A federal judge on Monday ordered the Biden administration to resume issuing permits for new liquefied natural gas export facilities, after the administration paused that process in January to analyze how those exports affect climate change, the economy and national security.
The decision, from the United States District Court for the Western District of Louisiana, comes in response to a lawsuit from 16 Republican attorneys general, who argued that the pause amounted to a ban that hurt their states’ economies. Many of these states, including Louisiana, West Virginia, Oklahoma, Texas and Wyoming, produce significant amounts of natural gas.
The judge, James D. Cain Jr., who was appointed by President Donald J. Trump, wrote in his ruling that the states had shown that they had lost jobs, royalties and taxes that would have flowed if the gas export permits had continued .
Texas, for example, projected that it would lose $259.8 million in tax revenue related to natural gas production over five years due to the pause in permitting.
Energy Secretary Jennifer Granholm has said she expects her agency’s analysis of LNG exports to be completed by the end of this year.
But Judge Cain agreed with the attorneys general that the states were harmed.
“The Court finds that the lost or delayed revenues associated with natural gas production constitute a concrete and imminent harm that supports standing,” Judge Cain wrote.
Louisiana Attorney General Elizabeth Murrill said in a statement: “Liquefied natural gas has a tremendous and positive impact on Louisiana, providing clean energy for the world and good jobs here at home. The people of Louisiana are proud to bring power to this nation and the world. A major victory for American energy.”
The Biden administration decided in January to halt approvals of new liquefied natural gas facilities after climate activists campaigned against Calcasieu Pass 2, a proposed $10 billion project in Louisiana. If completed, Calcasieu Pass 2 would be the country’s largest natural gas export terminal and increase the country’s daily gas exports by approximately 20 percent. Last week, the Federal Energy Regulatory Commission voted 2-1 to approve the project, leaving the export terminal permit as the last remaining hurdle.
The pause also affected five other projects involving gas exports to countries that do not have free trade agreements with the United States. Even with the temporary pause, the United States is still on track to nearly double its export capacity by 2027 thanks to projects already authorized and under construction.
The United States is the world leader in LNG exports. The country has seven active terminals and another five approved facilities under construction. Permits have been requested for another 17 projects.
The protests over Calcasieu Pass 2 came as President Biden seeks to shore up his support among climate activists, a key constituency. Despite Mr. Biden signing the most important climate bill in the country’s history, young climate activists are especially disappointed by his administration’s approval of oil drilling such as Willow, a massive drilling project in Alaska’s pristine wilderness.
Announcing the pause in January, Mr. Biden described the decision as rooted in concerns about climate change.
“People in every corner of the country and the world are suffering the devastating toll of climate change,” Biden said in a statement at the time. “This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.”
Environmental groups on Louisiana’s Gulf Coast, where pollution from LNG facilities has damaged residents’ health, want a complete ban on new exports.
The pause in permits spurred oil and gas companies against Mr. Biden, industry lobbyists said. Three oil executives organized a fundraiser in Houston in May to benefit Mr Trump, who has promised to restart LNG licensing.
The pause was announced a month after the United States joined nearly 200 countries at a United Nations climate summit in pledging to shift away from fossil fuels.
A complex battle has emerged over the role of LNG as countries try to transition to cleaner energy.
Natural gas, which consists mainly of methane, is cleaner when burned than coal. But methane is a much more powerful greenhouse gas than carbon dioxide in the short term. And it can leak anywhere in the supply chain, from the production pit to processing plants to the cooktop. The process of liquefying gas so it can be transported is also incredibly energy intensive, creating even more emissions.
Biden administration officials did not respond to a request for comment Monday evening. However, if the government chooses to appeal the decision, it is expected to be heard by the US Court of Appeals for the Fifth Circuit in Louisiana, where several judges appointed by Mr Trump have decided ruled in favor of the plaintiffs challenging Mr. Biden’s environmental policies.
