EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0395* SENATE BILL 395 R1, M3 5lr2572 CF HB 84 By: Senators Hettleman and Gile Introduced and read first time: January 17, 2025 Assigned to: Budget and Taxation A BILL ENTITLED AN ACT concerning 1 Transportation – Major Highway Capacity Expansion Projects and Impact 2 Assessments 3 (Transportation and Climate Alignment Act of 2025) 4 FOR the purpose of requiring the Department of Transportation, as part of the planning 5 and implementation of certain major highway expansion projects to develop and 6 implement a corresponding multimodal transportation program; requiring the 7 Department beginning with the Consolidated Transportation Program to evaluate 8 certain major capital projects for their impact on greenhouse gas emissions and 9 vehicle miles traveled; requiring, under certain circumstances, the Department to 10 fund offsetting activities to reduce certain project or program impacts on greenhouse 11 gas emissions and vehicle miles traveled; requiring the Secretary of Transportation 12 to perform certain capacity expansion impact assessments; requiring the 13 Department and the State Highway Administration to issue a certain report before 14 proceeding to the final project planning phase for certain projects; and generally 15 relating to the planning and development of certain transportation projects. 16 BY adding to 17 Article – Transportation 18 Section 2–901 through 2–905 to be under the new subtitle “Subtitle 9. Major 19 Highway Capacity Expansion Projects” 20 Annotated Code of Maryland 21 (2020 Replacement Volume and 2024 Supplement) 22 BY repealing and reenacting, with amendments, 23 Article – Transportation 24 Section 8–102 25 Annotated Code of Maryland 26 (2020 Replacement Volume and 2024 Supplement) 27 2 SENATE BILL 395 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Transportation 3 SUBTITLE 9. MAJOR HIGHWAY CAPACITY EXPANSION PROJECTS. 4 2–901. 5 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANIN GS 6 INDICATED. 7 (B) “CARBON DIOXIDE EQUIVA LENT” MEANS THE MEASUREMEN T OF A 8 GIVEN WEIGHT OF A GR EENHOUSE GAS THAT HA S THE SAME GLOBAL WA RMING 9 POTENTIAL, MEASURED OVER A SPEC IFIED PERIOD OF TIME , AS 1 METRIC TON OF 10 CARBON DIOXIDE . 11 (C) “GREENHOUSE GAS ” INCLUDES CARBON DIOXID E, METHANE, NITROUS 12 OXIDE, HYDROFLUOROCARBONS , PERFLUOROCARBONS , AND SULFUR 13 HEXAFLUORIDE . 14 (D) “GREENHOUSE GAS EMISSI ONS” MEANS EMISSIONS OF G REENHOUSE 15 GASES IN THE STATE, MEASURED IN METRIC T ONS OF CARBON DIOXID E 16 EQUIVALENTS . 17 (E) “IMPACT ASSESSMENT ” MEANS AN ASSESSMENT OF A PROJECT ’S OR 18 PROGRAM’S IMPACT ON GREENHOU SE GAS EMISSIONS AND VEHICLE MILES 19 TRAVELED. 