HOUSE BILL REPORT

EHB 2641

BYRepresentatives S. Wilson, Haugen, Schmidt, Zellinsky, R. Fisher and Vekich

Declaring a moratorium on further private ferries.

House Committe on Transportation

Majority Report:  Do pass as amended.  (24)

      Signed by Representatives R. Fisher, Chair; Baugher, Vice Chair, Eastern Washington; R. Meyers, Vice Chair, Western Washington; Schmidt, Ranking Republican Member; Basich, Bennett, Betrozoff, Cantwell, Cooper, Day, G. Fisher, Forner, Gallagher, Hankins, Heavey, Jones, Kremen, Nelson, Prentice, Smith, D. Sommers, Walker, S. Wilson and Zellinsky.

House Staff:Mary McLaughlin (786-7309)

AS PASSED HOUSE FEBRUARY 9, 1990

BACKGROUND:

Since 1927, for-hire vessels and ferries operating between fixed termini or over regular routes on Washington waters (rivers, lakes, and Puget Sound) have been regulated by the Utilities & Transportation Commission (UTC) as steamboat companies.  Charter boats are excluded from the regulatory provisions because these vessels do not operate between fixed termini.

The entry standard is Public Convenience & Necessity (PC&N). Unlike motor freight carriers, a steamboat certificate holder normally has exclusive rights to the route granted.  The annual regulatory fee is .4 percent of the gross operating revenues. Steamboat companies are required to publish and file their rates with the commission.

Two types of operation exist:  Private passenger and freight ferries, and launch services.  Launch services provide ship to shore transportation of freight and the ship's crew for large ships anchored in Washington waters.  Regulation of launch services began in 1978 after an administrative law judge ruled that the ship's anchor served as a fixed termini.

There is no provision for dormant certificates; i.e., the certificate of an operator with an exclusive route upon which no service is provided may not be cancelled by the commission. However, if another vessel operator petitioned the commission for that same route, the UTC would consider granting a certificate to the new applicant based upon the dormancy of the existing authority.

The 10-mile rule prohibits a private ferry crossing within 10 miles of any Washington State Ferry crossing.  The 10-mile rule is somewhat ambiguous as to whether the prohibition applies if the routes are within 10 miles at one end of the run but not the other, or if the private route intersects with a state ferry route.

Several issues have recently been brought to the attention of the Department of Transportation regarding private and public ferry routes.  The Puget Sound Council of Government's West Corridor Study has identified Kingston to Seattle as a high priority passenger-only ferry route for the corridor.  There is an existing UTC operating certificate for private ferry service from Port Townsend/Kingston/Seattle, although no service is currently being provided.  This private ferry route also crisscrosses the state's Seattle/Winslow route.  There is a proposal that a local transit agency, in conjunction with a private entrepreneur, would provide service from Kingston to Seattle.

Because of these issues, the Department of Transportation has asked for an Attorney General's opinion on the relationship between the 10-mile rule and UTC-issued certificates for private ferry service, i.e., if Washington State Ferries (WSF) can compete with a private ferry without buying it out, if WSF can contract with a private company to provide ferry service and if that service can be subsidized, and if a private ferry that is not subsidized or under contract with WSF can use WSF terminals.

SUMMARY:

The Utilities & Transportation Commission is prohibited from issuing operating certificates for private ferries until such time as the Legislative Transportation Committee completes a study.  This moratorium does not affect the issuance of launch service certificates by the UTC.

Fiscal Note:      Not Requested.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Steve Ross, Marine Engineers and Masters, Mates & Pilots; and Dave Freiboth, Inland Boatmen's Union.

House Committee - Testified Against:      Dave Rogers, Vashon Island resident.

House Committee - Testimony For:    A moratorium on UTC-issued permits will give the state time to determine the relationship between the 10-mile rule and the UTC private ferry route certificates.

House Committee - Testimony Against:      A moratorium should not be imposed on a private industry seeking to provide private ferry service.