What was approved was a partial spin-off of the original pipeline project, from Cushing, OK to Gulf Coast Texas. That project is now called the Gulf Coast Pipeline.
http://www.transcanada.com/gulf-coast-pipeline-project.html
The current KeystoneXL pipeline goes from Hardisty, Alberta to Steele City, Nebraska.
I believe that they had the approvals done from Canada to Nebraska and then Bernie Sanders and Steve Cohen whined that enough wasn’t done to safeguard the environment so they demanded that State review the approval. This put the “approval” on hold and was ultimately rolled back.
Sanders and Cohen used this approval as an excuse to have the IG look at State procedures for approvals of this nature to make sure nothing nefarious was going on.
Obviously they just demanded the IG look to cover their ass to demand that State examine the approval.