TL/DR –
A US federal court has ruled against the Biden administration’s pause on approving new liquefied natural gas (LNG) export facilities. The administration had halted approvals while studying their effects on climate change, the economy, and national security, but the court sided with 16 Republican-led states that argued the pause would devastate their fossil-fuel-dependent economies. The ruling now obliges the Energy Department to resume its consideration of permit applications for new LNG export projects.
Federal Court Overrules Biden’s Freeze on New LNG Exports Facilities
A federal court blocked the Biden administration’s plan to halt approvals for new liquefied natural gas (LNG) facilities, marking a legal setback for the President’s climate initiatives.
Judge’s Ruling in Favor of Republican-led States
U.S. District Judge James D. Cain Jr, appointed by Donald Trump, ruled in favor of Louisiana and 15 other Republican-led states challenging the move, describing it as “without reason or logic”.
Impact on Biden’s Climate Goals
This ruling exemplifies how judiciary increasingly limits President Biden’s climate strategies. Last week, the Supreme Court made decisions restricting federal agencies’ power to address climate change and environmental issues.
Energy Department’s Pause on Approving New LNG Projects
The White House announced in January that the Energy Department would pause approvals of new LNG projects, delaying nearly a dozen LNG projects.
Republican Attorneys General’s Argument
Republican attorneys general from the 16 states argued that the pause, which would impact their fossil-fuel-dependent economies, bypassed the regulatory process illegally.
Resumption of LNG Permit Applications
With Monday’s ruling, the Energy Department must resume considering permit applications for new LNG export projects.
Response to the Ruling
Louisiana Attorney General Liz Murrill (R) applauded the ruling, terming it a “major victory for American energy.” On the other hand, the Energy Department and the White House expressed their disappointment.
U.S. LNG Exports
U.S. LNG exports doubled over the past four years. The approved and ongoing projects are expected to double the country’s LNG export capacity in the next four years. Most of these projects are located along the Gulf Coast.
Environmental Concerns
Environmental justice groups expressed concern over the ruling, fearing increased pollution in poor and minority communities along the Gulf Coast.
Reaction from Environmentalists
Environmentalists criticized the decision by Judge Cain, who last year favored Louisiana and the fossil fuel industry in a dispute over offshore oil and gas leasing. Advocacy groups accused the Judge of bending the law to benefit the oil industry.
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