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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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*hb0437*
HOUSE BILL 437
R1, M3 6lr1424
HB 84/25 – APP & ENT CF SB 59
By: Delegates Edelson, Solomon, and Watson
Introduced and read first time: January 22, 2026
Assigned to: Appropriations and Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 27, 2026
CHAPTER ______
AN ACT concerning 1
Transportation – Major Highway Capacity Expansion Projects and Impact 2
Assessments 3
(Transportation and Climate Alignment Act of 2026) 4
FOR the purpose of requiring the Department of Transportation, as part of the planning 5
and implementation of certain ma jor highway expansion projects, to perform an 6
impact assessment of the project and develop and implement a corresponding 7
multimodal transportation program; requiring the Department, beginning with a 8
certain Consolidated Transportation Program, to evaluate certain major capital 9
projects for their impact on greenhouse gas emissions and vehicle miles traveled; 10
requiring, under certain circumstances, the Department to fund offsetting activities 11
to reduce certain project or program impacts on greenhouse gas emissions; requiring 12
the Secretary of Transportation to establish certain processes and post certain 13
information on the Department’s website; requiring the Department and the State 14
Highway Administration to issue a certain report before proceeding to the final 15
project planning phase for certain projects; and generally relating to the planning 16
and development of certain transportation projects. 17
BY adding to 18
Article – Transportation 19
Section 2 –901 through 2 –905 to be under the new subtitle “Subtitle 9. Major 20
Highway Capacity Expansion Projects” 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2025 Supplement) 23
2 HOUSE BILL 437
BY repealing and reenacting, with amendments, 1
Article – Transportation 2
Section 8–102 3
Annotated Code of Maryland 4
(2020 Replacement Volume and 2025 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Transportation 8
SUBTITLE 9. MAJOR HIGHWAY CAPACITY EXPANSION PROJECTS. 9
2–901. 10
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 11
INDICATED. 12
(B) “CARBON DIOXIDE EQUIVA LENT” MEANS THE MEASUREMEN T OF A 13
GIVEN WEIGHT OF A GR EENHOUSE GAS THAT HA S THE SAME GLOBAL WA RMING 14
POTENTIAL, MEASURED OVER A SPEC IFIED PERIOD OF TIME , AS 1 METRIC TON OF 15
CARBON DIOXIDE. 16
(C) “GREENHOUSE GAS” INCLUDES CARBON DIOXIDE, METHANE, NITROUS 17
OXIDE, HYDROFLUOROCARBONS, PERFLUOROCARBONS, AND SULFUR 18
HEXAFLUORIDE. 19
(D) “GREENHOUSE GAS EMISSI ONS” MEANS EMISSIONS OF G REENHOUSE 20
GASES IN THE STATE, MEASURED IN METRIC T ONS OF CARBON DIOXID E 21
EQUIVALENTS. 22
