The brewing legal fight over Biden’s gas pause

Presented by American Chemistry Council – Chemistry Creates America Competes: Your guide to the political forces shaping the energy transformation

Feb 07, 2024 View in browser   By Brian Dabbs Presented by A heat exchanger and transfer pipes at Dominion Energy's Cove Point LNG Terminal in Maryland. | Cliff Owen/AP The Biden administration is facing some powerful new adversaries in its decision to pause natural gas exports: every Republican attorney general in the United States. The 23 attorneys general urged President Joe Biden and Energy Secretary Jennifer Granholm in a letter Tuesday to resume approvals for new liquefied natural gas projects. Otherwise, they’re threatening to take their opposition to the courts. The Department of Energy announced in January that it would temporarily stop approving LNG exports to conduct new studies on the climate and economic impacts of shipping gas. The decision came after mounting pressure from environmentalists — and months before an election where Biden may need young climate voters to win a second term. Now attorneys general say the administration violated the law by not getting any “clear congressional authorization” before issuing the pause. They point to the Natural Gas Act’s requirement that DOE approve LNG exports to non-free-trade-agreement countries unless the shipments violate the public interest. (Environmentalists say LNG exports could worsen climate change and thus are not in the public’s interest.) The attorneys general also say the pause violates the Administrative Procedure Act, which often requires notice-and-comment procedures for new regulatory actions. So far, no suit has surfaced. But it could come quickly. Biden’s position on gas exports has far-reaching consequences for the presidential election and U.S. alliances abroad. In the wake of the Russian invasion of Ukraine, Biden pledged to ply Europe with enough LNG to supplant Russian gas. Asian markets including China, meanwhile, are projected to drive LNG demand in the future. But the U.S.’s growing oil and gas production, including its emergence as the world’s top gas exporter, poses a problem for Biden at the polls in November. Many voters are unaware of his administration’s record investment in clean energy — including the 2022 Inflation Reduction Act — and some key constituencies want more action to shut down fossil fuel infrastructure. Some environmentalists also argue that LNG could even be worse for climate change than coal consumption. The issue is arguably as politically important for Republicans, who are trying to paint the administration’s pause on LNG exports as a de facto ban. Biden has also faced pushback from some Democrats: Pennsylvania Sens. John Fetterman and Bob Casey said they would push the administration "to reverse this decision" if the pause ends up affecting natural gas jobs in their state. The debate will no doubt continue tomorrow, when Deputy Energy Secretary David Turk will testify on the pause at the Senate Energy and Natural Resources Committee. While much of the LNG debate has focused on climate change, the Biden administration has stressed that the pause is also meant to determine the impact of gas exports on domestic energy prices. A group of industrial energy consumers say the exports are hurting U.S. manufacturers’ bottom lines.   It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Brian Dabbs. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Catherine Morehouse breaks down why some Democratic lawmakers are calling on utilities to disclose how they vote on significant grid issues in their regional power market.   A message from American Chemistry Council – Chemistry Creates America Competes: President Biden: American chemistry is the backbone of innovation. It's time to address the regulatory overload stifling American chemistry. Chemistry powers our semiconductors, medical devices, and clean energy initiatives. But your administration’s avalanche of regulations is hampering America’s progress and competitiveness. American chemistry is more than an industry; it's our future. The Biden Administration must commit to smarter, growth-oriented regulations before it’s too late - because when chemistry is enabled to create, America competes.   Power Centers Sen. Ed Markey (D-Mass.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) film a video for social media after a press conference marking the five-year anniversary of the Green New Deal resolution. | Francis Chung/POLITICO A Green New Deal anniversary The 5-year-old progressive plan for addressing climate change known as the Green New Deal continues to face skepticism from Democratic moderates and hostility from Republicans, Emma Dumain writes. Champions of the political program argue it helped lay the groundwork for Biden’s climate agenda. Skeptics inside the Democratic Party have cast doubt on whether such a far-reaching economic transformation is doable. For Republicans, it’s become a handy catchall for federal overreach and environmentally minded policies. “Five years ago, we introduced a 10-year vision