Looking Back, Looking Forward: Where Is This Project Going?

The Public-Private Partnership (P3) Program 

Governor Larry Hogan announced his I-495 & I-270 P3 Program over three years ago. This review outlines the project’s current direction and includes a chronology of key activities as a reference for tracking future events. 

We all have a lot on our minds these days. And it's hard to follow every twist and turn of the State's I-270 plans. Do we know yet what will happen to 270 and when? No, but MDOT is moving forward with this convoluted, ever-changing process. It’s important to keep our eye on the ball. Dontwiden270.org will keep you informed of happenings throughout the coming year and tell you how you can help prevent this project from irreparably harming our communities.

The Beginning

Sept. 21, 2017:  Governor Hogan announced a public-private partnership (P3) that would add toll lanes to the existing general purpose lanes on I-495 and I-270. Private companies would design, build, and operate the new lanes and collect toll revenues through a 50-year contract with the State.

June 6, 2019: The Maryland Board of Public Works (BPW) designated Hogan’s plan eligible for P3 status, allowing his administration to move forward with soliciting and evaluating private investment. Seven months later, the BPW amended the P3 to use a phased approach, termed “progressive P3 approach.”

Progressive P3 Approach

The entire P3 consists of more than 70 miles and encompasses all of I-270 and I-495 in Maryland, as well as the American Legion Bridge (ALB). The “progressive P3 approach” divided the P3 into phases. The BPW will review and approve each Phase Agreement separately.

As per the map below, the 37 miles of Phase 1 will be broken into smaller sections. Section 1 South will be further divided into two segments: A and B, both of which will be included in the first Section Agreement. Each Section Agreement will be reviewed and approved separately by the BPW.

Phase 1 map with annotations.png

Phase 1

Phase 1 of the P3 program includes I-495 from the George Washington (GW) Parkway in Virginia, across and including the ALB to I-270, and I-270 from I-495 to I-70 in Frederick. 

Section 1 South will begin first. Segment A (the ALB and I-495 from the GW Parkway in Virginia to the I-270 west spur) will start before segment B (I-270 to I-370)

Section 1 North has been delayed and will undergo a separate environmental study.

Working with the Maryland Department of Transportation (MDOT) and the Maryland Transportation Authority (MDTA), a Phase Developer will plan and design each section of Phase 1 sequentially. If they find that a section is sufficiently profitable, they will design that section and submit a proposal to the State. When the BPW has approved a section proposal, the Section Developer will sign a contract and begin construction. 

As of this writing, a Phase Developer is currently being selected. On July 24, 2020, MDOT had sent a Draft Request for Proposal (RFP) for review to four proposers they considered eligible to be the Phase 1 Developer. Then, based on discussion with the bidders, MDOT issued the final 1,100 page RFP on Dec. 18, 2020 with technical proposals due just five days after issuance. However, the bidders had previously reviewed and commented on draft versions. Three of the four teams submitted proposals in response to the final RFP.

What’s Ahead?

Timeline 

At the Dec. 17, 2020 MDTA Board Meeting, MDOT presented the latest timeline for the Phase 1 program. The slide presentation can be found here; the timeline shown below is on slide 29. Some projected dates will undoubtedly change. 

There is no schedule yet for Phase 1 North (I-270 from I-370 to Frederick) or for Phase 2 (the proposed expansion of the Capital Beltway). 

P3 SOlicitation timeline.png

NEPA and the Environmental Impact Statement (EIS)

The National Environmental Policy Act (NEPA) requires federal agencies to assess the environmental effects of proposed projects. The law requires consideration of a range of project alternatives and documentation of their potential impacts. 

  • July 10, 2020: MDOT released an 18,000 page draft environmental impact statement (DEIS) for Phase 1 South and the Beltway.

  • July 10, 2020 - Nov 9, 2020: Three thousand written public comments on the DEIS were submitted to MDOT.

  • Fall, 2021: MDOT expects to release a final environmental impact statement (FEIS) for I-270 south of I-370 and the Beltway from the ALB to Branch Ave.


