Z-1190.1  _______________________________________________

 

                          HOUSE BILL 2615

          _______________________________________________

 

State of Washington      55th Legislature     1998 Regular Session

 

By Representatives K. Schmidt, Fisher, Robertson, Mitchell, Wensman, O'Brien, Wood, Ogden, Gardner, Thompson and Conway; by request of Governor Locke

 

Read first time 01/16/98.  Referred to Committee on Transportation Policy & Budget.

Creating partnerships for strategic freight investments.


    AN ACT Relating to creating partnerships for strategic freight investments; amending RCW 47.01.071 and 47.05.051; adding a new section to chapter 47.06 RCW; and adding a new chapter to Title 47 RCW.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    NEW SECTION.  Sec. 1.  The legislature finds that:

    (1) Washington state is uniquely positioned as a gateway to the global economy.  As the most trade-dependent state in the nation, per capita, Washington's economy is highly dependent on an efficient multimodal transportation network in order to remain competitive.

    (2) The vitality of the state's economy is placed at risk by growing traffic congestion that impedes the safe and efficient  movement of goods.  The absence of a comprehensive and coordinated state policy that facilitates freight movements to local, national, and international markets limits trade opportunities.

    (3) Freight corridors that serve international and domestic interstate and intrastate trade, and those freight corridors that enhance the state's competitive position through regional and global gateways are strategically important.  In many instances, movement of freight on these corridors is diminished by:  Barriers that block or delay access to intermodal facilities where freight is transferred from one mode of transport to another; conflicts between rail and road traffic; constraints on rail capacity; highway capacity constraints, congestion, and condition; waterway system depths that affect capacity; and institutional, regulatory, and operational barriers.

    (4) Rapidly escalating population growth is placing an added burden on streets, roads, and highways that serve as freight corridors.  Community benefits from economic activity associated with freight movement often conflict with community concerns over safety, mobility, environmental quality.  Efforts to minimize community impacts in areas of high freight movements that encourage the active participation of communities in the early stages of proposed public and private infrastructure investments will facilitate needed freight mobility improvements.

    (5) Ownership of the freight mobility network is fragmented and spread across various public jurisdictions, private companies, and state and national borders.  Transportation projects have grown in complexity and size, requiring more resources and longer implementation time frames.  Currently, there is no comprehensive and integrated framework for planning the freight mobility needs of public and private stakeholders in the freight transportation system.  A coordinated planning process should identify new infrastructure investments that are integrated by public and private planning bodies into a multimodal and multijurisdictional network in all areas of the state, urban and rural, east and west.  The state should integrate freight mobility goals with state policy on related issues such as economic development, growth management, and environmental management.

    (6) It is the policy of the state of Washington that limited public transportation funding and competition between freight and general mobility improvements for the same fund sources require strategic, prioritized freight investments that reduce barriers to freight movement, maximize cost-effectiveness, yield a return on the state's investment, require complementary investments by public and private interests, and solve regional freight mobility problems.  State financial assistance for freight mobility projects must leverage other funds from all potential partners and sources, including federal, county, city, port district, and private capital.

 

    NEW SECTION.  Sec. 2.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Board" means the freight mobility strategic investment board created in section 5 of this act.

    (2) "Commission" means the transportation commission.

    (3) "Department" means the department of transportation.

    (4) "Freight mobility" means the safe, reliable, and efficient movement of goods within and through the state to ensure the state's economic vitality.

    (5) "Local governments" means cities, towns, counties, special purpose districts, port districts, and any other municipal corporations or quasi-municipal corporations in the state excluding school districts.

    (6) "Public entity" means a state agency, city, town, county, port district, or municipal or regional planning organization.

