SENATE BILL REPORT

ESHB 1825

BYHouse Committee on Transportation (originally sponsored by Representatives R. Fisher, Wood, Walk, Nelson, G. Fisher, Day, Hankins, Walker, Cantwell, Todd, Heavey, Winsley, Pruitt, Wang, Prentice, R. King, Scott, Crane and Fraser)

Changing provisions relating to high capacity transportation systems.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):February 15, 1990; February 28, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Patterson, Chairman; Thorsness, Vice Chairman; von Reichbauer, Vice Chairman; Barr, Benitz, Hansen, McMullen, Madsen, Patrick, Sellar.

Senate Staff:Gene Baxstrom (786-7303)

                  March 1, 1990

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 28, 1990

BACKGROUND:

Since 1970, the total miles of rail line in Washington have declined from 5,200 to 3,400.  More than 1,000 miles of track were abandoned in the 1980s when federal law eased railroad abandonment procedures.  Many of these abandoned rail lines served rural areas and carried primarily agricultural commodities.  The abandonment of rail service has resulted in increased use of motor freight carriage on rural county roads and on state highways.

The Legislature has, since 1983, enacted numerous provisions to address the rail freight abandonment issue.  These have included authorizing the creation of county rail districts to enable local areas to support rail freight services, authorizing port districts to operate rail services, creating a state Rail Assistance Account to provide financial aid to local rail efforts, and authorizing the Department of Transportation to acquire abandoned rail rights-of-way in order to enhance the likelihood of the reestablishment of rail services.  These programs, together with federal rail assistance, have provided limited support for retaining rail services.  No state funds have been provided for these rail assistance or rail preservation programs.

State involvement with rail passenger service has largely been in planning and study efforts.  The state has participated in federal studies for improved rail passenger service in the West Coast corridor, with a major study being completed in 1978.  Evaluations of high-speed type systems in Western Washington were done by the Legislative Transportation Committee (LTC) in the early 1970s and in 1984.  The 1984 study recommended increased efforts to preserve rail rights-of-way for future rail needs, either for high-speed or light rail services.

The Puget Sound Council of Governments and METRO (King County) completed in 1986 a Multi-Corridor Study to assess future needs for improved transportation in the Puget Sound region.  That study recommended that a light rail system be implemented by the year 2020 to serve the region's transportation needs.  Since that report was issued, both agencies have taken steps to accelerate rail planning, with a 1995 project start date.  METRO currently is performing an evaluation of a light rail and a high capacity bus system alternative, and will compare those and other options.  It is anticipated that a proposal to fund and develop a recommended system will be submitted to service area voters in the fall of 1992.  Existing transit agencies in the Puget Sound area, METRO (King County) and public transit benefit areas have the authority to build and operate rail transit systems.

In 1987 the Legislature created the Rail Development Commission.  This 19-member commission, made up of local government representatives and private citizens, was directed to evaluate and recommend to the Legislature a state policy regarding the appropriate state role for rail freight and rail passenger systems.  The commission began its work in 1987 and delivered its final report to the Legislature on December 1, 1988.  That report addressed a recommended state policy for rail freight, including the identification of funding levels necessary to assist local efforts and preserve essential rail corridors.  Rail passenger issues addressed included institutional recommendations for development of light rail systems, and rights-of-way preservation and funding for such systems.  Recommendations were also made with regard to the future state role in intercity systems.

Funding for high occupancy vehicle (HOV) lanes in urban counties is limited.  The DOT's current plans project development of 150 lane-miles of HOV lanes on state highways in the Puget Sound area, primarily along I-5 between Fife and Everett, along I-405, I-90 (I-5 to Issaquah), and SR 167.  Improvements are projected out through 1995 but are subject to funding limitations, primarily federal assistance for Interstate-related projects.  Projected costs for the system of HOV lanes, not including I-90, park-and-ride lots, and flyer stops, are about $550-600 million.  Over $100 million has already been expended (not including I-90).  At least $250 million is anticipated in federal funds.  Local facility needs and program approaches are currently being evaluated through a regional planning effort.

SUMMARY:

A state policy is established regarding rail freight assistance, high capacity transportation planning and development, and intercity passenger system encouragement.  A process to accelerate development of HOV lanes is set forth.

Rail Freight:  It is declared that it is in the state's interest to preserve certain rail service.  The Department of Transportation (DOT) is directed to supplement its rail freight program to include enhanced data collection and improved technical assistance to state agencies and local interests.  This assistance can include abandonment cost benefit analyses, assistance in forming county and port rail districts, and feasibility studies for rail service continuation.  DOT is directed to monitor the status of the state's light density line system through the State Rail Plan and to seek alternatives to abandonment prior to Interstate Commerce Commission proceedings, where feasible.  Criteria are set forth for identifying lines in the state's essential rail system, including lines serving major agriculture and forest products area terminals, lines serving seaports, power plants, lines used for passenger service, major intermodal service points or hubs, and strategic military rail services.

