H-2428

AN ACT Relating to the establishment of a state policy and program for freight mobility strategic investments; amending RCW 43.84.092 and 47.05.051; adding a new section to chapter 47.26 RCW; adding new sections to chapter 46.68 RCW; adding a new section to chapter 36.79 RCW; adding a new section to chapter 47.06 RCW; adding a new chapter to Title 47 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that:

(1) The well-being of the state of Washington's citizens is jeopardized when the vitality of the state's economy is placed at risk by aging transportation infrastructure, growing traffic congestion that impedes the efficient and safe flow of goods and people, constrained public funding for transportation investments needed to respond to anticipated population and economic growth, and the absence of a comprehensive and coordinated state policy and program that facilitates freight movements to local, national, and international markets.

(2) Endowed with a strategic position on the burgeoning Pacific trade routes, Washington state is uniquely positioned as a gateway to the global economy. As the most trade-dependent state in the nation, per capita, Washington's economy is highly dependent on an efficient multimodal transportation network order to remain competitive with other west coast ports and to maintain its competitive edge in domestic markets.

(3) Freight corridors that serve international and domestic interstate and intrastate trade, and those freight corridors that enhance the state's competitive position through regional and global gateways are strategically important. Physical barriers that block or delay access to intermodal facilities where freight is transferred from one mode of transport to another; conflicts between rail and road traffic; constraints on rail capacity; highway capacity constraints, congestion, and condition; waterway system depths that affect capacity; and institutional, regulatory, and operational barriers impede the free movement of freight through these corridors.

(4) Rapidly escalating population growth is placing an added burden on streets, roads, and highways that also serve as freight corridors. Community benefits from economic activity associated with freight movement, through access to goods, jobs, and exporting opportunities, often conflict with community concerns over safety, mobility, environmental quality, and access to emergency and recreational facilities. State efforts to minimize community impacts in areas of high freight movements and that encourage the active participation of local communities in the early stages of proposed public and private infrastructure investments will facilitate needed freight mobility improvements.

(5) Ownership of the freight mobility network is fragmented and spread across various public jurisdictions, private companies, and state and national borders. Transportation projects have grown in complexity and size, requiring more resources and longer implementation time frames. Currently, there is no comprehensive and integrated framework for planning the freight mobility needs of public and private stakeholders in the freight transportation system. A coordinated planning process should identify new infrastructure investments that are integrated by public and private planning bodies into a multimodal and multijurisdictional network in all areas of the state, urban and rural, east and west. The state should integrate freight mobility goals with state policy on related issues such as economic development, growth management, and environmental management.

(6) It is the policy of the state of Washington that constrained public transportation funding and competition between freight and general mobility improvements for the same fund sources require strategic, prioritized freight investments that reduce barriers to freight movement, maximize cost-effectiveness, yield a return on the state's investment, encourage complementary investments by public and private interests, and solve regional freight mobility problems. State financial assistance for freight mobility projects should leverage other funds from all potential partners and sources, including federal, county, city, port district, and private capital.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the freight mobility strategic investment board created in section 4 of this act.

(2) "Department" means the department of transportation.

(3) "Financing guarantees" means the pledge of money in the freight mobility strategic investment account, or money to be received by the freight mobility strategic investment account, to the repayment of all or a portion of the principal of or interest on obligations issued to finance freight mobility projects.

(4) "Local governments" means cities, towns, counties, special purpose districts, port districts, and any other municipal corporations or quasi-municipal corporations in the state excluding school districts.

(5) "Strategic freight corridor" means a transportation corridor of great economic importance within an integrated freight system, that has been designated a strategic corridor under section 3(3) of this act.

(6) "Freight mobility" means the safe, reliable, and efficient movement of goods within and through the state to ensure the state's economic vitality.

(7) "Public entity" means a city, town, county, port district, or municipal or regional planning organization.

NEW SECTION. Sec. 3. The department shall develop and implement a freight mobility investment program in accordance with subsections (1) through (6) of this section for the purpose of providing state financial and technical assistance for transportation projects that enhance freight mobility. The department is authorized to enact rules necessary to implement this program, provided the freight mobility strategic investment board and the legislative transportation committee have approved any proposed rules in advance of adoption by the department. The department shall provide periodic progress reports to the legislative transportation committee and the freight mobility strategic investment board.

(1) The department shall solicit from public and private entities proposed projects that meet the eligibility criteria established in accordance with subsection (4) of this section.

