Climate advocates are hopeful that Obama will deny the permit for TransCanada, the Canadian energy company behind the pipeline. The Nebraska Supreme Court decision means that the Keystone XL will still cross a very vulnerable part of the Ogallala Aquifer, the United States' most heavily used aquifer that supplies about 30 percent of the groundwater pumped for irrigation nationwide and the drinking supply for nearly 2 million Americans.
Opponents of the pipeline also argue Keystone XL doesn't pass Obama's "climate test," an idea he first introduced in 2013, when he said he would only approve the project if it didn't significantly exacerbate climate change.
In its final 2014 environmental impact statement on the project, the State Department found that the Keystone XL would have little effect on carbon pollution, because, it reasoned, with or without the pipeline Canada's tar sands oil production would increase. But a market analysis in that statement also acknowledged that if oil prices went below $75 for a long time, the Keystone XL would become a crucial factor for expanding the tar sands enterprise and enable a significant increase in emissions of greenhouse gases. Oil prices are around $48 per barrel.
"This [Nebraska] ruling has no impact on the fact that the Keystone XL tar sands pipeline fails President Obama’s climate test, threatens our water, and is a bad deal for the American people," Tiernan Sittenfeld, senior vice president of government affairs for the League of Conservation Voters, said in a statement. "We remain more confident than ever that he will reject this dirty and dangerous pipeline once and for all, and with today's Nebraska decision behind us, we urge him to do so as quickly as possible,"
The White House announced on Friday the State Department is examining the Nebraska Supreme Court’s decision as part of its national determination study. "As we have made clear, we are going to let that process play out," said White House principal deputy press secretary Eric Schultz.
Read more at Showdown Between Obama and Congress over Keystone XL Accelerates After Court Ruling
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