Mr. Speaker, I yield myself such time as I may consume. Well, it is Groundhog Day come early to the floor of the House. It is cold enough I guess for Groundhog Day, but this will be the 10th time in…
Mr. Speaker, I yield myself such time as I may consume.
Well, it is Groundhog Day come early to the floor of the House. It is cold enough I guess for Groundhog Day, but this will be the 10th time in the last 4 years that the House of Representatives has moved this bill with the assertion that somehow it leads us to energy independence, energy security, lower prices at the pump.
Well, the reality is a Canadian corporation is going to build a pipeline from Canada to Texas. They are going to be exempt from paying into the Oil Spill Liability Trust Fund, unlike most other projects in this country, because of a stupid ruling by the IRS--but that is nothing new--regarding tar sands. So they will be exempt from paying into that. So if this thing bursts, there is an accident, the taxpayers of the United States get the bill, not the taxpayers of Canada. They don't get the bill. The taxpayers of the United States get the bill. Now, that is one of a number of problems regarding this project.
It is somewhat unprecedented, I believe. This may have happened at some other time in American history, but I do find it particularly ironic today, when we had the reading of the Constitution, that the effect of passing this bill, if it were to become law--and the President has already said he will veto it. But if this were to become law, the effect would be to give a foreign corporation the right to take private property from American citizens.
I am not aware of any other time in the history of the Union where we have given a foreign corporation the right to take Americans' private property. And, yes, some people were happy to sell the rights, but many others weren't, including some in Nebraska and some in Texas. It has been quite contentious among landowners who are just having this corporation come.
I would like to put in the Record a letter from TransCanada. We have blacked out the name of the recipient of the letter, but it is a true copy of a letter to a person who will have their private property taken by eminent domain by a foreign corporation, and the foreign corporation informs them that they will begin proceedings this month, I guess because of the anticipated Republican action, to take their private property away.
TransCanada,
Omaha, NE, December 8, 2014
Re Keystone XL Project Update.
Dear Landowner: While we continue to wait for decisions
from the Nebraska Supreme Court and from the U.S. Department
of State regarding our proposed Keystone XL Pipeline, I would
like to provide you with an update on our project.
To date, Nebraska landowners have voluntarily granted us
easements representing 84 percent of the required right-of-
way for the Keystone XL Pipeline Project. We continue to work
to acquire the remaining land rights. In Montana and South
Dakota, we have acquired easements for 100 percent of the
privately owned right-of-way.
Between September 2008 and earlier this year, five
successive sets of extensive public comments were taken and
five successive independent environmental assessments were
published by the State Department. Each review confirmed the
safety and environmental soundness of the project. The State
Department is continuing its review of our Presidential
Permit application and will ultimately make a determination
whether the project is in the national interest. The State
Department has not announced a definitive timeline for
reaching that decision.
In addition, reviews have been completed separately by the
States of Montana, Nebraska and South Dakota. As with the
federal reviews, these state reviews included extensive
public input. Each resulted in state approval of the project.
In South Dakota, the South Dakota Public Utilities
Commission approved the project in 2010. Because construction
did not begin within four years, we must certify that the
pipeline continues to meet the conditions upon which the
permit was issued. We have initiated the certification
process and we expect a decision in 2015.
The State of Nebraska enacted legislation in 2011 and in
2012 requiring state review of the proposed Keystone XL
Pipeline route. The Governor approved the route in January
2013, after a year-long public review process overseen by the
Nebraska Department of Environmental Quality. Following a
legal challenge of the new law, a lower court determined that
the law was not valid and that the review should have been
overseen by the Nebraska Public Service Commission. The
Nebraska Attorney General appealed the lower court ruling to
the Nebraska Supreme Court and the Court is expected to make
a ruling later this year or early next year.
Pending a decision on the appeal, the law remains in effect
as does the resulting Keystone XL route. In the event that
the Nebraska Supreme Court affirms the lower court ruling
invalidating the new law, we would expect a second Nebraska
review to be required, this time by the Nebraska Public
Service Commission.
If instead, the Nebraska Supreme Court reverses the lower
court ruling, affirming the validity of the existing state
review, we expect that other aspects of that law would remain
in effect as well. One of those aspects affects the timing
available to complete negotiations to acquire remaining
property rights in Nebraska. If parties ultimately are not
able to reach voluntary agreement on acquisition of necessary
land rights for the project, we are required to commence the
legal process of eminent domain to obtain those rights within
two years of the January 2013 Nebraska approval.
We recognize that the Supreme Court ruling may not be
issued before we are required to take action in preparation
for the existing January 2015 deadline. While we would prefer
not to initiate the process to acquire outstanding land
rights while there is uncertainty, we are bound by that
deadline in order to meet our responsibility to continue to
prepare to build the pipeline necessary to safely transport
North American energy.
Regardless of your perspective on the project, we would
welcome the opportunity to address your questions and
concerns and discuss property-specific details for pipeline
construction. When we are able to work with landowners to
achieve mutual agreement where possible, we are better able
to minimize potential effects of construction on land and
operations.
A member of my land team will follow-up with you or your
legal counsel. If you have not heard from us or if you have
questions, you are welcome to contact me. If you would like
to see an operating pipeline, please let us know and we'd be
happy to arrange for a
tour of a pump station on the operating Keystone line in
Nebraska.
Sincerely,
Andrew Craig,
Manager--Land, Keystone Projects,
TransCanada Pipelines, USA.
Now, that is a bit ironic, again, on the day we read the Constitution and also of the party of individual rights for property owners. So that is also of concern.
