CERTIFICATION OF ENROLLMENT

ENGROSSED SUBSTITUTE SENATE BILL 6001

Chapter 222, Laws of 2014

(partial veto)

63rd Legislature
2014 Regular Session



TRANSPORTATION BUDGET--SUPPLEMENTAL



EFFECTIVE DATE: 4/4/14 - Except for Section 701, which is contingent.

Passed by the Senate March 12, 2014
  YEAS 44   NAYS 4

BRAD OWEN
________________________________________    
President of the Senate
Passed by the House March 11, 2014
  YEAS 65   NAYS 33

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


 
CERTIFICATE

I, Hunter G. Goodman, Secretary of the Senate of the State of Washington, do hereby certify that the attached is ENGROSSED SUBSTITUTE SENATE BILL 6001 as passed by the Senate and the House of Representatives on the dates hereon set forth.

HUNTER G. GOODMAN
________________________________________    
Secretary
Approved April 4, 2014, 10:38 a.m., with the exception of Sections 201(5); 205(8); 206; 207(8); 208(13); 208(16); 213(7); 306(24); and 310(7)(a) and (b), page 66, line 29 through page 67, line 16, which are vetoed.



JAY INSLEE
________________________________________    
Governor of the State of Washington
 
FILED
April 4, 2014







Secretary of State
State of Washington


_____________________________________________ 

ENGROSSED SUBSTITUTE SENATE BILL 6001
_____________________________________________

AS AMENDED BY THE HOUSE

Passed Legislature - 2014 Regular Session
State of Washington63rd Legislature2014 Regular Session

By Senate Transportation (originally sponsored by Senators Eide and King; by request of Governor Inslee)

READ FIRST TIME 02/27/14.   



     AN ACT Relating to transportation funding and appropriations; amending RCW 47.28.030, 81.53.281, 82.70.020, 82.70.040, 82.70.050, 82.70.900, and 90.03.525; amending 2013 c 306 ss 101, 102, 103, 106, 107, 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 301, 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 401, 402, 404, 405, 406, 407, 517, 518, 519, and 603 (uncodified); adding new sections to chapter 306, Laws of 2013 (uncodified); making appropriations and authorizing expenditures for capital improvements; providing contingent effective dates; providing expiration dates; and declaring an emergency.

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

2013-2015 FISCAL BIENNIUM
GENERAL GOVERNMENT AGENCIES -- OPERATING

Sec. 101   2013 c 306 s 101 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF ARCHAEOLOGY AND HISTORIC PRESERVATION
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($435,000))
       $433,000

     The appropriation in this section is subject to the following conditions and limitations: The entire appropriation is provided solely for staffing costs to be dedicated to state transportation activities. Staff hired to support transportation activities must have practical experience with complex construction projects.

Sec. 102   2013 c 306 s 102 (uncodified) is amended to read as follows:
FOR THE UTILITIES AND TRANSPORTATION COMMISSION
Grade Crossing Protective Account--State
     Appropriation . . . . . . . . . . . . $504,000

     The appropriation in this section is subject to the following conditions and limitations:
     (1) Within existing resources, the commission must work with stakeholders to study the safety of equipment, driver qualifications, insurance levels, safety of operations, and the past accidents of charter party carriers providing railroad crew transportation.
     (2) The study must include a review of current practices regarding:
     (a) Driver qualifications, including a driver's experience and skill, physical condition, type or class of license, and any license suspensions or revocations;
     (b) Equipment safety;
     (c) Safety of operations;
     (d) Passenger safety;
     (e) Insurance coverage levels, including liability coverage, uninsured and underinsured motorist coverage, and property damage coverage; and
     (f) Safety complaints received by the commission.
     (3) This study must also include examination of past accidents involving vehicles regulated under chapter 81.61 RCW.
     (4) The commission must provide a report to the legislature by December 31, 2014, summarizing the findings to date, including recommendations for avoiding accidents in the future and providing recommended statutory changes that would enhance public safety.

Sec. 103   2013 c 306 s 103 (uncodified) is amended to read as follows:
FOR THE OFFICE OF FINANCIAL MANAGEMENT
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($1,641,000))
       $1,636,000
Puget Sound Ferry Operations Account -- State
     Appropriation . . . . . . . . . . . . $176,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($1,817,000))
       $1,812,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $932,000 of the motor vehicle account--state appropriation is provided solely for the office of financial management, from funds set aside out of statewide fuel taxes distributed to counties according to RCW 46.68.120(3), to contract with the Washington state association of counties to identify, analyze, evaluate, and implement county transportation performance measures associated with transportation system policy goals outlined in RCW 47.04.280. The Washington state association of counties, in cooperation with state agencies, must: Identify, analyze, and report on county transportation system preservation; identify, evaluate, and report on opportunities to streamline reporting requirements for counties; and evaluate project management tools to help improve project delivery at the county level.
     (2) $70,000 of the Puget Sound ferry operations account -- state appropriation is provided solely for the state's share of the marine salary survey.

Sec. 104   2013 c 306 s 106 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF AGRICULTURE
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($1,208,000))
       $1,203,000

     The appropriation in this section is subject to the following conditions and limitations:
     (1) $351,000 of the motor vehicle account -- state appropriation is provided solely for costs associated with the motor fuel quality program.
     (2) $857,000 of the motor vehicle account -- state appropriation is provided solely to test the quality of biofuel. The department must test fuel quality at the biofuel manufacturer, distributor, and retailer.

Sec. 105   2013 c 306 s 107 (uncodified) is amended to read as follows:
FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($529,000))
       $527,000

TRANSPORTATION AGENCIES -- OPERATING

     *Sec. 201   2013 c 306 s 201 (uncodified) is amended to read as follows:
FOR THE WASHINGTON TRAFFIC SAFETY COMMISSION
Highway Safety Account -- State Appropriation . . . . . . . . . . . . (($3,017,000))
       $3,027,000
Highway Safety Account -- Federal Appropriation . . . . . . . . . . . . (($40,699,000))
       $40,780,000
Highway Safety Account -- Private/Local Appropriation . . . . . . . . . . . . (($50,000))
       $118,000
School Zone Safety Account -- State Appropriation . . . . . . . . . . . . (($1,800,000))
       $1,700,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($45,566,000))
       $45,625,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The commission shall develop and implement, in collaboration with the Washington state patrol, a target zero team pilot program in Yakima and Spokane counties. The pilot program must demonstrate the effectiveness of intense, high visibility driving under the influence enforcement in Washington state. The commission shall apply to the national highway traffic safety administration for federal highway safety grants to cover the cost of the pilot program.
     (2) $20,000,000 of the highway safety account--federal appropriation is provided solely for federal funds that may be obligated to the commission pursuant to 23 U.S.C. Sec. 164 during the 2013-2015 fiscal biennium.
     (((4))) (3) The commission may continue to oversee pilot projects implementing the use of automated traffic safety cameras to detect speed violations within cities west of the Cascade mountains that have a population over one hundred ninety-five thousand. For the purposes of pilot projects in this subsection, no more than one automated traffic safety camera may be used to detect speed violations within any one jurisdiction.
     (a) The commission shall comply with RCW 46.63.170 in administering the pilot projects.
     (b) By January 1, 2015, any local authority that is operating an automated traffic safety camera to detect speed violations must provide a summary to the transportation committees of the legislature concerning the use of the cameras and data regarding infractions, revenues, and costs.
     (4)(a) The commission shall coordinate with counties to implement and administer a statewide yellow dot program that will provide a yellow dot window decal and yellow dot folder during the 2013-2015 fiscal biennium.
     (b) The commission may utilize available federal dollars and state dollars to implement and administer the program. The commission may accept donations and partnership funds through the state's existing donation process and deposit the funds to the highway safety account for the start-up and continued support of the program.
     (c) The commission, in conjunction with counties, shall maintain a separate web page that allows a person to download the yellow dot form to be placed in the yellow dot folder and lists the locations in which a person may pick up the yellow dot window decal and folder. The commission and counties may not collect any personal information. A person using the program is responsible for maintaining the information in the yellow dot folder. Participation in the program does not create any new or distinct obligation for emergency medical responders or law enforcement personnel to determine if there is a yellow dot folder in the motor vehicle or use the information contained in the yellow dot folder.
     (d) The commission may adopt rules necessary to implement this subsection.

     (5) During the 2013-2015 fiscal biennium, the commission shall continue to provide funding to counties for target zero task forces at the same annual allotment levels that were in place January 1, 2014. By December 1, 2014, the commission must report to the transportation committees of the legislature on any proposed changes in funding levels for target zero task forces in the 2015-2017 fiscal biennium.
     *Sec. 201 was partially vetoed. See message at end of chapter.

