The Keystone XL project has been a contentious topic for seven years - and counting...
Former U.S. President George W. Bush granted presidential permission for its construction on March 8, 2008. But the permit was revoked two years later under the Obama administration due to environmental concerns.
This February, Congress proposed another Keystone bill that would provide TransCanada Corp. (NYSE: TRP) - the company behind Keystone's construction - with a refreshed building permit. President Obama vetoed the proposal. He accused Congress of trying to circumnavigate necessary legislative steps for making such large-scale national decisions.
Then just this month on Nov. 6, Obama killed a second Congressional proposal, made in conjunction with TransCanada, for construction to begin. He said it would not serve in the public's best interest.
But the public might disagree with Obama's assessment. According to the University of Texas at Austin's Energy Poll taken in April (soon after Obama's first veto), 51% of those surveyed who were familiar with the pipeline supported it.
And for a good reason: A January 2014 Keystone XL Project executive summary released by the U.S. State Department found that the energy venture would result in significant economic growth, including 42,100 jobs and $3.4 billion (or approximately 0.2% of the U.S. GDP). Furthermore, the summary found that while the project would contribute to climate change, it would not contribute more so than any other alternative option for transporting oil.
Though the project is on hold right now, things might not be completely over for Keystone XL. On Monday, TransCanada said that it theoretically could resubmit its Keystone application in January 2017 - after the next presidential election.
In the meantime, the corporation could plan its next moves, as could the pro-pipeline members of Congress...
Here are two ways the Keystone XL project could be revived.
How to Revive the Keystone XL Project
TransCanada can do two things to keep Keystone alive...
First is a short-term option. It could file an international challenge under the North American Free Trade Agreement (NAFTA) to try to keep Keystone alive, reported The Hill on Tuesday. TransCanada has not opted to do this so far.
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Second, a more long-term way the corporation could revive the Keystone project is to seek an act of Congress that overrides Obama.
To that end, Rep. Brian Babin (R-TX) has asked his colleagues in Congress to sign a letter to Canadian Prime Minister Justin Trudeau urging him to hold off any efforts to stop Keystone. Reps. John Fleming (R-LA), Bob Gibbs (R-OH), Ted Poe (R-TX), and Jeff Duncan (R-SC) have so far endorsed the letter, though Babin is waiting a week for other members to jump on board before sending the letter to Ottawa.
But hoping for success via Congress' intervention is a long stretch, as you can see. There are many hoops the legislative branch would have to jump through. Still, it could happen.
Alternatively, perhaps the most realistic way the Keystone XL project could be revived would be to wait for the election of a pro-Keystone XL president. Although the company's application would be treated as new in January 2017, all of the GOP candidates in the 2016 presidential race have pledged to approve the Keystone XL project quickly.
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