Dems on Keystone: Only in America
House Democrats are largely putting aside environmental concerns for the moment in favor of focusing on an "only in America" agenda as their marketing strategy against Keystone XL legislation.
The Energy and Commerce Committee is expected Tuesday to pass legislation from Rep. Lee Terry (R-Neb.) directing the Federal Energy Regulatory Commission to quickly approve TransCanada's proposed pipeline.
But first, Democrats are offering message amendments requiring oil pumped through the pipeline to stay in the U.S. and steel and other materials to be U.S.-based as well.
The strategy — an extension of a "Make It In America" agenda long championed by Minority Whip Steny Hoyer (D-Md.) and the Obama administration — allows Democrats to try to blame Republicans for sending jobs overseas on bills Democrats would oppose otherwise on environmental and other grounds.
Rep. Ed Markey (D-Mass.) offered an amendment to keep oil from the Keystone pipeline in the U.S. — echoing a failed amendment from a markup last week to keep natural gas tapped in the Arctic National Wildlife Refuge for domestic use.
Markey said his amendment is intended to prevent only refined petroleum products like gasoline, diesel fuel and jet fuel from being exported. Non-refined petroleum products, he said, like pantyhose, footballs, toothbrushes and steel, can still be exported. But Republicans said his amendment as written would ban non-refined products as well.
Senate Majority Leader Harry Reid similarly stressed this angle in criticizing the Keystone XL pipeline recently. "If we want to wean ourselves from foreign oil, why would we allow a pipeline to be built for 1,700 miles to manufacture petroleum products to be shipped overseas?" Reid told reporters last month. "That's the purpose of this."
Rep. Mike Doyle (D-Pa.) has an amendment requiring that at least 75 percent of the iron and steel used to build the U.S. portion of the pipeline and related facilities has to be based in North America.
This has been the argument of the United Steelworkers — who oppose the proposed pipeline over the concern that a lot of their workers would fall victim to outsourcing. The existing Keystone pipeline, for example, uses steel from India.
"It's not just about construction jobs," Steelworkers spokesman Gary Hubbard said. "If we sit back and do nothing, we lose all these important jobs."
Republicans say these Democratic provisions are merely poison pills.
"This is a political ploy that they're making, it's a red herring, it's a red meat issue," Energy and Power Subcommittee Chairman Ed Whitfield told POLITICO, pointing to an Energy Department analysis noting that very little, if any, of the oil would be exported.
"And even if it does, why is that a problem?" he said. "We've got a big, huge trade deficit and we need to try to reduce that trade deficit and this is one way to do it."
Republicans also point to major labor unions — such as the Teamsters, Laborers' International and the building and construction trades department of AFL-CIO — that back the pipeline.
"There's always reason not to support something. But there's six major unions supporting it," Whitfield said.
A handful of big unions — including Service Employees International Union, the United Autoworkers, Communication Workers of America and the steelworkers — recently came out in favor in Obama's decision last month to reject it and significantly changed the political dynamic among unions.
To some extent, Democrats are successfully putting Republicans on the defensive. Language was included in offshore drilling legislation the House Natural Resources Committee approved last week that encouraged U.S.-based parts and equipment when practicable.
"It's mealy-mouth, wimpy language," Rep. John Garamendi (D-Calif.) told POLITICO. "It doesn't do anything, it doesn't require anybody to do anything."
Republicans said Garamendi was asking too much.
"The costs would increase, it could also significantly add further delays on top of an already slow process," said Spencer Pederson, spokesman for Natural Resources Chairman Doc Hastings. "In some cases, the stuff just doesn't exist."
Natural Resources Republicans defeated a couple of "Buy America" amendments Garamendi offered last week when the panel approved bills allowing oil and gas drilling in ANWR, vastly expanding federal waters open for drilling and requiring quick oil shale production out west.
Those bills will be lumped in with the Keystone bill in a broader energy and infrastructure package expected on the House floor next week.
The lone Republican amendment expected at Tuesday's Energy and Commerce markup further solidified the general understanding that the bill directs FERC to make a decision — in lieu of merely giving the independent body the power to do so.
It also further clarifies that no presidential permits are required and that construction of the pipeline outside of Nebraska — where an alternate route is being found — can begin right away. FERC would also need to enter into a memorandum of understanding with Nebraska officials within 30 days regarding that intrastate alternative route.
Energy and Commerce ranking member Henry Waxman called it "an unprecedented congressional earmark."
Republicans said it assures needed expediency after more than three years of federal review.
The panel defeated an eminent domain amendment from Rep. Bobby Rush (D-Ill.) that pushed the argument that TransCanada has been using eminent domain "to force American landowners along the route ... to give up their property rights" if they don't accept money from the company to bury the pipeline underneath, Waxman said.
Terry said landowners continue to use the land on top of a piece of the buried pipeline "so it's not pushing anyone off their land." TransCanada also has to play by the rules of each state's law, Republicans said.
This article first appeared on POLITICO Pro at 11:24 a.m. on February 7, 2012.
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