Van Hollen Joins 70+ Senate, House Lawmakers Call on Biden to Ensure LNG Exports Are Fully in the Public Interest

May 07, 2024

Van Hollen Joins 70+ Senate, House Lawmakers Call on Biden to Ensure LNG Exports Are Fully in the Public Interest

Today, U.S. Senators Chris Van Hollen (D-Md.), Jeff Merkley (D-Ore.), Jack Reed (D-R.I.), and Edward J. Markey (D-Mass.), and U.S. Representatives Jared Huffman (D-Calif.), Raúl Grijalva (D-Ariz.), Nanette Barragán (D-Calif.), Jennifer McClellan (D-Va.), and Adriano Espaillat (D-N.Y.) joined their colleagues in signing a bicameral letter thanking President Biden and Department of Energy (DOE) Secretary Jennifer Granholm for pausing approvals of new liquefied natural gas (LNG) exports. The group applauds DOE for evaluating how such exports impact consumers, the climate, and vulnerable communities. The members urged the administration to develop meaningful economic and environmental tests to ensure that the DOE public interest determination criteria truly protect what is best for the public and climate.

"We believe the facts are clear: LNG exports harm U.S. households and industrial consumers," the members said. "With our allies well-supplied by existing exports, we agree that now is the time to step back and examine the long-term impacts that additional U.S. LNG exports will have on American consumers, industries, and the environment."

"This is an overdue opportunity to examine whether the LNG export boom creates value for the American people or, as we suspect, results in harm while primarily benefitting oil and gas companies that want to ship American LNG overseas for higher profits," the members concluded.

The lawmakers went on to request specific changes to how the DOE evaluates new LNG projects, including:

• A test for the effects that export approvals will have on U.S. consumers, particularly low-income households, whose energy burden is typically three times higher.
• Evaluations of greenhouse gas emissions tied to the LNG supply chain against international and domestic climate targets and examined within the context of existing and proposed LNG export facilities. To do so, DOE should publish greenhouse gas emission estimates for each proposed project.
• Ensuring that its public interest determinations follow the letter and spirit of President Biden's Executive Order on Revitalizing our Nation's Commitment to Environmental Justice for All and account for cumulative impacts faced by frontline communities.

The letter was signed by Senators Sheldon Whitehouse (D-R.I.), Elizabeth Warren (D-Mass.), Brian Schatz (D-Hawaii), Bernie Sanders (I-Vt.), Tina Smith (D-Minn.), Peter Welch (D-Vt.), and Cory A. Booker (D-N.J.), and Representatives Pramila Jayapal (D-Wash.), Alexandria Ocasio-Cortez (D-N.Y.), Summer Lee (D-Pa.), Jerrold Nadler (D-N.Y.), Eleanor Holmes Norton (D-D.C.), Barbara Lee (D-Calif.), Katie Porter (D-Calif.), Delia C. Ramirez (D-Ill.), Sean Casten (D-Ill.), Kevin Mullin (D-Calif.), Emanuel Cleaver, II (D-Mo.), Jan Schakowsky (D-Ill.), Ro Khanna (D-Calif.), Maxine Waters (D-Calif.), Greg Casar (D-Texas), Chellie Pingree (D-Maine), Grace F. Napolitano (D-Calif.), Julia Brownley (D-Calif.), Betty McCollum (D-Minn.), Adam B. Schiff (D-Calif.), Linda T. Sánchez (D-Calif.), Ilhan Omar (D-Minn.), Mark Takano (D-Calif.), Earl Blumenauer (D-Ore.), Judy Chu (D-Calif.), Mark DeSaulnier (D-Calif.), Nydia M. Velázquez (D-N.Y.), James P. McGovern (D-Mass.), Paul D. Tonko (D-N.Y.), Dan Goldman (D-N.Y.), Bonnie Watson Coleman (D-N.J.), Yvette D. Clarke (D-N.Y.), Jimmy Gomez (D-Calif.), Jesús G. "Chuy" García (D-Ill.), Henry C. "Hank" Johnson, Jr. (D-Ga.), Jamie Raskin (D-Md.), David J. Trone (D-Md.), Rashida Tlaib (D-Mich.), Andrea Salinas (D-Ore.), Tony Cárdenas (D-Calif.), Mike Levin (D-Calif.), Sydney Kamlager-Dove (D-Calif.), Jonathan L. Jackson (D-Ill.), Kathy Castor (D-Fla.), Frederica S. Wilson (D-Fla), Seth Magaziner (D-R.I.), Val Hoyle (D-Ore.), Shri Thanedar (D-Mich.), Angie Craig (D-Minn.), Alma S. Adams, Ph.D. (D-N.C.),Sara Jacobs (D-Calif.), Gabe Amo (D-R.I.),Brad Sherman (D-Calif.), André Carson (D-Ind.), Zoe Lofgren (D-Calif.), Raul Ruiz, M.D. (D-Calif.), Robert C. "Bobby" Scott (D-Va.), and Jamaal Bowman, Ed.D. (D-N.Y.).

Read the full letter here and below.

Dear President Biden and Secretary Granholm,

We write to thank you for pausing the approval of applications for new liquefied natural gas (LNG) to be exported to non-Free Trade Agreement countries while the Department of Energy (DOE) integrates critical considerations into whether these additional exports are in the "public interest," a determination required by law.

With our allies well-supplied by existing exports, we agree that now is the time to step back and examine the long-term impacts that additional U.S. LNG exports will have on American consumers, industries, and the environment. During this pause, the U.S. is still increasing LNG exports-48 billion cubic feet per day are already authorized for export by the DOE, which is more than triple the current U.S. export capacity. The pause also includes exceptions for national security emergencies. We look forward to working with you as you develop meaningful economic and environmental tests to ensure the DOE public interest determination criteria truly protects the public interest.

We believe the facts are clear: LNG exports harm U.S. households and industrial consumers. The Federal Energy Regulatory Commission (FERC) found that "continued growth in net exports, including from liquified natural gas (LNG) export facilities, will place additional pressure on natural gas prices." An analysis from Energy Innovation found that "approving pending LNG export terminals would increase expenditures on natural gas by U.S. households, businesses, and industry by $11-18 billion per year, with the largest burdens falling on low-income households." The Energy Information Administration (EIA) found that "higher LNG exports create a tighter domestic natural gas market… increasing domestic natural gas prices." To that end, DOE's public interest determination for LNG exports should include a test for the effects that export approvals will have on U.S. consumers, particularly low-income households, whose energy burden is typically three times higher.

In addition, DOE should conduct environmental tests as it works to evaluate whether export approvals are in the public interest. Greenhouse gas emissions associated with the LNG supply chain should be evaluated against international and domestic climate targets and examined within the context of existing and proposed LNG export facilities. To do so, DOE should publish greenhouse gas emission estimates for each proposed project. DOE should also ensure that its public interest determinations follow the letter and spirit of President Biden's Executive Order on Revitalizing our Nation's Commitment to Environmental Justice for All and account for cumulative impacts faced by frontline communities-especially those who live near LNG export facilities. At a time when Americans across the country are experiencing ever-harsher climate impacts, DOE must make LNG export decisions that are informed by the climate costs of proposed projects and the threats that LNG exports pose to low-income communities and communities of color.

Once again, thank you for taking this important step to put public health and economic well-being first by pausing the approval of new LNG export authorizations to non-Free Trade Agreement countries. This is an overdue opportunity to examine whether the LNG export boom creates value for the American people or, as we suspect, results in harm while primarily benefitting oil and gas companies that want to ship American LNG overseas for higher profits.

Sincerely,

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