Two-month deadline for Keystone XL embedded in US tax proposal

Washington (Platts)--9Dec2011/1242 pm EST/1742 GMT


A provision forcing a decision on the Keystone XL pipeline appeared in a key end-of-year tax package introduced Friday by US House Republicans.

The bill would give the Obama administration 60 days to approve TransCanada's Alberta-to-Texas pipeline or declare it against the national interest. The latter finding would require the administration to submit to Congress within 15 days a report justifying the decision, "including consideration of economic, employment, energy security, foreign policy, trade and environmental factors."

If the White House takes no action in 60 days, the permit "shall be in effect by operation of law," the bill said.

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President Barack Obama warned Wednesday that he would reject any attempts by Congress to link expiring payroll tax cuts and unemployment insurance with the controversial permitting process for the crude oil pipeline.

House Speaker John Boehner responded Thursday that Keystone fits within the bill's larger economic goals because it would create thousands of jobs.

The 369-page proposal released by the House Rules Committee also includes a provision that would delay implementation of the Environmental Protection Agency's rules for industrial boilers.

--Meghan Gordon, meghan_gordon@platts.com