Toll Rates

All of the five build alternatives include “dynamic” tolling. That means the tolls will vary and prices will be adjusted in response to travel speed and traffic density. This is a form of monetizing congestion (i.e., making revenue from it) also known as Dynamic Pricing or Congestion Pricing. In a P3 project, the revenues go to private companies, not taxpayers. 

Maryland law says that tolls cannot exceed a cap, which must be set by a public vote of the MDTA after public hearings.

The Maryland Transit Opportunities Coalition reported that MDOT has secretly guaranteed high tolls to Transurban, the Australian company that wants to add toll lanes to the ALB. The existence of a letter that makes this commitment -- but not the letter's text -- is revealed in the RFP for the first phase of the toll lanes. The RFP says that it will owe Transurban millions of dollars if the MDTA doesn't rubber-stamp the toll cap promised to Transurban in MDOT's secret letter.

  • Spring 2021: A toll rate proposal will be submitted to the MDTA Board.

  • Spring – summer 2021: MDTA to hold open public hearings on the toll range proposal.

  • Summer, 2021: Approval by MDTA of toll cap/range of tolls after public hearing.


Recent Events

MDOT Releases RFP for Phase I Developer

MDOT publically released the RFP for a Phase 1 Developer on Dec. 23, 2020. The RFP is 1,100 pages including instructions, a proposed agreement, and technical exhibits. 

Many organizations and public officials have protested that the RFP is premature because MDOT has not reviewed public comments on the DEIS and selected which alternative they want to go forward. Moreover, in a footnote of the Phase P3 Agreement, the RFP states that the Phase Developer will receive up to $50 million to reimburse their predevelopment costs if the toll lane plan is not approved through the NEPA process.


Director of I-495 & I-270 P3 Office Resigns

Lisa Choplin, Director of the MDOT State Highway Transportation’s I-495 & I-270 P3 Office, retired from state government on Dec. 31, 2020. Ms. Choplin had taken over the State Highway Administration design-build program in 1999. She became director of the I-495 & I-270 P3 Office at its inception in 2017.

There was no information provided about why she suddenly resigned in the middle of the project. Her LinkedIn page states simply that she has retired and gives no indication that she is seeking a new job.

MDOT Secretary Greg Slater was quoted as saying, “I’m going to sit down with the team and create some new and different ways that we can try and engage with the community.” Whether MDOT becomes more transparent with its P3 activities remains to be seen.


Three Bids Submitted to RFP for Phase 1 Developer

On Jan. 8, 2021, MDOT announced receipt of three proposals in response to the RFP for Phase 1 Developer for the I-495 & I-270 P3 project. One of the four consortia of private sector teams that MDOT had considered qualified to compete chose not to submit a proposal. A second consortium, headed by Transurban, dropped its lead construction contractor from its team and did not replace it with another construction company. 

MDOT expects to announce the selected Phase Developer in February and then seek BPW approval to enter into agreement for Phase 1 predevelopment design work as early as March. Contracts to finalize the design and to finance and build individual sections will be submitted to the BPW in 2022 following a final EIS and an official Record of Decision. 


For additional recent and archived news, refer to the Dontwiden270.org website tab “Media Archives.”

Big News – MDOT’s Most Unwelcome “Holiday Surprise”

MDOT just ramped up its effort to keep Maryland’s taxpayers in the dark about the Governor’s toll-lane plans for I-270 and I-495. Here’s how Maryland Matters describes what just happened:
 

“While Maryland residents and elected officials scurried around in preparation for the holidays last week, the state Department of Transportation quietly took a major step in its $11 billion I-495/I-270 ‘managed lanes’ highway project

“With no notice to the public, the agency issued its formal Request for Proposals (RFP) for the project late on Friday, Dec. 18. The four giant transportation consortiums that have formed to bid on the massive project were given three business days to return the ‘technical’ portion of their responses. (Financial responses are due on Jan. 8.)

“MDOT then slipped the RFP onto its website in the early evening hours of Dec. 23, after employees had gone home for the long holiday weekend.”