Sec. 202   2013 c 306 s 202 (uncodified) is amended to read as follows:
FOR THE COUNTY ROAD ADMINISTRATION BOARD
Rural Arterial Trust Account -- State Appropriation . . . . . . . . . . . . (($945,000))
       $939,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($2,186,000))
       $2,195,000
County Arterial Preservation Account -- State
     Appropriation . . . . . . . . . . . . (($1,456,000))
       $1,446,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($4,587,000))
       $4,580,000

Sec. 203   2013 c 306 s 203 (uncodified) is amended to read as follows:
FOR THE TRANSPORTATION IMPROVEMENT BOARD
Transportation Improvement Account -- State
     Appropriation . . . . . . . . . . . . (($3,804,000))
       $3,900,000

Sec. 204   2013 c 306 s 204 (uncodified) is amended to read as follows:
FOR THE JOINT TRANSPORTATION COMMITTEE
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($1,330,000))
       $1,575,000

     The appropriation in this section is subject to the following conditions and limitations:
     (1)(a) $325,000 of the motor vehicle account--state appropriation is for a study of transportation cost drivers and potential efficiencies to contain project costs and gain more value from investments in Washington state's transportation system. The goal is to enable the department of transportation to construct bridge and highway projects more quickly and to build and operate them at a lower cost, while ensuring that appropriate environmental and regulatory protections are maintained and a quality project is delivered. The joint transportation committee must convene an advisory panel to provide study guidance and discuss potential efficiencies and recommendations. The scope of the study must be limited to state-level policies and practices relating to the planning, design, permitting, construction, financing, and operation of department of transportation roadway and bridge projects. The study must:
     (i) Identify best practices;
     (ii) Identify inefficiencies in state policy or agency practice where changes may save money;
     (iii) Recommend changes to improve efficiency and save money; and
     (iv) Identify potential savings to be achieved by adopting changes in practice or policy.
     (b) The joint transportation committee shall issue a report of its findings to the house of representatives and senate transportation committees by December 31, 2013.
     (2) The joint transportation committee shall coordinate a work group comprised of the department of licensing, the department of revenue, county auditors or other agents, and subagents to identify possible issues relating to the administration of, compliance with, and enforcement of the existing statutory requirement for a person to provide an unexpired driver's license when registering a vehicle. The work group shall provide recommendations on how administration and enforcement may be modified, as needed, to address any identified issues, including whether statutory changes may be needed. A report presenting the recommendations must be presented to the house of representatives and senate transportation committees by December 31, 2013.
     (3) The joint transportation committee shall continue to convene a subcommittee for legislative oversight of the I-5/Columbia river crossing bridge replacement project. The Columbia river crossing legislative oversight subcommittee must be made up of six members: Two appointed by the cochairs of the senate transportation committee, two appointed by the chair and ranking member of the house of representatives transportation committee, one designee of the governor, and one citizen jointly appointed by the four members of the joint transportation executive committee. The citizen appointee must be a Washington state resident of the area served by the bridge. At least two of the legislative members must be from the legislative districts served by the bridge. In addition to reviewing project and financing information, the subcommittee must also coordinate with the Oregon legislative oversight committee for the Columbia river crossing bridge.
     (4) The joint transportation committee shall convene a work group to identify and evaluate internal refinance opportunities for the Tacoma Narrows bridge. The study must include a staff work group, including staff from the office of financial management, the transportation commission, the department of transportation, the office of the state treasurer, and the legislative transportation committees. The joint transportation committee shall issue a report of its findings to the house of representatives and the senate transportation committees by December 31, 2013.
     (5) The joint transportation committee shall study and review the use of surplus property proceeds to fund facility replacement projects, and the possibility of using the north central region as a pilot. The joint transportation committee shall consult with the department of transportation and the office of financial management regarding the department's current process for prioritizing and funding facility improvement and replacement projects.
     (6) $250,000 of the motor vehicle account--state appropriation is for the joint transportation committee to evaluate the current status of electric vehicle charging stations in Washington, and to make recommendations regarding potential business models for financially-sustainable electric vehicle charging networks and alternative roles for public and private sector participation in those business models. Public sector participation may include public financing, funding, facilitation, and other incentives to encourage installation of electric vehicle charging stations. In conducting the study, the committee must coordinate with the department of transportation and consult with local governments and stakeholders in the electric vehicle industry. The committee may also consult with users of electric vehicles and stakeholders representing manufacturers and operators of electric vehicle charging stations. The committee shall submit an interim report by December 31, 2014, and a final report by March 1, 2015.
     (7) The joint transportation committee shall coordinate a work group to review the existing titling and registration processes along with policies that county auditors, subagents, and agents must comply with when conducting title and registration transactions. The goal and related outcomes of the work group review are to provide recommendations to streamline processes, modernize policies, and identify potential information technology opportunities. Members of the work group shall only include county auditors, subagents, agents, and the department of licensing. The work group shall submit a report to the transportation committees of the legislature on or before December 1, 2014.
     (8) The joint transportation committee shall coordinate a work group comprised of representatives from the department of licensing, the Washington state traffic safety commission, and other stakeholders as deemed necessary, along with interested legislators, to develop parameters for and make recommendations regarding a pilot program that would allow students to meet traffic safety education requirements online. Additionally, the work group shall make recommendations related to requiring driver training to individuals between the ages of eighteen and twenty-four who have not previously passed a driver training education program or other methods of enhancing the safety of this high-risk group. The joint transportation committee shall issue a report of its findings to the transportation committees of the house of representatives and senate by December 1, 2014.

     *Sec. 205   2013 c 306 s 205 (uncodified) is amended to read as follows:
FOR THE TRANSPORTATION COMMISSION
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($2,947,000))
       $3,516,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . $112,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($3,059,000))
       $3,628,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Consistent with RCW 43.135.055, 47.60.290, and 47.60.315, during the 2013-2015 fiscal biennium, the legislature authorizes the transportation commission to periodically review and, if necessary, adjust the schedule of fares for the Washington state ferry system only in amounts not greater than those sufficient to generate the amount of revenue required by the biennial transportation budget. When adjusting ferry fares, the commission must consider input from affected ferry users by public hearing and by review with the affected ferry advisory committees, in addition to the data gathered from the current ferry user survey.
     (2) Consistent with RCW 43.135.055 and 47.46.100, during the 2013-2015 fiscal biennium, the legislature authorizes the transportation commission to periodically review and, if necessary, adjust the schedule of toll charges applicable to the Tacoma Narrows bridge only in amounts not greater than those sufficient to support (a) any required costs for operating and maintaining the toll bridge, including the cost of insurance, (b) any amount required by law to meet the redemption of bonds and applicable interest payments, and (c) repayment of the motor vehicle fund.
     (3) Consistent with RCW 43.135.055 and 47.56.880, during the 2013-2015 fiscal biennium, the legislature authorizes the transportation commission to set, periodically review, and, if necessary, adjust the schedule of toll charges applicable to the Interstate 405 express toll lanes.
     (4)
(a) $400,000 of the motor vehicle account--state appropriation is provided solely for the development of the business case for the transition to a road usage charge system as the basis for funding the state transportation system, from the current motor fuel tax system. The funds are provided for fiscal year 2014 only.
     (b) The legislature finds that the efforts started in the 2011-2013 fiscal biennium regarding the transition to a road usage charge system represent an important first step in the policy and conceptual development of potential alternative systems to fund transportation projects, but that the governance for the development needs clarification. The legislature also finds that significant amounts of research and public education are occurring in similar efforts in several states and that these efforts can and should be leveraged to advance the evaluation in Washington. The legislature intends, therefore, that the commission and its staff lead the policy development of the business case for a road usage charge system, with the goal of providing the business case to the governor and the legislative committees of the legislature in time for inclusion in the 2014 supplemental omnibus transportation appropriations act. The legislature intends for additional oversight in the business case development, with guidance from a steering committee as provided in chapter 86, Laws of 2012, augmented with participation by the joint transportation committee. The legislature further intends that the department of transportation continue to address administrative, technical, and conceptual operational issues related to road usage charge systems, and that the department serve as a resource for information gleaned from other states on this topic for the commission's efforts.
     (c) For the purposes of this subsection (((3))) (4), the commission shall:
     (i) Develop preliminary road usage charge policies that are necessary to develop the business case, as well as supporting research and data that will guide the potential application in Washington;
     (ii) Develop the preferred operational concept or concepts that reflect the preliminary policies;
     (iii) Evaluate the business case for the road usage charge system that would result from implementing the preliminary policies and preferred operational concept or concepts. The evaluation must assess likely financial outcomes if the system were to be implemented; and
     (iv) Identify and document policy and other issues that are deemed important to further refine the preferred operational concept or concepts and to gain public acceptance. These identified issues should form the basis for continued work beyond this funding cycle.
     (d) The commission shall convene a steering committee to guide the development of the business case. The membership must be the same as provided in chapter 86, Laws of 2012, except that the membership must also include the joint transportation committee executive members.
     (e) The commission shall submit a report of the business case to the governor and the transportation committees of the legislature by December 15, 2013. The report must also include a proposed budget and work plan for fiscal year 2015. A progress report must be submitted to the governor and the joint transportation committee by November 1, 2013, including a presentation to the joint transportation committee.
     (((4))) (5) $174,000 of the motor vehicle account--state appropriation is provided solely for the voice of Washington survey program. The funding must be utilized for continued program maintenance and two transportation surveys for the 2013-2015 fiscal biennium.
     (6)(a) $450,000 of the motor vehicle account--state appropriation is provided solely for a work plan to further develop the concept of a road usage charge system. The work plan must include: Refinement of initial policy analysis and development, a concept of operations that incorporates refined policy inputs, and a financial analysis evaluating the operational concept. The refinement of initial policy analysis and development funded under this subsection must be supplemented by the products of complementary policy refinement tasks delegated to the department of transportation in section 214 of this act and the office of the state treasurer in section 703 of this act. It is the intent of the legislature that consideration for potential planning for a pilot project and any risk analysis occur in the 2015 legislative session.
     (b)(i) For the purposes of the refinement of initial policy analysis and development, the work plan must consider phasing and staging of how a road usage charge would be implemented as it relates to the types of vehicles that would be subject to a road usage charge and the nature and manner of a transition period.
     (ii) For the purposes of this subsection (6)(b), the legislature intends that the commission focus its analysis by assuming that the exemptions under a road usage charge would be the same as those under the motor vehicle fuel and special fuel taxes. In addition, the commission must engage the road usage charge steering committee, which was reauthorized in chapter 306, Laws of 2013 for fiscal year 2014 and is hereby reauthorized in this act with the same membership, to continue in its role and, at a minimum, to guide the work specified in (a) of this subsection, including the following: Assessing and recommending the type of vehicles that would be subject to the road usage charge, and assessing and recommending the options for the timing and duration of the transition period. The steering committee shall report its findings and guidance to the commission by December 1, 2014.
     (c)(i) For the purposes of the development of the concept of operations, the development must incorporate the products of (b) of this subsection, and, to the extent practicable, the products of work conducted by the department of transportation in section 214 of this act and the office of the state treasurer in section 703 of this act.
     (ii) To reduce system development and operational costs, for road user charge options that rely on in-vehicle devices to record mileage, the work plan must recommend how the state can utilize the technology and back-office platforms that are scheduled to be provided by commercial account managers under the Oregon road usage charge program.
     (iii) In addition to a time permit and an odometer charge, the concept of operations recommendation must be developed to include a means for periodic payments based on mileage reporting utilizing methods other than onboard diagnostic in-vehicle devices.
     (d) The work plan and recommendations, along with a proposed work plan and budget for the 2015-2017 fiscal biennium, must be submitted by the commission to the transportation committees of the legislature by January 15, 2015.
     (7) Within existing resources, the commission shall undertake a study of the urban and rural financial and equity implications of a potential road usage charge system in Washington. The commission shall work with the department of transportation and the department of licensing to conduct this analysis. For any survey work that is considered, the commission should utilize the existing voice of Washington survey panel and budget to inform the study. The results must be presented to the governor and the legislature by January 15, 2015.