    (7) "Strategic freight corridor" means a transportation corridor of great economic importance within an integrated freight system that:

    (a) Serves international and domestic interstate and intrastate trade;

    (b) Enhances the state's competitive position through regional and global gateways;

    (c) Carries freight tonnages of:

    (i) Four million gross tons annually on state highways, city streets, and county roads;

    (ii) Five million gross tons annually on railroads; or

    (iii) Two and one-half million net tons on waterways; and

    (d) Has been designated a strategic corridor by the department under section 7(2) of this act.  However, new alignments to, realignments of, and new links for strategic corridors may qualify, even though no tonnage data exists for facilities to be built in the future.

 

    Sec. 3.  RCW 47.01.071 and 1981 c 59 s 2 are each amended to read as follows:

    The transportation commission shall have the following functions, powers, and duties:

    (1) To propose policies to be adopted by the legislature designed to assure the development and maintenance of a comprehensive and balanced state-wide transportation system which will meet the needs of the people of this state for safe and efficient transportation services.  Wherever appropriate the policies shall provide for the use of integrated, intermodal transportation systems to implement the social, economic, and environmental policies, goals, and objectives of the people of the state, and especially to conserve nonrenewable natural resources including land and energy.  To this end the commission shall:

    (a) Develop transportation policies which are based on the policies, goals, and objectives expressed and inherent in existing state laws;

    (b) Inventory the adopted policies, goals, and objectives of the local and area-wide governmental bodies of the state and define the role of the state, regional, and local governments in determining transportation policies, in transportation planning, and in implementing the state transportation plan;

    (c) Propose a transportation policy for the state, and after notice and public hearings, submit the proposal to the legislative transportation committee and the senate and house transportation committees by January 1, 1978, for consideration in the next legislative session;

    (d) Establish a procedure for review and revision of the state transportation policy and for submission of proposed changes to the legislature;

    (e) To integrate the state-wide transportation plan with the needs of the elderly and handicapped, and to coordinate federal and state programs directed at assisting local governments to answer such needs;

    (2) To establish the policy of the department to be followed by the secretary on each of the following items:

    (a) To provide for the effective coordination of state transportation planning with national transportation policy, state and local land use policies, and local and regional transportation plans and programs;

    (b) To provide for public involvement in transportation designed to elicit the public's views both with respect to adequate transportation services and appropriate means of minimizing adverse social, economic, environmental, and energy impact of transportation programs;

    (c) To provide for the administration of grants in aid and other financial assistance to counties and municipal corporations for transportation purposes;

    (d) To provide for the management, sale, and lease of property or property rights owned by the department which are not required for transportation purposes;

    (3) To direct the secretary to prepare and submit to the commission a comprehensive and balanced state-wide transportation plan which shall be based on the transportation policy adopted by the legislature and applicable state and federal laws.  After public notice and hearings, the commission shall adopt the plan and submit it to the legislative transportation committee and to the house and senate standing committees on transportation before January 1, 1980, for consideration in the 1980 regular legislative session.  The plan shall be reviewed and revised prior to each regular session of the legislature during an even-numbered year thereafter.  A preliminary plan shall be submitted to such committees by January 1, 1979.

    The plan shall take into account federal law and regulations relating to the planning, construction, and operation of transportation facilities;

    (4) To propose to the governor and the legislature prior to the convening of each regular session held in an odd-numbered year a recommended budget for the operations of the commission as required by RCW 47.01.061;

    (5) To approve and propose to the governor and to the legislature prior to the convening of each regular session during an odd-numbered year a recommended budget for the operation of the department and for carrying out the program of the department, including a portfolio of projects for the freight mobility strategic investment program, as required by section 4 of this act, for the ensuing biennium.  The proposed budget shall separately state the appropriations to be made from the motor vehicle fund for highway purposes in accordance with constitutional limitations and appropriations and expenditures to be made from the general fund, or accounts thereof, and other available sources for other operations and programs of the department;

    (6) To review and authorize all departmental requests for legislation;

    (7) To approve the issuance and sale of all bonds authorized by the legislature for capital construction of state highways, toll facilities, Columbia Basin county roads (for which reimbursement to the motor vehicle fund has been provided), urban arterial projects, and aviation facilities;

    (8) To adopt such rules, regulations, and policy directives as may be necessary to carry out reasonably and properly those functions expressly vested in the commission by statute;

    (9) To delegate any of its powers to the secretary of transportation whenever it deems it desirable for the efficient administration of the department and consistent with the purposes of this title;

    (10) To exercise such other specific powers and duties as may be vested in the transportation commission by this or any other provision of law.

