Tag: keystone pipeline

Signs of Hope on Trade Policy?

In two earlier posts on this blog, I described how President Trump said he had required the use of American steel in the Keystone XL and Dakota Access pipelines, while the reality seemed to be only an interagency consultation that would “develop a plan” on the issue and had some important qualifiers (only “to the maximum extent possible and to the extent permitted by law”).  Now Politico is reporting that any such requirement will not apply to Keystone:

The Keystone XL Pipeline will not be subject to President Donald Trump’s executive order requiring infrastructure projects to be built with American steel, a White House spokeswoman said today.

Trump signed the order calling for the Commerce Department to develop a plan for U.S. steel to be used in “all new pipelines, as well as retrofitted, repaired or expanded pipelines” inside the U.S. projects “to the maximum extent possible.”

By the White House’s judgment, that description would not include Keystone XL, which developer TransCanada first proposed in 2008.

“The Keystone XL Pipeline is currently in the process of being constructed, so it does not count as a new, retrofitted, repaired or expanded pipeline,” the White House spokeswoman said.

Assuming this report holds up (I’d like to hear it from additional White House sources), it is a small victory for free trade.  There is still a great deal of uncertainty on the direction of U.S. trade policy right now, but at least for the moment I have a bit of hope.  Cooler heads seem to have prevailed on this one issue.  Perhaps they will have similar success on other issues.

Topics:

Keystone XL Approved at Last, Now Let’s Move On

Nearly eight-and-a-half years after its initial application, the Keystone XL pipeline project has been given the green light (“subject to a renegotiation of terms by us”) by an executive order signed by President Trump today. Finally.

Whether the impetus and economics is still there to build it (with oil prices in the mid-$50 barrel range) remains to be seen. But I’d imagine so, if nothing more than as an infrastructural investment in the future.

But from the federal government standpoint, this shouldn’t matter. If private monies want to take the risk, the federal government should not stand in the way. After all, the Keystone XL pipeline passed each and every environmental impact/safety assessment along the way. Even the climate impact, much touted and hyped by the previous Administration and its supporters, was shown, dispassionately, to be inconsequential—a mere 1/100th of a degree of warming by century’s end (and that’s being generous).

President Obama rejected the pipeline for no other reason than for appearances—to make it seem to the rest of the world that the U.S. was serious about climate change. Apparently, he didn’t see the irony.

His successor is resurrecting the pipeline for the same reason—appearances. In this case, the appearance of creating jobs. But as I exasperatingly explained in these pages some two years ago (“Keystone XL Pipeline: Enough Already!”):

This project is so small in the grand scheme of anything it boggles the mind anyone outside of those directly involved in building and operating it gives it a second thought…

At this point, the Keystone XL is just another construction project. In fact, that is all it ever was. If it didn’t require crossing the border with Canada (which required a “presidential permit”), we never would have heard a peep about it.

With the pipeline’s apparent revival, now at least, all the government resources spent examining and re-examining and fretting and re-fretting, etc. over the project will have amounted to something—even though that something should have been decided (and approved) some four or five years ago.

What executive powers taketh away, executive powers giveth. I’m sure this won’t be the last of Obama’s symbolic actions on climate change that President Trump overturns. Each will better clear the way for us to move on to more important matters.

Update: With the release of the actual text of the Executive Order (made available several hours after Trump signed it), it’s not so much an “approval” of the Keystone XL pipeline as it is an invitation for TransCanada to resubmit its application with the promise that it will be decided upon within 60 days with, wink, wink, a more favorable outcome. So, it seems though this won’t be the last we’ve heard of it, this battle is moving closer to its completion.

Republicans Should Offer Their Own Climate Change Amendment to Keystone XL Measure

As we predicted here, the Senate’s Keystone XL Pipeline legislation is going to be pelted with global warming-related amendments from Democrats as the price for a veto-proof bill. Most interesting is one by Bernie Sanders (S-VT) which asks the Senate to vote on whether climate change is real and made “worse” by dreaded carbon dioxide emissions.

