NEW SECTION.  Sec. 101   This act shall be known as the 2012 jobs now act.

NEW SECTION.  Sec. 201   For the purpose of providing funds to finance the projects described and authorized by the legislature in the capital and operating appropriations acts for the 2011-2013 fiscal biennium, and all costs incidental thereto, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of four hundred seventy million seven hundred six thousand dollars, or as much thereof as may be required, to finance these projects and all costs incidental thereto. Bonds authorized in this section may be sold at such price as the state finance committee shall determine. No bonds authorized in this section may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

NEW SECTION.  Sec. 202   (1) The proceeds from the sale of the bonds authorized in section 201 of this act shall be deposited in the state building construction account created by RCW 43.83.020. The proceeds shall be transferred as follows:
     (a) Three hundred eighty-nine million forty-six thousand dollars to remain in the state building construction account created by RCW 43.83.020;
     (b) Seventy-seven million dollars to the state taxable building construction account. All receipts from taxable bond issues are to be deposited into the account. If the state finance committee deems it necessary or advantageous to issue more than the amount specified in this subsection (1)(b) as taxable bonds in order to comply with federal internal revenue service rules and regulations pertaining to the use of nontaxable bond proceeds or in order to reduce the total financing costs for bonds issued, the proceeds of such additional taxable bonds shall be transferred to the state taxable building construction account in lieu of any transfer otherwise provided by this section. If the state finance committee determines that a portion of the amount specified in this subsection (1)(b) as taxable bonds may be issued as nontaxable bonds in compliance with federal internal revenue service rules and regulations pertaining to the use of nontaxable bond proceeds, then such bond proceeds shall be transferred to the state building construction account in lieu of the transfer to the state taxable building construction account otherwise provided by this subsection (1)(b). The state treasurer shall submit written notice to the director of financial management if it is determined that any such additional transfer to the state taxable building construction account is necessary or that a transfer from the state taxable building construction account to the state building construction account may be made. Moneys in the account may be spent only after appropriation.
     (2) These proceeds shall be used exclusively for the purposes specified in this section and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this section, and shall be administered by the office of financial management subject to legislative appropriation.

NEW SECTION.  Sec. 203   (1) The debt-limit general fund bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in section 202(1) (a) through (b) of this act.
     (2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in section 202(1) (a) through (b) of this act.
     (3) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of section 202(1) (a) through (b) of this act, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the debt-limit general fund bond retirement account an amount equal to the amount certified by the state finance committee to be due on the payment date.

NEW SECTION.  Sec. 204   (1) Bonds issued under sections 201 through 203 of this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.
     (2) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION.  Sec. 205   The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 201 of this act, and sections 202 and 203 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION.  Sec. 301   ENVIRONMENTAL CLEANUP AND RESTORATION--INTENT. It is the intent of the legislature to accelerate construction of environmental cleanup and restoration projects.

NEW SECTION.  Sec. 302   BONDS AUTHORIZED FOR ENVIRONMENTAL CLEANUP AND RESTORATION. (1) For the purpose of financing environmental cleanup and restoration, the state finance committee is authorized to issue a total of two hundred forty million three hundred seventy-two thousand dollars of limited tax obligation bonds of the state of Washington.
     (2) The state finance committee shall supervise and provide for the sale, issuance, and retirement of the bonds authorized by this section and sections 303 through 307 of this act in accordance with chapter 39.42 RCW. Bonds authorized by this section and sections 303 through 307 of this act shall be sold in the manner, at the time or times, in one or more series, in amounts, and at the prices as the state finance committee shall determine. No bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
     (3) The state finance committee may determine and include in any resolution authorizing the issuance of any bonds authorized by this section and sections 303 through 307 of this act such terms, provisions, covenants, and conditions as it may deem appropriate in order to assist with the marketing and sale of the bonds, confer rights upon the owners of bonds, and safeguard rights of the owners of bonds, including, among other things:
     (a) Provisions that the bonds shall be payable solely from and secured solely by the tax revenues received in the environmental cleanup and restoration account and by amounts in the 2012 jobs act credit enhancement reserve account created in section 401 of this act;
     (b) The conditions that must be satisfied prior to the issuance of any additional bonds that are to be payable from and secured by the tax revenues received in the environmental cleanup and restoration account on an equal basis with previously issued and outstanding bonds payable from the tax revenues received in the environmental cleanup and restoration account;
     (c) Provisions regarding reserves and credit enhancement, including, without limitation, the 2012 jobs act credit enhancement reserve account created in section 401 of this act; and
     (d) Whether bonds may be issued as tax-exempt bonds or must be issued as taxable bonds under the applicable provisions of the federal internal revenue code.
     (4) Bond proceeds must be used exclusively for the purposes specified in subsection (1) of this section.

NEW SECTION.  Sec. 303   ENVIRONMENTAL CLEANUP AND RESTORATION ACCOUNT REVENUES PLEDGED TO BONDS. Each bond issued under the authority of section 302 of this act shall distinctly state that payment or redemption of the bond and payment of the interest and any premium thereon is payable solely from and secured solely by a pledge of the tax revenues received from the tax imposed pursuant to RCW 82.21.030(1) and deposited in the environmental cleanup and restoration account pursuant to RCW 82.21.030(2) and by amounts in the 2012 jobs act credit enhancement reserve account created in section 401 of this act and is not a general obligation of the state to which the full faith and credit of the state is pledged. The legislature pledges to appropriate the tax revenues pledged to the payment of the bonds issued under sections 302 through 307 of this act. The legislature further agrees for the benefit of the owners of outstanding bonds issued by the state under sections 302 through 307 of this act to continue in effect and not to impair or withdraw the authorization of the imposition, collection, and transfer of the tax as provided in RCW 82.21.030 (1) and (2) for payment of the bonds. The state finance committee shall include this pledge and agreement of the state to owners of any bonds issued under sections 302 through 307 of this act. The owner of any bond or the trustee for the owner of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of pledged funds as directed in this section.

NEW SECTION.  Sec. 304   ENVIRONMENTAL CLEANUP AND RESTORATION CONSTRUCTION BOND PROCEEDS ACCOUNT. The proceeds from the sale of the bonds authorized in sections 302 through 307 of this act shall be deposited in the environmental cleanup and restoration construction bond proceeds account hereby created in the state treasury. Moneys in the account may be spent only after appropriation. Moneys in the account may be appropriated only for the construction and improvement of environmental cleanup and restoration projects. The state treasurer may establish subaccounts in the account for the purpose of segregating bond proceeds, including separate subaccounts for segregating proceeds of tax-exempt bonds and taxable bonds.

NEW SECTION.  Sec. 305   ENVIRONMENTAL CLEANUP AND RESTORATION BOND RETIREMENT ACCOUNT CREATED. (1) The environmental cleanup and restoration bond retirement account is hereby created in the state treasury. Moneys in the account must be used only for the payment of the principal and interest on the bonds authorized in sections 302 through 307 of this act.
     (2) The state finance committee must, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in section 302 of this act.
     (3) On or before each date on which principal and interest payment is due on bonds issued for the purposes of section 302 of this act, in accordance with the bond proceedings, the state treasurer shall withdraw from any tax revenues placed in the environmental cleanup and restoration account and deposit in the environmental cleanup and restoration bond retirement account an amount equal to the amount certified by the state finance committee to be due on the bond payment date. If the amount of tax revenues on deposit in the environmental cleanup and restoration account is insufficient to make the bond payment amount then due, the state treasurer shall withdraw from the 2012 jobs act credit enhancement reserve account and deposit in the environmental cleanup and restoration bond retirement account the additional amount required to provide sufficient funds for the bond payment amount then due.

NEW SECTION.  Sec. 306   ENVIRONMENTAL CLEANUP AND RESTORATION ACCOUNT CREATED. A special account designated as the environmental cleanup and restoration account is hereby created in the state treasury. Deposits to the account must include the tax revenues directed to the account under RCW 82.21.030(2) and any other revenues directed to the account by the legislature. Expenditures from the account may be made only for the specific purpose of funding environmental cleanup and restoration projects including, but not limited to, payment of principal and interest on bonds issued pursuant to section 302 of this act. Moneys in the account must be transferred to the environmental cleanup and restoration bond retirement account as required by section 303 of this act, and any moneys in the account not required for transfer to the environmental cleanup and restoration bond retirement account must be transferred to the state and local toxics control accounts in RCW 70.105D.070 for purposes consistent with this section. Amounts so transferred to the state and local toxics control accounts must be allocated at a rate of forty-seven percent to the state toxics control account in RCW 70.105D.070(1) and fifty-three percent to the local toxics control account in RCW 70.105D.070(3).

NEW SECTION.  Sec. 307   BONDS LEGAL INVESTMENT. The bonds authorized by sections 301 through 306 of this act constitute a legal investment for all state funds or for funds under state control and all funds of municipal corporations.

