In a letter Wednesday, Texas Republican Sen. Ted Cruz called on Federal Energy Regulatory Commission (FERC) Commissioner Willie Phillips to appeal a federal court ruling in August that canceled approved two major liquefied natural gas (LNG) export terminals in Texas. [emphasis, links added]
FERC previously approved the Rio Grande LNG and Texas LNG export terminal projects, but The U.S. Court of Appeals for the D.C. Circuit reversed those approvals and sent the issue back to FERC for further considerationAccording to UtilityDive.
In his letter to Phillips (download PDF), Cruz urged FERC regulators to appeal the ruling and put it on hold while the appeals process proceeds, The reasons cited were the unprecedented nature of the court's ruling, the broader chilling effect the court's actions could have on investment, and the potential negative impact on national security.
“This decision sets a chilling precedent that will harm the development of project infrastructure related to all forms of energy, directly harming America's energy security and Therefore national security” Cruz wrote in the letter.
“If the license is not reauthorized, 7,000+ high-paying jobs disappear, and approximately $24 billion in investment in the Rio Grande Valley will be lost.
“This decision has no precedent,” Cruz continued. “Charles McConnell, former assistant secretary of energy in President Barack Obama's administration, said 'If allowed The precedent set by this ruling is absolutely harsh on investment progress in the long term. “
Specifically, the court held FERC erred in not issuing an environmental review that focused on how the terminal would impact so-called “environmental justice” communities and failed to adequately evaluate a proposed carbon capture and storage (CCS) system at one of the facilities, according to UtilityDive.
As a result, schedules at both terminals may be disrupted.
Cruz also said the court ruling also threatens other developments, such as a massive $400 million project to deepen the Brownsville Shipping Channel, other investments worth $20 billion and the export of up to 31 million tons of liquefied natural gas annually to other countries. .
Additionally, developers seeking to build large infrastructure projects may start to reconsider whether key approvals can be revoked because regulators (rather than the developers themselves) make procedural errors that can be seized upon by the courts.
Liquefied natural gas has become a major issue in domestic politics, especially since Biden-Harris Administration Unilaterally Freezes New Approvals for Export Terminals Shipments are proposed in January to countries that do not have free trade agreements with the United States.
Critics of the policy have also emphasized A pause could dampen investment, and others have noted that LNG is critical to U.S. geopolitical interests Because as the war in Ukraine drags on, European allies have options to replace Russian gas.
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