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Cities in the Rio Grande Valley are expressing support for a liquefied natural gas terminal project at the Port of Brownsville that will face additional scrutiny after its federal authorization was vacated by the D.C. Circuit Court in an Aug. 6 ruling in response to an anti-LNG lawsuit.
An official statement from the city of Brownsville condemning the court decision and arguing for the importance of the Rio Grande LNG project at the port, with language approved by the mayors of Brownsville, Edinburg, Harlingen, McAllen, Mission, Weslaco and Laredo, was released last Friday. Cameron County released a similar statement on Friday expressing its support for the project.
According to the mayors’ statement, Rio Grande LNG, owned by Houston-based NextDecade, will support approximately 6,000 jobs during the years-long construction and is essential to “breaking the tide of poverty in Brownsville and South Texas.”
Cameron County Judge Eddie Treviño Jr. said the project, which broke ground a year ago on a 984-acre site between the Brownsville Ship Channel and S.H. 48, has already had a major impact on Valley communities.
“The $18.4 billion committed to the Rio Grande LNG project (Phase 1) is currently the largest private energy infrastructure investment in the United States and represents a transformative opportunity for all the residents or our region,” he said.
The Aug. 6 court decision vacated authorizations for Rio Grande LNG, the associated Rio Bravo Pipeline, and proposed Texas LNG terminal that was granted by the Federal Energy Regulatory Commission in 2019. The ruling was in response to a lawsuit against FERC by the Sierra Club, the city of Port Isabel and other petitioners claiming the agency failed to adequately consider environmental justice impacts and greenhouse gas emissions of the three projects as mandated by the National Environmental Policy Act and the Natural Gas Act.
In response to the Circuit Court ruling, FERC announced last month that a supplemental Environmental Impact Statement will be prepared for Rio Grande LNG and the Rio Bravo Pipeline, which will require a new public comment period before FERC decides makes a determination on authorizations for the projects.
The mayors’ statement strongly disagrees with the court’s ruling, noting that the cities’ leaders are unified in furthering the region’s economic growth and fully support Rio Grande LNG, “which is helping to create a more prosperous future for South Texas,” according to the statement. NextDecade has conducted meaningful public engagement over the years, including 26 open houses with more than 3,600 community members, including 1,600 students from Brownsville Independent School District and the city’s charter and private schools, the statement said.
“NextDecade has already invested in Brownsville academic institutions by supporting their vocational training programs to create a better prepared workforce of tomorrow,” it said. “Brownsville and the surrounding communities are beginning to experience a tangible shift away from poverty.”
Members of the Valley’s inter-generational workforce desire the opportunity to work near home, and Rio Grande LNG is “pivotal for reversing a tide of poverty that has impacted generations of low-to-moderate income families, which make up approximately 55 percent of Brownsville residents,” according to the statement.
Research by the National Bureau of Economic Research confirms a “shrinking race gap in economic mobility” thanks to the construction of Rio Grande LNG and the “growing permanence of SpaceX,” the statement said.
“It is important to recognize that the (Rio Grande LNG) project has undergone one of the most stringent regulatory processes, adhering to federal, state and local regulations … The decision to vacate the project’s permits over procedural concerns threatens significant economic repercussions,” according to the statement.
Treviño said the LNG terminal would support hundreds of permanent jobs after completion, in addition to the thousands of jobs it would support during the 7-10 year construction period. Also, NextDecade, the parent company, has committed $400 million to help deepen the ship channel from 42 to 52 feet, something the port has been pursuing for decades in order to stay competitive. If Rio Grande LNG is stopped, so will the channel dredging, he said.
“This dredging project is not only vital for the Port of Brownsville to attract larger vessels but will support and boost the overall economic growth and development of the region,” Treviño said. “By prioritizing local hiring and investing in the (port), NextDecade is poised to provide substantial income opportunities for thousands of people and businesses in the area.”
Losing Rio Grande LNG would have a significant negative impact on the county and the Valley, he said.
“Thousands of jobs will be lost, a vital (port) dredging project will not be completed, and hundreds of millions of dollars of annual GDP and tax revenue will not be generated,” Treviño said.
