BILL REQ. #:  Z-1090.1 

Read first time 01/14/2004.   Referred to Committee on Transportation.

     AN ACT Relating to transportation funding and appropriations; amending 2003 c 360 ss 102, 202, 203, 204, 206, 207, 208, 209, 210, 214, 215, 216, 217, 219, 220, 221, 222, 223, 224, 225, 227, 301, 305, 308, 310, 401, 402, 403, 404, 405, 406, and 407 (uncodified); adding new sections to 2003 c 360 (uncodified); repealing 2003 1st sp.s. c 26 ss 506, 507, and 508 (uncodified); repealing 2003 c 360 ss 211, 212, 213, 306, 307, and 309 (uncodified); and declaring an emergency.

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

Sec. 101   2003 c 360 s 102 (uncodified) is amended to read as follows:
FOR THE MARINE EMPLOYEES COMMISSION
Puget Sound Ferry Operations Account -- State
     Appropriation . . . . . . . . . . . . (($352,000))
       $362,000

NEW SECTION.  Sec. 102   A new section is added to 2003 c 360 (uncodified) to read as follows:
FOR THE OFFICE OF FINANCIAL MANAGEMENT--INITIATIVE MEASURE NO. 776 COSTS
Motor Vehicle Account--State Appropriation . . . . . . . . . . . . $1,200,000
Motor Vehicle Account--Local Appropriation . . . . . . . . . . . . $2,100,000
          TOTAL APPROPRIATION . . . . . . . . . . . . $3,300,000

     The appropriations in this section are subject to the following conditions and limitations: The motor vehicle account--state appropriation is provided solely for the administrative costs associated with refunds resulting from Pierce County et al. v. State of Washington et al. (Supreme Court Case No. 73607-3), upholding the Initiative Measure No. 776 reduction of gross vehicle weight fees.

Sec. 201   2003 c 360 s 202 (uncodified) is amended to read as follows:
FOR THE COUNTY ROAD ADMINISTRATION BOARD
Rural Arterial Trust Account -- State Appropriation . . . . . . . . . . . . $769,000
Motor Vehicle Account--State Appropriation . . . . . . . . . . . . (($1,927,000))
       $1,936,000
County Arterial Preservation Account--State Appropriation . . . . . . . . . . . . $719,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($3,415,000))
       $3,424,000

Sec. 202   2003 c 360 s 203 (uncodified) is amended to read as follows:
FOR THE TRANSPORTATION IMPROVEMENT BOARD
Urban Arterial Trust Account -- State Appropriation . . . . . . . . . . . . (($1,611,000))
       $1,614,000
Transportation Improvement Account--State Appropriation . . . . . . . . . . . . (($1,620,000))
       $1,623,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($3,231,000))
       $3,237,000

Sec. 203   2003 c 360 s 204 (uncodified) is amended to read as follows:
FOR THE BOARD OF PILOTAGE COMMISSIONERS
Pilotage Account -- State Appropriation . . . . . . . . . . . . (($272,000))
       $278,000

Sec. 204   2003 c 360 s 206 (uncodified) is amended to read as follows:
FOR THE TRANSPORTATION COMMISSION
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($807,000))
       $814,000

Sec. 205   2003 c 360 s 207 (uncodified) is amended to read as follows:
FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($616,000))
       $625,000

Sec. 206   2003 c 360 s 208 (uncodified) is amended to read as follows:
FOR THE WASHINGTON STATE PATROL -- FIELD OPERATIONS BUREAU
State Patrol Highway Account -- State Appropriation . . . . . . . . . . . . (($171,269,000))
       $172,802,000
State Patrol Highway Account -- Federal Appropriation . . . . . . . . . . . . (($6,167,000))
       $6,957,000
State Patrol Highway Account -- Private/Local Appropriation . . . . . . . . . . . . $175,000
Highway Safety Fund--State Appropriation . . . . . . . . . . . . $223,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($177,611,000))
       $180,157,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Washington state patrol officers engaged in off-duty uniformed employment providing traffic control services to the department of transportation or other state agencies are authorized to use state patrol vehicles for the purposes of that employment, subject to guidelines adopted by the chief of the Washington state patrol. The Washington state patrol shall be reimbursed for the use of the vehicle at the prevailing state employee rate for mileage and hours of usage, subject to guidelines developed by the chief of the Washington state patrol. The patrol shall report to the house of representatives and senate transportation committees by December 31, 2004, on the use of agency vehicles by officers engaging in the off-duty employment specified in this subsection. The report shall include an analysis that compares cost reimbursement and cost-impacts, including increased vehicle mileage, maintenance costs, and indirect impacts, associated with the private use of patrol vehicles.
     (2) $2,075,000 of the state patrol highway account--state appropriation in this section is provided solely for the addition of thirteen troopers to those permanently assigned to vessel and terminal security. The Washington state patrol shall continue to provide the enhanced services levels established after September 11, 2001.
     (3) In addition to the user fees, the patrol shall transfer into the state patrol nonappropriated airplane revolving account created under section 1501 of this act, no more than the amount of appropriated state patrol highway account and general fund funding necessary to cover the costs for the patrol's use of the aircraft. The state patrol highway account and general fund--state funds shall be transferred proportionately in accordance with a cost allocation that differentiates between highway traffic enforcement services and general policing purposes.
     (4) The patrol shall not account for or record locally provided DUI cost reimbursement payments as expenditure credits to the state patrol highway account. The patrol shall report the amount of expected locally provided DUI cost reimbursements to the transportation committees of the senate and house of representatives by December 31 of each year.

Sec. 207   2003 c 360 s 209 (uncodified) is amended to read as follows:
FOR THE WASHINGTON STATE PATROL -- SUPPORT SERVICES BUREAU
State Patrol Highway Account -- State Appropriation . . . . . . . . . . . . (($69,993,000))
       $71,113,000
State Patrol Highway Account -- Private/Local Appropriation . . . . . . . . . . . . $1,290,000
Highway Safety Fund--State Appropriation . . . . . . . . . . . . $42,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($71,283,000))
       $72,445,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Under the direction of the legislative auditor, the patrol shall update the pursuit vehicle life-cycle cost model developed in the 1998 Washington state patrol performance audit (JLARC Report 99-4). The patrol shall utilize the updated model as a basis for determining maintenance and other cost impacts resulting from the increase to pursuit vehicle mileage above 110 thousand miles in the 2003-05 biennium. The patrol shall submit a report, that includes identified cost impacts, to the transportation committees of the senate and house of representatives by December 31, 2003.
     (2) The Washington state patrol shall assign two full-time detectives to work solely to investigate incidents of identity fraud, drivers' license fraud, and identity theft. The detectives shall work cooperatively with the department of licensing's driver's special investigation unit.

