Dem Keystone support creates tougher fight for Reid, Obama

Republicans want to jam Senate Majority Leader Harry ReidHarry Mason ReidWhite House seeks to shield Biden from GOP attacks on crime issue Lobbying world Warner backing 'small carve-out' on filibuster for voting rights MORE (D-Nev.) on the Keystone oil sands pipeline and the Democratic leader will have a tough time resisting, given support within his caucus for the project.

GOP leaders have made clear to Reid that they will not approve an extension of the payroll tax holiday unless it includes language to speed up construction of the pipeline.

Senate Republicans estimate as many as 14 Senate Democrats support the project. Labor unions have also voiced strong backing, complicating Reid’s endgame talks with GOP leaders.

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“I personally think the pipeline is absolutely in the national interest. It’ll help us reduce our dependence on foreign energy, at least foreign sources that are hostile to our interests,” Senate Budget Committee Chairman Kent Conrad (D-N.D.) said on the Senate floor Wednesday. “I, for one, on this side would hope that this could be part of a final package.”

Sen. Mary LandrieuMary Loretta LandrieuCassidy wins reelection in Louisiana Bottom line A decade of making a difference: Senate Caucus on Foster Youth MORE (D-La.) said Thursday the pipeline has more support among Democrats than her leaders acknowledge.

“It’s always had more Democratic support than people thought,” she said.

Sen. Jon TesterJonathan (Jon) TesterDemocrats say they have the votes to advance .5T budget measure The Hill's Morning Report - Presented by Facebook - A huge win for Biden, centrist senators Senate votes to take up infrastructure deal MORE (D-Mont.) said on the Senate floor Tuesday: “I am proud to again offer my support for the Keystone XL pipeline and the jobs it will create. We need a quicker decision, based on the merits of this project.”

House Speaker John BoehnerJohn Andrew BoehnerGOP up in arms over Cheney, Kinzinger Freedom Caucus presses McCarthy to force vote to oust Pelosi Stripping opportunity from DC's children MORE (R-Ohio) told House GOP colleagues Friday morning he would force the Senate to vote on expediting Keystone by attaching it to the bill that Senate leaders are crafting on a two-month extension of the payroll tax holiday and unemployment benefits.

Republicans say they will also insist on including Keystone in a yearlong extension of the payroll tax holiday, unemployment benefits and a one-year freeze in scheduled cuts to Medicare reimbursements.

Republican leaders see it as a juicy political issue to use against President Obama. If Democrats block it, it reinforces the GOP message that the administration’s regulatory agenda slows job growth.

Senate Republican Leader Mitch McConnellAddison (Mitch) Mitchell McConnellAn August ultimatum: No recess until redistricting reform is done After police rip Trump for Jan. 6, McCarthy again blames Pelosi The Hill's 12:30 Report - Presented by Facebook - US gymnast wins all-around gold as Simone Biles cheers from the stands MORE (R-Ky.) said Friday afternoon that he and BoehnerJohn Andrew BoehnerGOP up in arms over Cheney, Kinzinger Freedom Caucus presses McCarthy to force vote to oust Pelosi Stripping opportunity from DC's children MORE would not agree to any package extending the payroll tax holiday that did not include the Keystone language.

“There’s bipartisan support for this project and we need to get it done. We need to get it done now,” McConnell said. “The House of Representatives has been quite clear that they’re not going to support a package that does not include the pipeline. Frankly, I will not be able to support a package that doesn’t include the pipeline.”

McConnell said White House officials want to separate the Keystone pipeline from the payroll tax holiday and unemployment benefits but that it makes no sense to treat it in standalone legislation.

“Let’s also include something that actually helps the private sector create the jobs Americans need for the long term,” he said.

Sen. John CornynJohn CornynSenate votes to take up infrastructure deal Biden officials pledge to confront cybersecurity challenges head-on Eight Republicans join Democrats to confirm head of DOJ environmental division MORE (R-Texas) took to Twitter to make the same demand, proclaiming that “Keystone XL pipeline WILL be part of final tax package.”

