Keystone XL pipeline: a jobs coup for Republicans in tax deal?
A congressional deal to preserve a payroll tax cut, approved by the Senate Saturday, contains a provision designed to force President Obama's hand on the controversial Keystone XL oil pipeline.
A congressional deal to preserve a payroll tax cut for working Americans, approved by the US Senate Saturday, also contains a provision designed to force President Obama's hand on the controversial Keystone XL oil pipeline.Skip to next paragraph
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Republicans who pushed for the provision say the pipeline would be a slam-dunk win for a US economy that desperately needs jobs.
It now appears that when a bill lands on Mr. Obama's desk, with tax cuts that the president endorses as his own way to boost the economy, it will also include a call for him to decide within 60 days whether the Keystone pipeline for Canadian oil should be built.
Senate Republicans insisted the pipeline provision be included in the tax bill. The measure still needs a vote of approval in the Republican-controlled House of Representatives.
The pipeline, which would create jobs but angers environmentalists, has become a political flashpoint in recent months.
In November, Obama announced his intent to delay a decision until after the 2012 election, thus averting a difficult political dilemma.
Approving the plans of the Canadian firm TransCanada would have run afoul of environmentalists worried about threats to the massive Ogallala aquifer, which the pipeline would run past. Even Republicans in Nebraska have voiced opposition to the planned path of the project for that reason.
But denying support would have opened Obama to new jabs from critics who say he's not doing enough about the nation's most urgent priority, job creation. Even his delay, however, prompted that reaction.
Where Obama framed his choice as taking time "to ensure that all questions are properly addressed and all the potential impacts are properly understood,” Republican presidential candidate Newt Gingrich called any reluctance about the project "utterly irrational."
"This pipeline is one that would have brought at least 20,000 jobs, at least $6.5 billion worth of economic activity," she said. "His entire calculus was based upon his reelection effort. Because quite frankly, the radical environmentalists said to President Obama, you pass Keystone, we're not going to do your volunteer door-to-door work."
Former House Speaker Gingrich said a delay could mean that jobs and economic activity permanently flow elsewhere.
"The Canadian prime minister has already said to the American president, if you don't want to build this pipeline to bring – create 20,000 American jobs and bring oil through the United States to the largest refinery complex in the world, Houston, I want to put it straight west in Canada to Vancouver and ship the oil direct to China," Gingrich said at the debate. "You'll lose the jobs, you'll lose the throughput, you'll lose 30 or 40 years of work in Houston."