Sec. 308   RCW 82.21.030 and 1989 c 2 s 10 are each amended to read as follows:
     HAZARDOUS SUBSTANCE TAX DEDICATED TO ENVIRONMENTAL CLEANUP AND RESTORATION. (1) For the specific purpose of financing environmental cleanup and restoration, including, but not limited to, payment of debt service on bonds issued under section 302 of this act, a tax is imposed on the privilege of possession of hazardous substances in this state. The rate of the tax shall be seven-tenths of one percent multiplied by the wholesale value of the substance.
     (2) Moneys collected under this chapter shall be deposited ((in the toxics control accounts under RCW 70.105D.070)) into the environmental cleanup and restoration account in section 306 of this act.
     (3) Chapter 82.32 RCW applies to the tax imposed in this chapter. The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the tax imposed in this chapter.

Sec. 309   RCW 70.105D.070 and 2011 1st sp.s. c 50 s 964 are each reenacted and amended to read as follows:
     (1) The state toxics control account and the local toxics control account are hereby created in the state treasury.
     (2) The following moneys shall be deposited into the state toxics control account: (a) Those revenues which are raised by the tax imposed under RCW 82.21.030 ((and which are attributable to that portion of the rate equal to thirty-three one-hundredths of one percent)) and are transferred from the environmental cleanup and restoration account into the state toxics control account under section 306 of this act; (b) the costs of remedial actions recovered under this chapter or chapter 70.105A RCW; (c) penalties collected or recovered under this chapter; and (d) any other money appropriated or transferred to the account by the legislature. Moneys in the account may be used only to carry out the purposes of this chapter, including but not limited to the following activities:
     (i) The state's responsibility for hazardous waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.105 RCW;
     (ii) The state's responsibility for solid waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.95 RCW;
     (iii) The hazardous waste cleanup program required under this chapter;
     (iv) State matching funds required under the federal cleanup law;
     (v) Financial assistance for local programs in accordance with chapters 70.95, 70.95C, 70.95I, and 70.105 RCW;
     (vi) State government programs for the safe reduction, recycling, or disposal of hazardous wastes from households, small businesses, and agriculture;
     (vii) Hazardous materials emergency response training;
     (viii) Water and environmental health protection and monitoring programs;
     (ix) Programs authorized under chapter 70.146 RCW;
     (x) A public participation program, including regional citizen advisory committees;
     (xi) Public funding to assist potentially liable persons to pay for the costs of remedial action in compliance with cleanup standards under RCW 70.105D.030(2)(e) but only when the amount and terms of such funding are established under a settlement agreement under RCW 70.105D.040(4) and when the director has found that the funding will achieve both (A) a substantially more expeditious or enhanced cleanup than would otherwise occur, and (B) the prevention or mitigation of unfair economic hardship;
     (xii) Development and demonstration of alternative management technologies designed to carry out the hazardous waste management priorities of RCW 70.105.150;
     (xiii) During the 2009-2011 and 2011-2013 fiscal biennia, shoreline update technical assistance;
     (xiv) During the 2009-2011 fiscal biennium, multijurisdictional permitting teams; and
     (xv) During the 2011-2013 fiscal biennium, actions for reducing public exposure to toxic air pollution.
     (3) The following moneys shall be deposited into the local toxics control account: Those revenues which are raised by the tax imposed under RCW 82.21.030 ((and which are attributable to that portion of the rate equal to thirty-seven one-hundredths of one percent)) and are transferred to the local toxics control account under section 306 of this act.
     (a) Moneys deposited in the local toxics control account shall be used by the department for grants or loans to local governments for the following purposes in descending order of priority:
     (i) Remedial actions;
     (ii) Hazardous waste plans and programs under chapter 70.105 RCW;
     (iii) Solid waste plans and programs under chapters 70.95, 70.95C, 70.95I, and 70.105 RCW;
     (iv) Funds for a program to assist in the assessment and cleanup of sites of methamphetamine production, but not to be used for the initial containment of such sites, consistent with the responsibilities and intent of RCW 69.50.511; and
     (v) Cleanup and disposal of hazardous substances from abandoned or derelict vessels, defined for the purposes of this section as vessels that have little or no value and either have no identified owner or have an identified owner lacking financial resources to clean up and dispose of the vessel, that pose a threat to human health or the environment.
     (b) Funds for plans and programs shall be allocated consistent with the priorities and matching requirements established in chapters 70.105, 70.95C, 70.95I, and 70.95 RCW, except that any applicant that is a Puget Sound partner, as defined in RCW 90.71.010, along with any project that is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310, shall, except as conditioned by RCW 70.105D.120, receive priority for any available funding for any grant or funding programs or sources that use a competitive bidding process. During the 2007-2009 fiscal biennium, moneys in the account may also be used for grants to local governments to retrofit public sector diesel equipment and for storm water planning and implementation activities.
     (c) To expedite cleanups throughout the state, the department shall partner with local communities and liable parties for cleanups. The department is authorized to use the following additional strategies in order to ensure a healthful environment for future generations:
     (i) The director may alter grant-matching requirements to create incentives for local governments to expedite cleanups when one of the following conditions exists:
     (A) Funding would prevent or mitigate unfair economic hardship imposed by the clean-up liability;
     (B) Funding would create new substantial economic development, public recreational, or habitat restoration opportunities that would not otherwise occur; or
     (C) Funding would create an opportunity for acquisition and redevelopment of vacant, orphaned, or abandoned property under RCW 70.105D.040(5) that would not otherwise occur;
     (ii) The use of outside contracts to conduct necessary studies;
     (iii) The purchase of remedial action cost-cap insurance, when necessary to expedite multiparty clean-up efforts.
     (d) To facilitate and expedite cleanups using funds from the local toxics control account, during the 2009-2011 fiscal biennium the director may establish grant-funded accounts to hold and disperse local toxics control account funds and funds from local governments to be used for remedial actions.
     (4) Except for unanticipated receipts under RCW 43.79.260 through 43.79.282, moneys in the state and local toxics control accounts may be spent only after appropriation by statute.
     (5) Except during the 2009-2011 fiscal biennium, one percent of the moneys deposited into the state and local toxics control accounts shall be allocated only for public participation grants to persons who may be adversely affected by a release or threatened release of a hazardous substance and to not-for-profit public interest organizations. The primary purpose of these grants is to facilitate the participation by persons and organizations in the investigation and remedying of releases or threatened releases of hazardous substances and to implement the state's solid and hazardous waste management priorities. No grant may exceed sixty thousand dollars. Grants may be renewed annually. Moneys appropriated for public participation from either account which are not expended at the close of any biennium shall revert to the state toxics control account.
     (6) No moneys deposited into either the state or local toxics control account may be used for solid waste incinerator feasibility studies, construction, maintenance, or operation, or, after January 1, 2010, for projects designed to address the restoration of Puget Sound, funded in a competitive grant process, that are in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.
     (7) The department shall adopt rules for grant or loan issuance and performance.
     (8) ((During the 2007-2009 and 2009-2011 fiscal biennia, the legislature may transfer from the local toxics control account to either the state general fund or the oil spill prevention account, or both such amounts as reflect excess fund balance in the account.
     (9) During the 2009-2011 fiscal biennium, the local toxics control account may also be used for a standby rescue tug at Neah Bay, local government shoreline update grants, private and public sector diesel equipment retrofit, and oil spill prevention, preparedness, and response activities.
     (10) During the 2009-2011 fiscal biennium, the legislature may transfer from the state toxics control account to the state general fund such amounts as reflect the excess fund balance in the account.
     (11))) During the 2011-2013 fiscal biennium, the local toxics control account may also be used for local government shoreline update grants and actions for reducing public exposure to toxic air pollution.
     (9) During the 2011-2013 fiscal biennium, the legislature may transfer from the local toxics control account to the 2012 jobs act credit enhancement reserve account such amounts as reflect the excess fund balance of the account.

NEW SECTION.  Sec. 401   RESERVE ACCOUNT ESTABLISHED. (1) The 2012 jobs act credit enhancement reserve account is hereby created in the state treasury. Moneys in the account must be used exclusively to secure the payment of debt service on all bonds issued by the state pursuant to this act, including, without limitation, for transfers to the bond retirement account as required under the provisions of section 305 of this act.
     (2) The 2012 jobs act credit enhancement reserve account constitutes a reserve account for limited tax obligation bonds issued by the state pursuant to section 302 of this act. The amount on deposit in the 2012 jobs act credit enhancement reserve account shall be maintained in an amount equal to maximum annual debt service on all outstanding bonds secured thereby or in such other amount as may be required by the bond proceedings. Any withdrawal from the 2012 jobs act credit enhancement reserve account to pay debt service on bonds secured thereby shall be replenished within six months after the withdrawal or in such other manner as may be required by the bond proceedings by transfers from the public works assistance account required by section 402 of this act.
     (3) By July 1st of each year, the state treasurer must transfer sufficient amounts from loan repayment revenues received in the public works assistance account under RCW 43.155.060(1) to the 2012 jobs act credit enhancement reserve account so that the account balance is equal to the sum of the amounts certified in section 305 of this act.

