Granholm gives support for Mountain Valley Pipeline at FERC

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Energy Secretary Jennifer Granholm expressed support for the Mountain Valley Pipeline project at the Federal Energy Regulatory Commission in an April 21 letter, even though the fate of the 304-mile, 2 Bcf/d pipeline is largely in the hands of other agencies and an appeals court.

 


 

Energy Secretary Jennifer Granholm expressed support for the Mountain Valley Pipeline project at the Federal Energy Regulatory Commission in an April 21 letter, even though the fate of the 304-mile, 2 Bcf/d pipeline is largely in the hands of other agencies and an appeals court. Granholm recognized that FERC had completed its regulatory authorizations for the MVP project, which is designed to transport Appalachian gas supplies to Southeast markets. “I request that if there is any further commission-related action on this project, it proceeds expeditiously,” she wrote in a letter to the commission.

The long-delayed completion of the MVP project is tied up by the recent rejection of water permits in West Virginia by the US Court of Appeals for the Fourth Circuit, while a renewed authorization for a 3.5-mile stretch of the pipeline to cross the Jefferson National Forest in West Virginia and Virginia gained a supplemental environmental impact statement April 13. The positive development for MVP on the US Forest Service’s plan to allow the pipeline to cross the national forest followed the April 3 rejection by the court of MVP’s water quality certificate issued by the West Virginia Department of Environmental Protection.

“While the department takes no position regarding the outstanding agency actions required under federal or state law related to the construction of the MVP project, nor on any pending litigation, we submit the view that the MVP project will enhance the nation’s critical infrastructure for energy and national security,” Granholm said in the letter to FERC.

“We appreciate the commission’s prompt actions to fulfill its regulatory responsibilities regarding natural gas infrastructure
under the Natural Gas Act, and the inter-agency coordination it provides as the lead federal agency for the project,” Granholm said.

Natural gas and infrastructure such as MVP to support its delivery and use “can play an important role as part of the clean energy transition, particularly with broad advances in and deployment of carbon capture technology facilitated by the Bipartisan Infrastructure Law and Inflation Reduction Act,” she added. “We look forward to continuing to work with FERC to ensure consumers
have access to reliable, cost-effective, and clean energy,” Granholm concluded.

There is no indication in Granholm’s letter of what prompted the expression of support for such a large and controversial pipeline project, which has been a key focus of Sen. Joe Manchin (D-W.Va.), chairman of the Senate Energy and Natural Resources Committee. Manchin has sought legislative efforts in Congress to aid the completion of the MVP project, which has had multiple agency approvals vacated by the Fourth Circuit.

The Sierra Club issued a statement April 24 expressing concern about Granholm showing Biden administration support for the pipeline while consulting firm Arbo said the letter indicates the Biden administration will likely issue remaining federal permits needed by MVP.

Furthermore, because Granholm said the pipeline would enhance critical infrastructure and national security, courts generally do not like to intrude on national security matters, said Gary Kruse, managing director of research at Arbo. “This may make the Fourth Circuit more amenable to upholding the remaining federal permits that will undoubtedly be appealed,” Kruse said when asked about the Granholm letter.

MVP spokesperson Natalie Cox of majority owner Equitrans Midstream said on April 24 that the company remains committed to working with federal and state regulators to secure all needed permits and complete construction of the pipeline.

“We are gratified that the US Department of Energy and Secretary Granholm have gone on the record to confirm what we believe and have been saying – Mountain Valley Pipeline is a critical infrastructure project that is essential for our nation’s energy security, consumer affordability, and ability to effectively transition to a lower-carbon future,” Cox said in a statement.

The project, providing an additional outlet for Appalachian Basin gas, is partly built but has faced lengthy delays after multiple adverse court rulings. The developers have hoped to regain federal authorizations this spring in order to resume construction this summer, though the water permit rejection in early April makes that seem unlikely.

In addition, a coalition of environmental groups petitioned the Fourth Circuit to strike down the new Endangered Species Act biological opinion for the project, reissued late February by the US Fish and Wildlife Service after prior court setbacks. The new biological opinion found the project would not jeopardize the continued existence of a handful of vulnerable species, including
bats, fish and a rare flowering plant.

The groups contend FWS neglected critical public input on key deficiencies in its analysis in a rush to deliver the opinion on the developer’s timeline.

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