for social and ecological transformation big enough to save our planet,” said Rep. Alexandria Ocasio-Cortez (D-N.Y.) at a press conference outside the Capitol on Tuesday celebrating the anniversary. To the critics: "Today, we can say that they were wrong.” $1 billion oops BP said it wrote down the value of its U.S. offshore wind business by $1.1 billion last year. That cemented a shift for the British petroleum giant as it increases oil and gas production and rethinks how it approaches clean power projects, Benjamin Storrow writes. The announcement follows BP’s split last month with Equinor, the Norwegian oil company it had partnered with on three offshore wind projects in the Northeast. BP sold its stake in two projects — Empire Wind 1 and 2 — and gained ownership of the Beacon Wind project in the breakup. But company executives signaled they have no immediate plans to move forward with the project off of Nantucket, Massachusetts. Soot limits and the changing climate EPA has toughened pollution standards for the fine particles called soot for the first time in more than a decade. Experts say the move could save thousands of lives and make it harder for industries to continue to burn fossil fuels, Sean Reilly reports. The stricter limit is “a game changer” that will “shape the world our children will inherit tomorrow,” EPA Administrator Michael Regan told reporters. The big caveat is that the standards won't counter the vast plumes of smoke spawned by larger and longer-lasting wildfires linked to climate change. No 'clumsy' climate policy here Britain's energy secretary told POLITICO the government will not repeat the kind of “clumsy” climate policies that caused social unrest elsewhere in Europe, Charlie Cooper and Victor Jack write. In an interview, Claire Coutinho said “riots and protest happening across Europe” were the result of policies “which the public feel are not in their interests."   A message from American Chemistry Council – Chemistry Creates America Competes:     YOUR GUIDE TO EMPIRE STATE POLITICS: From the newsroom that doesn’t sleep, POLITICO's New York Playbook is the ultimate guide for power players navigating the intricate landscape of Empire State politics. Stay ahead of the curve with the latest and most important stories from Albany, New York City and around the state, with in-depth, original reporting to stay ahead of policy trends and political developments. Subscribe now to keep up with the daily hustle and bustle of NY politics.      In Other News Full stop: Ørsted, the European wind power giant, said it will cut costs, pause dividends and sell assets. The company struggled in the face of higher interest rates and supply-chain challenges as it sought to expand its U.S. business. Slowdown: Oil production in the Permian Basin in Texas and New Mexico, the U.S.'s largest oil field, is expected to see the slowest annual growth since 2021 after a slew of corporate deals.   A message from American Chemistry Council – Chemistry Creates America Competes: President Biden, America’s priorities depend on chemistry America’s chemical industry is the foundation of semiconductors, medical devices, infrastructure, defense, clean energy and more. But there's a looming threat – ballooning regulatory overload. Over the past two decades, regulations on chemical manufacturing have doubled. This isn't just numbers, it's a reality that hampers policies like the Inflation Reduction Act, the Infrastructure Investment and Jobs Act, and the Chips and Science Act. The Biden Administration’s current approach is a direct hit to America's innovation and global standing. We need to wake up to the reality that over-regulation stifles growth and production. It's time for the Biden Administration to adopt smarter, growth-oriented regulations. Join us in urging the Biden Administration to stop undercutting national priorities and American competitiveness. American chemistry isn't just an industry -- it's our future. When Chemistry Creates, America Competes.   Subscriber Zone A showcase of some of our best subscriber content. Grid Deployment Office Director Maria Robinson. | Francis Chung/E&E News The Department of Energy is taking applications for $1.2 billion in funding to build out high-voltage transmission lines. Corn growers want Biden to show more support for ethanol as a climate solution. Ford and the engine-maker Cummins are urging EPA to quickly finalize its greenhouse gas rule for heavy-duty trucks. That's it for today, folks! Thanks for reading.   DON’T MISS POLITICO’S GOVERNORS SUMMIT: Join POLITICO on Feb. 22 to dive into how Governors are wielding immense power. While Washington remains gridlocked, governors are at the center of landmark decisions in AI and tech, economic development, infrastructure, housing, reproductive health and energy. How are they setting the stage for the future of American politics, policies and priorities? How are they confronting major challenges? Explore these questions and more at the 2024 Governors Summit. REGISTER HERE.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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