CT Construction Digest Thursday April 11, 2019

Lamont, GOP make clear — tolls are a fault line
Mark Pazniokas and Keith M. Phaneuf
Gov. Ned Lamont and Republicans crystallized two things Wednesday about the contentious issue of returning highway tolls to Connecticut after an absence of 35 years: Lamont cannot yet definitively answer important questions about the pricing, location and frequency of tolls — and it wouldn’t matter to the GOP, even if he could.
In back-to-back press conferences, the gulf between the governor and Republican minority could not have been greater, reinforcing that if Lamont succeeds in winning authorization to establish tolls on Route 15 and Interstates 84, 91 and 95, Republicans are resolved to brand them as the product of a Democratic governor and Democratic majorities in the General Assembly.
Lamont and the Democratic co-chairs of the legislature’s Transportation Committee tried to reframe the issue Wednesday in terms of specific rush-hour commutes, assuming 4.4 cents a mile with discounts for state drivers: from New Haven to Hartford on 91, $1.72; from Stamford to New Haven on 95, $1.80; from Danbury to Waterbury on 84, $1.28.
The governor complained that Republicans, who have been assisted by a grass-roots campaign and conservative talk radio hosts in mobilizing public opinion against a proposal he rolled out in February, have created the impression he wants a tolling gantry at the end of every street.
“That’s false,” Lamont said. “That’s false advertising.”
Lamont seemed to sense he is losing the public argument, at least for the moment.
 He said he understands that the public is skeptical about government’s ability to responsibly managed tolling revenue, even the money would have to be used for highway infrastructure under federal law. But he said he is most concerned about the imposition of added costs on taxpayers, imagining a conversation with one.

“We have a middle class that has gotten slammed over a generation now. And they are paying a lot of money. And they feel like folks are falling behind. ‘C’mon, guv,  you know I know we have to fix the transportation. I know borrowing is not the way to do it. But I don’t know how I can afford to do that.’ And that is the one thing that rings with me. I have to sit down with folks, find a fair way to do this.”

Republicans countered that Lamont has only a broad outline for tolling, not a detailed plan to raise the $800 million that administration officials estimate could be raised annually through tolls.  They complained that he reflexively rejected their alternative  — increasing borrowing for transportation by $700 million a year by prioritizing transportation over many other areas.
“The Republicans in the legislature are not fooled by this proposal, and the problem now is neither is the public,” said Rep. Vincent Candelora, R-North Branford. “When you go out, the public is scared, they are concerned. They don’t know what level of taxation is going to occur now.”
Republicans excoriated Lamont and his legislative allies for pushing legislation that would cede authority to the state Department of Transportation to negotiate with the Federal Highway Administration the terms of establishing tolls on Route 15 and Interstates 84, 91 and 95.
“They are going to determine how much they are going to charge without one legislator weighing in,” said Senate Minority Leader Len Fasano, R-North Haven.
“How disrespectful could you be to the people of the state of Connecticut by saying, ‘Give us the authority and then we’ll tell you how much, and there isn’t a damn thing you can do about it,’” Fasano continued, his voice raised in anger. “That is simply outrageous.”
But Fasano and other Republicans conceded that even if the General Assembly had final say over a detailed tolling plan, the GOP was unlikely to engaged in a policy discussion about what is setting up as a major wedge issue in the 2020 elections for legislative seats.
“For us to retreat and even consider tolls, there really hasn’t been put anything on the table that makes that a viable option,” said Candelora, the deputy House minority leader.Donald J. Shubert, the president of the Connecticut Construction Industries Association, a trade group that promotes tolls as a means to stabilize financing for highway maintenance and modernization, said he is resigned to seeing tolls as an issue that will rise or fall strictly on Democratic votes.
“You have to work with the people you can work with until we get an indication they are willing to have a serious discussion,” Shubert said. “It’s a wedge issue.”
One of Lamont’s challenges is the chicken-and-egg nature of developing and winning approval for placing tolls on interstate highways constructed or maintained with federal highway dollars. Connecticut is one of the states permitted to experiment with tolls aimed at reducing congestion with variable pricing,  based on peak and an off-peak travel. The Federal Highway Administration, however, will not sign off on a detailed blueprint until the legislature approved enabling legislation.
Lamont also faces opposition from Democrats over his “debt diet,” a plan to sharply curtail borrowing.
Borrowing for transportation projects is repaid from the Special Transportation Fund, which is supported with fuel tax receipts that are stagnant. The fund is projected to be insolvent within the next decade.
The GOP solution is to increase borrowing for transportation projects by about $700 million per year. But to avoid overtaxing the STF, Republicans would pay off that extra debt from the state’s General Fund.
The problem with that, said Rep. Roland Lemar, D-New Haven, a Transportation Committee co-chair, is the General Fund can’t spare the room on its own credit card. Its borrowing is used to build schools, upgrade universities and wastewater treatment plants, preserve open space and farmland, and support economic development.

