U.S. Secretary of Transportation Sean P. Duffy has declared a notable shift in the oversight of deepwater port licensing, which is set to transition from the U.S. Coast Guard (USCG) to the Maritime Administration (MARAD). The move is aimed at simplifying environmental reviews and expediting license approvals for deepwater ports, all while anticipating a reduction in domestic energy costs. "The Deepwater Port Program is a key pillar of President Trump's energy dominance strategy. With this change, we’ll soon accelerate project approvals so the nation can safely utilize more of its abundant natural resources, create more high paying jobs, and lower energy costs for American families," Duffy stated, according to the U.S. Department of Transportation official release.
MARAD Administrator Steve M. Carmel echoed the sentiment, remarking, "MARAD is excited and proud to lead the Deepwater Port Program. We look forward to continuing to collaborate with our partners at the U.S. Coast Guard to make this process more efficient and fuel our energy economy for years to come," as noted by the Department of Transportation. The move contrasts the previous administration’s pace in deepwater port approvals, which had been criticized for catering to environmental concerns, a notable point of divergence with the current administration's approach.
By shouldering the responsibility of the licensing process, MARAD takes on the National Environmental Protection Act (NEPA) and environmental compliance review duties. Meanwhile, the USCG will provide support as a Cooperating Agency, maintaining jurisdiction over the safety, design, construction, and operation of deepwater port facilities. This arrangement is in line with President Trump’s Executive Order on Unleashing American Energy.
The Deepwater Port Act of 1974 outlines conditions for the licensing of deepwater ports, which includes measures to minimize environmental impact and detailed plans for the construction, operation, and decommissioning of these facilities. Despite the Act's long history, only 31 license applications have been filed since its inception, split among various types of imports and exports. Out of those applications, eighteen were for importing liquefied natural gas (LNG), five for exporting LNG, six for exporting oil, and two for importing oil.
