AN ACT
Relating to rail freight service; amending RCW 47.76.200, 47.76.210, 47.76.220,
47.76.230, 47.76.240, 47.76.250, 47.76.270, and 47.76.280; adding a new section
to chapter 47.76 RCW; and repealing RCW 47.76.260.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
47.76.200 and 1993 c 224 s 1 are each amended to read as follows:
The
legislature finds that a balanced multimodal transportation system is required
to maintain the state's commitment to the growing mobility needs of its
citizens and commerce. The state's freight rail system((s are)),
including branch lines, mainlines, rail corridors, terminals, yards, and
equipment, is an important element((s)) of this multimodal system.
Washington's economy relies heavily upon the freight rail system to ensure
movement of the state's agricultural, chemical, and natural resources and
manufactured products to local, national, and international markets and
thereby contributes to the economic vitality of the state.
Since
1970, Washington has lost ((nearly)) over one-third of its ((five
thousand two hundred)) rail miles to abandonment and bankruptcies((,
leaving approximately three thousand four hundred rail miles.
Abandonment
of rail lines and rail freight service)). The combination of rail
abandonments and rail system capacity constraints may alter the delivery to
market of many commodities. In addition, the resultant motor vehicle freight
traffic increases the burden on state highways and county roads. In many
cases, the cost of maintaining and upgrading the state highways and
county roads exceeds the cost of maintaining rail freight service. Thus, the
economy of the state will be best served by a policy of maintaining and
encouraging a healthy rail freight system by creating ((a)) mechanisms
((which keeps)) that keep rail freight lines operating if the
benefits of the service outweigh the cost.
Recognizing
the implications of this trend for freight mobility and the state's economic
future, the legislature ((believes)) finds that better freight
rail planning, better cooperation to preserve rail lines, and increased
financial assistance from the state are necessary to maintain and improve the
freight rail system within the state.
Sec.
2. RCW
47.76.210 and 1990 c 43 s 2 are each amended to read as follows:
The
Washington state department of transportation shall implement a state freight
rail program ((for rail coordination, planning, and technical assistance))
that supports the freight rail service objectives identified in the state's
multimodal transportation plan required under chapter 47.06 RCW. The support
may be in the form of projects and strategies that support branch lines and
light-density lines, provide access to ports, maintain adequate mainline
capacity, and preserve or restore rail corridors and infrastructure.
Sec.
3. RCW
47.76.220 and 1993 c 224 s 2 are each amended to read as follows:
(1) The
department of transportation shall prepare and periodically update a state rail
plan, the objective of which is to identify, evaluate, and encourage essential
rail services. The plan shall:
(a) Identify
and evaluate mainline capacity issues;
(b)
Identify and evaluate port-to-rail access and congestion issues;
(c)
Identify and evaluate those rail freight lines that may be abandoned or have
recently been abandoned;
(((b)))
(d) Quantify the costs and benefits of maintaining rail service on those
lines that are likely to be abandoned; ((and
(c))) (e)
Establish priorities for determining which rail lines should receive state
support. The priorities should include the anticipated benefits to the state
and local economy, the anticipated cost of road and highway improvements
necessitated by the abandonment or capacity constraints of the rail
line, the likelihood the rail line receiving funding can meet operating costs
from freight charges, surcharges on rail traffic, and other funds authorized to
be raised by a county or port district, and the impact of abandonment or
capacity constraints on changes in energy utilization and air pollution;
(f)
Identify and describe the state's rail system;
(g)
Prepare a state freight rail system map;
(h)
Identify and evaluate rail commodity flows and traffic types;
(i)
Identify lines and corridors that have been rail banked or preserved; and
(j)
Identify and evaluate other issues affecting the state's rail traffic.
(2)
The state rail plan may be prepared in conjunction with the rail plan prepared
by the department pursuant to the federal Railroad Revitalization and
Regulatory Reform Act.
Sec.