Sec. 208   2003 c 360 s 210 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF LICENSING(( -- MANAGEMENT AND SUPPORT SERVICES))
Marine Fuel Tax Refund Account -- State Appropriation . . . . . . . . . . . . (($7,000))
       $65,000
Motorcycle Safety Education Account -- State Appropriation . . . . . . . . . . . . (($85,000))
       $2,810,000
Wildlife Account -- State Appropriation . . . . . . . . . . . . (($77,000))
       $723,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . (($8,286,000))
       $106,258,000
Highway Safety Account--Federal Appropriation . . . . . . . . . . . . $324,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($4,623,000))
       $68,220,000
Motor Vehicle Account--Federal Appropriation . . . . . . . . . . . . $600,000
Motor Vehicle Account--Private/Local Appropriation . . . . . . . . . . . . $1,372,000
DOL Services Account -- State Appropriation . . . . . . . . . . . . (($107,000))
       $4,336,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($13,185,000))
       $184,708,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The department shall submit a report to the transportation committees of the legislature detailing the progress made in transitioning off of the Unisys system by December 1, 2003, and each December 1 thereafter.
     (2) $144,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 5435 or Engrossed Substitute House Bill No. 1592.
     (3) If Engrossed Senate Bill No. 6063 is not enacted by June 30, 2003, $1,100,000 of the motor vehicle account--state appropriation shall lapse.
     (4) $81,000 of the DOL services account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1036.
     (5) $178,000 of the highway safety account--state appropriation is provided solely for two temporary collision processing FTEs to eliminate the backlog of collision reports. The department shall report, informally, to the house of representatives and senate transportation committees quarterly, beginning October 1, 2003, on the progress made in eliminating the backlog.

NEW SECTION.  Sec. 209   2003 c 360 s 211 (uncodified), 2003 c 360 s 212 (uncodified), and 2003 c 360 s 213 (uncodified) are repealed.

Sec. 210   2003 c 360 s 214 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--INFORMATION TECHNOLOGY -- PROGRAM C
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($58,661,000))
       $58,091,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $5,163,000
Puget Sound Ferry Operations Account -- State
     Appropriation . . . . . . . . . . . . (($6,583,000))
       $6,383,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $363,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($70,770,000))
       $70,000,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $715,000 of the motor vehicle account--state appropriation is provided solely to retain an external consultant to provide an assessment of the department's review of current major information technology systems and planning for system and application modernization. The legislative transportation committee shall approve the statement of work before the consultant is hired. The consultant shall also work with the department to prepare an application modernization strategy and preliminary project plan.
     The department and the consultant shall work with the office of financial management and the department of information services to ensure that (a) the department's current and future system development is consistent with the overall direction of other key state systems; and (b) when possible, common statewide information systems are used or developed to encourage coordination and integration of information used by the department and other state agencies and to avoid duplication. The department shall provide a report on its proposed application modernization plan to the transportation committees of the legislature by June 30, 2004.
     (2)(a) $2,963,000 of the motor vehicle account--state appropriation and $2,963,000 of the motor vehicle account--federal appropriation are provided solely for implementation of a new revenue collection system, including the integration of the regional fare coordination system (smart card), at the Washington state ferries. By December 1st of each year, an annual update must be provided to the legislative transportation committee concerning the status of implementing and completing this project.
     (b) (($400,000)) $200,000 of the Puget Sound ferry operation account--state appropriation is provided solely for implementation of the smart card program. (($200,000 of)) This amount must be held in allotment reserve until a smart card report is delivered to the legislative transportation committee indicating that an agreement on which technology will be used throughout the state of Washington for the smart card program has been reached among smart card participants.
     (3) The department shall contract with the department of information services to conduct a survey that identifies possible opportunities and benefits associated with siting and use of technology and wireless facilities located on state right of way authorized by RCW 47.60.140. The department shall submit a report regarding the survey to the appropriate legislative committees by December 1, 2004.

Sec. 211   2003 c 360 s 215 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--FACILITY MAINTENANCE, OPERATIONS AND CONSTRUCTION -- PROGRAM D -- OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($31,048,000))
       $31,068,000

Sec. 212   2003 c 360 s 216 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- AVIATION -- PROGRAM F
Aeronautics Account -- State Appropriation . . . . . . . . . . . . (($5,107,000))
       $5,355,000
Aeronautics Account -- Federal Appropriation . . . . . . . . . . . . (($650,000))
       $2,150,000
Aircraft Search and Rescue Safety and Education
     Account -- State Appropriation . . . . . . . . . . . . (($282,000))
       $160,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($6,039,000))
       $7,665,000

     The appropriations in this section are subject to the following conditions and limitations: (($1,381,000)) $1,129,000 of the aeronautics account--state appropriation is provided solely for additional preservation grants to airports. (($122,000 of the aircraft search and rescue safety and education account--state appropriation is provided for additional search and rescue and safety and education activities.)) If Senate Bill No. 6056 is not enacted by June 30, 2003, the amount((s)) provided shall lapse.

Sec. 213   2003 c 360 s 217 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM DELIVERY MANAGEMENT AND SUPPORT -- PROGRAM H
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($49,010,000))
       $49,056,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $400,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($49,410,000))
       $49,456,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $14,310,000 of the motor vehicle account--state appropriation is provided solely for the staffing, activities, and overhead of the department's environmental affairs office. This funding is provided in lieu of funding provided in sections 305 and 306 of this act.
     (2) $3,100,000 of the motor vehicle account--state appropriation is provided solely for the staffing and activities of the transportation permit efficiency and accountability committee.
     (3) $300,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department solely for the purposes of providing contract services to the association of Washington cities and Washington state association of counties to implement section 2(3)(c), (5), and (6), chapter 8 (ESB 5279), Laws of 2003 for activities of the transportation permit efficiency and accountability committee.

