SENATE BILL REPORT

SB 5913

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Changes $85 million of intended loans to the Tacoma Narrows bridge account through fiscal year 2030 to $30 million of intended state contributions through fiscal year 2023 to preclude an otherwise expected fiscal year 2022 toll rate increase.
Reinstates the Tacoma Narrows bridge work group so that toll relief recommendations for the 2023-2031 timeframe can be included with the Transportation Commission's 2023 required annual report.

Background: The eastbound Tacoma Narrows Bridge (TNB) opened to traffic in July 2007 as a toll bridge. The bridge cost $735 million to complete and was funded by selling general obligation bonds that were backed by the Motor Vehicle Account and the full faith and credit of the state of Washington. Toll rates are set by the Transportation Commission (commission) and currently may only be collected on the TNB until the debt service, deferred sales tax, and loans from the motor vehicle account are paid in full.

The bridge was financed with an escalating debt structure, resulting in multiple toll rate increases over the years as debt payments have increased. Over the life of the bridge, the Legislature has adjusted the funding scheme in the following ways:

2007: Loan of $5.3 million, scheduled to be fully repaid using civil penalty revenue by the 2023-25 biennium;
2012: Deferral of the $57.6 million repayment of the sales tax for construction of the bridge until fiscal year 2032 after the debt service is fully paid; and
2016: Transfer of $2.5 million from the motor vehicle account to the TNB account.

The 2017 transportation budget included direction to the commission to convene a refinance work group for the TNB and develop recommendations, from which stemmed 2018 legislation (SHB 2990) that authorized a series of intended loans up to $85 million to keep TNB toll rates at no more than $0.25 higher than current rates. At present, rates on the TNB are $5.00 with a Good to Go! Pass, $6.00 with cash, and $7.00 with pay by mail for a 2-axle vehicle. According to commission estimates from the 2019 report required by SHB 2990, $14.9 million of the intended $85 million loan would be needed for the 2019-2021 biennium to avoid a toll rate increase by July 1, 2019.

Summary of Bill: Legislative intent is established regarding inequity in the debt financing structure for the TNB. The bill changes current intent language to provide $85 million in loans to the TNB account through fiscal year 2030 to $30 million of intended state contributions through fiscal year 2023. It also removes language referring to both extending the tolling timeframe and a $0.25 rate increase in fiscal year 2022, and establishes legislative intent that the commission maintains toll rates at current levels.

A Tacoma Narrows bridge work group is reconvened, and the commission is directed to include the work group's recommendations for toll payer relief in their 2023 required annual report.

Staff Summary of Public Testimony: PRO: The Tacoma Narrows Bridge toll payers have been responsible for carrying the costs of construction and maintenance, and have not gotten a fair deal. The work group from last year made the effects of the escalating debt structure better, but this bill makes it more equitable by not continuing the term of the tolling with loan repayments. Stakeholders would like to keep toll rates at their current, reasonable level despite the unique financing structure of the bridge. There might be changes made to the bill to continue either loans or a combination of loans and contributions after 2023.