President Obama denied a Canadian company from building an oil pipeline through sensitive water supply in Nebraska.

Among those blasting President Obama’s decision to deny permission to build a massive, transnational oil pipeline is a conservative organization which has been described as “discreet” but highly influential.

The American Legislative Exchange Council (ALEC) says it is disappointed in Obama’s decision Wednesday to deny the application for the Keystone XL pipeline project. Obama says he denied the permit based on an unrealistically tight 60-day review period forced upon him last month by congressional Republicans.

The $7 billion pipeline has been highly controversial, both for its potential to damage water supply in Nebraska, as well as for apparent cozy corporate influence a key lobbyist has had with Secretary of State Hillary Clinton. The independent inspector general of the State Department had launched an investigation of the Obama administration’s handling of the review of the pipeline application. The president had wanted to put off a decision until 2013.

Administration approval was required because the pipeline would have crossed the U.S. border.

In a statement, ALEC says Obama’s position is “in direct opposition” to a resolution in support of the proposed 1,700-mile pipeline, which was approved earlier this month by ALEC’s Legislative Board of Directors.

“ALEC members understand that the Keystone XL project is vital to this nation’s energy security and is a much needed project that will bring jobs to the nation in a time of economic malaise,” says Todd Wynn, director of the Energy, Environment and Agriculture Task Force at ALEC.

ALEC has, for decades, quietly produced business-friendly “model” legislation for state legislators. These “model” bills have formed the basis of hundreds of pieces of legislation each year, and often end up as state law.

ALEC and its members say that they favor “federalism and conservative public policy solutions.”
Among its backers, ALEC counts Koch Industries, owned by the wealthy Koch brothers who are conservative activists who fund a variety of right-wing groups and causes.

Media attention given to ALEC has grown steadily over the last year as its influence has grown since receptive Republicans grew in clout following the 2010 elections.

You can read a guide to ALEC and its legislative influence online here.

Although the administration left the door open for the company pitching the pipeline to re-apply for permission, ALEC complains “this will cause several more years of delay and subsequent continued economic stagnation, specifically at a time when Americans are in dire need of job creation.”

ALEC cites high job-creation figures touted by many pipeline proponents, but which are higher than the number the pipeline company, TransCanada, had provided.

Scott Nance is the editor and publisher of the news site The Washington Current. He has covered Congress and the federal government for more than a decade.

The proposed Keystone XL pipeline would run through a sensitive aquifer in Nebraska.

The petroleum industry is pushing hard on President Obama to give the green light to a controversial transnational pipeline from Canada to the Gulf Coast.

The head of the oil and gas industry’s influential Washington lobby group, the American Petroleum Institute (API), is warning of political consequences should Obama deny approval for the 1,700-mile Keystone XL pipeline.

Congressional Republicans forced Obama to make a quick decision about the project as part of last month’s short-term compromise over extensions of a middle-class tax cut and unemployment benefits. The legislation requires the administration to make a determination within 60 days.

Obama came under fire after he announced he would put off a decision until 2013 following news that the State Department’s independent inspector general had launched an investigation into the process by which the $7 billion pipeline was being reviewed. Keystone XL needs State Department approval because it would cross the U.S. border. For approval, Obama must declare the pipeline to be in the “national interest.”

Opponents object to the pipeline because potential damage it could do to water supply in Nebraska. Further, many — including Sen. Bernie Sanders (I-Vt.) — oppose the project because emails have shown a cozy relationship between corporate lobbyists for the pipeline and Secretary of State Hillary Clinton.

Opponents have staged a number of high-profile protests against Keystone XL outside of the White House.

(A more detailed explanation of the Keystone XL pipeline and its controversies can be found online here.)

Jack Gerard, president of API, appeared on the energy-industry webcast On Point Wednesday, trying to make the case that the pipeline would create needed American jobs.

“It’s a real test on the part of the president. Is he for job creation or isn’t he? So I think there is consequence if he makes the wrong choice,” Gerard says. “I think he ought to do the right thing, approve the pipeline, let’s put our people to work and let’s make ourselves more energy self-sufficient.”

Although Gerard says the pipeline could create 20,000 new jobs, opponents say the actual number would be far fewer. Even TransCanada, the company pushing for the pipeline, has said the jobs created would be no more than 7,000.

Gerard blames the discrepancy on “the assumptions and the multipliers” used to calculate job creation. He also claims that the environmental issues, including water quality in Nebraska, “have been dealt with.”

The controversy over the pipeline has threatened to fracture the Democratic base. Environmentalists and activists against corporate influence vehemently oppose the project. However, labor unions — traditionally staunch allies of Obama and Democrats — appeared before a House Republican hearing to advocate for its approval based on the job-creation argument.

Gerard cited labor support as another reason for Obama to move forward.

“Organized labor already has a project labor agreement on this pipeline. The president’s constituency is strongly supportive of building this pipeline,” he says.

Scott Nance is the editor and publisher of the news site The Washington Current. He has covered Congress and the federal government for more than a decade.