DOT is directed to preserve rail corridors for future rail service based on certain criteria and when funds are specifically allocated for that purpose.  The Essential Rail Banking Account is created for that purpose.  Monies in that account may also be used by the department to provide up to 80 percent of the funding for loans to port districts and county rail districts to purchase unused rail rights-of-way.  Those rights-of-way acquired must have been identified, evaluated, analyzed in the State Rail Plan and the right-of-way must be intended for abandonment or abandoned and must be available for acquisition.  Funds for acquisition of any line must have approval of the Legislative Transportation Committee (LTC).

Uses of the essential rail assistance account are expanded to include construction of transloading facilities, to increase business on light density lines, to mitigate the impacts of abandonment, or for preservation, including operation of viable light density lines.  The loan period for monies in the rail assistance account is extended from 10 to 15 years. State funding must be related to state benefits.

The Department of Revenue, in conjunction with the DOT, is directed to study and report to the LTC by December 1, 1990, on the feasibility of property tax credits for railroads in order to maintain or improve service on light density lines.  The DOT is directed to evaluate the performance of the state freight rail program at the end of a six-year period and report to the LTC.

High Occupancy Vehicle Lanes:  The need for accelerated development of high occupancy vehicle (HOV) lanes is recognized, and AA counties and A counties adjoining a AA county (King, Pierce and Snohomish) are authorized to accelerate the development of that program.  Counties are encouraged to adopt goals for reducing single-occupant vehicles during peak hours.  Counties imposing taxes for HOV lane development are required to develop such programs in conjunction with transit agencies.

Two new tax sources are authorized in Class AA counties and in Class A counties adjoining Class AA counties to accelerate development of the HOV system:  an employer tax and a motor vehicle excise tax (MVET) surcharge.  Counties are authorized to impose an employer tax of up to $5 per month per employee within the county.  Credits may be granted to employers which adopt agreements to increase vehicle occupancy or provide at least one-half the cost of transit passes.

Class AA counties and Class A counties adjoining a Class AA county may impose an up-to-15 percent surcharge on the MVET paid on vehicles within the county.  This surcharge does not apply to motor trucks (except pickups), truck tractors, truck trailers, busses, tow trucks, and other such vehicles.

Funds generated by the employer tax or the MVET surcharge must be used for HOV improvements and programs.  These improvements include transit and carpool lanes and ramps, park-and-ride lots, transit centers, preemption signalization, intersection by-pass structures and ferry loading lanes.  The program includes ridematch and developer ride-share programs.  Funds are to be used for the following priorities:  Accelerating HOV lanes on the Interstate system and the state highway system, and HOV lane improvements on local arterials.  Monies can be used by transit agencies for commuter rail with voter approval.

Counties may contract with the Department of Licensing for collection of the MVET and with the Department of Revenue or other appropriate agencies for collection of the employer tax.  Monies are to be deposited into a newly-created High Occupancy Vehicle Account.

High Capacity Transportation:  A state policy regarding the development of high capacity transportation (HCT) and commuter rail systems is established.  The Legislature declares that local jurisdictions should coordinate and be responsible for HCT policy development, program planning, and implementation.  The state's role is to assist those agencies on issues involving rights-of-way, serving as a contractor for design and construction, authorizing local jurisdictions to finance HCT alternatives through voter-approved tax options, and providing technical assistance and information.  The Department of Transportation is to carry out those policies but may not operate a HCT service.  Local agencies are directed to cooperate in encouraging land uses compatible with HCT development and improve local land use/transportation planning decisions.

A process is established for implementing HCT assistance in the state.  For areas outside the central Puget Sound region, existing transit agencies are authorized to provide HCT service.  Those agencies are directed to form a Regional Policy Committee with proportional representation based upon population distribution within the designated service area for a proposed system.

For the central Puget Sound region, public transportation agencies currently authorized to provide rail transit planning and operating services are directed to establish, through interlocal agreements, a Joint Regional Policy Committee with proportional representation.  The membership of the Joint Regional Policy Committee is to consist of locally elected officials who serve on transit system boards and a representative from the Department of Transportation.  Interlocal agreements establishing the Regional Policy Committee are to be executed within two years.  The Joint Regional Policy Committee is to prepare a regional HCT plan and financing program.  Transit agencies are directed to present the adopted plan and financing program for voter approval within four years of the execution of the interlocal agreements.  A majority vote is required for approval of the HCT plan and financing program in any service district within each county.

If interlocal agreements are not executed within two years, or if voter approval has not been obtained within four years, the Metropolitan Planning Organization of the area is to convene a conference within 180 days.  This conference is to be attended by elected representatives selected by each city and county in Class AA counties and in Class A counties bordering a Class AA county.  The conference is to evaluate the need for developing HCT service in the region and to determine the desirability of a regional approach to such service.  The conference may elect to create a multi-county Interim Regional High Capacity Transportation Authority, whose membership is to be determined by conference members.  The Interim Regional HCT Authority shall propose a permanent authority or authorities for voter approval.  Expansion of regional HCT service boundaries is provided for by interlocal agreements among transit agencies.