At his briefing, White House press secretary Jay Carney again criticized Republicans for inserting the “extraneous” pipeline issue into the bill, and said the State Department review process should be able to run its course. 

However, Carney declined to rule out the White House accepting a bill with Keystone provisions. “I am not going to prejudge a final product that does not yet exist,” Carney said.

Carney rejected the notion that the president's opposition to the Keystone language is political.

"What he has said is that there are criteria that must be considered...You can't approve something before you have something to review. This is a process run by the State Department...that process needs to be reviewed," Carney said. "Again, the president is not making a judgment on whether the permit should or should not be granted. But what it shouldn't be is short-circuited because folks think it ought to be. That's what that review process is all about."

State is the agency charged with the review of Keystone, and it has said it would have to reject Keystone if the House language is approved because it would not have to do a sufficient review. 

Senate Republican aides say Democratic Sens. Claire McCaskillClaire Conner McCaskillGiuliani to stump for Greitens in Missouri McCaskill shares new July 4 family tradition: Watching Capitol riot video Joe Manchin's secret MORE (Mo.), Max BaucusMax Sieben BaucusCryptocurrency industry lobbies Washington for 'regulatory clarity' Bottom line Bottom line MORE (Mont.), Ben Nelson (Neb.), Mark BegichMark Peter BegichAlaska Senate race sees cash surge in final stretch Alaska group backing independent candidate appears linked to Democrats Sullivan wins Alaska Senate GOP primary MORE (Alaska), Joe ManchinJoe ManchinTop Democrat: 'A lot of spin' coming from White House on infrastructure An August ultimatum: No recess until redistricting reform is done Democrats say they have the votes to advance .5T budget measure MORE (W.Va.), Mark PryorMark Lunsford PryorBottom line Everybody wants Joe Manchin Cotton glides to reelection in Arkansas MORE (Ark.), Kay HaganKay Ruthven HaganInfighting grips Nevada Democrats ahead of midterms Democrats, GOP face crowded primaries as party leaders lose control Biden's gun control push poses danger for midterms MORE (N.C.), Mark WarnerMark Robert WarnerDemocrats join GOP in pressuring Biden over China, virus origins Senators say they have deal on 'major issues' in infrastructure talks On The Money: Senate infrastructure talks on shaky grounds | Trump tells Republicans to walk away | GOP sees debt ceiling as its leverage against Biden MORE (Va.), Debbie StabenowDeborah (Debbie) Ann StabenowFormer longtime Sen. Carl Levin dies at 87 Energy chief touts electric vehicle funding in Senate plan Senate passes bill to award Congressional Gold Medal to first Black NHL player MORE (Mich.) and Bob CaseyRobert (Bob) Patrick CaseySenate Democrats press administration on human rights abuses in Philippines Biden celebrates anniversary of Americans with Disabilities Act Lawmakers introduce bipartisan Free Britney Act MORE (Pa.) also support the Keystone language.

“All the trade unions, everyone’s for it, it creates thousands of jobs,” Manchin said on Fox News earlier this week.

Several Republican senators who are skeptical about the effectiveness of cutting payroll taxes to stimulate the economy say the Keystone pipeline gives them an important reason to vote for it.

Labor leaders have pushed Democratic leaders to concede on the pipeline, which is strongly opposed by environmentalists.

“Throughout America's Heartland, the Keystone Pipeline represents the prospect for 20,000 immediate jobs, and as many as 500,000 indirect jobs via a strong economic multiplier effect,” Mark Ayers, president of the Building and Construction Trades Department of the AFL-CIO, wrote in an opinion piece published by The Huffington Post last month.

Speaking about the ongoing negotiations on the payroll tax bill, Carney said, "There's a process at work. I'm not going to analyze what language would be acceptable and what wouldn't."

He said the president's primary focus is in getting the payroll tax bill passed.

"I'm not going to get ahead of the process," Carney said. "The president's priority is ensuring that Americans do not get that tax hike ... it's vital to the economy."


Ben Geman and Amie Parnes contributed to this report. 


This story was posted at 2:07 p.m. and was updated at 4:08 p.m.