Sec. 214   2003 c 360 s 219 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- HIGHWAY MAINTENANCE -- PROGRAM M
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($283,350,000))
       $283,672,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $1,426,000
Motor Vehicle Account -- Private/Local Appropriation . . . . . . . . . . . . $4,253,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($289,029,000))
       $289,351,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) If portions of the appropriations in this section are required to fund maintenance work resulting from major disasters not covered by federal emergency funds such as fire, flooding, and major slides, supplemental appropriations must be requested to restore state funding for ongoing maintenance activities.
     (2) The department shall request an unanticipated receipt for any federal moneys received for emergency snow and ice removal and shall place an equal amount of the motor vehicle account -- state into unallotted status. This exchange shall not affect the amount of funding available for snow and ice removal.
     (3) The department shall request an unanticipated receipt for any private or local funds received for reimbursements of third party damages that are in excess of the motor vehicle account--private/local appropriation.
     (4) Funding is provided for maintenance on the state system to allow for a continuation of the level of service targets included in the 2001-03 biennium. In delivering the program, the department should concentrate on the following areas:
     (a) Meeting or exceeding the target for structural bridge repair on a statewide basis;
     (b) Eliminating the number of activities delivered in the "f" level of service at the region level;
     (c) Reducing the number of activities delivered in the "d" level of service by increasing the resources directed to those activities on a statewide and region basis; and
     (d) Evaluating, analyzing, and potentially redistributing resources within and among regions to provide greater consistency in delivering the program statewide and in achieving overall level of service targets.

Sec. 215   2003 c 360 s 220 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRAFFIC OPERATIONS -- PROGRAM Q--OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($38,869,000))
       $38,924,000
Motor Vehicle Account -- Private/Local Appropriation . . . . . . . . . . . . $125,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($38,994,000))
       $39,049,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) A maximum of $8,800,000 of the motor vehicle account--state appropriation may be expended for the incident response program, including the service patrols. The department and the Washington state patrol shall continue to consult and coordinate with private sector partners, such as towing companies, media, auto, insurance and trucking associations, and the legislative transportation committees to ensure that limited state resources are used most effectively. No funds shall be used to purchase tow trucks.
     (2) $4,400,000 of the motor vehicle account--state appropriation is provided solely for low-cost enhancements. The department shall give priority to low-cost enhancement projects that improve safety or provide congestion relief. The department shall prioritize low-cost enhancement projects on a statewide rather than regional basis.
     (3) At a frequency determined by the department, the interstate-5 variable message signs shall display a message advising slower traffic to keep right.

Sec. 216   2003 c 360 s 221 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRANSPORTATION MANAGEMENT AND SUPPORT -- PROGRAM S
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($24,852,000))
       $24,888,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $636,000
Puget Sound Ferry Operations Account -- State Appropriation . . . . . . . . . . . . $1,093,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $973,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($27,554,000))
       $27,590,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $627,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 5248. If Substitute Senate Bill No. 5248 is not enacted by June 30, 2003, the amount provided in this subsection shall lapse. The agency may transfer between programs funds provided in this subsection.
     (2) The department shall transfer at no cost to the Washington state patrol the title to the Walla Walla colocation facility.

Sec. 217   2003 c 360 s 222 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRANSPORTATION PLANNING, DATA, AND RESEARCH -- PROGRAM T
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($30,064,000))
       $30,105,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $14,814,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $1,021,000
Multimodal Transportation Account -- Federal Appropriation . . . . . . . . . . . . $2,000,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($47,899,000))
       $47,940,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $3,800,000 of the motor vehicle account--state appropriation is provided solely for a study of regional congestion relief solutions for Puget Sound, Spokane, and Vancouver. The study must include proposals to alleviate congestion consistent with population and land use expectations under the growth management act, and must include measurement of all modes of transportation.
     (2) $2,000,000 of the motor vehicle account--state appropriation is provided solely for additional assistance to support regional transportation planning organizations and long-range transportation planning efforts.
     (3) $3,000,000 of the motor vehicle account--state appropriation is provided solely for the costs of the regional transportation investment district (RTID) election and department of transportation project oversight. These funds are provided as a loan to the RTID and shall be repaid to the state motor vehicle account within one year following the certification of the election results related to the RTID.
     (4) $650,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department to support the processing and analysis of the backlog of city and county collision reports.
     (5) The department shall contribute to the report required in section 208(1) of this act in the form of an analysis of the cost impacts incurred by the department as the result of the policy implemented in section 208(1) of this act. The analysis shall contrast overtime costs charged by the patrol prior to July 1, 2003, with contract costs for similar services after July 1, 2003.
     (6) $60,000 of the distribution under RCW 46.68.110(2) and 46.68.120(3) is provided solely to the department for the Washington strategic freight transportation analysis.

Sec. 218   2003 c 360 s 223 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- CHARGES FROM OTHER AGENCIES--PROGRAM U
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($61,082,000))
       $60,561,000

     The appropriation in this section is subject to the following conditions and limitations:
     (1) $50,799,000 of the motor vehicle fund--state appropriation is provided solely for the liabilities attributable to the department of transportation. The office of financial management must provide a detailed accounting of the revenues and expenditures of the self-insurance fund to the transportation committees of the legislature on December 31st and June 30th of each year.
     (2) Payments in this section represent charges from other state agencies to the department of transportation.
     (a) FOR PAYMENT OF OFFICE OF FINANCIAL MANAGEMENT
DIVISION OF RISK MANAGEMENT FEES . . . . . . . . . . . . (($989,000))
       $848,000
     (b) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE
AUDITOR . . . . . . . . . . . . (($823,000))
       $819,000
     (c) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL
ADMINISTRATION FACILITIES AND SERVICES AND CONSOLIDATED
MAIL SERVICES . . . . . . . . . . . . (($3,850,000))
       $2,673,000
     (d) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF
PERSONNEL . . . . . . . . . . . . (($2,252,000))
       $2,786,000
     (e) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS
AND ADMINISTRATION . . . . . . . . . . . . $50,799,000
     (f) FOR PAYMENT OF THE DEPARTMENT OF GENERAL
ADMINISTRATION CAPITAL PROJECTS SURCHARGE . . . . . . . . . . . . $1,846,000
     (g) FOR ARCHIVES AND RECORDS MANAGEMENT . . . . . . . . . . . . (($523,000))
       $538,000
     (h) FOR PAYMENT OF COSTS OF THE OFFICE OF MINORITY
AND WOMEN'S BUSINESS ENTERPRISES . . . . . . . . . . . . $252,000

