83_FR_28961 83 FR 28841 - Policy Statement Regarding Long-Term Authorizations To Export Natural Gas to Non-Free Trade Agreement Countries

83 FR 28841 - Policy Statement Regarding Long-Term Authorizations To Export Natural Gas to Non-Free Trade Agreement Countries

DEPARTMENT OF ENERGY

Federal Register Volume 83, Issue 120 (June 21, 2018)

Page Range28841-28843
FR Document2018-13427

The Department of Energy (DOE) stands behind the long-term authorizations it has issued under the Natural Gas Act, approving the export of natural gas (including liquefied natural gas) to non-free trade agreement countries. DOE is firmly committed to the durability and stability of the non-FTA export authorizations it has granted to date, and to any export authorizations issued by DOE in the future.

Federal Register, Volume 83 Issue 120 (Thursday, June 21, 2018)
[Federal Register Volume 83, Number 120 (Thursday, June 21, 2018)]
[Notices]
[Pages 28841-28843]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13427]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY


Policy Statement Regarding Long-Term Authorizations To Export 
Natural Gas to Non-Free Trade Agreement Countries

AGENCY: Office of Fossil Energy, Department of Energy.

ACTION: Policy statement.

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

SUMMARY: The Department of Energy (DOE) stands behind the long-term 
authorizations it has issued under the Natural Gas Act, approving the 
export of natural gas (including liquefied natural

[[Page 28842]]

gas) to non-free trade agreement countries. DOE is firmly committed to 
the durability and stability of the non-FTA export authorizations it 
has granted to date, and to any export authorizations issued by DOE in 
the future.

DATES: This policy statement is applicable on June 21, 2018.

FOR FURTHER INFORMATION CONTACT: Amy Sweeney, U.S. Department of Energy 
(FE-34), Office of Regulation and International Engagement, Office of 
Fossil Energy, Forrestal Building, Room 3E-042, 1000 Independence 
Avenue SW, Washington, DC 20585; (202) 586-2627; or Cassandra Bernstein 
or Ronald (R.J.) Colwell, U.S. Department of Energy (GC-76), Office of 
the Assistant General Counsel for Electricity and Fossil Energy, 
Forrestal Building, Room 6D-033, 1000 Independence Ave. SW, Washington, 
DC 20585; (202) 586-9793 or (202) 586-8499.

SUPPLEMENTARY INFORMATION:

I. Background

A. Statutory Background

    The Department of Energy (DOE), Office of Fossil Energy (FE), is 
responsible for authorizing exports of domestically produced natural 
gas, including liquefied natural gas (LNG), to foreign nations pursuant 
to section 3 of the Natural Gas Act (NGA).\1\ Under section 3(a) of the 
NGA, DOE/FE reviews applications to export natural gas to countries 
with which the United States has not entered into a free trade 
agreement (FTA) requiring national treatment for trade in natural gas 
and with which trade is not prohibited by U.S. law or policy (non-FTA 
countries).\2\ NGA section 3(a) states that DOE ``shall issue such 
order upon application, unless, after opportunity for hearing, it finds 
that the proposed exportation or importation will not be consistent 
with the public interest.'' \3\ DOE has consistently interpreted this 
provision as creating a rebuttable presumption that a proposed export 
of natural gas is in the public interest.\4\ Accordingly, DOE will 
conduct an informal adjudication and grant an application to export LNG 
to non-FTA countries under NGA section 3(a) unless DOE finds that the 
proposed exportation will not be consistent with the public 
interest.\5\ Additionally, under section 16 of the NGA, DOE is 
authorized to ``prescribe, issue, make, amend, and rescind such 
[export] orders . . . as it may find necessary or appropriate . . .'' 
to satisfy its statutory responsibilities.\6\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 717b.
    \2\ This policy statement applies to authorizations to export 
natural gas to non-FTA countries under section 3(a) of the NGA, 15 
U.S.C. 717b(a) (non-FTA authorizations). With regard to exports to 
FTA countries, NGA section 3(c) was amended by section 201 of the 
Energy Policy Act of 1992 (Pub. L. 102-486) to require that FTA 
applications ``shall be deemed to be consistent with the public 
interest'' and granted ``without modification or delay.'' 15 U.S.C. 
717b(c).
    \3\ 15 U.S.C. 717b(a).
    \4\ See Sierra Club v. U.S. Dep't of Energy, 867 F.3d 189, 203 
(D.C. Cir. 2017) (``We have construed [NGA section 3(a)] as 
containing a `general presumption favoring [export] authorization.' 
'') (quoting W. Va. Pub. Servs. Comm'n v. U.S. Dep't of Energy, 681 
F.2d 847, 856 (D.C. Cir. 1982)).
    \5\ Before reaching a final decision on any non-FTA application, 
DOE must also comply with the National Environmental Policy Act of 
1969 (NEPA), 42 U.S.C. 4321 et seq. See, e.g., Eagle LNG Partners 
Jacksonville II LLC, DOE/FE Order No. 4078, FE Docket No FE Docket 
No. 17-79-LNG, Opinion and Order Granting Long-Term, Multi-Contract 
Authorization to Export Liquefied Natural Gas in ISO Containers 
Loaded at the Eagle Maxville Facility in Jacksonville, Florida, and 
Exported by Vessel to Free Trade Agreement and Non-Free Trade 
Agreement Nations, at 34-37 (Sept. 15, 2017).
    \6\ 15 U.S.C. 717o.
---------------------------------------------------------------------------

