You may recall us reporting about the Keystone XL oil pipeline proposal, that was part of the payroll tax cut extensions deal. To bring you up to speed, Congress attempted to include the Keystone oil pipeline project, with the payroll tax cut extensions.
Now the Keystone XL oil deal would drill oil from Canada, through the U.S., all the way to northern Texas. Many environmentalist have said, this would be harmful to the environment and suggested that, the pipeline deal shouldn’t be approved. President Obama said that he would not sign off on any deal that includes the Keystone XL oil deal. Congress then had a very public battle over the bill, before the holidays.
Republicans wanted the bill approved and extensions put in place for a year, as long as the Keystone deal was included. The Keystone XL deal had to be approved, because the project was set to begin 60 days after the bill was passed.
Democrats on the other-hand, wanted to two-month extension, in order to give the American people a sense of relieve during the holiday season. Democrats stated that they would return after the holidays and work out a deal. In the end, Congress approved a two-month extension of the payroll tax cuts, however the Keystone deal was not included with the temporary extension.
Now there is only one month left for the extensions, which means another battle is brewing in Congress. The Obama Administration announced that they will not approve the Keystone XL oil pipeline deal by the February deadline. This is sure to have Congress going back and forth. We will continue to follow this story, and report any new developments.