Feds' decision on Keystone XL Pipeline delayed; could help Democrats on both sides of the issue

The State Department announced Friday that it is delaying its final decision on the controversial Keystone XL Pipeline "until it has a clearer idea of how legal challenges to the pipeline’s route through Nebraska will be settled," Coral Davenport reports for The New York Times.

Last year Republican Gov. Dave Heineman endorsed the pipeline, but in February a state court invalidated the decision. The 1,700-mile pipeline, which would carry crude oil from the Alberta oil sands in Canada to Gulf Coast refineries, would join an existing pipeline junction at Steele City, Neb. Critics and advocates of the pipeline say the latest move is politically motivated, accusing Democrats of purposefully postponing the decision until after elections. (The proposed pipeline)

"Approving the pipeline before the election could staunch the flow of money from liberal donors and fund-raisers who oppose the project, like Tom Steyer, a California billionaire, who has personally asked Obama to reject the pipeline," Davenport writes. Steyer "has pledged to spend $100 million to support candidates who back strong policies to fight climate change."

Conversely, "Delaying the pipeline decision until after the election could help Democrats on both sides of the issue," Davenport notes. "Supporters could court voters by calling for its approval, while liberals who oppose the pipeline could still enjoy financial support from donors like Steyer."

Conservative Republicans and environmental groups are criticizing the decision to delay. Republicans say approving construction would create thousands of jobs, but delaying it is keeping those people from working, while environmentalists say the Obama administration needs to work faster to make decisions to prevent climate change. (Read more)