(2) To the greatest extent practicable, the department shall incorporate and utilize the freight mobility analysis developed jointly between the Puget Sound regional transportation planning organization and the office of urban mobility within the department, and the recommendations of the freight mobility advisory committee, established and appointed by the legislative transportation committee.

(3) The department shall designate strategic freight mobility corridors within the state based on freight tonnages, values, or other criteria relevant in determining those transportation corridors most critical to the state economy. The department shall update the list of designated strategic corridors not less than every two years, and shall establish a method of collecting and verifying data, including information on city and county-owned roadways.

(4) The department shall establish project eligibility criteria that, at a minimum, includes the following:

(a) The project's relationship to a strategic freight corridor;

(b) The degree to which the project: Improves intermodal or port access, alleviates a rail/road conflict, improves freight rail capacity or condition, improves road capacity or condition specifically for freight mobility, or improves waterway capacity specifically for freight mobility; and

(5) In addition to developing project eligibility criteria, the department shall also establish criteria that can be used to prioritize and select projects for possible funding. At a minimum, selection criteria should include consideration of the following:

(a) Level of financial commitment from public and private partners;

(b) Critical timing of investment decisions by public or private partners;

(d) Reduction of transportation impacts on affected communities;

(e) Analyzes the project's relative costs and benefits, including consideration of least-cost alternatives and the cost of taking no action;

(f) National, state-wide, or regional significance of the project;

(g) Improves access to ports or at border crossings;

(h) Furthers economic development; and

(i) Consistency with state and regional transportation plans, including those developed under chapter 36.70A RCW, the growth management act.

(6) The department shall provide technical expertise to public and private entities to assist these entities in submitting proposed projects.

NEW SECTION. Sec. 4. (1) The freight mobility strategic investment board is created.

(2) The board is composed of thirteen members with nonex officio members appointed by the secretary of the department. The board members are appointed for terms of four years, except that five members initially are appointed for terms of two years. The board must include: (a) Two members, one of whom is from a city located within or along a strategic freight corridor, appointed from a list of at least six persons nominated by the association of Washington cities or its successor; (b) two members, one of whom is from a county having a strategic freight corridor within its boundaries, appointed from a list of at least six persons nominated by the Washington state association of counties or its successor; (c) two members, one of whom is from a port district located within or along a strategic freight corridor, appointed from a list of at least six persons nominated by the Washington public ports association or its successor; (d) two members from the department, nominated by the secretary of the department; (e) one member appointed as a representative of the trucking industry; (f) one member appointed as a representative of the class I railroads; (g) the chairman of the senate transportation committee; (h) the chairman of the house transportation committee; and (i) one member of the general public. In appointing the general public member, the secretary shall endeavor to appoint a member with special expertise in relevant fields such as public finance, freight transportation, or public works construction. The secretary shall appoint the general public member as chair of the board.

(3) Staff support to the board shall be provided by the department, except that the board is authorized to employ a professional administrator to organize and assist the board in carrying out its responsibilities.

(4) Members of the board shall receive no compensation but shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.

(5) If a vacancy on the board occurs by death, resignation, or otherwise, the secretary shall fill the vacant position for the unexpired term. Each vacancy in a position appointed from lists provided by the associations and departments under subsection (2) of this section shall be filled from a list of at least three persons nominated by the relevant association or associations. Any members of the board, appointive or otherwise, may be removed by the secretary for cause in accordance with RCW 43.06.070 and 43.06.080.

NEW SECTION. Sec. 5. (1) The board shall meet not less than twice per year to conduct any and all necessary business, including, but not limited to:

(a) Reviewing, evaluating, and approving the department's proposed rules and procedures necessary to implement the freight mobility strategic investment program;

(b) Reviewing and evaluating project applications based on criteria established under section 3 of this act, and prioritizing and selecting projects comprising a portfolio to be funded in whole or in part with financial guarantees, loans, or grants from the freight mobility strategic investment account, created under section 7 of this act. After selecting projects comprising the portfolio, the board shall submit the portfolio to the legislative transportation committee for its approval prior to obligating or disbursing any funds from the account. The board shall ensure that projects submitted as part of the portfolio are not more appropriately funded with other federal, state, or local government funding mechanisms or programs. The board shall strictly scrutinize those projects that appear to improve overall general mobility with limited enhancement for freight mobility.

