U.S. EPA Questions Need for Cross-Border Oilsands Pipeline

"A major U.S. government agency has thrown up a new political roadblock for a $12-billion TransCanada Pipelines project by questioning the need for a new pipeline to carry bitumen from Alberta's oilsands to American refineries.

Documents released by the U.S. Environmental Protection Agency harshly criticize a draft environmental impact statement for the Keystone XL project. They say the assessment doesn't consider how importing more oilsands oil would affect U.S. climate change policies. Nor does the review examine how renewable energy and fuel-efficient vehicles could reduce the need for such oil.

"The draft ... does not provide the scope or detail of analysis necessary to fully inform decision-makers and the public," says a letter to officials at the U.S. State Department, which conducted the impact assessment.

The agency gave the State Department's assessment its lowest possible rating of "inadequate.""

Bob Weber reports for the Canadian Press July 21, 2010.