Sec. 219   2003 c 360 s 224 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- PUBLIC TRANSPORTATION -- PROGRAM V
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $46,457,000
Multimodal Transportation Account -- Federal Appropriation . . . . . . . . . . . . $2,574,000
Multimodal Transportation Account -- Private/Local
     Appropriation . . . . . . . . . . . . $155,000
          TOTAL APPROPRIATION . . . . . . . . . . . . $49,186,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $4,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for nonprofit providers of transportation for persons with special transportation needs. $14,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for transit agencies to transport persons with special transportation needs. Moneys shall be to provide additional service only and may not be used to supplant current funding. Grants shall only be used by nonprofit providers and transit agencies for capital and operating costs directly associated with adding additional service. Grants for nonprofit providers shall be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided. Grants for transit agencies shall be prorated based on the amount expended for demand response service and route deviated service in calendar year 2001 as reported in the "Summary of Public Transportation - 2001" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions.
     (2) $1,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to implement section 9 of Engrossed Substitute House Bill No. 2228.
     (3) Funds are provided for the rural mobility grant program as follows:
     (a) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for grants for those transit systems serving small cities and rural areas as identified in the Summary of Public Transportation - 2001 published by the department of transportation. Noncompetitive grants must be distributed to the transit systems serving small cities and rural areas in a manner similar to past disparity equalization programs.
     (b) $4,000,000 of the multimodal transportation account--state appropriation is provided solely to providers of rural mobility service in areas not served or underserved by transit agencies through a competitive grant process.
     (4) $4,000,000 of the multimodal transportation account--state appropriation is provided solely for a vanpool grant program for public transit agencies. The grant program will cover capital costs only; no operating costs are eligible for funding under this grant program. Only grants that add vanpools are eligible, no supplanting of transit funds currently funding vanpools is allowed. Additional criteria for selecting grants will include leveraging funds other than state funds.
     (5) $3,000,000 of the multimodal transportation account--state appropriation is provided to the city of Seattle for the Seattle streetcar project on South Lake Union.
     (6) Benton county has reached a statutory population threshold that now requires its development and participation in commute trip reduction programs and planning. Within existing appropriation levels, the department of transportation is directed to make available $100,000 to support Benton county in the development of its commute trip reduction program and planning. In addition, the transportation demand management office should provide technical assistance and resources appropriate to assist Benton county in this regard.

Sec. 220   2003 c 360 s 225 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- MARINE -- PROGRAM X
Puget Sound Ferry Operations Account -- State
     Appropriation . . . . . . . . . . . . (($309,580,000))
       $311,506,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $5,120,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($314,700,000))
       $316,626,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The appropriation is based on the budgeted expenditure of (($34,701,000)) $35,348,000 for vessel operating fuel in the 2003-2005 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.
     (2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 2003-2005 biennium may not exceed $207,757,000 plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of (($495.30)) $504.89 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2004 and (($567.67)) $583.79 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2005, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 2003-2005 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).
     The prescribed salary increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 2003, and thereafter, as established in the 2003-2005 general fund operating budget.
     (3) $4,234,000 of the multimodal transportation account--state appropriation and $800,000 of the Puget Sound ferry operations account--state appropriation are provided solely for operating costs associated with the Vashon to Seattle passenger-only ferry. The Washington state ferries will develop a plan to increase passenger-only farebox recovery to at least forty percent by July 1, 2003, with an additional goal of eighty percent, through increased fares, lower operation costs, and other cost-saving measures as appropriate. In order to implement the plan, ferry system management is authorized to negotiate changes in work hours (requirements for split shift work), but only with respect to operating passenger-only ferry service, to be included in a collective bargaining agreement in effect during the 2003-05 biennium that differs from provisions regarding work hours in the prior collective bargaining agreement. The department must report to the transportation committees of the legislature by December 1, 2003.
     (4) $866,000 of the multimodal transportation account--state appropriation and $200,000 of the Puget Sound ferry operations account--state appropriation are provided solely for operating costs associated with the Bremerton to Seattle passenger-only ferry service for thirteen weeks.
     (5) The department shall study the potential for private or public partners, including but not limited to King county, to provide passenger-only ferry service from Vashon to Seattle. The department shall report to the legislative transportation committees by December 31, 2003.
     (6) The Washington state ferries shall continue to provide service to Sidney, British Columbia.
     (7) When augmenting the existing ferry fleet, the department of transportation ferry capital program shall explore cost-effective options to include the leasing of ferries from private-sector organizations.
     (8) The Washington state ferries shall work with the department of general administration, office of state procurement to improve the existing fuel procurement process and solicit, identify, and evaluate, purchasing alternatives to reduce the overall cost of fuel and mitigate the impact of market fluctuations and pressure on both short- and long-term fuel costs. Consideration shall include, but not be limited to, long-term fuel contracts, partnering with other public entities, and possibilities for fuel storage in evaluating strategies and options. The department shall report back to the transportation committees of the legislature by December 1, 2003, on the options, strategies, and recommendations for managing fuel purchases and costs.
     (9) The department must provide a separate accounting of passenger-only ferry service costs and auto ferry service costs, and must provide periodic reporting to the legislature on the financial status of both passenger-only and auto ferry service in Washington state.
     (10) The Washington state ferries must work with the department's information technology division to implement a new revenue collection system, including the integration of the regional fare coordination system (smart card). Each December, annual updates are to be provided to the transportation committees of the legislature concerning the status of implementing and completing this project, with updates concluding the first December after full project implementation.
     (11) The Washington state ferries shall evaluate the benefits and costs of selling the depreciation rights to ferries purchased by the state in the future through sale and lease-back agreements, as permitted under RCW 47.60.010. The department is authorized to issue a request for proposal to solicit proposals from potential buyers. The department must report to the transportation committees of the legislature by December 1, 2004, on the options, strategies, and recommendations for sale/lease-back agreements on existing ferry boats as well as future ferry boat purchases.