(2) The board may:

(a) Submit the project portfolio for review and comment by the transportation commission, but is not required to do so. The transportation commission has no authority to alter any of the projects contained in the portfolio;

(b) Accept from any state or federal agency, loans or grants for the planning or financing of any transportation project and enter into agreements with any such agency concerning the loans or grants;

(d) Accept any gifts, grants, or loans of funds, property, or financial, or other aid in any form from any other source on any terms and conditions which are not in conflict with this chapter;

(e) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter; and

(f) Do all acts and things necessary or convenient to carry out the powers expressly granted or implied under this chapter.

NEW SECTION. Sec. 6. The legislative transportation committee shall review project portfolios submitted under section 5 of this act for funding approval from the freight mobility strategic investment account. The legislative transportation committee may remove projects from the portfolio, but may not add new projects, substitute for removed projects, or change the scope of projects selected for inclusion within the portfolio.

NEW SECTION. Sec. 7. The freight mobility strategic investment account is created within the transportation fund or motor vehicle fund. Money may be placed in the account from the proceeds of bonds or from any other lawful source. Money in the account must be used to make grants, loans, or to give financial guarantees for selected freight mobility projects. Moneys in the account may be used to provide for state match requirements to qualify for federal intermodal surface transportation act funds. For the 1997-99 fiscal biennium, moneys in the account may be appropriated by the legislature, and are not subject to the project selection process prescribed in chapter . . ., Laws of 1997 (this act). Any moneys not appropriated by the legislature or expended by the board during the 1997-99 fiscal biennium for selected freight mobility projects or uses shall remain in the account for other eligible projects.

Sec. 8. RCW 43.84.092 and 1996 c 262 s 4 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system plan II account, the transportation infrastructure account, the freight mobility strategic investment account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the central Puget Sound public transportation account, the city hardship assistance account, the county arterial preservation account, the department of licensing services account, the economic development account, the essential rail assistance account, the essential rail banking account, the ferry bond retirement fund, the gasohol exemption holding account, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway construction stabilization account, the highway safety account, the marine operating fund, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the small city account, the special category C account, the state patrol highway account, the transfer relief account, the transportation capital facilities account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation revolving loan account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 9. In order to aid the financing of eligible freight mobility projects, the board may:

(1) Make low-interest or interest-free loans from the freight mobility strategic investment account or other funds and accounts for the purpose of financing freight mobility projects. The board may require the terms and conditions and may charge the rates of interest on its loans as it deems necessary or convenient to carry out the purposes of this chapter. Money received in repayment of loans made under this section is paid into the freight mobility strategic investment account for uses consistent with this chapter.

(2) Pledge money in the freight mobility strategic investment account, or money to be received by the freight mobility strategic investment account, to the repayment of all or a portion of the principal of or interest on obligations issued to finance freight mobility projects. The board shall not pledge an amount greater than the sum of money in the freight mobility strategic investment account plus money to be received from the payment of the debt service on loans made from that account, nor shall the board pledge the faith and credit or the taxing power of the state or an agency or subdivision thereof to the repayment of obligations issued.

(3) Create subaccounts in the freight mobility strategic investment account as the board deems necessary to carry out the purposes of this chapter.

(4) Provide a method for the allocation of loans and financing guarantees and the provision of technical assistance under this chapter.

All freight mobility projects aided in whole or in part under this chapter are put out for competitive bids, except for emergency public works under RCW 43.155.065 for which the recipient jurisdiction shall comply with this requirement to the extent feasible and practicable. The competitive bids called for are administered in the same manner as all other public works projects put out for competitive bidding by the lead project proponent aided under this chapter.

NEW SECTION. Sec. 10. (1) The board may make low-interest or interest-free loans for preconstruction activities on freight mobility projects before the legislature approves the construction phase of the project. Preconstruction activities include design, engineering, bid-document preparation, environmental studies, right of way acquisition, and other preliminary phases of transportation projects as determined by the board. The purpose of the loans authorized in this section is to accelerate the completion of freight mobility projects by allowing preconstruction activities to be performed before the approval of the construction phase of the project by the legislature.

(2) Projects receiving loans for preconstruction activities under this section must be evaluated using the process and factors established by the board under section 9 of this act. The receipt of a loan for preconstruction activities does not ensure the receipt of a construction loan for the project under this chapter. The board shall adopt a single application process for project proponents seeking both a loan for preconstruction activities under this section and a construction loan for the project.

NEW SECTION. Sec. 11. The board shall keep proper records of accounts and shall be subject to audit by the state auditor.

