BILL REQ. #:  H-4457.1 



_____________________________________________ 

HOUSE BILL 3220
_____________________________________________
State of Washington59th Legislature2006 Regular Session

By Representatives Cox, Haler, Condotta, Jarrett, Kristiansen, Kretz, Dunn and Woods

Read first time 01/26/2006.   Referred to Committee on Transportation.



     AN ACT Relating to coordination of statewide freight mobility planning and administration; amending RCW 47.06A.020, 47.06A.030, 47.76.210, 47.76.220, 47.76.230, 47.76.240, 47.76.250, 47.76.280, 47.76.290, 47.76.300, 47.76.310, 47.76.320, and 47.76.350; adding new sections to chapter 47.06A RCW; adding a new section to chapter 47.76 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 47.06A RCW to read as follows:
     (1) The legislature finds that:
     (a) 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 a freight mobility network that efficiently moves goods. Agricultural products compose a significant portion of the goods moved over the state's freight mobility network.
     (b) The agricultural industry is a vital state economic interest. Once food and agricultural products have been processed, packaged, and shipped, the overall economic impact is estimated at thirteen percent of the state's total economy.
     (c) A coordinated and comprehensive state policy on freight mobility is needed to facilitate freight movement to local, national, and international markets. Currently, the administration of freight mobility is conducted under two separate state entities: The department of transportation and the freight mobility strategic investment board.
     (2) In order to provide a more coordinated and comprehensive state policy on freight mobility and increase coordination with the agricultural industry, it is the intent of the legislature that statewide freight mobility planning and administration be combined into one entity, the freight mobility strategic investment board, and that the membership of the freight mobility strategic investment board include the director of the department of agriculture or his or her designee.

NEW SECTION.  Sec. 2   A new section is added to chapter 47.06A RCW to read as follows:
     (1) All powers, duties, and functions of the department pertaining to freight rail mobility as described in this act are transferred to the board. The department's rail engineering and environmental services functions shall remain within the department.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the board. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department in carrying out the powers, functions, and duties transferred shall be made available to the board. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the board.
     (b) Any appropriations made to the department for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the board.
     (c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall both make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the department engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the board. All employees classified under chapter 41.06 RCW are assigned to the board to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the department pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the board. All existing contracts and obligations shall remain in full force and shall be performed by the board.
     (5) The transfer of the powers, duties, functions, and personnel of the department shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these entities shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

Sec. 3   RCW 47.06A.020 and 2005 c 319 s 125 are each amended to read as follows:
     (1) The board shall:
     (a) Adopt rules and procedures necessary to implement the freight mobility strategic investment program;
     (b) Administer the freight mobility plan designated under RCW 47.06.045 and the freight rail plan designated under RCW 47.06.080;
     (c)
Solicit from public entities proposed projects that meet eligibility criteria established in accordance with subsection (4) of this section; ((and
     (c)
)) (d) Review and evaluate project applications based on strategic freight criteria ((established under this section)), 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. In determining the appropriate level of state funding for a project, the board shall ensure that state funds are allocated to leverage the greatest amount of partnership funding possible. After selecting projects comprising the portfolio, the board shall submit them as part of its budget request to the office of financial management and the legislature. The board 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 board shall reject those projects that appear to improve overall general mobility with limited enhancement for freight mobility; and
     (e) Develop criteria and administer a program investing in freight rail and other nonstrategic freight initiatives that carry out the goal of improving statewide freight mobility
.
     The board shall provide periodic progress reports on its activities to the office of financial management and the senate and house transportation committees.
     (2) The board 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.
     (3) The board shall designate strategic freight corridors within the state. The board 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.
     (4) The board shall utilize threshold project eligibility criteria for the strategic corridor program 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.
     These criteria do not apply to the program described in subsection (1)(e) of this section.
     (5) From June 11, 1998, through the biennium ending June 30, 2001, the board shall use the multicriteria analysis and scoring framework for evaluating and ranking eligible freight mobility and freight mitigation projects developed by the freight mobility project prioritization committee and contained in the January 16, 1998, report entitled "Project Eligibility, Priority and Selection Process for a Strategic Freight Investment Program." The prioritization process shall measure the degree to which projects address important program objectives and shall generate a project score that reflects a project's priority compared to other projects. The board shall assign scoring points to each criterion that indicate the relative importance of the criterion in the overall determination of project priority. After June 30, 2001, the board may supplement and refine the initial project priority criteria and scoring framework developed by the freight mobility project prioritization committee as expertise and experience is gained in administering the freight mobility program.
     (6) It is the intent of the legislature that each freight mobility project contained in the project portfolio submitted by the board utilize the greatest amount of nonstate funding possible. The board shall adopt rules that give preference to projects that contain the greatest levels of financial participation from nonprogram fund sources. The board shall consider twenty percent as the minimum partnership contribution, but shall also ensure that there are provisions allowing exceptions for projects that are located in areas where minimal local funding capacity exists or where the magnitude of the project makes the adopted partnership contribution financially unfeasible.
     (7) The board shall develop and recommend policies that address operational improvements that primarily benefit and enhance freight movement, including, but not limited to, policies that reduce congestion in truck lanes at border crossings and weigh stations and provide for access to ports during nonpeak hours.
     (8) The board shall develop project selection criteria and policies to carry out the state's freight rail mobility program.

