Ag Policy Blog

Keystone, Keystone and More Keystone

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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The Keystone XL pipeline will be the lead legislative priority when Congress returns next week.

Republicans in Congress want to quickly send a bill on Keystone XL to the president's desk as a rapid way to test their new legislative majority against the president's veto pen. That would set up a defining battle over energy and climate policies that divide Congress and the White House. The president seemed to make it pretty clear right before the holidays that he sees little national interest in creating the pipeline.

"There is very little impact, nominal impact, on U.S. gas prices, what the average American consumer cares about, by having this pipeline come through," President Obama said Dec. 19. "And sometimes the way this gets sold is, let's get this oil and it's going to come here and the implication is that's going to lower oil prices here in the U.S. It's not. There's a global oil market. It's very good for Canadian oil companies and it's good for the Canadian oil industry, but it's not going to be a huge benefit to US consumers. It's not even going to be a nominal benefit to US consumers."

The Nebraska Supreme Court continues to generate suspense over how the state court will rule on Keystone. The court must rule on the question of whether Gov. Dave Heineman improperly went around the state's Public Service Commission by signing legislation essentially giving the pipeline route state approval. If the court throws out the siting law, then TransCanada, the parent company for Keystone, must go through the Public Service Commission to get a route permit. Or, the court could back the governor and reject a lower court ruling, which would eliminate a stumbling block for the pipeline.

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The Nebraska Supreme Court issues rulings every Friday. So far, supporters and opponents of the pipeline keep monitoring the court for indications of when the ruling will come down.

Sen. Lisa Murkowski, R-Alaska, takes over as chairwoman of the Senate Committee on Energy and Natural Resources next week. She has already set a Jan. 7 hearing on the Keystone XL pipeline though witnesses have not been announced. Murkowski also has introduced a bill in the Senate to approve the pipeline. The bill would not, however, supersede the Nebraska Supreme Court case or any state permit requirements for the pipeline.

The House is planning to hold a vote on Keystone sometime within the first two weeks after they return Jan. 6. That would effectively translate into a floor vote before Jan. 15.

Three Democrats wrote House Speaker John Boehner earlier this week asking him to "use regular order" for any bill regarding Keystone. Reps Peter DeFazio of Oregon, Frank Pallone of New Jersey and Raul Grijalva of Arizona wrote the letter. The three are ranking members of committees that could oversee some aspect of any pipeline legislation. The three Democrats questioned why Boehner is willing to consider a bill sometime in the next two weeks.

"Given the magnitude of this issue, we urge you not to bypass the committee process and regular order for consideration of this controversial legislation. This past November, 61 new Members of Congress were elected by the American people to represent their interests in the House. These new Members, and in fact all Members of the House, should have the opportunity to consider, debate, and propose their own ideas on this legislation through committee hearings and markups, before it is scheduled for House Floor consideration,” the congressmen wrote.

The congressmen also questioned whether legislation is premature while the Nebraska court continues to mull state siting legislation. The congressmen also noted the decline in oil prices and declining gas prices, which "illustrates changed circumstances."

Along with those concerns, the three congressmen also want members of Congress to debate the effects Keystone could have on carbon pollution, as well as other environmental and safety risks.

As lawmakers move ahead, debate will center heavily on just exactly how many jobs will be created. A study by the State Department projects the pipeline would create nearly 1,950-3,900 construction jobs --- depending on how long it takes to complete the project --- and fewer than 50 permanent jobs. Indirectly, the State Department study cites that spending on the project, $3.3 billion in the U.S., would support approximately 42,100 direct, indirect and induced jobs.

Follow me on Twitter @ChrisClaytonDTN.