Sec. 402   RCW 43.155.050 and 2011 1st sp.s. c 50 s 951 are each amended to read as follows:
     PUBLIC WORKS ASSISTANCE ACCOUNT LOAN REPAYMENTS DEDICATED TO RESERVE. (1) The public works assistance account is hereby established in the state treasury. Money may be placed in the public works assistance account from the proceeds of bonds when authorized by the legislature or from any other lawful source.
     (2) Money in the public works assistance account shall be used to make loans and to give financial guarantees to local governments for public works projects.
     (3) Repayments of loans made under this chapter must be deposited in the public works assistance account. Moneys in the account received from loan repayments under RCW 43.155.060(1) also must be transferred to the 2012 jobs act credit enhancement reserve account as required to maintain a balance therein as provided by section 401 of this act and to secure payment of debt service on all bonds issued by the state under this act in accordance with the bond proceedings. The legislature pledges to continue and maintain and not to impair the statutory and financial framework contained in this act and in this chapter to provide loan repayments under RCW 43.155.060(1) and to fund transfers to the 2012 jobs act credit enhancement reserve account as required to secure payment of debt service on limited tax obligation bonds issued by the state under this act in accordance with the bond proceedings. The legislature further pledges to continue to use amounts held in the public works assistance account to make loans to local governments for public works projects in a manner that is reasonably calculated to produce loan repayments in amounts at least sufficient to meet the requirements of this subsection (3) in accordance with the bond proceedings.
     (4) Moneys in the account may also be appropriated or transferred to provide for state match requirements under federal law for projects ((and activities conducted and financed by the board under)) funded by the drinking water assistance account and the water pollution control revolving account.
     (5) Not more than fifteen percent of the biennial capital budget appropriation to the public works board from this account may be expended or obligated for preconstruction loans, emergency loans, or loans for capital facility planning under this chapter; of this amount, not more than ten percent of the biennial capital budget appropriation may be expended for emergency loans and not more than one percent of the biennial capital budget appropriation may be expended for capital facility planning loans. ((For the 2007-2009 biennium, moneys in the account may be used for grants for projects identified in section 138, chapter 488, Laws of 2005 and section 1033, chapter 520, Laws of 2007. During the 2009-2011 fiscal biennium, sums in the public works assistance account may be used for the water pollution control revolving fund program match in section 3013, chapter 36, Laws of 2010 1st sp. sess. During the 2009-2011 fiscal biennium, the legislature may transfer from the job development fund to the general fund such amounts as reflect the excess fund balance of the fund.)) During the 2011-2013 fiscal biennium, the legislature may transfer from the public works assistance account to the general fund((, the water pollution control revolving account, and the drinking water assistance account)) and the 2012 jobs act credit enhancement reserve account such amounts as reflect the excess fund balance of the account.

NEW SECTION.  Sec. 403   FOR THE STATE TREASURER--TRANSFERS. No later than June 30, 2012, the state treasurer shall transfer the sum of seventeen million four hundred thousand dollars from the local toxics control account to the 2012 jobs act credit enhancement reserve account.

NEW SECTION.  Sec. 501   FOR THE DEPARTMENT OF COMMERCE
     Energy Efficiency Grants for Local Governments (91000241)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) The appropriation is provided solely for grants to local agencies for operational cost savings improvements to local agency facilities and related projects that result in energy and operational cost savings. Related projects are those projects that must be completed in order for the energy efficiency improvements to be effective. Grants may also be used for loan interest payments over the term of a loan.
     (2) The community services and housing division within the department of commerce, in consultation with the department of enterprise services, and the Washington State University energy program shall establish a competitive process to solicit and evaluate applications from local agencies. Final grant awards shall be determined by the department of commerce.
     (3) For the purposes of this section:
     (a) "Cost-effectiveness" means that the present value to the local agency of the energy reasonably expected to be saved or produced by a facility, activity, measure, or piece of equipment over its useful life, including any compensation received from a utility or the Bonneville power administration, is greater than the net present value of the costs of implementing, maintaining, and operating such facility, activity, measure, or piece of equipment over its useful life, when discounted at the cost of public borrowing.
     (b) "Energy equipment" means energy management systems and any equipment, materials, or supplies that are expected, upon installation, to reduce the energy use or energy cost of an existing building or facility, and the services associated with the equipment, materials, or supplies, including, but not limited to, design, engineering, financing, installation, project management, guarantees, operations, and maintenance. Reduction in energy use or energy cost may also include reductions in the use or cost of water, wastewater, or solid waste.
     (c) "Energy cost savings" means savings realized in expenses for energy use and expenses associated with water, wastewater, or solid waste systems.
     (d) "Energy savings performance contracting" means the process authorized by chapter 39.35C RCW by which a company contracts with a local agency to conduct energy audits and guarantee energy savings from energy efficiency.
     (e) "Operational cost savings" means savings realized from parts, service fees, capital renewal costs, and other measurable annual expenses to maintain and repair systems. This definition does not mean labor savings related to existing facility staff.
     (f) "Public facilities" means buildings, building components, and major equipment or systems owned by local agencies.
     (g) "Local agency" means any city and any town, county, special district, municipal corporation, agency, port district or authority, or political subdivision of any type, or any other entity or authority of local government in corporate form or otherwise.
     (4) Grants must be awarded in competitive rounds, based on demand and capacity, with at least ten percent of each competitive grant round awarded to small cities or towns with a population of fewer than five thousand residents.
     (5) In order to be eligible for energy efficiency grants under this section, applicants must complete an investment grade audit, or an equivalent, prior to submitting an application for funding.
     (6) Within each competitive round, projects must be weighted and prioritized based on the following criteria and in the following order:
     (a) Leverage ratio: In each round, the higher the leverage ratio of nonstate funding sources to state grant, the higher the project ranking.
     (b) Energy savings: In each round, the higher the energy savings, the higher the project ranking. Applicants must submit documentation that demonstrates energy and operational cost savings resulting from the installation of the energy equipment and improvements. The energy savings analysis shall be performed by a licensed engineer, and the documentation must include but is not limited to the following:
     (i) A description of the energy equipment and improvements; and
     (ii) A description of the energy and operational cost savings.
     (c) Expediency of expenditure: Project readiness to spend funds must be prioritized so that the legislative intent to expend funds quickly is met.
     (7) Projects that do not use energy savings performance contracting must: (a) Verify energy and operational cost savings for ten years or until the energy and operational costs savings pay for the project, whichever is shorter; (b) follow the department of enterprise services energy savings performance contracting project guidelines; and (c) employ a licensed engineer for the energy audit and construction. The department of commerce may require third-party verification of savings if a project is not implemented by an energy savings performance contractor selected by the department of enterprise services through the request of qualifications process. Third-party verification must be conducted either by an energy savings performance contractor selected by the department of enterprise services through a request for qualifications, a licensed engineer that is a certified energy manager, or a project resource conservation manager.
     (8) To intensify competition, the department of commerce may only award funds to the top eighty-five percent of projects applying in a round until the department of commerce determines a final round is appropriate. Projects that do not receive a grant award in one round may reapply in subsequent rounds.
     (9) Grant amounts awarded to each project must allow for the maximum number of projects funded with the greatest energy and cost benefit.
     (10) The department of commerce may charge projects administrative fees and may pay the department of enterprise services, and the Washington State University energy program administration fees in an amount determined through a memorandum of understanding.
     (11) The department of commerce and the department of enterprise services must submit a joint report to the appropriate committees of the legislature and the office of financial management on the timing and use of the grant funds, program administrative function, compliance with apprenticeship utilization requirements in RCW 39.04.320, compliance with prevailing wage requirements, and administration fees by the end of each fiscal year, until the funds are fully expended and all savings verification requirements are fulfilled.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $30,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $30,000,000

NEW SECTION.  Sec. 502   FOR THE DEPARTMENT OF COMMERCE
     2012 Local and Community Projects (91000417)

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Except as directed otherwise prior to the effective date of this section, the department shall not expend the appropriations in this section unless and until the nonstate share of project costs have been either expended, or firmly committed, or both, in an amount sufficient to complete the project or a distinct phase of the project that is useable to the public for the purpose intended by the legislature.
     (2) Prior to receiving funds, project recipients must demonstrate that the project site is under control for a minimum of ten years, either through ownership or a long-term lease. This requirement does not apply to appropriations for preconstruction activities or appropriations whose sole purpose is to purchase real property that does not include a construction or renovation component.
     (3) Projects funded in this section may be required to comply with Washington's high performance building standards as required by chapter 39.35D RCW.
     (4) Project funds are available on a reimbursement basis only, and shall not be advanced under any circumstances.
     (5) Projects funded in this section must be held by the recipient for a minimum of ten years and used for the same purpose or purposes intended by the legislature as required in RCW 43.63A.125(6).
     (6) Projects funded in this section, including those that are owned and operated by nonprofit organizations, are generally required to pay state prevailing wages.
     (7) The appropriation is provided solely for the following list of projects:

NEW SECTION.  Sec. 503   FOR THE DEPARTMENT OF COMMERCE
     Public Works Assistance Account Program--Additional Round (91000320)
     The appropriation in this section is subject to the following conditions and limitations: The public works board must conduct an additional funding round for public works projects. The public works board, local government applicants, and proposed projects must meet all requirements of chapter 43.155 RCW; except that, the public works board must approve the prioritized list of projects and loan amounts without seeking legislative approval.


