Senate Republicans push bill to speed up Keystone pipeline decision

Senate Republicans are floating legislation to speed up federal action on the proposed Keystone XL oil sands pipeline, a controversial project that the White House doesn’t currently plan to make a decision on until after the 2012 election.

Six senators including Minority Leader Mitch McConnell (R-Ky.) have crafted a plan that requires a State Department permit for the Alberta-to-Texas pipeline within 60 days unless the president publicly determines that it is not in the national interest, according to a summary.

{mosads}The Senate bill to be introduced Wednesday is sponsored by GOP Sens. Dick Lugar (Ind.), John Hoeven (N.D.), David Vitter (La.), Lisa Murkowski (Alaska) and Mike Johanns (Neb.).

It comes after the State Department recently delayed a final decision until 2013 at the earliest by requiring analysis of revised routes that would move the pipeline away from the ecologically sensitive Sand Hills region of Nebraska.

The extended State analysis allows the Obama administration to delay a politically explosive decision on the project that environmental groups bitterly oppose but has backing from business groups and a number of unions.

But the delay announced earlier this month angered pipeline advocates who say the decision should occur faster, especially in light of a mid-November agreement between pipeline developer TransCanada Corp. and Nebraska politicians who had opposed an earlier route.

“Over time, strengthening U.S.-Canada oil sands energy cooperation can create hundreds of thousands of U.S. jobs. Trade with Canada will accelerate America’s independence from overseas oil and will maximize benefits to complement increased U.S. domestic oil production, usage of more alternative fuels, and vehicle innovation to save fuel and dollars at the gas pump,” according to a one-page summary obtained by The Hill that describes and promotes the Senate bill.

Lugar is the author and lead sponsor of the bill. He’s the top Republican on the Senate Foreign Relations Committee, which has jurisdiction over the State Department.

Legislation to force the Obama administration’s hand on Keystone faces
long odds. But the new bill could be a rallying point for GOP critics of
President Obama who allege his energy policies are harming
job-creation.

The Senate bill “requires the permit for Keystone XL to contain strong and specific environmental protections and protect states’ rights,” and also “requires the Federal permit to recognize an alternative route approved by Nebraska, protecting their ability to shift the route of the pipeline to avoid the Sand Hills while not holding up construction elsewhere,” the summary states.

Proponents say it’s time to end the multi-year State Department review of the pipeline that would carry crude from Alberta’s oil sands projects to Gulf Coast refineries.

But critics say the State Department review process has been flawed and biased towards TransCanada. The department’s inspector general is reviewing the process.

Environmental groups strongly oppose the $7 billion pipeline due to greenhouse gas emissions and forest damage from the energy-intensive oil sands projects, potential spills along the route and other issues.

The House Energy and Commerce Committee is holding a hearing on the pipeline Dec. 2.

New House legislation could be in the offing. Rep. Lee Terry (R-Neb.) this month floated the prospect of new legislation that would speed up State’s timeline.

The
House already passed a GOP-led bill — with 47 Democratic votes — in
July that would have required a decision on whether to permit the
pipeline by Nov. 1 of this year, but it didn’t advance in the Senate.

—This post was updated at 6:00 p.m.