The Keystone XL pipeline project was rejected by the Obama administration because it went against its efforts to fight climate change. Trump made building the pipeline a central platform in his presidential campaign. Biden, who was vice president under Obama, plans to cancel the permit for the project as one of his first acts in office.
A list of executive actions likely scheduled for the first day of the Biden presidency contains the words “Rescind Keystone XL pipeline permit.” The Keystone XL pipeline project is a $9 billion project. This is one of almost a dozen executive orders Biden will sign on day one to prevent “crises” and “irreversible harms,” according to his transition team.
Senator Bernie Sanders (D-VT) said, “The Keystone pipeline is and always has been a disaster. I’m delighted that Joe Biden will cancel the Keystone permit on his first day in office.”
The pipeline would move crude oil from tar sands in the province of Alberta to Illinois, Oklahoma, Texas and Nebraska. The 1,179-mile pipeline is intended to move 830,000 barrels of oil daily from Hardisty, Alberta, Canada to Nebraska, then connect with the original Keystone to continue on to oil refineries on the Texas Gulf Coast. It was slowed by legal issues in the US and by opposition from environmentalists concerned about Canada’s oilsands. Further legal battles arose from indigenous opponents because the pipeline proposes to cross tribal lands.
Canada’s ambassador to the U.S., Kirsten Hillman, said, “There is no better partner for the U.S. on climate action than Canada as we work together for green transition.” She also noted that the project has changed significantly since Obama’s rejection, and noted, “Canada’s oilsands production has also changed significantly. Per-barrel oilsands GHG (greenhouse gas) emissions have dropped 31 percent since 2000, and innovation will continue to drive progress.”
Conversely, Alberta Premier Jason Kenney said that cancellation would weaken U.S.-Canada relations, undermine American national security by making the U.S. more dependent on OPEC oil imports, and would eliminate jobs. He also said that if the U.S. repeals the permit, “Alberta will work with TC Energy to use all legal avenues available to protect its interest in the project.”
Greenpeace Canada’s Keith Stewart, senior energy strategist, said, “The Biden administration offers us a fresh start on addressing the climate crisis with a willing partner, so let’s not blow it by pushing pipelines.” He also opined that Canada’s continued support of the pipeline was like “beating [a] dead horse.”
TC Energy Corp. runs the pipeline. They claim to achieve net-zero emissions by 2023 when the pipeline enters service. To win Biden's support, the company pledged to use only renewable energy sources by 2030. These pledges include spending $1.7 billion on solar, wind, and battery-powered operating systems for the pipeline, signing indigenous equity partners, and hiring a union-only workforce.
Dennis McConaghy, former TC Energy executive, said, “I have consistently said Biden would indulge in this rescinding of the permit immediately because it’s something he has to do largely to follow through for expectations of his political base and many of his donors.”
Before Trump’s election, TC Energy filed a lawsuit and a multi-billion dollar North American Free Trade Agreement claim against the U.S. They changed course after Trump was elected. Now they could take similar action to avoid walking away from Keystone XL empty-handed after billions spent, years of setbacks, and pages and pages of filings.
James Coleman, associate professor of energy law at Southern Methodist University in Texas, said, “There are plausible legal claims. I think you have to say all of those are less than 50 percent shots to get your money back. Whether it is the end of the road depends on whether the investors want to stick by it.”
Construction of the pipeline is well in hand in Canada, with the international border crossing completed. In the U.S., TC has begun construction on pump stations in each state the line will pass through. Legal setbacks prevented them from working through much of 2020.
Kendall Mackey, 350.org Keep It In the Ground campaign manager said, “The Biden administration halting the Keystone XL pipeline is a momentous sign that he is listening, taking action and making good on his promises to people and the planet.” Mackey also hopes that Biden will end the controversial Dakota Access and Line 3 pipelines.
“This is what true climate leadership looks like,” said the leader of Canada’s federal Green Party, Annamie Paul.
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