Future of Energy Hub

On his first day in office, President Trump declared a “National Energy Emergency,” signaling his Administration's intent to prioritize securing affordable and reliable energy to support manufacturing, drive AI development, and fuel overall domestic economic growth. That same day, President Trump also issued “Unleashing American Energy," an Executive Order that encourages increased production and export of liquefied natural gas (LNG) and other fossil fuels, while also supporting renewable sources such as hydropower and nuclear. The Administration also directed agencies to streamline federal permitting processes for certain projects, including licensing of export deepwater port projects by DOT/MARAD, and lifted the Biden Administration's 2024 pause on new Department of Energy (DOE) LNG export licenses.        

Historically, proposed deepwater port projects have faced regulatory delays as U.S. policy under prior administrations focused on enlarging environmental reviews as well as transitioning away from fossil fuels. Under the new Administration's policies, deepwater port projects present a unique opportunity to deliver on President Trump’s directive to unleash American energy. These projects can facilitate the export of American LNG within the context of an existing statutory framework for a streamlined licensing process. In other words, no legislative changes are needed to set deepwater port licensing timelines back on track. 

Within the first 100 days of the Trump Administration, on March 21, 2025, MARAD announced the issuance of a new deepwater port license authorizing Delfin LNG, LLC, “to own, construct, operate, and eventually decommission a deepwater port, to export LNG from the United States.” The facility will transport LNG to the global market from the United States federal waters, approximately 40 nautical miles off the coast of Cameron Parish, Louisiana. 

To date, the Delfin LNG license is one of only two deepwater port projects to have received a MARAD license in the past fifteen years and will be the first offshore LNG export project in the United States. In April 2024, MARAD issued a deepwater port license to the proposed Sea Port Oil Terminal (SPOT) export project, which is the first crude oil deepwater port project to be licensed in over 50 years. The review and licensing process for both of these deepwater ports has taken several years – over eight years for Delfin and over five years for SPOT. Many other applications have remained under regulatory review for years after submission, delayed by factors including lengthy stop clock periods, extensive data gap requests, and open ended consultation periods. 

The DWPA establishes a streamlined process to license the construction and operation of deepwater port projects for the import and export of oil and natural gas. See 33 U.S.C. § 1501 et seq. Specifically, the DWPA authorizes the Secretary of DOT to review deepwater port license applications within a statutorily mandated timeframe and further outlines nine statutory criteria which the Secretary uses to determine whether to issue a deepwater port license. See 33 U.S.C. § 1503(c)(1)-(9). As delegated by DOT, MARAD, in coordination with the U.S. Coast Guard (USCG) and other cooperating agencies, is tasked as the lead agency to carry out and implement the DWPA for the Secretary.  

The application process is intended to be a comprehensive, “one stop shop,” approach to facilitate timely regulatory review and licensing of proposed offshore export projects, including reviews by all interested federal, state and local agencies. Importantly, the DWPA mandates a 356-day statutory timeline for the Secretary, as delegated to MARAD, to review and assess deepwater port license applications and issue a Record of Decision (ROD). This mandated timeline includes any necessary environmental review required under the National Environmental Policy Act (NEPA). The timeline begins when the applicant submits the deepwater port license application (Day 1) and proceeds as follows: 

• Within 21 days MARAD will determine whether an application for license is complete, and if so, publish a notice of application within 5 days (26 days total). 33 U.S.C. § 1504 (c).
• No later than 240 days after the notice of application has been filed, MARAD must hold all necessary public hearings, including those associated with the NEPA environmental review (Environmental Impact Statement or Environmental Assessment) process. 33 U.S.C. § 1504(g). The DWPA’s 240-day period includes a single NEPA process for all applicable Federal and State agencies, including DOE, the Federal Energy Regulatory Commission (FERC), the Environmental Protection Agency (EPA), the U.S. Army Corps of Engineers (USACE), the Bureau of Ocean Energy Management (BOEM), the Bureau of Safety and Environmental Enforcement (BSEE), the National Oceanic and Atmospheric Administration (NOAA), the National Marine Fisheries Service, the U.S. Fish and Wildlife Service, the Pipeline Hazardous Materials and Safety Administration (PHMSA), and others as applicable.
• MARAD then has 90 days to approve or deny the application and issue a ROD, for a total of 356 days. 33 U.S.C. § 1504(i). 

In addition to MARAD and USCG, DOE and FERC may participate as cooperating agencies during the deepwater port licensing process, particularly for LNG projects. FERC is responsible for authorizing the siting and construction of certain onshore and near-shore LNG import or export terminals, as well as facilities and pipelines that fall within the jurisdiction of the Natural Gas Act. For offshore deepwater port projects, however, MARAD continues to serve as lead agency, bound by the DWPA statutory timelines, even when FERC is involved for onshore components. 

The statutorily-mandated application review process, incorporating the NEPA review process and including a 356-day timeline, is unique to deepwater port energy projects. The DWPA process is distinguishable from the more general NEPA processes and timelines that apply to other energy projects. For example, BOEM is responsible for offshore wind projects and FERC is responsible for onshore LNG terminal projects. Because the DWPA and implementing regulations are so prescriptive, the framework exists for deepwater port energy projects to be reviewed and approved more efficiently.    

In addition, the U.S. Supreme Court has signaled a shift in judicial review of agency decisions involving Environmental Impact Statements (EISs) under NEPA. In Seven County Infrastructure Coalition v. Eagle County (May 29, 2025), the Court held that courts must grant substantial deference to agencies when evaluating an EIS. The majority decision urges agencies to pull back on the practice of producing voluminous EISs and makes clear that NEPA requires consideration of only the project under review—not the upstream or downstream effects of other potential projects. The Court’s decision in effect allows agencies to approve projects more quickly moving forward.

Further, DOT issued a significant update to its Procedures for Considering Environmental Impacts, which includes updated NEPA procedures for MARAD. See DOT Order 5610.1D. On June 30, 2025, DOT issued a Notice of availability and request for comment on new requirements for considering environmental impacts under NEPA, including provisions for applicant-prepared environmental review documents, effective July 1, 2025. See 90 Fed. Reg. 29,621 (published July 3, 2025). This is a departure from prior NEPA procedures and one that will likely be beneficial to deepwater port license applicants going forward.

Amidst this changing regulatory and policy landscape, DOT and MARAD are well-positioned to prioritize timely regulatory reviews and approvals of proposed deepwater port energy projects consistent with the existing DWPA statutory framework, including the mandatory 356-day statutory timeline. Companies navigating the previously unpredictable waters of the DWPA regulatory process may find calmer waters ahead.