     (8) $125,000 of the motor vehicle account--state appropriation is provided solely to update the statewide transportation plan required under RCW 47.01.071(4) with the required federal elements to bring the plan into federal compliance. The legislature intends that a single, statewide transportation plan fulfill the requirements of RCW 47.01.071(4) and 47.06.040 and currently known federal planning requirements. The commission shall work collaboratively with the department of transportation to accomplish this intent. The commission shall submit the completed plan to the transportation committees of the legislature, and the department shall submit the completed plan to the United States department of transportation as required under 23 U.S.C. Sec. 135 by June 30, 2015. The commission shall provide a status update on this work to the transportation committees of the legislature by January 1, 2015.
     *Sec. 205 was partially vetoed. See message at end of chapter.

     *Sec. 206   2013 c 306 s 206 (uncodified) is amended to read as follows:
FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($904,000))
       $879,000
     *Sec. 206 was vetoed. See message at end of chapter.

     *Sec. 207   2013 c 306 s 207 (uncodified) is amended to read as follows:
FOR THE WASHINGTON STATE PATROL
State Patrol Highway Account -- State
     Appropriation . . . . . . . . . . . . (($370,354,000))
       $366,805,000
State Patrol Highway Account -- Federal
     Appropriation . . . . . . . . . . . . (($11,137,000))
       $11,067,000
State Patrol Highway Account -- Private/Local
     Appropriation . . . . . . . . . . . . (($3,591,000))
       $3,572,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . (($19,429,000))
       $19,265,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($273,000))
       $272,000
Ignition Interlock Device Revolving Account--State
     Appropriation . . . . . . . . . . . . (($573,000))
       $569,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($405,357,000))
       $401,550,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The Washington state patrol shall collaborate with the Washington traffic safety commission on the target zero team pilot program referenced in section 201 of this act.
     (2) During the 2013-2015 fiscal biennium, the Washington state patrol shall relocate its data center to the state data center in Olympia. The Washington state patrol shall work with the department of enterprise services to negotiate the lease termination agreement for the current data center site.
     (3) Washington state patrol officers engaged in off-duty uniformed employment providing traffic control services to the department of transportation or other state agencies may use state patrol vehicles for the purpose of that employment, subject to guidelines adopted by the chief of the Washington state patrol. The Washington state patrol must be reimbursed for the use of the vehicle at the prevailing state employee rate for mileage and hours of usage, subject to guidelines developed by the chief of the Washington state patrol.
     (4) $573,000 of the ignition interlock device revolving account--state appropriation is provided solely for the ignition interlock program at the Washington state patrol to provide funding for two staff to work and provide support for the program in working with manufacturers, service centers, technicians, and participants in the program.
     (5) $370,000 of the state patrol highway account--state appropriation is provided solely for costs associated with the pilot program described under section 216(((6))) (5) of this act. The Washington state patrol may incur costs related only to the assignment of cadets and necessary computer equipment and to the reimbursement of the department of transportation for contract costs. The appropriation in this subsection must be funded from the portion of the automated traffic safety camera infraction fines deposited into the state patrol highway account; however, if the fines deposited into the state patrol highway account from automated traffic safety camera infractions do not reach three hundred seventy thousand dollars, the department of transportation shall remit funds necessary to the Washington state patrol to ensure the completion of the pilot program. The Washington state patrol may not incur overtime as a result of this pilot program. The Washington state patrol shall not assign troopers to operate or deploy the pilot program equipment used in roadway construction zones.
     (6) The cost allocation for any costs incurred for the facilities at the Olympia, Washington airport used for the Washington state patrol aviation section must be split evenly between the state patrol highway account and the general fund.
     (7) The Washington state patrol shall work with the state interoperability executive committee to compile a list of recent studies evaluating the potential savings and benefits of consolidating law enforcement and emergency dispatching centers and report to the joint transportation committee by December 1, 2014, on the findings and recommendations of those studies. As part of this study, the Washington state patrol must look for potential efficiencies within state government.
     (8) The Washington state patrol shall coordinate and support local law enforcement in Pierce county in providing traffic control on the highways and other activities within current budget during the United States open national golf championship in June 2015.
     *Sec. 207 was partially vetoed. See message at end of chapter.

     *Sec. 208   2013 c 306 s 208 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF LICENSING
Marine Fuel Tax Refund Account -- State
     Appropriation . . . . . . . . . . . . $34,000
Motorcycle Safety Education Account -- State
     Appropriation . . . . . . . . . . . . (($4,409,000))
       $4,396,000
State Wildlife Account -- State Appropriation . . . . . . . . . . . . (($885,000))
       $867,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . (($156,679,000))
       $158,505,000
Highway Safety Account -- Federal Appropriation . . . . . . . . . . . . (($4,392,000))
       $4,363,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($76,819,000))
       $81,352,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $467,000
Motor Vehicle Account -- Private/Local Appropriation . . . . . . . . . . . . $1,544,000
Ignition Interlock Device Revolving Account -- State
     Appropriation . . . . . . . . . . . . (($2,656,000))
       $2,871,000
Department of Licensing Services Account -- State
     Appropriation . . . . . . . . . . . . (($5,959,000))
       $5,983,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($253,844,000))
       $260,382,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $1,235,000 of the highway safety account--state appropriation is provided solely for the implementation of chapter . . . (Substitute House Bill No. 1752), Laws of 2013 (requirements for the operation of commercial motor vehicles in compliance with federal regulations). If chapter . . . (Substitute House Bill No. 1752), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.
     (2) $1,000,000 of the highway safety account--state appropriation is provided solely for information technology field system modernization.
     (3) $5,286,000 of the highway safety account--state appropriation is provided solely for business and technology modernization.
     (4) $2,355,000 of the motor vehicle account--state appropriation is provided solely for replacing prorate and fuel tax computer systems used to administer interstate licensing and the collection of fuel tax revenues.
     (5) $1,491,000 of the highway safety account--state appropriation is provided solely for the implementation of an updated central issuance system.
     (6)
$201,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Substitute Senate Bill No. 5152), Laws of 2013 (Sounders FC and Seahawks license plates). If chapter . . . (Substitute Senate Bill No. 5152), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.
     (((4))) (7) $425,000 of the highway safety account--state appropriation is provided solely for the implementation of chapter . . . (Substitute Senate Bill No. 5182), Laws of 2013 (vehicle owner information). If chapter . . . (Substitute Senate Bill No. 5182), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.
     (((5) $172,000 of the highway safety account--state appropriation is provided solely for the implementation of chapter . . . (Senate Bill No. 5775), Laws of 2013 (veterans/drivers' licenses). If chapter . . . (Senate Bill No. 5775), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.
     (6) $652,000
)) (8) $289,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Second Engrossed Substitute Senate Bill No. 5785), Laws of ((2013)) 2014 (license plates). If chapter . . . (Second Engrossed Substitute Senate Bill No. 5785), Laws of ((2013)) 2014 is not enacted by June 30, ((2013)) 2014, the amount provided in this subsection lapses.
     (((7) $78,000 of the motor vehicle account--state appropriation and $3,707,000 of the highway safety account--state appropriation are provided solely for the implementation of chapter . . . (Engrossed Substitute Senate Bill No. 5857), Laws of 2013 (vehicle-related fees). If chapter . . . (Engrossed Substitute Senate Bill No. 5857), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.
     (8)
)) (9) The appropriation in this section reflects the department charging an amount sufficient to cover the full cost of providing the data requested under RCW 46.12.630(1)(b).
     (((9))) (10)(a) The department must convene a work group to examine the use of parking placards and special license plates for persons with disabilities and develop a strategic plan for ending any abuse. In developing this plan, the department must work with the department of health, disabled citizen advocacy groups, and representatives from local government.
     (b) The work group must be composed of no more than two representatives from each of the entities listed in (a) of this subsection. The work group may, when appropriate, consult with any other public or private entity in order to complete the strategic plan.
     (c) The strategic plan must include:
     (i) Oversight measures to ensure that parking placards and special license plates for persons with disabilities are being properly issued, including: (A) The entity responsible for coordinating a randomized review of applications for special parking privileges; (B) a volunteer panel of medical professionals to conduct such reviews; (C) a means to protect the anonymity of both the medical professional conducting a review and the medical professional under review; (D) a means to protect the privacy of applicants by removing any personally identifiable information; and (E) possible sanctions against a medical professional for repeated improper issuances of parking placards or special license plates for persons with disabilities, including those sanctions listed in chapter 18.130 RCW; and
     (ii) The creation of a publicly accessible system in which the validity of parking placards and special license plates for persons with disabilities may be verified. This system must not allow the public to access any personally identifiable information or protected health information of a person who has been issued a parking placard or special license plate.
     (d) The work group must convene by July 1, 2013, and terminate by December 1, 2013.
     (e) By December 1, 2013, the work group must deliver to the legislature and the appropriate legislative committees the strategic plan required under this subsection, together with its findings, recommendations, and any necessary draft legislation in order to implement the strategic plan.
     (((10))) (11) $3,082,000 of the highway safety account--state appropriation is provided solely for exam and licensing activities, including the workload associated with providing driver record abstracts, and is subject to the following additional conditions and limitations:
     (a) The department may furnish driving record abstracts only to those persons or entities expressly authorized to receive the abstracts under Title 46 RCW;
     (b) The department may furnish driving record abstracts only for an amount that does not exceed the specified fee amounts in RCW 46.52.130 (2)(e)(v) and (4); and
     (c) The department may not enter into a contract, or otherwise participate in any arrangement, with a third party or other state agency for any service that results in an additional cost, in excess of the fee amounts specified in RCW 46.52.130 (2)(e)(v) and (4), to statutorily authorized persons or entities purchasing a driving record abstract.
     (12) $229,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Engrossed Second Substitute House Bill No. 1129), Laws of 2014 (ferry vessel replacement). If chapter . . . (Engrossed Second Substitute House Bill No. 1129), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
     (13) $96,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Engrossed Second Substitute House Bill No. 1902), Laws of 2014 (intermittent-use trailer license plates). If chapter . . . (Engrossed Second Substitute House Bill No. 1902), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
     (14) $42,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (House Bill No. 2100), Laws of 2014 (Seattle University license plates). If chapter . . . (House Bill No. 2100), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
     (15) $46,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (House Bill No. 2700), Laws of 2014 (breast cancer awareness license plates). If chapter . . . (House Bill No. 2700), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.

