Nebraska regulators on Monday morning approved an in-state permit for the Keystone XL oil pipeline, the last major regulatory hurdle facing the long-debated project.
The Nebraska Public Service Commission voted 3-2 in favor of the permit, but they rejected developer TransCanada’s preferred route, approving an alternative that would move the pipeline further east.
The ruling can be appealed to the state district court, with the Nebraska Supreme Court likely to have final say.
“As a result of today’s decision, we will conduct a careful review of the Public Service Commission’s ruling while assessing how the decision would impact the cost and schedule of the project,” said Russ Girling, TransCanada’s president and chief executive officer, in a statement Monday.
Jane Kleeb, founder of the anti-pipeline group Bold Nebraska and chairwoman of the Nebraska Democratic Party, said the commission’s decision represented a “win” because it did not approve TransCanada’s preferred route. But she vowed to appeal the decision.
“Anything other than them getting their preferred route was a big win for us,” Kleeb said.
The $8 billion Keystone XL pipeline would send oil from Canada’s Alberta oil sands to Steele City, Neb., and then on to refineries along the Gulf Coast. But it has been challenged by environmental advocates worried about spills and climate change.
Former President Barack Obama’s State Department considered the application for seven years before Obama rejected it in November 2015, a month before signing the Paris climate change agreement.
The Trump administration granted a permit for the pipeline in March, but it still needed approval by the five-member Nebraska Public Service Commission to be built in the state.
The original section of the Keystone pipeline system opened in 2010. Keystone XL would be an addition of 1,179 miles to the existing 2,687-mile network.
Supporters of Keystone XL, including many labor unions and business groups, consider the pipeline an economic boon that would create jobs and transport oil more safely than train or truck.
But it has hit more than a few snags over the years, with the Nebraska route especially presenting a challenge.
Nebraska delayed the project after saying several years ago that it required further study. Before that, former Republican Gov. Dave Heineman had persuaded the state legislature to enact legislation that would give him the final say in approving the pipeline. That landed the Keystone XL project in district county court, where the state law was deemed unconstitutional, blocking the pipeline’s approval.
Later, the Nebraska Supreme Court overruled the decision, removing another roadblock for the pipeline. But the court left the Public Service Commission in the driver’s seat on approving a new route to avoid water contamination concerns.
Climate change activists are vowing to continue fighting the project even after the Public Service Commission approved it.
Jason Disterhoft, senior climate campaigner at the Rainforest Action Network, said last week it will take the fight to the financial institutions that back TransCanada. The group plans to use a Dec. 15 deadline for the company to renew its loan obligations with major investment banks, putting pressure on the banks to end their business with the large Canadian energy company.
Environmental fears rose higher after last week’s 210,000-gallon oil spill at the existing Keystone pipeline in South Dakota, also owned by TransCanada.
The commission is not permitted legally to consider the risk of spills in its decision because pipeline safety is a federal responsibility.
The Keystone pipeline has had several leaks since it began operating in 2010. Since 2011, regulators have opened 13 enforcement cases against TransCanada.
