BROWNSVILLE, Texas - Brownsville Navigation District says a ruling by a Washington D.C. Circuit Court could have a “potentially devastating impact” on plans to deepen the Brownsville ship channel.
The Port of Brownsville wants to deepen its channel from 42 feet to 52 feet.
BND has filed an amicus curiae in support of a rehearing in the D.C. Circuit Court for the City of Port Isabel, et al. v. Federal Energy Regulatory Commission (FERC) lawsuit. The petition for a rehearing has been filed by Rio Grande LNG, Texas LNG, and Rio Bravo Pipeline, Co.
The lawsuit impacts the permits for Rio Grande LNG and Texas LNG to build liquefied natural gas export terminals at the Port of Brownsville and the Rio Bravo Pipeline that takes natural gas to the port.
An amicus curiae is a legal term that means “friend of the court”. It refers to a person or organization that is not a party to a case, but has a strong interest in the matter and wants to influence the court’s decision. They do this by submitting a written document, called an amicus brief, that provides additional information or perspective about the case.
“BND files this brief for the limited purpose of bringing to the Court’s attention the serious impacts the vacatur of the FERC authorizations to Rio Grande LNG and Texas LNG would have on the BND, residents of South Texas, and the users of the Port of Brownsville,” the amicus curiae states. “BND takes no position on the issue of whether there were flaws or missed steps in the FERC regulatory process.”
BND says the Court’s decision to vacate FERC’s authorizations, rather than remanding the cases for further review and analysis by FERC without vacating the authorizations, delays and potentially endangers two “history-making projects that will bring billions of dollars of investment, significant increases to the tax base of the region, and thousands of well-paying jobs to Cameron County, Texas, historically one of the most impoverished areas in the United States.”
Moreover, BND says vacatur of the FERC authorizations “will impair the deepening of the Brazos Island Harbor Ship Channel, which is a separate project, approved by the United States Congress and the United States Army Corps of Engineers after decades of study.”
BND points out that the BIH Project is funded in part by the United States Congress, in part by Rio Grande LNG, and in part by the BND.
“In approving BIH Project, the United States Army Corps of Engineers found that the BIH Project fulfills the USACE’s mission to maintain America’s vital waterways, but will also generate immense economic benefits through increased trade, shipping efficiencies, and support for the region’s industries,” BND argues, in its amicus curiae.
“The BIH Project, which is now currently under construction, promises to transform the economic profile of the Rio Grande Valley, irrespective of the economic impact of the two LNG projects. Impacts to the BND, its constituents, and the surrounding communities, as well as impacts to the public’s interest in generating economic benefits through increased trade, shipping, and efficiencies, should be carefully considered by this Court in its review of Intervenors’ Petitions for Rehearing.”
In its argument, BND said the two LNG projects will “create thousands of jobs” during both the construction and operational phases. “These jobs will range from highly skilled engineering and technical positions to construction and administrative roles, providing a much-needed boost to the local labor market.”
Furthermore, BND states, the projects include “commitments to workforce development programs that will equip residents with the skills necessary to participate in the energy sector, thereby fostering long-term employment opportunities.”
The LNG projects themselves will also generate substantial revenue to the BND which will aid in reducing operational and capital investment costs that would fall on the taxpaying constituents of the BND, the amicus curiae states.
BND points out that that the Rio Grande LNG and Texas LNG projects are projected to invest upwards of $22 billion in capital improvements along the Brownsville Ship Channel. “The LNG projects will both create thousands of jobs and spur significant infrastructure development in the region, including improvements in transportation, utilities (including electric, natural gas, water, and wastewater facilities), and other critical services.”
This infrastructure, BND argues, will benefit not only the LNG projects but also the other tenants and users of the Port of Brownsville, and ultimately the broader community, enhancing the quality of life for residents.
“Additionally, the LNG projects are expected to generate substantial tax revenues for local governments, which can be reinvested in public services such as education, healthcare, and emergency services, further strengthening the community's resilience and prosperity.”
In particular, BND says, vacatur of the FERC authorizations could have a “potentially devastating impact” on the BIH Project.