(E) “IMPACT ASSESSMENT ” MEANS AN ASSESSMENT OF A PROJECT ’S OR 23
PROGRAM’S OPERATIONAL IMPACT ON GREENHOUSE GAS EMISSIONS AND VEHICLE 24
MILES TRAVELED. 25
(F) “INDUCED DEMAND” MEANS AN INCREASE IN THE DEMAND FOR MOTOR 26
VEHICLE TRAVEL THAT IS DEMONSTRAT ED BY AN INCREASE IN VEHICLE MILES 27
TRAVELED DUE TO AN INCREASE IN ROADWAY SUPPLY, SUCH AS NEW OR EXPANDED 28
ROADS, ADDITIONAL CAPACITY, OR ADDITIONAL LANE MILES. 29
(G) “MAJOR CAPITAL PROJECT” HAS THE MEANING STATED IN § 2–103.1 OF 30
THIS TITLE. 31
(H) “MAJOR H IGHWAY CAPACITY EXPA NSION PROJECT ” MEANS A MAJOR 32
CAPITAL PROJECT THAT: 33
HOUSE BILL 437 3
(1) THROUGH ALL PHASES IN CREASES HIGHWAY CAPA CITY 1
THROUGH NEW HIGHWAY LANES, GRADE SEPARATIONS INCLUDING INTERCHANGES, 2
OR EXTENDED HIGHWAY LANES; AND 3
(2) HAS A TOTAL COST THAT EXCEEDS $100,000,000. 4
(I) “OVERBURDENED COMMUNITY” HAS THE MEANING STATED IN § 1–701 5
OF THE ENVIRONMENT ARTICLE. 6
(J) “SYSTEM PRESERVATION ACTIVITY” MEANS AN ACTIVITY FO CUSED ON 7
MAINTAINING AND REHA BILITATING EXISTING TRANSPORTATION 8
INFRASTRUCTURE TO ENSURE THE INFRASTRU CTURE REMAINS SAFE , RELIABLE, 9
AND FUNCTIONAL. 10
(K) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 11
1–701 OF THE ENVIRONMENT ARTICLE. 12
(L) “VEHICLE MILES TRAVELED PER CAPITA” MEANS THE TOTAL NUMB ER 13
OF ON –ROAD MILES TRAVELED BY VE HICLES IN A GEOGRAPH IC REGION OVER A 14
1–YEAR PERIOD DIVIDED BY THE POPULATION IN THAT REGION. 15
2–902. 16
THIS SUBTITLE DOES NOT APPLY TO A MAJOR HIGHWAY CAPACITY EXPANSION 17
PROJECT THAT, ON: 18
(1) ON OR BEFORE JUNE 30, 2026: 19
(1) (I) WAS A PART OF THE STATEWIDE TRANSPORTATION 20
IMPROVEMENT PROGRAM THAT RECEIVED FUNDING FOR CONSTRUCTION; 21
(2) (II) WAS FUNDED FOR CONSTR UCTION IN THE CONSOLIDATED 22
TRANSPORTATION PROGRAM; OR 23
(3) (III) COMPLETED THE ENVIRON MENTAL REVIEW PROCES S 24
UNDER THE NATIONAL ENVIRONMENTAL POLICY ACT; OR 25
(2) INCLUDES THE CONSTRUC TION OR RECONSTRUCTI ON OF THE 26
WILLIAM PRESTON LANE, JR. MEMORIAL CHESAPEAKE BAY BRIDGE AND 27
PARALLEL CHESAPEAKE BAY BRIDGE INCLUDING ANY RELATED CONSTRUCTION 28
OR RECONSTRUCTION OF U.S. ROUTE 50 BETWEEN INTERSTATE 97 AND MARYLAND 29
ROUTE 404. 30
4 HOUSE BILL 437
2–903. 1
(A) AS PART OF THE PLANNI NG AND IMPLEMENTATIO N OF A MAJOR 2
HIGHWAY CAPACITY EXPANSION PROJECT, THE DEPARTMENT SHALL PERFORM AN 3
IMPACT ASSESSMENT OF THE PROJECT AND DEVELOP AND IMPLEMEN T A 4
CORRESPONDING MULTIMODAL TRANSPORTATION PROGRAM. 5
(B) (1) DURING PROJECT DEVELO PMENT, THE MULTIMODAL 6
TRANSPORTATION PROGRAM REQUIRED UNDER SUBSECTION (A) OF THIS SECTION 7
SHALL IDENTIFY INVES TMENTS IN TRANSIT , TRANSIT–ORIENTED DEVELOPMENT , 8
TRANSPORTATION DEMAND MANAGEMENT, PEDESTRIAN AND BICYCLE FACILITIES, 9
LAND USE CHANGES , AND OTHER ACTIVITIES SPECIFIED IN § 2–904(C) OF THIS 10
SUBTITLE TO OFFSET THE INCREASE IN GREENHOUSE GAS EMISSIONS ASSOCIATED 11