Appropriation:
     State Taxable Building Construction Account--
          State . . . . . . . . . . . . $70,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $70,000,000

NEW SECTION.  Sec. 504   FOR THE DEPARTMENT OF COMMERCE
     Public Works Pre-Construction Loan Program (91000319)

Appropriation:
     State Taxable Building Construction Account--
          State . . . . . . . . . . . . $7,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $7,000,000

NEW SECTION.  Sec. 505   FOR THE DEPARTMENT OF COMMERCE
     New Energy (91000254)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) The appropriation in this section is provided solely for grants to fund installation of Washington-manufactured solar energy systems, including solar modules and inverters, in public and nonprofit buildings. The purpose of the grants is to create immediate, high quality jobs in an emerging local manufacturing industry and reduce the costs of electrical energy.
     (2) The department must conduct a competitive application process, evaluate project proposals according to objective criteria, allocate grant funds, and enter into contracts with the selected organizations.
     (a) Eligible applicants include 501(c)(3) nonprofit organizations, local governments, school districts, state agencies, higher education institutions, and federally recognized Indian tribes.
     (b) The department must, to the extent possible, allocate one-third of the dollars to projects in eastern Washington.
     (c) To be considered for funding, project proposals must, at a minimum, include:
     (i) Purchasing and installing solar modules and inverters manufactured in Washington; and
     (ii) Installing solar energy systems of 40kW or less in order to ensure maximum public exposure to different solar power applications.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $5,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $5,000,000

NEW SECTION.  Sec. 506   FOR THE DEPARTMENT OF COMMERCE
     Connell Klindworth Water Line Distribution (91000318)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $540,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $540,000

NEW SECTION.  Sec. 507   FOR THE DEPARTMENT OF COMMERCE
     Innovation Partnership Zones - Facilities and Infrastructure (92000089)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the Tri-Cities Research District - Wine Science Center project.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $5,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $5,000,000

NEW SECTION.  Sec. 508   FOR THE DEPARTMENT OF COMMERCE
     CERB Administered Economic Development, Innovation & Export Grants (92000096)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following list of projects. The board may allocate up to twenty-five percent of the amounts for specified projects to other specified projects or to additional grants awarded on a competitive basis if, upon further review of the specified projects, the cost of the projects is less than originally assumed or other nonstate funds become available. If specified projects have not met the requirements for executing a contract with the department by April 30, 2013, the board may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 509   FOR THE DEPARTMENT OF COMMERCE
Main Street Improvement Grants (92000098)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided solely for the following list of projects. The board may allocate up to twenty-five percent of the amounts for specified projects to other specified projects or to additional grants awarded on a competitive basis if, upon further review of the specified projects, the cost of the projects is less than originally assumed or other nonstate funds become available. If specified projects have not met the requirements for executing a contract with the department by April 30, 2013, the board may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 510   FOR THE DEPARTMENT OF COMMERCE
     Brownfield Redevelopment Grants (92000100)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the redevelopment of the Bellingham waterfront.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $1,500,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $1,500,000

NEW SECTION.  Sec. 511   FOR THE DEPARTMENT OF COMMERCE
     Port and Export Related Infrastructure (92000102)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following list of projects. The department may allocate up to twenty-five percent of the amounts for specified projects to other specified projects or to additional grants awarded on a competitive basis if, upon further review of the specified projects, the cost of the projects is less than originally assumed or other nonstate funds become available. If specified projects have not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 512   FOR THE DEPARTMENT OF COMMERCE
     Energy Efficiency Grants For Higher Education (91000242)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) The appropriation is provided solely for grants to public higher education institutions for operational cost savings improvements to higher education facilities and related projects that result in energy and operational cost savings. Related projects are those projects that must be completed in order for the energy efficiency improvements to be effective. Grants may also be used for loan interest payments over the term of a loan.
     (2) The community services and housing division within the department of commerce, in consultation with the department of enterprise services, and the Washington State University energy program shall establish a competitive process to solicit and evaluate applications from public higher education institutions. Final grant awards shall be determined by the department of commerce.
     (3) For the purposes of this section:
     (a) "Cost-effectiveness" means that the present value to the higher education institution of the energy reasonably expected to be saved or produced by a facility, activity, measure, or piece of equipment over its useful life, including any compensation received from a utility or the Bonneville power administration, is greater than the net present value of the costs of implementing, maintaining, and operating such facility, activity, measure, or piece of equipment over its useful life, when discounted at the cost of public borrowing.
     (b) "Energy equipment" means energy management systems and any equipment, materials, or supplies that are expected, upon installation, to reduce the energy use or energy cost of an existing building or facility, and the services associated with the equipment, materials, or supplies, including, but not limited to, design, engineering, financing, installation, project management, guarantees, operations, and maintenance. Reduction in energy use or energy cost may also include reductions in the use or cost of water, wastewater, or solid waste.
     (c) "Energy cost savings" means savings realized in expenses for energy use and expenses associated with water, wastewater, or solid waste systems.
     (d) "Energy savings performance contracting" means the process authorized by chapter 39.35C RCW by which a company contracts with a public agency to conduct energy audits and guarantee energy savings from energy efficiency.
     (e) "Operational cost savings" means savings realized from parts, service fees, capital renewal costs, and other measurable annual expenses to maintain and repair systems. This definition does not mean labor savings related to existing facility staff.
     (f) "Public facilities" means buildings, building components, and major equipment or systems owned by public higher education institutions.
     (4) Grants must be awarded in competitive rounds, based on demand and capacity.
     (5) In order to be eligible for energy efficiency grants under this section, applicants must complete an investment grade audit, or an equivalent, prior to submitting an application for funding.
     (6) Within each competitive round, projects must be weighted and prioritized based on the following criteria and in the following order:
     (a) Leverage ratio: In each round, the higher the leverage ratio of nonstate funding sources to state grant, the higher the project ranking.
     (b) Energy savings: In each round, the higher the energy savings, the higher the project ranking. Applicants must submit documentation that demonstrates energy and operational cost savings resulting from the installation of the energy equipment and improvements. The energy savings analysis shall be performed by a licensed engineer, and the documentation must include, but is not limited to, the following:
     (i) A description of the energy equipment and improvements; and
     (ii) A description of the energy and operational cost savings.
     (c) Expediency of expenditure: Project readiness to spend funds must be prioritized so that the legislative intent to expend funds quickly is met.
     (7) Projects that do not use energy savings performance contracting must: (a) Verify energy and operational cost savings for ten years or until the energy and operational costs savings pay for the project, whichever is shorter; (b) follow the department of enterprise services energy savings performance contracting project guidelines; and (c) employ a licensed engineer for the energy audit and construction. The department of commerce may require third-party verification of savings if a project is not implemented by an energy savings performance contractor selected by the department of enterprise services through the request of qualifications process. Third-party verification must be conducted either by an energy savings performance contractor selected by the department of enterprise services through a request for qualifications, a licensed engineer that is a certified energy manager, or a project resource conservation manager.
     (8) To intensify competition, the department of commerce may only award funds to the top eighty-five percent of projects applying in a round until the department of commerce determines a final round is appropriate. Projects that do not receive a grant award in one round may reapply in subsequent rounds.
     (9) Grant amounts awarded to each project must allow for the maximum number of projects funded with the greatest energy and cost benefit.
     (10) The department of commerce may charge projects administrative fees and may pay the department of enterprise services, and the Washington State University energy program administration fees in an amount determined through a memorandum of understanding.
     (11) The department of commerce and the department of enterprise services must submit a joint report to the appropriate committees of the legislature and the office of financial management on the timing and use of the grant funds, program administrative function, compliance with apprenticeship utilization requirements in RCW 39.04.320, compliance with prevailing wage requirements, and administration fees by the end of each fiscal year, until the funds are fully expended and all savings verification requirements are fulfilled.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $25,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $25,000,000