Sec. 4   RCW 47.06A.030 and 1999 c 216 s 2 are each amended to read as follows:
     (1) The freight mobility strategic investment board is created. The board shall convene by July 1, 1998.
     (2) The board is composed of ((twelve)) thirteen members. The following members are appointed by the governor 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) one member representing the office of financial management; (e) one member appointed as a representative of the trucking industry; (f) one member appointed as a representative of the railroads; (g) the secretary of the department of transportation or his or her designee; (h) one member representing the steamship industry; ((and)) (i) one member of the general public; and (j) the director of the department of agriculture or his or her designee. In appointing the general public member, the governor shall endeavor to appoint a member with special expertise in relevant fields such as public finance, freight transportation, or public works construction. The governor shall appoint the general public member as chair of the board. In making appointments to the board, the governor shall ensure that each geographic region of the state is represented.
     (3) Members of the board shall be reimbursed for reasonable and customary travel expenses as provided in RCW 43.03.050 and 43.03.060.
     (4) If a vacancy on the board occurs by death, resignation, or otherwise, the governor 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.
     (5) The appointments made in subsection (2) of this section are not subject to confirmation.

NEW SECTION.  Sec. 5   A new section is added to chapter 47.76 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the freight mobility strategic investment board created in RCW 47.06A.030.
     (2) "Department" means the department of transportation.

Sec. 6   RCW 47.76.210 and 1995 c 380 s 2 are each amended to read as follows:
     The ((Washington state department of transportation)) board shall implement a state freight rail program 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. 7   RCW 47.76.220 and 1995 c 380 s 3 are each amended to read as follows:
     (1) The ((department of transportation)) board shall prepare and periodically update a state freight 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;
     (d) Quantify the costs and benefits of maintaining rail service on those lines that are likely to be abandoned;
     (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)) board pursuant to the federal Railroad Revitalization and Regulatory Reform Act.

Sec. 8   RCW 47.76.230 and 1995 c 380 s 4 are each amended to read as follows:
     (1) The ((department of transportation)) board shall ((continue its responsibility)) be responsible 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)) board 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)) board shall provide technical assistance, upon request, to state agencies and local interests. Technical assistance includes, but is not limited to, the following:
     (a) Rail project cost-benefit analyses 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)) board, 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.

Sec. 9   RCW 47.76.240 and 1995 c 380 s 5 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 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, rail preservation, and corridor preservation projects must benefit the state's interests. 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. State funding for projects is contingent upon appropriate local jurisdiction and private sector participation and cooperation. Before spending state moneys on projects the ((department)) board shall seek federal, local, and private funding and participation to the greatest extent possible.
     (1) The ((department of transportation)) board shall ((continue to)) monitor the status of the state's 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) The ((department of transportation)) board, 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)) board shall ((continue to)) monitor projects for which it provides assistance.

Sec. 10   RCW 47.76.250 and 1996 c 73 s 2 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)) board may be used by the ((department)) board or distributed by the ((department)) board to cities, county rail districts, counties, economic development councils, and port districts for the purpose of:
     (a) Acquiring, rebuilding, rehabilitating, or improving 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 loading facilities to increase business on light density lines or to mitigate the impacts of abandonment;
     (e) Preservation, including operation, of light density lines, as identified by the ((Washington state department of transportation)) board, in compliance with this chapter; or
     (f) Preserving rail corridors for future rail purposes by purchase of rights of way. The ((department)) board 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)) board or the participating local jurisdiction is responsible for maintaining any right of way acquired under this chapter, using the department's freight rail capital program, 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.
     (5) The ((department)) board, 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.
     (6) The ((department)) board, cities, county rail districts, counties, and port districts may grant trackage rights over rail lines acquired under this chapter.
     (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.
     (8) The ((department of transportation)) board shall develop criteria for prioritizing freight rail projects that meet the minimum eligibility requirements for state assistance under RCW 47.76.240. The ((department)) board 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 extent practicable.
     (9) Moneys received by the ((department)) board 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)) board. The repayment schedule and rate of interest, if any, shall be determined before the distribution of the moneys.
     (10) The state shall maintain a contingent interest in 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)) board.
     (11) Moneys distributed under this chapter should be provided as loans wherever practicable. Except as provided by section 3, chapter 73, Laws of 1996, for improvements on or to privately owned railroads, railroad property, or other private property, moneys distributed shall be provided solely as loans.

