Reuters: Regulatory News: UPDATE 1-Keystone pipeline "rodeo" rides again in U.S. House

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UPDATE 1-Keystone pipeline "rodeo" rides again in U.S. House Apr 18th 2012, 20:24 Wed Apr 18, 2012 4:24pm EDT * Wednesday vote is fourth for House on pipeline from Canada * White House has threatened to veto bill * Rep Lee Terry - "It may not be the last rodeo." * Rep Steve Cohen - gas price link is "hooey" By Roberta Rampton WASHINGTON, April 18 (Reuters) - The U.S. House of Representatives is scheduled to vote on the Keystone XL oil pipeline from Canada for the fourth time in two years on Wednesday, but the Nebraska Republican who has championed the project knows it well may not be the last. The pipeline, put on hold by President Barack Obama earlier this year, has b ecome an outsized political symbol h eading into the November elections as Republicans use it to attack Obama's economic and energy policies. "I've been through the Keystone rodeo before," said U.S. Representative Lee Terry, expressing optimism that, this time, a bill he wrote just might lead to a deal to advance TransCanada's $7 billion pipeline. But Terry, a senior member of the House Energy and Commerce committee, also recognized that his bill, expected to pass the House as part of a short-term extension of highway and infrastructure funding, faces a rough ride ahead. The bill would strip Obama of his authority to rule on the pipeline. The White House said on Tuesday that Obama would veto the bill, if it makes it to his desk. The Democratic president, who has backed the southernmost portion of the line from Oklahoma to Texas, p ut a hold on the rest of the project earlier this year, insisting a portion of the pipeline in Nebraska needs more environmental review. "We'll keep swinging," Terry vowed in an interview. "It may not be the last rodeo." TOP TARGET FOR GREEN GROUPS Environmental groups have vehemently opposed Keystone because they argue the crude it would bring in crude from Canada's oil sands is dirtier than other types of crude oil. They are concerned about the risk posed by spills from the pipeline, have contested estimates of jobs created by the project, and have raised awareness about the growth in U.S. exports of refined oil products. "This is a plot to build a pipeline ... and then export that oil outside the United States," said Edward Markey, a Massachusetts Democrat, and a Keystone critic. Last year, thousands of protesters encircled the White House, and hundreds were arrested, focusing media scrutiny on the pipeline and helping prompt the administration's second thoughts on the project. The state of Nebraska was also concerned that the pipeline's original route went through the sensitive Sandhills region and over a major aquifer. The state government now supports a new route proposed by TransCanada. Some groups in the state said they plan a legal challenge. The project won't tamp down surging gasoline prices, warned Steve Cohen, a Democratic lawmaker from Tennessee who has led criticism of the project in the House. "That is hooey," Cohen said on Wednesday. "It will simply mean more money for international oil companies." SENATE COULD BUCK BILL Terry said he expects the Republican-led House will pass a bill later on Wednesday to extend funding for highway and other infrastructure projects until the end of September. Th e House has been unable to agree on a long-term highway deal. Attached to the stop-gap funding bill is Terry's text , which would transfer authority for approving the pipeline to the Federal Energy Regulatory Commission, and require the regulator to quickly issue permits. The Democratic-controlled Senate would need to agree to the short-term fix on highway funding, and the pipeline provision, in order for it to reach Obama's desk. In light of past Senate action on the measure, that would be a tough fight. In March, the Senate agreed on a two-year, $109 billion plan for transportation. At that time the Senate c onsidered adding approval for Keystone to its highway bill, but the measure failed in a 56-42 vote, four short of the 60 votes needed to pass. Obama took the unusual step of calling some senators directly before the vote, asking them to reject the proposal. Still, 11 Democratic senators voted for the plan. Terry thinks that negotiations on a short-term highway funding bill that includes Keystone could pass a House-Senate conference committee, and that could make Obama rethink the veto threat. "If we could get enough votes in the Senate, I could almost guarantee the White House would become more reasonable," Terry said. Link this Share this Digg this Email Reprints

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