S-4468               _______________________________________________

                                                   SENATE BILL NO. 6781

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State of Washington                               51st Legislature                              1990 Regular Session

By Senators Newhouse, Matson, Benitz, Talmadge and Gaspard

Read first time 1/25/90 and referred to Committee on  Transportation.

AN ACT Relating to preserving the Stampede Pass rail line; and adding new sections to chapter 47.76 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The legislature finds that a balanced, multimodal transportation system is required to maintain the state's commitment to the growing mobility of its citizens and commerce.  Freight rail systems are important elements of this multimodal system.

          Washington's economy relies heavily upon its freight rail system to ensure movement of the state's agricultural, chemical, and natural resource commodities. Since 1970, Washington has lost nearly one-third of its five thousand two hundred rail miles to abandonment and bankruptcies, leaving approximately three thousand four hundred rail miles.  The state, counties, local communities, railroads, labor, shippers, and citizens all benefit from continuation of rail service.

          Burlington Northern's rail line between milepost 102.9 at Auburn, Washington, and milepost 24.9 at Cle Elum, Washington, commonly known as the Stampede Pass rail line, is anticipated to be abandoned in late 1990.  This rail line is one of only two rail lines crossing the Cascade mountain range and provides a rail outlet from the Yakima Valley to the central Puget Sound basin for the movement of people and commodities, as well as providing direct rail access for the United States Army firing range at Yakima.

          The legislature recognizes that the Stampede Pass rail line could provide benefits to the state and local jurisdictions, such as economic development potential, avoided roadway costs, reduced traffic congestion, environmental mitigation, and safety, and should be preserved through the joint efforts of the state, local jurisdictions, and the private sector.  It is the intent of the state of Washington to ensure that the Stampede Pass rail line continue in service.

NEW SECTION. Sec. 2.     The department of transportation shall enter into negotiations with the Burlington Northern railroad company for the purchase of the Stampede Pass rail line.  The department may enter into an option to purchase the Stampede Pass rail line if the following minimum conditions are met:

          (1) A mutually acceptable independent appraiser shall make an appraisal of the net salvage value of the rail.  If the parties cannot find a mutually acceptable appraiser, then each party shall choose an appraiser to determine a net salvage value.  If those two appraisers are unable to reach a mutually acceptable value, then those two appraisers shall appoint a third appraiser to conduct the appraisal.  The department and the Burlington Northern railroad must agree to be bound by the independent appraisal.

          (2) Any option to purchase that is entered into must clearly indicate that the parties understand and agree that any final purchase is subject to legislative appropriation and that the legislature is not bound to appropriate the funds.

          (3) Any option that is entered into must be binding for a specific time period.

          (4) The department shall encourage local communities and the private sector to participate in the purchase of the Stampede Pass rail line.

NEW SECTION. Sec. 3.     The department may spend up to five hundred thousand dollars from its 1989 essential rail bank account appropriation to implement this act.  Any expenditure of funds is conditioned on the department meeting the requirements of chapter 47.76 RCW.

NEW SECTION. Sec. 4.     Sections 1 through 3 of this act are added to chapter 47.76 RCW.