     (16) $42,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Engrossed House Bill No. 2752), Laws of 2014 (Washington state tree license plates). If chapter . . . (Engrossed House Bill No. 2752), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
     (17) $32,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (House Bill No. 2741), Laws of 2014 (initial vehicle registration). If chapter . . . (House Bill No. 2741), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
     (18) Within existing resources, the department must convene a work group that includes, at a minimum, representatives from the department of transportation, the trucking industry, manufacturers of compressed natural gas and liquefied natural gas, and any other stakeholders as deemed necessary, for the following purposes:
     (a) To evaluate the annual license fee in lieu of fuel tax under RCW 82.38.075 to determine a fee that more closely represents the average consumption of vehicles by weight and to make recommendations to the transportation committees of the legislature by December 1, 2014, on an updated fee schedule; and
     (b) To develop a transition plan to move vehicles powered by liquefied natural gas and compressed natural gas from the annual license fee in lieu of fuel tax to the fuel tax under RCW 82.38.030. The transition plan must incorporate stakeholder feedback and must include draft legislation and cost and revenue estimates. The transition plan must be submitted to the transportation committees of the legislature by December 1, 2015.
     (c) This subsection takes effect if both chapter . . . (Engrossed Substitute Senate Bill No. 6440), Laws of 2014 (compressed natural gas and liquefied natural gas) and chapter . . . (Substitute House Bill No. 2753), Laws of 2014 (compressed natural gas and liquefied natural gas) are not enacted by June 30, 2014.
     (19) $36,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Substitute Senate Bill No. 5467), Laws of 2014 (vehicle owner list furnishment requirements). If chapter . . . (Substitute Senate Bill No. 5467), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
     (20) The department must convene a work group to study the issue of regulating tow truck operators that are not licensed as registered tow truck operators under chapter 46.55 RCW. The work group must examine the advisability of regulating such operators, including any potential benefits to public safety, and possible methodologies for accomplishing this regulation. The work group must include the department, representatives of the Washington state patrol, organized groups of registered tow truck operators, and automobile clubs. The work group may also include hulk haulers, wreckers, transporters, and other stakeholders relating to the issue of unregulated towing for monetary compensation. The work group shall convene as necessary and report its recommendations and draft legislation to the transportation committees of the legislature by December 1, 2014.
     (21) The department when modernizing its computer systems must place personal and company data elements in separate data fields to allow the department to select discrete data elements when providing information or data to persons or entities outside the department. This requirement must be included as part of the systems design in the department's business and technology modernization. A person's photo, social security number, or medical information must not be made available through public disclosure or data being provided under RCW 46.12.630 or 46.12.635.

     *Sec. 208 was partially vetoed. See message at end of chapter.

Sec. 209   2013 c 306 s 209 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TOLL OPERATIONS AND MAINTENANCE -- PROGRAM B
High-Occupancy Toll Lanes Operations Account -- State
     Appropriation . . . . . . . . . . . . (($1,851,000))
       $1,942,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($509,000))
       $514,000
State Route Number 520 Corridor Account -- State
     Appropriation . . . . . . . . . . . . (($32,419,000))
       $34,267,000
State Route Number 520 Civil Penalties Account -- State
     Appropriation . . . . . . . . . . . . (($4,169,000))
       $4,156,000
Tacoma Narrows Toll Bridge Account -- State
     Appropriation . . . . . . . . . . . . (($23,730,000))
       $25,007,000
Puget Sound Ferry Operations Account--State
     Appropriation . . . . . . . . . . . . $250,000
Interstate 405 Express Toll Lanes Operations
     Account--State Appropriation . . . . . . . . . . . . $2,019,000

          TOTAL APPROPRIATION . . . . . . . . . . . . (($62,928,000))
       $68,155,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1)(a) The legislature finds that the department's tolling division has expanded greatly in recent years to address the demands of administering several newly tolled facilities using emerging toll collection technologies. The legislature intends for the department to continue its good work in administering the tolled facilities of the state, while at the same time implementing controls and processes to ensure the efficient and judicious administration of toll payer dollars.
     (b) The legislature finds that the department has undertaken a cost-of-service study in the winter and spring of 2013 for the purposes of identifying in detail the costs of operating and administering tolling on state route number 520, state route number 167 high-occupancy toll lanes, and the Tacoma Narrows bridge. The purpose of the study is to provide results to establish a baseline by which future activity may be compared and opportunities identified for cost savings and operational efficiencies. In addition, the legislature finds that the state auditor has undertaken a performance audit of the department's contract for the customer service center and back office processing of tolling transactions. The audit findings, which are expected to include lessons learned, are due in late spring 2013.
     (c) Using the results of the cost-of-service study and the state audit as a basis, the department shall conduct a review of operations using lean management principles in order to eliminate inefficiencies and redundancies, incorporate lessons learned, and identify opportunities to conduct operations more efficiently and effectively. Within current statutory and budgetary tolling policy, the department shall use the results of the review to improve operations in order to conduct toll operations within the appropriations provided in subsections (2) through (4) of this section. The department shall submit the review, along with the status of and plans for the implementation of review recommendations, to the office of financial management and the house of representatives and senate transportation committees by October 15, 2013.
     (2) (($10,482,000)) $10,343,000 of the Tacoma Narrows toll bridge account--state appropriation, (($17,056,000)) $16,534,000 of the state route number 520 corridor account--state appropriation, (($1,226,000)) $1,217,000 of the high-occupancy toll lanes operations account--state appropriation, and (($509,000)) $514,000 of the motor vehicle account--state appropriation are provided solely for nonvendor costs of administering toll operations, including the costs of: Staffing the division, consultants and other personal service contracts required for technical oversight and management assistance, insurance, payments related to credit card processing, transponder purchases and inventory management, facility operations and maintenance, and other miscellaneous nonvendor costs.
     (3) (($10,907,000)) $11,265,000 of the Tacoma Narrows toll bridge account--state appropriation, (($9,363,000)) $9,730,000 of the state route number 520 corridor account--state appropriation, and $625,000 of the high-occupancy toll lanes operations account--state appropriation are provided solely for vendor-related costs of operating tolled facilities, including the costs of: The customer service center; cash collections on the Tacoma Narrows bridge; electronic payment processing; and toll collection equipment maintenance, renewal, and replacement.
     (4) $1,300,000 of the Tacoma Narrows toll bridge account--state appropriation and $6,000,000 of the state route number 520 corridor account--state appropriation are provided solely for the purposes of addressing unforeseen operations and maintenance costs on the Tacoma Narrows bridge and the state route number 520 bridge, respectively. The office of financial management shall place the amounts provided in this section, which represent a portion of the required minimum fund balance under the policy of the state treasurer, in unallotted status. The office may release the funds only when it determines that all other funds designated for operations and maintenance purposes have been exhausted.
     (5) (($4,169,000)) $4,156,000 of the state route number 520 civil penalties account -- state appropriation and $1,039,000 of the Tacoma Narrows toll bridge account -- state appropriation are provided solely for expenditures related to the toll adjudication process. The department shall report on the civil penalty process to the office of financial management and the house of representatives and senate transportation committees by the end of each calendar quarter. The reports must include a summary table for each toll facility that includes: The number of notices of civil penalty issued; the number of recipients who pay before the notice becomes a penalty; the number of recipients who request a hearing and the number who do not respond; workload costs related to hearings; the cost and effectiveness of debt collection activities; and revenues generated from notices of civil penalty.
     (6) The Tacoma Narrows toll bridge account--state appropriation in this section reflects reductions in management costs of $1,235,000.
     (7) The department shall make detailed quarterly expenditure reports available to the transportation commission and to the public on the department's web site using current department resources. The reports must include a summary of toll revenue by facility on all operating toll facilities and high occupancy toll lane systems, and an itemized depiction of the use of that revenue.
     (8) The department shall make detailed quarterly reports to the governor and the transportation committees of the legislature on the use of consultants in the tolling program. The reports must include the name of the contractor, the scope of work, the type of contract, timelines, deliverables, any new task orders, and any extensions to existing consulting contracts.
     (9)(a) $250,000 of the Puget Sound ferry operations account--state appropriation is provided solely for the development of a plan to integrate and transition customer service, reservation, and payment systems currently provided by the marine division to ferry users into the statewide tolling customer service center.
     (b)(i) The department shall develop a plan that addresses:
     (A) A phased implementation approach, beginning with "Good To Go" as a payment option for ferry users;
     (B) The feasibility, schedule, and cost of creating a single account-based system for toll road and ferry users;
     (C) Transitioning customer service currently provided by the marine division to the statewide tolling customer service center; and
     (D) Transitioning existing and planned ferry reservation system support from the marine division to the statewide tolling customer service center.
     (ii) The plan must be provided to the office of financial management and the transportation committees of the legislature by January 14, 2014.
     (10)(a) $2,019,000 of the Interstate 405 express toll lanes operations account--state appropriation is provided solely for operating and maintenance costs of the Interstate 405 express toll lanes program, including staff costs related to operating an additional toll facility, consulting support for operations, purchase of transponders, costs related to adjudication, credit card fees, printing and postage, and customer service center support. Of the amount provided in this subsection, $519,000 of the Interstate 405 express toll lanes operations account--state appropriation must be placed in unallotted status by the office of financial management until a plan to begin tolling the Interstate 405 express toll lanes during the summer of 2015 is finalized and approved by the office of financial management, in consultation with the chairs and ranking member of the transportation committees of the legislature.
     (b) The funds provided in (a) of this subsection are provided through a transfer from the motor vehicle account--state appropriation in section 407(19) of this act. These funds are a loan to the Interstate 405 express toll lanes operations account--state appropriation, and the legislature assumes that these funds will be reimbursed to the motor vehicle account at a later date when the Interstate 405 express toll lanes are operational.
     (11) $1,060,000 of the Tacoma narrows toll bridge account--state appropriation, $2,003,000 of the state route number 520 corridor account--state appropriation, and $99,000 of the high occupancy toll lanes operations account--state appropriation are provided solely in anticipation of, and to prepare for, the procurement of a new tolling customer service center. Of the amounts provided in this subsection, $480,000 of the Tacoma narrows toll bridge account--state appropriation, $906,000 of the state route number 520 corridor account--state appropriation, and $45,000 of the high occupancy toll lanes operations account--state appropriation must be placed in unallotted status by the office of financial management until a procurement plan is finalized and approved by the office of financial management, in consultation with the chairs and ranking member of the transportation committees of the legislature. Beginning July 1, 2014, the department shall report quarterly to the governor, legislature, and state auditor on: (a) The department's effort to mitigate risk to the state, (b) the development of a request for proposals, and (c) the overall progress towards procuring a new tolling customer service center.