Sec. 513   2011 1st sp.s. c 49 s 1027 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF COMMERCE
     Building Communities Fund Grants (30000102)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) Except as directed otherwise prior to the effective date of this section, the department shall not expend the appropriation in this section unless and until the nonstate share of project costs have been either expended, or firmly committed, or both, in an amount sufficient to complete the projects or a distinct phase of the project that is useable to the public for this purpose intended by the legislature.
     (2) Prior to receiving funds, project recipients must demonstrate that the project site is under control for a minimum of ten years, either through ownership or a long-term lease. This requirement does not apply to appropriations for preconstruction activities or appropriations whose sole purpose is to purchase real property that does not include a construction or renovation component.
     (3) Projects funded in this section may be required to comply with Washington's high performance building standards as required by chapter 39.35D RCW.
     (4) Project funds are available on a reimbursement basis only, and shall not be advanced under any circumstances.
     (5) Projects funded in this section must be held by the recipient for a minimum of ten years and used for the same purpose or purposes intended by the legislature as required in RCW 43.63A.125(6).
     (6) Projects funded in this section, including those that are owned and operated by nonprofit organizations, are generally required to pay state prevailing wages.
     (7) The appropriation is provided solely for the following list of projects:

NEW SECTION.  Sec. 514   FOR THE OFFICE OF FINANCIAL MANAGEMENT
     Aerospace and Manufacturing Training Equipment Pool (91000003)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $2,265,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $2,265,000

NEW SECTION.  Sec. 601   FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES
     Rainier School: Cottages Remodel and Renovation (91000017)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $3,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $3,000,000

NEW SECTION.  Sec. 602   FOR THE DEPARTMENT OF HEALTH
     Drinking Water Safety (91000004)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following ranked list of projects. If specified projects have not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 603   FOR THE DEPARTMENT OF HEALTH
     Drinking Water Grants: Hanson Harbor (91000021)

     The appropriation in this section is subject to the following conditions and limitations: $699,000 of the appropriation is provided solely for the Hanson Harbor water supply project.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $699,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $699,000

NEW SECTION.  Sec. 604   FOR THE DEPARTMENT OF VETERANS AFFAIRS
     Walla Walla Nursing Facility (20082008)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $7,200,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $7,200,000

Sec. 701   2011 1st sp.s. c 48 s 3024 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF ECOLOGY
     Centennial Clean Water Program (30000208)

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $3,500,000 of the appropriation is provided solely to the city of Snohomish to implement the near-term wastewater treatment plant improvement project required under agreed order No. 7973 between the department of ecology and the city.
     (2) $3,500,000 of the appropriation is provided solely for a grant for the Freeland sewer project.
     (3) (($540,000 of the appropriation is provided solely for the city of Connell's Klindworth Campbell waterline distribution project.
     (4))) $600,000 of the appropriation is provided solely for a grant for the town of Mabton's wastewater treatment project.
     (((5))) (4) For projects involving repair, replacement, or improvement of a wastewater treatment plant or other public works facility for which an investment grade audit is obtainable, the department of ecology must require as a contract condition that the project sponsor undertake an investment grade audit. The project sponsor may finance the costs of the audit as part of its centennial clean water program grant.
     (5) $21,171,000 of the appropriation is provided solely as grants for the following ranked list of projects. If a specified project has not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 702   FOR THE DEPARTMENT OF ECOLOGY
     Skagit Mitigation (91000181)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following list of projects, which are related to implementation of Engrossed Substitute Senate Bill No. 6132. If a specified project has not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 703   FOR THE DEPARTMENT OF ECOLOGY
     Clean Up Toxic Sites - Puget Sound (91000032)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following ranked list of projects. If a specified project has not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional projects awarded on a competitive basis provided that the awardee is ready to proceed with the project.

NEW SECTION.  Sec. 704   FOR THE DEPARTMENT OF ECOLOGY
     Eastern Washington Clean Sites Initiative (91000033)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following ranked list of projects. If a specified project has not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional projects awarded on a competitive basis provided that the awardee is ready to proceed with the project.

NEW SECTION.  Sec. 705   FOR THE DEPARTMENT OF ECOLOGY
     Remedial Action Grant Program (91000038)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following ranked list of projects. If a specified project has not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 706   FOR THE DEPARTMENT OF ECOLOGY
     FY 2012 Statewide Storm Water Grant Program (91000053)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided solely for the following ranked list of projects. If a specified project has not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 707   FOR THE DEPARTMENT OF ECOLOGY
     Storm Water Retrofit and LID Competitive Grants (91000054)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided solely for the following ranked list of projects. If a specified project has not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 708   FOR THE DEPARTMENT OF ECOLOGY
     Columbia River Water Management Projects (91000179)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) $11,000,000 of the appropriation in this section is provided solely for the Gardena Irrigation District Main Canal Project.
     (2) $2,000,000 of the appropriation in this section is provided solely for the Lake Roosevelt Incremental Storage Release - East Low Canal Project.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $13,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $13,000,000

NEW SECTION.  Sec. 709   FOR THE DEPARTMENT OF ECOLOGY
     Flood Levy Improvements (92000057)

     The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following projects. If a specified project has not met the requirements for executing a contract with the department by April 30, 2013, the department may allocate the amount specified to additional grants awarded on a competitive basis provided that the grant awardee is ready to proceed with the project.

NEW SECTION.  Sec. 710   FOR THE STATE PARKS AND RECREATION COMMISSION
     Deferred Maintenance (91000030)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $820,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $820,000

NEW SECTION.  Sec. 711   FOR THE RECREATION AND CONSERVATION FUNDING BOARD
     Family Forest Fish Passage Program (91000097)

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $10,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $10,000,000

NEW SECTION.  Sec. 712   FOR THE STATE CONSERVATION COMMISSION
     Farms and Water Quality (91000004)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $5,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $5,000,000

NEW SECTION.  Sec. 713   FOR THE STATE CONSERVATION COMMISSION
     Conservation Reserve Enhancement Program (CREP) (91000006)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $1,277,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $1,277,000

NEW SECTION.  Sec. 714   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Dry Forest Restoration (91000039)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) $375,000 of the appropriation is provided solely for the Sherman Creek prescribed burning project.
     (2) $421,000 of the appropriation is provided solely for the Sinlahekin dry forest restoration project.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $796,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $796,000

NEW SECTION.  Sec. 715   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Fishway Improvements/Diversions (91000033)

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $8,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $8,000,000

NEW SECTION.  Sec. 716   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Hatchery Improvements (91000036)

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $43,775,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $43,775,000

NEW SECTION.  Sec. 717   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Minor Works - Dam and Dike (91000042)

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $3,650,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $3,650,000

NEW SECTION.  Sec. 718   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Minor Works - Access Sites (91000044)

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $7,406,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $7,406,000

NEW SECTION.  Sec. 719   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Minor Works - Fish Passage Barriers (Culverts) (91000045)

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $1,495,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $1,495,000

NEW SECTION.  Sec. 720   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Minor Works - Road Maintenance and Abandonment Plan (91000046)

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $1,576,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $1,576,000

NEW SECTION.  Sec. 721   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Wildlife Area Improvements (91000047)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $3,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $3,000,000

NEW SECTION.  Sec. 722   FOR THE DEPARTMENT OF FISH AND WILDLIFE
     Acquire Dryden Gravel Pit from Washington Department of Transportation (92000028)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $251,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $251,000

NEW SECTION.  Sec. 723   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Road Maintenance and Abandonment Plan (91000040)

     The appropriation is subject to the following conditions and limitations:
     (l) $1,084,000 of the appropriation in this section is provided solely to replace fish passage barriers and bring roads up to salmon recovery and clean water standards within natural area preserves and natural resource conservation areas.
     (2) $10,750,000 of the appropriation in this section is provided solely to replace fish passage barriers and bring roads up to salmon recovery and clean water standards on state grant lands and state forest lands.

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $11,834,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $11,834,000

NEW SECTION.  Sec. 724   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Restoration Projects to Improve Natural Resources (91000054)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) $435,000 of the appropriation is provided solely for a grant to a nonprofit organization for road repairs and restoration of forestlands along the Clearwater River.
     (2) $1,020,000 of the appropriation is provided solely for a grant for road repairs and forest treatments in the Ellsworth Creek watershed.
     (3) $1,030,000 of the appropriation is provided solely for a grant for dike removal and construction of a setback dike and flood attenuation structure at Port Susan Bay.
     (4) $75,000 of the appropriation is provided solely to the department of fish and wildlife for forest restoration treatments in the Oak Creek - Tieton landscape.

