White House to Reject Keystone Pipeline Permit

Industry source: State Department will reject Keystone pipeline reroute

Published January 18, 2012 | FoxNews.com

The State Department will announce the decision on Keystone XL pipeline is "no," as early as Wednesday, an industry source told Fox News, suggesting that the department will say 60 days is inadequate time to do the required environmental impact assessment on the path of the coveted pipeline.

While the State Department for three years has been reviewing the initial proposal to run a pipeline from Canada down to Texas through a sensitive Nebraska aquifer, it retreated early from indications it would approve the plan after environmentalists complained.

Industry workers and Republicans contend the project would create thousands of jobs, and Canada's prime minister has warned if the U.S. can't get on board, the North American nation will look to team with China.

In December, Congress attached to the payroll tax cut a deadline of 60 days for the State Department to determine approval for an alternative route.

On Tuesday, President Obama's own jobs council suggested that it agrees with the pipeline concept. While not specifically mentioning Keystone in a report out Tuesday about improving competitiveness, the council said that when it comes to energy projects in general, the government needs to "expeditiously, though cautiously, move forward on projects that can support hundreds of thousands of jobs."

"We think this all-in energy strategy can create significant economic growths and significant job creation," said Lewis Hay, NextEra Energy CEO and a member of the president's job council.