The latest funding setback for the new Tappan Zee Bridge centers on the federal government's decision Tuesday to deny a nearly $500 million loan request from the state to help pay for the span.

Rockland County Executive Ed Day characterizes the EPA's rejection of Gov. Cuomo's request for more than $480 million in clean water loans as a 'significant hit.'

However, environmental groups are celebrating the decision.

"We can't take a half-billion dollars out of funds for clean water and put it into the bridge, especially when they already got $1.6 billion in federal funds for the bridge," says Riverkeeper President Paul Gallay.

The money was supposed to have come from a federal fund reserved for financing clean water and sewer projects. The state had hoped to use the money for at least seven bridge-related projects, including more than $100 million for dredging the Hudson River, and $65 million to remove the current bridge between Westchester and Rockland counties.

The Thruway Authority initially touted the loan as a means of keeping tolls down.

In a statement Wednesday, the Thruway Authority promised that the project will not be affected in any way by the EPA's decision, and that the project is on budget and on schedule.