 

    NEW SECTION.  Sec. 4.  (1) The commission shall:

    (a) Adopt rules and procedures necessary to implement the freight mobility strategic investment program;

    (b) Solicit from public entities proposed projects that meet eligibility criteria established in accordance with section 7(3) of this act; and

    (c) Review and evaluate project applications based on criteria established under section 7 of this act, and prioritize and select projects comprising a portfolio to be funded in part with grants from state funds appropriated for the freight mobility strategic investment program.  After selecting projects comprising the portfolio, the commission shall include them in its budget request to the office of financial management and the legislature.  The commission shall ensure that projects submitted as part of the portfolio are not more appropriately funded with other federal, state, or local government funding mechanisms or programs.  The commission shall reject those projects that appear to improve overall general mobility with limited enhancement for freight mobility.

    The commission shall provide periodic progress reports to the governor and the legislative transportation committee.

    (2) The commission may:

    (a) Accept from any state or federal agency, loans or grants for the financing of any transportation project and enter into agreements with any such agency concerning the loans or grants;

    (b) Provide technical assistance to project applicants;

    (c) Accept any gifts, grants, or loans of funds, property, or financial, or other aid in any form from any other source on any terms and conditions which are not in conflict with this chapter;

    (d) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter; and

    (e) Do all things necessary or convenient to carry out the powers expressly granted or implied under this chapter.

 

    NEW SECTION.  Sec. 5.  (1) The freight mobility strategic investment board is created.  The board shall advise the commission in carrying out its duties under section 4 of this act.

    (2) The board is composed of twelve members.  The following members are appointed by the secretary of the department for terms of four years, except that five members initially are appointed for terms of two years:  (a) Two members, one of whom is from a city located within or along a strategic freight corridor, appointed from a list of at least four persons nominated by the association of Washington cities or its successor; (b) two members, one of whom is from a county having a strategic freight corridor within its boundaries, appointed from a list of at least four persons nominated by the Washington state association of counties or its successor; (c) two members, one of whom is from a port district located within or along a strategic freight corridor, appointed from a list of at least four persons nominated by the Washington public ports association or its successor; (d) two members representing the governor; (e) one member appointed as a representative of the trucking industry; (f) one member appointed as a representative of the railroads; (g) the chair of the transportation commission or his or her designee, provided the designee is a member of the commission; and (h) one member of the general public.  In appointing the general public member, the secretary shall endeavor to appoint a member with special expertise in relevant fields such as public finance, freight transportation, or public works construction.  The secretary shall appoint the general public member as chair of the board.  In making appointments to the board, the secretary shall ensure that each geographic region of the state is represented.

    (3) Members of the board may not receive compensation but may be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.

    (4) If a vacancy on the board occurs by death, resignation, or otherwise, the secretary shall fill the vacant position for the unexpired term.  Each vacancy in a position appointed from lists provided by the associations and departments under subsection (2) of this section must be filled from a list of at least four persons nominated by the relevant association or associations.

 

    NEW SECTION.  Sec. 6.  Staff support to the board and the commission for the freight mobility strategic investment program shall be provided by the transportation economic partnerships division within the department, with other departmental divisions providing staff support as necessary.

 

    NEW SECTION.  Sec. 7.  The department shall provide assistance and support to facilitate implementation of a freight mobility strategic investment program in accordance with subsections (1) through (5) of this section, including providing state financial and technical assistance.

