Stop the Luxury Lanes water tax: Immediate action needed

Stop the "Luxury Lane Water Tax"

The Washington Suburban Sanitation Commission (WSSC) estimates widening I-495 and I-270 for high-cost Luxury Lanes could increase our water bills by as much as 58% over the first ten years and by 277% over 40 years! Read the Washington Post coverage on this issue here.

WSSC told county officials today the $11 billion Luxury Lane plan could cost another $2 billion to move water and sewer mains.  That means every WSSC customer in Prince George’s and Montgomery Counties will foot the bill. The Washington Post reported that the WSSC estimated that this could reach $2,253 per typical household over the next 40 years

This huge potential increase in water bills for Montgomery & Prince George’s County residents is a complete surprise. In over two years of testimony and public meetings MDOT hasn’t said one word about us footing a $2 billion construction bill for the Luxury Lane company.

First, MDOT wouldn’t tell us how high the tolls will be—and now this. What other “surprises” are waiting for us?

ACTION ITEM

Send a message to Environment and Transportation Committee Chair Kumar Barve before Monday March 16th, a key legislative deadline. His contact information is here.

Tell him to “Say No to the Luxury Lane Water Tax” and “Yes to protecting Maryland” from predatory privatized highway boondoggles. Be sure to include your home address in the e-mail. 

 

Sample Letter

Dear Delegate Barve:

According to Thursday’s Washington Post, the WSCC told the Montgomery and Prince George’s County Councils that paying off the debt to move utilities as part of toll lane construction “would cause customers’ water and sewer rates to swell by 277 percent over the next four decades. That would translate to the typical household paying an additional $2,253 over that time.”

This is unacceptable! Governor Hogan promised that the I-270/I-495 P3 Program would not cost taxpayers a dime. 

As you know, Delegate Barve, many of your constituents are very much opposed to the I-270 toll lane plan. To ask them and hundreds of thousands of others to foot this Luxury Lane Water Tax is unconscionable. Please protect us from this travesty.

Status of the I-270 Toll Lane Project and Related Legislation

The Maryland General Assembly’s 2020 session convened January 8 and will adjourn April 6.  The “Opposite Chamber Bill Crossover Date,” is March 16. This is the last date for each chamber to send bills it intends to pass favorably to the other chamber in order to have a chance of clearing both chambers and making it to the governor’s desk this session.

Bills that aren’t passed will have to be reintroduced in the 2021 session, which convenes January 2021. There will likely be many late night legislative meetings in order to pass bills before the session is adjourned. To date, only one bill of the nearly 3,000 in the 2020 session has been enacted.


ACTION ITEM

Write Chairman Kumar Barve in support of HB292. He must pass it out of committee and onto the floor to give other delegates a chance to vote. Many delegates support the “County Consent” bill, but unless Chairman Barve brings it up for a vote, they won't be heard and it will die. 

E-mail Delegate Barve (kumar.barve@house.state.md.us) even if you have written him before. Tell him you support the “County Consent” bill (HB292) and ask him to report it out of committee.

Definitely state if you are a resident in Delegate Barve’s District 17. Tell him that passing HB292 is critical for his constituents, who will bear the full brunt of the construction, environmental degradation, and community disruption.

He has noticed how many letters he has received on this bill and we must keep the pressure on him. Be sure to include your home address in the e-mail.

Status of the I-495 & I-270 Public-Private Partnership (P3) 

In September 2017, Governor Hogan announced his plans to add new lanes to I-270 in Montgomery County and to I-495 using a P3 program, allowing private sector firms to finance highway construction in exchange for collecting tolls. We have assembled this timeline based on currently available information from Maryland Department of Transportation (MDOT) and other sites:

  • June 2019:  The Board of Public Works (BPW) voted to designate the Governor’s proposed I-270 and I-495 projects as a P3 and approved the proposed plan for selecting developers. 

  • January 8, 2020: The BPW approved the Governor’s proposed toll-lane plan with amendments, including delivery of the entire P3 Program in phases.

  • April 2020: A Statement of Qualifications (SOQ) from potential contractors is due. Those on the shortlist of qualified contractors will be notified in June 2020. 

