11/24/2021 – Last Friday, the “Build Back Better act” passed the House of Representatives in the US Congress. The majority of MPs gave their approval for a new social and climate package that includes 1.75 trillion US dollars in investments. 555 billion of this should flow into the energy transition and climate protection, such as the expansion of renewable energies and the promotion of electric cars. The approval came along the party line – with the exception of one Democrat who voted against. In the end, the result in the democratically dominated House of Representatives was 220 to 213.
Now the social and climate package has to pass the second chamber in the US Congress, the Senate. And there the majority conditions are much more difficult. Democrats and Republicans each have 50 seats, so Vice President Kamala Harris can give the casting vote under US law. But just like in the House of Representatives, there were critics on the part of the Democrats from the beginning of the billion dollar investment and infrastructure programs that Joe Biden had already promised during the election campaign.
Out of a total of 3.5 trillion US dollars, 1.7 trillion should flow into climate protection measures by 2030. Now it should only be 555 billion. After all, Biden had previously launched an infrastructure package worth one trillion US dollars, which has already been approved by both chambers of the US Congress and a significant part of which will benefit climate protection, such as the expansion of local and long-distance rail transport and electric charging stations.
Not just a question of financing
Critics from the ranks of the Democrats complained above all about the supposedly high costs and the lack of funding. Joe Biden’s team presented plans for counter-financing, which included tax increases for corporations and top earners and the consistent collection of due duties. From the ranks of the critics, the Democratic Senator Joe Manchin from West Virginia stands out, for whom the rejection of higher investments in climate protection is probably not just a question of funding.
The coal industry is still an important industry in the state in the eastern United States. For decades, mountain tops were blown away in the Appalachian Mountains in order to mine coal. Analyzes show that the overburden from the mines poisoned watercourses in the valleys with heavy metals such as mercury and arsenic, sulfates and other chemicals. Even though the coal industry has suffered cuts in recent years, there are still ten coal-fired power plants in operation in West Virginia. In 2020, 88 percent of net electricity generation came from coal.
And if Joe Manchin has it, it should stay that way for longer. In doing so, he will not only keep an eye on his potential voters. Manchin’s family runs Enersystems, a company that operates primarily in the West Virginia’s coal industry. As Politico reports, the coal-fired power station Grant Town Power Plant is currently fighting for survival and is applying for the supply of electricity for a high-performance data processing center. The power plant is supplied with coal from Enersystems. A promotion and expansion of renewable energies envisaged by Biden’s team could jeopardize the continued existence of the Grant Town Power Plant and other coal-fired power plants in West Virginia.
Considerable enrichment
Joe Manchin stated repeatedly that he was not directly involved in the business of Enersystems and that it would not influence his work as a politician. But Politico relies on official financial information that Manchin has received five million US dollars from Enersystems in the past ten years.
In addition, the son of Manchins maintains a fund for his father which, among other things, has invested considerable funds in Enersystems. Manchin’s stake in the company is worth five million US dollars. The annual profits from this make up 35 percent of Manchin’s annual net income. In 2020 alone, he received a dividend of almost $ 500,000 from this investment.
In addition to coal, Enersystems is also increasingly active in the oil and gas business. In February 2021, Manchin and other Senate Democrats blocked a ban on fracking for the production of oil and natural gas. The introduction of a nationwide minimum wage of US $ 15 also failed because of Manchin. West Virginia’s gross domestic product per capita is the second lowest of any US state.
With the trillions of investments, US President Biden promises to build sustainable industries. West Virginia could also benefit from this. But for Joe Manchin, the primary concern seems to be the preservation of fossil fuel industries, from which he and his family benefit above all. A vote in the US Senate is expected before Christmas. If, however, significant changes are made in the committees of the Senate, the Build Back Better act must again be voted on in the House of Representatives. mf
– .