Sec. 210   2013 c 306 s 210 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- INFORMATION TECHNOLOGY -- PROGRAM C
Transportation Partnership Account -- State
     Appropriation . . . . . . . . . . . . $1,460,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($68,773,000))
       $65,936,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($363,000))
       $2,883,000
Transportation 2003 Account (Nickel Account) -- State
     Appropriation . . . . . . . . . . . . $1,460,000
Puget Sound Ferry Operations Account--State
     Appropriation . . . . . . . . . . . . $263,000

          TOTAL APPROPRIATION . . . . . . . . . . . . (($72,056,000))
       $72,002,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $290,000 of the motor vehicle account--state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.
     (2) $1,460,000 of the transportation partnership account--state appropriation and $1,460,000 of the transportation 2003 account (nickel account)--state appropriation are provided solely for maintaining the department's project management reporting system.

Sec. 211   2013 c 306 s 211 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- FACILITY MAINTENANCE, OPERATIONS, AND CONSTRUCTION -- PROGRAM D--OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($26,251,000))
       $26,114,000

     The appropriation in this section is subject to the following conditions and limitations: $850,000 of the motor vehicle account--state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.

Sec. 212   2013 c 306 s 212 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- AVIATION -- PROGRAM F
Aeronautics Account -- State Appropriation . . . . . . . . . . . . (($7,361,000))
       $7,909,000
Aeronautics Account -- Federal Appropriation . . . . . . . . . . . . $2,150,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($9,511,000))
       $10,059,000

     The appropriations in this section are subject to the following conditions and limitations: (($3,500,000)) $4,065,000 of the aeronautics account--state appropriation is provided solely for airport investment studies and the airport aid grant program, which provides competitive grants to public airports for pavement, safety, maintenance, planning, and security.

     *Sec. 213   2013 c 306 s 213 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- PROGRAM DELIVERY MANAGEMENT AND SUPPORT -- PROGRAM H
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($47,607,000))
       $48,687,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $500,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . $250,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($48,357,000))
       $49,437,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $4,423,000 of the motor vehicle account -- state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.
     (2) The real estate services division of the department must recover the cost of its efforts from sale proceeds and fund additional future sales from those proceeds.
     (3) The legislature recognizes that the Dryden pit site (WSDOT Inventory Control (IC) No. 2-04-00103) is unused state-owned real property under the jurisdiction of the department, and that the public would benefit significantly from the complete enjoyment of the natural scenic beauty and recreational opportunities available at the site. Therefore, pursuant to RCW 47.12.080, the legislature declares that transferring the property to the department of fish and wildlife for recreational use and fish and wildlife restoration efforts is consistent with the public interest in order to preserve the area for the use of the public and the betterment of the natural environment. The department shall work with the department of fish and wildlife and transfer and convey the Dryden pit site to the department of fish and wildlife as-is for an adjusted fair market value reflecting site conditions, the proceeds of which must be deposited in the motor vehicle fund. The department is not responsible for any costs associated with the cleanup or transfer of this property. This subsection expires June 30, 2014.
     (4) The legislature recognizes that the trail known as the Apple Capital Loop, and its extensions, serve to separate motor vehicle traffic from pedestrians and bicyclists, increasing motor vehicle safety on existing state route number 28. Consistent with chapter 47.30 RCW and pursuant to RCW 47.12.080, the legislature declares that transferring portions of WSDOT Inventory Control (IC) Nos. 2-09-04537 and 2-09-04569 to Douglas county and the city of East Wenatchee is consistent with the public interest. The legislature directs the department to transfer the property to Douglas county and the city of East Wenatchee. The department must be paid fair market value for any portions of the transferred real property that is later abandoned, vacated, or ceases to be publicly maintained for trail purposes. Douglas county and the city of East Wenatchee must agree to accept responsibility for trail segments within their respective jurisdictions and sign an agreement with the state that the transfer of these parcels to their respective jurisdictions extinguishes any state obligations to improve, maintain, or be in any way responsible for these assets. This subsection expires June 30, 2014.
     (5) The legislature recognizes that the SR 20/Cook Road realignment and extension project in the city of Sedro-Woolley will enhance the state and local highway systems by providing a more direct route from state route number 20 and state route number 9 to Interstate 5, and will reduce traffic on state route number 20 and state route number 9, improving the capacity of each route. Furthermore, the legislature declares that certain portions of the department's property held for highway purposes located primarily to the north and west of state route number 20, between state route number 20 to the south and F and S Grade Road to the north, in the incorporated limits of Sedro-Woolley in Skagit county, can help facilitate completion of the project. Therefore, consistent with RCW 47.12.063, 47.12.080, and 47.12.120, it is the intent of the legislature that the department sell, transfer, or lease, as appropriate, to the city of Sedro-Woolley only those portions of the property necessary to construct the project, including necessary staging areas. However, any staging areas should revert to the department within three years of completion of the project.
     (6) Within the amounts provided in this section, the department shall create a quality assurance position. This position must provide independent project quality assurance validation and ensure that quality assurance audit functions are accountable at the highest level of the organization.
     (7) To maximize available resources, the department's efforts to eliminate fish passage barriers caused by state roads and highways must be based on the principle of maximizing habitat recovery through a coordinated investment strategy that, to the maximum extent practical and allowable, prioritizes opportunities: To correct multiple fish barriers in whole streams rather than through individual, isolated projects; to coordinate with other entities sponsoring barrier removals, such as regional fisheries enhancement groups, in a manner that achieves the greatest cost savings to all parties; and to eliminate barriers located furthest downstream in a stream system. The department must also recognize that many of the barriers owned by the state are located in the same stream systems as barriers that are owned by cities and counties with limited financial resources for correction and that state/local partnership opportunities should be sought to address these barriers. This subsection takes effect if chapter . . . (Second Substitute House Bill No. 2251), Laws of 2014 is not enacted by June 30, 2014.
     (8) $1,453,000 of the motor vehicle account--state appropriation is provided solely to support increased departmental efforts to dispose of surplus property as directed in subsection (2) of this section. These additional funds are expected to result in up to $5,000,000 per fiscal biennium in additional revenues through increasing the sale of surplus property. By December 1, 2014, the department shall report to the governor and the chairs and ranking members of the senate and house of representatives transportation committees on the number of surplus property parcels sold and the amount of revenue generated from those sales during 2014.
     *Sec. 213 was partially vetoed. See message at end of chapter.

