TransCanada Corp.’s Keystone XL pipeline faces one less hurdle after Nebraska’s highest court cleared its path through the state, rejecting a challenge to the power of its Republican governor to dictate the route, and sending the matter back to Washington.

The project would send crude from Alberta’s oil sands to a network junction in southeast Nebraska, for transport to Gulf Coast refineries. While the ruling is a victory for energy independence proponents, the project’s fate remains uncertain. It now returns to President Barack Obama for approval, who deferred a decision citing the lawsuit.