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Quick federal environmental approval for Key Bridge rebuild saves state time, money

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BALTIMORE, Md. — Waiting for the federal government to green-light an infrastructure process is often a lengthy, costly process. States have to conduct studies to satisfy the National Environmental Policy Act (NEPA).

But in the case of the Key Bridge reconstruction, the Maryland Transportation Authority (MDTA) was able to bypass much of that environmental review process that often bogs down big projects like this one.

Since the new Key Bridge is going in the exact same spot, with the same number of lanes, the feds were able to expedite that process, knowing that the project won’t significantly impact the environment. The project received NEPA approval on Tuesday, allowing the state to move forward with its plans to rebuild.

"In terms of the speed of it and everything, there were not environmental shortcuts. It's basically documentation of the fact that we're just replacing this bridge. I mean, we might have the piers - very likely to have the piers farther out than the existing bridge was for obvious reasons,” MDTA Executive Director Bruce Gartner told WMAR-2 News’ Elizabeth Worthington.

So, just how much time did this save? For the ongoing Bay Bridge replacement project, the NEPA approval process started all the way back in 2016. The first phase wasn't completed until 2022. We're still in the second phase. It's cost millions of dollars so far.

“We have to analyze a lot of alternatives; each alternative has different impacts on the environment,” Gartner said of the process.

In the meantime, the state is still in the middle of going through all the proposals from companies hoping to win the construction contract. Gartner wasn't able to tell us how many companies sent proposals. He says they hope to pick a team by Labor Day. Then, they'll start designing. Actual construction work won't start until some time in 2025.

"With the progressive design build approach that we're taking, there's that opportunity for early packages and early work. So that'll be up to the engineers and the design build team to determine if there's something early that can be done in the construction process next year,” Gartner said.

But before we can rebuild, we have to tear down what's left. The MDTA hopes to demolish the ramps that are still standing by this fall. The project is expected to be completed in 2028, and cost between $1.7 and $1.9 billion.

There's still the lingering question of who's paying for it all. As of right now, the Federal Highway Administration will use emergency relief funds to cover 90% of the cost, leaving the state on the hook for the remaining 10%. The state will use the $350 million insurance payout it's expecting to receive from Chubb , the bridge's insurer, to cover initial costs, hoping to be reimbursed by the federal government later. But the person who promised Maryland that the feds will cover 100% of the cost, President Biden, won't be in office next year.

"Our financial forecast right now has to assume the 90%,” Gartner said. “But that 100% really does help, having the certainty of that, of being able to move forward expeditiously. We’re still hopeful that we can get that. I think it’s just a matter of proving that there’s a lot of worthy work going on, and we will be responsible with the federal dollars, and others have gotten 100% in the past.”

Governor Moore was asked about the rebuild process while holding a press conference at Ravens training camp Wednesday.

He said he spoke with lawmakers on the phone that same day about the desire for 100% federal funding. "I need this bridge built, and I need it built on time, and on budget. I've been really encouraged by the bipartisan support, and hopefully within the next months we'll have more information that we're ready to get moving,” Gov. Moore told reporters.

Below is the breakdown of how the Chubb insurance money will be spent:

"The Authority anticipates it will resume receiving federal funds after the insurance proceeds are exhausted. Beginning in fiscal year 2026, it is assumed that the MDTA will be reimbursed by the federal government for eligible project costs at a 90% federal, 10% MDTA split,” Chantelle Greene, director of finance for MDTA, said during a June 28 board meeting, where the agency’s financial staff provided updates on the Key Bridge.

You can read more about the funding for the reconstruction here, and here.