Sec. 221   2003 c 360 s 227 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- LOCAL PROGRAMS -- PROGRAM Z--OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($7,057,000))
       $7,067,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $2,569,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($9,626,000))
       $9,636,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Up to $75,000 of the total appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) to fund the state's share of the 2004 Washington marine cargo forecast study. Public port districts, acting through their association, must provide funding to cover the remaining cost of the forecast.
     (2) $300,000 of the motor vehicle account--state appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) solely to fund a study of the threats posed by flooding to the state and other infrastructure near the Interstate 5 crossing of the Skagit River. This funding is contingent on the receipt of federal matching funds.

Sec. 301   2003 c 360 s 301 (uncodified) is amended to read as follows:
FOR THE WASHINGTON STATE PATROL
State Patrol Highway Account--State Appropriation . . . . . . . . . . . . (($2,205,000))
       $2,705,000

     The appropriation in this section is subject to the following conditions and limitations: $625,000 of the state patrol highway account appropriation is provided solely for the patrol's share of the Shelton area water and sewer regional plan. However, this amount is contingent on general fund--state funding of the Washington corrections center's portion of the Shelton area water and sewer regional plan. If general fund--state funding is not provided, the amount provided in this subsection shall lapse.

Sec. 302   2003 c 360 s 305 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--IMPROVEMENTS--PROGRAM I
Transportation 2003 Account (Nickel Account)--State
     Appropriation . . . . . . . . . . . . $565,300,000
Transportation 2003 Account (Nickel Account)--Federal
     Appropriation . . . . . . . . . . . . $950,000
Transportation 2003 Account (Nickel Account)--Local
     Appropriation . . . . . . . . . . . . $3,434,000
Motor Vehicle Account--State Appropriation . . . . . . . . . . . . (($157,374,000))
       $156,705,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $192,940,000
Motor Vehicle Account -- Local Appropriation . . . . . . . . . . . . $13,258,000
Special Category C Account--State Appropriation . . . . . . . . . . . . $50,279,000
Tacoma Narrows Toll Bridge Account Appropriation . . . . . . . . . . . . (($613,300,000))
       $603,992,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($1,596,835,000))
       $1,586,858,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) (($157,374,000)) $156,705,000 of the motor vehicle account--state appropriation, $192,940,000 of the motor vehicle account--federal appropriation, $13,258,000 of the motor vehicle account--local appropriation, and $50,279,000 of the special category C account--state appropriation are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - Current Law report as transmitted to LEAP on April 27, 2003.
     (2) The motor vehicle account--state appropriation includes (($78,000,000)) $93,615,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation. The motor vehicle account--state appropriation includes (($18,038,000)) $17,380,000 in unexpended proceeds from bond sales authorized in RCW 47.10.843 for mobility and economic initiative improvement projects.
     (3) The Tacoma Narrows toll bridge account--state appropriation includes $567,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The Tacoma Narrows toll bridge account--state appropriation includes (($46,300,000)) $36,992,000 in unexpended proceeds from the January 2003 bond sale authorized in RCW 47.10.843 for the Tacoma Narrows bridge project.
     (4) The special category C account--state appropriation includes $44,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.812. The transportation commission may authorize the use of current revenues available in the special category C account in lieu of bond proceeds for any part of the state appropriation.
     (5) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law report transmitted to LEAP on April 27, 2003.
     (6) The ((motor vehicle account)) transportation 2003 account (nickel account)--state appropriation includes $280,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.
     (7) $11,000,000 of the ((motor vehicle account)) transportation 2003 account (nickel account)--state appropriation is provided solely for the environmental impact statement on the SR 520 Evergreen floating bridge.
     (8) $250,000 of the transportation 2003 account (Nickel Account)--state appropriation and an equal amount from the city of Seattle are provided solely for an analysis of the impacts that an expansion of the SR 520 Evergreen floating bridge will have on the streets of North Capitol Hill, Roanoke Park, and Montlake. An advisory committee with two members each from Portage Bay/Roanoke Park Community Council, Montlake Community Council, and the North Capitol Hill community organization along with the secretary of transportation is established. The seven-member committee shall hire and oversee the contract with a transportation consulting organization to: (a) Perform an analysis of such impacts; and (b) design a traffic and circulation plan that mitigates the adverse consequences of such impacts. If the city of Seattle does not agree to provide $250,000 by January 1, 2004, the amount provided in this subsection shall lapse.
     (9)(a) $500,000 of the motor vehicle account--state appropriation is provided solely for a study to provide the legislature with information regarding the feasibility of pursuing a Washington commerce corridor. The department shall retain outside experts to conduct the study. The study must include the following conditions:
     (i) The Washington commerce corridor must be a north-south corridor starting in the vicinity of Lewis county and extending northerly to the vicinity of the Canadian border. The corridor must be situated east of state route number 405 and west of the Cascades. The corridor may include any of the following features:
     (A) Ability to carry long-haul freight;
     (B) Ability to provide for passenger auto travel;
     (C) Freight rail;
     (D) Passenger rail;
     (E) Public utilities; and
     (F) Other ancillary facilities as may be desired to maximize use of the corridor;
     (ii) The Washington commerce corridor must be developed, financed, designed, constructed, and operated by private sector consortiums; and
     (iii) The Washington commerce corridor must be subject to a joint permitting process involving federal, state, and local agencies with jurisdiction.
     (b) The legislative transportation committee shall form a working group to work with the department and the outside consultant on the study.
     (10) $8,000,000 of the ((motor vehicle account)) transportation 2003 account (nickel account)--state appropriation is provided for the SR 522, University of Washington-Bothell campus access project. This amount ((will cover approximately one-half of the)) may be used for design or construction costs.
     (11) The transportation permit efficiency and accountability committee (TPEAC) shall select from the project list under ((this)) subsection (5) of this section ten projects that have not yet secured state permits. TPEAC shall select projects from both urban and rural areas representing a wide variety of locations within the state. These projects shall be designated "Department of Transportation Permit Drafting Pilot Projects" and shall become a part of the work plan of TPEAC required under section 2(1)(b), chapter 8 (ESB 5279), Laws of 2003.
     (12) Of the amounts appropriated in this section and section 306 of this act, no more than $124,000 is provided for increased project costs due to the enactment of Substitute Senate Bill No. 5457.
     (((14))) (13) To manage some projects more efficiently, federal funds may be transferred from program Z to program I to replace those federal funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department shall not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

