SENATE BILL REPORT

SB 6781

BYSenators Newhouse, Matson, Benitz, Talmadge and Gaspard

Authorizing department of transportation purchase of the Stampede Pass rail line.

Senate Committee on Transportation

Senate Hearing Date(s):January 30, 1990

Senate Staff:Gene Baxstrom (786-7303)

AS OF JANUARY 29, 1990

BACKGROUND:

Stampede Pass rail line is one of two rail lines through the Cascade Range connecting eastern and western Washington.  The other is the Stevens Pass route.  That 78-mile rail line connects Auburn and Cle Elum, Washington.

The Stampede Pass Line was formerly owned by the Northern Pacific Railroad, but upon that corporation's bankruptcy came under the ownership of Burlington Northern.  Burlington Northern has indicated it intends to file for abandonment of that line later in 1990.  As part of the abandonment process, Burlington Northern will identify the value of rails, ties, and other improvements along the line.  With abandonment of the line, portions of the right-of-way reverts back to public ownership including the City of Tacoma watershed.

The Department of Transportation is authorized to assist rail lines in order to keep those rail lines operating or to acquire rail lines which are abandoned.  The Legislature appropriated for the 1989-91 biennium $2.3 million to assist with rail line operations and $1.1 million to acquire abandoned rail lines.

Many persons argue that maintenance of this corridor as a rail line is vital to the state interest.

SUMMARY:

The Department of Transportation is directed to enter into negotiations with the Burlington Northern Railroad for the purchase of the Stampede Pass rail line.  The department is authorized to enter into an option to purchase the Stampede rail line if the following minimum conditions are met:  (1) a mutually acceptable independent appraisal of the net salvage value of the rail and property value along the rail line is established; (2) an understanding that any option to purchase is subject to legislative appropriation; and (3) that the option is binding for a specific time period.

The department is directed to encourage local communities and the private sector to participate in the purchase of the Stampede Pass rail line.

The department is authorized to expend up to $500,000 from its 1989 essential rail bank account appropriation to implement this act.

Appropriation:  none

Revenue:   none

Fiscal Note:    requested