Update: From Jeremy Schneider at DBK Sports, demolition of the field has begun (follow the link in the tweet for the picture). Still no official word from the university, however.
Construction appears to have started on Byrd Stadium turf yfrog.com/ocsy0jwj— Jeremy Schneider (@J_Schneider) May 14, 2012
In the past hour, Jakob Engelke reported on the impending announcement regarding construction at Byrd Stadium:
#Terps expected to make announcement later today regarding construction at Byrd, according to an official in the athletics department.— Jakob Engelke (@Jakob_Engelke) May 14, 2012
My guess would be installing a turf field and/or lowering the field, but official did not disclose extent of the announcement. #Terps— Jakob Engelke (@Jakob_Engelke) May 14, 2012
This was also reported previously by Terps Insider, who claim that Capital One Field might receive an overhaul that could include a "unique colored turf field." In line with what Engelke mentions above, it has been rumored for a couple of years that the administration wants to lower the field. Each outcome appears equally possible, or we could see a combination of the two. Any major construction will raise questions on the source of funding in light of the athletic department's recent spending cuts, with the obvious exception of funding from an outside donor.
I will try to update this post as more information becomes available.