LegiStorm

Summary:

TransCanada's proposed Keystone XL Pipeline would transport oil sands crude from Canada and shale oil produced in North Dakota and Montana to a market hub in Nebraska for further delivery to Gulf Coast refineries. The pipeline would consist of 875 miles of 36-inch pipe with the capacity to transport 830,000 barrels per day. Because it would cross the Canadian-U.S. border, Keystone XL requires a Presidential Permit from the State Department based on a determination that the pipeline would "serve the national interest." To make its national interest determination (NID), the department considers potential effects on energy security; environmental and cultural resources; the economy; foreign policy, and other factors. Effects on environmental and cultural resources are determined by preparing an Environmental Impact Statement (EIS) pursuant to the National Environmental Policy Act (NEPA). The NID process also provides for public comment and requires the State Department to consult with specific federal agencies. TransCanada originally applied for a Presidential Permit for the Keystone XL Pipeline in 2008. Since then various issues have affected the completion of both the NEPA and NID processes for the project. In particular, during the NID process for the 2008 application, concerns over environmental impacts in the Sand Hills of Nebraska led the state to enact new requirements that would change the pipeline route. Facing a 60-day decision deadline imposed by Congress, the State Department denied the 2008 permit application on the grounds that it lacked information about the new Nebraska route. In May 2012, TransCanada submitted a new application with a modified route through Nebraska, thus beginning a new NEPA and NID process. With the release of the final EIS for the new pipeline route in January 2014, the State Department began the current NID process. Public comment on the project, allowed under the Executive Order, ended on March 2014. Federal agency comment on the project was interrupted by state court action in Nebraska, but this litigation was resolved. The department subsequently told federal agencies to provide their input by February 2, 2015. The State Department has not committed to a deadline for issuing its final NID or making a Presidential Permit decision. Development of Keystone XL has been controversial. Proponents base their arguments primarily on increasing the diversity of the U.S. petroleum supply and economic benefits, especially jobs. Pipeline opposition stems in part from concern regarding the greenhouse gas emissions from the development of Canadian oil sands, continued U.S. dependency on fossil fuels, and the risk of a potential release of heavy crude. There is also debate about how much Keystone XL crude oil, or petroleum products refined from it, would be exported overseas. Relations between the U.S. and Canadian governments have also been an issue. With the fate of Keystone XL uncertain, Canadian oil producers have pursued other shipment options, including other pipelines and rail. In light of what some consider excessive delays in the State Department's permit review, Congress has sought other means to support development of the pipeline. In the 114th Congress, the most significant legislative proposal has been the Keystone XL Pipeline Approval Act (S. 1), which would have directly approved Keystone XL and put an end to any further review under federal environmental statutes. On January 29, 2015, the Senate passed S. 1 by a vote of 62 to 36. On February 11, the House passed S. 1 by a vote of 270 to 152. The bill was sent to President Obama on February 24th and vetoed the same day. The Senate attempted to override the President's veto on March 4; however; the override measure failed by a vote of 62 to 37. No further action on S. 1 was taken in the House.