“Planning to deepen the Port of Brownsville ship channel from 42 feet began in 2007 with a project feasibility study. In 2014, the U.S. Army Corps of Engineers (USACE) completed the feasibility study, finding the project to be in the national interest and recommending deepening the channel to 52 feet. In December 2016, the U.S. Congress authorized the BIH Project, making the BIH eligible to receive federal funding. Estimates for the total cost of BIH Project are in excess of $350 million.
“Under a public private partnership agreement with BND and the US Army Corps of Engineers, Rio Grande LNG has agreed to pay 100% of the cost of the Phase I of the BIH project, which spans from the mouth of the Brownsville Ship Channel to the western boundary of the Rio Grande LNG lease site.”
Based on having secured funding from Rio Grande LNG for Phase 1 of the BIH project, BND says it has secured $68 million in federal funding under the Infrastructure Investment and Jobs Act Appropriations Act for completion of Phase II of the BIH, which covers the remaining length of the ship channel. The remainder of the funding, BND states, will come from a combination of state, federal, local, and private sources.
“BND, itself, largely in reliance on the FERC authorizations issued for the LNG projects and the opinion of a prior panel in this case which remanded without vacatur, has already invested over $44 million of its own money in the BIH Project, with such investment being comprised of advance funding to the U.S. Army Corps of Engineers and in-kind contributions, such as improvement of spoil disposal areas critical to development of the BIH Project. Today, construction for Phase I of the BIH Project has commenced and is well underway.”
In addition, BND says, the US Army Corps of Engineers awarded a contract for Phase II of the BIH project to Callan Marine, Ltd, in August 2024. BND says this work is scheduled to commence this year, with an estimated completion date of June 2026.
“Vacatur of the FERC authorizations in this litigation puts the BIH Project in limbo and has potential to impact funding and the feasibility of the project,” the amicus brief states.
“The BIH Project itself will benefit not only the LNG projects, but also the many industries that use the channel daily, including ship builders, ship repair facilities, ship recyclers (which perform valuable services for the United States Navy, the federal Maritime Administration, and other public and private interests), importers and exporters of many commodities, including wind energy components, grain, steel and other metals, and other commodities.
“Without the financial contributions of Intervenors, the current funding model is unsustainable, and, at best, will shift an enormous financial need, in the hundreds of millions of dollars, onto the public. At worst, without the financial contributions of Intervenors, the BIH Project could be jeopardized in its entirety which would cause significant harm to (a) the BND, who has relied on FERC’s authorizations and the opinion of a prior panel in this case in reviewing such authorizations, by committing millions of dollars to the project, and (b) the local communities and its residents that stand to benefit so greatly from the LNG projects themselves and the development of the BIH Project.
“BND respectfully submits that any decision to vacate the FERC authorizations should be taken in the context of the short and long-term devastating financial impacts that would result to Intervenors, the BND, and to the local communities that the BND serves.”
If the LNG projects are halted, BND states, the local community will suffer significant economic losses.
“The job opportunities, infrastructure improvements, and tax revenues associated with the LNG projects will be forfeited, leaving the region without a vital source of economic growth. This could lead to higher unemployment rates, reduced public services, and a decline in the overall quality of life for residents.”
BND points out that major cities from across South Texas, collectively representing nearly one million residents from Brownsville, Harlingen, Weslaco, McAllen, Edinburg, Mission, and Laredo have all announced their support of the Rio Grande LNG project.
“The mayors of these cities penned an editorial that noted the meaningful public engagement with the public, including hosting 26 open houses and investments in City of Brownsville academic institutions to support vocational training programs,” BND’s amicus brief states.
“The mayors also note this project is pivotal for reversing a tide of poverty that has impacted generations of low-to-moderate income families which make up approximately 55% of Brownsville residents. The mayors further note that the recent decision by the D.C. Circuit Court to vacate the FERC’s authorization of the RGLNG project, citing procedural issues, poses a critical threat to the project and to the economic vitality of the region.”
In the conclusion, BND states: “Halting the LNG projects would have significant negative impacts on the BND and could undermine the region's long-term development prospects. For these reasons, the BND respectfully urges the Court to recognize the importance of the LNG projects, including their direct relation to the BIH Project, on the BND and other local communities, and to reconsider its decision to vacate the FERC authorizations.”
