Transportation - Major Highway Capacity Expansion Projects and Impact Assessments (Transportation and Climate Alignment Act of 2026)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0059*

SENATE BILL 59
R1, M3 6lr1547
SB 395/25 – B&T (PRE–FILED) CF 6lr1424
By: Senator Hettleman
Requested: October 31, 2025
Introduced and read first time: January 14, 2026
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 2026) 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 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

BY repealing and reenacting, with amendments, 24
Article – Transportation 25
Section 8–102 26
Annotated Code of Maryland 27
(2020 Replacement Volume and 2025 Supplement) 28
2 SENATE BILL 59

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 MEANINGS 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 DIOXIDE, 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 OPERATIONAL IMPACT ON GREENHOUSE GAS EMISSIONS AND VEHICLE 19
MILES TRAVELED. 20

(F) “INDUCED DEMAND” MEANS AN INCREASE IN THE DEMAND FOR MOTOR 21
VEHICLE TRAVEL THAT IS DEMONSTRATED BY A N INCREASE IN VEHICL E MILES 22
TRAVELED DUE TO AN INCREASE IN ROADWAY SUPPLY, SUCH AS NEW OR EXPANDED 23
ROADS, ADDITIONAL CAPACITY, OR ADDITIONAL LANE MILES. 24

(G) “MAJOR CAPITAL PROJECT” HAS THE MEANING STATED IN § 2–103.1 OF 25
THIS TITLE. 26

(H) “MAJOR HIGHWAY CAPACIT Y EXPANSION PROJECT ” MEANS A MAJOR 27
CAPITAL PROJECT THAT: 28

(1) THROUGH ALL PHASES IN CREASES HIGHWAY CAPA CITY 29
THROUGH NEW HIGHWAY LANES, GRADE SEPARATIONS INCLUDING INTERCHANGES, 30
OR EXTENDED HIGHWAY LANES; AND 31

SENATE BILL 59 3

(2) HAS A TOTAL COST THAT EXCEEDS $100,000,000. 1

(I) “OVERBURDENED COMMUNITY” HAS THE MEANING STATED IN § 1–701 2
OF THE ENVIRONMENT ARTICLE. 3

(J) “SYSTEM PRESERVATION ACTIVITY” MEANS AN ACTIVITY FO CUSED ON 4
MAINTAINING AND REHA BILITATING EXISTING TRANSPORTATION 5
INFRASTRUCTURE TO EN SURE THE INFRASTRUCT URE REMAINS SAFE , RELIABLE, 6
AND FUNCTIONAL. 7

(K) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 8
1–701 OF THE ENVIRONMENT ARTICLE. 9

(L) “VEHICLE MILES TRAVELED 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 NOT APPLY TO A MAJOR HIGHWAY CAPACITY EXPANSION 14
PROJECT THAT, ON OR BEFORE JUNE 30, 2026: 15

(1) WAS A PART OF THE STATEWIDE TRANSPORTATION 16
IMPROVEMENT PROGRAM THAT RECEIVED FUNDING FOR CONSTRUCTION; 17

(2) WAS FUNDED FOR CONSTR UCTION IN THE CONSOLIDATED 18
TRANSPORTATION PROGRAM; OR 19

(3) COMPLETED THE ENVIRONMENTAL REVIEW PROCESS UNDER THE 20
NATIONAL ENVIRONMENTAL POLICY ACT. 21

2–903. 22

(A) AS PART OF THE PLANNI NG AND IMPLEMENTATIO N OF A MAJOR 23
HIGHWAY CAPACITY EXPANSION PROJECT, THE DEPARTMENT SHALL PERFORM AN 24
IMPACT ASSESSMENT OF THE PROJECT AND DEVELOP AND IMPLEMEN T A 25
CORRESPONDING MULTIMODAL TRANSPORTATION PROGRAM. 26

(B) (1) DURING PROJECT DEVELO PMENT, THE MULTIMODAL 27
TRANSPORTATION PROGRAM REQUIRED UNDER SUBSECTION (A) OF THIS SECTION 28
SHALL IDENTIFY INVESTM ENTS IN TRANSIT , TRANSIT–ORIENTED DEVELOPMENT , 29
TRANSPORTATION DEMAND MANAGEMENT, PEDESTRIAN AND BICYCLE FACILITIES, 30
LAND USE CHANGES , AND OTHER ACTIVITIES SPECIFIED IN § 2–904(C) OF THIS 31
4 SENATE BILL 59