Appropriation:
     Environmental Cleanup and Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $2,560,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $2,560,000

NEW SECTION.  Sec. 725   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Forest Hazard Reduction and Safety (91000066)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) Up to $4,320,000 of the appropriation in this section is for forest treatments that benefit state trust lands in eastern Washington by reducing insect, disease and wildfire hazards, of which not more than $500,000 may be used for implementing treatments on federal lands solely within areas identified by a forest health technical advisory committee to warrant a forest health hazard warning or order authorized under RCW 76.06.180;
     (2) Up to $4,150,000 of the appropriation in this section is for noxious weed abatement and precommercial thinning on state trust lands; and
     (3) Forest treatments to reduce insect, disease and wildfire hazards on private or federal lands shall require a contract with the department of natural resources to provide at least a one-to-one nonstate or in-kind fund match, and to provide a ten-year landowner maintenance agreement.

Appropriation:
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $8,470,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $8,470,000

NEW SECTION.  Sec. 726   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Puget SoundCorps (91000046)

     The appropriation is subject to the following conditions and limitations: The appropriation in this section is provided solely for water quality and habitat protection and restoration projects that benefit Puget Sound recovery and that are primarily on public lands. The department of natural resources must contract with the department of ecology for Puget SoundCorps crews of youth and military veterans to implement these projects pursuant to chapter 20, Laws of 2011.

Appropriation:
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $10,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $10,000,000

NEW SECTION.  Sec. 727   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Creosote Piling Removal (91000047)

     The appropriation is subject to the following conditions and limitations: The appropriation in this section is provided solely to remove creosote pilings from Puget Sound.

Appropriation:
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $1,250,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $1,250,000

NEW SECTION.  Sec. 728   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Derelict Vessel Removal and Disposal (91000049)

     The appropriation is subject to the following conditions and limitations:
     (l) $700,000 of the appropriation in this section is provided solely to remove derelict or abandoned vessels up to 100 feet in length from Washington waters; and
     (2) $3,000,000 of the appropriation in this section is provided solely to remove derelict or abandoned vessels exceeding one hundred feet in length from Washington waters.

Appropriation:
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $3,700,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $3,700,000

NEW SECTION.  Sec. 729   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Shoreline Restoration (91000050)

     The appropriation is subject to the following conditions and limitations: The appropriation in this section is provided solely to fund aquatic restoration projects in Puget Sound through partnerships with other agencies and organizations.

Appropriation:
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $2,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $2,000,000

NEW SECTION.  Sec. 730   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Urban Forest Restoration (Puget Sound Basin)(91000051)

     The appropriation is subject to the following conditions and limitations: The appropriation in this section is provided solely to assist municipalities and jurisdictions across the state to better manage existing urban forests and plan for improvements to the urban forest infrastructure.

Appropriation:
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $800,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $800,000

NEW SECTION.  Sec. 731   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Large Debris Removal (91000052)

     The appropriation is subject to the following conditions and limitations: The appropriation in this section is provided solely to assist public and private shoreline property owners with the removal of large, artificial marine debris from Puget Sound shorelines.

Appropriation:
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $200,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $200,000

NEW SECTION.  Sec. 732   FOR THE DEPARTMENT OF NATURAL RESOURCES
     Secret Harbor Estuary Restoration - Cypress Island (91000053)

     The appropriation is subject to the following conditions and limitations: The appropriation in this section is provided solely to restore the Secret Harbor estuary, enhance public access, and expand the capacity of the Cypress Island natural resources conservation area for tourism and low-impact public use.

Appropriation:
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $535,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $535,000

NEW SECTION.  Sec. 801   FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Energy Efficiency Grants for K-12 Schools (91000017)

     The appropriation is subject to the following conditions and limitations: The superintendent of public instruction may charge program administrative fees.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $40,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $40,000,000

NEW SECTION.  Sec. 802   FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Urgent Repair Grant Program (91000016)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) The appropriation is provided solely for nonrecurring costs associated with school facility repairs and renovations necessary for unforeseen health and safety needs.
     (2) The office of the superintendent of public instruction, after consulting with maintenance and operations administrators of school districts, shall develop criteria for providing funding for specific projects to stay within the appropriation level provided in this section. The criteria must include, but are not limited to, the following: (a) Limiting district applications to one hundred thousand dollars; (b) limiting districts eligible to receive the grant to only once every other biennium; and (c) requiring any district receiving funding provided in this section to demonstrate a consistent commitment to addressing school facilities needs.
     (3) The superintendent of public instruction may charge program administrative fees.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $10,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $10,000,000

NEW SECTION.  Sec. 803   FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Distressed Schools (91000018)

     The appropriation in this section is subject to the following conditions and limitations: $6,000,000 of the appropriation in this section is provided solely for updating existing classrooms at John Marshall, Boren, and Van Asselt schools in the Seattle school district.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $16,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $16,000,000

NEW SECTION.  Sec. 804   FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Grant County Branch Campus of Wenatchee Valley Skills Center (30000091)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $19,408,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $9,488,000
          TOTAL . . . . . . . . . . . . $28,896,000

Sec. 805   2011 1st sp.s. c 49 s 5013 (uncodified) is amended to read as follows:
     FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     SEA-Tech Branch Campus of Tri-Tech Skills Center (30000078)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . (($1,169,000))
       $11,519,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . (($11,739,000))
       $0
          TOTAL . . . . . . . . . . . . (($12,908,000))
       $11,519,000

Sec. 806   2011 1st sp.s. c 49 s 5003 (uncodified) is amended to read as follows:
     FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Pierce County Skills Center (20084856)

Reappropriation:
     School Construction and Skill Centers Building
          Account--State . . . . . . . . . . . . $2,087,000
Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . (($7,100,000))
       $11,900,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $9,949,000
     Future Biennia (Projected Costs) . . . . . . . . . . . . (($10,772,000))
       $11,427,000
          TOTAL . . . . . . . . . . . . (($29,908,000))
       $35,363,000

Sec. 807   2011 1st sp.s. c 49 s 5012 (uncodified) is amended to read as follows:
FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Clark County Skills Center (30000093)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . (($100,000))
       $1,550,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . (($14,750,000))
       $12,300,000
          TOTAL . . . . . . . . . . . . (($14,850,000))
       $13,850,000

NEW SECTION.  Sec. 808   FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Wenatchee Valley Skills Center (92000004)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $9,500,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $9,500,000

NEW SECTION.  Sec. 809   FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Spokane Area Professional-Technical Skills Center (92000005)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $1,800,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $1,800,000

NEW SECTION.  Sec. 810   FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     WA-NIC Skills Center - Snoqualmie Valley School District/Bellevue Community College (92000006)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $1,715,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $1,715,000

NEW SECTION.  Sec. 811   FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
     Puget Sound Skills Center (30000017)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $1,500,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $21,400,000
          TOTAL . . . . . . . . . . . . $22,900,000

Sec. 812   2011 1st sp.s. c 48 s 5006 (uncodified) is amended to read as follows:
     FOR THE STATE SCHOOL FOR THE BLIND
     General Campus Preservation (30000018)

Appropriation:
     Charitable, Educational, Penal and Reformatory
          Institutions Account--State . . . . . . . . . . . . (($550,000))
       $0
     State Building Construction Account--State . . . . . . . . . . . . $550,000
          Subtotal Appropriation . . . . . . . . . . . . $550,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $2,557,000
          TOTAL . . . . . . . . . . . . $3,107,000

Sec. 813   2011 1st sp.s. c 48 s 5007 (uncodified) is amended to read as follows:
     FOR THE WASHINGTON STATE CENTER FOR CHILDHOOD DEAFNESS AND HEARING LOSS
     Minor Public Works (30000013)

Appropriation:
     Charitable, Educational, Penal and Reformatory
          Institutions Account--State . . . . . . . . . . . . (($536,000))
       $0
     State Building Construction Account--State . . . . . . . . . . . . $536,000
          Subtotal Appropriation . . . . . . . . . . . . $536,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $3,811,000
          TOTAL . . . . . . . . . . . . $4,347,000

NEW SECTION.  Sec. 814   FOR THE WASHINGTON STATE UNIVERSITY
     Washington State University Spokane - Riverpoint Biomedical and Health Sciences (20162953)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $6,000,000
     Environmental Cleanup & Restoration Construction
          Bond Proceeds Account--State . . . . . . . . . . . . $1,300,000
          Subtotal Appropriation . . . . . . . . . . . . $7,300,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $7,300,000

NEW SECTION.  Sec. 815   FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM
     Equipment Pool (91000035)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $18,164,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $0
          TOTAL . . . . . . . . . . . . $18,164,000

NEW SECTION.  Sec. 816   FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM
     Olympic College: College Instruction Center (30000122)

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $3,624,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $51,079,000
          TOTAL . . . . . . . . . . . . $54,703,000

Sec. 817   2011 1st sp.s. c 49 s 5075 (uncodified) is amended to read as follows:
FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM
     North Seattle Community College: Technology Building Renewal (30000129)

Reappropriation:
     State Building Construction Account--State . . . . . . . . . . . . $1,478,000
Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $23,335,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $606,000
     Future Biennia (Projected Costs) . . . . . . . . . . . . (($20,950,000))
       $0
          TOTAL . . . . . . . . . . . . (($23,034,000))
       $25,419,000

Sec. 818   2011 1st sp.s. c 49 s 5062 (uncodified) is amended to read as follows:
FOR THE WASHINGTON STATE HISTORICAL SOCIETY
     Washington Heritage Grants (30000117)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) The appropriation is subject to the provisions of RCW 27.34.330.
     (2) The appropriation is provided solely for the following list of projects:

NEW SECTION.  Sec. 901   REIMBURSEMENT OF BOND PROCEEDS ACCOUNTS. To the extent that any appropriation authorizes expenditures of state funds from the local government capital construction assistance bond proceeds account, water quality improvement construction bond proceeds account, environmental cleanup and restoration construction bond proceeds account, and forest to shore construction bond proceeds account in the state treasury for the respective programs and projects described in this act that are specified to be funded with proceeds from the sale of bonds authorized in this act, the legislature declares that any such expenditures made prior to the issue date of the applicable bonds to be issued for the respective programs and projects are intended to be reimbursed from proceeds of the sale of the applicable bonds in a maximum amount equal to the amount of the applicable authorized bonds.

