The Keystone Ultimatum

http://online.wsj.com/article/SB10001424052970203893404577100861639601898.html?mod=WSJ_Opinion_LEADTop

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"A good idea can become a great idea when it is given focus time." (John C. Maxwell)

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The WSJ points out today that the congressional debate about whether the "tax holiday" will continue (yawn) has just gotten more interesting: House Republicans are putting a policy rider in the payroll tax bill which would force a decision on the Keystone XL pipeline within 60 days.

This is their response to President Obama's "decision" to delay a decision until after the general election next year (probably 2013) as to whether to approve (the pipeline).

This is a decision that sat for three years in the Secretary of State's office and was finally approved with 59 provisos (like burying the pipe 4' under the ground) all of which Keystone agreed to. Keystone is a private company in Canada: could we be getting oil from a better (or closer) place? Who are we worried about, Al Gore?

According to most experts, this is the most shovel-ready project in America and the TransCanada company (Keystone's parent) has already made plans to buy the steel pipe to carry crude oil from Canada thru the U.S. to the Gulf of Mexico. This pipeline will create jobs. That's why even the Teamsters support it!

But, as the WSJ so aptly points out, "Mr. Obama's green financiers see the pipeline as a conveyer of evil carbon."

Again, the WSJ: "To give Mr. Obama a spinal implant, the House passed a provision that would give TransCanada a permit to start building in 60 days if the President does nothing. He can still kill the pipeline if he objects. But at least Hamlet of Pennsylvania Avenue would have to make up his mind."

The Keystone codicil is now being negotiated in the Senate where at least eight Democrats have said publicly they hope the project goes forward.

I would agree with those who say that Mr. Obama is probably not willing to see the payroll tax holiday die in the name of stopping a pipeline that will create more jobs.

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On a much less noticed subject, but important to those of us who live in North Texas, another provision passed by the House would give companies 5 years to comply with the EPA's onerous "boiler rule." That rule would impose vast costs on industries that burn oil or coal, such as manufacturers and utilities.

Here in North Texas, it would cost less to shut down a coal-fired power plant (some claim) than to comply with the new rules. My first problem with that is that the people in charge of the power grid warn us that we could lose power in peak load times/days. But, isn't that just when we need the power. So, we'll shut down some power plants: what will that do? Does it take a rocket scientist to answer that question?

My second problem with that is, oh well, China and India: they are building 4 coal-fired power plants per week!!! So, we're going to cause unemployment (and power shortages) in North Texas because of some possibly polluted air that we might be sending to Louisiana? So, what are we doing about China and India?

There are answers here: the U.S. has found major supplies of gas here and elsewhere. That makes gas cheaper. Provide government tax incentives to convert coal plants to gas. Save jobs, improve productivity - do something smart.

Senator Susan Collins (R. Maine) introduced a bill in July telling the EPA to repropose the "boiler rule" in less costly form. That bill has 40 co-sponsors. Maybe there's some "hope."