B. Regulatory Background

    To date, DOE/FE has issued 29 final long-term authorizations to 
export LNG and compressed natural gas to non-FTA countries in a 
cumulative volume totaling 21.35 billion cubic feet per day of natural 
gas (approximately 7.79 trillion cubic feet per year).\7\ Each of these 
authorizations has a term of 20 years, with additional time provided 
for LNG export operations to commence. In each authorization, DOE/FE 
has included a statement acknowledging its authority under NGA section 
16 to ``make, amend, and rescind such [export] orders . . . as it may 
find necessary or appropriate . . . .'' to satisfy its statutory 
responsibilities.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 717b(a); see Eagle LNG Partners Jacksonville II 
LLC, DOE/FE Order No. 4078, at 34-37.
    \8\ Eagle LNG Partners Jacksonville II LLC, DOE/FE Order No. 
4078, at 33 n.98 (quoting 15 U.S.C. 717o); see also Sabine Pass 
Liquefaction, LLC, DOE/FE Order No. 2961, FE Docket No. 10-111-LNG, 
Opinion and Order Conditionally Granting Long-Term Authorization to 
Export Liquefied Natural Gas from Sabine Pass LNG Terminal to Non-
Free Trade Agreement Nations, at 33 n.45 (quoting 15 U.S.C. 717o) 
(May 20, 2011).
---------------------------------------------------------------------------

    In these authorizations, DOE has stated that ``[s]ome commenters 
[have] asked DOE to clarify the circumstances under which the agency 
would exercise its authority to revoke (in whole or in part) previously 
issued LNG export authorizations.'' \9\ In response, DOE has stated 
that it ``cannot precisely identify all the circumstances under which 
such action would be taken.'' \10\ DOE has maintained, however, that `` 
`[i]n the event of any unforeseen developments of such significant 
consequence as to put the public interest at risk, DOE/FE is fully 
authorized to take action as necessary to protect the public interest.' 
'' \11\
---------------------------------------------------------------------------

    \9\ Eagle LNG Partners Jacksonville II LLC, DOE/FE Order No. 
4078, at 33 n.98.
    \10\ Id.
    \11\ Id. (quoting Sabine Pass Liquefaction, LLC, DOE/FE Order 
No. 2961, at 33 n.45).
---------------------------------------------------------------------------

    DOE/FE has never rescinded a long-term non-FTA export authorization 
for any reason. Further, DOE has no record of ever having vacated or 
rescinded an authorization to import or export natural gas over the 
objections of the authorization holder.\12\
---------------------------------------------------------------------------

    \12\ See Ltr. from Paula Gant, U.S. Dep't of Energy, to Sen. 
Lisa Murkowski, at 1 (Oct. 17, 2013), available at: https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=9E99E412-CE05-449D-8893-DC8D64C32D02 (last viewed June 8, 2018).
---------------------------------------------------------------------------

    DOE has rescinded (or ``vacated'') one long-term LNG export 
authorization to FTA countries (see supra note 2)--DOE/FE Order No. 
3482, issued to Louisiana LNG Energy LLC (LLNG) on August 28, 2014.\13\ 
DOE/FE vacated this order in 2017 on the basis of LLNG's own prolonged 
inaction, after LLNG effectively self-terminated its proposed LNG 
export project.\14\ Specifically, LLNG: (i) Failed to participate in 
its on-going FERC process, such that FERC terminated LLNG's pre-filing 
review process; \15\ and (ii) failed to comply with its DOE/FE 
reporting obligations under the terms of its FTA order, for a period of 
more than 18 months.\16\ Throughout this 18-month time period, DOE/FE 
made repeated efforts to contact LLNG, with no success.\17\ Even after 
DOE/FE issued an Order to Show Cause--inviting LLNG to respond and 
explain the circumstances--LLNG took no action.\18\ The evidence 
clearly showed

[[Page 28843]]

that LLNG neither wished to move forward with its proposed LNG export 
facility nor to maintain its FTA authorization.\19\ DOE/FE therefore 
vacated LLNG's FTA authorization under NGA section 16, but it did so 
without objection by LLNG and without prejudice to LLNG, should LLNG 
wish to seek an export LNG authorization in the future.\20\
---------------------------------------------------------------------------

    \13\ Louisiana LNG Energy LLC, DOE/FE Order No. 3482, FE Docket 
No. 14-19-LNG, Order Granting Long-Term, Multi-Contract 
Authorization to Export Liquefied Natural Gas by Vessel from the 
Proposed Louisiana LNG Energy Project in Plaquemines Parish, 
Louisiana, to Free Trade Agreement Nations (Aug. 28, 2014).
    \14\ See Louisiana LNG Energy LLC, DOE/FE Order No. 3482-A, FE 
Docket Nos. 14-19-LNG & 14-29-LNG, Order Vacating Long-Term, Multi-
Contract Authorization to Export Liquefied Natural Gas by Vessel to 
Free Trade Agreement Nations and Dismissing Application to Export 
Liquefied Natural Gas by Vessel to Non-Free Trade Agreement Nations, 
at 2-4 (July 24, 2017); see also Louisiana LNG Energy LLC, FE Docket 
Nos. 14-19-LNG & 14-29-LNG, Order to Show Cause, at 2-5 (June 12, 
2017).
    \15\ See Letter from Ann Miles, Director of FERC's Office of 
Energy Projects, to Martin Houston, Chairman of LLNG, Re: Pre-Filing 
Review Termination of the Mississippi River LNG Project, FERC Docket 
No. PF14-17-000 (Dec. 13, 2016) (FERC observing that LLNG ``has not 
filed the application needed for staff to continue the environmental 
review of [the] project''), cited in Louisiana LNG Energy LLC, DOE/
FE Order No. 3482-A, at 3 n.9.
    \16\ See Louisiana LNG Energy LLC, DOE/FE Order No. 3482-A, at 
2-3.
    \17\ See id. at 3.
    \18\ See Louisiana LNG Energy LLC, Order to Show Cause, at 5 
(providing 30 days for LLNG to show cause, in writing, why its 
authorization should not be vacated--to which LLNG never responded); 
Louisiana LNG Energy LLC, DOE/FE Order No. 3482-A, at 3.
    \19\ See Louisiana LNG Energy LLC, DOE/FE Order No. 3482-A, at 
3-4.
    \20\ See id. at 4 (also dismissing LLNG's pending non-FTA 
application without prejudice).
---------------------------------------------------------------------------

