Policy Statement Regarding Long-Term Authorizations To Export Natural Gas to Non-Free Trade Agreement Countries, 28841-28843 [2018-13427]

Download as PDF Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices ID number and title, by the following method: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. Instructions: All submissions received must include the agency name, Docket ID number, and title for this Federal Register document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at https:// www.regulations.gov as they are received without change, including any personal identifiers or contact information. DOD Clearance Officer: Mr. Frederick Licari. Requests for copies of the information collection proposal should be sent to Mr. Licari at whs.mc-alex.esd.mbx.dddod-information-collections@mail.mil. Dated: June 15, 2018. Aaron T. Siegel, Alternate OSD Federal Register, Liaison Officer, Department of Defense. [FR Doc. 2018–13288 Filed 6–20–18; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF EDUCATION [Docket No.: ED–2018–ICCD–0044] Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; National Assessment of Educational Progress (NAEP) 2019 and 2020 National Center for Education Statistics (NCES), Department of Education (ED). ACTION: Notice. AGENCY: In accordance with the Paperwork Reduction Act of 1995, ED is proposing a revision of an existing information collection. DATES: Interested persons are invited to submit comments on or before July 23, 2018. ADDRESSES: To access and review all the documents related to the information collection listed in this notice, please use https://www.regulations.gov by searching the Docket ID number ED– 2018–ICCD–0044. Comments submitted in response to this notice should be submitted electronically through the Federal eRulemaking Portal at https:// www.regulations.gov by selecting the Docket ID number or via postal mail, commercial delivery, or hand delivery. Please note that comments submitted by fax or email and those submitted after the comment period will not be amozie on DSK3GDR082PROD with NOTICES1 SUMMARY: VerDate Sep<11>2014 17:22 Jun 20, 2018 Jkt 244001 accepted. Written requests for information or comments submitted by postal mail or delivery should be addressed to the Director of the Information Collection Clearance Division, U.S. Department of Education, 400 Maryland Avenue SW, LBJ, Room 206–06, Washington, DC 20202–4537. FOR FURTHER INFORMATION CONTACT: For specific questions related to collection activities, please contact Kashka Kubzdela, 202–245–7377 or email NCES.Information.Collections@ed.gov. SUPPLEMENTARY INFORMATION: The Department of Education (ED), in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the Department assess the impact of its information collection requirements and minimize the public’s reporting burden. It also helps the public understand the Department’s information collection requirements and provide the requested data in the desired format. ED is soliciting comments on the proposed information collection request (ICR) that is described below. The Department of Education is especially interested in public comment addressing the following issues: (1) Is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records. Title of Collection: National Assessment of Educational Progress (NAEP) 2019 and 2020. OMB Control Number: 1850–0928. Type of Review: A revision of an existing information collection. Respondents/Affected Public: Individuals or Households. Total Estimated Number of Annual Responses: 712,888. Total Estimated Number of Annual Burden Hours: 379,934. Abstract: The National Assessment of Educational Progress (NAEP), conducted by the National Center for Education Statistics (NCES), is a federally authorized survey of student achievement at grades 4, 8, and 12 in various subject areas, such as PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 28841 mathematics, reading, writing, science, U.S. history, civics, geography, economics, technology and engineering literacy (TEL), and the arts. The National Assessment of Educational Progress Authorization Act (Pub. L. 107–279 Title III, section 303) requires the assessment to collect data on specified student groups and characteristics, including information organized by race/ethnicity, gender, socio-economic status, disability, and limited English proficiency. It requires fair and accurate presentation of achievement data and permits the collection of background, noncognitive, or descriptive information that is related to academic achievement and aids in fair reporting of results. The intent of the law is to provide representative sample data on student achievement for the nation, the states, and subpopulations of students and to monitor progress over time. The nature of NAEP is that burden alternates from a relatively low burden in national-level administration years to a substantial burden increase in state-level administration years when the sample has to allow for estimates for individual states and some of the large urban districts. The request to conduct NAEP 2017–2019 was approved in August 2016, with the latest change requests approved in March 2018 (OMB# 1850– 0928 v.1–9). This request updates the scope, sampling, procedures, and materials to be used in NAEP in 2019 and 2020, including operational assessments, pilot tests, and special studies. The NAEP results will be reported to the public through the Nation’s Report Card as well as other online NAEP tools. Dated: June 18, 2018. Kate Mullan, Acting Director, Information Collection Clearance Division, Office of the Chief Privacy Officer, Office of Management. [FR Doc. 2018–13351 Filed 6–20–18; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF ENERGY Policy Statement Regarding LongTerm Authorizations To Export Natural Gas to Non-Free Trade Agreement Countries Office of Fossil Energy, Department of Energy. ACTION: Policy statement. AGENCY: 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 SUMMARY: E:\FR\FM\21JNN1.SGM 21JNN1 28842 Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices gas) to non-free trade agreement countries. DOE is firmly committed to the durability and stability of the nonFTA 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, 1 15 U.S.C. 717b. 