State and local jurisdictions are encouraged to cooperate with respect to development of park-and-ride facilities and co-development of existing rights-of-way for HCT system development.

The department is given responsibility for the Rail Development Commission's activities upon its dissolution (June 30, 1989) and assumes responsibility for administering the Rail Development Account, which is renamed the High Capacity Transportation Account.  The department is to establish an advisory council to assist in the review of requests for HCT Account funds.  Account funds may provide up to 80 percent matching assistance for HCT planning efforts and for support of interim HCT authorities.  Criteria for obtaining state funding are set forth, including conformance with designated MPO regional transportation plans, dedicated local funding, satisfaction of specific planning requirements which are set forth, and establishment of regional policy committees with proportional representation.

A process for evaluating HCT alternatives is prescribed.  The process is modeled after the alternatives analysis required by the Urban Mass Transportation Administration.  It includes an evaluation of a range of transportation options to address transportation needs, including:  do nothing; develop low capital and higher capital facilities; and require notification of property owners along corridors being evaluated.  An independent project oversight review panel process is established.  This multidisciplinary nine-member review panel will be made up of appointments by the Governor, Secretary of the DOT, and the Chair of the LTC.  Consultants to assist the panel are to be employed by the LTC.  Project review by this panel is required for any HCT project to utilize new tax sources authorized in this act or which will involve more than $500,000 of HCT Account funds.

The department, in conjunction with local jurisdictions, is directed to identify transit rights-of-way, to rank those corridors for implementation priority, and to seek to identify intercity rail rights-of-way which may be used for commuter rail service corridors in the future.

Intercity Passenger Rail Service:  The department is to coordinate with local jurisdictions a program for improving AMTRAK passenger rail service.  The program may include determination of appropriate levels of AMTRAK passenger rail service, implementation of higher train speeds for AMTRAK service, recognition of the potential for higher speed intercity passenger rail service, and identification of existing intercity rail rights-of-way which may be used for public transportation corridors in the future.  The department is encouraged to assist local jurisdictions in upgrading AMTRAK depots, including multimodal use.  The department is to pursue resumption of AMTRAK service from Seattle to Vancouver, British Columbia, and to study the potential for AMTRAK service along several other corridors in the state.

High Capacity Funding:  Local option taxing authority is provided for planning, construction and operation of HCT service for any city which presently operates a public transportation system, county transportation authority, metropolitan municipal corporation, or public transportation benefit area.  This authority applies only to agencies located in King, Pierce, Snohomish, Thurston, Clark and Spokane counties.  These local tax options all require voter approval:  an employer tax not exceeding $2 per month, a local option motor vehicle excise tax of up to 1 percent, and a sales and use tax of up to 1 percent.  Bond authority for capital programs funded by these taxes is provided.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENTS:

The striking amendment makes the following changes in the bill:

Rail Freight:  Language is added to reflect the State Supreme Court decision on reversionary rights of property owners.  First class cities are authorized to receive rail banking account and rail assistance account funds, and are authorized to operate transportation systems beyond city limits to the county limits.

High Occupancy Vehicle Program:  The employer tax is reduced from $5 to $2 and exemptions are provided for charitable, religious and certain nonprofit organizations.  (Exemptions also apply to employer tax for high capacity transit.)  A voter approval requirement is added for both employer tax and motor vehicle excise tax surcharge.  The pledge of tax revenues for bonds is prohibited beyond the year 2000.

High Capacity Transportation Program (HCT):  A definition for HCT is provided.  Commuter rail projects are required to comply with HCT planning requirements and must be approved by voters before being instituted.  Public notice requirements for HCT planning are enhanced.  Trucks are exempt from the .8 percent MVET for HCT.  The MVET rate for HCT and HOVs cannot exceed the equivalent of .8 percent, and adjoining counties must have a common local option MVET rate.  An individual knowledgeable in emerging transportation technologies is added to the Expert Review Panel.  References are added for the integration of high speed transportation and people mover systems, both private and public, in the development of HCT systems.

Other technical changes are made.

Senate Committee - Testified: Representative Ruth Fisher, prime sponsor; Renee Montgelas, office of the Governor; Tom Stenger, Chair, PSCOG Standing Committee on Transportation; Ron Anderson, District 1 Administrator, DOT; Pauline Thompson, Snohomish County Public Transportation Benefit Area; Gary Molyneaux, Former Executive Director, Rail Development Commission; Bob White, Manager, Capital Planning, METRO; Carole Helm, Mayor, Pullman; Jerry Lenzi, Manager, Transportation Planning, DOT; Duane Berentson, Secretary, DOT; George Walk; Lloyd Flem, WA Association of Railroad Passengers; Steve Lansing, Lutheran Public Policy Office; Sharon Foster, Council of Youth Agencies; Dave Broderick, Hospital Association; Martin Sangster, WA Trucking Association; Bob Dilger, WA State Building and Trade Association; Paul Locke; Michael Coan, Seattle Chamber of Commerce; Steve Lindstrom, WA State Transit Association