GOP drops $1M on Manchin as Justice preps run
https://www.politico.com/news/2023/04/19/manchin-justice-gop-election-00092629
Tag: Joe Manchin
Manchin rails against ‘revenge politics’ on permit plan
“Sen. Joe Manchin on Tuesday railed against what he called “revenge politics,” as liberals in the House and Senate team up with Republicans to oppose his plan to speed permits for natural gas pipelines and other energy projects.
Manchin, a West Virginia Democrat who chairs the Senate Energy Committee, secured a commitment from President Joe Biden and Democratic leaders to include the permitting package in a stopgap government-funding bill in return for his support of a landmark law to curb climate change.
But in the weeks since Biden signed so-called Inflation Reduction Act last month, Democrats and environmental groups have lined up to oppose the permitting plan, calling it bad for the country and the climate. Climate hawks such as Vermont Sen. Bernie Sanders and Massachusetts Sen. Ed Markey, along with dozens of House members, say the permitting plan should be excluded from the must-pass spending bill.
Many Republicans agree. Wyoming Sen. John Barrasso, the top Republican on the Senate energy panel, called the permitting deal a “political payoff” to Manchin, whose vote on the climate bill was crucial to the law’s passage.
Manchin’s actions on the climate — including secret negotiations with Senate Majority Leader Chuck Schumer, D-N.Y. — “engendered a lot of bad blood” among Republicans, Sen. John Cornyn, R-Texas, told reporters. “There’s not a lot of sympathy on our side to provide Sen. Manchin a reward.”
At a news conference Tuesday, Manchin expressed bewilderment at such sentiment, saying he’s “never seen” such an example of “revenge politics,” with Sanders and the “extreme liberal left siding up with Republican leadership” to oppose his plan.
“It’s revenge towards one person — me,” Manchin said.
“I’m hearing that the Republican leadership is upset,” he added. “They’re not going to give a victory to Joe Manchin. Well, Joe Manchin is not looking for a victory.”
While legislative text of his permitting plan has not been made public, Manchin called the bill “a good piece of legislation that is extremely balanced” and does not “bypass any environmental review.″ Instead it would accelerate a timeframe that can take up to 10 years for a major project to win approval.”
The Sinema-Manchin split that shaped Dems’ deal
“After Manchin agreed with Senate Majority Leader Chuck Schumer on the party-line tax, health care and energy bill, the West Virginia Democrat found himself bargaining with fellow moderate Sen. Kyrsten Sinema. Both hard-nosed negotiators, the Arizona Democrat’s business-friendly tax-approach clashed sharply with Manchin’s more progressive positions on taxes.
Manchin sought to target the wealthy and ended up agreeing with Schumer to target the so-called carried interest loophole that allows some people to pay lower tax rates on investment income. He also signed off on a corporate minimum tax package that most Democrats believed Sinema supported.
Ultimately, Sinema took a scalpel to the corporate minimum tax and scuttled any changes to carried interest, which Manchin called particularly “painful.” Triangulating between them through all of it: Schumer, whose job was harmonizing the views of the very public Manchin with an often-silent Sinema.”
The Democratic infighting over Joe Manchin’s “side deal,” explained
“Permitting is the process for getting federal approval for energy projects, including oil and gas pipelines, which often undergo extensive review for their environmental impact. It can be a long and expensive process, and while Republicans and Democrats agree that the experience could be improved, they differ on what those reforms should entail.
Sen. Joe Manchin (D-WV), a chair of the Senate Energy and Natural Resources committee who has deep ties to the coal industry, has long taken issue with the current permitting process, arguing that it’s too convoluted. This summer, he struck a deal with Senate Majority Leader Chuck Schumer: In exchange for Manchin’s backing on the Inflation Reduction Act, Schumer guaranteed a vote on permitting reforms that would streamline approval of fossil fuel and renewable energy projects.”
…
“In a letter sent to both Schumer and House Speaker Nancy Pelosi last week, House lawmakers argue Manchin’s reforms would make it easier to greenlight harmful oil and gas projects, and reduce constituents’ abilities to oppose such endeavors. Additionally, they claim that attaching the policies to a must-pass bill would force lawmakers to choose between “protecting … communities from further pollution or funding the government.””
Schumer, Manchin Strike Deal To Raise Taxes, Cut the Deficit, Spend Billions on Climate Change
“Senate Majority Leader Chuck Schumer (D–N.Y.) has reportedly brokered a deal with Sen. Joe Manchin (D–W.Va.) to pass a slimmed-down version of President Joe Biden’s spending plan—now to be marketed as an attempt to curb inflation.”
…
“The bill will include $370 billion in new spending on climate change initiatives and green energy projects—a linchpin of Biden’s Build Back Better plan through its many, many interactions over the past year—and would dedicate about $300 billion of revenue toward reducing the deficit, which has been Manchin’s top priority.