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)). amozie on DSK3GDR082PROD with NOTICES1 2 This VerDate Sep<11>2014 17:22 Jun 20, 2018 Jkt 244001 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 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 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 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. 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 LongTerm 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). 9 Eagle LNG Partners Jacksonville II LLC, DOE/FE Order No. 4078, at 33 n.98. 10 Id. PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 is fully authorized to take action as necessary to protect the public interest.’ ’’ 11 DOE/FE has never rescinded a longterm 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 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 ongoing 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 11 Id. (quoting Sabine Pass Liquefaction, LLC, DOE/FE Order No. 2961, at 33 n.45). 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-CE05449D-8893-DC8D64C32D02 (last viewed June 8, 2018). 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 E:\FR\FM\21JNN1.SGM 21JNN1 Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices 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 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. amozie on DSK3GDR082PROD with NOTICES1 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 longterm 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 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). VerDate Sep<11>2014 17:22 Jun 20, 2018 Jkt 244001 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 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 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. 21 See, e.g., Eagle LNG Partners Jacksonville II LLC, DOE/FE Order No. 4078, at 23–38. 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. 24 15 U.S.C. 717o. PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 28843 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 ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OAR–2013–0566; FRL–9979–72– OAR] RIN 2060–AT68 Public Hearing for and Extension of Comment Period on Review of the Primary National Ambient Air Quality Standard for Sulfur Oxides Environmental Protection Agency (EPA). ACTION: Notice of public hearing and extension of public comment period. AGENCY: The Environmental Protection Agency (EPA) is announcing that a public hearing will be held on the EPA’s proposed decision in its ‘‘Review of the Primary National Ambient Air Quality Standard for Sulfur Oxides,’’ which was published in the Federal Register on June 8, 2018 (83 FR 26752). The EPA is proposing to retain the existing standard without revision. The hearing will be held on Tuesday, July 10, 2018, in Washington, DC. The EPA is additionally announcing a 17-day extension of the comment period for this proposed decision. The original comment period was to end on July 23, 2018. The extended comment period will now close on August 9, 2018. DATES: The public hearing will be held on July 10, 2018, in Washington, DC (see SUPPLEMENTARY INFORMATION for additional information on the public hearing). The comment period on the proposed decision announced in the Federal Register on June 8, 2018 (83 FR 26752), is extended. Comments must be received on or before August 9, 2018. ADDRESSES: Public Hearing. The July 10, 2018, public hearing will be held at the EPA, William Jefferson Clinton East Building, Room 1117, 1201 Constitution Avenue NW, Washington, DC 20004. Identification is required. If your driver’s license is issued by America Samoa, you must present an additional form of identification to enter (see SUPPLEMENTARY INFORMATION for additional information on this location). Submit your comments, identified by Docket ID No. EPA–HQ–OAR–2013– 0566, to the Federal eRulemaking Portal: https://www.regulations.gov. Follow the online instructions for submitting SUMMARY: E:\FR\FM\21JNN1.SGM 21JNN1

Agencies

[Federal Register Volume 83, Number 120 (Thursday, June 21, 2018)]
[Notices]
[Pages 28841-28843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13427]


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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.

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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.
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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\
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    \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\
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    \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).
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    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\
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    \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).
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    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\
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    \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.
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    \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
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