The Obama administration will reportedly announce Wednesday that it will seek to deny a controversial pipeline project a key permit, a move that is likely to face opposition from congressional Republicans.
The Obama administration will announce rejection of TransCanada Corp.’s Keystone XL pipeline as soon as today, according to sources close to the administration. Various media outlets have reported that the decision is imminent, citing unnamed sources, but the White House and the State Department have not confirmed the announcement.
According to one source, the administration plans to cite the environmental dangers posed by the pipeline’s proposed route through Nebraska. President Obama has said in the past that his administration would require additional time to adequetely consider the implications and consequences of the multi-billion dollar project, which will span from Canada to the U.S. South.
The decision is likely to increase tension between the White House and the Republican-led House, which has expressed support for the measure and sough to make it a defining issue in the December showdown in late 2011.
House Speaker John Boehner slammed the decision, saying it will eliminate thousands of jobs.
“President Obama is about to destroy tens of thousands of American jobs and sell American energy security to the Chinese,” said Boehner spokesman Brendan Buck.
TransCanada applied for a U.S. permit in 2008. Advocates such as Senator Richard Lugar, an Indiana Republican who has sponsored legislation supporting the project, said further delay compromises U.S. efforts to import more oil from a friendly nation.
