U.S. President Barack Obama has vetoed a bill that would have approved construction of the Keystone XL oil pipeline.
The move, while expected, is still significant because it is only the third time that the current U.S. president has opted to shoot down a bill passed by Congress.
The White House position is that cross-border pipeline permits are a matter for the president to decide — not Congress — and that the Keystone XL bill was an attempt to usurp a presidential responsibility.
But the move doesn't signal the end for the 1,900-kilometre pipeline that would bring 800,000 barrels of Alberta crude oil every day to refineries on the U.S. Gulf Coast. The regulatory process is in its final phase as the State Department has finished collecting input and is now preparing a recommendation to the president. Obama must then decide whether the project is in the U.S. national interest.
White House press secretary Josh Earnest said in a press briefing this morning that the president has an "open mind" on the Keystone XL pipeline and could very well approve it after the State Department review.
A presidential veto can be overridden if a bill gets two-thirds majority in both chambers of Congress — the Senate and the House of Representatives.
Senate majority leader Mitch McConnell indicated the Senate would start the process to try and override the veto by March 3. But it's unlikely Republicans can get enough support in both chambers to do that.
Environmental groups and landowners from along the route have applauded the veto and urged Obama to go further and reject the project entirely.
For its part, TransCanada Corporation (T.TRP) — the Calgary-based company that wants to build and operate the pipeline — was quick to say it stands by the project, and looks forward to working with legislators to see it completed.
TransCanada shares nicked up five cents to open Wednesday at $55.00, within a 52-week trading range of $48.50 to $63.86.
Related Stories