NEW SECTION.  Sec. 902   (1) Allotments for appropriations in this act shall be provided in accordance with expedited capital project review requirements adopted by the office of financial management.
     (2) Each project is defined as proposed in the legislative budget notes or in the governor's budget document.

NEW SECTION.  Sec. 903   (1) To ensure minor works appropriations are carried out in accordance with legislative intent, funds appropriated in this act shall not be allotted until project lists are on file at the office of financial management, the house of representatives capital budget committee, and the senate ways and means committee. All projects must meet the criteria included in subsection (2)(a) of this section. Revisions to the lists must be filed with the office of financial management, the house of representatives capital budget committee, and the senate ways and means committee and include an explanation of variances from the prior lists before funds may be expended on the revisions.
     (2)(a) Minor works projects are single line appropriations that include multiple projects of a similar nature and that are valued between $25,000 and $1,000,000 each, with the exceptions of: (i) Higher education minor works projects that may be valued up to $2,000,000; and (ii) department of fish and wildlife minor works projects funded in this act that may be valued up to $3,200,000. These projects can generally be completed within two years of the appropriation with the funding provided. Except for department of fish and wildlife minor works projects funded in this act, agencies are prohibited from including projects on their minor works lists that are a phase of a larger project, and that if combined over a continuous period of time, would exceed $1,000,000, or $2,000,000 for higher education minor works projects. Improvements for accessibility in compliance with the Americans with disabilities act may be included in any of the above minor works categories.
     (b) Minor works appropriations shall not be used for, among other things: Studies, except for technical or engineering reviews or designs that lead directly to and support a project on the same minor works list; planning; design outside the scope of work on a minor works list; moveable, temporary, and traditionally funded operating equipment not in compliance with the equipment criteria established by the office of financial management; software not dedicated to control of a specialized system; moving expenses; land or facility acquisition; or to supplement funding for projects with funding shortfalls unless expressly authorized elsewhere in this act. The office of financial management may make an exception to the limitations described in this subsection (2)(b) for exigent circumstances after notifying the legislative fiscal committees and waiting ten days for comments by the legislature regarding the proposed exception.
     (c) Minor works preservation projects may include program improvements of no more than twenty-five percent of the individual minor works preservation project cost.
     (3) It is generally not the intent of the legislature to make future appropriations for capital expenditures or for maintenance and operating expenses for an acquisition project or a significant expansion project that is initiated through the minor works process and therefore does not receive a policy and fiscal analysis by the legislature. Minor works projects are intended to be one-time expenditures that do not require future state resources to complete.

NEW SECTION.  Sec. 904   (1) The office of financial management may authorize a transfer of appropriation authority provided for a capital project that is in excess of the amount required for the completion of such project to another capital project for which the appropriation is insufficient. No such transfer may be used to expand the capacity of any facility beyond that intended in making the appropriation. Such transfers may be effected only between capital appropriations to a specific department, commission, agency, or institution of higher education and only between capital projects that are funded from the same fund or account. No transfers may occur between projects to local government agencies except where the grants are provided within a single omnibus appropriation and where such transfers are specifically authorized by the implementing statutes that govern the grants.
     (2) The office of financial management may find that an amount is in excess of the amount required for the completion of a project only if: (a) The project as defined in the notes to the budget document is substantially complete and there are funds remaining; or (b) bids have been let on a project and it appears to a substantial certainty that the project as defined in the notes to the budget document can be completed within the biennium for less than the amount appropriated in this act.
     (3) For the purposes of this section, the intent is that each project be defined as proposed to the legislature in the governor's budget document, unless it clearly appears from the legislative history that the legislature intended to define the scope of a project in a different way.
     (4) The office of financial management shall report any transfer effected under this section to the house of representatives capital budget committee, the senate ways and means committee, and the legislative evaluation and accountability program committee, at least thirty days before the date the transfer is effected. The office of financial management shall report all emergency or smaller transfers within thirty days from the date of transfer. The governor's capital budget request following any transfer shall reflect that transfer in the affected agency.

NEW SECTION.  Sec. 905   (1) It is expected that projects be ready to proceed in a timely manner depending on the type or phase of the project or program that is the subject of the appropriation in this act. Except for major projects that customarily may take more than two biennia to complete from predesign to the end of construction, or large infrastructure grant or loan programs supporting projects that often take more than two biennia to complete, the legislature generally does not intend to reappropriate funds more than once, particularly for smaller grant programs, local/community projects, and minor works.
     (2) Agencies shall expedite the expenditure of reappropriations and appropriations in this act in order to: (a) Rehabilitate infrastructure resources; (b) accelerate environmental rehabilitation and restoration projects for the improvement of the state's natural environment; (c) reduce additional costs associated with acquisition and construction inflationary pressures; and (d) provide additional employment opportunities associated with capital expenditures.
     (3) To the extent feasible, agencies are directed to accelerate expenditure rates at their current level of permanent employees and shall use contracted design and construction services wherever necessary to meet the goals of this section.

NEW SECTION.  Sec. 906   FOR THE ARTS COMMISSION--ART WORK ALLOWANCE POOLING
     (1) One-half of one percent of moneys appropriated in this act for original construction of school plant facilities may be expended for the purposes of RCW 28A.335.210. The Washington state arts commission may combine the proceeds from individual projects in order to fund larger works of art or mobile art displays in consultation with the superintendent of public instruction and representatives of school district boards.
     (2) One-half of one percent of moneys appropriated in this act for original construction or any major renovation or remodel work exceeding two hundred thousand dollars by colleges or universities may be expended for the purposes of RCW 28B.10.027. The Washington state arts commission may combine the proceeds from individual projects in order to fund larger works of art or mobile art displays in consultation with the board of regents or trustees.
     (3) At least eighty-five percent of the moneys spent by the Washington state arts commission during the 2011-2013 biennium for the purposes of RCW 28A.335.210, 28B.10.027, and 43.17.200 must be expended solely for direct acquisition of works of art. The commission may use up to $100,000 of this amount to conserve or maintain existing pieces in the state art collection pursuant to chapter 36, Laws of 2005.

