HOUSE BILL REPORT

HB 1955

As Reported by House Committee On:

Transportation

Title: An act relating to additive transportation funding.

Brief Description: Concerning additive transportation funding.

Sponsors: Representatives Clibborn, Moscoso, Fey, Ryu, Riccelli, Farrell, Liias, Pollet, Ormsby, Tarleton, Roberts, Wylie, Morris, Bergquist and Moeller.

Brief History:

Committee Activity:

Transportation: 4/19/13, 4/22/13 [DPS].

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 17 members: Representatives Clibborn, Chair; Fey, Vice Chair; Liias, Vice Chair; Moscoso, Vice Chair; Bergquist, Farrell, Fitzgibbon, Habib, Moeller, Morris, Riccelli, Ryu, Sells, Takko, Tarleton, Upthegrove and Zeiger.

Minority Report: Do not pass. Signed by 13 members: Representatives Orcutt, Ranking Minority Member; Hargrove, Assistant Ranking Minority Member; Overstreet, Assistant Ranking Minority Member; Angel, Hayes, Johnson, Klippert, Kochmar, Kretz, Kristiansen, O'Ban, Rodne and Shea.

Staff: Amy Skei (786-7109).

Background:

The Washington Constitution provides that public funds may be expended only by appropriation. Such appropriations are provided in a biennial omnibus Transportation Budget (Budget) adopted by the Legislature in odd-numbered years. The budget provides appropriations to the major transportation agencies including: the Washington State Department of Transportation (Department), the Washington State Patrol, the Department of Licensing, the Washington Traffic Safety Commission, the Transportation Improvement Board (TIB), the County Road Administration Board (CRAB), and the Freight Mobility Strategic Investment Board (FMSIB). The budget also provides appropriations out of transportation funds to many smaller agencies with transportation functions. Alternatively, the Legislature may also appropriate state funds through a stand-alone bill.

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Summary of Substitute Bill:

The substitute bill appropriates $50,000 for the Joint Legislative Audit and Review Committee (JLARC). The JLARC shall conduct a study of regulation and inspection fee programs regulating gas stations and other businesses that emit gasoline vapors and recommend changes to make regulatory fees and regulations more consistent and transparent.

The substitute bill appropriates $340.5 million to the Department of Transportation (Department) Improvements Program (Program I) for the following activities: the projects listed in the Legislative Evaluation and Accountability Program Committee (LEAP) Transportation Document 2013-4 dated April 18, 2013; for work on the Northeast 132 Start Interchange/Interstate 405 project; for the LEAP Transportation Document 2013-M1 dated April 21, 2013; $200,000 for a study of the connection between state route numbers 162, 410, and 16 and eastern Pierce County communities; and $200,000 for a feasibility study regarding additional high occupancy vehicle lanes on Interstate 5 between Joint Base Lewis-McChord and Tacoma. Of the Program I appropriations, $230 million are from bond proceeds authorized in House Bill 1956.

The substitute bill appropriates $6 million to the Department's Economic Partnerships Program to capitalize the Washington Electric Vehicle Infrastructure Bank.

The substitute bill appropriates $55.1 million to the Department's highway maintenance program, of which $20 million is for removal of fish passage barriers. The Department shall prioritize storm water retrofit projects when selecting maintenance and preservation projects.

The substitute bill appropriates $91.1 million to the Department's preservation program, of which $26 million is for storm water retrofits. The Department is to use low-impact development (LID) techniques when feasible and shall develop project-ranking criteria that gives preference to LID retrofit projects that reduce water pollution from exiting transportation infrastructure. The Department is required to create a biennial project list for LID storm water retrofit projects.

The substitute bill appropriates $50 million to the Department's public transportation program for the projects listed in the LEAP transportation document 2013-L2 dated April 22, 2013.

The substitute bill appropriates $120 million to the Department's ferries capital construction program, of which $100 million is for ferry vessel construction from bond proceeds and $10 million is for terminal replacement projects at the Mukilteo and Seattle terminals.

The substitute bill appropriates $19 million to the Department's rail capital program, of which $16.8 million is for the Complete Streets grant program and $2.2 million is for new freight rail assistance program projects.

The substitute bill appropriates $153.5 million to the Department's local capital program, of which $20 million is for grants to public transit agencies, $16.8 million is for the Complete Streets grant program, $100 million from bond proceeds is for projects listed in the LEAP Transportation Document 2013-L1 dated April 22, 2013, $16.5 million is for new pedestrian and bicycle safety program projects, and $190,000 is for the transportation planning framework called Forward Washington.

The substitute bill appropriates $14.3 million for debt service to the State Treasurer, and $1.6 million for bond sales expenses. The appropriations in the Act are null and void if Substitute House Bill 1954 is not enacted.

