Infrastructure on the Agenda

Posted by Ed Burke on Mar 31, 2015 12:16:19 PM

Abstract view of the cockpit of a semi-truck driving on the highway

Energy Infrastructure is one of the topics essentially absent from the Congressional agenda at the moment, with the exception of continuing efforts to pass a Keystone XL bill. As you recall, the last bill successfully passed the House and Senate, only to be vetoed by President. It ultimately died in the Senate where it lacked the votes to override said veto. 

What's interesting is the legislature is dealing with a lot of infrastructure and transportation structure and funding issues (the Highway Trust Fund, Supply Chain issues on the West Coast, EPA Clean Power Limit Proposals, etc) but has somewhat neglected looking at energy infrastructure as a stand alone concern.

One of the EPA proposals under review, the "Clean Power Plan" which seeks to limit carbon emissions from existing power plants. The proposal would spike electricity rates further, and rate payers would also be on the hook for the upgrades needed to comply with the proposal if it goes through in its current form. 

This is especially bad for New Englanders who have recently been dealt a 37% rate hike on electric utility rates (read more on that here: MA Rate Hikes). New Englands issue is a lack of infrastructure on the natural gas side, somewhat ironically. 

I wrote an article for the March issue of Oil & Energy Magazine on Infrastructure policies under review and how a lack of forward progress on them could slow economic growth. You can read the full article here: Infrastructure Shortfalls Could Slow Growth 

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Topics: Oil & Energy Magazine, Energy Infrastructure, Congress

Keystone XL Hits the Senate Floor

Posted by Ed Burke on Nov 18, 2014 11:59:17 AM

Oil pipeline in the snow

Today, the bill to approve the construction of the the Keystone XL pipeline hits the Senate, after the House approved Cassidy's legislation by 252-161 on Friday. 

In an exciting twist, the Senate is apparently stuck at 59 votes in favor, one shy of the 60 needed to pass the legislation and send it to the Presidents desk. However, Mary Landrieu (D-LA) claimed yesterday to have secured the 60th vote. The bill hits the floor in what some say is an attempt to boost Landrieu's chances of maintaining her Senate seat in the December 6th runoff election she faces versus, oddly, the bill's sponsor, Bill Cassidy.

(Sounds cynical, yes, but given that the House has previously passed 8 seperate bills to push the vote on Keystone and none saw the Senate floor, it seems pretty reasonable as well.)

The jury is out on whether if the bill passes it will be vetoed by the President or not. He cited a legal challenge to the pipeline in Nebraska that is still ongoing, stating that "process should not be interfered with", but Secretary of State John Kerry recently made statements in Canada that implied the Administration may not veto a bill if it came down to it. It's really anyone's guess. 

Obviously, this has been a lighting rod political issue for the over 6 years the project has been on hold. On one side there are environmental groups and people in the geography impacted, who are concerned with  the climate impact, potential leaks,  and the "doubling down" on a commitment to fossil fuels they see the pipeline as representing. On the other are groups who argue this strengthens our energy independence and supports American workers and the American economy versus that of other countries, and those who cite the immediate jobs boost the project will represent. 

We've talked about some of these Keystone related issues before: 

There are 6 hours scheduled for debate on the floor, with the vote expected to occur at 6:15pm. Stay tuned! 

 

 

 

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Topics: Energy Independence, Keystone XL, Energy Infrastructure, TransCanada, senate

Progress on Keystone XL? ....Don't Get Your Hopes Up

Posted by Ed Burke on Jun 25, 2014 2:49:09 PM

Oil pipline in the snow

 

Tuesday the House passed bipartisan legislation to speed up the approval process for cross-border energy projects (ie Keystone XL), despite a promised veto from President Obama.  The bill is known as the “North American Energy Infrastructure Act”, featuring 12 Republican and 8 Democratic co-sponsors. If it passed the Senate, it would establish by law that projects be granted or denied approval within 120 days of the Environmental Impact Study, and more significantly, it would remove the need for Presidential Approval.

Technically the bill doesn’t apply to Keystone XL, because the applications and environmental impact studies are already completed for that proposed project. However, that’s obviously the most glaring example of the need to speed up the process, and probably the impetus for the bill’s submission in the first place. In theory, TransCanada could resubmit their application and be subject to the speedier process. (A motion to prevent TransCanada from resubmitting should the bill pass was handily shut down by a wide margin.) 

It’s unlikely that the bill will get through the Senate with a veto-proof majority, though. It may not even be likely that the bill be considered by the Senate, as Majority Leader Reid has indicated he has no inclination to move this or previous Keystone related bills to the floor if he can help it. 

As you know, the project has been languishing for over 5 years after delay upon delay. Earlier this year, progress looked promising when the Environmental Impact Study found no significant environmental concern to prevent the project from going forward (actually, its more environmentally safe to transport via pipeline than railcar - but I digress...). However, nothing much happened and now the current hold up is purportedly related to a "wait and see" on how a Nebraska district court rules on the proposed pathway for a portion of pipeline in that state.

Frustrating to be sure - but the strong bipartisan nature of the push to move Keystone forward in Congress is an encouraging sign. I'm sure we won't see any real movement until after the midterms, given the polarity of the issue in some areas and the amount of seats up for grabs in the Senate. Hopefully, no matter which way the chips fall in the mid terms, we finally see some real, meaningful progress on what is such an extremely important project for our Energy and National Security. 

 

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Topics: Energy Independence, Keystone XL, Energy Infrastructure, Congress, TransCanada, Environmental Impact Study

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