WITH THE PROJECT. 12
(2) THE MULTIMODAL TRANSPORTATION PROGRAM SHALL FOCUS ON 13
AREAS IN THE FOLLOWING ORDER OF PRIORITY: 14
(I) OVERBURDENED COMMUNIT IES AND UNDERSERVED 15
COMMUNITIES IMPACTED BY THE MAJOR HIGHWAY CAPACITY EXPANSION PROJECT; 16
(II) AREAS WITHIN OR ASSOCIATED WITH AT LEAST ONE OF THE 17
COMMUNITIES IMPACTED BY THE PROJECT; 18
(III) OVERBURDENED COMMUNIT IES AND UNDERSERVED 19
COMMUNITIES ACROSS THE STATE; 20
(IV) THE REGION IN WHICH THE MAJOR HIGHWAY CAPACI TY 21
EXPANSION PROJECT IS LOCATED; AND 22
(V) THE STATE AT LARGE. 23
(C) (1) THE MULTIMODAL TRANSP ORTATION PROGRAM SHA LL OFFSET 24
THE GREENHOUSE GAS E MISSIONS ASSOCIATED WITH THE MAJOR HIGHWAY 25
CAPACITY EXPANSION PROJECT. 26
(2) THE NET GREENHOUSE GAS EMISSIONS FROM THE PROJECT AND 27
ITS ASSOCIATED MULTI MODAL TRANSPORTATION PROGRAM SHALL BE ZER O OR A 28
NEGATIVE NUMBER. 29
(D) THE DEPARTMENT SHALL CONS IDER BOTH THE MAJOR HIGHWAY 30
CAPACITY EXPANSION P ROJECT AND THE MULTI MODAL TRANSPORTATION 31
PROGRAM AS PART OF ITS EVALUATION OF THE PROJECT UNDER § 2–103.7 OF THIS 32
TITLE. 33
HOUSE BILL 437 5
(E) THE DEPARTMENT SHALL: 1
(1) FUND ELEMENTS OF THE MULTIMODA L TRANSPORTATION 2
PROGRAM CONCURRENTLY WITH FUNDING FOR THE CONSTRUCTION OF THE MAJOR 3
HIGHWAY CAPACITY EXPANSION PROJECT; OR 4
(2) DEFER THE MAJOR HIGHW AY EXPANSION CAPACIT Y PROJECT 5
UNTIL THE PROJECT MEETS THE OFFSETTING REQUIREMENTS FOR A MULTIMODAL 6
TRANSPORTATION PROGRAM UNDER THIS SUBTITLE. 7
2–904. 8
(A) (1) BEGINNING WITH THE CONSOLIDATED TRANSPORTATION 9
PROGRAM FOR FISCAL YE AR 2028 THROUGH FISCAL YEAR 2033 AND IN EACH 10
ANNUAL RELEASE THERE AFTER, THE DEPARTMENT SHALL EVAL UATE MAJOR 11
CAPITAL PROJECTS INCL UDED IN THE CONSOLIDATED TRANSPORTATION 12
PROGRAM FOR THEIR IMPACT ON: 13
(I) GREENHOUSE GAS EMISSIONS; AND 14
(II) VEHICLE MILES TRAVELED PER CAPITA. 15
(2) THE EVALUATION REQUIR ED UNDER PARAGRAPH (1) OF THIS 16
SUBSECTION SHALL BE PUBLISHED FOR THE DR AFT CONSOLIDATED 17
TRANSPORTATION PROGRAM BY OCTOBER 1 EACH YEAR , AND WITH THE FINAL 18
CONSOLIDATED TRANSPORTATION PROGRAM EACH YEAR. 19
(B) (1) BEGINNING WITH THE CONSOLIDATED TRANSPORTATION 20
PROGRAM FOR FISCAL YE AR 2028 THROUGH FISCAL YEAR 2033 AND IN EACH 21
ANNUAL RELEASE THERE AFTER, THE DEPARTMENT SHALL ACHI EVE, TO THE 22
MAXIMUM EXTENT PRACT ICABLE AND SUBJECT T O STATE APPROPRIATIONS , A 23
PROGRAM WHOSE IMPACT ON GREENHOUSE GAS EM ISSIONS AND PROGRESS 24
TOWARD ACHIEVING GRE ENHOUSE GAS REDUCTIO N TARGE TS ARE , OVER THE 25
CONSOLIDATED TRANSPORTATION PROGRAM PERIOD , CONSISTENT WITH THE 26
PROJECTED GREENHOUSE GAS EMISSION REDUCTI ONS MODELED FOR ROAD S IN 27
MARYLAND’S CLIMATE POLLUTION REDUCTION PLAN: MODELING APPENDIX. 28
(2) THE DEPARTMENT SHALL FUND OFFSETTING A CTIVITIES TO 29
