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.The text of the following section has been
vetoed by the Governor. It is noted in bold italic.
*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.
*Sec. 9
was vetoed. See message at end of chapter.
NEW SECTION. Sec.
10. RCW 47.76.260 and 1993 c
224 s 5 & 1990 c 43 s 5 are each repealed.
