A coalition of 16 Republican states led by Texas and Louisiana has filed a lawsuit against the Biden administration, challenging recent climate change measures over proposed moratoriums on energy projects.
The multistate coalition filed the complaint in the U.S. District Court for the Western District of Louisiana, naming President Biden, Energy Secretary Jennifer Granholm, and the Department of Energy (DOE) as defendants in the lawsuit. The DOE’s suspension of a major liquefied natural gas (LNG) export terminal project earlier this year violated longstanding federal energy laws, according to the complaint.
“Biden’s unilateral executive order ignores statutory obligations, ignores legal process, disrupts the oil and gas industry, disrupts the Texas economy, and destroys our constitutional structure,” Texas Attorney General Ken Paxton said in a statement. It’s what you do,” he said.
“This ban deprives Texas of billions of dollars in investment, hinders public schools’ ability to maximize revenue, and forces Texas producers to reburn excess natural gas instead of releasing it to market.” “This will lead to the loss of important jobs,” he continued. “I’m not going to stand by while Biden attacks Texas.”
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Texas Attorney General Ken Paxton speaks outside the U.S. Supreme Court on November 1, 2021. (Drew Angerer/Getty Images)
Paxton said the LNG export moratorium is unconstitutional, ignores the “export-friendly premise” of the Natural Gas Act of 1938, and abandons decades of DOE energy policy.
In asserting the policy’s alleged unconstitutionality, the states’ complaints point out that Article I of the Constitution “authorizes” Congress to:[a]all legislative powers, “including powers”;[t]“Regulate commerce with foreign countries.” Therefore, the lawsuit says the DOE violated the Constitution because blocking LNG exports could be considered a trade restriction.
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“The LNG export ban signals an issue of vital national importance. LNG exports contribute billions of dollars to the economy and thousands of jobs,” the complaint states. “They also raise serious questions about national security, which is the subject of the proposed legislation and is an issue that has received public attention both inside and outside Congress.”
In a surprising move, President Biden ordered a halt to pending natural gas export projects in January. (Getty Images)
The complaint accuses the DOE of violating the Administrative Procedure Act, which governs administrative law procedures. The states emphasize that the DOE did not host a public comment period before finalizing the LNG policy without “good reason to refrain from requesting notice and comment.”
Additionally, the states argue that the Department of Energy did not properly consider the Natural Gas Act and its provisions that require the department to issue export licenses before consulting the public.
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“The Biden administration’s illegal attack on American energy threatens the livelihoods of thousands of hardworking men and women in Louisiana, millions of dollars in tax revenue, and billions of dollars in infrastructure,” Louisiana Attorney General Liz Murrill said in a statement. It’s putting it at risk.”
“LNG continues to have a significant positive economic impact on our state, especially our hard-hit coastal regions that continue to recover from a series of recent devastating hurricanes. “These jobs help grow the economy, reduce crime, and address the crisis of immigration,” she continued. “Louisiana people are proud to serve this country, and I am ready to fight for them.”
Photo of an LNG tanker at the port of Elbehaven in Brunsbüttel, Germany. U.S. LNG has played a key role in helping Germany and other European countries move away from Russian gas. (Bodo Marks/Photo in partnership with Getty Images)
In a surprise move in January, Biden put an LNG export facility on hold that could take more than a year to complete while federal officials conduct a rigorous environmental review to assess the project’s carbon footprint. ordered the DOE to suspend permits inside. The move was praised by climate change activists who have been vocal in calling for such a move, saying it will help fight global warming.
But the move was slammed by industry groups, former federal officials and bipartisan lawmakers, who said energy exports were essential to supporting allies in Europe and Asia. U.S. LNG has largely filled the hole left by Russian natural gas, as U.S. allies sought to punish their domestic economies by cutting off Russian exports in the aftermath of Russia’s invasion of Ukraine two years ago. , Biden supported the plan at the time.
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Opponents also argued that LNG exports would boost domestic energy production and boost the U.S. economy. fossil fuel industry association A recently cited study found that LNG exports could add up to $73 billion to the U.S. economy by 2040, create 453,000 U.S. jobs, and increase U.S. purchasing power by $30 billion. is.
