A federal judge in Lake Charles has halted the Biden administration’s pause on approvals of new liquefied natural gas exports while the courts decide the fate of the measure.
U.S. District Judge James D. Cain Jr. issued the ruling Monday, siding with Louisiana and 15 other states that filed suit against the White House and the U.S. Department of Energy to stop the pause of approvals. The states had charged that the ban was arbitrary because it did not consider the impact on temporarily halting approvals on the economy and tax revenues.
“The Court is convinced that the export ban will and is irreparably harming the plaintiff states,” said Cain, who was appointed to the federal bench by former President Donald Trump. Louisiana, Texas and West Virginia had submitted evidence of harm in terms of lost revenues and market share, he said.
The White House announced in January it was stopping approvals of new exports while the Department of Energy revamped the federal economic and environmental analyses used to approve LNG projects to put more weight on the fossil fuel's possible climate impacts.
The review is scheduled to take at least several months, which could push the issue past the November presidential election. Once the review is complete, the results will be published in the Federal Register for public comment.
Despite the ruling, it is unlikely that any LNG projects would be on a fast track for consideration. The DOE said late Monday that it disagreed with the court’s ruling and was evaluating its next steps. The White House also voiced disappointment.
“We remain committed to informing our decisions with the best available economic and environmental analysis, underpinned by sound science,” White House spokesperson Angelo Fernández Hernández said in an email to The Associated Press.
The LNG export business has been booming in Louisiana since at least 2010 when Cheniere Energy first applied to ship the fuel from its then-planned Sabine Pass terminal in southwest Louisiana. Two other LNG terminals have opened in the state since then, and another is set to wrap up construction this year.
As of December, 18 LNG export projects were awaiting approval from the Department of Energy to ship to countries with which the U.S. does not have a free-trade agreement, according to federal filings. Twelve of those 18 projects are in Louisiana.
Cain's ruling comes just days after a federal commission approved what would be the nation’s largest export terminal for liquefied natural gas. Venture Global’s Calcasieu Pass 2 project, often referred to as CP2, was approved last week with little discussion by the Federal Energy Regulatory Commission.
Environmental groups noted that the impact of the ruling is limited. The DOE still has the authority and obligation to review the impact of LNG terminals, and the agency is not required to approve any pending projects.
"The Department of Energy should continue performing its statutory obligation to modernize the studies underlying its public interest criteria to determine the harm LNG exports have on American working families, domestic manufacturing, vulnerable frontline communities, and the climate,” said Tyson Slocum, director of Public Citizen's Energy Program.
Louisiana Attorney General Liz Murrill hailed the court’s ruling, saying the pause was putting $61 billion in infrastructure projects at risk.
“LNG has an enormous and positive impact on Louisiana, supplying clean energy for the entire world, and providing good jobs here at home,” she said. “The people of Louisiana are proud to power this nation and the world.”
The House Republican majority’s two top leaders, both from Louisiana, were quick to praise Cain’s decision to suspend the ban.
“President Biden’s natural gas export ban was among his most damaging policy decisions, and that’s saying something,” House Speaker Mike Johnson, R-Benton, said in a statement Tuesday. “By prioritizing left-wing environmentalists over the needs of our country, President Biden harmed economic growth in America and empowered our adversaries, particularly Russia.”
House Majority Leader Steve Scalise, R-Jefferson, said: “This decision is a victory for American energy and jobs. I’m grateful for the leadership of Louisiana and other states for fighting back against the Biden Administration’s shameful war on American energy. Make no mistake: This was a bad policy from the start and this decision means we should continue to export LNG to create more good paying American jobs and support our allies abroad.”
U.S. Sen. Bill Cassidy, R-Baton Rouge, said lifting the pause strengthens the U.S. economy. “It pushes back on Russia, who otherwise would be selling their gas to these countries and using their money to attack us, to attack others,” he said.
Craig Segall, vice president of Evergreen Action, an environmental group, said the ruling should have no impact on the DOE's power over what should be considered when determining approval of a terminal.
“Pause or no pause, the science is clear: No sound analysis that accounts for the climate and environmental harm inflicted by LNG exports could possibly determine that these deadly facilities are in the public interest,” he said in a statement.