MDOT Races Forward with Plans to Widen I-270

The Maryland Department of Transportation (MDOT) is rushing ahead with its ill-conceived project. 

MDOT is about to seek Maryland Board of Public Works (BPW) approval of a contract for a Phase Developer to begin pre-development design. For the contract to move forward, two of the three BPW members must approve it. Since the project is Governor Hogan’s creation, we know how he will vote. Treasurer Nancy Kopp is likely to vote against it. Comptroller Peter Franchot is the swing vote. 

Action Item 

Write BPW members Comptroller Franchot at pfranchot@comp.state.md.us and Treasurer Kopp at treasurer@treasurer.state.md.us.Tell them that no P3 agreement should be approved by the BPW until the Final Environmental Impact Statement (FEIS) is complete.

According to the BPW’s website, their mission is to protect and enhance the State's fiscal integrity by ensuring that significant State expenditures are necessary and appropriate, fiscally responsible, fair, and lawful. 

As stewards of the State’s finances, the three BPW members must consider the costs this project will incur. Governor Hogan promised there would be no net cost to taxpayers for the toll lane project. But Public-Private Partnerships (P3s) are designed to monetize traffic, and they rely on taxpayer subsidies.

Maryland may be stuck with hundreds of millions of dollars in expenses and future outlays. P3s regularly burden taxpayers with high costs, often unexpected.   

• There are huge on-going MDOT-State Highway Administration (MDOT-SHA) expenses and staff costs paid for with taxpayer funds.

• The Draft Environmental Impact Statement (DEIS) estimated that Alternative 9 (described below), MDOT’s preferred alternative, might require the State to provide a subsidy of up to $482 million to the P3 contractor (refer to DEIS pp. 2-48).

• According to a Washington Post article, “Maryland Could Face Millions in Cost Risks” , the State would be obligated to pay the contractor up to $50 million for ‘pre-development costs’ if the project does not move forward as planned. 

• Taxpayers may have to pay up to $2 billion to move water and sewer lines.

Selection of Preferred Alternative

On Jan. 27, MDOT announced it had selected Alternative 9 from the list of build options. 

Alternative 9 would convert the existing high occupancy vehicle (HOV) lanes on I-270 to high occupancy toll (HOT) lanes and add one managed lane in each
direction. Vehicles with 3 or more people would be able to travel free of charge, a change from current HOV lane regulations that – during rush hours -- permit travel by vehicles with 2 or more people only.

The conversion of the current HOV lanes to toll lanes would effectively remove one free lane in each direction; the current HOV lanes cost nothing and are restricted to HOV for only a short portion of the day.

The plan would place the toll lanes in the middle of the highway. As reported in a Maryland Matters article, MDOT believes much of the project can be done within I-270’s existing walls. However, what is unknown is how much land will be needed to build off-ramps to connect toll-lane users with local roads.

For more information on the Preferred Alternative, go to the Dontwiden270.org website tab “Media Archives” and click on the articles listed for Jan. 27, 2021.

Dontwiden270.org Testimonies

Dontwiden270.org coordinators and other advocates often provide testimony at legislative meetings and hearings opposing the I-495 & I-270 P3 project. Recently, several individuals spoke at City of Rockville Mayor and Council meetings. Their testimonies informing the Mayor and Council members of current issues about the P3 and widening I-270 can be found at the Dontwiden270.org website tab “Resources.” 

Worth Reading

D.C.-Area Planning Board Slams Hogan Administration Plan for Widening Capital Beltway, I-270, Maryland Matters:

The leaders of the Maryland-National Capital Park and Planning Commission (M-NCPPC) “slammed the state’s” plan to widen parts of the Capital Beltway and Interstate 270 .

Opinion: Rushing Beltway construction won’t solve Maryland’s congestion problem, Washington Post:

“Among the wasteful highway boondoggles still moving forward…, few would harm local residents’ health more or cause greater, irreversible environmental damage than Maryland’s Capital Beltway project…”

A Rare Request for Donations for a Valued Partner

We often receive e-mails from you, our readers, thanking us for the valuable information in our newsletters. We thank you!

Some of you have offered to help cover our costs, but we are not set up to receive donations. However our valued partner, the Maryland Transit Opportunities Coalition (MTOC), which provides us with technical understanding that enables us to give you accurate information, can take donations. MTOC is an invaluable center of technical and policy expertise on transit and equitable transportation. MTOC uses donations to help cover its website expenses, printing of fliers, and more. If you are able to help them, we would be very grateful. 