Substitute Bill Compared to Original Bill:

The original bill includes appropriations for the CRAB; the TIB; and the Department of Ecology; as well as the Department's transportation management and support; facility maintenance, operations, and construction; program delivery; and marine programs. The substitute bill does not include appropriations for the aforementioned agencies and programs. The substitute bill contains appropriations not included in the original bill for the following agencies and programs: the JLARC and the Department's economic partnerships and public transportation programs. The substitute bill changes some appropriated amounts and specified purposes included in the original bill.

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Appropriation: A total of $849,504,000 is appropriated from various transportation accounts.

Fiscal Note: Not requested.

Effective Date of Substitute Bill: The bill takes effect on August 1, 2013. However, the appropriations are null and void if Substitute House Bill 1954 is not enacted.

Staff Summary of Public Testimony:

(In support) Business, labor, and environmental stakeholders have been looking at how to fund transportation for the next 10 years. There is a good bidding environment, and this package can create 84,000 jobs. Funding State Route (SR) 167/509 is necessary to keep our ports competitive. This package is a step toward making the north/south freeway an economic engine in Spokane. There is an investment into Interstate 405 to make it better and less congested. The bill includes a financing plan to complete the SR 520 bridge. The Columbia River Crossing (CRC) is included in this bill, and it is a major freight route on the west coast. Investment in Interstate 90 is important because it connects the two halves of this state. This bill also invests in the Snohomish freight corridor and the Washington ferry system. This bill emphasizes choices in mobility between transit, Amtrak, bike/pedestrian, and local transportation. This moves us towards easing congestion and protecting our environment. The bill also makes a major effort in storm water projects, and it starts on fish culverts. There are also a number of small projects that are important to small communities. Finally, the bill provides funding for the CRAB, the TIB, and the FMSIB.

Completing investments and continuing to work on preservation and maintenance are important parts of this package. These bills are necessary to projects across the state.

Funding transit in Kitsap County is a good measure. Local control of funding options is also important. Economic development in manufacturing centers will create jobs. Funding the third ferry boat is an important part of the marine highways, serving thousands of people daily. This provides the opportunity to bring roads and highways up to repair.

Ferries are important to all of Washington and it is a good transportation option because it recovers 70 percent at the fare box. The marine highways are important to economic development.

This transportation package is comprehensive and provides necessary support for the marine highway system. It also provides continued support and vitality for the maritime sector while generating substantial economic benefit and jobs in Washington. The package builds ferries in succession to take advantage of learning-curve efficiencies.

The funding for two more ferries keeps construction costs affordable and keeps shipyard workers employed.

Funding for the CRC is important for safety and trip-predictability reasons.

The transportation package helps to maintain and preserve the transportation system and finish the projects that have been started in the last decades. This package improves maintenance and preservation funding. A study showed that 50 percent of pavement will be in "poor" or "very poor" condition in the next 10 years. Project funding is needed to finish the large projects across the state.

Construction and engineering professionals support this package and largely agree with the positive testimony provided. This package will help get projects done on-time and on-budget.

The SR 167 project needs to be completed to keep the state competitive in the economic market by helping freight mobility.

For additional testimony in support of House Bill 1955, please see the House Bill Report on House Bill 1954.

(Opposed) It should not be the purpose of this body to create density in the state. Funding for transit was supposed to be reduced, but that has not happened. There should be a dedicated commercial traffic lane on Interstate 5 and Interstate 405.

The ferry system should be reduced in some places and eliminated in other parts of the system. The money saved should be put into bridges for the people who live on the islands. The transit system is being run to lose money and is not affordable. Labor contracts are also unaffordable; this is just another drive to get money out of taxpayers.

The $230 million bond for the CRC should be removed because transit is not the solution. Design a new bridge, higher and without light rail, and Clark County citizens will support the project.

A 2.5-mile stretch of light rail is not a solution for the county or the city. It is not a long path to transport freight. Forming a transportation district in the community allows taxes and fees without voter approval and impact fees on commercial and industrial development, the areas where there are jobs in Clark County. The CRC project is a flawed bridge.

For additional testimony opposed to House Bill 1955, please see the House Bill Report on House Bill 1954.

Persons Testifying: (In support) Representative Clibborn, prime sponsor; Lynne Peterson, Washington State Department of Transportation; Fred Kega, Vigor Industrial; Matt Nichols, Nichols Brothers Boat Builders; Bill Staffacher and Brian Willoughby, Legacy Health Systems; Neal Stragie, Washington Roundtable; Mike Groesch, American Council of Engineering Companies; Debra Perry, City of Milton; Patty Lent, City of Bremerton; and Adam Brockus, Ferry Community Partnership.

(Opposed) John Worthington; Paul Locke; Carolyn Crain; and Penny Ross.

Persons Signed In To Testify But Not Testifying: None.