    The LLNG proceeding was a highly unusual scenario where all 
evidence indicated that the company was no longer pursuing its proposed 
LNG export project and had, in fact, ceased to exist as a commercial 
operation. In vacating LLNG's FTA order without prejudice, DOE 
responded appropriately in both implementing its statutory authority 
under NGA section 16 and in upholding the integrity of its natural gas 
regulatory program under 10 CFR part 590.

II. DOE/FE Policy on Non-FTA Export Authorizations

    Potential importers of U.S. LNG and financiers of LNG export 
projects (collectively, interested stakeholders) have expressed concern 
about DOE/FE rescinding one or more non-FTA export authorizations in 
the future. In raising this concern, they point to the language in the 
existing non-FTA authorizations (quoted above) in which DOE/FE has 
observed its authority under NGA section 16 to ``make, amend, and 
rescind such [export] orders . . . as it may find necessary or 
appropriate . . . .'' Citing DOE/FE's language, they have asked what 
potential ``developments'' in the U.S. LNG market could rise to the 
level of ``such significant consequence as to put the public interest 
at risk''--such that DOE would unilaterally rescind one or more non-FTA 
export authorizations or take other action to protect the public 
interest under NGA section 3(a).
    As a preliminary matter, DOE/FE wishes to allay concerns about the 
security of existing (or future) non-FTA export authorizations. In this 
policy statement, DOE/FE affirms its commitment to all export 
authorizations issued under the NGA, including long-term authorizations 
approving the export of LNG to non-FTA countries. As indicated above, 
DOE/FE currently has issued 29 final non-FTA export authorizations, 
based on a thorough consideration of the public interest under section 
3(a) of the NGA. In each of these proceedings, DOE/FE reviewed a 
substantial administrative record addressing factors including economic 
impacts, international impacts, security of natural gas supply, and 
environmental impacts, among others. In granting each application, DOE/
FE concluded that exports of U.S. LNG will generate net economic 
benefits to the broader U.S. economy and will provide energy security 
and environmental benefits to the global community (including emerging 
economies presently reliant upon more carbon intensive fuels).\21\
---------------------------------------------------------------------------

    \21\ See, e.g., Eagle LNG Partners Jacksonville II LLC, DOE/FE 
Order No. 4078, at 23-38.
---------------------------------------------------------------------------

    DOE/FE stands firmly behind these factual findings and legal 
conclusions--many of which have been challenged and upheld in federal 
court.\22\ Authorization holders, as well as any interested 
stakeholders, thus should have the utmost confidence in the validity of 
DOE/FE's LNG export authorizations for the full term of each non-FTA 
order. Indeed, as noted above, DOE has never rescinded a non-FTA export 
authorization for any reason. DOE has vacated one FTA order under NGA 
section 16, but the circumstances of that proceeding were based solely 
on the inaction of the authorization holder.\23\
---------------------------------------------------------------------------

    \22\ In 2017, the U.S. Court of Appeals for the District of 
Columbia Circuit issued four decisions upholding non-FTA export 
authorizations issued by DOE/FE under NGA section 3(a). See, e.g., 
Sierra Club vs. U.S. Dep't of Energy, 867 F.3d 189; Sierra Club v. 
U.S. Dep't of Energy, Nos. 16-1186, 16-1252, 16-1253, 703 Fed. Appx. 
1 (D.C. Cir. Nov. 1, 2017).
    \23\ See supra at 4-5.
---------------------------------------------------------------------------

    As a matter of law, DOE preserves its authority to take action as 
necessary or appropriate to carry out its duties under the NGA.\24\ 
However, DOE does not foresee a scenario where it would rescind one or 
more non-FTA authorizations. The United States government takes very 
seriously the investment-backed expectations of private parties subject 
to its regulatory jurisdiction. In particular, DOE understands the far-
ranging economic investments and natural gas supply commitments 
associated with these authorizations over their full term--affecting 
both U.S. and global interests. DOE emphasizes that it remains 
committed to the durability and stability of the export authorizations 
it has granted under the NGA, as well as to supporting the approved 
export of U.S. natural gas around the world.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 717o.