SUBTITLE TO OFFSET THE INCREASE IN GREENHOUSE GAS EMISSIONS ASSOCIATED 1
WITH THE PROJECT. 2

(2) THE MULTIMODAL TRANSPORTATION PROGRAM SHALL FOCUS ON 3
AREAS IN THE FOLLOWING ORDER OF PRIORITY: 4

(I) OVERBURDENED COMMUNIT IES AND UNDERSERVED 5
COMMUNITIES IMPACTED BY THE MAJOR HIGHWAY CAPACITY EXPANSION PROJECT; 6

(II) AREAS WITHIN OR ASSOCIATED WITH AT LEAST ONE OF THE 7
COMMUNITIES IMPACTED BY THE PROJECT; 8

(III) OVERBURDENED COMMUNIT IES AND UNDERSERVED 9
COMMUNITIES ACROSS THE STATE; 10

(IV) THE REGION IN WHICH THE MAJOR HIGHWAY CAPACI TY 11
EXPANSION PROJECT IS LOCATED; AND 12

(V) THE STATE AT LARGE. 13

(C) (1) THE MULTIMODAL TRANSP ORTATION PROGRAM SHA LL OFFSET 14
THE GREENHOUSE GAS E MISSIONS ASSOCIATED WITH THE MAJOR HIGHWAY 15
CAPACITY EXPANSION PROJECT. 16

(2) THE NET GREENHOUSE GAS EMISSIONS FROM THE PROJECT AND 17
ITS ASSOCIATED MULTI MODAL TRANSPORTATION PROGRAM SHALL BE ZER O OR A 18
NEGATIVE NUMBER. 19

(D) THE DEPARTMENT SHALL CONS IDER BOTH THE MAJOR HIGHWAY 20
CAPACITY EXPANSION P ROJECT AND THE MULTI MODAL TRANSPORTATION 21
PROGRAM AS PART OF ITS EVALUATION OF THE PROJECT UNDER § 2–103.7 OF THIS 22
TITLE. 23

(E) THE DEPARTMENT SHALL: 24

(1) FUND ELEMENTS OF THE MULT IMODAL TRANSPORTATIO N 25
PROGRAM CONCURRENTLY WITH FUNDING FOR THE CONSTRUCTION OF THE MAJOR 26
HIGHWAY CAPACITY EXPANSION PROJECT; OR 27

(2) DEFER THE MAJOR HIGHW AY EXPANSION CAPACIT Y PROJECT 28
UNTIL THE PROJECT MEETS THE OFFSETTING REQUIREMENTS FOR A MULTIMODAL 29
TRANSPORTATION PROGRAM UNDER THIS SUBTITLE. 30

2–904. 31
SENATE BILL 59 5

(A) (1) BEGINNING WITH THE CONSOLIDATED TRANSPORTATION 1
PROGRAM FOR FISCAL YE AR 2028 THROUGH FISCAL YEAR 2033 AND IN EACH 2
ANNUAL RELEASE THERE AFTER, THE DEPARTMENT SHALL EVAL UATE MAJOR 3
CAPITAL PROJECTS INC LUDED IN THE CONSOLIDATED TRANSPORTATION 4
PROGRAM FOR THEIR IMPACT ON: 5

(I) GREENHOUSE GAS EMISSIONS; AND 6

(II) VEHICLE MILES TRAVELED PER CAPITA. 7

(2) THE EVALUATION REQUIR ED UNDER PARAGRAPH (1) OF THIS 8
SUBSECTION SHALL BE PUBLISHED FOR THE DR AFT CONSOLIDATED 9
TRANSPORTATION PROGRAM BY OCTOBER 1 EACH YEAR , AND WITH THE FINAL 10
CONSOLIDATED TRANSPORTATION PROGRAM EACH YEAR. 11

(B) (1) BEGINNING WITH THE CONSOLIDATED TRANSPORTATION 12
PROGRAM FOR FISCAL YE AR 2028 THROUGH FISCAL YEAR 2033 AND IN EACH 13
ANNUAL RELEASE THERE AFTER, THE DEPARTMENT SHALL ACHI EVE, TO THE 14
MAXIMUM EXTENT PRACT ICABLE AND SUBJECT T O STATE APPROPRIATIONS , A 15
PROGRAM WHOSE IMPACT ON GREENHOU SE GAS EMISSIONS AND PROGRESS 16
TOWARD ACHIEVING GRE ENHOUSE GAS REDUCTIO N TARGETS ARE , OVER THE 17
CONSOLIDATED TRANSPORTATION PROGRAM PERIOD , CONSISTENT WITH THE 18
PROJECTED GREENHOUSE GAS EMISSION REDUCTI ONS MODELED FOR ROAD S IN 19
MARYLAND’S CLIMATE POLLUTION REDUCTION PLAN: MODELING APPENDIX. 20

