	Introduction

The proposed Keystone XL pipeline has received considerable attention in recent months. If constructed, the pipeline would transport crude oil (e.g., synthetic crude oil or diluted bitumen) derived from oil sands resources in Alberta, Canada, to refineries and other destinations in the United States. Although some groups have raised concerns over previous oil pipelines—Alberta Clipper and the Keystone mainline pipelines, both of which are operating—the Keystone XL proposal has generated substantially more interest among environmental stakeholders. Some raise concerns about potential local impacts, such as oil spills. Arguments supporting the pipeline's construction also cover a range of issues. Proponents of the Keystone XL Pipeline, including high-level Canadian officials and U.S. and Canadian petroleum industry stakeholders, base their arguments supporting the pipeline primarily on increasing the security and diversity of the U.S. petroleum supply and economic benefits, especially jobs. This report focuses on selected environmental concerns raised in conjunction with the proposed pipeline and the oil sands crude it will transport. Moreover, many of the environmental concerns are not unique to oil sands. That segment did not require a permit from DOS because it does not cross a U.S. border. In this context, emissions intensity means GHG emissions per units of production (e.g., barrels). Other stakeholders, including the Alberta government and industry associations, argue that this conclusion is overstated, asserting that GHG emissions from oil sands crude oil are comparable to some other global crudes, some of which are produced and/or consumed in the United States. Climate Change Concerns

During a June 2013 speech, President Obama stated that an evaluation of the "net effects of the pipeline's impact on our climate" would factor into the State Department's national interest determination in order to determine if the project would "significantly exacerbate the problem of carbon pollution." The 2014 FEIS finds the following:
the GHG emissions released during the construction period for the project would be approximately 0.24 million metric tons of carbon dioxide equivalents (MMTCO 2 e) due to land use changes, electricity use, and fuels for construction vehicles (equivalent to 0.004% of U.S. annual GHG emissions); the GHG emissions released during normal operations would be approximately 1.44 MMTCO 2 e/year due to electricity use for pumping stations, fuels for maintenance and inspection vehicles, and fugitive emissions (equivalent to 0.02% of U.S. annual GHG emissions); the total, or gross, life-cycle GHG emissions (i.e., the aggregate GHG emissions released by all activities from the extraction of the resource to the refining, transportation, and end-use combustion of refined fuels) attributable to the oil sands crude transported through the proposed pipeline would be approximately 147 to 168 MMTCO 2 e per year (equivalent to 2.2%-2.6% of U.S. annual GHG emissions); the incremental, or net, life-cycle GHG emissions (i.e., GHG emissions over-and-above those from the crude oils expected to be displaced in U.S. refineries) is estimated to be 1.3 to 27.4 MMTCO 2 e per year (equivalent to 0.02%-0.4% of U.S. annual GHG emissions); but according to the State Department's market analysis, "approval or denial of any one crude oil transport project, including the proposed project, is unlikely to significantly impact the rate of extraction in the oil sands or the continued demand for heavy crude oil at refineries in the United States based on expected oil prices, oil-sands supply costs, transport costs, and supply-demand scenarios." Some stakeholders have questioned many of the conclusions in the 2014 FEIS and argue that the project may have greater climate change impacts than the DOS projects. They contend that there is nothing presumed or inevitable about the rate of expansion for the Canadian oil sands. They argue that as long as there is strong global demand for petroleum products, resources such as the Canadian oil sands will be produced and shipped to markets using whatever route necessary. Oil Sands Crudes and Pipeline Spills

Some environmental groups have argued that the pipeline would pose additional oil spill risks due to the material being transported. Other organizations, including Canadian agencies, questioned these conclusions. Although location is generally considered the most important factor, EPA stated (in comments during the EIS process) that spills of oil sands crude (e.g., DilBit) may result in different impacts than spills of other crude oils. Oil Sands Extraction Concerns

Although local/regional impacts from Canadian oil sands development may not directly affect public health or the environment in the United States, stakeholders often highlight the environmental impacts that pertain to the region in which the oil sands resources are extracted.
If constructed, the Keystone XL pipeline would transport crude oil derived from oil sands sites in Alberta, Canada, to U.S. refineries and other destinations. Because the pipeline would cross an international border, it requires a Presidential Permit.
Although some groups have opposed previous oil pipelines, opposition to the Keystone XL proposal has generated substantially more interest. Stakeholder concerns vary from local impacts, such as oil spills or extraction impacts in Canada, to potential climate change consequences.
Arguments supporting the pipeline's construction cover an analogous range. Proponents of the Keystone XL Pipeline, including high-level Canadian officials and U.S. and Canadian petroleum industry stakeholders, base their arguments supporting the pipeline primarily on increasing the security and diversity of the U.S. petroleum supply and economic benefits, especially jobs.
A number of studies have looked into the various environmental impacts of oil sands crude. This report focuses on selected environmental concerns raised in conjunction with the proposed pipeline and the oil sands crude it will transport.
Greenhouse Gas Emissions
Key studies indicate that the average greenhouse gas (GHG) emissions intensity—metric tons of GHG emissions per units of production (e.g., barrels)—of oil sands crude is higher than many other crude oils. However, industry stakeholders point to analyses indicating that GHG emissions from oil sands crude oil are comparable to other heavy crudes, some of which are produced and/or consumed currently in the United States.
Due to oil sands' increased emissions intensity, many stakeholders have voiced concern about potential climate change consequences associated with oil sands development. In June 2013, President Obama stated that an evaluation of the "net effects of the pipeline's impact on our climate" would factor into the Department of State's (DOS's) national interest determination in order to determine if the project would "significantly exacerbate the problem of carbon pollution." Thus, DOS's 2014 Final Environmental Impact Statement (FEIS) has received considerable attention. Among other conclusions, the FEIS estimated that the incremental (i.e., net) life-cycle GHG emissions associated with the pipeline would be 1.3 million to 27.4 million metric tons of carbon dioxide per year (0.02%-0.4% of U.S. annual GHG emissions). In addition, the FEIS stated that the "approval or denial of any one crude oil transport project, including the proposed project, is unlikely to significantly impact the rate of extraction in the oil sands or the continued demand for heavy crude oil at refineries in the United States based on expected oil prices, oil-sands supply costs, transport costs, and supply-demand scenarios."
Some stakeholders have questioned these conclusions, arguing (1) that the project may have greater climate change impacts than projected by DOS, and (2) that there is nothing presumed or inevitable about the rate of expansion for the Canadian oil sands. Other stakeholders support the FEIS analysis, arguing that as long as there is strong global demand for petroleum products, resources such as the Canadian oil sands will be produced and shipped to markets using whatever route necessary.
Oil Spills and Other Local Impacts
Some groups have argued that both the pipeline's operating parameters and the material being transported through it impose an increased spill risk. The National Academy of Sciences National Research Council examined this issue in a 2013 report, stating that it did not "find any causes of pipeline failure unique to the transportation of diluted bitumen [oil sands crude]." However, according to the Environmental Protection Agency (EPA), spills of oil sands crude may result in different impacts than spills of other crude oils.
Other environmental concerns pertain to the region in which the oil sands resources are extracted. Potential impacts include, among others, wildlife and ecosystem disturbance and water resource issues. In general, these local/regional impacts from Canadian oil sands development are unlikely to directly affect public health or the environment in the United States. Within the context of a Presidential Permit, the mechanism to consider local Canadian impacts is unclear.