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A full federal appeals court has stepped in to a fight over the Biden administration's climate-change costs, clearing the way for a Supreme Court challenge by ten Republican-led states.
The fifth U.S. Circuit Court of Appeals rejected the states' request to deny the court's earlier decision by a three-judge panel, which allowed the administration to continue using for the time being, Obama's estimates, which had been slashed under President Donald Trump.
"We are disappointed in the 5th Circuit's decision and we will appeal to the Supreme Court," said a spokeswoman for Louisiana Attorney General Jeff Landry, who is leading the states' fight.
The Justice Department of the United States, which represents the federal government in the case, has declined to comment.
The cost of greenhouse gas estimates, which was first used by the Obama administration to measure the impact that proposed initiatives would on global warming, has been divided into two sections. The carbon estimate was set at $50 per ton of emissions, but the Trump administration was reduced to $10 or less per ton.
President Joe Biden established an interagency working group to determine new values on his first day in office last year. As an interim measure, the working group adopted the Obama administration's estimates.
Last April, Landry, joined by the attorneys generals of Alabama, Florida, Georgia, Kentucky, Mississippi, South Dakota, Texas, West Virginia, and Wyoming, filed a lawsuit in a federal court. They claimed that the Biden administration violated the law by changing the value without giving the public the opportunity to weigh in.
The states said that increasing "apply coercive pressure" to the States in modifying their approach to greenhouse gas regulation, increase the cost of energy-related regulatory action, and reduce the states' revenue from oil-and-gas and mineral leases.
In February, a district court approved and granted a preliminary injunction, but the 5th Circuit panel put the injunction on hold in March as it considered the administration's appeal.
The commission said the injunction was inappropriate because the government is likely to win its appeal. It said the states' assumptions about the estimates were "speculative" and "merely hypothetical" and that an injunction would "irreparably" damage the federal government by acting as a prior restraint on the agencies' decision-making process.
The states' request for a en banc review was denied without commenting on the evidence on Thursday's one-paragraph order.
The issue of State of Louisiana et al. v. Biden et al., the 5th Circuit Court of Appeals in the United States, No. 22-30087.
Louisiana Attorney General's Office, Elizabeth Baker Murrill and Joseph Scott St John
Jeffrey Sandberg and Thomas Pulham of the Justice Department of the United States have represented Biden's administration.