Never mind Solyndra. That pufffed up bit of White House political interference in agency determinations is small potatoes compared to what the U.S. State Department is doing to corrupt the environmental evaluation of the Keystone XL Pipeline project.
Brad Johnson at Think Progress reported yesterday that the State Department has farmed out critical agency functions regarding the environmental review to a private contractor that also contracts with TransCanada. TransCanada is one of the Keystone XL pipeline sponsors and the applicant for the permit the project must obtain from the State Department. That should cause a scandal.
The contractor, Cardno ENTRIX boasts on its website that it was contracted by TransCanada to assist the State Department in preparing the Environmental Impact Statement (EIS) and is also managing the EIS process and, shockingly, the public hearings on the EIS for the State Department.
Let’s step back and talk about the role of the EIS. Under the National Environmental Policy Act (NEPA) every federal agency considering a major “action” — such as approval of an application to build something (e.g. a 1,700 mile pipeline) — that may have a significant impact on the environment must first fully assess those impacts, consider alternatives to the project that would mitigate or avoid any adverse impacts, and propose mitigation measures to mitigate or avoid such impacts.
A project can be turned down because of the EIS findings, and an agency’s “action” — the decision approving the project — can be reversed in court for failing to prepare an adequate EIS or give it adequate consideration. After preparing the EIS, the agency must fully consider the EIS throughout its approval process, so that environmental concerns are adequately addressed and mitigated in any final decision the agency makes. That’s the law.
Over 30 years of federal litigation has established that the agency must perform these functions in a competent, independent manner. It can’t ignore or dismiss environmental concerns, and it can’t accept and rubber stamp a draft EIS prepared by the applicant. It can contract out the job of preparing the EIS, but the contractor must be accountable to the agency, not the project applicant. And if the applicant provides information, studies, or drafts for the agency’s EIS, the agency still has an obligation to independently verify the information and studies rather than simply assume they are professionally prepared, accurate or unbiased. That’s also the law.
The federal government is engaged in thousands of “actions” that might have an impact on the environment, and so agencies must prepare thousands of environmental impact statements. Over the years, a large cottage industry of consulting firms and contractors has sprung up to perform this work for the government. Many of them are highly competent. Others not so much.
But ultimately, the government agency itself is responsible for the integrity and thoroughness of the EIS. And the agency itself is also responsible for conducting its internal and public review processes, including public hearings, in a manner that fully considers the EIS at every step of the agency’s decision making process. That’s also the law.
The United States Department of State seems to be having trouble following the law. It’s not a problem for it to contract out the job of preparing the draft EIS, provided the contractor is not also a paid consultant for the applicant. In this case, the contractor boasts that it has been under contract to the applicant. How was that conflict resolved?
Farming out the conduct of public hearings is equally problematic. The point of having the EIS available for public hearings, and then accepting public comments on the EIS, is to ensure that those agency officials directly involved in the decision making process — and they can be staff and/or counsel who directly advise the ultimate decision maker — fully considered the EIS in the decision making process. So this is a function that should never be farmed out, let alone to a contractor that’s also contracted to the project applicant.
The State Department needs to clean up its act. It has already issued an EIS that blatantly ignores or downplays the most important environmental concerns with the Keystone XL Pipeline project, so its final EIS is already legally vulnerable. The hearing process may be even more so.
State Department employees, with no connection to the applicants, and who will be advising the Secretary of State when she makes the decision, need to be running the public hearings. They need to hear the public comments. And they need to ensure that as the decision-making process goes forward, the EIS is fully considered at every step. It’s the law.
We live in lawless times. The Administration’s record in upholding the rule of law is shoddy. But if the State Department doesn’t obey the law, well maybe there’s still an honest court left that will reverse the decision when Hillary Clinton makes the predetermined decision she’s already said — in another blatant violation of NEPA — she’s inclined to make.
John Chandley, Tarsands 65
Update: Looks like the hearing in Austin yesterday didn’t go as planned.




16 Comments

this squalid dog and pony show impresses no one
we know the score: the fix is in
i’ll say it once again: they will approve this environmental abomination and they will begin construction but this pipeline will NEVER operate
The PTB have become so used to us either not paying attention or not being informed by the press of their actions that they assume they can get away with this sort of thing. I think it is essential that we impress upon them that is no longer the case.
The inter-tubes are AWESOME!
Thanks for writing this, Scarecrow. A firm I used to work for used to do NEPA work, so I was trying to think through how this differed from what we did (I was going to ask you to explain it).
Doesn’t this mean there should be means to sue on NEPA grounds?
ALso, I’d love to see you do a post recalling how crappy the NEPA process has gotten on deepwater drilling and the kind of problems that result when you do this–such a reminder might be a useful object lesson.
Hi, Marcy. Yeah, they are setting themselves up for legal challenge on multiple grounds. But agencies tend to do what they can get away with, and my impression is that today’s courts are less demanding wrt NEPA compliance than they use to be when I was still an agency counsel. Been 15 years. I wrote my agency’s procedural rules back in ’77, and we would never have tolerated this. CEQA is the California equivalent of NEPA. Didn’t need a court to tell us to obey. That was then.
The key to the drilling experience is that the law allows categorical exemptions, IIRC, and somehow, after so many permits were issued, they got one for all those permits. Just routine, non risk actions . . . Except the ones that devastate much of the Gulf. Logic and facts are weak warriors against millions in campaign dollars.
This is letting the Fox defend the Hen House!! Are we feasting yet???
excellent post scarecrow – rec’d
The last ten years are different from the 20 that went before, I think. To borrow from AGAG, who had a sizable hand in reshaping the federal bench under Dubya, “that’s the law” is a quaint idea.
Logic and facts were in short supply in DC between 2001 and 2009, and the deficit is still present.
I hope this post goes viral.
Excellent reporting. Thanks. This is shockingly blatant corruption
So is this Obama prepping the groundwork for complaining that the approval decision is somehow out of his hands and he “really,” has no choice but to grant permit approval?
And the head of the State Department is …….. Hillary “The Hawk” Clinton, who espouses and supports neo-con and neo-liberal policies that almost make Obama look like a moderate. If anyone voices support for this corporate whore on FDL please refer them to this article.
well nothing new here, everything is on schedule so please move along;)
Maybe this should be on the “LIST” at Occupy Wall Street!
I do NEPA, been doing it for 20 years in various capacities. You are right, it has changed quite a bit. For EISs, the EPA gets to review, and weigh in on accuracy and validity of the document. This includes the analysis and support of the impact analysis. Unfortunately, they are subject to some political meddling too.
The contractor having done work for the applicant doesn’t smell good, but isn’t uncommon.
There are always the courts, lawsuit. Except courts usually give weight to the agency’s technical analysis. The overlap in relationships could raise suspicions. Also, the State Department isn’t well versed in pipelines, have they a cooperating agency?
I agree with Scarecrow’s post and I hope the pipeline permit is not approved. But I’m not too sanguine about the prospects of any legal challenge. The Alberta Clipper Tar Sands Pipeline which the State Department approved in 2009 (after construction has already started) was challenged in federal court based on a seemingly ironclad argument that the project had been illegally segmented. The federal court rejected every single argument and approved the permit and the EIS as adequate. I see the same thing happening here. The judiciary has become much less open to environmental challenges to permit issuances. There may be some different environmental issues with this pipeline in that it is crossing the Oglala Aquifer that may have traction. But the greenhouse gas/climate change argument, as much as it seems like a no brainer (it seems so to me), is a nonstarter for the power brokers who approve this shit.