The company behind the Keystone XL pipeline announced Wednesday that it is suing the Obama administration over its rejection of the controversial tar-sands pipeline.
TransCanada has filed suit in a federal court, claiming that President Obama’s rejection of the project in November represented an “unprecedented exercise of Presidential power” and overstepped Congress’s power to regulate interstate and international commerce.
The company also said it will separately initiate a claim under the North American Free Trade Agreement to recover more than $15 billion in damages that the company says it suffered “as a result of the U.S. administration’s breach of its NAFTA obligations.”
President Obama in November rejected the pipeline after a seven-year review process, saying that its potential impact on climate change far outweighed any economic benefits. Coming just weeks before the opening of the United Nations climate talks in Paris, the White House framed the decision as a clear symbol to the rest of the world of the country’s climate leadership.
“Frankly, approving this project would have undercut that global leadership,” Obama said at the time. “And that’s the biggest risk we face—not acting.”