Sec. 907   RCW 43.63A.125 and 2011 1st sp.s. c 48 s 7027 are each amended to read as follows:
     (1) The department shall establish the building communities fund program. Under the program, capital and technical assistance grants may be made to nonprofit organizations for acquiring, constructing, or rehabilitating facilities used for the delivery of nonresidential community services, including social service centers and multipurpose community centers, including those serving a distinct or ethnic population. Such facilities must be located in a distressed community or serve a substantial number of low-income or disadvantaged persons.
     (2) The department shall establish a competitive process to solicit, evaluate, and rank applications for the building communities fund program as follows:
     (a) The department shall conduct a statewide solicitation of project applications from nonprofit organizations.
     (b) The department shall evaluate and rank applications in consultation with a citizen advisory committee using objective criteria. To be considered qualified, applicants must demonstrate that the proposed project:
     (i) Will increase the range, efficiency, or quality of the services provided to citizens;
     (ii) Will be located in a distressed community or will serve a substantial number of low-income or disadvantaged persons;
     (iii) Will offer three or more distinct activities that meet a single community service objective or offer a diverse set of activities that meet multiple community service objectives, including but not limited to: Providing social services; expanding employment opportunities for or increasing the employability of community residents; or offering educational or recreational opportunities separate from the public school system or private schools, as long as recreation is not the sole purpose of the facility;
     (iv) Reflects a long-term vision for the development of the community, shared by residents, businesses, leaders, and partners;
     (v) Requires state funding to accomplish a discrete, usable phase of the project;
     (vi) Is ready to proceed and will make timely use of the funds;
     (vii) Is sponsored by one or more entities that have the organizational and financial capacity to fulfill the terms of the grant agreement and to maintain the project into the future;
     (viii) Fills an unmet need for community services;
     (ix) Will achieve its stated objectives; and
     (x) Is a community priority as shown through tangible commitments of existing or future assets made to the project by community residents, leaders, businesses, and government partners.
     (c) The evaluation and ranking process shall also include an examination of existing assets that applicants may apply to projects. Grant assistance under this section shall not exceed twenty-five percent of the total cost of the project, except, under exceptional circumstances, the department may reduce the amount of nonstate match required. No more than ten percent of the total granted amount may be awarded to qualified eligible projects that meet the definition of exceptional circumstances defined in this subsection. For purposes of this subsection, exceptional circumstances include but are not limited to: Natural disasters affecting projects; emergencies beyond an applicant's control, such as a fire or an unanticipated loss of a lease where services are currently provided; or a delay that could result in a threat to public health or safety. The nonstate portion of the total project cost may include cash, the value of real property when acquired solely for the purpose of the project, and in-kind contributions.
     (d) The department may not set a monetary limit to funding requests.
     (3) The department shall submit biennially to the governor and the legislature in the department's capital budget request a ranked list of the qualified eligible projects for which applications were received. The list must include a description of each project, its total cost, and the amount of state funding requested. The appropriate fiscal committees of the legislature shall use this list to determine building communities fund projects that may receive funding in the capital budget. The total amount of state capital funding available for all projects on the biennial list shall be determined by the capital budget beginning with the 2009-2011 biennium and thereafter. In addition, if cash funds have been appropriated, up to three million dollars may be used for technical assistance grants. The department shall not sign contracts or otherwise financially obligate funds under this section until the legislature has approved a specific list of projects.
     (4) In addition to the list of ranked qualified eligible projects, the department shall submit to the appropriate fiscal committees of the legislature a summary report that describes the solicitation and evaluation processes, including but not limited to the number of applications received, the total amount of funding requested, issues encountered, if any, and any recommendations for process improvements.
     (5) After the legislature has approved a specific list of projects in law, the department shall develop and manage appropriate contracts with the selected applicants; monitor project expenditures and grantee performance; report project and contract information; and exercise due diligence and other contract management responsibilities as required.
     (6) In contracts for grants authorized under this section the department shall include provisions which require that capital improvements shall be held by the grantee for a specified period of time appropriate to the amount of the grant and that facilities shall be used for the express purpose of the grant. If the grantee is found to be out of compliance with provisions of the contract, the grantee shall repay to the state general fund the principal amount of the grant plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the date of authorization of the grant.
     (7) During the 2011-2013 biennium, solely for the accelerated competitive funding round described in section 513(8) of this act, the following provisions will be in effect:
     (a) Construction and rehabilitation projects are eligible. Acquisition projects are not eligible.
     (b) Community hall projects are eligible.
     (c) Applicants may propose that up to seventy-five percent of total project costs be funded by the state and at least twenty-five percent of total project costs be funded by nonstate match.
     (d) Applicants must document firm commitment of matching resources at the time the application is submitted.
     (e) The department must approve projects without seeking legislative approval.

Sec. 908   RCW 43.155.070 and 2009 c 518 s 16 are each amended to read as follows:
     (1) To qualify for loans or pledges under this chapter the board must determine that a local government meets all of the following conditions:
     (a) The city or county must be imposing a tax under chapter 82.46 RCW at a rate of at least one-quarter of one percent;
     (b) The local government must have developed a capital facility plan; and
     (c) The local government must be using all local revenue sources which are reasonably available for funding public works, taking into consideration local employment and economic factors.
     (2) Except where necessary to address a public health need or substantial environmental degradation, a county, city, or town planning under RCW 36.70A.040 must have adopted a comprehensive plan, including a capital facilities plan element, and development regulations as required by RCW 36.70A.040. This subsection does not require any county, city, or town planning under RCW 36.70A.040 to adopt a comprehensive plan or development regulations before requesting or receiving a loan or loan guarantee under this chapter if such request is made before the expiration of the time periods specified in RCW 36.70A.040. A county, city, or town planning under RCW 36.70A.040 which has not adopted a comprehensive plan and development regulations within the time periods specified in RCW 36.70A.040 is not prohibited from receiving a loan or loan guarantee under this chapter if the comprehensive plan and development regulations are adopted as required by RCW 36.70A.040 before submitting a request for a loan or loan guarantee.
     (3) In considering awarding loans for public facilities to special districts requesting funding for a proposed facility located in a county, city, or town planning under RCW 36.70A.040, the board shall consider whether the county, city, or town planning under RCW 36.70A.040 in whose planning jurisdiction the proposed facility is located has adopted a comprehensive plan and development regulations as required by RCW 36.70A.040.
     (4) The board shall develop a priority process for public works projects as provided in this section. The intent of the priority process is to maximize the value of public works projects accomplished with assistance under this chapter. The board shall attempt to assure a geographical balance in assigning priorities to projects. The board shall consider at least the following factors in assigning a priority to a project:
     (a) Whether the local government receiving assistance has experienced severe fiscal distress resulting from natural disaster or emergency public works needs;
     (b) Except as otherwise conditioned by RCW 43.155.110, whether the entity receiving assistance is a Puget Sound partner, as defined in RCW 90.71.010;
     (c) Whether the project is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310;
     (d) Whether the project is critical in nature and would affect the health and safety of a great number of citizens;
     (e) Whether the applicant has developed and adhered to guidelines regarding its permitting process for those applying for development permits consistent with section 1(2), chapter 231, Laws of 2007;
     (f) The cost of the project compared to the size of the local government and amount of loan money available;
     (g) The number of communities served by or funding the project;
     (h) Whether the project is located in an area of high unemployment, compared to the average state unemployment;
     (i) Whether the project is the acquisition, expansion, improvement, or renovation by a local government of a public water system that is in violation of health and safety standards, including the cost of extending existing service to such a system;
     (j) Except as otherwise conditioned by RCW 43.155.120, and effective one calendar year following the development of model evergreen community management plans and ordinances under RCW 35.105.050, whether the entity receiving assistance has been recognized, and what gradation of recognition was received, in the evergreen community recognition program created in RCW 35.105.030;
     (k) The relative benefit of the project to the community, considering the present level of economic activity in the community and the existing local capacity to increase local economic activity in communities that have low economic growth; and
     (l) Other criteria that the board considers advisable.
     (5) Existing debt or financial obligations of local governments shall not be refinanced under this chapter. Each local government applicant shall provide documentation of attempts to secure additional local or other sources of funding for each public works project for which financial assistance is sought under this chapter.
     (6) Before November 1st of each even-numbered year, the board shall develop and submit to the appropriate fiscal committees of the senate and house of representatives a description of the loans made under RCW 43.155.065, 43.155.068, and subsection (9) of this section during the preceding fiscal year and a prioritized list of projects which are recommended for funding by the legislature, including one copy to the staff of each of the committees. The list shall include, but not be limited to, a description of each project and recommended financing, the terms and conditions of the loan or financial guarantee, the local government jurisdiction and unemployment rate, demonstration of the jurisdiction's critical need for the project and documentation of local funds being used to finance the public works project. The list shall also include measures of fiscal capacity for each jurisdiction recommended for financial assistance, compared to authorized limits and state averages, including local government sales taxes; real estate excise taxes; property taxes; and charges for or taxes on sewerage, water, garbage, and other utilities.
     (7) The board shall not sign contracts or otherwise financially obligate funds from the public works assistance account before the legislature has appropriated funds for a specific list of public works projects. The legislature may remove projects from the list recommended by the board. The legislature shall not change the order of the priorities recommended for funding by the board.
     (8) Subsection (7) of this section does not apply to loans made under RCW 43.155.065, 43.155.068, and subsection (9) of this section.
     (9) Loans made for the purpose of capital facilities plans shall be exempted from subsection (7) of this section.
     (10) To qualify for loans or pledges for solid waste or recycling facilities under this chapter, a city or county must demonstrate that the solid waste or recycling facility is consistent with and necessary to implement the comprehensive solid waste management plan adopted by the city or county under chapter 70.95 RCW.
     (11) After January 1, 2010, any project designed to address the effects of storm water or wastewater on Puget Sound may be funded under this section only if the project is not in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.
     (12) During the 2011-2013 biennium, solely for the additional funding round described in section 503 of this act, the public works board, local government applicants and proposed projects must meet all requirements of this section; except that, the public works board must approve the prioritized list of projects and funding amounts without seeking legislative approval.

NEW SECTION.  Sec. 909   CODIFICATION. (1) Sections 201 through 205 of this act constitute a new chapter in Title 43 RCW.
     (2) Sections 301 through 307 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 910   SEVERABILITY. 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. 911   EFFECTIVE DATE. 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.""