NEW SECTION. Sec. 12. A new section is added to chapter 47.26 RCW to read as follows:

For the period ending June 30, 1998, the transportation improvement board shall give special consideration to projects that eliminate, reduce, or mitigate the impacts of freight traffic at highway/rail crossings. These projects may include, but are not limited to, grade separation, signalization, consolidation of public at-grade crossings, and construction of bypass routes for vehicular and pedestrian traffic.

NEW SECTION. Sec. 13. A new section is added to chapter 46.68 RCW to read as follows:

NEW SECTION. Sec. 14. A new section is added to chapter 36.79 RCW to read as follows:

For the period ending June 30, 1998, the county road administration board shall give special consideration to projects that eliminate, reduce, or mitigate the impacts of freight traffic at highway/rail crossings. These projects may include, but are not limited to, grade separation, signalization, consolidation of public at-grade crossings, and construction of bypass routes for vehicular and pedestrian traffic.

NEW SECTION. Sec. 15. A new section is added to chapter 46.68 RCW to read as follows:

NEW SECTION. Sec. 16. A new section is added to chapter 47.06 RCW to read as follows:

The state-interest component of the state-wide multimodal transportation plan shall include a freight mobility plan which shall assess the transportation needs to ensure the safe, reliable, and efficient movement of goods within and through the state to ensure the state's economic vitality.

NEW SECTION. Sec. 17. To the greatest extent practicable, port districts in the state shall submit their development plans to the regional transportation planning organization or metropolitan planning organization, the department, and affected cities and counties to better coordinate the development and funding of freight mobility projects.

Sec. 18. RCW 47.05.051 and 1993 c 490 s 5 are each amended to read as follows:

The comprehensive six-year investment program shall be based upon the needs identified in the state-owned highway component of the state-wide multimodal transportation plan as defined in RCW 47.01.071(3) and priority selection systems that incorporate the following criteria:

(1) Priority programming for the preservation program shall take into account the following, not necessarily in order of importance:

(a) Extending the service life of the existing highway system;

(b) Ensuring the structural ability to carry loads imposed upon highways and bridges; and

(c) Minimizing life cycle costs. The transportation commission in carrying out the provisions of this section may delegate to the department of transportation the authority to select preservation projects to be included in the six-year program.

(2) Priority programming for the improvement program shall take into account the following:

(a) Support for the state's economy, including job creation and job preservation;

(b) The cost-effective movement of people and goods;

(d) Protection of the state's natural environment;

(e) Continuity and systematic development of the highway transportation network;

(f) Consistency with local comprehensive plans developed under chapter 36.70A RCW;

(g) Consistency with regional transportation plans developed under chapter 47.80 RCW;

(h) Public views concerning proposed improvements;

(i) The conservation of energy resources;

(j) Feasibility of financing the full proposed improvement;

(k) Commitments established in previous legislative sessions;

(l) Relative costs and benefits of candidate programs;

(m) Major projects addressing capacity deficiencies which prioritize allowing for preliminary engineering shall be reprioritized during the succeeding biennium, based upon updated project data. Reprioritized projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding; and

(n) Major project approvals which significantly increase a project's scope or cost from original prioritization estimates shall include a review of the project's estimated revised priority rank and the level of funding provided. Projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding.

(3) The commission may depart from the priority programming established under subsections (1) and (2) of this section: (a) To the extent that otherwise funds cannot be utilized feasibly within the program; (b) as may be required by a court judgment, legally binding agreement, or state and federal laws and regulations; (c) as may be required to coordinate with federal, local, or other state agency construction projects; (d) to take advantage of some substantial financial benefit that may be available; (e) for continuity of route development; or (f) because of changed financial or physical conditions of an unforeseen or emergent nature. The commission or secretary of transportation shall maintain in its files information sufficient to show the extent to which the commission has departed from the established priority.

(4) The commission shall identify those projects that yield freight mobility benefits or that alleviate the impacts of freight mobility upon affected communities.

NEW SECTION. Sec. 19. The legislative transportation committee shall review and analyze freight mobility issues affecting eastern and southeastern Washington and report back to the legislature by January 15, 1998. The review and analysis shall also give consideration to nonphysical barriers, such as burdensome laws and regulations, that are adversely impacting freight mobility.

NEW SECTION. Sec. 20. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 21. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

NEW SECTION. Sec. 22. Sections 1 through 7, 9 through 11, 17, and 19 of this act constitute a new chapter in Title 47 RCW.