  • May 2020: A study of potential environmental impacts is expected to be published for public review with public hearings in June 2020. 

  • February 2021: P3 proposals are due with selection of concessionaires in March 2021 and execution of the P3 agreement in May 2021.

  • Fall 2022: Projected ground breaking of the first section. 

The contracting process is going on behind closed doors and the MDOT resources are opaque, These dates are subject to change or may have already changed. We will continue to inform you of the status of the I-495 and I-270 P3 as information becomes available.

Status of Key Transportation Legislation in the Maryland General Assembly

Five bills currently under consideration this legislative session could directly or (in most cases) indirectly affect the plan to add toll lanes to lower I-270. These are:

HB292 (SB229) “County Government Consent Requirement”

This bill would require that a state agency receive the express consent of a majority of the governments of the affected counties before constructing a toll road, highway, or bridge within the affected counties. The nine counties of the Eastern Shore are able to block such new toll facilities because of a law that’s been on the books since 1978. Under this bill, the requirement would be expanded to apply to all counties in the State. 

Dontwiden270.org believes that HB292 would promote collaboration between the State and the counties. The focus would be on multimodal solutions, allowing our county leaders to engage in genuine cooperation on a region-wide transportation system, and not paving more lanes of highway. HB292 is our best hope for preventing high tolls, worse congestion on I-270, a multitude of negative impacts to Rockville and nearby communities, and a possible financial fiasco for Maryland.

Status of SB229 and HB292:  A hearing on SB229 was held in the Senate Finance Committee on January 29.  The bill is currently on hold in the Committee. The hearing on HB292 was held February 13 in the House Environment and Transportation Committee. HB 292 is currently pending in the House, waiting for Chairman Barve to allow the Committee to vote on it.

[Note: Senator Mike Miller, formerly President of the Maryland Senate, just introduced SB1069, which would repeal the current prohibition in the Eastern Shore counties.]  

HB299   “P3 Projects – Prohibition of Real Property Acquisition” 

HB 299 would limit the taking of private property through eminent domain (the power of the government to take private land for public use) to expand I-495 and I-270 with P3 toll lanes. 

Status of HB299:  A hearing was held in the House Environment and Transportation Committee on February 11.  No further action has been taken. There is currently no Senate counterpart.

HB1249  “MDOT Promises Act of 2020”  

HB 1249 puts into statute all the promises that MDOT made to government agencies and the public when seeking approval for the I-495 & I-270 P3 from the BPW. Promises made by MDOT that would be codified include no taxpayer costs; 10% or more of toll revenue for transit; bus access to the toll lanes for free;  and MDOT will share modeling data with local officials.

Status of HB1249:  A hearing was held in the House Environment and Transportation Committee on March 5.  Opponents of the bill said that there needs to be a process for change. No further action has been taken to date. There is currently no Senate counterpart.

HB1424 “Public-Private Partnerships – Process and Oversight” 

HB1424 would amend the current P3 oversight and review process by adding legislative oversight for P3 transportation proposals. The bill would increase transparency, allowing legislators and the public to have information needed to understand the impact of a project. It also gives the General Assembly up to a year to review and nullify previously approved P3 designations.

The bill also establishes a P3 Oversight Review Board that will review pre-solicitation reports for transportation projects over $500 million and provide a report to the BPW and the Budget Committees. It would require that independent auditors conduct a rating assessment survey for every contract under a large P3 agreement before the BPW can vote on it. It would also require that a completed Environmental Impact Statement (EIS) be included in each pre-solicitation request. 

Status of HB1424:  A hearing was held in the House Environment and Transportation Committee on March 5.  Opponents of the bill stated it would delay P3 projects and that BPW review is sufficient. No further action has been taken to date. There is currently no Senate counterpart.

HB1220  “P3 Rates --No Lexus Lane Act” 

HB1220 requires a P3 agreement for a project involving road, highway, or bridge assets to prohibit toll rates that exceed 10 cents per mile. However, the bill also permits the toll rates to exceed 10 cents per mile with the approval of the BPW. Thus, HB1220 would leave the ultimate-decision-making about the cap on tolls to the BPW, rendering the cap provision of questionable merit.

