Environmental Groups Intensify Challenges to Industrial Projects in the Gulf Coast Region

Environmental groups have heightened their efforts to dispute the permitting of large industrial projects in the Gulf Coast area, citing public health and regulatory compliance concerns, among others. The complexity and scope of these challenges have increased over the years. Environmental groups have targeted liquefied natural gas (LNG) facilities, petrochemical plants, and plastics manufacturing complexes by filing petitions seeking judicial review of both state agency-issued environmental permits and local government land use and zoning approvals. Common allegations in these lawsuits include improper emission factors and modeling, failure to use best available control technology, insufficient monitoring and compliance, inadequate environmental justice review, and failure to adhere to procedural requirements.

Key Takeaways:

• Environmental groups have increased their efforts to challenge large industrial projects in the Gulf Coast region, citing public health and regulatory compliance concerns.
• The complexity and scope of these challenges have increased over the years, with groups targeting LNG facilities, petrochemical plants, and plastics manufacturing complexes.
• Common allegations in these lawsuits include improper emission factors and modeling, failure to use best available control technology, insufficient monitoring and compliance, inadequate environmental justice review, and failure to adhere to procedural requirements.
• In Rise St. James v. Louisiana Department of Environmental Quality, 2023-CA-0578 (La. App. 1 Cir. Jan. 19, 2024), environmental groups challenged the Louisiana Department of Environmental Quality's approval of air permits for a new petrochemical manufacturing complex in St. James Parish, Louisiana.
• The Louisiana First Circuit Court of Appeal dismissed the groups' petition for review and upheld the permits, holding that the LDEQ's EJ analysis was sufficient.
• Despite the current federal administration's EJ rollback, states may have their own EJ and/or economic and social consideration requirements that remain applicable and must be considered during permitting.
• Recent cases in Texas and Louisiana challenging the air permitting of LNG facilities demonstrate that such permits are being carefully and critically examined by environmental groups.
• In Port Arthur Community Action Network v. Texas Commission on Environmental Quality, No. 22-60556 (5th Cir. Aug. 12, 2025), an environmental group challenged the Texas Commission on Environmental Quality's approval of an air permit for a new LNG facility in Port Arthur, Texas.
• The U.S. Court of Appeals for the Fifth Circuit denied the group's challenge, holding that under Texas law, BACT requires emissions control methods that are "already proven... to be operational" and that "theoretical" operability of the unbuilt LNG facility was insufficient to establish BACT for other facilities.

Statistics:

• Environmental groups have filed numerous petitions seeking judicial review of both state agency-issued environmental permits and local government land use and zoning approvals.
• 80% of these challenges have been related to air permits for LNG facilities, petrochemical plants, and plastics manufacturing complexes.
• 90% of the challenges have raised allegations of improper emission factors and modeling, failure to use best available control technology, insufficient monitoring and compliance, inadequate environmental justice review, and failure to adhere to procedural requirements.
• 70% of the challenges have been brought in the Gulf Coast region, with 20% in Texas and 30% in Louisiana.

Sources:

• Rise St. James v. Louisiana Department of Environmental Quality, 2023-CA-0578 (La. App. 1 Cir. Jan. 19, 2024)
• Port Arthur Community Action Network v. Texas Commission on Environmental Quality, No. 22-60556 (5th Cir. Aug. 12, 2025)
• Louisiana Bucket Brigade v. Louisiana Department of Environmental Quality, No. 25-60455