In a significant legal setback for the Biden administration’s climate agenda, a federal judge in Louisiana on Monday put the Energy Department’s pause on natural gas export permits on hold. Judge James Cain of the Western District of Louisiana, a Trump appointee, granted a stay requested by 16 red states, arguing that the pause would harm their economies.
Background and Implications of the Ruling
Judge Cain’s decision disrupts one of President Joe Biden’s key climate policies, which aimed to address the concerns of climate-focused activists who have criticized the administration for insufficient action on mitigating planet-warming emissions. This move comes despite the Democrats passing the Inflation Reduction Act, which represents the largest investment in climate action in U.S. history.
Cain ruled that the Department of Energy (DOE) failed to justify the need for pausing approvals to review the permitting process. He noted that past precedents allowed the approval of applications to proceed while updates were made. The judge also cited the DOE’s failure to consider the economic impact on national security, state revenues, employment opportunities, and pollution resulting from increased reliance on foreign energy sources.
Economic and Political Reactions
West Virginia Attorney General Patrick Morrisey, one of the leading challengers, hailed the ruling as a “big win for the country’s energy industry and the millions of jobs it supports.” He emphasized that the Energy Department lacks the authority to impose such a ban, arguing that such decisions lie solely with Congress.
In response, White House spokesperson Angelo Fernández Hernández expressed disappointment with the ruling, reaffirming the administration’s commitment to making decisions based on sound economic and environmental analysis. An Energy Department spokesperson also indicated disagreement with the court’s ruling and stated that the department is evaluating its next steps.
Environmental Advocates’ Perspective
Environmental advocates have noted that the ruling will not immediately impact pending permits for LNG export projects or the ongoing DOE study on the economic and environmental impacts of these exports. Louisa Eberle, a staff attorney at the Sierra Club, emphasized that the preliminary injunction requires the DOE to proceed with evaluating pending applications but does not mandate specific decisions or halt the process of updating critical data.
Craig Segall, vice president at Evergreen Action, described the ruling as having a “paper tiger quality.” He pointed out that while the judge criticized the pause, DOE is still required to make a public interest determination on each project. Segall argued that the judge’s labeling of the pause as an “export ban” is an overreach, noting that DOE’s intention to study the issue does not constitute a ban.
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