20 (F) “INDUCED DEMAND ” MEANS THE VOLUME OF TRAFFIC THAT IS DRAW N 21 TO A NEW OR EXPANDED ROAD BY PROVIDING AD DITIONAL CAPACITY , INCLUDING 22 FROM: 23 (1) TRIPS DIVERTED FROM O THER ROUTES ; 24 (2) DISCRETIONARY TRIPS T HAT MAY NOT HAVE BEE N MADE 25 WITHOUT IMPROVEMENT ; AND 26 (3) IMPROVED ACCESS TO EM PLOYMENT AND OTHER A CTIVITY 27 LOCATION CHOICES . 28 (G) “MAJOR CAPITAL PROJECT ” HAS THE MEANIN G STATED IN § 2–103.1 OF 29 THIS TITLE. 30 SENATE BILL 395 3 (H) “MAJOR HIGHWAY CAPACIT Y EXPANSION PROJECT ” MEANS A MAJOR 1 CAPITAL PROJECT THAT : 2 (1) THROUGH ALL PHASES IN CREASES HIGHWAY CAPA CITY 3 THROUGH NEW HIGHWAY LANES OR EXTENDED HI GHWAY LANES ; AND 4 (2) HAS A TOTAL COST FOR ALL PHASES THAT EXCEEDS $5,000,000. 5 (I) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 1–701 6 OF THE ENVIRONMENT ARTICLE. 7 (J) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 1–701 OF 8 THE ENVIRONMENT ARTICLE. 9 (K) “VEHICLE MILES TRAVELE D PER CAPITA” MEANS THE TOTAL NUMB ER 10 OF ON–ROAD MILES TRAVELED BY VEHICLES IN A GEO GRAPHIC REGION OVER A 11 1–YEAR PERIOD DIVIDED BY THE POPULATION IN THAT REGION. 12 2–902. 13 THIS SUBTITLE DOES NO T APPLY TO A MAJOR H IGHWAY CAPACITY EXPA NSION 14 PROJECT THAT ON OR BEFORE JUNE 30, 2025, WAS: 15 (1) A PART OF THE STATEWIDE TRANSPORTATION IMPROVEMENT 16 PROGRAM; OR 17 (2) FUNDED FOR CONSTRUCTI ON IN THE CONSOLIDATED 18 TRANSPORTATION PROGRAM. 19 2–903. 20 (A) AS PART OF THE PLANNI NG AND IMPLEMENTATIO N OF A MAJOR 21 HIGHWAY EXPANSIO N PROJECT , THE DEPARTMENT SHALL DEVE LOP AND 22 IMPLEMENT A CORRESPO NDING MULTIMODAL TRA NSPORTATION PROGRAM FOR 23 THE PROPOSED HIGHWAY CORRIDOR EXPANSION . 24 (B) (1) DURING DEVELOPMENT OF THE MAJOR HIGHWAY CA PACITY 25 EXPANSION PROJECT , THE MULTIMODAL TRANS PORTATION PROGRAM REQUIRED 26 UNDER SUBSECTION (A) OF THIS SECTION SHAL L IDENTIFY INVESTMEN TS IN 27 TRANSIT, TRANSIT–ORIENTED DEVELOPMENT , TRANSPORTATION DEMAN D 28 MANAGEMENT , PEDESTRIAN AND BICYC LE FACILITIES, LAND USE CHANGES , AND 29 OTHER MEASURES TO OF FSET THE INCREASE IN VEHICLE MILES TRAVEL ED 30 ASSOCIATED WITH THE PROJECT. 31 4 SENATE BILL 395 (2) THE PROGRAM SHALL FOC US ON AREAS IN THE F OLLOWING 1 ORDER OF PRIORITY : 2 (I) OVERBURDENED COMMUNIT IES AND UNDERSERVED 3 COMMUNITIES IMPACTED BY THE MAJOR HIGHWAY CAPACITY EXPANSION P ROJECT; 4 (II) AREAS WITHIN OR ASSOC IATED WITH AT LEAST ONE OF THE 5 COMMUNITIES IMPACTED BY THE PROJECT ; 6 (III) OVERBURDENED COMMUNIT IES AND UNDERSERVED 7 COMMUNITIES ACROSS T HE STATE; 8 (IV) OVERBURDENED COMMUNIT IES AND UNDERSERVED 9 COMMUNITIES IN THE R EGION IN WHICH T HE MAJOR HIGHWAY CAP ACITY 10 EXPANSION PROJECT IS LOCATED; AND 11 (V) BENEFITS TO THE ENTIR E STATE. 