The Republican plan “shortchanges literally every aspect of state government,” he said. “It will crowd out every other bonding aspect.

Study: Natural gas pipelines leaking in Danbury, other cities
Bill Cummings
A new survey of natural gas pipelines in Danbury and other Connecticut cities shows methane is seeping into the air from underground pipes and could cause a disaster similar to the explosions last year that rocked three Massachusetts towns.
"It’s just a matter of rate and time and situation that determines if any of these leaks are going to be dangerous," said Nathan Phillips, a University of Boston professor who participated in the study conducted for the Connecticut Chapter of the Sierra Club.
The study found an average of 3.6 leaks per mile of underground gas lines in Danbury. The Hartford results showed an average of 4.3 leaks per mile and 2.6 leaks per mile in New London.
"The potential for what happened in the Merrimack Valley [in Massachusetts] exists in Connecticut," Phillips said. "It was the same kind of low pressure gas line that the study surveyed."

In September 2018, exploding underground gas lines in Massachusetts damaged as many as 40 homes and caused over 80 individual fires in Lawrence, Andover and North Andover.

The cause of the explosions was blamed on human error related to nearby construction work.
Sierra Club members and others said it’s time to strengthen laws regarding leaks while transitioning from carbon-based energy sources to renewable energy.
"This report shows again that Connecticut has a real problem with gas leaking from pipes, and that we urgently need legislation that incentivizes gas companies to repair this ongoing hazard," said Leah Lopez Schmalz, chief program officer for the Connecticut Fund for the Environment.
Mitch Gross, an Eversource spokesman, said the company has a "comprehensive” maintenance, inspection and management program that exceeds the requirements of federal and state regulators."We constantly monitor our system and are always evaluating new technologies, processes and industry best practices to provide superior customer service," Gross said.
Street by street
To conduct the study, researchers attached a methane detection device on vehicles and drove streets in each city. The detector can tell the difference between natural methane levels in the air and spikes caused by leaks.
"The leaks are invisible and are not being proactively monitored or repaired," said Samantha Dynowski, executive director of the Connecticut Chapter of the Sierra Club.

An earlier survey by the Sierra Club found similar leak frequency levels in Hartford.

Martha Klein, a past Sierra Club president, said the state has not improved leak regulation or detection since the club’s previous study.
"The reaction to our original study was pretty much to deny it," Klein said.
Gross said Eversource has invested millions of dollars to upgrade and replace pipelines.
Eversource does not serve Hartford but it does provide gas to Danbury and New London residents.
"We safely and reliably serve 74 of the state’s 169 towns and cities, continuing to invest tens of millions of dollars annually to upgrade the gas distribution system throughout our service area," Gross said.
Gross noted the company has replaced more than 175 miles of gas lines around the state since 2012, including lines in Danbury and New London.
The work included removing the cast iron and bare steel gas main and replacing it with safer plastic pipe, he said.
There are problems with the “methodology” used in the Sierra Club’s earlier study, said Michael Caron, a spokesman for the state Public Utilities Regulatory Authority.Caron said residents should not worry about a similar pipeline disaster in Connecticut, noting the state has a strict regulatory format in place and said a recent rate case for the state’s three gas providers committed the companies to a 25 year program to replace older lines with safer plastic ones.
“We have an excellent safety program with redundant mechanisms,” Caron said.
“What happened [in Massachusetts] is not going to happen here,” Caron said. “We have a good relationship in terms of cooperation with the companies. We inspect randomly, and we try to make sure they identify what they should.”
"Another reminder"
Debbie New, who represents a collation of over 20 groups worried about gas leaks in Massachusetts, said she’s concerned about the region’s aging gas pipeline infrastructure."The collapse of the gas system that is still affecting the Merrimack Valley could happen in any city or state with any gas company," New said.
"Our aging infrastructure is creating more gas leaks than utilities can fix — increasing emissions, affecting our health, killing trees, and costing us, the customers, money," New said.
Hartford Mayor Luke Bronin also expressed concern over leak rates highlighted by the report.
"This report is another reminder of how vital it is to make renewable energy development a national priority," Bronin said.
"At the local level, we’re pursuing a bold Climate Action Plan, but we need a broader effort to modernize the existing energy infrastructure," the mayor said.