NEW SECTION.  Sec. 303   A new section is added to 2003 c 360 (uncodified) to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--PRESERVATION--PROGRAM P
Transportation 2003 Account (Nickel Account) . . . . . . . . . . . . $2,000,000
Motor Vehicle Account--State Appropriation . . . . . . . . . . . . $186,399,000
Motor Vehicle Account--Federal Appropriation . . . . . . . . . . . . $454,787,000
Motor Vehicle Account--Local Appropriation . . . . . . . . . . . . $12,666,000
Multimodal Account--State Appropriation . . . . . . . . . . . . $1,690,000
Puyallup Tribal Settlement Account--State Appropriation . . . . . . . . . . . . $10,706,000
          TOTAL APPROPRIATION . . . . . . . . . . . . $668,248,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $186,399,000 of the motor vehicle account--state appropriation, $454,787,000 of the motor vehicle account--federal appropriation, $12,666,000 of the motor vehicle account--local appropriation, and $1,690,000 of the multimodal transportation account--state appropriation are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List -Current Law report transmitted to LEAP on April 27, 2003.
     (2) The motor vehicle account--state appropriation includes $3,066,000 in proceeds from the sale of bonds authorized in RCW 47.10.761 and 47.10.762 for emergency purposes. The motor vehicle account--state appropriation includes $338,000 in unexpended proceeds from the January 2003 bond sale authorized in RCW 47.10.761 and 47.10.762 for emergency purposes.
     (3) The motor vehicle account--state appropriation includes $77,700,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.
     (4) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law report transmitted to LEAP on April 27, 2003.
     (5) The department of transportation shall continue to implement the lowest life cycle cost planning approach to pavement management throughout the state to encourage the most effective and efficient use of pavement preservation funds. Emphasis should be placed on increasing the number of roads addressed on time and reducing the number of roads past due.
     (6) Of the amounts appropriated in this section and section 305 of this act, no more than $124,000 is provided for increased project costs due to the enactment of Substitute Senate Bill No. 5457.
     (7) To manage some projects more efficiently, federal funds may be transferred from program Z to program P to replace those federal funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department shall not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

NEW SECTION.  Sec. 304   2003 1st sp.s. c 26 s 506 (uncodified) and 2003 c 360 s 306 (uncodified) are each repealed.

NEW SECTION.  Sec. 305   A new section is added to 2003 c 360 (uncodified) to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRAFFIC OPERATIONS -- PROGRAM Q--CAPITAL
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . $14,688,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $14,510,000
          TOTAL APPROPRIATION . . . . . . . . . . . . $29,198,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The amounts provided in this section are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - Current Law report transmitted to LEAP on April 27, 2003.
     (2) The motor vehicle account--state appropriation includes $9,408,000 for state matching funds for federally selected competitive grant or congressional earmark projects other than the commercial vehicle information systems and network. These moneys shall be placed into reserve status until such time as federal funds are secured that require a state match.

NEW SECTION.  Sec. 306   2003 1st sp.s. c 26 s 507 (uncodified) and 2003 c 360 s 307 (uncodified) are each repealed.

Sec. 307   2003 c 360 s 308 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- WASHINGTON STATE FERRIES CONSTRUCTION -- PROGRAM W
Puget Sound Capital Construction Account --
     State Appropriation . . . . . . . . . . . . (($129,066,000))
       $110,451,000
Puget Sound Capital Construction Account --
     Federal Appropriation . . . . . . . . . . . . (($34,400,000))
       $53,015,000
Multimodal Transportation Account--State Appropriation . . . . . . . . . . . . $13,381,000
Transportation 2003 Account (nickel account)
     Appropriation . . . . . . . . . . . . $5,749,000
          TOTAL APPROPRIATION . . . . . . . . . . . . $182,596,000

     The appropriations in this section are provided for improving the Washington state ferry system, including, but not limited to, vessel construction, major and minor vessel improvements, and terminal construction and improvements. The appropriations in this section are subject to the following conditions and limitations:
     (1) The multimodal transportation account--state appropriation includes $11,772,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.
     (2) (($129,066,000)) $110,451,000 of the Puget Sound capital construction account--state appropriation ((and $34,400,000)), $53,015,000 of the Puget Sound capital construction account--federal appropriation, and $1,609,000 of the multimodal transportation account--state appropriation are provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - Current Law as transmitted to the LEAP on April 27, 2003.
     (3) (($17,521,000)) $5,749,000 of the transportation 2003 account (nickel account)--state appropriation ((is)) and $11,772,000 of the multimodal transportation account--state appropriation are provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - New Law as transmitted to the LEAP on April 27, 2003.
     (4) The Puget Sound capital construction account -- state appropriation includes (($45,000,000)) $29,385,000 in proceeds from the sale of bonds authorized by RCW 47.10.843 for vessel and terminal acquisition, major and minor improvements, and long lead time materials acquisition for the Washington state ferries. The transportation commission may authorize the use of current revenues available to the motor vehicle account in lieu of bond proceeds for any part of the state appropriation.
     (5) The Washington state ferries shall consult with the United States Coast Guard regarding operational and design standards required to meet Safety of Life at Sea requirements, in an effort to determine the most efficient and cost-effective vessel design that meets these requirements.

NEW SECTION.  Sec. 308   A new section is added to 2003 c 360 (uncodified) to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- RAIL -- PROGRAM Y -- CAPITAL
Essential Rail Assistance Account -- State Appropriation . . . . . . . . . . . . $770,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $34,530,000
Multimodal Transportation Account -- Federal Appropriation . . . . . . . . . . . . $9,499,000
Washington Fruit Express Account -- State Appropriation . . . . . . . . . . . . $500,000
          TOTAL APPROPRIATION . . . . . . . . . . . . $45,299,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The multimodal transportation account--state appropriation includes $30,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.
     (2) $4,530,000 of the multimodal transportation account--state appropriation, $9,499,000 of the multimodal transportation account--federal appropriation, $500,000 of the Washington fruit express account--state appropriation, and $770,000 of the essential rail assistance account--state appropriation are provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - Current Law as transmitted to the LEAP on April 27, 2003.
     (3) $1,230,000 of the multimodal transportation account--state appropriation and $770,000 of the essential rail assistance account--state appropriation are to be placed in reserve status by the office of financial management to be held until the department identifies the location for a new transload facility at either Wenatchee or Quincy. The funds are to be released upon determination of a location and approval by the office of financial management.
     (4) $30,000,000 of the multimodal transportation account--state appropriation is provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - New Law as transmitted to the LEAP on April 27, 2003.
     (5) If federal block grant funding for freight or passenger rail is received, the department shall consult with the legislative transportation committee prior to spending the funds on additional projects.
     (6) If the department issues a call for projects, applications must be received by the department by November 1, 2003, and November 1, 2004.

