Declares an intent that Washington state ferries be given the tools necessary to maximize existing capacity and make the most efficient use of existing assets and tax dollars.

Requires the commission to conduct a survey to gather data on ferry users to help inform level of service, operational, pricing, planning, and investment decisions. The survey must include, but is not limited to: (1) Recreational use;

(2) Walk-on customer use;

(3) Vehicle customer use;

(4) Freight and goods movement demand; and

(5) Reactions to potential operational strategies and pricing policies described under this act and RCW 47.60.290.

Requires the commission to develop the survey after providing an opportunity for ferry advisory committees to offer input.

Requires the survey to be updated at least every two years and maintained to support the development and implementation of adaptive management of ferry services.

Requires the commission to adopt fares and pricing policies by rule, under chapter 34.05 RCW, according to the following schedule: (1) Each year the department shall provide the commission a report of its review of fares and pricing policies, with recommendations for the revision of fares and pricing policies for the ensuing year;

(2) By September 1st of each year, beginning in 2008, the commission shall adopt by rule fares and pricing policies for the ensuing year.

Directs the department to develop, and the commission shall review, operational strategies to ensure that existing assets are fully utilized and to guide future investment decisions.

Requires the department to maintain a life-cycle cost model on capital assets such that: (1) Available industry standards are used for estimating the life of an asset, and department-adopted standard life cycles derived from the experience of similar public and private entities are used when industry standards are not available;

(2) Standard estimated life is adjusted for asset condition when inspections are made;

(3) It does not include utilities or other systems that are not replaced on a standard life cycle; and

(4) It does not include assets not yet built.

Requires the joint legislative audit and review committee to assess and report as follows: (1) Audit the implementation of the cost allocation methodology evaluated under chapter . . . (House Bill No. 1094), Laws of 2007, as it exists on the effective date of this act, assessing whether actual costs are allocated consistently with the methodology, whether there are sufficient internal controls to ensure proper allocation, and the adequacy of staff training; and

(2) Review the assignment of preservation costs and improvement costs for fiscal year 2009 to determine whether: (a) the costs are capital costs; (b) the costs meet the statutory requirements for preservation activities and for improvement activities; and (c) improvement costs are within the scope of legislative appropriations.

Provides that the report on the evaluations in this act is due by January 31, 2010.

Repeals RCW 47.60.150 and 47.60.326.