Exxon Mobil has been lobbying against parts of Democrats’ big social and climate spending bill

Any overhaul will require support from Manchin, whose home state of West Virginia is a large producer of fossil fuels such as coal, natural gas and oil. The state is home to part of the Marcellus Shale, a geological formation that also serves as one of the biggest natural gas fields in North America. Exxon Mobil oil and gas fracking subsidiary XTO Energy has operations in West Virginia.

Since the 2012 election cycle, Manchin has received just over $12,000 from the Exxon Mobil political action committee, according to data from the nonpartisan Center for Responsive Politics. Manchin is the chair of the Senate’s energy and natural resources committee. A senior Exxon lobbyist was caught on camera by the UK’s Channel 4, saying that Manchin was one of his top targets. The lobbyist called Manchin the “Kingmaker” and said that he spoke to the senator’s office on a weekly basis.

After publication of this story, a Manchin spokeswoman told CNBC that the Exxon lobbyist “greatly exaggerated” his influence with Manchin’s team. EE News reports that the lobbyist is no longer with the company.

“Throughout his entire public service career, Senator Manchin and those who work for him have always had an open door policy and a willingness to learn from those with varying and diverse opinions,” Manchin’s spokeswoman told CNBC in an email on Wednesday. “But recently an Exxon employee greatly exaggerated his relationship and influence with Senator Manchin’s staff in an attempt to advance his own career only to be misled by an activist organization with an agenda of their own. To suggest that Senator Manchin is beholden to anyone except West Virginians is categorically false.”

Exxon Mobil has spent over $2.7 million on lobbying so far this year, according to CRP data. Michael Solon, one of the Exxon lobbyists, was paid $10,000 for work done in the second quarter that specifically focused on “unspecified reconciliation legislation related to corporate and international taxes,” according to the disclosure report.

Before he was a lobbyist, Solon worked as a policy director for Senate Minority Leader Mitch McConnell, R-Ky. 

A spokesperson for Exxon did not return a request for comment.

Democrats in the House and the Senate are trying to craft the framework of a bill that could win support from centrists and progressives alike in both chambers. While a final bill will likely look different, the policies approved by House committees this month as Democrats put together a larger proposal offer clues into what the plan could contain. Democratic leaders are aiming to pass their investment in the social safety net and climate policy in the coming weeks.

Other companies with links to the oil and gas industry have also been actively taking aim at the reconciliation tax proposals through their lobbyists. Gas giant Valero paid Cornerstone Government Affairs less than $5,000 in the second quarter to engage with House and Senate lawmakers on the “corporate tax provisions of the Build Back Better budget reconciliation bill,” according to the lobbying disclosure report.

The International Association of Drilling Contractors, a nonprofit trade association, spent around the same amount for lobbying lawmakers and Biden administration officials on “oil and gas policies in reconciliation,” among other policies, according to their second quarter report. The group is “dedicated to enhancing the interests of the oil-and-gas and geothermal drilling and completion industry worldwide,” according to their LinkedIn page.

There are other Democratic proposals linked to fighting climate change that could be of concern for oil and gas industry players.

As part of its markup, the House Natural Resources Committee proposed increased fossil fuel fees and royalties for extraction on public lands, among other plans that would affect the oil industry. The panel has also pushed to repeal the oil and gas leasing program in the Arctic National Wildlife Refuge set up as part of the 2017 Republican tax law.

The House Energy and Commerce Committee also advanced a fee on methane emissions, a product of oil and gas operations, among other energy-related policies.

Democrats are also split over whether to include a proposed carbon tax in the legislation. The provision, which could run afoul of Biden’s pledge not to raise taxes on households that make less than $400,000, aims to reduce fossil-fuel emissions.

Article source: https://www.cnbc.com/2021/09/29/exxon-mobil-has-been-lobbying-against-parts-of-biden-reconciliation-bill.html