    Issued in Washington, DC, on June 15, 2018.
Steven E. Winberg,
Assistant Secretary, Office of Fossil Energy.
[FR Doc. 2018-13427 Filed 6-19-18; 4:15 pm]
BILLING CODE 6450-01-P



                                                                            Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices                                                  28841

                                              ID number and title, by the following                   accepted. Written requests for                         mathematics, reading, writing, science,
                                              method:                                                 information or comments submitted by                   U.S. history, civics, geography,
                                                • Federal eRulemaking Portal: http://                 postal mail or delivery should be                      economics, technology and engineering
                                              www.regulations.gov. Follow the                         addressed to the Director of the                       literacy (TEL), and the arts. The
                                              instructions for submitting comments.                   Information Collection Clearance                       National Assessment of Educational
                                                 Instructions: All submissions received               Division, U.S. Department of Education,                Progress Authorization Act (Pub. L.
                                              must include the agency name, Docket                    400 Maryland Avenue SW, LBJ, Room                      107–279 Title III, section 303) requires
                                              ID number, and title for this Federal                   206–06, Washington, DC 20202–4537.                     the assessment to collect data on
                                              Register document. The general policy                   FOR FURTHER INFORMATION CONTACT: For                   specified student groups and
                                              for comments and other submissions                      specific questions related to collection               characteristics, including information
                                              from members of the public is to make                   activities, please contact Kashka                      organized by race/ethnicity, gender,
                                              these submissions available for public                  Kubzdela, 202–245–7377 or email                        socio-economic status, disability, and
                                              viewing on the internet at http://                      NCES.Information.Collections@ed.gov.                   limited English proficiency. It requires
                                              www.regulations.gov as they are                                                                                fair and accurate presentation of
                                                                                                      SUPPLEMENTARY INFORMATION: The
                                              received without change, including any                                                                         achievement data and permits the
                                                                                                      Department of Education (ED), in
                                              personal identifiers or contact                                                                                collection of background, noncognitive,
                                                                                                      accordance with the Paperwork
                                              information.                                                                                                   or descriptive information that is related
                                                 DOD Clearance Officer: Mr. Frederick                 Reduction Act of 1995 (PRA) (44 U.S.C.
                                                                                                                                                             to academic achievement and aids in
                                              Licari.                                                 3506(c)(2)(A)), provides the general
                                                                                                                                                             fair reporting of results. The intent of
                                                 Requests for copies of the information               public and Federal agencies with an
                                                                                                                                                             the law is to provide representative
                                              collection proposal should be sent to                   opportunity to comment on proposed,
                                                                                                                                                             sample data on student achievement for
                                              Mr. Licari at whs.mc-alex.esd.mbx.dd-                   revised, and continuing collections of                 the nation, the states, and
                                              dod-information-collections@mail.mil.                   information. This helps the Department                 subpopulations of students and to
                                                                                                      assess the impact of its information                   monitor progress over time. The nature
                                                Dated: June 15, 2018.                                 collection requirements and minimize
                                              Aaron T. Siegel,                                                                                               of NAEP is that burden alternates from
                                                                                                      the public’s reporting burden. It also                 a relatively low burden in national-level
                                              Alternate OSD Federal Register, Liaison                 helps the public understand the
                                              Officer, Department of Defense.                                                                                administration years to a substantial
                                                                                                      Department’s information collection                    burden increase in state-level
                                              [FR Doc. 2018–13288 Filed 6–20–18; 8:45 am]             requirements and provide the requested                 administration years when the sample
                                              BILLING CODE 5001–06–P                                  data in the desired format. ED is                      has to allow for estimates for individual
                                                                                                      soliciting comments on the proposed                    states and some of the large urban
                                                                                                      information collection request (ICR) that              districts. The request to conduct NAEP
                                              DEPARTMENT OF EDUCATION                                 is described below. The Department of                  2017–2019 was approved in August
                                                                                                      Education is especially interested in                  2016, with the latest change requests
                                              [Docket No.: ED–2018–ICCD–0044]
                                                                                                      public comment addressing the                          approved in March 2018 (OMB# 1850–
                                              Agency Information Collection                           following issues: (1) Is this collection               0928 v.1–9). This request updates the
                                              Activities; Submission to the Office of                 necessary to the proper functions of the               scope, sampling, procedures, and
                                              Management and Budget for Review                        Department; (2) will this information be               materials to be used in NAEP in 2019
                                              and Approval; Comment Request;                          processed and used in a timely manner;                 and 2020, including operational
                                              National Assessment of Educational                      (3) is the estimate of burden accurate;                assessments, pilot tests, and special
                                              Progress (NAEP) 2019 and 2020                           (4) how might the Department enhance                   studies. The NAEP results will be
                                                                                                      the quality, utility, and clarity of the               reported to the public through the
                                              AGENCY:   National Center for Education                 information to be collected; and (5) how               Nation’s Report Card as well as other
                                              Statistics (NCES), Department of                        might the Department minimize the                      online NAEP tools.
                                              Education (ED).                                         burden of this collection on the
                                              ACTION: Notice.                                         respondents, including through the use                   Dated: June 18, 2018.
                                                                                                      of information technology. Please note                 Kate Mullan,
                                              SUMMARY:   In accordance with the                       that written comments received in                      Acting Director, Information Collection
                                              Paperwork Reduction Act of 1995, ED is                  response to this notice will be                        Clearance Division, Office of the Chief Privacy
                                              proposing a revision of an existing                     considered public records.                             Officer, Office of Management.
                                              information collection.                                    Title of Collection: National                       [FR Doc. 2018–13351 Filed 6–20–18; 8:45 am]
                                              DATES: Interested persons are invited to                Assessment of Educational Progress                     BILLING CODE 4000–01–P
                                              submit comments on or before July 23,                   (NAEP) 2019 and 2020.
                                              2018.                                                      OMB Control Number: 1850–0928.
                                              ADDRESSES: To access and review all the                    Type of Review: A revision of an                    DEPARTMENT OF ENERGY
                                              documents related to the information                    existing information collection.
                                              collection listed in this notice, please                   Respondents/Affected Public:                        Policy Statement Regarding Long-
                                              use http://www.regulations.gov by                       Individuals or Households.                             Term Authorizations To Export Natural
                                              searching the Docket ID number ED–                         Total Estimated Number of Annual                    Gas to Non-Free Trade Agreement
                                              2018–ICCD–0044. Comments submitted                      Responses: 712,888.                                    Countries
                                              in response to this notice should be                       Total Estimated Number of Annual                    AGENCY:  Office of Fossil Energy,
                                              submitted electronically through the                    Burden Hours: 379,934.                                 Department of Energy.
amozie on DSK3GDR082PROD with NOTICES1