Sec. 214   2013 c 306 s 214 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- ECONOMIC PARTNERSHIPS -- PROGRAM K
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($570,000))
       $589,000

     The appropriation in this section is subject to the following conditions and limitations:
     (1) The legislature finds that the efforts started in the 2011-2013 fiscal biennium regarding the transition to a road usage charge system represent an important first step in the policy and conceptual development of potential alternative systems to fund transportation projects, but that the governance for the development needs clarification. The legislature also finds that significant amounts of research and public education are occurring in similar efforts in several states and that these efforts can and should be leveraged to advance the evaluation in Washington. The legislature intends, therefore, that the transportation commission and its staff lead the policy development of the business case for a road usage charge system, with the goal of providing the business case to the governor and the legislative committees of the legislature in time for inclusion in the 2014 supplemental omnibus transportation appropriations act. The legislature intends for additional oversight in the business case development, with guidance from a steering committee as provided in chapter 86, Laws of 2012 for the transportation commission, augmented with participation by the joint transportation committee. The legislature further intends that, through the economic partnerships program, the department continue to address administrative, technical, and conceptual operational issues related to road usage charge systems, and that the department serve as a resource for information gleaned from other states on this topic for the transportation commission's efforts.
     (2) The economic partnerships program must continue to explore retail partnerships at state-owned park-and-ride facilities, as authorized in RCW 47.04.295.
     (3) The department, in collaboration with the transportation commission, shall work with the office of the state treasurer and the state's bond counsel to explore legal approaches for ensuring that any reduction, refunding, crediting, or repeal of the motor vehicle fuel tax, in whole or in part, can be accomplished without unlawfully impairing the legal rights of motor vehicle fuel tax bond holders. The results of this work must be shared with the transportation committees of the legislature and the office of financial management by September 1, 2014.
     (4) $21,000 of the motor vehicle account--state appropriation is provided solely as matching funds for the department to partner with other transportation agencies located in the western region of North America to develop strategies and methods for reporting, collecting, crediting, and remitting road usage charges resulting from inter-jurisdictional travel. At least one partnering jurisdiction must share a common border with Washington. The results of this work must be reported to the governor, the transportation commission, and the transportation committees of the legislature by September 1, 2014.

Sec. 215   2013 c 306 s 215 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- HIGHWAY MAINTENANCE -- PROGRAM M
Highway Safety Account -- State Appropriation . . . . . . . . . . . . $10,000,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($390,040,000))
       $391,358,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $7,000,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($407,040,000))
       $408,358,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) (($377,779,000 of the motor vehicle account--state appropriation and $10,000,000 of the highway safety account--state appropriation are provided solely for the maintenance program to achieve specific levels of service on the thirty maintenance targets listed by statewide priority in LEAP Transportation Document 2013-4 as developed April 23, 2013. Beginning in February 2014, the department shall report to the legislature annually on its updated maintenance accountability process targets and whether or not the department was able to achieve its targets.
     (2) $8,450,000
)) $10,910,000 of the motor vehicle account--state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.
     (((3) $1,305,000)) (2) $2,605,000 of the motor vehicle account--state appropriation is provided solely for utility fees assessed by local governments as authorized under RCW 90.03.525 for the mitigation of storm water runoff from state highways.
     (((4))) (3) The department shall submit a budget decision for the 2014 legislative session package that details all costs associated with utility fees assessed by local governments as authorized under RCW 90.03.525.
     (((5))) (4) $50,000 of the motor vehicle account--state appropriation is provided solely for clearing and pruning dangerous trees along state route number 542 between mile markers 43 and 48 to prevent safety hazards and delays.
     (((6))) (5) $2,277,000 of the motor vehicle account--state appropriation is provided solely to replace or rehabilitate critical equipment needed to perform snow and ice removal activities and roadway maintenance. These funds may not be used to purchase passenger cars as defined in RCW 46.04.382.

Sec. 216   2013 c 306 s 216 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRAFFIC OPERATIONS -- PROGRAM Q -- OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($50,504,000))
       $50,055,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $2,050,000
Motor Vehicle Account -- Private/Local Appropriation . . . . . . . . . . . . $250,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($52,804,000))
       $52,355,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $6,000,000 of the motor vehicle account -- state appropriation is provided solely for low-cost enhancements. The department shall give priority to low-cost enhancement projects that improve safety or provide congestion relief. The department shall prioritize low-cost enhancement projects on a statewide rather than regional basis. By September 1st of each even-numbered year, the department shall provide a report to the legislature listing all low-cost enhancement projects prioritized on a statewide rather than regional basis completed in the prior year.
     (2) $9,000,000 of the motor vehicle account--state appropriation is provided solely for the department's incident response program.
     (3) During the 2013-2015 fiscal biennium, the department shall continue a pilot program that expands private transportation providers' access to high occupancy vehicle lanes. Under the pilot program, when the department reserves a portion of a highway based on the number of passengers in a vehicle, the following vehicles must be authorized to use the reserved portion of the highway if the vehicle has the capacity to carry eight or more passengers, regardless of the number of passengers in the vehicle: (a) Auto transportation company vehicles regulated under chapter 81.68 RCW; (b) passenger charter carrier vehicles regulated under chapter 81.70 RCW, except marked or unmarked stretch limousines and stretch sport utility vehicles as defined under department of licensing rules; (c) private nonprofit transportation provider vehicles regulated under chapter 81.66 RCW; and (d) private employer transportation service vehicles. For purposes of this subsection, "private employer transportation service" means regularly scheduled, fixed-route transportation service that is offered by an employer for the benefit of its employees. Nothing in this subsection is intended to authorize the conversion of public infrastructure to private, for-profit purposes or to otherwise create an entitlement or other claim by private users to public infrastructure.
     (4) The department shall work with the cities of Lynnwood and Edmonds to provide traffic light synchronization on state route number 524.
     (((6))) (5) The department, in consultation with the Washington state patrol, must continue a pilot program for the state patrol to issue infractions based on information from automated traffic safety cameras in roadway construction zones on state highways. For the purpose of this pilot program, during the 2013-2015 fiscal biennium, a roadway construction zone includes areas where public employees or private contractors may be present or where a driving condition exists that would make it unsafe to drive at higher speeds, such as, when the department is redirecting or realigning lanes on any public roadway pursuant to ongoing construction. The department shall use the following guidelines to administer the program:
     (a) Automated traffic safety cameras may only take pictures of the vehicle and vehicle license plate and only while an infraction is occurring. The picture must not reveal the face of the driver or of passengers in the vehicle;
     (b) The department shall plainly mark the locations where the automated traffic safety cameras are used by placing signs on locations that clearly indicate to a driver that he or she is entering a roadway construction zone where traffic laws are enforced by an automated traffic safety camera;
     (c) Notices of infractions must be mailed to the registered owner of a vehicle within fourteen days of the infraction occurring;
     (d) The owner of the vehicle is not responsible for the violation if the owner of the vehicle, within fourteen days of receiving notification of the violation, mails to the patrol, a declaration under penalty of perjury, stating that the vehicle involved was, at the time, stolen or in the care, custody, or control of some person other than the registered owner, or any other extenuating circumstances;
     (e) For purposes of the 2013-2015 fiscal biennium pilot program, infractions detected through the use of automated traffic safety cameras are not part of the registered owner's driving record under RCW 46.52.101 and 46.52.120. Additionally, infractions generated by the use of automated traffic safety cameras must be processed in the same manner as parking infractions for the purposes of RCW 3.50.100, 35.20.220, 46.16A.120, and 46.20.270(3). However, the amount of the fine issued under this subsection (((6))) (5) for an infraction generated through the use of an automated traffic safety camera is one hundred thirty-seven dollars. The court shall remit thirty-two dollars of the fine to the state treasurer for deposit into the state patrol highway account; and
     (f) If a notice of infraction is sent to the registered owner and the registered owner is a rental car business, the infraction must be dismissed against the business if it mails to the patrol, within fourteen days of receiving the notice, a declaration under penalty of perjury of the name and known mailing address of the individual driving or renting the vehicle when the infraction occurred. If the business is unable to determine who was driving or renting the vehicle at the time the infraction occurred, the business must sign a declaration under penalty of perjury to this effect. The declaration must be mailed to the patrol within fourteen days of receiving the notice of traffic infraction. Timely mailing of this declaration to the issuing agency relieves a rental car business of any liability under this section for the notice of infraction. A declaration form suitable for this purpose must be included with each automated traffic safety camera infraction notice issued, along with instructions for its completion and use.
     (((7))) (6) $102,000 of the motor vehicle account--state appropriation is provided solely to replace or rehabilitate critical equipment needed to perform traffic control. These funds may not be used to purchase passenger cars as defined in RCW 46.04.382.

Sec. 217   2013 c 306 s 217 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRANSPORTATION MANAGEMENT AND SUPPORT -- PROGRAM S
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($27,281,000))
       $27,079,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . (($30,000))
       $280,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($973,000))
       $1,131,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($28,284,000))
       $28,490,000

     The appropriations in this section are subject to the following conditions and limitations: $200,000 of the motor vehicle account--state appropriation is provided solely for enhanced disadvantaged business enterprise outreach to increase the pool of disadvantaged businesses available for department contracts. The department must submit a status report on disadvantaged business enterprise outreach to the transportation committees of the legislature by November 15, 2014.

Sec. 218   2013 c 306 s 218 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRANSPORTATION PLANNING, DATA, AND RESEARCH -- PROGRAM T
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($20,109,000))
       $19,818,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . (($24,885,000))
       $26,085,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . $662,000
Multimodal Transportation Account -- Federal
     Appropriation . . . . . . . . . . . . $2,809,000
Multimodal Transportation Account -- Private/Local
     Appropriation . . . . . . . . . . . . $100,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($48,565,000))
       $49,474,000

     The appropriations in this section are subject to the following conditions and limitations: (((1))) Within available resources, the department must collaborate with the affected metropolitan planning organizations, regional transportation planning organizations, transit agencies, and private transportation providers to develop a plan to reduce vehicle demand, increase public transportation options, and reduce vehicle miles traveled on corridors affected by growth at Joint Base Lewis-McChord.

Sec. 219   2013 c 306 s 219 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- CHARGES FROM OTHER AGENCIES -- PROGRAM U
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($81,628,000))
       $74,198,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $400,000
Multimodal Transportation Account--State
     Appropriation . . . . . . . . . . . . (($40,000))
       $3,068,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($82,068,000))
       $77,666,000

     The appropriations in this section are subject to the following conditions and limitations: The department of enterprise services must provide a detailed accounting of the revenues and expenditures of the self-insurance fund to the transportation committees of the legislature on December 31st and June 30th of each year.