4. RCW
47.76.230 and 1990 c 43 s 3 are each amended to read as follows:
(1)
The department of transportation shall continue its responsibility for the
development and implementation of the state rail plan and programs, and the
utilities and transportation commission shall continue its responsibility for
intrastate rates, service, and safety issues.
(2)
The department of transportation shall maintain an enhanced data file on the
rail system. Proprietary annual station traffic data from each railroad and
the modal use of major shippers shall be obtained to the extent that such
information is available.
(3)
The department of transportation shall provide technical assistance, upon
request, to state agencies and local interests. Technical assistance includes,
but is not limited to, the following:
(a) ((Abandonment))
Rail project cost-benefit analyses((, to include the public and
private costs and benefits of maintaining the service, providing alternative
service including necessary road improvement costs, or of taking no action))
conducted in accordance with methodologies recommended by the Federal
Railroad Administration;
(b)
Assistance in the formation of county rail districts and port districts; and
(c)
Feasibility studies for rail service continuation and/or rail service
assistance.
(4)
With funding authorized by the legislature, the department of transportation,
in collaboration with the department of community, trade, and economic
development, and local economic development agencies, and other interested
public and private organizations, shall develop a cooperative process to
conduct community and business information programs and to regularly
disseminate information on rail matters. ((The following agencies and jurisdictions
shall be involved in the process:
(a)
The state departments of community development and trade and economic
development;
(b)
Local jurisdictions and local economic development agencies; and
(c)
Other interested public and private organizations.))
Sec.
5. RCW
47.76.240 and 1993 c 224 s 3 are each amended to read as follows:
The
state, counties, local communities, ports, railroads, labor, and
shippers all benefit from continuation of rail service and should participate
in its preservation. Lines ((which)) that provide benefits to
the state and local jurisdictions, such as avoided roadway costs, reduced
traffic congestion, economic development potential, environmental protection,
and safety, should be assisted through the joint efforts of the state, local
jurisdictions, and the private sector.
State
funding for rail service ((or)), rail preservation, and corridor
preservation projects must benefit the state's interests((, which
include)). The state's interest is served by reducing public
roadway maintenance and repair costs, increasing economic development
opportunities, increasing domestic and international trade, preserving
jobs, and enhancing safety((, and)). State funding for projects
is contingent upon appropriate local jurisdiction and private sector
participation and cooperation. Before spending state moneys on projects
the department shall seek federal, local, and private funding and
participation to the greatest extent possible.
(1)
The department of transportation shall continue to monitor the status of the
state's ((light density line system)) mainline and branchline common
carrier railroads and preserved rail corridors through the state rail plan
and various analyses, and shall seek alternatives to abandonment prior to
interstate commerce commission proceedings, where feasible.
(2)
The utilities and transportation commission shall intervene in interstate
commerce commission proceedings on abandonments, when necessary, to protect the
state's interest.
(3) ((As
conditions warrant, the following criteria shall be used for identifying the
state's essential rail system:
(a)
Established regional and short-line carriers excluding private operations which
are not common carriers;
(b)
Former state project lines, which are lines that have been studied and have
received funds from the state and federal governments;
(c)
Lines serving major agricultural and forest product areas or terminals, with
such terminals generally being within a fifty-mile radius of producing areas,
and sites associated with commodities shipped by rail;
(d)
Lines serving ports, seaports, and navigable river ports;
(e)
Lines serving power plants or energy resources;
(f)
Lines used for passenger service;
(g)
Mainlines connecting to the national and Canadian rail systems;
(h)
Major intermodal service points or hubs; and
(i)
The military's strategic rail network)) The department of
transportation, in consultation with the Washington state freight rail policy
advisory committee, shall establish criteria for evaluating rail projects and
corridors of significance to the state.
(4)
Local jurisdictions may implement rail service preservation projects in the
absence of state participation.
(5)
The department of transportation shall continue to monitor projects for which
it provides assistance.
