The State Department is expected to vote against the pipeline this afternoon. Transcanada will however be allowed to reapply with an alternate route going through Nebraska.
The project has been extremely controversial for two main reasons. Those in favor of the pipeline point to the 8.5% unemployment rate, and point out that the pipeline could create much-needed high-paying jobs.
Moreover, it would provide cash-strapped governments with tax revenues. On the other hand after the BP Deepwater spill of 2010 and ExxonMobil's July 2011 pipeline spill, environmentalists are pressuring the Obama administration to nip the project in the bud.