    (1) Before June 30, 1999, for the purposes of initial program implementation, the department shall consider:  (a) The freight mobility analysis developed jointly between the Puget Sound regional transportation planning organization and the office of urban mobility within the department for the project known as FAST Corridor; (b) the recommendations of the freight mobility advisory committee, established and appointed by the legislative transportation committee during the 1996 interim; (c) the recommendations of the 1997 eastern Washington freight mobility study; and (d) the recommendations of the 1997 freight mobility project prioritization committee.

    (2) The department shall designate strategic freight corridors within the state.  The department shall update the list of designated strategic corridors not less than every two years, and shall establish a method of collecting and verifying data, including information on city and county-owned roadways.

    (3) The department shall develop project eligibility criteria for adoption by the commission that, at a minimum, includes the following:

    (a) The project must be on a strategic freight corridor;

    (b) The project must meet one of the following conditions:

    (i) It is primarily aimed at reducing identified barriers to freight movement with only incidental benefits to general or personal mobility; or

    (ii) It is primarily aimed at increasing capacity for the movement of freight with only incidental benefits to general or personal mobility; or

    (iii) It is primarily aimed at mitigating the impact on communities of increasing freight movement, including roadway/railway conflicts; and

    (c) The project must have a total public benefit/total public cost ratio of equal to or greater than one.

    (4) In addition to developing project eligibility criteria, the department shall also develop criteria for adoption by the commission that can be used to prioritize and select projects for possible funding.  At a minimum, selection criteria shall include consideration of the following:

    (a) The level of financial commitment from public and private partners.  In no event shall state funding be granted for more than fifty percent of total project costs;

    (b) Critical timing of investment decisions by public or private partners;

    (c) The level to which congestion or delay in the delivery of freight is reduced;

    (d) Reduction of transportation impacts on affected communities;

    (e) The relative costs and benefits of the project, including consideration of least-cost alternatives and the cost of taking no action;

    (f) Improved access to ports or border crossings;

    (g) Consistency with state and regional transportation plans, including those developed under chapter 36.70A RCW, the growth management act and under chapter 70.94 RCW, the clean air act; and

    (h) An equitable distribution of projects within the state as follows:

    (i) For the purpose of allocating funds appropriated for the freight mobility strategic investment program, the commission shall allocate fifty-five percent of funds available for expenditure pursuant to chapter . . ., Laws of 1998 (this act) to the highest priority projects, without regard to location;

    (ii) For the purpose of allocating the remainder of the funds, the state is divided into three regions as follows:

    (A) The Puget Sound region includes King, Pierce, and Snohomish counties;

    (B) The western Washington region includes Clallum, Jefferson, Island, Kitsap, San Juan, Skagit, Whatcom, Clark, Cowlitz, Grays Harbor, Lewis, Mason, Pacific, Skamania, Thurston, and Wahkiakum counties;

    (C) The eastern Washington region includes Adams, Chelan, Douglas, Ferry, Grant, Lincoln, Okanogan, Pend Oreille, Spokane, Stevens, Whitman, Asotin, Benton, Columbia, Franklin, Garfield, Kittitas, Klickitat, Walla Walla, and Yakima counties;

    (iii) The commission shall allocate funds available for expenditure pursuant to chapter  . . ., Laws of 1998 (this act) to guarantee the following geographic minimums:

    (A) Fifteen percent shall be allocated for the highest priority projects within the Puget Sound region;

    (B) Fifteen percent shall be allocated for the highest priority projects within the western Washington region;

    (C) Fifteen percent shall be allocated for the highest priority projects within the eastern Washington region;

    (iv) In the event that a region fails to submit enough qualifying projects to meet the minimum allocations, subject to approval by the commission, the appropriation shall be carried forward and dedicated to future qualifying projects in that region; and

    (v) In the event that a proposal contains projects in more than one region, for purposes of assuring that geographic minimums are accurately assigned, the commission shall evaluate the proposal and proportionally assign the benefits that are attributable to each region.

    (5) To the extent funding is made available, the department shall provide technical expertise to public entities to assist these entities in submitting proposed projects.