                                              Federal eRulemaking Portal at http://                      Abstract: The National Assessment of                ACTION: Policy statement.
                                              www.regulations.gov by selecting the                    Educational Progress (NAEP),
                                              Docket ID number or via postal mail,                    conducted by the National Center for                   SUMMARY:  The Department of Energy
                                              commercial delivery, or hand delivery.                  Education Statistics (NCES), is a                      (DOE) stands behind the long-term
                                              Please note that comments submitted by                  federally authorized survey of student                 authorizations it has issued under the
                                              fax or email and those submitted after                  achievement at grades 4, 8, and 12 in                  Natural Gas Act, approving the export of
                                              the comment period will not be                          various subject areas, such as                         natural gas (including liquefied natural


                                         VerDate Sep<11>2014   17:22 Jun 20, 2018   Jkt 244001   PO 00000   Frm 00041   Fmt 4703   Sfmt 4703   E:\FR\FM\21JNN1.SGM   21JNN1


                                              28842                         Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices

                                              gas) to non-free trade agreement                        DOE will conduct an informal                           is fully authorized to take action as
                                              countries. DOE is firmly committed to                   adjudication and grant an application to               necessary to protect the public
                                              the durability and stability of the non-                export LNG to non-FTA countries under                  interest.’ ’’ 11
                                              FTA export authorizations it has granted                NGA section 3(a) unless DOE finds that                    DOE/FE has never rescinded a long-
                                              to date, and to any export authorizations               the proposed exportation will not be                   term non-FTA export authorization for
                                              issued by DOE in the future.                            consistent with the public interest.5                  any reason. Further, DOE has no record
                                              DATES: This policy statement is                         Additionally, under section 16 of the                  of ever having vacated or rescinded an
                                              applicable on June 21, 2018.                            NGA, DOE is authorized to ‘‘prescribe,                 authorization to import or export
                                              FOR FURTHER INFORMATION CONTACT:                        issue, make, amend, and rescind such                   natural gas over the objections of the
                                              Amy Sweeney, U.S. Department of                         [export] orders . . . as it may find                   authorization holder.12
                                              Energy (FE–34), Office of Regulation                    necessary or appropriate . . .’’ to                       DOE has rescinded (or ‘‘vacated’’) one
                                              and International Engagement, Office of                 satisfy its statutory responsibilities.6               long-term LNG export authorization to
                                              Fossil Energy, Forrestal Building, Room                                                                        FTA countries (see supra note 2)—DOE/
                                                                                                      B. Regulatory Background                               FE Order No. 3482, issued to Louisiana
                                              3E–042, 1000 Independence Avenue
                                              SW, Washington, DC 20585; (202) 586–                       To date, DOE/FE has issued 29 final                 LNG Energy LLC (LLNG) on August 28,
                                              2627; or Cassandra Bernstein or Ronald                  long-term authorizations to export LNG                 2014.13 DOE/FE vacated this order in
                                              (R.J.) Colwell, U.S. Department of                      and compressed natural gas to non-FTA                  2017 on the basis of LLNG’s own
                                              Energy (GC–76), Office of the Assistant                 countries in a cumulative volume                       prolonged inaction, after LLNG
                                              General Counsel for Electricity and                     totaling 21.35 billion cubic feet per day              effectively self-terminated its proposed
                                              Fossil Energy, Forrestal Building, Room                 of natural gas (approximately 7.79                     LNG export project.14 Specifically,
                                              6D–033, 1000 Independence Ave. SW,                      trillion cubic feet per year).7 Each of                LLNG: (i) Failed to participate in its on-
                                              Washington, DC 20585; (202) 586–9793                    these authorizations has a term of 20                  going FERC process, such that FERC
                                              or (202) 586–8499.                                      years, with additional time provided for               terminated LLNG’s pre-filing review
                                                                                                      LNG export operations to commence. In                  process; 15 and (ii) failed to comply with
                                              SUPPLEMENTARY INFORMATION:
                                                                                                      each authorization, DOE/FE has                         its DOE/FE reporting obligations under
                                              I. Background                                           included a statement acknowledging its                 the terms of its FTA order, for a period
                                                                                                      authority under NGA section 16 to                      of more than 18 months.16 Throughout
                                              A. Statutory Background                                 ‘‘make, amend, and rescind such                        this 18-month time period, DOE/FE
                                                 The Department of Energy (DOE),                      [export] orders . . . as it may find                   made repeated efforts to contact LLNG,
                                              Office of Fossil Energy (FE), is                        necessary or appropriate . . . .’’ to                  with no success.17 Even after DOE/FE
                                              responsible for authorizing exports of                  satisfy its statutory responsibilities.8               issued an Order to Show Cause—
                                              domestically produced natural gas,                         In these authorizations, DOE has                    inviting LLNG to respond and explain
                                              including liquefied natural gas (LNG), to               stated that ‘‘[s]ome commenters [have]                 the circumstances—LLNG took no
                                              foreign nations pursuant to section 3 of                asked DOE to clarify the circumstances                 action.18 The evidence clearly showed
                                              the Natural Gas Act (NGA).1 Under                       under which the agency would exercise
                                              section 3(a) of the NGA, DOE/FE                         its authority to revoke (in whole or in                  11 Id. (quoting Sabine Pass Liquefaction, LLC,

