Overnight Energy & Environment: Did EPA just give Obama 'cover' for Keystone decision?

THE GIFT THAT KEEPS ON GIVING: If you thought you were done with Keystone, think again. Not only did the House say it will vote on the Senate's version of legislation to approve the $8 billion oil sands project, but the Environmental Protection Agency waded into the fray on Tuesday. America is now the world’s #1 natural gas producer and will soon be #1 in oil. Now more than ever, abundant energy means abundant prosperity, opportunity and security for all Americans. Learn more atEnergyTomorrow.org. SPONSOR-GENERATED CONTENT In its comments on the State Department's final environmental impact review, the EPA questioned the limited impact the department said Keystone would have on climate change. The State Department's conclusion "was based in large part on the projections of the global price of oil," EPA said. But with the recent 8-month decline in crude oil prices, EPA says the dynamics have changed. If oil prices remain low, building Keystone would increase oil sands production and greenhouse gas emissions, EPA said. In its conclusion, EPA handed a small but key victory to greens who have long argued that Keystone would fail President Obama's climate test. Sen. John Hoeven (R-N.D.) said the agency gave cover for the president to make what decision he wants to make." Read more here. Got transparency? Keeping the Keystone momentum going, the State Department just closed its comment period for agencies that were asked to weigh in on the national interest determination for Keystone. The State Department is sticking to its guns, arguing the comments are part of an "internal" review process and will not be released to the public. So far, The Hill knows that the Energy Department, EPA, and Interior submitted comments on whether they think the pipeline is in the nation's best interest. Still, a reporter got testy with State Department spokeswoman Jen Psaki on Tuesday over the comments and if the department would confirm how many agencies submitted them. Here's the exchange:  Reporter: "What happened to this transparency idea? I don’t get – I’m not asking what’s in the report. If an agency – what’s in the – if an agency wants to put their own report out, not – and make it public, that’s fine." Psaki: "Well, just to be clear, the EPA didn’t put their recommendations out publicly. They put out their views on the final [environmental impact statement]. It’s something different, but that’s an important distinction." Reporter: "When you say 'internal process,' okay, that really means secret and nontransparent, correct?" Psaki: "I don’t agree with that. A great deal of information here is public, Matt. Just because we’re not making public internal input that we received..." HOW THE SENATE VOTED CLIMATE CHANGE IS REAL: The Hill has the inside details on how the Senate voted 98-1 that "climate change is real and not a hoax" this past month. It involved notecards from Sen. Jim Inhofe (R-Okla.), the Senate's staunchest climate skeptic. They were distributed just minutes before the vote, calling on his Republican colleagues to vote "yes" on the controversial amendment to the Keystone XL bill. Author of the measure, Sen. Sheldon Whitehouse (D-R.I.), said voters won't be fooled by Inhofe's "trick" and hopes to chip away at the GOP position on the issue. Read more here. HE HAS EPA IN HIS CROSSHAIRS: House Oversight Committee Chairman Rep. Jason Chaffetz (R-Utah) told The Hill that one of his top priorities will be to fight the Environmental Protection Agency (EPA), whose leaders have been "the poster children" of federal waste, fraud and abuse. Chaffetz is happily picking up where Rep. Darrell Issa (R-Calif.) left off, on a mission to show that cases like that of fake CIA agent John Beale are just the tip of the EPA’s management and overregulation issues. "They’ve had significant, ongoing personnel issues, not isolated to just one or two people," he said. Read more about Chaffetz’s plans here. WEDNESDAY'S AGENDA:  Committees from the House and Senate will get together for a rare joint hearing on the Environmental Protection Agency’s (EPA) "waters of the United States" rule to redefine the waterways that its jurisdiction covers. The Senate Environment and Public Works Committee and the House Transportation and Infrastructure Committee will co-host the hearing on the rule that was proposed last March and is due to be finalized this spring. Lawmakers will hear from EPA head Gina McCarthy, Army Corps of Engineers head Jo-Ellen Darcy and representatives of state and local governments. A bipartisan group of lawmakers will hold a press conference to discuss reforming the renewable fuel mandate, which dictates how much ethanol must be blended into the nation's fuel supply. Reps. Peter Welch (D-Vt.), Bob Goodlatte (R-Va.), and Jim Costa (D-Calif.) will participate. Energy Secretary Ernest Moniz will speak at the 2015 Energy Policy Outlook Conference hosted by the National Association of State Energy Officials. NEWS BITE: Sen. Lisa Murkowski (R-Alaska) met with Alberta Premier Jim Prentice and Canadian Ambassador Gary Doer on Tuesday. The trio talked about Keystone XL, North American energy security and the state of U.S.-Canada relations. AROUND THE WEB: West Virginia Gov. Earl Ray Tomblin (D) signed into law Tuesday a bill to repeal the state’s alternative and renewable energy mandate, the West Virginia State Journal reports. A state oil and gas task force in Colorado might recommend new regulations for hydraulic fracturing, the Longmont Times-Call reports. IN CASE YOU MISSED IT: Check out Tuesday's stories... - Senators sponsor bill to extend conservation fund - Greens target parents in smog ads - Watchdog: EPA still interfering with investigations - EPA hands ammunition to Keystone XL foes - House vote on Keystone approval set next week - Major Chinese cities failing on air quality - Striking refinery workers restart negotiations - Inside the Senate's big vote on whether climate change is real - Oversight chairman takes aim at EPA Please send tips and comments to Laura Barron-Lopez, laurab@thehill.com, and Timothy Cama, tcama@thehill.com. Follow us on Twitter: @thehill @lbarronlopez @Timothy_Cama