In a move to counter the Biden administration’s moratorium on liquefied natural gas (LNG) export permits, Senate Republicans have introduced legislation called the Unlocking Domestic LNG Potential Act. The bill, authored by Senate Banking Committee Ranking Member Tim Scott and cosponsored by 16 fellow Senate Republicans, aims to eliminate the Department of Energy’s authority to green-light LNG export permits, thereby depoliticizing the process.
The White House and DOE recently paused permits for LNG export terminals due to concerns about their potential climate impacts. However, critics argue that exporting U.S. natural gas would actually lower global emissions. “President Biden’s move to halt American energy exports is pure politics,” said Scott, adding that it would make the U.S. and its allies more reliant on foreign adversaries like Russia.
Scott’s bill seeks to give the independent Federal Energy Regulatory Commission (FERC) exclusive authority to approve or deny applications for LNG export projects. FERC would be required to consider the public interest in its decision-making process.
The bill has gained support from various GOP senators, including Mike Crapo, James Risch, Bill Hagerty, Markwayne Mullin, Joni Ernst, John Hoeven, Pete Ricketts, Rick Scott, Bill Cassidy, Ted Budd, Katie Britt, John Thune, Thom Tillis, Mike Rounds, Tom Cotton, and John Kennedy.
President Biden’s order to pause pending permits for LNG export facilities is seen as a major victory for environmental activists who oppose fossil fuel development. However, energy experts and Republicans argue that LNG exports are essential for maintaining low energy prices in the U.S., helping American allies reduce reliance on Russian gas, and decreasing global carbon emissions.
Former Energy Secretary Rick Perry expressed concern over the economic and national security implications of the moratorium. He stated that withholding U.S. LNG supply from allies would empower Putin and force them back to Russia and Qatar for energy supply, while also increasing emissions.
The impact of the moratorium on specific proposed projects is yet to be determined. However, it is known that at least two projects with larger capacities and two with smaller capacities will be affected. The pause will only impact projects that have gone through FERC’s approval process and are ready for DOE approval.
This legislation comes as part of the ongoing debates surrounding energy policies and climate change. Supporters argue that it is crucial to strike a balance between environmental concerns and economic considerations, while critics claim that the Biden administration’s approach is politically motivated and detrimental to American energy independence.
As the bill progresses, it will be important to monitor the reactions from both political parties and the potential impacts on energy markets, national security, and climate goals.