                                              reviews applications to export natural                  part) previously issued LNG export                     DOE/FE Order No. 2961, at 33 n.45).
                                                                                                                                                               12 See Ltr. from Paula Gant, U.S. Dep’t of Energy,
                                              gas to countries with which the United                  authorizations.’’ 9 In response, DOE has
                                                                                                                                                             to Sen. Lisa Murkowski, at 1 (Oct. 17, 2013),
                                              States has not entered into a free trade                stated that it ‘‘cannot precisely identify             available at: https://www.energy.senate.gov/public/
                                              agreement (FTA) requiring national                      all the circumstances under which such                 index.cfm/files/serve?File_id=9E99E412-CE05-
                                              treatment for trade in natural gas and                  action would be taken.’’ 10 DOE has                    449D-8893-DC8D64C32D02 (last viewed June 8,
                                              with which trade is not prohibited by                   maintained, however, that ‘‘ ‘[i]n the                 2018).
                                                                                                                                                               13 Louisiana LNG Energy LLC, DOE/FE Order No.
                                              U.S. law or policy (non-FTA countries).2                event of any unforeseen developments
                                                                                                                                                             3482, FE Docket No. 14–19–LNG, Order Granting
                                              NGA section 3(a) states that DOE ‘‘shall                of such significant consequence as to                  Long-Term, Multi-Contract Authorization to Export
                                              issue such order upon application,                      put the public interest at risk, DOE/FE                Liquefied Natural Gas by Vessel from the Proposed
                                              unless, after opportunity for hearing, it                                                                      Louisiana LNG Energy Project in Plaquemines
                                              finds that the proposed exportation or                     5 Before reaching a final decision on any non-FTA   Parish, Louisiana, to Free Trade Agreement Nations
                                                                                                      application, DOE must also comply with the             (Aug. 28, 2014).
                                              importation will not be consistent with                                                                          14 See Louisiana LNG Energy LLC, DOE/FE Order
                                                                                                      National Environmental Policy Act of 1969 (NEPA),
                                              the public interest.’’ 3 DOE has                        42 U.S.C. 4321 et seq. See, e.g., Eagle LNG Partners   No. 3482–A, FE Docket Nos. 14–19–LNG & 14–29–
                                              consistently interpreted this provision                 Jacksonville II LLC, DOE/FE Order No. 4078, FE         LNG, Order Vacating Long-Term, Multi-Contract
                                              as creating a rebuttable presumption                    Docket No FE Docket No. 17–79–LNG, Opinion and         Authorization to Export Liquefied Natural Gas by
                                                                                                      Order Granting Long-Term, Multi-Contract               Vessel to Free Trade Agreement Nations and
                                              that a proposed export of natural gas is                Authorization to Export Liquefied Natural Gas in       Dismissing Application to Export Liquefied Natural
                                              in the public interest.4 Accordingly,                   ISO Containers Loaded at the Eagle Maxville            Gas by Vessel to Non-Free Trade Agreement
                                                                                                      Facility in Jacksonville, Florida, and Exported by     Nations, at 2–4 (July 24, 2017); see also Louisiana
                                                1 15 U.S.C. 717b.                                     Vessel to Free Trade Agreement and Non-Free            LNG Energy LLC, FE Docket Nos. 14–19–LNG & 14–
                                                2 This policy statement applies to authorizations     Trade Agreement Nations, at 34–37 (Sept. 15, 2017).    29–LNG, Order to Show Cause, at 2–5 (June 12,
                                              to export natural gas to non-FTA countries under           6 15 U.S.C. 717o.                                   2017).
                                                                                                         7 15 U.S.C. 717b(a); see Eagle LNG Partners           15 See Letter from Ann Miles, Director of FERC’s
                                              section 3(a) of the NGA, 15 U.S.C. 717b(a) (non-FTA
                                              authorizations). With regard to exports to FTA          Jacksonville II LLC, DOE/FE Order No. 4078, at 34–     Office of Energy Projects, to Martin Houston,
                                              countries, NGA section 3(c) was amended by              37.                                                    Chairman of LLNG, Re: Pre-Filing Review
                                              section 201 of the Energy Policy Act of 1992 (Pub.         8 Eagle LNG Partners Jacksonville II LLC, DOE/FE    Termination of the Mississippi River LNG Project,
                                              L. 102–486) to require that FTA applications ‘‘shall    Order No. 4078, at 33 n.98 (quoting 15 U.S.C. 717o);   FERC Docket No. PF14–17–000 (Dec. 13, 2016)
                                              be deemed to be consistent with the public interest’’   see also Sabine Pass Liquefaction, LLC, DOE/FE         (FERC observing that LLNG ‘‘has not filed the
amozie on DSK3GDR082PROD with NOTICES1




