Rushing to Close 50-Year Deal, MDOT Picks Developer to Add Toll Lanes to I-270. We Still Have Time to Stop It!

On February 18, 2021, the Maryland Department of Transportation (MDOT) and the Maryland Transportation Authority (MDTA) announced they selected the private, Australian-based consortium Accelerate Maryland Partners, LLC as the toll-lane project’s Phase 1 Developer. Phase 1 includes I-495 from the George Washington (GW) Parkway in Virginia, across and including the American Legion Bridge to I-270, and I-270 from I-495 to I-70 in Frederick.

As Phase Developer, Accelerate Maryland Partners will oversee the design, financing, construction, and maintenance of the toll lanes for a term of 50 years. It will come up with the actual design for the managed lane project, and the public won’t know the details and commitments until they are announced. The Phase Developer, not MDOT, will be the primary liaison with the public, and will interact and negotiate agreements with affected stakeholders, including the City of Rockville.

Accelerate Maryland Partners, LLC, is a consortium of four firms. The team includes:

• Lead Project Developer/Equity:  Transurban (USA) Operations Inc. and Macquarie Infrastructure.  Transurban is an Australian-owned company operating toll roads in Australia, the United States, and Canada. Macquarie Capital is the principal investment arm of Macquarie Group Limited, an Australian multinational investment bank and financial services company.

• Designers:  Dewberry Engineers, Inc. and Stantec Consulting Services, Inc. Dewberry provides professional engineering services in 17 states and is headquartered in Virginia. Stantec is a Canadian design company with offices worldwide.

• Note: The construction contractor was dropped and no construction contractor has yet been named. That means MDOT moved ahead without knowing anything about the company that will build the toll-lanes!

We will report more information about the Phase Developer and details of their plans as they become available. Recent articles on the selection of the Phase Developer can be found at Dontwiden270.org’s website tab “Media Archives

Action Item 

MDOT must obtain approval from the Maryland Board of Public Works (BPW) for a contract with a Phase Developer to begin pre-development design. For the project to move forward, two of the three BPW members must approve the agreement. Comptroller Peter Franchot is the swing vote.  

Write Comptroller Franchot at pfranchot@comp.state.md.us. Tell him that no P3 agreement should be approved by the BPW until the final environmental impact statement (FEIS) is completed in accordance with NEPA regulations. An FEIS is essential to adequately assess and mitigate impacts to communities and properties, utility conflicts, and environmental consequences, and to develop a design that considers these critical factors. 

As stewards of the State’s finances, the BPW must consider the costs that this project will incur. Governor Hogan promised there would be no net cost to taxpayers for the toll lane project, but MDOT’s own Draft Environmental Impact Statement and Request for Proposals show that’s not true. Tell Comptroller Franchot that Maryland taxpayers could be stuck with hundreds of millions of dollars in expenses and future costs. Refer to our February 7 newsletter for more information on financial concerns.

Please Support our Valued Partner

Some of you, our readers, 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), can accept donations. MTOC is a unique center of technical and policy expertise on transit and equitable transportation and provides us with insight to give you accurate information. 

MTOC uses donations to help cover its website expenses, printing of fliers, and more. To make a donation of any size, online or by check, follow this link: https://transitformaryland.org/contribute. Thank you!

Upcoming Meetings 

• Wednesday, February 24 at 9:00 am:
  Virtual rally and press conference on the MDOT Promises Act and P3 Reform bill. This event is happening a few hours before the MDOT Promises Act will be heard in the Senate Budget & Taxation Committee. Dontwiden270.org is a co-sponsor of this rally. Please sign up for the event here.

• Thursday, February 25 at 9:00 am:
  The Maryland Transportation Authority (MDTA) Board is meeting to discuss the P3 agreement. This is an open meeting conducted via livestreaming, and the public can watch. Here's the agenda for the meeting.
  
  

Short Video Worth Watching

Here's a rather vivid VOX video (6 min) showing how highways grow…are we headed for this with I-270?
https://www.youtube.com/watch?v=2z7o3sRxA5g

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/.