If constructed, the Keystone XL pipeline would transport crude oil
(e.g., synthetic crude oil or diluted bitumen) derived from oil
sands in Alberta, Canada to destinations in the United States.
Because the pipeline crosses an international border, it requires a
Presidential Permit that is issued by the Department of State
(DOS). The permit decision rests on a "national interest"
determination, a term not defined in the authorizing Executive
Orders. DOS states that it has "significant discretion" in the
factors it examines in this determination. Key events related to
the Presidential Permit include: September 19, 2008: TransCanada
submitted an application for a Presidential Permit for its Keystone
XL pipeline. November 10, 2011: DOS announced it needed additional
information concerning alternative pipeline routes through the
Nebraska Sandhills. January 18, 2012: In response to a legislative
mandate in P.L. 112-78, DOS, with the President's consent,
announced its denial of the Keystone XL permit. May 4, 2012:
TransCanada submitted a revised permit application to DOS. Although
some groups have opposed previous oil pipeline permits, opposition
to the Keystone XL proposal has generated substantially more
interest among environmental stakeholders. Pipeline opponents are
not a monolithic group: some raise concerns about potential local
impacts, such as oil spills or extraction impacts in Canada; some
argue the pipeline would have national energy and climate change
policy implications. A number of key studies indicate that oil
sands crude has a higher greenhouse gas (GHG) emissions intensity
than many other forms of crude oil. The primary reason for the
higher intensity: oil sands are heavy oils with a high viscosity,
requiring more energy- and resource intensive activities to
extract. However, analytical results vary due to different modeling
assumptions. Moreover, industry stakeholders point out that many
analyses indicate that GHG emissions from oil sands crude oil are
comparable to other heavy crudes, some of which are produced and/or
consumed in the United States. Because of oil sands' increased
emissions intensity, further oil sands development runs counter to
some stakeholders' energy and climate change policy objectives.
These objectives may vary based on differing views concerning the
severity of climate change risk and/or the need for significant
mitigation efforts. Opponents worry that oil sands crude oil will
account for a greater percentage of U.S. oil consumption over time,
making GHG emissions reduction more difficult. On the other hand,
neither issuance of a Presidential Permit nor increased oil sands
development would preclude the implementation of energy/climate
policies that would support less carbon intensive fuels or energy
efficiency improvements. A primary local/regional environmental
concern of any oil pipeline is the risk of a spill. Environmental
groups have argued that both the pipeline's operating parameters
and the material being transported imposes an increased risk of
spill. Industry stakeholders have been critical of these
assertions. To examine the concerns, Congress included provisions
in P.L. 112-90 requiring a review of current oil pipeline
regulations and a risk analysis of oil sands crude. Opponents of
the Keystone XL pipeline and oil sands development often highlight
the environmental impacts that pertain to the region in which the
oil sands resources are extracted. Potential impacts include, among
others, land disturbance and water resource issues. In general,
these local/regional impacts from Canadian oil sands development
may not directly affect public health or the environment in the
United States. Within the context of a Presidential Permit, the
mechanism to consider local Canadian impacts is unclear.
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