Washington D.C. Circuit Court decision is consequential to breaking the tide of poverty in Brownsville and South Texas; supporting the Rio Grande LNG investment in Brownsville will ensure more than 6,000 jobs.
RIO GRANDE VALLEY, Texas – Major cities from across South Texas collectively representing nearly one million residents from Brownsville, Harlingen, Weslaco, McAllen, Edinburg, Mission, and Laredo, are proud to announce their support of NextDecade’s Rio Grande Liquefied Natural Gas (RGLNG) Facility, located at the Brownsville Navigation District (Port of Brownsville).
The cities strongly disagree with the U.S. Court of Appeals for the D.C. Circuit Court’s decision on August 6, 2024 to vacate the Federal Energy Regulatory Commission’s (FERC) RGLNG Facility, Rio Bravo Pipeline and Texas LNG reauthorization orders.
The South Texas cities are all led by Mayors who are collaborating to realize the unified goal of identifying the unique needs of South Texas and developing strategic plans to leverage their combined influence.
The cities’ unity is aimed at achieving the region’s overall economic growth and they are in full support of the RGLNG Facility, which is helping to create a more prosperous future for South Texas.
The City of Brownsville, and South Texas region, are fully aware of the RGLNG development project. NextDecade has been a community partner who has conducted meaningful engagement with the public, including hosting 26 open houses with more than 3,600 community members. This includes more than 1,600 students from the Brownsville Independent School District (BISD) and Brownsville charter and private schools. NextDecade has already invested in Brownsville academic institutions by supporting their vocational training programs to create a better prepared workforce of tomorrow.
Brownsville and the surrounding communities are beginning to experience a tangible shift away from poverty. The population in Brownsville alone has an average of 29 years of age and is made up of a workforce that is intergenerational. This young population desires the opportunity to work in or near Brownsville, as do residents from nearby Port Isabel, Harlingen, Edinburg, McAllen and Mission. The RGLNG 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. It is within the last two years, during the construction of RGLNG and the growing permanence of SpaceX that the area has seen data confirming the shrinking race gap in economic mobility as reported by the National Bureau of Economic Research.
Like Brownsville, these South Texas cities have experienced growth in student attendance at local academic institutions including The University of Texas Rio Grande Valley (UTRGV), Texas Southmost College (TSC), Texas State Technical College (TSTC), and South Texas College (STC). However, there is serious concern for leakage of talent, or “brain drain” of talent, due to professionals who leave the RGV in search of higher paying jobs elsewhere, including Central and North Texas, and even out-of-state.
A sustainable community is one where high-paying jobs are readily available; where access to even higher-quality of healthcare is available; and where families can stay united and experience quality of life together. It is not uncommon for younger adults to have to make the difficult choice of whether to stay in South Texas or leave the area for better paying opportunities. To grow a vibrant, sustainable, and resilient South Texas, the creation of jobs is fundamental in combating poverty and opening the path to home ownership and environmental resiliency.
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. The $18.4B LNG project is more than a year under construction and may potentially be at risk. A risk we cannot afford in South Texas.
NextDecade's commitment to local hiring and procurement has further anchored the project’s benefits to our communities. By engaging area vendors for the construction and operation of the RGLNG facility, NextDecade has ensured that the economic benefits ripple throughout area businesses and service providers. Of the 1,400 Full-Time jobs created by the RGLNG project to date and the 6,000 more anticipated jobs over the next five (5) years, 70% are local hires. Of the $2.92B in vendor expenditures, 60% of vendors are local and will provide additional indirect jobs, a much needed regional and sustainable boost.
It is important to recognize that the RGLNG project has undergone one of the most stringent regulatory processes, adhering to federal, state, and local regulations. The comprehensive review process by multiple agencies underscores the project’s commitment to environmental stewardship and compliance with legal standards, ensuring responsible development that respects our community’s health and natural resources.
The decision to vacate the project’s permits over procedural concerns threatens significant economic repercussions. If not addressed, the RGLNG project and other critical infrastructure projects across the nation could face increased uncertainty in regulatory outcomes. Such disruptions could deter future investments at a time when enhancing our energy infrastructure is crucial for economic stability and growth. Something our market has long sought for our communities, residents, and businesses.
Also, the RGLNG project is linked to the Brazos Island Harbor (BIH) Channel Improvement Project at the Port of Brownsville, which entails a deepening of the ship channel. RGLNG, the U.S. Army Corps of Engineers and the Port of Brownsville have committed hundreds of millions of dollars to this project. The Port has been trying to execute the BIH project since 2007 and RGLNG’s commitment to construct Phase 1 has made it a reality. If the ruling is upheld, the BIH project may not be completed and the substantial benefits to the RGV, created by the increased trade at the Port, will not materialize.
Considering these challenges, members of these cities urge community members and stakeholders to advocate for a resolution that supports the continuation of the RGLNG project under its existing permits. We must seek to resolve the procedural concerns raised by the Court without undermining the project's viability or the broader economic and environmental benefits it is set to deliver.
Editor's Note: The above op-ed was penned by leaders in the cities of Brownsville, Harlingen, Weslaco, McAllen, Edinburg, Mission, and Laredo. The op-ed appears in the Rio Grande Guardian International News Service with the permission of these leaders.
