The State Department is expected to deny a permit for the controversial Keystone XL pipeline on Wednesday afternoon, sources told National Journal.
The announcement is expected at 3 p.m. by Deputy Secretary of State William Burns, the sources said.
Rejection of the permit would not necessarily kill the 1,700-mile project to carry oil from Canada's tar sands to refineries in Texas, however.
The Obama administration has said it simply could not adequately review the proposed project in time to meet a 60-day deadline for a decision on the permit imposed by Congress in the payroll-tax package enacted in December.
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