NEW SECTION.  Sec. 309   2003 1st sp.s. c 26 s 508 (uncodified) and 2003 c 360 s 309 (uncodified) are each repealed.

Sec. 310   2003 c 360 s 310 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- LOCAL PROGRAMS -- PROGRAM Z--CAPITAL
Highway Infrastructure Account -- State Appropriation . . . . . . . . . . . . $207,000
Highway Infrastructure Account -- Federal Appropriation . . . . . . . . . . . . $1,602,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($28,425,000))
       $21,826,000
Motor Vehicle Account--Federal Appropriation . . . . . . . . . . . . $1,000,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $13,726,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($43,960,000))
       $38,361,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law Local Projects report transmitted to LEAP on April 27, 2003.
     (2) ((To manage some projects more efficiently,)) $1,000,000 of the motor vehicle account--federal appropriation is provided solely for managing some projects more efficiently. Federal funds may be transferred from program Z to programs I and P and state funds shall be transferred from programs I and P to program Z to replace those federal funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department may not transfer funds as authorized under this subsection without approval of the transportation commission. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.
     (3) $7,576,000 of the multimodal transportation account--state appropriation is reappropriated and provided solely to fund the first phase of a multiphase cooperative project with the state of Oregon to dredge the Columbia River. If dredge material is disposed of in the ocean, the department shall not expend the appropriation in this subsection unless agreement on ocean disposal sites has been reached that protects the state's commercial crab fishery. The amount provided in this subsection shall lapse unless the state of Oregon appropriates a dollar-for-dollar match to fund its share of the project.
     (4) (($1,156,000)) $647,000 of the motor vehicle account--state appropriation is reappropriated and provided solely for additional small city pavement preservation program grants, to be administered by the department's highways and local programs division. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded small city pavement preservation program grant funds, but does not report activity on the project within one year of grant award, should be reviewed by the department to determine whether the grant should be terminated. The department must promptly close out grants when projects have been completed, and identify where unused grant funds remain because actual project costs were lower than estimated in the grant award. The department shall expeditiously extend new grant awards to qualified projects when funds become available either because grant awards have been rescinded for lack of sufficient project activity or because completed projects returned excess grant funds upon project closeout.
     (5) (($4,010,000)) $3,156,000 of the motor vehicle account--state appropriation is reappropriated and provided solely for additional traffic and pedestrian safety improvements near schools. The highways and local programs division within the department of transportation shall administer this program. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded traffic and pedestrian safety improvement grant funds, but does not report activity on the project within one year of grant award should be reviewed by the department to determine whether the grant should be terminated. The department must promptly close out grants when projects have been completed, and identify where unused grant funds remain because actual project costs were lower than estimated in the grant award. The department shall expeditiously extend new grant awards to qualified projects when funds become available either because grant awards have been rescinded for lack of sufficient project activity or because completed projects returned excess grant funds upon project closeout.
     (6) The motor vehicle account--state appropriation includes (($20,452,000)) $15,317,000 in unexpended proceeds from the sale of bonds authorized by RCW 47.10.843.
     (7) The multimodal transportation account--state appropriation includes $6,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

NEW SECTION.  Sec. 311   A new section is added to 2003 c 360 (uncodified) to read as follows:
     The appropriations provided in sections 302(5), 303(4), 307(3), 308(4), and 310(1) of this act are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - New Law report transmitted to LEAP on April 27, 2003. Changes to specific projects may be made under the following conditions and limitations:
     (1) No projects may be removed from the 2003 Transportation Project List - New Law. Projects may be added to implement and detail the Highway Improvement Statewide Guardrail Retrofit and Statewide Bridge Rail Retrofit projects and for the Washington state ferries construction project Catch Up Preservation.
     (2) The department of transportation may adjust the schedules of listed projects to ensure efficient project delivery, achieve necessary milestones, and take advantage of partnership or other financial opportunities that may arise. The transportation commission must approve any project schedule changes. These schedule adjustments shall not impact the overall financial plan in a way that reduces the overall amount of planned expenditures or delays any project beyond the ten-year plan.
     (3) The department of transportation may adjust the expenditure plan of listed projects to ensure efficient project delivery, achieve necessary milestones, and take advantage of partnership or other financial opportunities that may arise. The transportation commission must approve any project expenditure plan changes. These expenditure plan adjustments shall not impact the overall financial plan in a way that reduces the overall amount of planned expenditures or delays any project beyond the ten-year plan.
     (4) Every calendar quarter, the department of transportation will provide to the office of financial management, house of representatives transportation committee, and the senate highways and transportation committee a report detailing any changes to the project list and the reasons for the changes.

NEW SECTION.  Sec. 312   A new section is added to 2003 c 360 (uncodified) to read as follows:
     The appropriations provided in sections 302(1), 303(1), 305(1), 307(2), 308(2) of this act and 2003 c 360 s 304(1) are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - Current Law report transmitted to LEAP on April 27, 2003. Changes to specific projects may be made under the following conditions and limitations:
     (1) The department of transportation may adjust the schedules of listed projects to ensure efficient project delivery, achieve necessary milestones, and take advantage of partnership or other financial opportunities that may arise. The transportation commission must approve any project schedule changes. These schedule adjustments shall not impact the overall financial plan in a way that reduces the overall amount of planned expenditures or delays any project beyond the ten-year plan.
     (2) The department of transportation may adjust the expenditure plan of listed projects to ensure efficient project delivery, achieve necessary milestones, and take advantage of partnership or other financial opportunities that may arise. The transportation commission must approve any project expenditure plan changes. These expenditure plan adjustments shall not impact the overall financial plan in a way that reduces the overall amount of planned expenditures or delays any project beyond the ten-year plan.
     (3) Every calendar quarter, the department of transportation will provide to the office of financial management, house of representatives transportation committee, and the senate highways and transportation committee a report detailing any changes to the project list and the reasons for the changes.