MAKE THE CONSOLIDATED TRANSPORTATION PROGRAM MORE CONSISTENT WITH 30
THE GREENHOUSE GAS E MISSION REDUCTION GO ALS UNDER THE DEPARTMENT’S 31
2023 CLIMATE POLLUTION REDUCTION PLAN AND THE TARGETS ESTABLISHED IN 32
SUBSECTION (D) OF THIS SECTION. 33
6 HOUSE BILL 437
(C) THE OFFSETTING ACTIVITIES REQUIRED UNDER SUBSECTIONS (A) AND 1
(B) OF THIS SECTION ARE ACTIVITIES THAT: 2
(1) DEMONSTRABLY CREATE CONSISTENT, LONG–TERM REDUCTIONS 3
IN GREENHOUSE GAS EMISSIONS OR VEHICLE MILES TRAVELED; 4
(2) PRIORITIZE OVERBURDENED AND UNDERSERVED COMMUNITIES; 5
(3) ARE ELIGIBLE FOR FUND ING UNDER SUBSECTION (A) OR (B) OF 6
THIS SECTION; AND 7
(4) INCLUDE: 8
(I) PARKING REDUCTION INITIATIVES; 9
(II) ACTIVE TRANSPORTATION; 10
(III) TRANSIT–ORIENTED DEVELOPMENT AND 11
TRANSPORTATION DEMAND MANAGEMENT STRATEGIES; 12
(IV) LOW–TRAVEL–DEMAND COMMERCIAL AN D RESIDENTIAL 13
DEVELOPMENT AND OTHER LAND USE CHANGES; 14
(V) ROADWAY PRICING; 15
(VI) TELECOMMUTING; 16
(VII) PUBLIC TRANSIT SERVIC E IMPROVEMENTS AND 17
EXPANSION; 18
(VIII) MICRO–MOBILITY, INCLUDING THROUGH TH E USE OF 19
ADAPTIVE AND INCLUSIVE LOW SPEED VEHICLES FOR PEOPLE WITH DISABILITIES; 20
(IX) ACCESSIBLE TRANSPORTA TION AND PEDESTRIAN 21
IMPROVEMENTS FOR PEOPLE WITH DISABILITIES; 22
(X) SOLAR ENERGY GENERATI ON ON PROPERTY CONTR OLLED 23
BY THE DEPARTMENT; AND 24
(XI) OTHER ACTIVITIES IDEN TIFIED BY THE DEPARTMENT TO 25
REDUCE VEHICLE MILES TRAVELED. 26
(D) TO ACHIEVE THE REQUIR EMENTS UNDER THIS SE CTION, THE 27
DEPARTMENT SHALL SET: 28
HOUSE BILL 437 7
(1) ANNUAL STATEWIDE DECLINING GREENHOUSE GAS EMISSION 1
REDUCTION TAR GETS THAT INCORPORAT E ASSUMPTIONS ABOUT THE USE OF 2
ELECTRIC VEHICLES IN THE STATE; AND 3
(2) ANNUAL REGIONAL DECLI NING GREENHOUSE GAS EMISSION 4
REDUCTION TARGETS THAT: 5
(I) ARE SET AT AN AMOUNT THAT WHEN MET AND TA KEN 6
COLLECTIVELY FOR ALL REGIONS WOULD ACHIEVE THE REQUIREMENTS SPECIFIED 7
IN § 2–903(C)(2) OF THIS SUBTITLE AND THE STATEWIDE TARGETS SET UNDER ITEM 8
(1) OF THIS ITEM; AND 9
(II) INCORPORATE ASSUMPTIONS ABOUT THE USE OF ELECTRIC 10
VEHICLES IN THE STATE. 11
(E) IN EVALUATING THE CONSOLIDATED TRANSPORTATION PROGRAM’S 12
IMPACT ON GREENHOUSE GAS EMISSIONS AND VE HICLE MILES TRAVELED , THE 13
DEPARTMENT SHALL: 14
(1) ESTABLISH THE BASELIN E TOTAL GREENHOUSE G AS EMISSIONS 15
ATTRIBUTABLE TO SURF ACE TRANSPORTATION I N THE STATE FOR THE 16
CONSOLIDATED TRANSPORTATION PROGRAM PERIOD; 17
(2) CONSIDER THE DIRECT A ND INDUCED DEMAND IM PACTS OF 18
MAJOR CAPITAL PROJECTS ON VEHICLE MILES TRAVEL ED PER CAPITA AND 19
GREENHOUSE GAS EMISSIONS; 20
(3) CONSIDER THE DIRECT CLIMATE BENEFITS OF INVESTMENTS IN: 21
(I) TRANSIT OPERATIONS , INCLUDING LOCALLY OPER ATED 22
TRANSIT SYSTEMS; 23
(II) TRANSIT–ORIENTED DEVELOPMENT AND 24
TRANSPORTATION DEMAN D MANAGEMENT , INCLUDING LAND DEVEL OPMENT 25
