The U.S. Department of State has received a new application from TransCanada—the company behind the controversial Keystone XL project—to ship crude oil via a proposed pipeline running from the Canadian border to existing infrastructure in Nebraska. TransCanada had its initial application rejected by the Obama administration in January. The reapplication to the U.S. State Department on Friday calls to reroute the pipeline around the environmentally sensitive Sand Hills Region of Nebraska—adding miles onto the project. Despite the new route, some in Nebraska still oppose the plan. The pipeline is causing other problems as lawmakers debate a multi-year surface transportation plan—the first one since 2005.

If approved, construction on the pipeline could