SENATE BILL REPORT

SB 5763

BYSenators Sellar and Bender

Changing provisions relating to high capacity transportation systems.

Senate Committee on Transportation

Senate Hearing Date(s):February 21, 1989

Senate Staff:Gene Baxstrom (786-7303)

AS OF MARCH 7, 1989

BACKGROUND:

Since 1970, the total miles of rail line in Washington have declined from 5,200 to 3,500 miles.  More than 1,000 miles of track have been 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 both 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 legislation authorizing the creation of county rail districts to enable local areas to support rail freight services, authorizing port districts to operate rail services, creation of a state rail assistance account to provide financial aid to local rail efforts, and authorization for 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 been largely 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 have been done by the Legislative Transportation Committee both 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. 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 in the state.  The final report recommended a state policy for rail freight including the identification of funding levels necessary to assist local efforts and preserve essential rail corridors.  Some rail passenger issues addressed were institutional recommendations for development of light rail systems, including rights-of-way preservation and funding for such systems.  Recommendations were also made with regard to the future state role in intercity systems. 

SUMMARY:

A state policy is established regarding rail freight assistance, light rail planning and development, and intercity passenger system encouragement.

Rail Freight:  It is declared it is in the state's interest to preserve certain rail service.  The Department of Transportation is 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.  The Department of Transportation is 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 those lines serving major agriculture and forest products area terminals, serving seaports, power plants, used for passenger service, major intermodal service points or hubs, and strategic military rail services.

The Department of Transportation 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.

The essential rail assistance account may be used for construction of transloading facilities, to increase business on light density lines or to mitigate the impacts of abandonment, or for preservation including operation of viable light density lines.  Monies in the rail assistance account may be used for emergency loans, which must be repaid within five years.  State funding must be related to state benefits.

The Department of Revenue, in conjunction with the Department of Transportation is directed to study the feasibility of property tax credits for railroads in order to maintain or improve service on light density lines.  The Department of Transportation is directed to evaluate the performance of the state freight rail program by the end of a six-year cycle.

Rail Transit:  A state policy regarding the development of rail transit and commuter rail systems is established.  Local jurisdictions should coordinate and be responsible for passenger rail policy development, program planning, and implementation.  The state's role should be assisting those agencies on issues involving rights-of-way, serving as a contractor for rail design and construction, authorizing local jurisdictions to finance rail 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 rail service.  Local agencies are directed to cooperate in encouraging land uses compatible with passenger rail development and improve local land use/transportation planning decisions.

A process is established for implementing rail passenger assistance in the state.  For areas outside the central Puget Sound region, existing transit agencies are authorized to provide regional rail 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, agencies currently authorized to provide rail transit planning and operating services (public transportation agencies) 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 rail plan and financing package.  Transit agencies are directed to present the adopted rail 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 rail 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 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 Class AA counties.  The conference is to evaluate the need for developing rail service in the region and to determine the desirability of a regional approach to such rail service.  The conference may elect to create a multi-county Interim Regional Rail Transit Authority, whose membership is to be determined by conference members.  The Interim Regional Rail Transit Authority shall propose a permanent authority or authorities for voter approval.  Expansion of regional passenger rail service boundaries is provided for by interlocal agreements among transit agencies.

Local tax authority is provided for planning, construction and operation of passenger rail service for any city, county transportation authority, metropolitan municipal corporation, or public transportation benefit area.  These local tax options require voter approval:  an employer tax, a local option motor vehicle excise tax of up to 1 percent, parking tax, an ad valorem property tax both one year and multi-year, sales tax on motor fuel, a local option sales and use tax of up to 1 percent, and a vehicle license fee.  Bond authority for capital programs funded by these taxes is provided.

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 passenger rail development.

Upon dissolution of the Rail Development Commission, the department will assume its activities and responsibilities including administration of the rail development account.  The department is to establish an advisory council to assist in the review of request for rail development account funds.  Account funds may provide up to 80 percent matching assistance for passenger rail planning efforts and for support of interim regional rail transit authorities.  Criteria for state funding includes conformance with designated MPO regional transportation plans, dedicated local funding, satisfaction of UMTA requirements, and establishment of regional policy committees with proportional representation.

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

Intercity Passenger Service:  The department is to coordinate with local jurisdictions a program for improving AMTRAK passenger rail service.  The program may include determination of appropriate level 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 jurisdiction in upgrading AMTRAK depots.  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.

Appropriation:    For the 1989-91 biennium to the Department of Transportation:  $4,700,00 from the general fund to the essential rail assistance account; $2,200,000 from the general fund to the essential rail banking account; $426,000 from the general fund for administration of the state freight rail program; $8,135,814 from the rail development account for implementing a passenger rail program; $500,000 from the rail development account to AMTRAK rail service coordination and planning efforts within the state.

Revenue:    none

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect July 1, 1989.