Obama, Congress Begin 2012 in Keystone XL Pipeline Dispute

President Barack Obama and Congress are starting the election year locked in a tussle over a proposed 1,700-mile oil pipeline from Canada to Texas that will force the White House to make a politically risky choice between two key Democratic constituencies.

Some unions say the Keystone XL pipeline would create thousands of jobs. Environmentalists fear it could lead to an oil spill disaster.

A law Obama signed just before Christmas that temporarily extended the payroll tax cut included a Republican-written provision compelling him to make a speedy decision on whether to build the pipeline. The administration is warning it would rather say no than rush a decision in an election year.

It's a dicey proposition for Obama, who enjoyed strong support from both organized labor and environmentalists in his winning 2008 campaign for the White House.

Environmental advocates, already disappointed with his failure to achieve climate change legislation and the administration's decision to delay new smog standards, have made it clear that approval of the pipeline would dampen their enthusiasm for Obama in the upcoming November election.

(More on politics behind Keystone XL pipeline . . . )

 

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