The most likely reason the state officials chose plan B is:
A. Plan B will limit habitat disruption better than plan A.
Plan B involves constructing underground tunnels, which would minimize disruption to the surface habitat and ecosystems compared to Plan A, which involves aboveground rail tracks. The other options are less plausible because Plan B is more expensive (not a lower economic demand), likely involves a longer construction time (not less construction time), and would typically require more materials (not fewer) due to the underground construction.