To make a donation of any size, online or by check, kindly follow this link: https://transitformaryland.org/contribute. Thank you!

There’s Strength in Numbers. Please Help us Grow Our Mailing List

People who read our newsletters take action, and our elected officials take notice! Help spread the word about what we can do to safeguard our environment and promote healthy, efficient, and fair transportation options.

Tell your friends and neighbors they can join our newsletter e-mail list by going to https://dontwiden270.org/get-involved and checking the "keep me informed" box. Our website is https://dontwiden270.org/.

Help Advance Key Legislation in the General Assembly

The 2021 Maryland General Assembly will be in session from Jan. 13–April 12, 2021. As of January 27, there were 745 bills filed in the House and 580 in the Senate. Others may still be in the pipeline but bills must be filed by Feb. 5 (House) and Feb. 8 (Senate) to be introduced this session. The following are two bills that Dontwiden270.org considers important to pass this year. Please refer to Action Item for how you can help.

Action Item 

Write Delegate Kumar Barve, District 17, Chair of the House Environment and Transportation Committee, Urge him to bring HB0067 and HB 0485 to a vote in his Committee so there is time to get the bills passed in the Senate.  

You can find your district number and legislators by typing your address here.  Del. Barve represents D-17 and anyone in D-17 should be sure to include their home address so he knows they are from his district. But the more people who write to Del. Barve, including those from other districts, the better. Legislators respond to volume and Del. Barve’s actions affect many beyond his district. 

Dontwiden270.org will keep you informed about future action items such as writing to committee members in key committees in both the House and Senate and then to the full House and Senate when votes are scheduled.

The Bills

HB0067: I-495 and I-270 Public-Private Partnership - Partnership Agreement - Requirements (MDOT Promises Act of 2021):

This legislation is similar to a bill (HB1249) that passed in the House of Delegates in 2020 by a vote of 97-36 but was ratified too late for Senate approval before the legislature adjourned.

Bill Summary:  This bill puts in statute the promises the State, including the Maryland Department of Transportation (MDOT), made regarding the toll lane project. The bill would prohibit the Board of Public Works (BPW) from approving an agreement for the P3 project unless the agreement includes specific language. Among other requirements, the bill provides that:

• No funding from taxpayers will be used to subsidize the project. All public dollars spent thus far shall be repaid as part of the P3 agreement. 

• At least 10% of toll revenue will be made available for transit for Montgomery and Prince George’s Counties. Buses and other transit will be able to use the toll lanes for free.

• No home or land acquisition will occur until after the BPW approves the construction contract.

• No P3 agreement will be submitted to the BPW until the final environmental impact statement (FEIS) is completed.

For more information on what HB0067 would do and why it is needed, refer to the Citizens Against Beltway Expansion (CABE) fact sheet.

HB0485 and SB0361: Public-Private Partnerships - Process and Oversight (P3 Reform):

This legislation is similar to a bill (HB1424) that passed in the House of Delegates in 2020 by a vote of 97-37 but was ratified too late for Senate approval before the legislature adjourned.

Bill Summary: This legislation would strengthen the process for reviewing large P3 projects and assess economic, legal, and technological risks to the State. It is not retroactive and would not apply to the I-495 & I-270 P3 but it is an important bill for ensuring oversight of future P3 agreements. Among other requirements, the bill would:

• Create an independent P3 Oversight Review Board to ensure accountability for future P3 projects. The Board would review and make recommendations for all P3 pre-solicitation reports with a total value greater than $500 million.

• Set new standards for financial and project disclosures for P3s.

• Require a pre-solicitation report to include an FEIS that complies with the National Environmental Policy Act (NEPA).  

• Give the General Assembly Budget Committees 60 days to review and comment on the recommendations of the P3 Oversight Board before the BPW can designate the project as a P3.

The General Assembly Legislative Process

The Maryland General Assembly meets in session for 90 consecutive days from January to early April of each year. There are 47 senators and 141 delegates elected from 47 districts for a term of four years. The legislators are not term-limited. Each district elects one senator and 3 delegates. The House of Delegates currently has 99 Democrats and 42 Republicans; the Senate has 32 Democrats and 15 Republicans.