Of course the first part is true—“climate” and “change” go hand-in-hand.  But the fact is that the warming that is occurring is happening at a rate far below what was forecast, and hasn’t been happening at all for 18+ years now.  So, perhaps some Republican will propose an amendment that in fact approaches the truth in this nuanced issue.

Perhaps, “Climate change is real and it is demonstrable that the climate models used by the United Nations’ Intergovernmental Panel on Climate Change to predict the future are on the verge of failure.”

Final Hurdle to Keystone XL Pipeline Decision Lifted

Today, the Nebraska Supreme Court overturned a lower court ruling and held that the power to approve a route for the Keystone XL pipeline through the state lay with the governor. Nebraska Gov. Dave Heineman had previously approved the pipeline’s route, but his authority was challenged by a group of landowners (pipeline opponents) who claimed the authoritative power was held by the state’s Public Service Commission rather than the governor.

President Obama repeatedly referred to this pending decision as the reason why he could not made a final decision on whether to approve or deny the pipeline. As recently as earlier this week, when indicating the president would veto a measure to approve the pipeline that is currently making its way through Congress, Obama press secretary Josh Earnest referred to a  “well-established process in place” for making such decisions. The Nebraska case was the last remaining part of that process, as the State Department has already given the pipeline a clean bill of environmental health.

As for the president himself, in delivering his Climate Action Plan back in the summer of 2013, he said:

I do want to be clear: Allowing the Keystone pipeline to be built requires a finding that doing so would be in our nation’s interest. And our national interest will be served only if this project does not significantly exacerbate the problem of carbon pollution. The net effects of the pipeline’s impact on our climate will be absolutely critical to determining whether this project is allowed to go forward. It’s relevant.

Odd that he should say that in June of 2013 when a month earlier, in May of 2013, I testified before Congress as to that climate math of the Keystone XL pipeline and found its effect on our climate was inconsequential, resulting in less than 1/100th of a degree of warming by the end of this century. Case closed.

Before the Nebraska decision, Congress was preparing to send legislation to the president’s desk that would wrest the decision from the State Department. But now that the Nebraska court decision has been handed down, Obama can steal the thunder for himself and simply grant approval to the pipeline.

And, who knows, with today’s oil economics, perhaps the pipeline will not be built, and the president can have his cake and eat it too.

Keystone XL Pipeline Given High Marks in State Department’s Final Environmental Impact Statement

Recall this passage from President Obama’s Georgetown speech last summer announcing his Climate Action Plan:

Now, I know there’s been, for example, a lot of controversy surrounding the proposal to build a pipeline, the Keystone pipeline, that would carry oil from Canadian tar sands down to refineries in the Gulf. And the State Department is going through the final stages of evaluating the proposal. That’s how it’s always been done. But I do want to be clear:  Allowing the Keystone pipeline to be built requires a finding that doing so would be in our nation’s interest. And our national interest will be served only if this project does not significantly exacerbate the problem of carbon pollution. The net effects of the pipeline’s impact on our climate will be absolutely critical to determining whether this project is allowed to go forward. It’s relevant.

This basically should have green-lighted the pipeline, because, as I pointed out in congressional testimony last year, regardless of how you figure the carbon dioxide emissions from the pipeline’s oil, the resulting climate impact will be so small as to assuredly put the president’s mind at ease.

The just-released Final Environmental Impact Statement from the State Department concluded about the same thing as the Draft Environmental Impacts Statement from the State Department, which is in complete agreement with my findings regarding carbon dioxide emissions from the pipeline’s oil and climate change. The net global warming impact from the pipeline oil amounts to somewhat less than 1/100th of a degree Celsius over the next 100 years.

So if the president wants to kill the Keystone XL pipeline (clearly he does, because he has had ample opportunity to approve it), he’ll have to find a reason to do so other than a climate one. Unfortunately for him, trying to kill it for other reasons would be equally ill-founded.

Keystone XL Pipeline: “No Material Impact” on U.S. Carbon Dioxide Emissions

President Obama has a ticklish situation on his hands with the Keystone XL pipeline—one long on symbolism but short on practical impacts.

