On Wednesday, 21 different states banded together to sue the Biden administration over its decision to stop constructing the Keystone XL Pipeline, which would have transported oil from Canada and Montana to Texas refineries.

These states allege that Biden took advantage of executive action to undermine energy policies that oppose Biden’s green policies, despite the fact these polices were already passed by Congress.

The states’ lawsuit notes that Biden does not have the legal authority to “reshape the economy” when Congress is unwilling to do so. Furthermore, Congress has not delegated authority for Biden to do so. instead, the states assert that “Congress has not delegated such authority,” given that “it set specific rules regarding what actions the President can take about
Keystone XL and when. The President, together with various senior executive
officials, violated those rules.”

Due to Biden’s decision to cancel the pipeline, these states will see a signifiant loss in tax revenue. For instance, over the next year, an estimated $4 million in tax revenue will affect counties who would be housing construction workers building the pipeline. In addition, short-term revenues of $66 million will also not be realized across all the impacted states.

As the lawsuit notes, all the pipeline states, including their school districts and local communities, would have gained multiple millions of dollars in tax revenue from the operation and construction of the pipeline. Property taxes, for instance, during the first full year of the pipeline’s operations were projected to be roughly $55.6 million in just three states: Montana, South Dakota, and Nebraska.

The individuals suffering the most from Biden’s decision to cancel the pipeline live in “poorer rural areas,” which desperately need additional revenue from taxes in order to fund various public and community services. 

The lawsuit was launched by Texas, and it was joined by Wyoming, South Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Mississippi, Missouri, Nebraska, Utah, West Virginia , Alabama, Arizona, Georgia, Kentucky, Indiana, and Louisiana.

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