Republicans Introduce Legislation to Reverse Biden’s Moratorium on LNG Exports

The Biden administration’s recent decision to halt liquefied natural gas (LNG) export permits has sparked controversy and criticism from Republicans in the Senate. The Unlocking Domestic LNG Potential Act, introduced by Senate Banking Committee Ranking Member Tim Scott, R-S.C., aims to depoliticize LNG exports by eliminating the Department of Energy’s (DOE) authority to approve such permits and giving the independent Federal Energy Regulatory Commission (FERC) exclusive authority to approve or deny applications for the siting, construction, expansion, or operation of LNG export projects.

The move comes after the White House and DOE paused permits for LNG export terminals over their potential climate impacts. President Biden’s statement on the matter framed it as a part of his sweeping climate agenda, but energy experts and Republicans argue that LNG exports are critical for maintaining low energy prices in the U.S., helping American allies to wean off Russian gas, and decreasing global carbon emissions.

Senator Scott’s bill, which is cosponsored by 16 fellow Senate Republicans, seeks to address the political nature of the moratorium and ensure that the independent FERC, rather than the politically-appointed DOE, makes decisions on LNG export permits. The bill would amend the Natural Gas Act of 1938, requiring FERC to deem the importation or exportation of natural gas to be consistent with the public interest when approving or rejecting permits.

The cosponsors of the bill include GOP Sens. Mike Crapo of Idaho, James Risch of Idaho, Bill Hagerty of Tennessee, Markwayne Mullin of Oklahoma, Joni Ernst of Iowa, John Hoeven of North Dakota, Pete Ricketts of Nebraska, Rick Scott of Florida, Bill Cassidy of Louisiana, Ted Budd of North Carolina, Katie Britt of Alabama, John Thune of South Dakota, Thom Tillis of North Carolina, Mike Rounds of South Dakota, Tom Cotton of Arkansas, and John Kennedy of Louisiana.

The Biden administration’s moratorium on LNG permits has been met with criticism from energy experts and Republicans, who argue that it will harm American energy independence, increase energy prices, and decrease global carbon emissions. The pause on LNG permitting is expected to impact at least two projects with larger capacities and two projects with smaller capacities, according to federal data. However, it is unclear which specific projects will be affected.

Former Energy Secretary Rick Perry has spoken out against the moratorium, stating that it is an act of economic hostility to withhold U.S. LNG supply from allies and will result in an increase in emissions. Perry also noted that the moratorium will empower Putin and kill jobs in Pennsylvania.

The Unlocking Domestic LNG Potential Act is an attempt by Republicans to address the political nature of the moratorium and ensure that the independent FERC, rather than the politically-appointed DOE, makes decisions on LNG export permits. The bill would amend the Natural Gas Act of 1938, giving FERC exclusive authority to approve or deny applications for the siting, construction, expansion, or operation of LNG export projects.

The bill’s cosponsors argue that LNG exports are critical for maintaining low energy prices in the U.S., helping American allies to wean off Russian gas, and decreasing global carbon emissions. They also note that the moratorium is a political move that undermines American energy independence and harms the economy.

The Unlocking Domestic LNG Potential Act is an important piece of legislation for Republicans, as it addresses the political nature of the Biden administration’s moratorium on LNG exports and ensures that the independent FERC makes decisions on LNG export permits. The bill is expected to receive support from the GOP and could be a significant step towards increasing American energy independence and decreasing global carbon emissions.

In conclusion, the Biden administration’s moratorium on LNG exports has sparked controversy and criticism from Republicans in the Senate. The Unlocking Domestic LNG Potential Act, introduced by Senate Banking Committee Ranking Member Tim Scott, aims to depoliticize LNG exports by eliminating the DOE’s authority to approve permits and giving the independent FERC exclusive authority to approve or deny applications for LNG export projects. The bill is expected to receive support from the GOP and could be a significant step towards increasing American energy independence and decreasing global carbon emissions.