Sixteen states filed a lawsuit in the federal district court for the Western District of Louisiana challenging the Biden administration’s decision to stop new approvals of liquefied natural gas (LNG) exports to non-Free-Trade-Agreement countries. The states alleged that this “LNG Export Ban” violated the Natural Gas Act’s requirement that applications for export be approved unless the Secretary of Energy makes an affirmative finding that the application is not in the public interest. The states also asserted that the Biden administration’s actions were not authorized by statute; violated the Administrative Procedure Act’s notice-and-comment requirements; were arbitrary and capricious; violated the Congressional Review Act; and unreasonably delayed agency action. The states alleged, among other things, that the Ban was inconsistent with the U.S. Department of Energy’s (DOE’s) July 2023 denial of a rulemaking petition asking DOE to promulgate new regulations or guidance for its consideration of LNG export applications, in which the petitioners contended DOE should account for LNG’s net climate and environmental impact in its public-interest analysis. The states also asserted that the LNG Export Ban violated separation of powers and the Foreign Commerce Clause and that the actions of DOE and its officials as well as President Biden’s “Proclamation” were ultra vires. The states alleged that the LNG Export Ban was motivated by international pressure to transition away from fossil fuels and was also politically motivated, citing reporting that White House officials had acknowledged the Ban was a way “to address concerns of young and climate-focused voters.”

Lawsuit challenging the Biden administration’s decision to stop new approvals of liquefied natural gas exports to non-Free-Trade-Agreement countries.

Louisiana v. Biden

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States Challenged Biden Administration Halt on Approvals of LNG Exports

Filed

United States of America

Louisiana

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States Challenged Biden Administration Halt on Approvals of LNG Exports

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance