U.S. Senator Ted Cruz (R-Texas) sent a letter Wednesday calling on Federal Energy Regulatory Commission (FERC) Chairman Willie L. Phillips to appeal the U.S. Court of Appeals for the D.C. Circuit’s recent decision to vacate permits for the Rio Grande LNG and Texas LNG projects.
In his letter, Sen. Cruz warned that the ruling could set a “chilling precedent” for energy infrastructure development and threaten U.S. energy security. “If the permits are not reauthorized, over 7,000 high-paying jobs will disappear, and roughly $24 billion in investments in the Rio Grande Valley will be lost,” Cruz wrote.
Cruz emphasized the significance of the U.S.’s role as the world’s largest LNG exporter since 2016, surpassing Russia and Qatar, and argued that the court’s decision jeopardizes this progress. He highlighted concerns that the ruling could discourage future infrastructure investments if developers fear federal permits could be overturned due to procedural errors by regulators.
The senator urged FERC to appeal the decision and seek a stay while the appeal is ongoing, emphasizing the substantial local and national economic impacts if the projects are stalled. Cruz noted that construction on the Rio Grande LNG project had already begun, and the Texas LNG project was close to securing final investment commitments.
Cruz concluded by stressing the broader consequences of the court’s ruling, which could affect other major infrastructure projects like the $400 million Brazos Island Harbor Channel Improvement Project.
“There is no precedent for this decision. Charles McConnell, the former Assistant Secretary of Energy at the Department of Energy in President Barack Obama’s Administration says “If allowed to stand, the precedent from this ruling would be absolutely draconian to investment progress,” said Cruz.
The letter calls for a prompt response from FERC on the matter.
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