House Votes to Reverse LNG Pause

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The House approved legislation (HR 7176) to reverse President Biden’s decision to put a pause on new approvals of liquified natural gas exports.

The bill passed on a vote of 224 to 200, largely along party lines. The prospects for approval in the Senate is uncertain.

The measure takes away authority from the Energy Department to approve LNG exports, leaving the Federal Energy Regulatory Commission with the sole power to approve LNG projects.

President Biden said he put a hold a future LNG exports to give the Administration time to review the economic and environmental impacts of LNG.

The Administration issued a statement strongly opposing the House bill. Eliminating the requirement that the Energy Department authorize LNG exports to countries with which the United States does not have a free trade agreement “would undermine the ability of the United States to ensure that export of a critical and strategic resource is consistent with our economic, energy security, foreign policy and environmental interests,” the Office of Management and Budget said in a statement of Administration policy.

“Doing so would also strip back important safeguards that prevent price pressure on industrial and residential consumers, as well as vital consumer, domestic manufacturing, and energy security protections. It would also eliminate an important check that export to non-FTA countries will be consistent with US law and policy,” according to the statement.

The statement did not outright threaten a Presidential veto of the legislation.

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