 

    NEW SECTION.  Sec. 8.  In order to aid the financing of eligible freight mobility projects, the commission may:

    (1) Make grants from funds appropriated for the freight mobility strategic investment program for the purpose of financing freight mobility projects.  The commission may require terms and conditions as it deems necessary or convenient to carry out the purposes of this chapter.

    (2) The state shall not bear the financial burden for project costs unrelated to the movement of freight.  Project amenities unrelated to the movement of freight may not be submitted to the commission as part of a project proposal under the freight mobility strategic investment program.

    (3) All freight mobility projects aided in whole or in part under this chapter must have a public entity designated as lead project proponent.

 

    NEW SECTION.  Sec. 9.  The commission shall keep proper records and shall be subject to audit by the state auditor.

 

    NEW SECTION.  Sec. 10.  A new section is added to chapter 47.06 RCW to read as follows:

    The state-interest component of the state-wide multimodal transportation plan shall include a freight mobility plan which shall assess the transportation needs to ensure the safe, reliable, and efficient movement of goods within and through the state and to ensure the state's economic vitality.

 

    NEW SECTION.  Sec. 11.  Port districts in the state shall submit their development plans to the relevant regional transportation planning organization or metropolitan planning organization, the department, and affected cities and counties to better coordinate the development and funding of freight mobility projects.

 

    Sec. 12.  RCW 47.05.051 and 1993 c 490 s 5 are each amended to read as follows:

    The comprehensive six-year investment program shall be based upon the needs identified in the state-owned highway component of the state-wide multimodal transportation plan as defined in RCW 47.01.071(3) and priority selection systems that incorporate the following criteria:

    (1) Priority programming for the preservation program shall take into account the following, not necessarily in order of importance:

    (a) Extending the service life of the existing highway system;

    (b) Ensuring the structural ability to carry loads imposed upon highways and bridges; and

    (c) Minimizing life cycle costs.  The transportation commission in carrying out the provisions of this section may delegate to the department of transportation the authority to select preservation projects to be included in the six-year program.

    (2) Priority programming for the improvement program shall take into account the following:

    (a) Support for the state's economy, including job creation and job preservation;

    (b) The cost-effective movement of people and goods;

    (c) Accident and accident risk reduction;

    (d) Protection of the state's natural environment;

    (e) Continuity and systematic development of the highway transportation network;

    (f) Consistency with local comprehensive plans developed under chapter 36.70A RCW;

    (g) Consistency with regional transportation plans developed under chapter 47.80 RCW;

    (h) Public views concerning proposed improvements;

    (i) The conservation of energy resources;

    (j) Feasibility of financing the full proposed improvement;

    (k) Commitments established in previous legislative sessions;

    (l) Relative costs and benefits of candidate programs;

    (m) Major projects addressing capacity deficiencies which prioritize allowing for preliminary engineering shall be reprioritized during the succeeding biennium, based upon updated project data.  Reprioritized projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding; and

    (n) Major project approvals which significantly increase a project's scope or cost from original prioritization estimates shall include a review of the project's estimated revised priority rank and the level of funding provided.  Projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding.

    (3) The commission may depart from the priority programming established under subsections (1) and (2) of this section:  (a) To the extent that otherwise funds cannot be utilized feasibly within the program; (b) as may be required by a court judgment, legally binding agreement, or state and federal laws and regulations; (c) as may be required to coordinate with federal, local, or other state agency construction projects; (d) to take advantage of some substantial financial benefit that may be available; (e) for continuity of route development; or (f) because of changed financial or physical conditions of an unforeseen or emergent nature.  The commission or secretary of transportation shall maintain in its files information sufficient to show the extent to which the commission has departed from the established priority.

    (4) The commission shall identify those projects that yield freight mobility benefits or that alleviate the impacts of freight mobility upon affected communities.

 

    NEW SECTION.  Sec. 13.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

    NEW SECTION.  Sec. 14.  Sections 1, 2, 4 through 9, and 11 of this act constitute a new chapter in Title 47 RCW.

 


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