Sec. 220   2013 c 306 s 220 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- PUBLIC TRANSPORTATION -- PROGRAM V
State Vehicle Parking Account -- State Appropriation . . . . . . . . . . . . (($452,000))
       $754,000
Regional Mobility Grant Program Account -- State
     Appropriation . . . . . . . . . . . . (($49,948,000))
       $51,111,000
Rural Mobility Grant Program Account -- State
     Appropriation . . . . . . . . . . . . $17,000,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($39,057,000))
       $39,325,000
Multimodal Transportation Account -- Federal
     Appropriation . . . . . . . . . . . . $3,280,000
Motor Vehicle Account--Federal Appropriation . . . . . . . . . . . . $160,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($109,737,000))
       $111,630,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $25,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for special needs transportation provided by transit agencies and nonprofit providers of transportation. Of this amount:
     (a) $5,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to nonprofit providers of special needs transportation. Grants for nonprofit providers must be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided.
     (b) $19,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to transit agencies to transport persons with special transportation needs. To receive a grant, the transit agency must, to the greatest extent practicable, have a maintenance of effort for special needs transportation that is no less than the previous year's maintenance of effort for special needs transportation. Grants for transit agencies must be prorated based on the amount expended for demand response service and route deviated service in calendar year 2011 as reported in the "Summary of Public Transportation - 2011" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions.
     (2) $17,000,000 of the rural mobility grant program account--state appropriation is provided solely for grants to aid small cities in rural areas as prescribed in RCW 47.66.100.
     (3)(a) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for a vanpool grant program for: (a) Public transit agencies to add vanpools or replace vans; and (b) incentives for employers to increase employee vanpool use. The grant program for public transit agencies will cover capital costs only; operating costs for public transit agencies are not eligible for funding under this grant program. Additional employees may not be hired from the funds provided in this section for the vanpool grant program, and supplanting of transit funds currently funding vanpools is not allowed. The department shall encourage grant applicants and recipients to leverage funds other than state funds.
     (b) At least $1,600,000 of the amount provided in this subsection must be used for vanpool grants in congested corridors.
     (c) $520,000 of the amount provided in this subsection is provided solely for the purchase of additional vans for use by vanpools serving ((soldiers and civilian employees at)) or traveling through the Joint Base Lewis-McChord I-5 corridor between mile post 116 and 127.
     (4) (($9,948,000)) $11,111,000 of the regional mobility grant program account--state appropriation is reappropriated and provided solely for the regional mobility grant projects identified in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS - Public Transportation - Program (V) as developed ((April 23, 2013)) March 10, 2014.
     (5)(a) $40,000,000 of the regional mobility grant program account--state appropriation is provided solely for the regional mobility grant projects identified in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS - Public Transportation - Program (V) as developed ((April 23, 2013)) March 10, 2014. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded funds, but does not report activity on the project within one year of the grant award, must be reviewed by the department to determine whether the grant should be terminated. The department shall promptly close out grants when projects have been completed, and any remaining funds must be used only to fund projects identified in the LEAP transportation document referenced in this subsection. The department shall provide annual status reports on December 15, 2013, and December 15, 2014, to the office of financial management and the transportation committees of the legislature regarding the projects receiving the grants. It is the intent of the legislature to appropriate funds through the regional mobility grant program only for projects that will be completed on schedule. A grantee may not receive more than twenty-five percent of the amount appropriated in this subsection. The department shall not approve any increases or changes to the scope of a project for the purpose of a grantee expending remaining funds on an awarded grant.
     (b) In order to be eligible to receive a grant under (a) of this subsection during the 2013-2015 fiscal biennium, a transit agency must establish a process for private transportation providers to apply for the use of park and ride facilities. For purposes of this subsection, (i) "private transportation provider" means: An auto transportation company regulated under chapter 81.68 RCW; a passenger charter carrier regulated under chapter 81.70 RCW, except marked or unmarked stretch limousines and stretch sport utility vehicles as defined under department of licensing rules; a private nonprofit transportation provider regulated under chapter 81.66 RCW; or a private employer transportation service provider; and (ii) "private employer transportation service" means regularly scheduled, fixed-route transportation service that is offered by an employer for the benefit of its employees.
     (6) Funds provided for the commute trip reduction (CTR) program may also be used for the growth and transportation efficiency center program.
     (7) (($6,122,000)) $6,424,000 of the total appropriation in this section is provided solely for CTR grants and activities. Of this amount:
     (a) $3,900,000 of the multimodal transportation account--state appropriation is provided solely for grants to local jurisdictions, selected by the CTR board, for the purpose of assisting employers meet CTR goals;
     (b) $1,770,000 of the multimodal transportation account--state appropriation is provided solely for state costs associated with CTR. The department shall develop more efficient methods of CTR assistance and survey procedures; and
     (c) (($452,000)) $754,000 of the state vehicle parking account--state appropriation is provided solely for CTR-related expenditures, including all expenditures related to the guaranteed ride home program and the STAR pass program.
     (8) An affected urban growth area that has not previously implemented a commute trip reduction program as of the effective date of this section is exempt from the requirements in RCW 70.94.527.
     (9) $200,000 of the multimodal transportation account--state appropriation is contingent on the timely development of an annual report summarizing the status of public transportation systems as identified under RCW 35.58.2796.
     (10) $160,000 of the motor vehicle account--federal appropriation is provided solely for King county metro to study demand potential for a state route number 18 and Interstate 90 park and ride location, to size the facilities appropriately, to perform site analysis, and to develop preliminary design concepts. When studying potential park and ride locations pursuant to this subsection, King county metro must take into consideration the effect of the traffic using the weigh station at the Interstate 90 and state route number 18 interchange at exit 25 and, to the maximum extent practicable, choose a park and ride location that minimizes traffic impacts for the Interstate 90 and state route number 18 interchange and the weigh station.

Sec. 221   2013 c 306 s 221 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- MARINE -- PROGRAM X
Puget Sound Ferry Operations Account -- State
     Appropriation . . . . . . . . . . . . (($485,076,000))
       $483,404,000
Puget Sound Ferry Operations Account -- Private/Local
     Appropriation . . . . . . . . . . . . $121,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($485,197,000))
       $483,525,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The office of financial management budget instructions require agencies to recast enacted budgets into activities. The Washington state ferries shall include a greater level of detail in its 2013-2015 supplemental and 2015-2017 omnibus transportation appropriations act requests, as determined jointly by the office of financial management, the Washington state ferries, and the transportation committees of the legislature. This level of detail must include the administrative functions in the operating as well as capital programs.
     (2) Until a reservation system is operational on the San Juan islands inter-island route, the department shall provide the same priority loading benefits on the San Juan islands inter-island route to home health care workers as are currently provided to patients traveling for purposes of receiving medical treatment.
     (3) For the 2013-2015 fiscal biennium, the department may enter into a distributor controlled fuel hedging program and other methods of hedging approved by the fuel hedging committee.
     (4) (($112,342,000)) $113,157,000 of the Puget Sound ferry operations account--state appropriation is provided solely for auto ferry vessel operating fuel in the 2013-2015 fiscal biennium, which reflect cost savings from a reduced biodiesel fuel requirement and, therefore, are contingent upon the enactment of section 701 ((of this act)), chapter 306, Laws of 2013. The amount provided in this subsection represent the fuel budget for the purposes of calculating any ferry fare fuel surcharge. The department shall develop a fuel reduction plan to be submitted as part of its 2014 supplemental budget proposal. The plan must include fuel saving proposals, such as vessel modifications, vessel speed reductions, and changes to operating procedures, along with anticipated fuel saving estimates.
     (5) $100,000 of the Puget Sound ferry operations account--state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.
     (6) When purchasing uniforms that are required by collective bargaining agreements, the department shall contract with the lowest cost provider.
     (7) $3,049,000 of the Puget Sound ferry operations account--state appropriation is provided solely for the operating program share of the $7,259,000 in lease payments for the ferry division's headquarters building. Consistent with the 2012 facilities oversight plan, the department shall strive to consolidate office space in downtown Seattle by the end of 2015. The department shall consider renewing the lease for the ferry division's current headquarters building only if the lease rate is reduced at least fifty percent and analysis shows that this is the least cost and risk option for the department. Consolidation with other divisions or state agencies, or a reduction in leased space, must also be considered as part of any headquarters lease renewal analysis.
     (8) $5,000,000 of the Puget Sound ferry operations account--state appropriation is provided solely for the purchase of a 2013-2015 marine insurance policy. Within this amount, the department is expected to purchase a policy with the lowest deductible possible, while maintaining at least existing coverage levels for ferry vessels, and providing coverage for all terminals.
     (9) Within existing resources, the department must evaluate the feasibility of using re-refined used motor oil processed in Washington state as a ferry fuel source. The evaluation must include, but is not limited to, research on existing entities currently using the process for re-refined fuel, any required combustible engine modifications, additional needed equipment on the vessels or fueling locations, cost analysis, compatibility with B-5 blended diesel, and meeting engine performance specifications. The department must establish an evaluation group that includes, but is not limited to, persons experienced in the re-refined motor oil industry. The department must deliver a report containing the results of the evaluation to the transportation committees of the legislature and the office of financial management by December 1, 2014.
     (10) $71,000 of the Puget Sound ferry operations account--state appropriation is provided solely for one traffic attendant for ferry terminal traffic control at the Fauntleroy ferry terminal.

