Congress Watch: Keystone Pipeline and the Senate

Taxpayers Protection Alliance

May 6, 2014

As the Senate debated its budget resolution last March, an amendment in support of the Keystone XL pipeline was offered and 62 Senators voted in favor of it.  And, polls indicate that 65% of the American people support the Keystone XL pipeline project.   So, it seems simple, as the Senate considers bipartisan energy efficiency legislation this week, it seems only natural that there would finally be a vote to get the project moving.  But, that would be too easy, and require the one the thing that Washington has the biggest deficit of, common sense.

First, it is important to understand the facts about the pipeline. The proposed pipeline, which would carry roughly 700,000 barrels of oil per day from Alberta, Canada, to refineries on the Gulf Coast, would encompass 1,700 miles and cost approximately $7 billion.  The pipeline would be an extension of one that became operational in 2010.

Most importantly, the pipeline will be a job creator, critical for a country struggling to come out of a recession.  According to the Heritage Foundation, “Building the pipeline would directly create 20,000 truly shovel-ready jobs; the Canadian Energy Research Institute estimates that current pipeline operations and the addition of the Keystone XL pipeline would create 179,000 American jobs by 2035.” This would mean a broader tax base and increased revenue to the government without raising taxes.  Also, more people collecting a paycheck means fewer people collecting unemployment benefits.

This week the Senate is scheduled to consider the Energy Savings and Industrial Competitiveness Act.  Generally, this bill promotes and encourages energy efficiency.  Even though not everyone supports the bill, it appears to have more than the 60 votes necessary to overcome a filibuster and pass the Senate.

According to Sen. Rob Portman (R-Ohio), one of the bill’s authors, this will be the first time in more than six years that the Senate will actually consider an energy bill.  So, it makes sense that this bill would be the vehicle for an amendment to force the construction of the Keystone Pipeline.  Republicans have been clamoring for such a vote for a while.  Some vulnerable democratic incumbents would like the opportunity to show their support for job-producing energy legislation and distinguish themselves from Senate Majority Leader Harry Reid and President Obama.

The problem is that everyone is certain that the President would veto this bill if it contained a provision forcing construction of the pipeline and there are not 67 Senate votes to override the veto.  Majority Leader Reid sees this as an opportunity to have his cake and eat it to.  He is offering a vote on the Keystone Pipeline – either as an amendment to this bill or as a stand-alone bill.  In exchange, he wants to limit the other energy-related amendments that Republicans could offer to the energy efficiency bill.   Senate Republicans see any vote on the Keystone Pipeline as a win-win for Democrats.  Why should they cede their right to offer germane amendments in return for allowing vulnerable Democrats to show their independence?  After all, a presidential veto of Keystone gives them nothing in return.

As with most things Senate-related, what seems so simple on the surface is just a façade.  The background political considerations always puts a kink in the plans.  And, the American people are usually left wondering why it can never get anything done.