                                              and granted ‘‘without modification or delay.’’ 15       Order No. 2961, FE Docket No. 10–111–LNG,              application needed for staff to continue the
                                              U.S.C. 717b(c).                                         Opinion and Order Conditionally Granting Long-         environmental review of [the] project’’), cited in
                                                3 15 U.S.C. 717b(a).                                  Term Authorization to Export Liquefied Natural Gas     Louisiana LNG Energy LLC, DOE/FE Order No.
                                                4 See Sierra Club v. U.S. Dep’t of Energy, 867 F.3d   from Sabine Pass LNG Terminal to Non-Free Trade        3482–A, at 3 n.9.
                                              189, 203 (D.C. Cir. 2017) (‘‘We have construed          Agreement Nations, at 33 n.45 (quoting 15 U.S.C.         16 See Louisiana LNG Energy LLC, DOE/FE Order

                                              [NGA section 3(a)] as containing a ‘general             717o) (May 20, 2011).                                  No. 3482–A, at 2–3.
                                                                                                         9 Eagle LNG Partners Jacksonville II LLC, DOE/FE      17 See id. at 3.
                                              presumption favoring [export] authorization.’ ’’)
                                              (quoting W. Va. Pub. Servs. Comm’n v. U.S. Dep’t        Order No. 4078, at 33 n.98.                              18 See Louisiana LNG Energy LLC, Order to Show

                                              of Energy, 681 F.2d 847, 856 (D.C. Cir. 1982)).            10 Id.                                              Cause, at 5 (providing 30 days for LLNG to show



                                         VerDate Sep<11>2014   17:22 Jun 20, 2018   Jkt 244001   PO 00000   Frm 00042   Fmt 4703   Sfmt 4703   E:\FR\FM\21JNN1.SGM   21JNN1


                                                                            Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices                                                 28843

                                              that LLNG neither wished to move                        consideration of the public interest                     Issued in Washington, DC, on June 15,
                                              forward with its proposed LNG export                    under section 3(a) of the NGA. In each                 2018.
                                              facility nor to maintain its FTA                        of these proceedings, DOE/FE reviewed                  Steven E. Winberg,
                                              authorization.19 DOE/FE therefore                       a substantial administrative record                    Assistant Secretary, Office of Fossil Energy.
                                              vacated LLNG’s FTA authorization                        addressing factors including economic                  [FR Doc. 2018–13427 Filed 6–19–18; 4:15 pm]
                                              under NGA section 16, but it did so                     impacts, international impacts, security               BILLING CODE 6450–01–P
                                              without objection by LLNG and without                   of natural gas supply, and
                                              prejudice to LLNG, should LLNG wish                     environmental impacts, among others.
                                              to seek an export LNG authorization in                  In granting each application, DOE/FE                   ENVIRONMENTAL PROTECTION
                                              the future.20                                           concluded that exports of U.S. LNG will
                                                The LLNG proceeding was a highly                                                                             AGENCY
                                                                                                      generate net economic benefits to the
                                              unusual scenario where all evidence                     broader U.S. economy and will provide                  [EPA–HQ–OAR–2013–0566; FRL–9979–72–
                                              indicated that the company was no                       energy security and environmental                      OAR]
                                              longer pursuing its proposed LNG                        benefits to the global community
                                              export project and had, in fact, ceased                                                                        RIN 2060–AT68
                                                                                                      (including emerging economies
                                              to exist as a commercial operation. In                  presently reliant upon more carbon                     Public Hearing for and Extension of
                                              vacating LLNG’s FTA order without                       intensive fuels).21                                    Comment Period on Review of the
                                              prejudice, DOE responded appropriately
                                                                                                         DOE/FE stands firmly behind these                   Primary National Ambient Air Quality
                                              in both implementing its statutory
                                                                                                      factual findings and legal conclusions—                Standard for Sulfur Oxides
                                              authority under NGA section 16 and in
                                              upholding the integrity of its natural gas              many of which have been challenged                     AGENCY: Environmental Protection
                                              regulatory program under 10 CFR part                    and upheld in federal court.22                         Agency (EPA).
                                              590.                                                    Authorization holders, as well as any
                                                                                                                                                             ACTION: Notice of public hearing and
                                                                                                      interested stakeholders, thus should
                                              II. DOE/FE Policy on Non-FTA Export                                                                            extension of public comment period.
                                                                                                      have the utmost confidence in the
                                              Authorizations                                          validity of DOE/FE’s LNG export                        SUMMARY:    The Environmental Protection
                                                 Potential importers of U.S. LNG and                  authorizations for the full term of each               Agency (EPA) is announcing that a
                                              financiers of LNG export projects                       non-FTA order. Indeed, as noted above,                 public hearing will be held on the EPA’s
                                              (collectively, interested stakeholders)                 DOE has never rescinded a non-FTA                      proposed decision in its ‘‘Review of the
                                              have expressed concern about DOE/FE                     export authorization for any reason.                   Primary National Ambient Air Quality
                                              rescinding one or more non-FTA export                   DOE has vacated one FTA order under                    Standard for Sulfur Oxides,’’ which was
                                              authorizations in the future. In raising                NGA section 16, but the circumstances                  published in the Federal Register on
                                              this concern, they point to the language                of that proceeding were based solely on                June 8, 2018 (83 FR 26752). The EPA is
                                              in the existing non-FTA authorizations                  the inaction of the authorization                      proposing to retain the existing standard
                                              (quoted above) in which DOE/FE has                      holder.23                                              without revision. The hearing will be
                                              observed its authority under NGA                           As a matter of law, DOE preserves its               held on Tuesday, July 10, 2018, in
                                              section 16 to ‘‘make, amend, and                        authority to take action as necessary or               Washington, DC. The EPA is
                                              rescind such [export] orders . . . as it                                                                       additionally announcing a 17-day
                                                                                                      appropriate to carry out its duties under
                                              may find necessary or appropriate                                                                              extension of the comment period for
                                                                                                      the NGA.24 However, DOE does not
                                              . . . .’’ Citing DOE/FE’s language, they                                                                       this proposed decision. The original
                                                                                                      foresee a scenario where it would
                                              have asked what potential                                                                                      comment period was to end on July 23,
                                                                                                      rescind one or more non-FTA
                                              ‘‘developments’’ in the U.S. LNG market                                                                        2018. The extended comment period
                                                                                                      authorizations. The United States
                                              could rise to the level of ‘‘such                                                                              will now close on August 9, 2018.
                                                                                                      government takes very seriously the
                                              significant consequence as to put the
                                                                                                      investment-backed expectations of                      DATES: The public hearing will be held
                                              public interest at risk’’—such that DOE
                                                                                                      private parties subject to its regulatory              on July 10, 2018, in Washington, DC
                                              would unilaterally rescind one or more
                                                                                                      jurisdiction. In particular, DOE                       (see SUPPLEMENTARY INFORMATION for
                                              non-FTA export authorizations or take
                                                                                                      understands the far-ranging economic                   additional information on the public
                                              other action to protect the public
                                                                                                      investments and natural gas supply                     hearing). The comment period on the
                                              interest under NGA section 3(a).
                                                 As a preliminary matter, DOE/FE                      commitments associated with these                      proposed decision announced in the
                                              wishes to allay concerns about the                      authorizations over their full term—                   Federal Register on June 8, 2018 (83 FR
                                              security of existing (or future) non-FTA                affecting both U.S. and global interests.              26752), is extended. Comments must be
                                              export authorizations. In this policy                   DOE emphasizes that it remains                         received on or before August 9, 2018.
                                              statement, DOE/FE affirms its                           committed to the durability and stability              ADDRESSES: Public Hearing. The July 10,
                                              commitment to all export authorizations                 of the export authorizations it has                    2018, public hearing will be held at the
                                              issued under the NGA, including long-                   granted under the NGA, as well as to                   EPA, William Jefferson Clinton East
                                              term authorizations approving the                       supporting the approved export of U.S.                 Building, Room 1117, 1201 Constitution
                                              export of LNG to non-FTA countries. As                  natural gas around the world.                          Avenue NW, Washington, DC 20004.
                                              indicated above, DOE/FE currently has                                                                          Identification is required. If your
                                              issued 29 final non-FTA export
                                                                                                        21 See, e.g., Eagle LNG Partners Jacksonville II
                                                                                                                                                             driver’s license is issued by America
                                                                                                      LLC, DOE/FE Order No. 4078, at 23–38.                  Samoa, you must present an additional
                                              authorizations, based on a thorough                       22 In 2017, the U.S. Court of Appeals for the
                                                                                                                                                             form of identification to enter (see
amozie on DSK3GDR082PROD with NOTICES1