DESIGNED TO REDUCE TRAVEL DEMAND; 26
(III) PEDESTRIAN AND BICYCLE INFRASTRUCTURE; 27
(IV) ELECTRIFICATION OF STATE VEHICLES; 28
(V) VEHICLE CHARGING INFRASTRUCTURE; AND 29
(VI) SOLAR ENERGY GENERATI ON ON PROPERTY CONTR OLLED 30
BY THE DEPARTMENT; AND 31
8 HOUSE BILL 437
(4) COMPARE THE PROJECTED GREENHOUSE GAS EMISSIONS TO THE 1
TARGET EMISSIONS EST ABLISHED IN SUBSECTI ON (D) OF THIS SECTION TO 2
DETERMINE WHETHER TH E CONSOLIDATED TRANSPORTATION PROGRAM 3
ACHIEVES THE EMISSIONS TARGETS. 4
(F) IN EVALUATING WHETHER THE CONSOLIDATED TRANSPORTATION 5
PROGRAM MEETS GREENHOUSE GAS EMISSION GOALS, THE DEPARTMENT MAY NOT 6
CONSIDER STATE OF GO OD REPAIR ACTIVITIES AND A CTIVITIES THAT ARE S OLELY 7
SYSTEM PRESERVATION ACTIVITIES. 8
2–905. 9
(A) THE SECRETARY SHALL: 10
(1) ESTABLISH A PROCESS T O PERFORM CAPACITY E XPANSION 11
IMPACT ASSESSMENTS; 12
(2) ESTABLISH A PROCESS F OR CONSIDERING PROGR ESS MADE 13
TOWARD MEETING THE TARGETS SPECIFIED IN § 2–904(D) OF THIS SUBTITLE; 14
(3) ESTABLISH A PROCESS F OR DEVELOPING A MULT IMODAL 15
TRANSPORTATION PROGR AM UNDER § 2–903 OF THIS SUBTITLE , INCLUDING A 16
METHOD FOR CONSIDERING THE DIRE CT AND INDUCED DEMAN D IMPACTS OF A 17
MAJOR HIGHWAY CAPACITY EXPANSION PROJECT; AND 18
(4) PUBLISH ON THE DEPARTMENT’S WEBSITE: 19
(I) THE PROCESSES ESTABLISHED UNDER ITEMS (2) AND (3) OF 20
THIS SUBSECTION; AND 21
(II) ANY MULTIMODAL TRAN SPORTATION PROGRAM 22
DEVELOPED UNDER § 2–903 OF THIS SUBTITLE. 23
(B) IN FISCAL YEAR 2028, THE DEPARTMENT SHALL ALLO CATE FUNDING 24
FOR THE IMPLEMENTATI ON AND DEVELOPMENT O F STATEWIDE AND REGI ONAL 25
TRAVEL DEMAND MODELI NG RELATED TO THE RE QUIREMENTS OF THIS S ECTION, 26
INCLUDING INDUCED DE MAND AND LAND USE EF FECTS FROM TRANSPORT ATION 27
INVESTMENTS. 28
8–102. 29
(a) It is the policy of this title to promote an efficient and economical 30
transportation system. 31
HOUSE BILL 437 9
(b) The Department [of Transportation] and the [State Highway] Administration 1
may not proceed to the final project planning phase unless it has been determined that the 2
objective of the proposed project cannot be reasonably achieved through: 3
(1) Improvements in highway maintenance and safety; 4
(2) Projects that modify existing highways but provide for minimal 5
relocation or new highway construction; and 6
(3) Improvements in, or adoption of, transit alternatives, including mass 7
transit alternatives. 8
(C) THE DEPARTMENT AND THE ADMINISTRATION SHALL ISSUE A REPORT 9
PRIOR TO PROCEEDING TO THE FINAL PROJECT PLANNING PHASE THAT 10
DOCUMENTS: 11
(1) THE EVALUATION OF THE ALTERNATIVES IDENTIF IED IN 12
SUBSECTION (B) OF THIS SECTION; OR 13
(2) A DETERMINATION THROUG H OTHER REQUIRED PLA NNING 14
DOCUMENTS. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2026. 17
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.