Biden halts oil, gas leases amid legal fight on climate cost

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Biden halts oil, gas leases amid legal fight on climate cost
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The Biden administration is delaying decisions on new oil and gas drilling on federal land and other energy-related actions after a federal court blocked the way officials were calculating the real-world costs of climate change.

WASHINGTON —

A brief filed by the Justice Department late Saturday “confirmed that certain activities associated with fossil fuel leasing and permitting programs are impacted by the February 11, 2022, injunction,’’ the Interior Department said in a statement. “Delays are expected in permitting and leasing for the oil and gas programs.’’

President Joe Biden on his first day in office restored the climate cost estimate to about $51 per ton of carbon dioxide emissions, after President Donald Trump had reduced the figure to $7 or less per ton. Trump’s estimate included only damages felt in the U.S. versus the global harm previously used by President Barack Obama.

The Energy Department has identified 21 rulemakings that would be affected by the ruling, while the Transportation Department identified nine, the Environmental Protection Agency five and the Interior Department three, Mancini said. Dozens more environmental analyses required by the National Environmental Policy Act also would be affected, he said.

The ruling by Cain, a Trump appointee, came after 10 Republican attorneys general sued over Biden’s executive order, arguing that Biden lacked authority to raise the climate-cost estimate under the Constitution, which gives that power solely to Congress. Cain agreed, writing that use of the climate damage figure in oil and gas lease reviews would “artificially increase the cost estimates of lease sales” and cause direct harm to energy-producing states.

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