16 Republican AGs urge Biden to reauthorize the Keystone XL pipeline

Attorneys general in at least 16 Republican-led states have urged the Biden administration to reauthorize the Keystone XL pipeline project, warning that his decision to revoke the Trump-era permit has contributed to soaring fuel costs and prevented the United States and its allies from gaining energy independence from Russia following its illegal invasion of Ukraine.

"Clear the administrative path for the pipeline's development, rescind your revocation of Keystone XL's 2019 Presidential Permit, and provide regulatory certainty to companies willing to build this vital, arterial pipeline," the attorneys general wrote in a letter to Biden. "Recent events have made it strikingly obvious that more domestic energy development is needed to prevent future economic hardship for Americans."

Following through on a campaign promise, Biden revoked the $9 billion pipeline’s permit on his first day in office – halting plans to transport hundreds of thousands of barrels of oil from Canada to the United States, Fox Business reported.

But as gas prices continue to rise around the country, Montana’s Attorney General Austin Knudsen has led the GOP’s efforts to convince the president to change course.

“We warned you then if your decision was not reversed, Americans would ‘suffer serious detrimental consequences,’ consumers would pay higher prices, and our allies would become further dependent on Russian and Middle Eastern oil,” the attorneys general wrote in a letter sent Monday. “We hate to say we told you so.”

According to a report from the Daily Wire, Biden’s cancellation of the 1,200-mile-long pipeline may have destroyed thousands of jobs, keeping Americans from working as inflation continues to drive consumer prices to historic highs. According to newly released federal data, the Producer Price Index, an inflation measurement for wholesale producers, spiked 11.2% annually from March 2021 to March 2022. Similarly, the Consumer Price Index, which tracks consumer inflation, reached its highest levels in 41 years in recent weeks.

“We’re seeing 50 plus percent increases in the price of gasoline,” Knudsen told The Daily Wire in an interview. “I don’t care if you’re in Montana or if you’re in Virginia. Everybody bears that cost and that hurts. Fuel is what drives our economy and we have to be able to drive our vehicles. We have to be able to heat our homes.”

Republican lawmakers also argued that the Biden administration’s unwillingness to resume the pipeline project – and instead import oil from Canada -- has left European countries “unable” to levy sanctions on Russia without risking an economic recession.

Last year, TC Energy, the company in charge of the project, filed a $15 billion trade claim against the federal government – filing a formal request for arbitration for what it has alleged is a “breach” of the former North American Free Trade Agreement (NAFTA.)

Referencing a portion of Executive Order 13990 – which aims to reduce “climate pollution” and the suspension of rain tank cars being able to transport liquified natural gas – the Republican AGs blasted Biden’s “excessive regulations” for raising energy costs for Americans.

Knudsen said that while “leases are available” to companies it is clear that the administration has “made the terms so unfavorable” and implemented further regulations that hamper production.

“Your decisions, however, have stripped Americans of the manifold benefits the Keystone XL pipeline would deliver—jobs, tax revenue, and new and sustained economic opportunities,” the attorneys general wrote.

“There is no end in sight to the painfully high energy costs or inflation that Americans are now enduring because of your failed policies,” they added. “Stop the quiet conversations with foreign powers and oligarchs.  The solutions are right here at home.  On behalf of the citizens of our states, we demand you immediately take the actions outlined above to reverse the damage you have done and provide relief for struggling families and businesses.”

The letter was co-signed by Steve Marshall of Alabama, Treg R. Taylor of Alaska, Mark Brnovich of Arizona, Leslie Rutledge of Arkansas, Ashley Moody of Florida, Todd Rokita of Indiana, Jeff Landry of Louisiana, Lynn Fitch of Mississippi, Eric Schmitt of Missouri, John O’Connor of Oklahoma, Alan Wilson of South Carolina, Ken Paxton of Texas, Sean Reyes of Utah, Patrick Morrisey of West Virginia, and Bridget Hill of Wyoming.