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Washington President Obama rejected a bill that would approve the controversial Keystone XL pipeline Tuesday, issuing the third veto of his presidency to block a Republican-led effort to accomplish one of the GOP's top priorities.

Republicans lack the votes to override his veto, but the fight over Keystone is far from over and what happens next is anyones guess. Thats because Mr. Obamas veto did not reject the pipeline outright; rather, it allows the president to retain decisionmaking authority over the $8 billion project, which requires a green light from the State Department because it crosses the US-Canada border.

"[B]ecause this act of Congress conflictswith established executive branch procedures and cuts shortthorough consideration of issues that could bear on ournational interest -- including our security, safety, andenvironment -- it has earned my veto,"Obama wrote in his message to the Senate.

The president's final decision on the projects fate could be weeks or months away. In the meantime, the contentious years-long debate over a pipeline is likely to continue, despite concerns that Keystone XL distracts from more significant, long-term discussions about the future of US energy and the environment.

Republicans accuse Obama of needlessly delaying approval of the project, proposed six years ago by Canadian firm TransCanada. Keystone backers hoped the bill would force Obamas hand, but the White House promised a veto, saying the legislation circumvents a long-established review process. Obama says he will only approve the 1,179-mile pipeline if it doesnt exacerbate climate change. The president's promise has pleased environmentalists, who say Keystone which would carry 830,000 barrels of emissions-heavy oil sands a day would be an environmental disaster.

So what happens next? Obama has been quiet on the issue, but the State Department is undertaking its final analysis of determining if the pipeline is in the national interest, which could take weeks or months.

Theres incentive for Obama to make a decision sooner rather than later. Keystone could be a nightmare for fellow Democrat Hillary Clintons nascent presidential campaign, as Elana Schor writes in Politico, forcing her to reckon with a statement she made, as Secretary of State, that she was inclined to approve the project. Environmentalists are pressing Ms. Clinton to stake a position on the issue ahead of 2016, and an Obama decision could alleviate that pressure.

Obamas environmental legacy could depend on having a Democratic successor like Clinton. Congressional Republicans and GOP 2016 hopefuls are targeting long-term climate policies like his Clean Power Plan to cut US emissions 30 percent from 2005 levels by 2030.

Regardless of the administrations ultimate decision, though, there are still a few hurdles along the pipelines path. TransCanada needs a construction permit to build through South Dakota, for example, and still faces opposition from some Nebraska landowners.

Meanwhile, the messaging battle between industry and environmentalists continues unabated.

Continued here:
Obama vetoes Keystone XL bill, but pipeline saga is far from over (+video)