Lamont Releases Estimated Toll Rates

Christine StuartHARTFORD, CT — There were still more questions than answers when it comes to what a final electronic tolling bill will look like and also whether the Democrats have enough votes to approve the legislation without any Republican support.

Gov. Ned Lamont and the co-chairs of the legislature’s Transportation Committee held a press conference Wednesday to explain their thinking with just eight weeks left in the 2019 legislative session.

However, they were unable to offer many details since the concept is still under negotiation.
Lamont said it will be 50 or fewer gantries on four highways, and a congestion pricing method is all that the federal government will allow.
A document distributed by Lamont officials estimated that a commute from Stamford to New Haven would cost $1.80 during peak periods and $1.40 during off peak periods. That’s based on a rate of 4.4 cents per mile during peak hours and 3.5 cents per mile during off-peak hours. New Haven to Hartford would cost $1.72 during peak periods and $1.36 during off-peak periods. The drive from Putnam to Norwich and Torrington to Bridgeport would not cost anything because there are no tolls proposed for Routes 2 or 8.

from the Lamont administration

Even though his own Department of Transportation said it will take seven years before the state would be able to collect toll revenue, Lamont said he wants to speed that up by borrowing against the toll revenue the state expects to collect.

“The time to plan, gain regulatory approvals, design and construct a toll system has been estimated to take 4 years, with partial revenue services in years 5 and 6. Full revenue operations would be achieved in year 7,” an internal DOT memo states.
Lamont said he spoke with U.S. Secretary of Transportation Elaine Chao and said she would be able to “expedite the process for us to get the gantries up in less than half that amount of time.”
Lamont continued: “Once we get approval to get these gantries up, once they know we’re going to be able to do our electronic tolling, we can borrow against those anticipated tolling revenues.”
It’s unclear whether Lamont will be able to find the legislative support to get an advance on future toll revenue. It’s one of several items that will be negotiated.
“I think you’d be crazy not to take some of that money up front and put that toward transportation until we get the tolling done,” Lamont said.
As far as the toll rates and gantries every six to seven miles, Lamont said he’s happy to negotiate.
“I’m all ears. The door is open. It’s a big table, but the numbers have to add up,” Lamont said.
Sen. Carlo Leone, D-Stamford, said they will rely on the experts at DOT to come up with a proposal for rates. He said the feds would have to authorize those rates and at that point they could consider sending it back to the General Assembly for approval.
“We could still weigh in on it if need be,” Leone said.
The three tolling bills passed by the Transportation Committee last month will be negotiated down to one.
Lamont said the toll revenue will be automatically deposited in the Special Transportation Fund and it will help Connecticut avoid using general obligation bonds for transportation projects.
Republicans have said their proposal to prioritize general obligation bonds to pay for transportation projects is a better way to fund improvements without adding electronic tolls as a revenue stream.
Lamont panned the Republican proposal because he said it would force the state to delay other projects scheduled to be funded through general obligation bonds, and would not be seen favorably by Wall Street.
He said putting more money on the state credit card is “the exact same addiction that got us into this problem over the last generation or we’re shortchanging everything else that’s important to economic growth.”

Republicans lawmakers who were in the room listening said the governor is not taking seriously the proposal they made four years ago when they saw gas revenue dropping and the Special Transportation Fund on the brink of insolvency.Senate Republican Leader Len Fasano, R-North Haven, said the governor hasn’t read their proposal and is using stale talking points.He said the only thing they learned today about the Democratic plan for electronic tolls is that “there is no plan.”
He said the rate sheet Lamont’s staff handed out is “fictitious” because those rates will still have to be negotiated and approved by the federal government.
“They are going to determine how much they are going to charge without one legislator,” Fasano said.
He said what Lamont is saying is, “‘Give us the authority and then we’ll tell you how much.’ That is simply outrageous.”
He said the plan regarding how much drivers would pay per mile should come back to lawmakers for a vote.
Lamont said he needs the legislature to approve an electronic tolling bill before he can ask the federal government for approval. Once the federal government approves the plan there doesn’t seem to be any desire to allow the General Assembly to weigh in on the final product.
“This is a lot of work getting this first vote done to tell you the truth,” Lamont said.

Old pipelines are leaking gas in Hartford, adding to pollution, costing consumers millions and increasing risk of dangerous explosions, survey shows
Gregory B. Hladky

Natural gas pipelines in Hartford are averaging 4.3 methane leaks per mile and pipelines in Danbury and New London are also leaking methane on a regular basis, according to a new survey commissioned by the Sierra Club.

Such leaks are adding to air pollution that is causing climate change, costing consumers millions of dollars, and increase the risk of explosions of the kind that killed one person, destroyed five homes and damaged 131 buildings in Massachusetts last year, Sierra Club officials said.But Connecticut gas pipeline regulators said Wednesday that there is no connection between minor leaks from aging gas pipelines and the type of devastating explosions that rocked Lawrence, North Andover and Andover, Mass. They noted that a federal investigation blamed those explosions on human error. The survey released Wednesday found similar results to a 2016 Sierra Club study of Hartford gas leaks, but club officials said there is no indication that Connecticut utility regulators have taken action to solve the problems. “As far as we know, they’ve done nothing,” said Martha Klein, a past chair of the Connecticut chapter of the Sierra Club. Officials of the state’s Public Utilities Regulatory Authority last year questioned the gas leak survey’s methods and findings, arguing the Sierra Club’s tests were focusing on minor gas leaks that pose no threat to the public. State officials said Wednesday they haven’t yet seen the new study and can’t comment on any specific findings.PURA Commissioner Michael Caron said Connecticut regulators are already requiring natural gas companies in this state to detect and replace leaky portions of the gas distribution system, portions of which may be half a century old.Scott Muska, head of the PURA unit responsible for pipeline safety, said the state agency is now conducting an investigation in the best way to detect methane leaking from pipelines.“No one denies that there are certain leaks coming from the distribution system,” Muska said.Sierra Club officials said they paid $10,000 to Evergreen Business Analytics, LLC to perform the “Connecticut Mobile Methane Leaks Survey” released Wednesday. A similar study in 2016 cost the club $13,000.Tim Keyes, a founder of the group that performed both studies, said the 2019 survey found “very similar” results to the tests done in Hartford three years ago, and are comparable to similar tests for Boston gas leaks.The Danbury survey found an average of 3.6 pipeline leaks per mile, Keyes said adding that leaks were also detected but at lower rates in New London, where fewer miles of pipeline were surveyed. Hartford is served by Connecticut Natural Gas, while Danbury and New London consumers get their gas from Eversource.Methane from natural gas is the second most common form of greenhouse gases and is considered “the most damaging” form of pollution contributing to global warming and climate change, said Samantha Dynowski, executive director of the Connecticut Sierra Club chapter. The most common greenhouse gas is carbon dioxide. Dynowski said gas pipeline leaks are a significant factor in methane pollution and that is the reason the Sierra Club is focusing on the issue.Nathan Phillips, a professor of earth and environment at Boston University, said the Massachusetts gas explosions last year have been attributed to human error as a local gas company was replacing century-old cast-iron pipes.Federal investigators found that utility workers and utility planners failed to properly account for regulatory sensors in the pipelines that are used to detect pipeline pressure and control gas flows. The probe found that those failures allowed high-pressure gas to flood into the area’s distribution pipelines, resulting in more than 80 explosions.But Phillips, who is also a Sierra Club member and leader of the Massachusetts Gas Leaks Alliance Group, said leaky gas pipelines carry “inherent risks” when companies are attempting to repair or replace them. “This risk does exist,” he said Wednesday.Sierra Club officials said multiple studies in recent years have found that existing federal and state methods for detecting methane emissions are inadequate and that lost natural gas from leaky pipelines are costing consumers millions of dollars a year.