(2) THE DEPARTMENT SHALL FUND OFFSETTING ACTI VITIES TO 21
MAKE THE CONSOLIDATED TRANSPORTATION PROGRAM MORE CONSISTENT WITH 22
THE GREENHOUSE GAS E MISSION REDUCTION GO ALS UNDER THE DEPARTMENT’S 23
2023 CLIMATE POLLUTION REDUCTION PLAN AND THE TARGETS ESTABLISHED IN 24
SUBSECTION (D) OF THIS SECTION. 25

(C) THE OFFSETTING ACTIVITIES REQUIRED UNDER SUBSECTIONS (A) AND 26
(B) OF THIS SECTION ARE ACTIVITIES THAT: 27

(1) DEMONSTRABLY CREATE CONSISTENT, LONG–TERM REDUCTIONS 28
IN GREENHOUSE GAS EMISSIONS OR VEHICLE MILES TRAVELED; 29

(2) PRIORITIZE OVERBURDENED AND UNDERSERVED COMMUNITIES; 30

(3) ARE ELIGIBLE FOR FUND ING UNDER SUBSECTION (A) OR (B) OF 31
THIS SECTION; AND 32

(4) INCLUDE: 33
6 SENATE BILL 59

(I) PARKING REDUCTION INITIATIVES; 1

(II) ACTIVE TRANSPORTATION; 2

(III) TRANSIT–ORIENTED DEVELOPMENT AND 3
TRANSPORTATION DEMAND MANAGEMENT STRATEGIES; 4

(IV) LOW–TRAVEL–DEMAND COMMERCIAL AN D RESIDENTIAL 5
DEVELOPMENT AND OTHER LAND USE CHANGES; 6

(V) ROADWAY PRICING; 7

(VI) TELECOMMUTING; 8

(VII) PUBLIC TRANSIT SERVIC E IMPROVEMENTS AND 9
EXPANSION; 10

(VIII) MICRO–MOBILITY, INCLUDING THROUGH TH E USE OF 11
ADAPTIVE AND INCLUSIVE LOW SPEED VEHICLES FOR PEOPLE WITH DISABILITIES; 12

(IX) ACCESSIBLE TRANSPORTA TION AND PEDESTRIAN 13
IMPROVEMENTS FOR PEOPLE WITH DISABILITIES; 14

(X) SOLAR ENERGY GENERATI ON ON PROPERTY CONTR OLLED 15
BY THE DEPARTMENT; AND 16

(XI) OTHER ACTIVITIES IDEN TIFIED BY THE DEPARTMENT TO 17
REDUCE VEHICLE MILES TRAVELED. 18

(D) TO ACHIEVE THE REQUIR EMENTS UNDER THIS SE CTION, THE 19
DEPARTMENT SHALL SET: 20

(1) ANNUAL STATEWIDE DECLINING GREENHOUSE GAS EMISSION 21
REDUCTION TARGETS TH AT INCORPORATE ASSUM PTIONS ABOUT THE USE OF 22
ELECTRIC VEHICLES IN THE STATE; AND 23

(2) ANNUAL REGIONAL DECLI NING GREENHOUSE GAS EMISSION 24
REDUCTION TARGETS THAT: 25

(I) ARE SET AT AN AMOUNT THAT WHEN MET AND TA KEN 26
COLLECTIVELY FOR ALL REGIONS WOULD ACHIEVE THE REQUIREMENTS SPECIFIED 27
IN § 2–903(C)(2) OF THIS SUBTITLE AND THE STATEWIDE TARGETS SET UNDER ITEM 28
(1) OF THIS ITEM; AND 29

SENATE BILL 59 7

(II) INCORPORATE ASSUMPTIONS ABOUT THE USE OF ELECTRIC 1
VEHICLES IN THE STATE. 2

(E) IN EVALUATING THE CONSOLIDATED TRANSPORTATION PROGRAM’S 3
IMPACT ON GREENHOUSE GAS EMISSIONS AND VE HICLE MILES TRAVELED , THE 4
DEPARTMENT SHALL: 5

(1) ESTABLISH THE BASELIN E TOTAL GREENHOUSE G AS EMISSIONS 6
ATTRIBUTABLE TO SURF ACE TRANSPORTATION I N THE STATE FOR THE 7
CONSOLIDATED TRANSPORTATION PROGRAM PERIOD; 8

(2) CONSIDER THE DIRECT A ND INDUCED DEMAND IM PACTS OF 9
MAJOR CAPITAL PROJECTS ON VEHICLE MILES TRAVEL ED PER CAPITA AND 10
GREENHOUSE GAS EMISSIONS; 11

