Environmental issues affect just about every aspect of our lives and our economy. And when your largest trading partner lives next door, their environmental policies can significantly impact your life – some more than others.
While the relations between Canada and the US have their ups and downs, in general we are friendly neighbours and trading partners. One area where there has been some recent strife involves pipelines, including Keystone XL Pipeline. On his first day in office, US President, Joseph Biden signed an Executive Order (EO) that put a halt to the Keystone XL Pipeline. This was not received well by their “pipeline partners” – Canada.
President Joe Biden’s Executive Order
The official title of the EO is “Executive Order on Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis.”
Here is what the order says in part: “Sec. 6. Revoking the March 2019 Permit for the Keystone XL Pipeline. (a) On March 29, 2019, the President granted to TransCanada Keystone Pipeline, L.P. a Presidential permit (the ‘Permit’) to construct, connect, operate, and maintain pipeline facilities at the international border of the United States and Canada (the ‘Keystone XL pipeline’), subject to express conditions and potential revocation in the President’s sole discretion. The Permit is hereby revoked in accordance with Article 1(1) of the Permit” (emphasis added).
The EO goes on to say that in 2015 following an “exhaustive review the Department of State and the President determined that approving the proposed Keystone XL pipeline would not serve the U.S. national interest.” The EO also states that concerns over climate change and the weather related events potentially associated climate change are further justification to stop work on the pipeline.
Hardisty, Alberta to Steele City, Nebraska
The Keystone XL Pipeline is a relatively smaller addition to larger footprint of the existing Keystone Pipeline. The aim of Keystone XL is to transport the oil from Alberta to Nebraska. In fact there are hundreds of thousands of kilometres of pipelines in the US and Canada. The American Petroleum Institute has maps of many of the pipelines in the US.
Canada and the US have hundreds-of-thousands of kilometres of pipelines to move products. Some of these pipelines get more attention than others (Photo by SELİM ARDA ERYILMAZ on Unsplash).
Alberta’s Premier Responds
This EO and the manner in which it handled, without consultation with Canada, was not received well by Alberta Premier, Jason Kenney. According to an article in the CBC, “Alberta Premier Jason Kenney said U.S. President Joe Biden’s decision to revoke the permit for Calgary-based TC Energy’s Keystone XL pipeline was a ‘gut punch,’ characterizing it as a direct attack on the trade relationship between the two countries.”
From Alberta’s website quoting Premier Kenney, “The United States is our most important ally and trading partner. Amongst all of the Canadian provinces, Alberta has the deepest economic ties to the United States with $100 billion worth of exports, and strong social connections that go back over a century.”
“As friends and allies of the United States, we are deeply disturbed that one of President Biden’s first actions in office has been to rescind the Presidential permit for the Keystone XL Pipeline border crossing.”
According to an article in World Oil, “Last year, Kenney’s government invested $1.1 billion of taxpayer money to jump-start construction of the pipeline that would carry more than 800,000 barrels a day of crude from Alberta’s oil sands as far south as the U.S. Gulf Coast.”
Keystone XL Would Reduce Emissions
Without the pipeline, the oil will be moved by truck and rail. While all forms of transporting oil have proved to be increasingly safe, pipelines move the product 24-7 and have a smaller carbon footprint. Premier Kenney stated, “The U.S. State Department’s own exhaustive analysis conducted under President Obama’s administration concluded that Keystone XL would actually reduce emissions, as the alternative will be to move this energy by higher emitting and less secure rail transport.”
The future of the Keystone XL pipeline is uncertain. But unless discussions between Canada and the US can change the US President’s mind – it looks to be stalled for the foreseeable future.
Efforts to Shut Down Line 5
This is not the first time issues involving pipelines between our neighbours have caused concern. In our blog from this past summer we talked about Michigan’s efforts to shut down Enbridge Line 5 and the significant impact that would have on energy for Canadians, in particular, in Ontario and Quebec (see U.S. Pipelines Shut Down: Will This Impact Canada?).
The most recent efforts by Michigan’s Governor Gretchen Whitmer and Attorney General Dana Nessel to shut down Line 5 were overturned by the (Michigan’s) Department of Environment, Great Lakes, and Energy (EGLE). See EGLE approves permits for proposed Mackinac Straits tunnel.
Will elected officials try another approach to shut down Line 5? Time will tell.
Important Environmental Issues
Keeping a pulse on regulations, emerging contaminants, and the political winds is important for all businesses. We will continue to share big picture perspectives (such as Executive Orders) more importantly, issues on the ground such as Record of Site Conditions, Excess Soils, Compliance, and webinars on practical issues such as Understanding Groundwater Contamination. If you have any questions/comments or need assistance on an environmental issues, you can reach me at 519-948-7300, Ext. 114.
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