Sec.
6. RCW
47.76.250 and 1993 c 224 s 4 are each amended to read as follows:
(1)
The essential rail assistance account is created in the state treasury. Moneys
in the account may be appropriated only for the purposes specified in this
section.
(2)
Moneys appropriated from the account to the department of transportation may be
used by the department or distributed by the department to cities, county rail
districts, counties, economic development councils, and port districts
for the purpose of:
(a)
Acquiring, rebuilding, rehabilitating, or improving ((branch)) rail
lines;
(b)
Purchasing or rehabilitating railroad equipment necessary to maintain essential
rail service;
(c) Constructing
railroad improvements to mitigate port access or mainline congestion;
(d)
Construction of ((transloading)) loading facilities to increase
business on light density lines or to mitigate the impacts of abandonment; ((or
(d))) (e)
Preservation, including operation, of ((viable)) light density lines, as
identified by the Washington state department of transportation, in compliance
with this chapter; or
(f)
Preserving rail corridors for future rail purposes by purchase of rights of
way. The department shall first pursue transportation enhancement program
funds, available under the federal surface transportation program, to the
greatest extent practicable to preserve rail corridors. Purchase of rights of
way may include track, bridges, and associated elements, and must meet the
following criteria:
(i)
The right of way has been identified and evaluated in the state rail plan
prepared under this chapter;
(ii)
The right of way may be or has been abandoned; and
(iii)
The right of way has potential for future rail service.
(3)
The department or the participating local jurisdiction is responsible for
maintaining any right of way acquired under this chapter, including provisions
for drainage management, fire and weed control, and liability associated with
ownership.
(4)
Nothing in this section impairs the reversionary rights of abutting landowners,
if any, without just compensation.
(((3)))
(5) The department, cities, county rail districts, counties, and port
districts may grant franchises to private railroads for the right to operate on
lines acquired under this chapter.
(((4)))
(6) The department, cities, county rail districts, counties, and port
districts may grant trackage rights over rail lines acquired under this
chapter.
(((5)))
(7) If rail lines or rail rights of way are used by county rail
districts, port districts, state agencies, or other public agencies for the
purposes of rail operations and are later abandoned, the rail lines or rail
rights of way cannot be used for any other purposes without the consent of the
underlying fee title holder or reversionary rights holder, or until
compensation has been made to the underlying fee title holder or reversionary
rights holder.
(((6)
Projects should be prioritized on the basis)) (8) The department of
transportation shall develop criteria for prioritizing freight rail projects
that meet the minimum eligibility requirements for state assistance under RCW
47.76.240. The department shall develop criteria in consultation with the
Washington state freight rail policy advisory committee. Project criteria
should consider the level of local financial commitment to the project as
well as cost/benefit ratio. Counties, local communities, railroads, shippers,
and others who benefit from the project should participate financially to
the greatest extend practicable.
(((7)))
(9) Moneys received by the department from franchise fees, trackage
rights fees, and loan payments shall be redeposited in the essential rail
assistance account. Repayment of loans made under this section shall occur
within a period not longer than fifteen years, as set by the department. The
repayment schedule and rate of interest, if any, shall be determined before the
distribution of the moneys.
(((8)))
(10) The state shall maintain a contingent interest in ((a line))
any equipment, property, rail line, or facility that has outstanding
grants or loans. The owner may not use the line as collateral, remove track,
bridges, or associated elements for salvage, or use it in any other manner
subordinating the state's interest without permission from the department.
(11)
Moneys distributed under this chapter should be provided as loans wherever
practicable. For improvements on or to privately owned railroads, railroad
property, or other private property, moneys distributed shall be provided
solely as loans.
Sec.
7. RCW
47.76.270 and 1993 c 224 s 6 are each amended to read as follows:
(1)
The essential rail banking account is ((created in the state treasury.