The bill also reportedly includes a three-year extension of the expanded Affordable Care Act (ACA) subsidies originally passed as a temporary measure during the early days of the COVID-19 pandemic, as well as changes to how federal health insurance programs price prescription drugs. Though pitched as a way to cut costs for households, the extension of those ACA subsidies could actually worsen inflation, as Reason’s Peter Suderman has explained.
The spending and deficit-reduction items will be funded with a series of proposed tax increases. Politico reports that the bill would impose a 15 percent corporate minimum tax, expand the IRS’ enforcement division (a questionable means for generating revenue, it should be noted), and close a commonly used business tax break for carried interest. The tax changes would generate about $739 billion over the next decade, according to The Washington Post.”
…
“For today, at least, Joe Manchin seems to have gotten his way.”
How Manchin used politics to protect his family coal company
“As governor, Joe Manchin supported an unusual detail in a clean energy bill that was moving through the West Virginia Legislature in 2009.
The provision classified waste coal as an alternative energy.
The muddy mix of discarded coal and rocks is one of the most carbon-intensive fuels in America. And Manchin’s family business stood to benefit financially when it was reclassified as something akin to solar, wind and hydropower.
Selling the scrap coal has earned Manchin millions of dollars over three decades, and he has used his political positions to protect the fuel — and a single power plant in West Virginia that burns it — from laws and regulations that also threatened his family business.
It continues today.
Only now Manchin has enormous influence over federal climate policy. He is using his chair role of the energy committee — and role as maverick Democrat – to shape environmental policy across the states.”
…
“By 2006, when Manchin was governor, the plant’s owners went before the West Virginia Public Service Commission and claimed it was on the verge of shutting down.
The commission, then chaired by Jon McKinney, a Manchin appointee, raised the rate that Grant Town could charge for its electricity from $27.25 per megawatt to $34.25. They also gave the plant a way to stay in business longer, by extending its power purchase agreement with FirstEnergy by eight years to 2036.
Those changes still reverberate today. West Virginia has seen some of the highest electricity rate increases in the nation. Its loyalty to coal is one reason for that.
The price of residential power in a dozen other states that share the PJM grid with West Virginia has declined, according to a report released last month from the West Virginia University’s Bureau of Business and Economic Research.
“Over the past 10 years, West Virginia’s residential prices have risen, while PJM’s average price has come down considerably,” the report found.
Between 2010 and 2019, utility bills in West Virginia rose at five times the national average, according to calculations by James Van Nostrand, a West Virginia University professor who spent 22 years as a lawyer representing energy clients in state regulatory proceedings.
Power prices are higher in West Virginia in part because coal is more expensive than natural gas and renewables. In other states, aging coal plants that can’t compete economically are allowed to shut down.”
…
“Manchin’s business interests reflect long-standing ethical questions in Congress, said Shaub, the former government ethics official. Lawmakers have the power to prevent obvious conflicts of interest. But neither party has changed its rule to stop members from making money off their votes in the Capitol, he said.”
Kyrsten Sinema’s opposition to filibuster reform rests on a myth
“on this issue of voting rights. Joe Manchin labored mightily to come up with a compromise bill so that he could entice 10 Republicans to make it bipartisan. He did not get a single one. As President Biden mentioned in his speech [on Tuesday], 16 Republicans currently in the Senate voted for the 2006 extension of the Voting Rights Act. Not one of them supports the John Lewis Act.”
How 14 policies could survive — or die — after Manchin’s ‘no’
“The West Virginia moderate said he can’t back the $1.7 trillion package. But Manchin has supported many of the bill’s individual policies, giving hope for Democratic leaders now plotting to get the centrist senator on board with a far slimmer proposal or spinning off other bills that include some of the package’s well-liked items.”
…
“Extension of the beefed-up Child Tax Credit that Democrats pushed through in March, which many of them considered a landmark legislative achievement since taking control of the White House and Congress.
The huge expansion of the program, which benefits an estimated 61 million children, will expire at the end of the year unless Democrats find some way to keep it alive or revive it after it lapses. The IRS cut its final round of monthly checks for 2021 last week, sending about $16 billion to more than 36 million families.
The demise of the expansion would mean the end of payments for millions of children whose families would no longer qualify. The maximum credit would fall to $2,000 from $3,600, it would revert to a yearly benefit instead of a monthly payment and a work requirement for parents would be reinstated.”
…
“Manchin wanted fewer upper-income households to qualify for the benefit and said the work requirement should be brought back. He also considered the one-year extension a budget gimmick because it was likely to be extended again later.
Many Democrats wanted to make the expansion permanent. But bowing to Manchin’s objection to the price of the overall spending package, they settled on a one-year extension in the House bill.”
White House lights up Manchin after he crushes Biden’s megabill
“Biden left negotiations with Manchin this week thinking the two men could cut a deal next year on his sweeping agenda. Then the West Virginia Democrat bluntly said he is a “no” on the $1.7 trillion in an interview on “Fox News Sunday.”
