
                                                  new license with conditions appropriate                 DC 20590–0001.                                        approach and is now establishing 1.6
                                                  to the applied-for activity.                                                                                  percent of total gas program costs as the
                                                                                                          Background
                                                                                                                                                                appropriate level and has determined
                                                  Policy Analysis and Notices                               The Consolidated Omnibus Budget                     that at this lower level there is no longer
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                                                    MARAD is publishing this policy in                    Reconciliation Act (COBRA) of 1986                    a need to implement the increase over
                                                  the Federal Register to indicate how it                 (Pub. L. 99–272, Sec. 7005) codified at               3 years.
                                                  plans to exercise the discretionary                     Section 60301 of Title 49, United States              SUPPLEMENTARY INFORMATION:
                                                  authority provided by the DWPA, as                      Code, authorizes the assessment and
                                                  amended by the CG&MT Act. This                          collection of user fees to fund the                   Summary of Comments on the July 3,
                                                  policy establishes an administrative                    pipeline safety activities conducted                  2014 Notice
                                                  process for the review of deepwater port                under Chapter 601 of Title 49. PHMSA                    During the 2-month response period,
                                                  applications that propose to export oil                 assesses each operator of interstate and              PHMSA received comments on the


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Document Created: 2015-12-16 07:50:11
Document Modified: 2015-12-16 07:50:11
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionFinal policy.
DatesThis policy is effective May 7, 2015.
ContactYou may contact Yvette M. Fields, Director, Office of Deepwater Ports and Offshore Activities, Maritime Administration, at (202) 366-0926. You may send mail to Ms. Fields at Maritime Administration, 1200 New Jersey Avenue SE., MAR 530, W21-309, Washington, DC 20590-0001. You may send electronic mail to [email protected] If you have questions on viewing the Docket, call Docket Operations, telephone: (202) 366-9826.
FR Citation80 FR 26321 

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