Yes, there will be construction jobs, and I am the first to admit we need more jobs in America. In fact, I voted against the President's so- called stimulus bill because it didn't invest enough in building infrastructure in this country. Instead, it did a whole bunch of stupid tax cuts because of Larry Summers, a highly acclaimed hack economist, and we didn't put a lot of people back to work. Seven percent went to infrastructure, that created jobs; 42 percent went to tax cuts, didn't create jobs. But that is another agenda the Republicans are pursuing is tax cuts to create jobs, but we won't get into that here today.
So, yes, that will happen, but there are a lot of other investments we should, could, and I believe the chairman supports making that will create significant construction and infrastructure jobs.
Now, were this just in isolation and it didn't involve the total destruction of the boreal forests of Canada, if I were Canadian I would be pretty upset about that; and perhaps the dirtiest, most environmentally problematic way of extracting fossil fuels from the ground to get these oil sands, the construction jobs might carry the day, but sometimes you have to draw a line.
In this case, we also hear it is going to lead somehow to energy security. Well, that is interesting because the crude, tar sand oil, or whatever you want to call it, is going to come down to Texas without paying into the Oil Spill Liability Trust Fund--creating a potential problem for the future taxpayers of the United States--go to a refinery in an export zone in Texas, and, yes, it will be refined and then it will be exported.
We are exporting millions of gallons of fuel every day, so to somehow say this is going to lead to lower prices at the pump in America--maybe it is lower prices at the pump in China or I don't know where else, Japan or someplace, but it isn't going to be here because the product is ultimately going to be exported. So it is also not going to do anything for our energy security, and at the moment we have kind of a surfeit because of fracking and other things of fuels, and prices are down considerably.
So those are just a few of the problems.
And by passing this bill, the House of Representatives will attempt to preempt the executive authority of the President in this matter because this pipeline crosses an international border. The President has authority, and the State Department has been considering it.
And even with the Supreme Court of Nebraska refusing to make a judgment, they didn't uphold the law of the Nebraska legislature. In fact, four out of seven judges--normally a majority in most places-- said it was unconstitutional, but Nebraska has a peculiarity that if the other three judges take a walk--which they did--then even though a majority found it unconstitutional, it is not found unconstitutional, and that is the end of the proceeding.
So that is the big news out of Nebraska. They need a little work on their constitution, I think. So it hasn't received a stamp of approval there. There are still aggrieved landowners in Nebraska who object to the route and who are going to have their private property taken by a foreign corporation. So other than that, it is a great idea.
And with that, I reserve the balance of my time.
Mr. Speaker, could you tell me how much time remains of the 15 minutes that I had?
With that, I yield 4 minutes to the gentleman from Arizona (Mr. Grijalva), the ranking member of the Natural Resources Committee.
Mr. Speaker, I yield myself such time as I may consume.
The gentleman just referenced safely transport. Of course that is a hypothetical. And let me give a real example:
In 2010, a Canadian company, Enbridge, had a pipeline burst in Marshall, Michigan, spilling 1 million gallons of tar sands oil.
Now, here is the thing. All oil has viscosity and other characteristics. The thing about tar sands oil is, it doesn't float. It goes right to the bottom. They are still dredging Canadian tar sands oil out of the bottom of the Kalamazoo River 4 years later. And so far, claims of $53 million have been made, which will have to be paid by American taxpayers against the Oil Spill Liability Trust Fund and not by Enbridge, the Canadian corporation.
Which is what we are setting up here: an even greater transshipment by a foreign corporation, exempt from paying into the Oil Spill Liability Trust Fund, creating even bigger potential for spills with this oil, which has unique characteristics which are much more difficult to clean up if it comes in contact with water and, God forbid, it gets into the aquifer in one of the States that are being transected.
The chairman did reference the 15 hearings. We have a difference in counting. But let's say 15 hearings. Three were in the Rules Committee. Those aren't hearings. That is sort of a little star chamber where you take things before you bring them to the floor of the House. You don't discuss substance there. One was in the Senate. There were 10 in the House, but not a single one of those hearings was in the principal committee of jurisdiction, which would be the Transportation Committee. And of course the bill that was marked up by the Transportation Committee in the first session of the last Congress was very different than the bill that is being advocated for today, which has not been marked up.
And we heard a lot about regular order, read the bill, and all that stuff. It is fine to say, gee, we have voted on this a lot of times before. With 61 new Members of the House, gas prices are down by almost 50 percent, a lot of things have changed. I would even wonder about the viability of this project.
I did just recently learn that the Koch brothers, though, have a significant investment in tar sands in Canada. But that probably has nothing to do with an attempt to expedite this project.
With that, I reserve the balance of my time.
At this moment, I reserve the balance of my time.
Mr. Speaker, I yield myself 30 seconds.
In response to the transport, yes, pipelines are generally safer, but the
consequences--look at the case in Michigan--when a pipeline goes are generally much greater, much greater volumes.
Even in the horrific train accidents we have had, the volumes were relatively small that were spilled, even though the consequences-- particularly in the one in Canada--were very, very damaging. Minimally, you should have added to the bill requiring them to pay into the oil spill liability trust fund. That would make that slightly less objectionable.
I yield 1\1/2\ minutes to the gentleman from New Jersey (Mr. Pascrell).
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, we are exporting more than 60 percent of the oil that we produce every day either as refined or even as crude product. In this case, Canadian oil, exempt from a tax, will flow
through the United States to a refinery.
It will be processed and exported overseas. Somehow, that is going to lower prices further at the pump. Somehow, that is going to lead to American energy security.
You have to blow the dust off those arguments. They are a little dated, so we have raised a number of concerns here today.
Minimally--minimally--the Republicans should require this Canadian corporation to pay the same tax that most U.S. corporations pay when they transport products through pipelines and not put American taxpayers at risk.
I yield back the balance of my time.