12 (C) (1) THE MULTIMODAL TRANSP ORTATION PROGRAM SHA LL OFFSET 13 THE VEHICLE MILES TR AVELED ASSOCIATED WI TH THE MAJOR HIGHWAY CAPACITY 14 EXPANSION PROJECT . 15 (2) THE NET VEHICLE MILES TRAVELED FROM THE PR OJECT AND ITS 16 ASSOCIATED MULTIMODA L TRANSPORTATION PRO GRAM SHALL EQUAL ZER O OR A 17 NUMBER LESS THAN ZER O. 18 (D) THE DEPARTMENT SHALL CONS IDER BOTH THE MAJOR HIGHWAY 19 CAPACITY EXPANSION P ROJECT AND THE MULTI MODAL TRANS PORTATION OFFSET 20 PROGRAM AS PART OF I TS EVALUATION OF THE PROJECT UNDER § 2–103.7 OF THIS 21 TITLE. 22 (E) THE DEPARTMENT SHALL FUND ELEMENTS OF THE MULT IMODAL 23 TRANSPORTATION PROGR AM CONCURRENTLY WITH FUNDING FOR THE 24 CONSTRUCTION OF THE MAJOR HIGHWAY CAPACI TY EXPANSION PROJECT . 25 2–904. 26 (A) (1) BEGINNING WITH THE CONSOLIDATED TRANSPORTATION 27 PROGRAM FOR FISCAL YE AR 2027 THROUGH FISCAL YEAR 2032 AND IN EACH 28 ANNUAL RELEASE THERE AFTER, THE DEPARTMENT SHALL EVAL UATE MAJOR 29 CAPITAL PROJECTS INC LUDED IN THE CONSOLIDAT ED TRANSPORTATION 30 PROGRAM FOR THEIR IMP ACT ON: 31 SENATE BILL 395 5 (I) GREENHOUSE GAS EMISSI ONS; AND 1 (II) VEHICLE MILES TRAVELE D PER CAPITA. 2 (2) IF THE NET IMPACT OF A MAJOR CAPITAL PROJ ECT IS AN 3 INCREASE IN GREENHOU SE GAS EMISSIONS , THE STATE SHALL FUND OFFS ETTING 4 ACTIVITIES TO REDUCE THE NET GREENHOUSE G AS EMISSIONS TO ZERO OR A 5 NUMBER LESS THAN ZER O. 6 (3) THE EVALUATION REQUIR ED UNDER PARAGRAPH (1) OF THIS 7 SUBSECTION SHALL BE PUBLISHED FOR THE DR AFT CONSOLIDATED 8 TRANSPORTATION PROGRAM BY OCTOBER 1 EACH YEAR, AND WITH THE FINAL 9 CONSOLIDATED TRANSPORTATION PROGRAM EACH YEAR . 10 (B) (1) BEGINNING WITH THE CONSOLIDATED TRANSPORTATION 11 PROGRAM FOR FISCAL YE AR 2027 THROUGH FISCAL YEAR 2032 AND IN EACH 12 ANNUAL RELEASE THERE AFTER, THE DEPARTMENT SHALL ACHI EVE, TO THE 13 MAXIMUM EXTENT PRACTICABL E AND SUBJECT TO THE STATE BUDGET, A PROGRAM 14 WHOSE IMPACT ON GREE NHOUSE GAS EMISSIONS IS CONSISTENT WITH , AND MAKES 15 PROGRESS TOWARD ACHI EVING GREENHOUSE GAS REDUCTION TARGETS 16 CONSISTENT WITH THE STATE’S CARBON POLLUTION R EDUCTION PLAN OVER THE 17 CONSOLIDATED TRANSPORTATION PROGRAM PERIOD . 18 (2) THE DEPARTMENT MAY FUND O FFSETTING ACTIVITIES TO MAKE 19 THE CONSOLIDATED TRANSPORTATION PROGRAM MORE CONSISTE NT WITH THE 20 GREENHOUSE GAS EMISS ION REDUCTION GOALS UNDER THE STATE’S CARBON 21 POLLUTION R EDUCTION PLAN OR TO INCREASE PROGR ESS TOWARD THOSE GOA LS. 22 (C) THE OFFSETTING ACTIVI TIES REQUIRED UNDER SUBSECTIONS (A) AND 23 (B) OF THIS SECTION ARE ACTIVITIES THAT: 24 (1) DEMONSTRABLY CREATE C ONSISTENT, LONG–TERM REDUCTIONS 25 IN GREENHOUSE GAS EM ISSIONS OR VEHICLE MILES TRA VELED; 26 (2) PRIORITIZE OVERBURDEN ED AND UNDERSERVED C OMMUNITIES; 27 AND 28 (3) INCLUDE: 29 (I) PARKING REDUCTION INI TIATIVES; 30 (II) ACTIVE TRANSPORTATION ; 31 