BP BHEAD INT S

AN ACT Relating to environmental mitigation of transportation projects; amending RCW 43.79A.040; adding new sections to chapter 47.12 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. It is the intent of this act to provide the department of transportation with a fiscal mechanism by which the process of mitigating adverse environmental impacts from transportation projects can be improved. Current transportation funding provides limited flexibility for the department to actively participate in cost-effective, multi-jurisdictional, and watershed techniques of transportation project impact mitigation. The watershed approach to environmental management is generally agreed upon by state and federal environmental resource agencies to be more effective, in many cases, than the traditional approach of managing environmental issues on a media and location-specific basis. Providing environmental mitigation in advance at select locations will provide a more efficient and predictable environmental permit process, increase benefit to environmental resources, and serve as a key tool in using the watershed approach for environmental impact mitigation. The legislative transportation committee, through its adoption of the December 1994 report "Environmental Cost Savings and Permit Coordination Study," directs state agencies to use the watershed approach in an improved environmental mitigation and permitting process. Establishment of an advanced transportation environmental mitigation revolving account would help the state to improve permit processes and environmental protection as related to providing transportation services.

NEW SECTION. Sec. 2. A new section is added to chapter 47.12 RCW to read as follows:

For the purpose of environmental mitigation of transportation projects, the department may acquire and develop environmental mitigation in advance of the construction of programmed projects. The term "advanced environmental mitigation" means mitigation of adverse impacts upon the environment from the design and construction of transportation projects, generally not more than ten years in advance of programmed transportation projects. Advanced environmental mitigation consists of the acquisition of property; the acquisition of property, water, or air rights (i.e. air pollution credits); the development of property for the purposes of improved environmental management; engineering costs necessary for such purchase and development; and the use of advanced environmental mitigation sites to fulfill project environmental permit requirements. Advanced environmental mitigation is for projects approved by the transportation commission as part of the state's six-year plan or included in the state's route development planning effort. Advanced environmental mitigation may also be conducted in partnership with federal, state, or local government agencies, tribal governments, interest groups, or private parties.

NEW SECTION. Sec. 3. A new section is added to chapter 47.12 RCW to read as follows:

The advanced environmental mitigation revolving account is created in the custody of the treasurer, into which the department shall deposit directly and may expend without appropriation:

(1) An initial appropriation included in the department of transportation's 1997-99 budget, and deposits from other identified sources;

(2) All moneys received by the department from internal and external sources for the purposes of conducting advanced environmental mitigation; and

(3) All interest gained from the management of the advanced environmental mitigation revolving account.

NEW SECTION. Sec. 4. A new section is added to chapter 47.12 RCW to read as follows:

(1) After advanced environmental mitigation is conducted from funds in the advanced environmental mitigation revolving account, the advanced environmental mitigation sites must be managed in accordance with any permits, agreements, or other legal documents under which the subject advanced environmental mitigation was conducted.

(2) When the department or any of its transportation partners proceeds with the construction of a transportation project that will use advanced environmental mitigation sites to meet environmental mitigation needs of the project, the department shall reimburse the advanced environmental mitigation revolving account from those transportation project funds for the use of the advanced environmental mitigation sites. The department shall pay all reimbursements to the advanced environmental mitigation revolving account at the rate of the original acquisition and development cost of the advanced mitigation site plus an annual rate adjustment based on inflation and a five percent fee to cover administrative costs. When only a portion of an advanced environmental mitigation site is used, the reimbursement rate charged to the purchasing party will be prorated for the portion used.

NEW SECTION. Sec. 5. A new section is added to chapter 47.12 RCW to read as follows:

At the end of each biennium, the department shall report to the legislative transportation committee and the office of financial management:

(1) Which properties were purchased and why;

(2) Expenditures for the acquired parcels; and

(3) Estimated savings from these actions.

Sec. 6. RCW 43.79A.040 and 1996 c 253 s 409 are each amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced environmental mitigation revolving account, the agricultural local fund, the American Indian scholarship endowment fund, the Washington international exchange scholarship endowment fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the rural rehabilitation account, and the self-insurance revolving fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, and the local rail service assistance account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.