Status of HB1220: A hearing was held in the House Environment and Transportation Committee on March 5th.  Opponents of the bill said that it could lead to underfunding of toll roads. .No further action has been taken to date. There is currently no Senate counterpart.


GOOD READS

The DW270 Media Archives tab has articles on the Maryland P3 project as well as other relevant transportation news dating back to August 2018. The list is updated weekly so that you can stay abreast of current news. 

Read transportation expert Ben Ross’s exposé on the financial dealings driving the Governor’s I-270 & I-495 P3 plan. This article deserves a widespread audience. Please pass the link on to others.

Per the article, Governor Hogan appears to have been altering the P3 proposal in ways that favor Transurban (the Australian company that has built most of Virginia’s toll roads) at the expense of Maryland taxpayers. The Governor made a trip to Australia in September for the announced purpose of seeking “opportunities for economic partnerships” with Australian companies. During this trip, he called on Transurban’s top executives as part of his quest to advance his yearlong infrastructure initiative. Cost estimates for toll lanes to be built by a P3 on I- 270 and I-495 are as high as $15 billion. Public investments of such great magnitude demand prudence, impartiality, and transparency. As the article highlights, what we have seen is a process sadly lacking in those attributes.

Per the article, “We may look back and wonder why, in 2020, anyone thought it was a good idea to add even one more mile of road to serve the automobile. Magical though they may be, the toll lanes can never be made to disappear. Once they are built, we will be living with them for generations.”

Quick Update: A Key Win and Time-Critical Action

Kudos!

The flood of emails you sent spurred the Montgomery County Council to unanimously approve funding for the I-270 corridor transportation study. The Planning Board now gets a green light to directly compare the Governor’s toll lane proposal with all the transit alternatives, including MARC expansion, monorail, a Red Line extension, and bus rapid transit. This is great news!

Now let’s make Delegate Kumar Barve hear us!

  • Your emails to Kumar Barve, Chair of the House Environment and Transportation Committee, are starting to get his attention. We need to keep it up until he releases the County Consent Bill (HB292) for a vote in his committee. The bill is our last, best chance this legislative session to fix the Governor’s disastrous plans for lower I-270.

  • Del. Barve is making himself the sole decider on a measure that affects the entire state. That’s not right. Tell him to let the full House of Delegates (where there is strong support for the bill) have its vote! 

  • We are not alone. The Montgomery County Executive, the President and Vice President of the Montgomery County Council, the Mayor and Council of Rockville, and many other officials are all in favor of HB292.

  • Del. Barve is not watching out for his own District 17 constituents, who are telling him they need HB292. District 17 will bear the full brunt of the construction, environmental and community degradation, worsening congestion (the toll lanes won’t solve it), and fiscal harm that is the inevitable outcome of the Governor’s current I-270 plans!

We need to spur Del. Barve to action NOW! 

  • The legislative session is more than half over and time is running out. 

  • Reach out to him today. If you’ve done it before, please change up the message and do it again. We need to inundate his office with support for HB292. Here’s his contact information.

  • Spread the word!


More News

  • Another worthy bill coming up for a hearing this week would improve the Public Private Partnership (P3) process going forward. Read about HB1424.

  • Del. Barve actually proposed two of his own bills to “check” the toll road plan. The consensus of experts and advocates is that those bills would have no real impact. One (HB1220) would leave the ultimate decision-making re: putting a cap on tolls to the same three-person Board of Public Works that got us into the current mess. The other (HB1405) is a constitutional amendment that would not take effect until 2023.


Remind yourself why you’re committed to this cause

  • Read (or re-read) transportation expert Ben Ross’s extraordinary expose on the financial dealings driving the Governor’s I-270/I-495 plan, and the great harm that will surely follow. This article deserves a widespread audience. Please pass the link on to others.

  • Consider that what the Governor has proposed for us is really a new transportation tax in the form of high tolls and unknown financial risks to Maryland taxpayers. One way or another, we will all end up paying for the Governor’s $11 billion deal.