States in coalition criticize Biden’s halt on natural gas exports
A Coalition of State Attorneys General Criticizes Biden’s Decision to Freeze LNG Export Sites
A coalition of approximately two dozen state attorneys general has sent a scathing letter to President Joe Biden, condemning his recent decision to halt the approval of new liquefied natural gas (LNG) export sites. The attorneys general argue that this freeze, which was implemented due to climate change concerns, will have detrimental effects on the economy, national security, and is in violation of federal law.
“Your administration’s planned ‘pause’ – which we might more accurately call a series of constructive denials - of most American LNG exports is unlawful for several reasons,” the letter states.
The attorneys general proceed to outline their reasons, asserting that the Department of Energy does not possess the legal authority to outright deny export permits on a large scale. They also highlight that the agency failed to follow the standard rulemaking procedure, which involves a comprehensive process allowing input from stakeholders.
“Generally, agency legislative rules must go through the APA’s notice-and-comments procedures,” the letter explains. “And the pause here is a substantive rule required to go through that process. The pause effectively commands the Department to stop performing its obligations under the NGA to approve export applications and does not leave the agency free to exercise discretion unless it chooses to disobey the policy.
“That’s the exact type of substantive rule that needs to go through notice and comment because it modifies substantial rights,” the letter emphasizes.
The letter coincides with a hearing held by House Energy and Commerce Chair Rep. Cathy McMorris-Rodgers, who criticizes the export pause, asserting that it is, in fact, a ban. McMorris-Rodgers highlights the significant economic benefits and job creation associated with the natural gas industry.
“In 2022, in Pennsylvania alone, the natural gas industry supported $41.4 billion in economic activity, and shale gas development supported over 120,000 jobs,” Rodgers adds.
Over the weekend, 150 House Republicans also expressed their disapproval of the gas freeze in a letter to President Biden. They argue that both Democratic and Republican administrations have supported gas exports, emphasizing the importance of energy exports in the face of global conflicts.
While some House Democrats have criticized Biden’s decision, the White House has defended it, highlighting the United States’ current position as a global leader in LNG exports and the projected growth of these exports in the future. The White House also emphasizes the need to protect communities from pollution associated with new export facilities.
The state attorneys general who signed Tuesday’s letter represent Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming.
In what ways does the coalition of state attorneys general argue that President Biden’s decision violates federal law
, regardless of its length, essentially amends the MLA (Magnuson–Stevens Fishery Conservation and Management Act) without following the APA’s thorough process.”
The letter argues that the freezing of LNG export sites will have significant negative impacts on the economy. The attorneys general assert that LNG exports have been a major driver of economic growth in many states, creating jobs and generating revenue. They emphasize that the decision to halt new export sites will stifle economic development and harm the livelihoods of Americans who depend on the LNG industry for employment.
Furthermore, the attorneys general point out that LNG exports play a crucial role in promoting national security. They argue that by limiting LNG exports, the United States is depriving its allies of a reliable source of energy, which could lead to increased energy dependence on potentially unstable foreign suppliers. This, they argue, undermines the country’s energy security and strategic interests.
In addition to economic and national security concerns, the attorneys general contend that President Biden’s decision is in violation of federal law. They argue that the administration’s freeze on export permits without going through the proper rulemaking process is unlawful under the Administrative Procedure Act (APA). They assert that the APA requires agencies to provide notice and solicit public comments before implementing significant policy changes. By bypassing this process, they argue that the Biden administration is disregarding the legal framework and circumventing the rights of stakeholders to participate in decision-making.
The coalition of state attorneys general urges President Biden to reconsider his decision and to engage in a transparent and comprehensive rulemaking process that allows for input from all stakeholders. They emphasize the need for a thorough evaluation of the economic, national security, and environmental impacts of the LNG industry, rather than a blanket freeze that disproportionately affects the states and their residents.
In conclusion, the coalition of state attorneys general strongly criticizes President Biden’s decision to freeze LNG export sites. They argue that the decision will have detrimental effects on the economy, national security, and is in violation of federal law. They urge the administration to reconsider its approach and instead engage in a transparent and inclusive rulemaking process.
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