Manchin's Side Deal Seeks to Propel Mountain Valley Pipeline

Researched by Industrial Info Resources (Sugar Land, Texas)--In agreeing to support the Inflation Reduction Act (IRA) of 2022, Senator Joe Manchin (D-West Virginia) secured a promise from Democratic leaders in Congress to support reform of the permitting process for energy infrastructure projects. Manchin's proposed legislation specifically targets the Mountain Valley Pipeline (MVP), which has been hampered by litigation and adverse court rulings for years.

The 303-mile pipeline would move natural gas from West Virginia to Virginia. Whether Manchin's proposed reforms would ease the progress of the project remains to be seen.

Executives with Equitrans Midstream Corporation (NYSE:ETRN) (Pittsburgh, Pennsylvania), the lead partner in the project, said during the company's second-quarter earnings conference call that they were targeting an in-service date in the second half of 2023. Industrial Info is tracking five projects tied to the MVP. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed project reports and click here for related plant profiles.

"We've addressed near-term debt maturities, and we are working hard on completing the MVP permitting process," said Equitrans Chief Executive Officer Tom Karam during the company's August 2 conference call. "It remains clear that our abundant domestic natural gas reserves must be developed and transported to meet the world's increasing demand for reliable energy. It's also clear that MVP would not only provide reliable energy, (but) will also play a key role in our energy security as the geopolitical unrest continues."

Equitrans is pursuing new permits for the project that were struck down by a three-judge panel of the Fourth Circuit U.S. Court of Appeals. The company also has asked the Federal Energy Regulatory Commission (FERC) to extend the deadline to complete the project by four years to October 13, 2026. For more information, see June 28, 2022, article - Mountain Valley Pipeline Seeks 4-Year Extension to Complete Project.

Karam heaped praise on Manchin's proposed regulatory reforms, which, among other things, call for completion of the pipeline. The legislation would require "the relevant agencies to take all necessary actions to permit the construction and operation of the Mountain Valley Pipeline" and would give the D.C. Circuit Court of Appeals jurisdiction over any further litigation. The D.C. Circuit is seen as more friendly to the pipeline project than the Fourth Circuit Court of Appeals, where a three-judge panel has repeatedly shot down federal permits for the project due to environmental issues.

Karam said the need for the reforms "should be crystal clear. By creating a very defined set of rules, this proposed legislation provides for a continued, thorough review and approval process that is led by the expertise of federal agencies, and provides best practices for public participation."

According to a summary of the reforms, the measure would, among other things:

• Direct the president to designate and periodically update a list of at least 25 high-priority energy infrastructure projects and prioritize permitting for these projects.
• Require a balanced list of project types, including: critical minerals, nuclear, hydrogen, fossil fuels, electric transmission, renewables, and carbon capture, sequestration, storage and removal.
• Set maximum timelines for permitting reviews, including two years for National Environmental Policy Act (NEPA) reviews for major projects and one year for lower-impact projects.
• Require a single interagency environmental review document and concurrent agency review processes.
• Designate a lead agency to coordinate interagency reviews of energy infrastructure projects.

To address "excessive litigation delays," Manchin's proposals would:

• Set a statute of limitations for court challenges.
• Require that if a federal court remands or vacates a permit for energy infrastructure, the court must set and enforce a reasonable schedule and deadline, not to exceed 180 days, for the agency to act on remand.
• Require random assignment of judges for all federal circuit courts. In June, the Fourth Circuit Court denied a motion by Mountain Valley to randomly select the three-judge panel that oversees the cases. Mountain Valley maintained the same three judges presided over most of the pipeline cases, hence the call for a random selection.

Manchin is targeting the end of September for a vote on his legislation.

But even if Congress passes the reform measure, there's no guarantee it would ensure the completion of the MVP, notes an August 14 article in The Roanoke Times. Among other things, the article indicates that the Washington, D.C.-based U.S. Circuit Court has been more willing to scrutinize pipeline decisions by FERC in recent years.

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