“If I can’t go home and explain to the people of West Virginia, I can’t vote for it. And I cannot vote to continue with this piece of legislation. I just can’t. I’ve tried everything humanly possible. I can’t get there,” Manchin said. “This is a no on this piece of legislation. I have tried everything I know to do.”
Those comments prompted an immediate war with the White House, who took personal aim at Manchin for what officials saw as a breach of trust. White House press secretary Jen Psaki released an unusually blunt statement saying that Manchin’s comments “are at odds with his discussions this week with the President, with White House staff, and with his own public utterances.”
In announcing his opposition, Manchin raised the same concerns about the bill that he’s had all along: inflation, rising debt and a mismatch between the package’s 10-year funding and its shorter-term programs. But until Sunday, Manchin had never taken a hard line on the legislation. In the past week, he’s spoken directly to Biden several times, with the president and other Democrats furiously lobbying him to support the bill.
With an evenly split Senate, Senate Majority Leader Chuck Schumer needs every Democrat to go along with the legislation, which only requires a simple majority vote. That dynamic gives Manchin enormous leverage over Biden’s agenda, allowing him to single-handedly sink a priority that Democrats have spent much of the year working on.
Manchin’s rollout on Fox News infuriated Democrats Sunday morning. Psaki said that the senator had brought Biden an outline of a bill similar in size and scope that “could lead to a compromise acceptable to all.”
“If his comments on FOX and written statement indicate an end to that effort, they represent a sudden and inexplicable reversal in his position, and a breach of his commitments to the president and the senator’s colleagues in the House and Senate,” Psaki said. “Just as Senator Manchin reversed his position on Build Back Better this morning, we will continue to press him to see if he will reverse his position yet again, to honor his prior commitments and be true to his word.”
And while the centrist senator’s staff informed White House and Democratic aides about his forthcoming blow to Biden’s agenda, some Democrats were steamed that Manchin himself hadn’t called Biden or Schumer.”
…
“now may be an opportunity to revisit a concept of the bill that included fewer programs but was paid for over more years — an option that moderate House Democrats and party leaders such as Speaker Nancy Pelosi had pushed for previously. Centrist New Democrat Coalition Chair Rep. Suzan DelBene (D-Wash.) said in a statement Sunday that including fewer programs in the legislation but for longer durations “could open a potential path forward for this legislation.””
…
“The West Wing saw Manchin’s Sunday comments as a shocking about-face — White House officials believed he had been sending signals that a deal could eventually be struck.”
…
“Manchin’s position is a validation of progressive fears — they believed passing that infrastructure bill was a mistake without an explicit guarantee from all 50 Democratic senators to support the rest of Biden’s agenda. Progressive House Democrats fumed at Sunday’s developments, though the nearly 100-member caucus had not regrouped to find a path forward.
“I wish we would have kept both bills together. That was the plan throughout several months of negotiation,” Bowman said. “I was frustrated then and obviously frustrated now that we decided to decouple those bills, because, as Manchin has shown in the past, we cannot just take his word for something.””
Joe Manchin won’t support a key climate program. Alternatives won’t be enough.
“A key climate policy designed to phase out fossil fuels will likely be cut from Democrats’ upcoming reconciliation package due to opposition from Sen. Joe Manchin (D-WV), who has reportedly refused to back the measure as negotiations over the budget bill continue.
According to the New York Times’s Coral Davenport, who first reported the news on Friday, Manchin, who chairs the Senate Energy and Natural Resources Committee, will not support the sweeping clean electricity program widely seen as the centerpiece of the bill’s climate plan.
The $150 billion program — officially known as the Clean Electricity Performance Program, or CEPP — would reward energy suppliers who switch from fossil fuels like coal and natural gas to clean power sources like solar, wind, and nuclear power, which already make up about 40 percent of the industry, and fine those who do not.
Experts believe the program is the most effective way to slash US carbon emissions significantly enough to prevent the global temperature from rising by 1.5 degrees Celsius, a threshold which would have drastic consequences for the planet if exceeded.”
…
“Manchin’s home state of West Virginia is one of the largest producers of coal in the US, and Manchin himself benefits financially from the coal industry.
Manchin’s spokesperson, Sam Runyon, told the New York Times that Manchin opposed the CEPP because he couldn’t support “using taxpayer dollars to pay private companies to do things they’re already doing.””
…
“Manchin is correct in saying that some companies are indeed changing over to sustainable electricity production; currently, almost 40 percent of electricity generated in the US comes from a clean energy source, either nuclear or renewable. But corporations are ultimately concerned about their bottom line, and the carrot-and-stick approach of the proposed clean electricity program incorporates that reality by incentivizing companies to make the drastic changes necessary to address climate change — and penalizing them if they don’t.
The other reason a clean electricity program could prove key to addressing climate change is that it creates a national standard, as opposed to the patchwork of municipal and state legislation and individual efforts currently in place. Among other impacts, the program would help bring lagging areas up to speed with the ambitious targets set by the Biden administration, which call for 80 percent of the nation’s electricity to come from renewable sources by 2030, and 100 percent by 2035.”