News yesterday that the Canadian company behind the proposed Keystone XL pipeline would begin construction on the first leg of the project elicited a benign response on Capitol Hill: Not much has changed.

Republicans and Democrats who back the proposed 1,700-mile Canada-to-U.S. pipeline applauded the Calgary-based TransCanada Corp.'s announcement that it intends to begin construction on the southernmost section of the pipeline, which would connect a huge crude oil hub in Cushing, Okla., to refineries in Houston, Texas.

Democrats who oppose the pipeline, however, said little has changed about the project.

"I don't have any new thoughts," Nebraska Sen. Ben Nelson (D) told E&E Daily when asked about the announcement.

The company does not need federal approval for the southern segment because state governments have jurisdiction as long as the pipeline doesn't cross federal land, the company said.

But TransCanada also said it will file a new application with the State Department to construct the $7 billion Keystone XL pipeline on a route that avoids the environmentally sensitive Ogallala Aquifer (Greenwire, Feb. 27). Obama rejected the pipeline in January facing stiff opposition from environmental groups.

Nelson, who supports the pipeline if it is routed around the aquifer, said the issue is a local, state issue.

However, he added, "the other side keeps throwing up these road blocks and getting it tied up in presidential politics."

Other Keystone XL backers attempted to paint the announcement as an important step forward.

Senate Environment and Public Works Committee ranking member James Inhofe (R-Okla.) said it is a sign that TransCanada "is not giving up on Keystone."

Inhofe said the announcement is "great news for Oklahoma" because it will create 1,200 jobs "immediately."

The Oklahoman again blamed President Obama for rejecting the pipeline, but the White House countered that attack by throwing its weight behind TransCanada's decision. In a statement, spokesman Jay Carney said the president "welcomes" the news.

"As the president made clear in January," Carney said, "we support the company's interest in proceeding with this project, which will help address the bottleneck of oil in Cushing that has resulted in large part from increased domestic oil production, currently at an eight year high."

Carney also indicated that the administration will review the new application for the full Keystone XL pipeline, turning the blame back at House Republican legislation for forcing the administration to prematurely make a decision on the project last month.

Democratic supporters of the pipeline teed off yesterday's announcement to again call for the full project to advance.

Montana Sens. Max Baucus (D) and Jon Tester (D), both backers of the pipeline, applauded the announcement and encouraged TransCanada to begin construction on a northern phase of the pipeline, from Baker, Mont., to Cushing.

"We urge you to move forward as soon as possible on construction for the Keystone XL pipeline from Baker, Mont., to Cushing, Okla.," the Democrats wrote to TransCanada CEO Russell Girling.

The pair also took a quick jab at the White House.

"The president's decision to delay a decision until 2013 was a missed opportunity we can ill-afford when we must be promoting an 'all of the above' approach to investing in our energy future."

The Cushing-to-Houston pipeline is anticipated to cost $2.3 billion. TransCanada wants that portion of the pipeline to be operational by mid- to late-2013.

Sen. Bernie Sanders (I-Vt.), an outspoken critic of the pipeline, again blasted it. Oil sands, he said, pose a substantial global warming threat. He also said TransCanada is "going to be very aggressive at every step of the way."

Click here to read Baucus and Tester's letter.