Sec. 401   2003 c 360 s 401 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALES DISCOUNTS AND DEBT TO BE PAID BY MOTOR VEHICLE ACCOUNT AND TRANSPORTATION FUND REVENUE
Highway Bond Retirement Account Appropriation . . . . . . . . . . . . (($258,971,000))
       $250,000,000
Nondebt-Limit Reimbursable Account Appropriation . . . . . . . . . . . . $4,131,000
Ferry Bond Retirement Account Appropriation . . . . . . . . . . . . $43,340,000
Transportation Improvement Board Bond Retirement
     Account -- State Appropriation . . . . . . . . . . . . $36,721,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($3,876,000))
       $5,254,000
Special Category C Account -- State Appropriation . . . . . . . . . . . . (($331,000))
       $338,000
Transportation Improvement Account -- State
     Appropriation . . . . . . . . . . . . $240,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $358,000
Transportation 2003 Account (nickel account)
     Appropriation . . . . . . . . . . . . (($2,100,000))
       $2,117,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($350,068,000))
       $342,499,000

Sec. 402   2003 c 360 s 402 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . $1,293,000
Special Category C Account Appropriation . . . . . . . . . . . . $111,000
Transportation Improvement Account -- State
     Appropriation . . . . . . . . . . . . (($5,000))
       $21,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $119,000
Transportation 2003 Account (nickel account)--State
     Appropriation . . . . . . . . . . . . $700,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($2,228,000))
       $2,244,000

Sec. 403   2003 c 360 s 403 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR MVFT BONDS AND TRANSFERS
     (1) Motor Vehicle Account -- State Reappropriation:
For transfer to the Tacoma Narrows toll bridge
account . . . . . . . . . . . . $567,000,000

     The department of transportation is authorized to sell up to $567,000,000 in bonds authorized by RCW 47.10.843 for the Tacoma Narrows bridge project. Proceeds from the sale of the bonds shall be deposited into the motor vehicle account. The department of transportation shall inform the treasurer of the amount to be deposited.

     (2) Motor Vehicle Account--State Appropriation:
For transfer to the Puget Sound capital construction
account . . . . . . . . . . . . (($45,000,000))
       $29,385,000

     The department of transportation is authorized to sell up to (($45,000,000)) $29,385,000 in bonds authorized by RCW 47.10.843 for vessel and terminal acquisition, major and minor improvements, and long lead-time materials acquisition for the Washington state ferries.

Sec. 404   2003 c 360 s 404 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- STATE REVENUES FOR DISTRIBUTION
     Motor Vehicle Account Appropriation for
motor vehicle fuel tax distributions to
cities and counties . . . . . . . . . . . . (($441,359,000))
       $439,518,000
     Motor Vehicle Account--State Appropriation:
For license permit and fee distributions to cities
and counties . . . . . . . . . . . . (($51,652,000))
       $13,119,000

Sec. 405   2003 c 360 s 405 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- TRANSFERS
     (1) State Patrol Highway Account -- State
Appropriation: For transfer to the Motor
Vehicle Account . . . . . . . . . . . . $20,000,000
     (2) Motor Vehicle Account -- State
Appropriation: For motor vehicle fuel tax
refunds and transfers . . . . . . . . . . . . (($465,152,000))
       $685,695,000
     (3) Highway Safety Account -- State
Appropriation: For transfer to the motor
vehicle account -- state . . . . . . . . . . . . $12,000,000

     The state treasurer shall perform the transfers from the state patrol highway account and the highway safety account to the motor vehicle account on a quarterly basis.

Sec. 406   2003 c 360 s 406 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRANSFERS
     (1) Motor Vehicle Account -- State Appropriation:
For transfer to Puget Sound Ferry Operations
Account . . . . . . . . . . . . $21,757,000
     (2) RV Account -- State Appropriation:
For transfer to the Motor Vehicle Account -- State . . . . . . . . . . . . $1,954,000
     (3) Motor Vehicle Account--State Appropriation:
For transfer to Puget Sound Capital Construction
Account . . . . . . . . . . . . (($64,287,000))
       $61,287,000
     (4) Puget Sound Ferry Operations Account--State
Appropriation: For transfer to Puget Sound
Capital Construction Account . . . . . . . . . . . . $22,000,000
     (5) Transportation Equipment Fund--State
Appropriation: For transfer to the Motor Vehicle
Account--State . . . . . . . . . . . . $8,000,000
     (6) Multimodal Transportation Account--State
Appropriation: For transfer to the Motor Vehicle
Account--State . . . . . . . . . . . . $3,000,000

     The transfers identified in this section are subject to the following conditions and limitations:
     (a) The department of transportation shall only transfer funds in subsections (2) and (3) of this section up to the level provided, on an as-needed basis.
     (b) The department of transportation shall transfer funds in subsection (4) of this section up to the amount identified, provided that a minimum balance of $5,000,000 is retained in the Puget Sound ferry operations account.
     (c) The amount identified in subsection (4) of this section may not include any revenues collected as passenger fares.

Sec. 407   2003 c 360 s 407 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--TRANSFERS
     State Patrol Highway Account: For transfer to the
department of retirement systems expense account:
For the administrative expenses of the ((judicial))
Washington state patrol retirement system . . . . . . . . . . . . (($223,304))
       $290,000

NEW SECTION.  Sec. 501   A new section is added to 2003 c 360 (uncodified) to read as follows:
     AGENCY EXPENDITURES FOR MOTOR VEHICLES. The use of hybrid motor vehicles reduces air contaminants, greenhouse gas emissions and reliance on imported sources of petroleum. To foster the use of hybrid motor vehicles, beginning July 1, 2004, before the purchase or lease of a motor vehicle, state agencies should first consider the feasibility of hybrid motor vehicles. State agencies should strive to purchase or lease a hybrid motor vehicle when the use of such a vehicle is consistent with and can accomplish the agency's mission and when the purchase is financially reasonable. The financial assessment should include savings accruing from reduced fuel purchases over the life of the vehicle. Agencies shall report on their purchases of hybrid vehicles in their biennial sustainability plans as required under executive order 02-03.

NEW SECTION.  Sec. 601   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. 602   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.