Moneys in the account may be spent only after appropriation. Expenditures from
the account may be used only for the purposes specified in this section.
(2)
Moneys in the account may be used by the department to:
(a)
Acquire rail rights of way;
(b)
Provide funding to cities, port districts, counties, and county rail districts
to acquire rail rights of way; or
(c)
Provide for essential corridor maintenance including drainage management and
fire and weed control when necessary.
(3)
Use of the moneys pursuant to subsection (2) of this section shall be for
rights of way that meet the following criteria:
(a)
The right of way has been identified and evaluated in the state rail plan
prepared pursuant to this chapter;
(b)
The right of way may be or has been abandoned; and
(c)
The right of way has potential for future rail service. The department of
transportation shall immediately report any expenditure of essential rail
banking account funds on rail banking projects to the legislative
transportation committee. The report shall include a description of the
project, the project's rank in relation to other potential projects, the amount
of funds expended, the terms and parties to the transaction, and any other
information that the legislative transportation committee may require.
(4)
The department may also expend funds from the receipt of a donation of funds
sufficient to cover the property acquisition and management costs. The
department may receive donations of funds for this purpose, which shall be
conditioned upon, and made in consideration for the repurchase rights contained
in RCW 47.76.280.
(5)
The department or the participating local jurisdiction shall be responsible for
maintaining the right of way, including provisions for drainage management, for
fire and weed control, and for liability associated with ownership.
(6)
Nothing in this section and in RCW 47.76.260 and 47.76.250 shall be interpreted
or applied so as to impair the reversionary rights of abutting landowners, if
any, without just compensation.
(7)
The department shall develop guidelines for expenditure of essential rail
banking funds in the best interest of the state.
(8)
Moneys loaned under this section must be repaid to the state by the city, port
district, county, or county rail district. The repayment must occur within a
period not longer than fifteen years, as set by the department, of the
distribution of the moneys and deposited in the essential rail banking
account. The repayment schedule and rate of interest, if any, must be set at
the time of the distribution of the moneys.
(9)
The state shall maintain a contingent interest in any property that has
outstanding grants or loans. The owner may not use the line as collateral,
remove track, bridges, and associated elements for salvage, or use the line in
any other manner subordinating the state's interest without permission from the
department)) merged into the essential rail assistance account
created under RCW 47.76.250. Any appropriations made to the essential rail
banking account are transferred to the essential rail assistance account, and
are subject to the restrictions of that account.
Sec.
8. RCW
47.76.280 and 1993 c 224 s 7 are each amended to read as follows:
The
department may sell or lease property acquired under this chapter to a county
rail district established under chapter 36.60 RCW, a county, a port district,
or any other public or private entity authorized to operate rail service. Any
public or private entity ((which)) that originally donated funds
to the department under this chapter shall receive credit against the purchase
price for the amount donated to the department, less management costs, in the
event such public or private entity purchases the property from the department.
If no
county rail district, county, port district, or other public or private entity
authorized to operate rail service purchases or leases the property within six
years after its acquisition by the department, the department may sell or lease
such property in the manner provided in RCW 47.76.290. Failing this, the
department may sell or convey all such property in the manner provided in RCW
47.76.300 or 47.76.320.
NEW
SECTION. Sec. 9. A new
section is added to chapter 47.76 RCW to read as follows:
The
department of transportation shall convene a Washington state freight rail
policy advisory committee from time to time as necessary to accomplish the
purposes of this chapter. The committee shall consist of representatives from
large and small railroads, agriculture, rural regional transportation planning
organizations, urban metropolitan planning organizations, select department of
transportation regions, the transportation commission, port districts, cities,
counties, organized rail labor, and other parties with an interest in the
vitality of freight rail. The purpose of this committee will be to provide
policy direction and program oversight.
NEW
SECTION. Sec. 10. RCW
47.76.260 and 1993 c 224 s 5 & 1990 c 43 s 5 are each repealed.