Read the whole, gripping story: MDOT Accelerates Timetable for Next Steps on Beltway Widening, Rearranges Project Phases.

Then see how MDOT’s latest holiday move puts Maryland’s taxpayers and commuters in extreme financial jeopardy and “makes a mockery of what is supposed to be competitive bidding.” Secret Deal Guarantees Sky-High Tolls On American Legion Bridge,   Maryland Transit Opportunities Coalition.


Save the Dates

  • Jan. 7, 2021 (9:00 am):  Montgomery County House Delegation. The meeting will be live-streamed on the Delegation’s YouTube page.

  • Jan. 7, 2021 (7:00 pm):  District 39 Legislative Town Hall with Senator Nancy King, Delegate Gabriel Acevero, Delegate Lesley Lopez, and Delegate Kirill Reznik.  Register here.

  • Jan. 7, 2021 (7:30 pm): CABE Townhall: 2021 Action Outlook with Delegates Kumar Barve, Marc Korman, Jared Solomon and others. Register here.

  • Jan. 10, 2021 (7:00 pm): District 17 Town Hall with Senator Cheryl Kagan, Delegate Kumar Barve, Delegate Jim Gilchrist, and Delegate Julie Palakovich Carr. Register at bit.ly/D17Jan2021.

  • Jan. 12, 2021 (7:00 pm): Virginia Department of Rail and Public Transportation’s virtual public meeting on I-495 American Legion Bridge transit recommendations. Register here.

P3 Jeopardizes Historical Site

The Moses Morningstar Cemetery (MMC) in the community of Gibson Grove, established by former enslaved people in the 1880s, is threatened by the proposed I-495 Beltway expansion. Project maps show some graves and parts of the Moses Hall Foundation are within the construction Limits of Disturbance.

The State has determined that the MMC is historically significant and community members and preservationists are trying to protect these important historic sites. 

U.S. legislators from Maryland sent a letter to the Federal Highway Administration stating “…we risk once again committing the error of building roads without regard to the historic, cultural, and social values of vulnerable communities…”

Spread the Word about our Website and Newsletter

Please help us inform others about what we can do to safeguard our environment and promote healthy, efficient, and fair transportation options. We would like to connect with other residents of Montgomery County, especially upper county, as well as the Frederick area. 

Refer them to our website (https://dontwiden270.org/) to learn mor e about Governor Hogan's plan to widen I-270 with expensive toll lanes and our efforts to prevent this project, which would cause enormous harm without solving traffic congestion. We even have a tab on the website with background documents in Spanish.

Tell interested individuals they can get on our newsletter e-mail list by going to https://dontwiden270.org/get-involved and checking the "keep me informed" box. We send out a newsletter about every 2 weeks with information about what is happening with the project.

MDOT Rushes Ahead, Ignoring Opposition, DEIS Flaws, and Post-COVID Reality

MDOT Rushes Ahead, Ignoring Opposition, DEIS Flaws, and Post-COVID Reality


Opponents of the Toll-Lanes Testify at Priorities Hearing

The Montgomery County Delegation of the Maryland General Assembly held its annual Priorities Hearing on November 12. This was an opportunity for the public to say what they want  their legislators to focus on in the coming session of the General Assembly. 

Eight individuals, including Dontwiden270.org representatives, spoke about the “I-270/I-495 Highway P3 Proposed Project.” Their testimonies can be heard here.  The link should take you directly to the highway expansion presentations, but if there is any difficulty, scroll to 3:11:00 to listen (i.e., 33 minutes from the end).

The opponents of the project highlighted the financial risk to the state and taxpayers and the need for other approaches, including transit. They pointed out that the recently released Draft Environmental Impact Statement (DEIS) clearly showed the extensive environmental damage the highway expansion would create, the harm to public health, and importantly, that the project would increase -- not mitigate -- traffic congestion. 

The speakers called for a pause to the project, regulations to prevent public-private-partnership (P3) financial risks, and collaboration among legislators in the General Assembly to pass critical legislation in the 2021 session, which convenes January 13, 2021. The senators must work with the delegates to pass bills that will reform the State’s P3 process.