He took a few minutes out of his June 25th speech unveiling his Climate Action Plan to specifically address the pipeline issue:

Now, I know there’s been, for example, a lot of controversy surrounding the proposal to build a pipeline, the Keystone pipeline, that would carry oil from Canadian tar sands down to refineries in the Gulf. And the State Department is going through the final stages of evaluating the proposal. That’s how it’s always been done. But I do want to be clear:  Allowing the Keystone pipeline to be built requires a finding that doing so would be in our nation’s interest. And our national interest will be served only if this project does not significantly exacerbate the problem of carbon pollution. The net effects of the pipeline’s impact on our climate will be absolutely critical to determining whether this project is allowed to go forward. It’s relevant.

The president is balancing “our national interest” in the pipeline—which surely includes factors (or, at least, the perception of factors) like growing the economy, adding jobs, and increasing our energy security—with the pipeline’s (perceived) impacts on the climate via the carbon dioxide emissions (which he oddly terms “carbon pollution”) associated with the oil it will carry.

When it comes to growing the economy, adding jobs, and/or increasing our energy security, the estimates of the impact of the Keystone XL pipeline are all over the place—but all positive. The more level-headed analyses generally indicate the gains will probably be rather small in the overall sense.

When it comes to affecting the climate, again, the estimates are all over the place, and largely depend on assumptions as to how much leverage the Keystone XL pipeline will have on opening up the Canadian tar sands to further development. Folks who claim that the pipeline’s approval would mean “game over” for the climate assume that the pipeline is the key to opening up the 1.7+ trillion barrels of oil that are estimated to be contained in the Canadian tar sands formation. More sober analyses argue that market demands are such that the oil will be brought to market with or without the Keystone XL pipeline and, as such, the pipeline itself will have virtually no impact on carbon dioxide emissions and, by extension, climate change.

Climate Impact of the Keystone XL Pipeline

After a couple of months during which larger issues were grabbing headlines, the Keystone XL pipeline is back in the news again.

Recall that in the fall of 2011, Congress attempted to force the Obama Administration to come to some sort of a decision on the pipeline—a project that would deliver oil from Canada’s Alberta tar sands to a pipeline junction in Steel City, Nebraska and then ultimately on to refineries in Illinois and along the Gulf Coast. President Obama rejected the pipeline application in January 2012, citing the Congressional deadline as being too tight to allow for a thorough assessment. TransCanada Corporation, the pipeline’s operator, last September proposed a new route through Nebraska which avoided the environmentally sensitive Sand Hills region which was one the largest local environmental concerns of the originally proposed pipeline route.

The rumors were that this new proposed route, and the promise of new jobs and economic activity, were now tipping the administration in favor of the giving the go ahead to the pipeline.

Last Wednesday, the New York Post reported that EPA head Lisa Jackson (a vocal opponent of the pipeline) was stepping down in a huff because she was convinced that Obama was soon going to green-light the project.

Last Friday, Nebraska’s Department of Environmental Quality released its study of the new route and proclaimed that it could have “minimal environmental impacts in Nebraska” if properly managed and that construction of the pipeline would result in “$418.1 million in economic benefits and would support up to 4,560 new or existing jobs in the state,” (though some jobs would be temporary) and annual local property tax revenues of between “11 million and 13 million” for the first year of evaluation. The U.S. State Department is conducting its own report because the pipeline will cross the U.S./Canada border. That report is expected any day now.

Yesterday, a group of protestors stormed the TransCanada offices in Houston, Tx, chaining their ankles, and for added measure, apparently supergluing their hands together. A statement from the group said that they were “representatives of a desperate generation who have been forced into this position by the reckless and immoral behavior of fossil fuel corporations such as Transcanada.” Bill McKibben’s 350.org is organizing a much larger-scale protest for Washington, D.C., and the White House next month.

The outcry is not really about local environmental concerns, but as NASA’s James Hansen (who himself was arrested outside the White House back in 2011 protesting the pipeline) put it, if the pipeline is built it will be “game over” for the climate.

With all this outcry, just how bad for the climate do you think the pipeline (or rather it contents) will be?