6 SENATE BILL 395 (III) TRANSPORTATION DEMAND MANAGEMENT STRATEGIE S; 1 (IV) LOW–TRAVEL–DEMAND COMMERCIAL AN D RESIDENTIAL 2 DEVELOPMENT AND OTHE R LAND USE CHANGES ; 3 (V) ROADWAY PRICING ; 4 (VI) TELECOMMUTING ; 5 (VII) PUBLIC TRANSIT SERVIC E IMPROVEMENTS AND 6 EXPANSION; 7 (VIII) MICRO–MOBILITY; 8 (IX) ACCESSIBLE TRANSPORTA TION IMPROVEMENTS THAT 9 COMPLY WITH THE AMERICANS WITH DISABILITIES ACT; 10 (X) ALTERNATIVE ENERGY GE NERATION; AND 11 (XI) OTHER ACTIVITIES IDEN TIFIED BY THE DEPARTMENT OR 12 THE U.S. DEPARTMENT OF TRANSPORTATION TO RED UCE TRANSPORTATION 13 EMISSIONS. 14 (D) TO ACHIEVE THE REQUIR EMENTS UNDER THIS SE CTION, THE 15 DEPARTMENT SHALL SET ANNUAL DECLINING GRE ENHOUSE GAS EMISSION 16 REDUCTION TARGETS TH AT INCORPORATE ASSUM PTIONS ABOUT THE USE OF 17 ELECTRIC VEHICLES IN THE STATE. 18 (E) IN EVALUATING THE CONSOLIDATED TRANSPORTATION PROGRAM’S 19 IMPACT ON GREENHOUSE GAS EMISS IONS AND VEHICLE MIL ES TRAVELED , THE 20 DEPARTMENT SHALL : 21 (1) ESTABLISH THE BASELIN E TOTAL GREENHOUSE G AS EMISSIONS 22 ATTRIBUTABLE TO SURF ACE TRANSPORTATION I N THE STATE FOR THE 23 CONSOLIDATED TRANSPORTATION PROGRAM PERIOD ; 24 (2) CONSIDER THE DIRECT A ND INDUCED DEMAND IM PACTS OF 25 HIGHWAY CAPACITY EXP ANSION PROJECTS AND TRANSIT CAPITAL PROJ ECTS ON 26 VEHICLE MILES TRAVEL ED PER CAPITA AND GREENHOUSE GAS E MISSIONS; 27 (3) CONSIDER THE DIRECT BENEFI TS OF INVESTMENTS IN : 28 SENATE BILL 395 7 (I) TRANSIT OPERATIONS , INCLUDING LOCALLY OP ERATED 1 TRANSIT SYSTEMS ; 2 (II) TRANSIT–ORIENTED DEVELOPMENT AND 3 TRANSPORTATION DEMAN D MANAGEMENT , INCLUDING LAND DEVEL OPMENT 4 DESIGNED TO REDUCED TRAVEL DEMAND ; 5 (III) PEDESTRIAN AND BICYCL E INFRASTRUCTURE ; 6 (IV) ELECTRIFICATION OF STATE VEHICLES ; 7 (V) VEHICLE CHARGING INFR ASTRUCTURE ; AND 8 (VI) ALTERNATIVE ENERGY GE NERATION; AND 9 (4) COMPARE THE PROJECTED GREENHOUSE GAS EMISS IONS TO THE 10 TARGET EMISSIONS ESTABLISHED IN SUBSE CTION (C) OF THIS SECTION TO 11 DETERMINE WHETHER TH E CONSOLIDATED TRANSPORTATION PROGRAM 12 ACHIEVES THE EMISSIO NS TARGETS. 13 (F) IN EVALUATING WHETHER THE CONSOLIDATED TRANSPORTATION 14 PROGRAM MEETS GREENHOUSE GAS EMISS ION GOALS, THE DEPARTMENT MAY NOT 15 CONSIDER STATE OF GO OD REPAIR ACTIVITIES AND ACTIVITIES THAT ARE SOLELY 16 FOR SYSTEM PRESERVATION . 17 2–905. 18 (A) THE SECRETARY SHALL : 19 (1) ESTABLISH A PROCESS T O PERFORM CAPACITY E XPANSION 20 IMPACT ASSESSMENTS ; 21 (2) REQUIRE THE USE OF AN IMPACT ASSESSMENT IN THE 22 DETERMINATIONS REQUI RED UNDER §§ 2–903 AND 2–904 OF THIS SUBTITLE; AND 23 (3) IMPLEMENT THE REQUIRE MENTS UNDER THIS SEC TION, 24 INCLUDING BY ESTABLI SHING: 25 (I) ANY NECESSARY POLICIE S, PROCEDURES , MANUALS, AND 26 TECHNICAL SPECIFICATIONS ; 27 8 SENATE BILL 