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Comments

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Bruce Hanson
1/30/2015 | 8:15 AM CST
Call Warren Buffet and ask him if he is pushing to move the oil in question on HIS Burlington Northern railroad and if he's lobbying against the pipeline. That's why he's friendly with Obama. Strange bedfellows, indeed. Then call Koch brothers and see how they intend to benefit by their recent purchase of Republican Senators and congressmen who pledged support to them for the pipeline. While you are at it, ask them how they managed to hold the Midwest for ransom last winter with astronomical LP prices. Buffet and the Koch brothers are the real environmentalists involved and the environment is their bank accounts and portfolios. I'm sure they would all think the squabbling here is very entertaining.
CRAIG MOORE
1/9/2015 | 8:55 AM CST
Jay, what type of idiot thinks everyone has a monster truck and do you really think we bring in a lot of oil from the Middle East. We don't bring in much oil from the ME, something you would already know if you were as smart as you think you are. And answer the question. HOW MUCH DID YOU DONATE TO THE INFASTRUCTURE FUND. Hear that? Answer that.
Jay Mcginnis
1/6/2015 | 8:58 PM CST
Well Craig I am looking for you to buying enough gasoline for your monster truck to offset what I don't pay. Just think of all the extra tax I have to pay to keep a military presence in the Mideast to bring you oil I don't need!
CRAIG MOORE
1/6/2015 | 2:10 PM CST
Jay, how much did you pay into the infrastructure maintenance fund driving that 27,000 miles or is that another thing your are riding free on? And it is easy paying for all your stuff with all that commodity subsidies the taxpayers are paying for that you get to pocket.
Bruce Neufeldt
1/6/2015 | 1:28 PM CST
The sooner Keystone XL gets built the sooner my rail service improves. Not to mention the thousands of jobs it will create...
Jay Mcginnis
1/6/2015 | 10:33 AM CST
Oh Gee Dick,,, I never thought of all that,, heck I would be better not cutting my carbon footprint and be dependent on energy from good old clean coal and cheap oil! But you know you boyz in the Tea Party kind of forget that you need to kill lots of people (and some of us believe that darker skinned folks in the Mideast are people) for that good old oil, that you have to remove mountain tops for coal and now frack for gas and build pipelines for tar sand oil. Seems like you forgot about the cost of Mideast wars and corporate subsidies for your ancient fossil fuels ???? So I would much rather take my tax deduction that would go to your wars and corporate subsidies,,, sort of taking out the middle man don't you think? Isn't the Party of Tea all about NOT paying taxes and being independent? looks like I beat you and Bonnie to it. Nope, no battery powered backhoes but when the internal combustion engine was introduced in the 1860's I am sure there was a Dick Doriguzzi laughing that that engine would be no more then a parlor toy and horses would never be replaced by it. So be stubborn and keep your dirty fossil fuel while Don and I enjoy our systems that you guys say don't work! Oh by the way, many electric companies are looking at making a tax for solar PV owners to pay for revenue they are losing,,, just another bit of proof that solar is unrealistic???? Whats next, oil filter companies making a tax for lost revenue of electric cars not having oil changes?
Dick Doriguzzi
1/6/2015 | 8:17 AM CST
Jay; you are welcome for the government $ ( Other tax payers money ) assistance in buying your electric car. Also ,What did it cost to install your geothermal heating plant ? (Please compare this to a normal heating / cooling system.) Did you dig in the heat exchange system with a solar powered back-hoe ? Was the compressor in your geothermal system manufactured with renewable energy ? Are you totally off the grid ?, If you are i applaud you, If you are not, or received any government $ (other peoples money) I find it difficult to swallow your story.
Bonnie Dukowitz
1/6/2015 | 6:55 AM CST
Some need to be a bit more realistic. I have read, all of the known lead reserves in the world is only enough to provide 15% of this so-called environmentally friendly mentality.(Not from Fox News) Whoops, there goes another mountain in Africa in order to stop the Keystone type projects. I have nothing against batteries, solar, geothermal or renewables. However, I would prefer to leave the Rockies as they are, as much as possible while living in this world as we are.
Don Thompson
1/5/2015 | 7:07 PM CST
Jay, I am with you on the solar. My new array is pumping it out and I am looking for another installation next summer. Also, hard to compare healthcare when you do not have the policy facts to compare. Lots of folks had junk coverage but now are guaranteed coverage that was not available before ACA. I know you appreciate that. Stay warm with that geothermal. Amazing how well these new systems work in extreme cold with no direct carbon fuels!!? What a country!!
STEVE JOHNSON
1/5/2015 | 5:09 PM CST
Kinda funny I have to amend my post from earlier. I got a notice from Anthem today, and my premium will increase an additional 17% this year. Thanks Obama.
Raymond Simpkins
1/5/2015 | 9:32 AM CST
Jay I must say you are an IDIOT. Come hook your electric car onto my stock trailer and see how far you get.By the way thats how we get your food to market.What is your farm? Two chickens a dog and a cat! If you would look back two years before Obamacare you and my insurance premium was lower than it is now with subsides! You can HOPE in one hand and CRAP in the other it all smells the same.Oh and thanks Jay for help paying my and everyone elses healthcare.
Jay Mcginnis
1/5/2015 | 8:59 AM CST
Hardly LALA land Bonnie, I am living it and enjoying it! My farm and outside biz have never done so well under GW and the party of dirty air and corporate lobbyists. Only ones I hear complaining are the Rush and Hannity crowd. I think you are hugging the wrong trees.
STEVE JOHNSON
1/5/2015 | 8:59 AM CST
My health insurance premium is 45 percent higher......
Bonnie Dukowitz
1/4/2015 | 5:12 PM CST
All made in LaLa Land with recycled cabbage leaves
Jay Mcginnis
1/4/2015 | 12:36 PM CST
Hey Bonnie,,, I don't need your oil in my electric car that now has 27,000 fossil fee miles,,, I did have to put air in the tires during that time and plug into my solar made electricity. Enjoying a warm house with geothermal heat powered again by solar made electricity. Yes we can!!!! Hope and change is working much better then dirty air, dirty water and endless wars and torture!!!! Oh and my health insurance premiums are much lower!
Bonnie Dukowitz
1/4/2015 | 5:12 AM CST
Keep my oil and electric coming, but put the pipelines and high line poles somewhere else!
melvin meister
1/3/2015 | 11:32 PM CST
shut down the xl pipeline. the ethanol producers are at 985000 barrels per day and I think everyone needs to give them some credit ,This is the USA and not canada or saudi arabia.Go ethanol;
Quentin Burkholder
1/3/2015 | 8:14 AM CST
If the money was spent on another project, wouldn't it create an equivalent amount of jobs? What difference does the estimated job count make?
Jay Mcginnis
1/3/2015 | 7:45 AM CST
First the oil lobbyists are super funding the GOP on this issue but also Ted Cruz is of Canadian citizenship and is more interested in helping Canada then the US, he is un-American!