Democratic lawmakers were able to secure a deal with West Virginia Sen. Joe Manchin to expedite the Mountain Valley Pipeline (MVP) in an attempt to address the issue of energy shortage due to sanctions on Russia over its war on Ukraine.
The deal includes a commitment from United States President Joe Biden, Leader Chuck Schumer, and Speaker Nancy Pelosi. Manchin's office noted that the commitment from the three officials will be used to pass legislation for the MVP to be completed.
Democrats and Joe Manchin
His office noted that they will also be used to "streamline the permitting process for all energy infrastructure." The commitments will be used from "transmission to pipelines and exports facilities."
The West Virginia senator's office said that it will be voted on at the end of the fiscal year, which would be on Sept. 30, 2022. It added that the MVP is already 94% completed and will unlock "2 billion cubic feet of natural gas per day" once it is operational, as per WOWK-TV.
Manchin's office said that $1.2 billion will be used in additional investment to complete the MVP project which would take roughly four to five months. It is expected to produce roughly 2,500 construction-related jobs, provide $40 million in new tax revenue for West Virginia, and give $200 to $250 million more per year in royalties for state landowners.
The deal is part of Democrats' broader deal on an economic package that would overhaul the United States' process for approving new energy projects. In order to get Manchin to support the healthcare package that was etched last week, Democrats agreed to attempt to advance separate legislation on expediting energy projects.
According to the Washington Post, the changes will fall outside the bounds of the Senate budget procedure that the party is using to pass its budget bill. That would make it impossible for Democrats to approve with only 51 votes.
Mountain Valley Pipeline
The new agreement would require 60 votes to be approved and would require GOP support to be signed into law. Republicans have previously supported similar measures but the agreement could face defections from liberal Democrats who have warned against making it easier to open new oil and gas projects.
The deal comes as the 100-seat Senate is now evenly split between Democrats and Republicans with Vice President Kamala Harris being able to cast a tie-breaking vote. The side deal would set new two-year limits, or maximum timelines, for environmental reviews for "major" projects.
Furthermore, it would aim to streamline the government processes for deciding approvals for energy projects by centralizing decision-making with one lead agency. Other provisions would limit legal challenges to energy projects and give the Energy Department more authority to approve electric transmission lines that are deemed to be "in the national interest."
The deal comes as Manchin has been a long-time supporter of the MVP and was among several lawmakers who previously asked the Federal Energy Regulatory Commission to support the pipeline's completion and approve a four-year permit extension, Metro News reported.
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