                                                                                                      District of Columbia Circuit issued four decisions
                                              cause, in writing, why its authorization should not     upholding non-FTA export authorizations issued by      SUPPLEMENTARY INFORMATION for
                                              be vacated—to which LLNG never responded);              DOE/FE under NGA section 3(a). See, e.g., Sierra       additional information on this location).
                                              Louisiana LNG Energy LLC, DOE/FE Order No.              Club vs. U.S. Dep’t of Energy, 867 F.3d 189; Sierra    Submit your comments, identified by
                                              3482–A, at 3.                                           Club v. U.S. Dep’t of Energy, Nos. 16–1186, 16–
                                                19 See Louisiana LNG Energy LLC, DOE/FE Order         1252, 16–1253, 703 Fed. Appx. 1 (D.C. Cir. Nov. 1,
                                                                                                                                                             Docket ID No. EPA–HQ–OAR–2013–
                                              No. 3482–A, at 3–4.                                     2017).                                                 0566, to the Federal eRulemaking Portal:
                                                20 See id. at 4 (also dismissing LLNG’s pending         23 See supra at 4–5.                                 https://www.regulations.gov. Follow the
                                              non-FTA application without prejudice).                   24 15 U.S.C. 717o.                                   online instructions for submitting


                                         VerDate Sep<11>2014   17:22 Jun 20, 2018   Jkt 244001   PO 00000   Frm 00043   Fmt 4703   Sfmt 4703   E:\FR\FM\21JNN1.SGM   21JNN1



Document Created: 2018-06-21 01:22:58
Document Modified: 2018-06-21 01:22:58
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
ActionPolicy statement.
DatesThis policy statement is applicable on June 21, 2018.
ContactAmy Sweeney, U.S. Department of Energy (FE-34), Office of Regulation and International Engagement, Office of Fossil Energy, Forrestal Building, Room 3E-042, 1000 Independence Avenue SW, Washington, DC 20585; (202) 586-2627; or Cassandra Bernstein or Ronald (R.J.) Colwell, U.S. Department of Energy (GC-76), Office of the Assistant General Counsel for Electricity and Fossil Energy, Forrestal Building, Room 6D-033, 1000 Independence Ave. SW, Washington, DC 20585; (202) 586-9793 or (202) 586-8499.
FR Citation83 FR 28841 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR