This idea seems like an offshoot of the Peconic County movement. About 8 years ago there was a large enough group that was pushing for a new county to be made up of the North Fork, stretching from Wading River to Orient Point. Mostly they wanted to limit development. If they are still around they would put a monkey wrench in this plan.
I think it is really an effort on Suffolk Transit's part to score more $$$ to improve their bus lines (which could use it).