ACTION ITEM

Write Your Public Officials and Legislators.
Tell them this project poses financial risks to Maryland taxpayers and must be stopped.

WriteComptroller Peter Franchot in care of his Board of Public Works (BPW) point person at: aklase@marylandtaxes.gov, and tell him to call for a halt to the P3 procurement process. Mr. Franchot has the deciding vote when the BPW considers the P3 project.

Write your state legislators, refer them to the November priorities hearing testimonies, and tell them to pass legislation to stop this project and protect the State’s fiscal stability. Enter your address on the website Find My Representatives to identify your Maryland legislative district, state senator, and state delegates. Then get their contact information at Montgomery County Delegation.

WriteDelegate Kumar Barve, Chair, House of Delegates Environment and Transportation Committee, and tell him to introduce P3 bills early in the session so there is time to get them passed in the Senate.

Write Secretary Greg Slater, Secretary of Transportation, Maryland Department of Transportation (MDOT). Tell him MDOT must pause the I-495 & I-270 Public-Private Partnership (P3) Program. Secretary Slater spoke with regional transportation officials at the 2020 Capital Region Transportation Forum on November 18. He said that the planning horizon is different since the pandemic and has given us opportunities to consider innovation. Remind Secretary Slater of his commitment to multi-modal options, including transit.


U.S. Department of Transportation Analysis of Transportation Challenges Post COVID-19

A November 19 presentation by the U.S. Department of Transportation about post-pandemic transportation issues included the following points:  

  • Transportation will be different in the post-COVID era.

  • There will be unprecedented changes in commuting behaviors.

  • Pre-COVID programs and policies may be unsustainable or undesirable going forward.

  • Performance metrics for transportation need to be updated and recalibrated with post-COVID behaviors.

  • Telecommuting levels will be higher.


Comments on the DEIS

Thank you to all of you who sent written comments on the DEIS to MDOT. MDOT received almost 3,000 written comments during the comment period from July 10 until November 9. Comments ranged in length from less than a page to hundreds of pages and were submitted by individuals, organizations, and government officials and agencies. 

The comments point out very deep failings in the DEIS. MDOT must respond to critical issues that were raised by the DEIS and write a final EIS (FEIS) that resolves the problems revealed in the comments. These resolutions must then stand up to review by federal agencies and possible judicial challenges.

MDOT says they are not currently able to provide a specific completion date for when the comments will be read and categorized.


MDOT Intends to Choose a Phase 1 Developer for Predevelopment Activities before Final Study Details are Publically Available

Despite projected post-pandemic changes in transportation, MDOT continues to move forward with this flawed project, and incredibly, is planning selection of a bidding team before the final details of the study are publically known. Their timeline reflects releasing a Request for Proposals (RFP) in December and selecting a proposer in March 2021.

The timeline also indicates the FEIS won’t be released until May. The Record of Decision (ROD), which is a public document that authorizes the transportation agency to proceed with design, land acquisition, and construction, is also planned for release in May 2021. 

Thus, MDOT plans to issue the RFP before the legislature convenes in January and select a proposer before final documents are available for public review. In fact, with MDOT’s acknowledgment, potential concessionaires are already holding meetings with companies regarding pre-development subcontracting opportunities. 


Recent Must Read Articles: 

U.S. Navy strongly opposed to Capital Beltway widening project
Maryland Matters, Nov. 20, 2020
The U.S. Navy, in its response to the DEIS, stated strong opposition to Governor Hogan’s highway expansion project. The Navy also raised specific objections to the proposal, including the lack of transit alternatives. The letter from the Commanding Officer at Naval Support Activity Bethesda declared that the State cannot take any military property in Bethesda for construction of the toll road. The article can be found here and the letter from the Navy to MDOT here.

Possible legal challenges pose cost risks for Maryland toll lanes proposal
Washington Post, Nov. 27, 2020
The potential for a legal fight over Maryland’s highway plan grew more apparent when environmental groups, local officials, and project critics responded to the DEIS and said they will sue if their concerns aren’t addressed.