Sec. 11   RCW 47.76.280 and 1995 c 380 s 8 are each amended to read as follows:
     The ((department)) board 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 that originally donated funds to the ((department)) board under this chapter shall receive credit against the purchase price for the amount donated to the ((department)) board, less management costs, in the event such public or private entity purchases the property from the ((department)) board.
     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)) board, the ((department)) board may sell or lease such property in the manner provided in RCW 47.76.290. Failing this, the ((department)) board may sell or convey all such property in the manner provided in RCW 47.76.300 or 47.76.320.

Sec. 12   RCW 47.76.290 and 1993 c 224 s 8 are each amended to read as follows:
     (1) If real property acquired by the ((department)) board under this chapter is not sold to a public or private entity authorized to operate rail service within six years of its acquisition by the ((department)) board, the ((department)) board may sell or lease the property at fair market value to any of the following governmental entities or persons:
     (a) Any other state agency;
     (b) The city or county in which the property is situated;
     (c) Any other municipal corporation;
     (d) The former owner, heir, or successor of the property from whom the property was acquired;
     (e) Any abutting private owner or owners.
     (2) Notice of intention to sell under this section shall be given by publication in one or more newspapers of general circulation in the area in which the property is situated not less than thirty days prior to the intended date of sale.
     (3) Sales to purchasers may, at the ((department's)) board's option, be for cash or by real estate contract.
     (4) Conveyances made under this section shall be by deed executed by the ((secretary of transportation)) board and shall be duly acknowledged.
     (5) All moneys received under this section shall be deposited in the essential rail banking account of the general fund.

Sec. 13   RCW 47.76.300 and 1993 c 224 s 9 are each amended to read as follows:
     If real property acquired by the ((department)) board under this chapter is not sold to a public or private entity authorized to operate rail service within six years of its acquisition by the ((department)) board, the ((department)) board may transfer and convey the property to the United States, its agencies or instrumentalities, to any other state agency, or to any county or city or port district of this state when, in the judgment of the ((secretary)) board, the transfer and conveyance is consistent with the public interest. Whenever the ((secretary)) board makes an agreement for any such transfer or conveyance, the ((secretary)) board shall execute and deliver to the grantee a deed of conveyance, easement, or other instrument, duly acknowledged, as necessary to fulfill the terms of the agreement. All moneys paid to the state of Washington under this section shall be deposited in the essential rail banking account of the general fund.

Sec. 14   RCW 47.76.310 and 1993 c 224 s 10 are each amended to read as follows:
     The ((department)) board is authorized subject to the provisions and requirements of zoning ordinances of political subdivisions of government, to rent or lease any lands acquired under this chapter, upon such terms and conditions as the ((department)) board determines.

Sec. 15   RCW 47.76.320 and 1993 c 224 s 11 are each amended to read as follows:
     (1) If real property acquired by the ((department)) board under this chapter is not sold, conveyed, or leased to a public or private entity within six years of its acquisition by the ((department)) board, the ((department)) board may, in its discretion, sell the property at public auction in accordance with subsections (2) through (5) of this section.
     (2) The ((department)) board shall first give notice of the sale by publication on the same day of the week for two consecutive weeks, with the first publication at least two weeks before the date of the auction, in a legal newspaper of general circulation in the area where the property to be sold is located. The notice shall be placed in both the legal notices section and the real estate classified section of the newspaper. The notice shall contain a description of the property, the time and place of the auction, and the terms of the sale. The sale may be for cash or by real estate contract.
     (3) In accordance with the terms set forth in the notice, the ((department)) board shall sell the property at the public auction to the highest and best bidder if the bid is equal to or higher than the appraised fair market value of the property.
     (4) If no bids are received at the auction or if all bids are rejected, the ((department)) board may, in its discretion, enter into negotiations for the sale of the property or may list the property with a licensed real estate broker. No property may be sold by negotiations or through a broker for less than the property's appraised fair market value. Any offer to purchase real property under this subsection shall be in writing and may be rejected at any time before written acceptance by the ((department)) board.
     (5) Conveyances made under this section shall be by deed executed by the ((secretary of transportation)) board and shall be duly acknowledged.
     (6) All moneys received under this section shall be deposited in the essential rail banking account of the general fund.

Sec. 16   RCW 47.76.350 and 1990 c 43 s 10 are each amended to read as follows:
     The ((department of transportation)) board shall ((continue to)) monitor federal rail policies and congressional action and communicate to Washington's congressional delegation and federal transportation agencies the need for a balanced transportation system and associated funding.

NEW SECTION.  Sec. 17   This act takes effect January 1, 2007.

--- END ---