America's Energy Advantage

Powering Manufacturing.
Fueling Jobs.
Igniting Growth.

AEA Statement on Department of Energy Changes to Liquefied Natural Gas Export Decisions

WASHINGTON, DC – August 15, 2014 – America’s Energy Advantage (AEA) today commented on the Department of Energy’s (DOE) final rule making procedural changes for natural gas export decisions. The final rule inverts the review process, meaning that DOE will consider whether a proposed export project is in the public interest only after the applicant has secured FERC NEPA approval. The final rule also suspends the Department’s practice of issuing conditional approvals. To date, one LNG export project has received final approval while seven others have received conditional approval. Cumulatively, DOE has issued final or conditional approval to export a total of 10.52 bcf/day. America’s Energy Advantage (AEA) issued the following statement:

“Unfortunately, the final rule did not address many of the comments and concerns that AEA raised with the Department. Most concerning is the fact that the final rule did not make any changes to the public interest standards DOE is using to evaluate LNG exports. The Department continues to rely on criteria developed for natural gas imports in 1984. The public interest test is at the very center of the Natural Gas Act. The Department of Energy has yet to define the underlying standards that it is using to assess whether proposed LNG exports are in the public interest. This serious deficiency remains unaddressed. 

America’s Energy Advantage welcomes the Department’s previously announced plans to commission a new economic study. We intend to work with the Department to ensure that it examines all relevant factors affecting supply, demand and price, including data that has been ignored to date, so that all stakeholders can have confidence in its conclusions. 
With sound LNG export policy, we will continue to import jobs and grow the economy. Conversely, unchecked and unlimited LNG exports will threaten America's manufacturing renaissance, double or even triple prices for consumers, and negatively impact capital investment and job creation. The Department must continue to proceed with caution and prioritize the public interest – the interests of American consumers, manufacturers and the U.S. economy – over those of our overseas competitors.”

About America's Energy Advantage
America’s Energy Advantage (AEA) is a trade association representing many of the world’s leading manufacturers and commodity producers, as well as the United States’ publicly-owned natural gas distribution companies. Our organization is a strong supporter of rules-based free trade and believes that open markets create new opportunities for economic growth and higher standards of living for all Americans. AEA is dedicated to educating the American public about the growth in American manufacturing that has been made possible by our country's abundant and affordable supply of natural gas.