Manchin’s favorite pipeline may not be a done deal

Your guide to the political forces shaping the energy transformation

Jul 12, 2023 View in browser   By Alex Guillén This 2018 photo shows a section of downed trees atop a ridge near homes along the route of the proposed Mountain Valley pipeline in Lindside, W.Va. | Steve Helber/AP Photo For an embattled natural gas pipeline that has struggled for years to get the federal permits it needs, last month’s debt ceiling deal was like landing a golden ticket from Willy Wonka. A provision effectively approving the Mountain Valley pipeline was tucked into that must-pass bill, thanks to Sen. Joe Manchin (D-W.Va.). But instead of an everlasting gobstopper, Mountain Valley may be chewing on the gum that tastes like a three-course meal and then turns you into a blueberry. Construction of the pipeline — a 300-mile natural gas line from West Virginia to Virginia — has hit legal snag after snag. On Monday, the U.S. Court of Appeals for the 4th Circuit halted construction for portions of the pipeline crossing Jefferson National Forest in Virginia as it considers whether the Forest Service adequately considered environmental impacts. And on Tuesday, the court stayed a biological opinion on the project from the Fish and Wildlife Service, pending a legal challenge from the Wilderness Society. The opinion — in which the agency determined that the work won’t harm endangered species — is required for key approvals from other agencies. The pipeline’s supporters are apoplectic. Manchin called the order halting construction “unlawful,” with Sen. Shelley Moore Capito (R-W.Va.) following suit. “This latest effort by the activist Fourth Circuit Court flies in the face of the law that was passed by a bipartisan Congress and signed by President Biden,” she tweeted. But environmentalists argue that Congress overreached with the Mountain Valley provisions in the debt ceiling deal. Specifically, they say a provision dismissing legal challenges to the pipeline is unconstitutional. Still, their legal actions may not delay the pipeline for long. The Justice Department this week pushed back on environmentalists’ argument in court. Observers have also speculated that the court’s stay on construction may just be a stopgap until it can be fully briefed on the issue — and that it could clear the pipeline to resume work in the coming days or weeks. But wait, there’s more. Even if Mountain Valley gets built, its 75-mile Southgate expansion running into North Carolina is still very much up in the air, writes Catherine Morehouse. Like the main pipeline, the extension has a long, contentious history: EPA Administrator Michael Regan first denied Southgate’s water quality certifications in 2020, when he ran North Carolina’s environmental division. Southgate wasn’t included in the debt ceiling deal that green-lighted Mountain Valley. That means it could “continue to face some of these legal issues that have plagued Mountain Valley proper for quite some time,” said Matthew Bernstein, a senior shale analyst at Rystad Energy.   It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Alex Guillen. Arianna will be back soon! Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Ben Lefebvre breaks down the latest legal action on the Mountain Valley pipeline. Power Centers The Petra Nova carbon capture plant in Texas. | NRG La Vita Petra Nova The gas-fired power plant built for one of the nation's grandest experiments in capturing carbon pollution is slated to come back online this weekend, writes Carlos Anchondo. It's the latest sign that operations could resume at the Petra Nova site in Texas, which was the only large-scale U.S. power plant with carbon capture before it shuttered in 2020. Petra Nova's progress will be closely watched as a bellwether for other plants as EPA gears up to encourage carbon capture through strict pollution standards. The Show Me rates Missouri regulators have ordered aggressive changes to electricity rates so that customers will pay more for using power during times of peak demand. Many states use that structure voluntarily, Jeffrey Tomich writes, but the Show Me State stands out because the stark differences in price are meant to influence consumers' behavior. The move has alarmed consumer advocates, who say low-income users and others whose habits can't or won't change could face an increased risk of cutoff. GOP targets ESG House Republicans kicked off their much-touted "ESG month" Wednesday with a hearing targeting investment practices that incorporate environmental, social and governance matters. House Financial Services Chair Patrick McHenry (R-N.C.) went after the SEC's pending regulation requiring companies to report climate risks, while Democrats framed the GOP campaign as an attack on diversity and investor choice. Eleanor Mueller and Allison Prang wrote more takeaways from the hearing. In Other News This shade is called "Bon Iver": A paint declared by the Guinness World Records as the world's whitest has the ability to cool surfaces, fighting climate change without needing energy. Let's make a deal: Volkswagen and Jeep maker Stellantis are moving closer to a deal that would see them create a new company to produce the copper and nickel needed for electric vehicle batteries.   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.     Subscriber Zone A showcase of some of our best subscriber content. Damage from Hurricane Ian is seen on the causeway leading to Sanibel Island from Fort Myers, Fla., last year. | Gerald Herbert/AP Photo Lawmakers have taken the unusual step of seeking more federal funding for disaster recovery even though the Biden administration hasn't asked for it. “We know this fund is going to run out,” said Rep. Jared Moskowitz (D-Fla.), who introduced a bill to replenish the Disaster Relief Fund. Farmers Insurance will stop issuing home, auto and umbrella policies in Florida, adding turmoil to the state's market. That's it for today, folks! Thanks for reading.   STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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