Senate GOP digs in on Keystone pipeline push

Senate Republican leaders on Friday joined their House GOP counterparts in demanding that any year-end payroll tax cut extension bill include provisions to expedite the Keystone XL oil sands pipeline.

Their position escalates the tension between President Obama and Senate Democratic leaders who oppose tethering the tax cut extension — a top White House priority — to the controversial pipeline.

House and Senate leaders say they are close to finalizing a payroll tax measure, but Republicans insist on keeping Keystone in the mix.

A spokesman for Senate Minority Leader Mitch McConnell (R-Ky.) said in an email Friday that McConnell “will not support any bill without the Keystone XL language as part of the agreement.”

Sen. John Cornyn (R-Texas) took to Twitter to make the same demand, proclaiming that “Keystone XL pipeline WILL be part of final tax package.”

Earlier Friday, House Speaker John Boehner (R-Ohio) told GOP lawmakers in a closed-door meeting that he would insist on the language requiring an expedited decision on TransCanada Corp.’s $7 billion project to bring Canadian sands to Gulf Coast refineries.

He said if the Senate sends the House a payroll tax bill that does not include the Keystone provision, the House will add it back in.

The Obama administration has delayed a decision on the project until after the 2012 elections.

President Obama has said he would “reject” a payroll tax cut measure that includes Keystone provisions, but White House press secretary Jay Carney stopped short of an explicit veto threat Thursday.

A number of centrist Democrats support the proposed pipeline. A senate aide said there are discussions underway on the issue but declined to characterize them.

Erik Wasson contributed.