395 (II) PROCEDURES TO PERFORM AN IMPACT ASSESSMENT THAT 1 PROVIDES FOR THE DET ERMINATIONS REQUIRED UNDER §§ 2–902 AND 2–903 OF 2 THIS SUBTITLE; 3 (III) CRITERIA FOR IDENTIFI CATION OF A CAPACITY EXPANSION 4 PROJECT; AND 5 (IV) RELATED DA TA REPORTING FROM LO CAL UNITS OF 6 GOVERNMENT ON LOCAL MULTIMODAL TRANSPORT ATION SYSTEMS AND LO CAL 7 PROJECT IMPACTS ON G REENHOUSE GAS EMISSI ONS AND VEHICLE MILE S 8 TRAVELED. 9 (B) AN ANALYSIS UNDER A C APACITY EXPANSION IM PACT ASSESSMENT 10 SHALL INCLUDE ESTIMA TES RESULTING FROM A PRO JECT OR PORTFOLIO OF 11 PROJECTS FOR THE FOL LOWING: 12 (1) GREENHOUSE GAS EMISSI ONS OVER A PERIOD OF 20 YEARS; 13 (2) A NET CHANGE IN VEHICL E MILES TRAVELED FOR THE AFFECTED 14 NETWORK; AND 15 (3) IMPACTS TO STATE HIGHWAYS AND RE LATED IMPACTS TO LOCAL 16 ROAD SYSTEMS , ON A LOCAL, REGIONAL, OR STATEWIDE BASIS A S APPROPRIATE . 17 (C) THE ANALYSIS AND ESTI MATES SPECIFIED UNDE R SUBSECTION (B) OF 18 THIS SECTION SHALL B E DETERMINED USING T HE BEST AVAILABLE DA TA AND 19 MODELING TOOLS , SUCH AS: 20 (1) THE NATIONAL CENTER FOR SUSTAINABLE TRANSPORTATION ’S 21 INDUCED TRAVEL CALCU LATOR; 22 (2) THE STATE HIGHWAY INDUCED FREQUENCY OF TRAVEL 23 CALCULATOR; 24 (3) THE CAMBRIDGE SYSTEMATICS TRANSPORTATION EFFICIENCY 25 AND CARBON REDUCTION TOOL; OR 26 (4) ANY OTHER IMPACT ASSESSMENT TOOL USED FOR MEASURING 27 INDUCED DEMAND FOR G RADE SEPARATION PROJ ECTS. 28 (D) IN FISCAL YEAR 2025, THE DEPARTMENT SHALL ALLO CATE FUNDING 29 FOR THE IMPLEMENTATI ON AND DEVELOPMENT O F STATEWIDE AND REGI ONAL 30 TRAVEL DEMAND MODELI NG RELATED TO THE RE QUIREMENTS OF THIS SECTIO N, 31 SENATE BILL 395 9 INCLUDING INDUCED DE MAND AND LAND USE EF FECTS FROM TRANSPORT ATION 1 INVESTMENTS . 2 8–102. 3 (a) It is the policy of this title to promote an efficient and economical 4 transportation system. 5 (b) The Department [of Transportation] and the [State Highway] Administration 6 may not proceed to the final project planning phase unless it has been determined that the 7 objective of the proposed project cannot be reasonably achieved through: 8 (1) Improvements in highway maintenance and safety; 9 (2) Projects that modify existing highways but provide for minimal 10 relocation or new highway construction; and 11 (3) Improvements in, or adoption of, transit alternatives, including mass 12 transit alternatives. 13 (C) THE DEPARTMENT AND THE ADMINISTRATION SHA LL ISSUE A REPORT 14 PRIOR TO PROCEEDING TO THE FINAL PROJECT PLANNING PHASE THAT 15 DOCUMENTS : 16 (1) THE EVALUATION OF THE ALTERNATIVES IDENTIF IED IN 17 SUBSECTION (B) OF THIS SECTION; OR 18 (2) A DETERMINATION THROUG H OTHER REQUIRED PLA NNING 19 DOCUMENTS . 20 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21 1, 2025. 22