Washington ( CNN ) -- A controversial proposal to build a giant oil pipeline between Alberta , Canada , and Texas cleared a key hurdle Friday as the State Department said the project could be built without significant damage to the environment . Known as Keystone XL , the 1,700-mile pipeline has drawn fierce criticism from environmentalists , who are staging a two-week demonstration at the White House . So far , some 370 people have been arrested for protesting the project . `` There would be no significant impacts to most resources along the proposed pipeline corridor , '' Bureau of Oceans and International Environmental and Scientific Affairs ( OES ) Assistant Secretary Kerri-Ann Jones told reporters on the release of the State Department 's final environmental impact statement . She stressed that the report is not the last word on the pipeline , which now must pass through a 90-day review period that will include public hearings . A final decision is expected before year-end . Supporters say the pipeline would create jobs and let the United States replace Venezuelan or Middle Eastern imports with well-regulated , dependable Canadian crude . Opponents say the project would bind the country to an unnecessary and dirty form of oil for decades to come and expose surrounding areas to dangerous spills and leaks . `` It was disappointing , but expected , '' Daniel Kessler , a spokesman for the Rainforest Action Network , said about the State Department 's report . He is part of a group of activists that has been protesting the pipeline at the White House since August 20 . Some 370 people have been arrested so far and 2,000 are planning to be before the scheduled end of the demonstration on September 3 , he said . According to the U.S. Park Police , roughly 50 people have been arrested per day since the start of the demonstration for failure to obey a lawful order . `` It really does n't make a lick of sense , '' Kessler said about the pipeline . `` There 's no excuse for not doing the right thing on this . '' The company that wants to build the pipeline , TransCanada , cheered the State Department 's report . It emphasized the project 's benefits , economic and otherwise . `` The fundamental issue is energy security . Through the Keystone system , the U.S. can secure access to a stable and reliable supply of oil from Canada , where we protect human rights and the environment , or it can import more higher-priced oil from nations who do not share America 's interests or values , '' said Russ Girling , TransCanada 's president and chief executive officer . The pipeline would draw from oil sands deposits in Canada and pass through Montana , South Dakota , Nebraska , Oklahoma and Texas , with construction on an existing pipeline in Kansas . It could transport up to 830,000 barrels per day and is estimated to cost $ 7 billion . CNN 's Dana Ford contributed to this report .
`` There would be no significant impacts , '' a U.S. environmental official says . The pipeline would run from Texas , Canada , to Texas . It could transport up to 830,000 barrels a day and is estimated to cost $ 7 billion . Environmentalists are staging a August 20 protest at the White House .