A coalition of 16 Republican states, led by Texas and Louisiana, filed a lawsuit against the Biden administration, challenging its recent climate action pausing proposed energy projects.
The multistate coalition filed its complaint in the U.S. District Court for the Western District of Louisiana, listing President Biden, Energy Secretary Jennifer Granholm and the Department of Energy (DOE) among the defendants in the case. According to the complaint, the DOE’s move earlier this year pausing major liquefied natural gas (LNG) export terminal projects violated long-standing federal energy laws.
“Biden’s unilateral decree disregards statutory mandates, flouts the legal process, upends the oil and gas industry, disrupts the Texas economy, and subverts our constitutional structure,” said Texas Attorney General Ken Paxton.
“The ban will drive billions of dollars in investment away from Texas, hinder our ability to maximize revenue for public schools, force Texas producers to flare excess natural gas instead of taking it to market, and annihilate critical jobs,” he continued. “I will not stand by while Biden attacks Texas.”
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According to Paxton, the LNG export moratorium is unconstitutional, ignores the 1938 Natural Gas Act’s “presumption in favor of exports” and discards decades of DOE energy policy.
In arguing the alleged unconstitutionality of the policy, the states’ complaint notes Article I of the Constitution vests Congress with “[a]ll legislative Powers,” including the power “[t]o regulate Commerce with foreign Nations.” Therefore, since blocking LNG exports can be considered a regulation of commerce, the DOE violated the Constitution, according to the lawsuit.
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“The LNG Export Ban implicates an issue of profound national importance. LNG exports account for billions of dollars to the economy and thousands of jobs,” the complaint states. “They also raise serious questions of national security. And this is an issue that has been the subject of proposed legislation and public attention in and outside of Congress.”
The complaint accuses DOE of violating the Administrative Procedure Act which governs the procedures of administrative law. The states highlight that DOE failed to host any public comment period before finalizing its LNG policy without “good cause to forego the notice and comment requirement.”
Additionally, the states argue the DOE failed to properly consider the Natural Gas Act and its provision that states the agency issue an export license before hearing from the public.
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“The Biden administration’s illegal attacks on American energy jeopardizes the livelihoods of thousands of hard-working Louisiana men and women, millions of dollars in tax revenue, and billions of dollars in infrastructure,” said Louisiana Attorney General Liz Murrill.
“LNG continues to have an enormous positive economic impact for our state — especially on our hard-hit coastal communities, which continue to recover from a recent series of devastating hurricanes. Jobs like these grow the economy, reduce crime, and help address the out-migration problem,” she continued. “The people of Louisiana are proud to power this nation. I’m ready to fight for them.”
In a surprise move in January, Biden ordered the DOE to pause pending permits for LNG export facilities while federal officials conduct a rigorous environmental review assessing the projects’ carbon emissions, which could take more than a year to complete. The action was lauded by climate activists who have loudly called for such a move, which they said would help combat global warming.
However, the move was blasted by industry groups, former federal officials and bipartisan lawmakers, who noted energy exports are vital for aiding allies in Europe and Asia. In the aftermath of Russia’s invasion of Ukraine two years ago, U.S. LNG largely filled the void left by Russian natural gas as U.S. allies sought to wean off Russian exports and punish the nation’s economy, a plan Biden endorsed at the time.
Opponents also argued that LNG exports bolster domestic energy production and boost the U.S. economy. Fossil fuel industry groups recently cited research indicating that LNG exports could add as much as $73 billion to the U.S. economy by 2040, create 453,000 American jobs and increase U.S. purchasing power by $30 billion.