(3) CONSIDER THE DIRECT CLIMATE BENEFITS OF INVESTMENTS IN: 12

(I) TRANSIT OPERATIONS , INCLUDING LOCALLY OP ERATED 13
TRANSIT SYSTEMS; 14

(II) TRANSIT–ORIENTED DEVELOPMENT AND 15
TRANSPORTATION DEMAN D MANAGEMENT , INCLUDING LAND DEVEL OPMENT 16
DESIGNED TO REDUCE TRAVEL DEMAND; 17

(III) PEDESTRIAN AND BICYCLE INFRASTRUCTURE; 18

(IV) ELECTRIFICATION OF STATE VEHICLES; 19

(V) VEHICLE CHARGING INFRASTRUCTURE; AND 20

(VI) SOLAR ENERGY GENERATI ON ON PROPERTY CONTR OLLED 21
BY THE DEPARTMENT; AND 22

(4) COMPARE THE PROJECTED GREENHOUSE GAS EMISSIONS TO THE 23
TARGET EMISSIONS EST ABLISHED IN SUBSECTI ON (D) OF THIS SECTION TO 24
DETERMINE WHETHER TH E CONSOLIDATED TRANSPORTATION PROGRAM 25
ACHIEVES THE EMISSIONS TARGETS. 26

(F) IN EVALUATING WHETHER THE CONSOLIDATED TRANSPORTATION 27
PROGRAM MEETS GREENHOUSE GAS EMISSION GOALS, THE DEPARTMENT MAY NOT 28
CONSIDER STATE OF GO OD REPAIR ACTIVITIES AND ACTIVITIES THAT ARE SOLELY 29
SYSTEM PRESERVATION ACTIVITIES. 30

2–905. 31
8 SENATE BILL 59

(A) THE SECRETARY SHALL: 1

(1) ESTABLISH A PROCESS T O PERFO RM CAPACITY EXPANSIO N 2
IMPACT ASSESSMENTS; 3

(2) ESTABLISH A PROCESS F OR CONSIDERING PROGR ESS MADE 4
TOWARD MEETING THE TARGETS SPECIFIED IN § 2–904(D) OF THIS SUBTITLE; 5

(3) ESTABLISH A PROCESS F OR DEVELOPING A MULT IMODAL 6
TRANSPORTATION PROGR AM UNDER § 2–903 OF THIS SUBTITLE , INCLUDING A 7
METHOD FOR CONSIDERI NG THE DIRECT AND IN DUCED DEMAND IMPACTS OF A 8
MAJOR HIGHWAY CAPACITY EXPANSION PROJECT; AND 9

(4) PUBLISH ON THE DEPARTMENT’S WEBSITE: 10

(I) THE PROCESSES ESTABLISHED UNDER ITEMS (2) AND (3) OF 11
THIS SUBSECTION; AND 12

(II) ANY MULTIMODAL TRANSP ORTATION PROGRAM 13
DEVELOPED UNDER § 2–903 OF THIS SUBTITLE. 14

(B) IN FISCAL YEAR 2028, THE DEPARTMENT SHALL ALLO CATE FUNDING 15
FOR THE IMPLEMENTATI ON AND DEVELOPMENT O F STATEWIDE AND REGI ONAL 16
TRAVEL DEMAND MODELING RELATED TO THE REQUIREMENTS OF THIS SECTION, 17
INCLUDING INDUCED DE MAND AND LAND USE EF FECTS FROM TRANSPORT ATION 18
INVESTMENTS. 19

8–102. 20

(a) It is the policy of this title to promote an efficient and economical 21
transportation system. 22

(b) The Department [of Transportation] and the [State Highway] Administration 23
may not proceed to the final project planning phase unless it has been determined that the 24
objective of the proposed project cannot be reasonably achieved through: 25

(1) Improvements in highway maintenance and safety; 26

(2) Projects that modify existing highways but provide for minimal 27
relocation or new highway construction; and 28

(3) Improvements in, or adoption of, transit alternatives, including mass 29
transit alternatives. 30

SENATE BILL 59 9

(C) THE DEPARTMENT AND THE ADMINISTRATION SHALL ISSUE A REPORT 1
PRIOR TO PROCEEDING TO THE FINAL PROJECT PLANNING PHASE THAT 2
DOCUMENTS: 3

(1) THE EVALUATION OF THE ALTERNATIVES IDENTIF IED IN 4
SUBSECTION (B) OF THIS SECTION; OR 5

(2) A DETERMINATION THROUG H OT HER REQUIRED PLANNIN G 6
DOCUMENTS. 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
1, 2026. 9