In 2008, Canadian pipeline company TransCanada filed an application
with the U.S. Department of State to build the Keystone XL
pipeline, which would transport crude oil from the oil sands region
of Alberta, Canada, to refineries on the U.S. Gulf Coast. Keystone
XL would ultimately have the capacity to transport 830,000 barrels
per day, delivering crude oil to the market hub at Cushing, OK, and
further to points in Texas. TransCanada plans to build a pipeline
spur so that oil from the Bakken formation in Montana and North
Dakota can also be carried on Keystone XL. As a facility connecting
the United States with a foreign country, the pipeline requires a
Presidential Permit from the State Department. In evaluating such a
permit application, the department must determine whether it is in
the "national interest," considering the project's potential
effects on the environment, economy, energy security, foreign
policy, and other factors. Environmental impacts are considered
pursuant to the National Environmental Policy Act, and documented
by the State Department in an Environmental Impact Statement (EIS).
The final EIS was released for the Keystone XL pipeline permit
application in August 2011, after which a 90-day public review
period began to make the national interest determination. During
that time the State Department determined that more information was
needed to consider an alternative pipeline route avoiding the
environmentally sensitive Sand Hills region of Nebraska, an
extensive sand dune formation with highly porous soil and a shallow
depth to groundwater recharging the Ogallala aquifer. The Temporary
Payroll Tax Cut Continuation Act of 2011 (P.L. 112-78) required the
Secretary of State to approve or deny the project within 60 days.
On January 18, 2012, the State Department, with the President's
consent, denied the Keystone XL permit, citing insufficient time
under this deadline to properly assess the reconfigured project.
Subsequently, TransCanada announced that it would proceed with
development of the pipeline segment connecting Cushing, OK, to the
Gulf Coast as a stand-alone project not requiring a Presidential
Permit-a decision supported by the Obama administration. In April
2012, TransCanada submitted to Nebraska proposed pipeline routes
avoiding the Sand Hills. Subsequently, on May 4, 2012, TransCanada
submitted a new application for a Presidential Permit that includes
proposed new routes through Nebraska. With the new permit
application, the NEPA compliance process begins anew, although it
may draw from relevant existing analysis and documentation prepared
for the August 2011 final EIS. In the wake of the State
Department's denial of the Presidential Permit, Congress has
debated legislative options addressing the Keystone XL pipeline.
The Surface Transportation Extension Act of 2012, Part II (H.R.
4348) and the North American Energy Access Act (H.R. 3548) would
transfer the permitting authority for the Keystone XL pipeline
project to the Federal Energy Regulatory Commission, requiring FERC
to issue a permit within 30 days of enactment. The Keystone For a
Secure Tomorrow Act (H.R. 3811), the Grow America Act of 2012 (S.
2199), S. 2041 (a bill to approve the Keystone XL pipeline), the
EXPAND Act (H.R. 4301), and the Energizing America through
Employment Act (H.R. 4000) would immediately approve the original
permit application filed by TransCanada.
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