The legislative process is divided into 10 distinct stages:

1. Drafting and filing bills:
   The State constitution mandates that bills be limited to one subject clearly described by the title of the bill. Bills on most subjects may be introduced in either chamber during the first 55 days of a session. Many bills are pre-filed; i.e., filed before the General Assembly is officially in session so that they can be introduced early in the session. The Department of Legislative Services prepares a fiscal analysis for each bill.
   
   

2. First reading = introduction:
   During the First Reading, a bill is introduced for the first time, and the bill number, name of the bill’s sponsor, and the title of the bill are read on the floor of the chamber, and assigned to a standing committee.
   
   

3. Committee hearing:
   The Senate President and the Speaker of the House of Delegates assign members to the standing committees and appoint the committee chairs and vice-chairs. During the committee hearings, the bill sponsor and their panel of witnesses present the bill to the committee. The public may provide testimony in support or opposition to the bill. The committee chair schedules periodic voting sessions on the bills that have been heard to decide whether to give each a favorable or unfavorable report, send the former to the full chamber with any amendments, or take no action.
   
   

4. Second reading = committee report to chamber:
   A bill that’s given a favorable report by the committee it’s assigned to is forwarded to the full chamber for consideration, debate and possible amendment.
   
   

5. Third reading = floor vote:
   During the third reading, the full chamber votes on the bill. An ordinary bill needs a majority vote to pass. A roll call vote must be taken.
   
   

6. Crossover:
   If a bill passes in the original chamber, it is sent to the other chamber for consideration, where further amendments may be considered and approved by that chamber.
   
   

7. Resolution of differences:
   If the two chambers differ, then a conference committee with members from each chamber may meet to come up with compromise language, or members of the two houses may confer informally to resolve differences. In any event, an identical bill must be approved by both chambers before midnight on the final day of session (Sine Die) to become law.
   
   

8. Governor’s action:
   All passed bills, except the budget bill and constitutional amendments, are presented to the Governor following adjournment of the legislative session. The governor can sign a bill, veto it, or let it become law without his signature. The Governor has thirty days to exercise his veto authority.
   
   

9. Veto overrides:
   If the governor vetoes a bill, the legislature can override his veto with a three-fifths vote of each chamber. If a bill is vetoed during a regular session, the legislature can consider a vote to override immediately. If the bill is vetoed after the session has been adjourned, the General Assembly may take a vote to override when it reconvenes for the next session.
   
   

10. Effective date:
    If a passed bill is not vetoed or a veto is overridden, it becomes law and takes effect on the date specified in the bill.

Maryland Taxpayers May Pay Millions of Dollars to Contractors

Governor Hogan promised that there would be no net cost to taxpayers for the toll lane project. However, it is apparent that Maryland may be stuck with multi-millions of dollars in expenses and future costs.

• There are clearly huge on-going expenses and staff costs in the development of this proposal that have been and will continue to be borne by the MDOT-State Highway Administration (MDOT-SHA) with taxpayer funds.

• The draft environmental impact statement (DEIS) shows that the cost to taxpayers could be hundreds of millions of dollars. The DEIS estimated the cash flow for each Build Alternative and pointed out that some models showed the State needing to provide subsidies of $482 million to $1 billion. If a State subsidy is required, it would typically be paid to the developer at the beginning of the contract. (Refer to DEIS pp. 2-48 and 2-49.)

• A Washington Post article, “Maryland Could Face Millions in Cost Risks” reported that under a proposal for the project’s first contract, Maryland would have to pay up to $50 million to the contractor for ‘pre-development costs’ if the project does not move forward as planned. The State would be obligated to pay if the project is not environmentally, financially, or legally viable or does not receive federal or state approval. 

News and Reports

Want more information about the I-495 & I-270 P3 project or transportation issues?  Find links to recent and archived news articles on the Dontwiden270.org website tab “Media Archives.” 

Reports, testimony, and correspondence with (and among) area politicians and stakeholders can be found on the website “On the Record” tab.

There’s Strength in Numbers. Please Help us Grow Our Mailing List

People who read our newsletters take action, and our elected officials take notice!

Help spread the word about what we can do to safeguard our environment and promote healthy, efficient, and fair transportation options. Tell your friends and neighbors they can join our newsletter email list by going to https://dontwiden270.org/get-involved and checking the "keep me informed" box. Our website is https://dontwiden270.org/.

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

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). 

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.”