Sec. 222   2013 c 306 s 222 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- RAIL -- PROGRAM Y -- OPERATING
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($32,924,000))
       $46,026,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) (($27,319,000)) $40,289,000 of the multimodal transportation account--state appropriation is provided solely for ((the Amtrak service contract and Talgo maintenance contract associated with providing)) operating and maintaining state-supported passenger rail service. In recognition of the increased costs the state is expected to absorb due to changes in federal law, the department is directed to analyze the Amtrak contract proposal and find cost saving alternatives. The department shall report to the transportation committees of the legislature before the 2014 regular legislative session on its revisions to the Amtrak contract, including a review of the appropriate costs within the contract for concession services, policing, host railroad incentives, and station services and staffing needs. Within thirty days of each annual cost/revenue reconciliation under the Amtrak service contract, the department shall report any changes that would affect the state subsidy amount appropriated in this subsection. Through a competitive process, the department may contract with a private entity for services related to operations and maintenance of the Amtrak Cascades route, including, but not limited to, concession services.
     (2) Amtrak Cascades runs may not be eliminated.
     (3) The department shall continue a pilot program by partnering with the travel industry on the Amtrak Cascades service between Vancouver, British Columbia, and Seattle to test opportunities for increasing ridership, maximizing farebox recovery, and stimulating private investment. The pilot program must run from December 31, 2013, to December 31, 2014, and evaluate seasonal differences in the program and the effect of advertising. The department may offer to Washington universities an opportunity for business students to work as interns on the analysis of the pilot program process and results. The department shall report on the results of the pilot program to the office of financial management and the legislature by January 31, 2015.
     (4) $150,000 of the multimodal transportation account--state appropriation is provided solely for the department to develop an inventory of short line rail infrastructure that can be used to support a data-driven approach to identifying system needs. The department shall work with short line rail owners and operators within the state, provide status updates periodically to the joint transportation committee, submit a progress report of its findings to the transportation committees of the legislature and the office of financial management by December 15, 2014, submit a preliminary report of key findings and recommendations to the transportation committees of the legislature and the office of financial management by March 1, 2015, and submit a final report to the transportation committees of the legislature and the office of financial management by June 30, 2015.

Sec. 223   2013 c 306 s 223 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- LOCAL PROGRAMS -- PROGRAM Z -- OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($8,737,000))
       $8,672,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $2,567,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($11,304,000))
       $11,239,000

TRANSPORTATION AGENCIES -- CAPITAL

Sec. 301   2013 c 306 s 301 (uncodified) is amended to read as follows:
FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD
Freight Mobility Investment Account--State
     Appropriation . . . . . . . . . . . . (($11,794,000))
       $11,930,000
Freight Mobility Multimodal Account--State
     Appropriation . . . . . . . . . . . . (($9,736,000))
       $9,826,000
Freight Mobility Multimodal Account--Private/Local
     Appropriation . . . . . . . . . . . . $1,320,000
Highway Safety Account--State Appropriation . . . . . . . . . . . . (($2,450,000))
       $2,606,000
Motor Vehicle Account--State Appropriation . . . . . . . . . . . . $84,000
Motor Vehicle Account--Federal Appropriation . . . . . . . . . . . . (($3,250,000))
       $5,750,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($28,634,000))
       $31,516,000

     ((The appropriations in this section are subject to the following conditions and limitations: Except as provided otherwise in this section, the total appropriation in this section is provided solely for the implementation of chapter . . . (Substitute House Bill No. 1256), Laws of 2013 (addressing project selection by the freight mobility strategic investment board). If chapter . . . (Substitute House Bill No. 1256), Laws of 2013 is not enacted by June 30, 2013, the amounts provided in this section lapse.))

Sec. 302   2013 c 306 s 302 (uncodified) is amended to read as follows:
FOR THE WASHINGTON STATE PATROL
State Patrol Highway Account -- State Appropriation . . . . . . . . . . . . (($1,926,000))
       $2,661,000

     The appropriation in this section is subject to the following conditions and limitations:
     (1) $200,000 of the state patrol highway account--state appropriation is provided solely for unforeseen emergency repairs on facilities.
     (2) $426,000 of the state patrol highway account--state appropriation is provided solely for the replacement of the roofs of the Marysville district office and vehicle inspection building and Spokane East office.
     (3) $450,000 of the state patrol highway account--state appropriation is provided solely for upgrades to scales at Ridgefield Port of Entry, Dryden, South Pasco, Deer Park, and Kelso required to meet current certification requirements.
     (4) (($850,000)) $1,200,000 of the state patrol highway account--state appropriation is provided solely for the replacement of the damaged and unrepairable scale house at the Everett southbound I-5 weigh scales, including equipment, weigh-in-motion technology, and an ALPR camera.
     (5) The Washington state patrol, in cooperation with the Washington state department of transportation, must study the federal funding options available for weigh station construction and improvements on the national highway system. A study report must be provided by July 1, 2014, to the office of financial management and the transportation committees of the legislature with recommendations on utilizing federal funds for weigh station projects.

Sec. 303   2013 c 306 s 303 (uncodified) is amended to read as follows:
FOR THE COUNTY ROAD ADMINISTRATION BOARD
Rural Arterial Trust Account -- State
     Appropriation . . . . . . . . . . . . (($35,894,000))
       $57,394,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . $10,000,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . $706,000
County Arterial Preservation Account -- State
     Appropriation . . . . . . . . . . . . (($30,000,000))
       $32,000,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($76,600,000))
       $100,100,000

Sec. 304   2013 c 306 s 304 (uncodified) is amended to read as follows:
FOR THE TRANSPORTATION IMPROVEMENT BOARD
Small City Pavement and Sidewalk Account -- State
     Appropriation . . . . . . . . . . . . (($3,500,000))
       $5,250,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . $10,000,000
Transportation Improvement Account -- State
     Appropriation . . . . . . . . . . . . (($174,225,000))
       $231,851,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($187,725,000))
       $247,101,000

     The appropriations in this section are subject to the following conditions and limitations: The highway safety account--state appropriation is provided solely for:
     (1) The arterial preservation program to help low tax-based, medium-sized cities preserve arterial pavements;
     (2) The small city pavement program to help cities meet urgent preservation needs; and
     (3) The small city low-energy street light retrofit demonstration program.

Sec. 305   2013 c 306 s 305 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- FACILITIES -- PROGRAM D -- (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS) -- CAPITAL
Transportation Partnership Account -- State
     Appropriation . . . . . . . . . . . . (($13,425,000))
       $14,390,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($8,106,000))
       $9,469,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($21,531,000))
       $23,859,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The legislature recognizes that the Marginal Way site (King county parcel numbers 3024049182 & 5367202525) is surplus state-owned real property under the jurisdiction of the department and that the public would benefit significantly if this site is used to provide important social services. Therefore, the legislature declares that committing the Marginal Way site to this use is consistent with the public interest.
     Pursuant to RCW 47.12.063, the department shall work with the owner of King county parcel number 7643400010, which abuts both parcels of the Marginal Way site, and shall convey the Marginal Way site to that abutting property owner for the appraised fair market value of the parcels, the proceeds of which must be deposited in the motor vehicle fund. The conveyance is conditional upon the purchaser's agreement to commit the use of the Marginal Way site to operations with the goal of ending hunger in western Washington. The department may not make this conveyance before September 1, 2013, and may not make this conveyance after ((January 15)) September 1, 2014.
     The Washington department of transportation is not responsible for any costs associated with the cleanup or transfer of the Marginal Way site.
     (2) (($13,425,000)) $14,390,000 of the transportation partnership account--state appropriation is provided solely for the construction of a new traffic management and emergency operations center on property owned by the department on Dayton Avenue in Shoreline (project 100010T). Consistent with the office of financial management's 2012 study, it is the intent of the legislature to appropriate no more than $15,000,000 for the total construction costs. The department shall report to the transportation committees of the legislature and the office of financial management by June 30, 2014, on the progress of the construction of the traffic management and emergency operations center, including a schedule for terminating the current lease of the Goldsmith building in Seattle.

     *Sec. 306   2013 c 306 s 306 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- IMPROVEMENTS -- PROGRAM I
Multimodal Transportation Account--State
     Appropriation . . . . . . . . . . . . $1,000,000
Transportation Partnership Account--State
     Appropriation . . . . . . . . . . . . (($1,536,032,000))
       $1,313,555,000
Motor Vehicle Account--State Appropriation . . . . . . . . . . . . (($61,508,000))
       $69,478,000
Motor Vehicle Account--Federal Appropriation . . . . . . . . . . . . (($473,359,000))
       $516,181,000
Motor Vehicle Account--Private/Local Appropriation . . . . . . . . . . . . (($208,452,000))
       $166,357,000
Transportation 2003 Account (Nickel Account)--State
     Appropriation . . . . . . . . . . . . (($242,253,000))
       $325,778,000
State Route Number 520 Corridor Account--State
     Appropriation . . . . . . . . . . . . (($737,205,000))
       $880,111,000
State Route Number 520 Corridor Account--Federal
     Appropriation . . . . . . . . . . . . $300,000,000
Special Category C Account--State Appropriation . . . . . . . . . . . . $124,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($3,559,933,000))
       $3,572,584,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Except as provided otherwise in this section, the entire transportation 2003 account (nickel account) appropriation and the entire transportation partnership account appropriation are provided solely for the projects and activities as listed by fund, project, and amount in LEAP Transportation Document ((2013-1)) 2014-1 as developed ((April 23, 2013)) March 10, 2014, Program - Highway Improvement Program (I). However, limited transfers of specific line-item project appropriations may occur between projects for those amounts listed subject to the conditions and limitations in section ((603)) 601 of this act.
     (2) Except as provided otherwise in this section, the entire motor vehicle account--state appropriation and motor vehicle account--federal appropriation are provided solely for the projects and activities listed in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS as developed ((April 23, 2013)) March 10, 2014, Program - Highway Improvement Program (I). ((It is the intent of the legislature to direct))The department ((to give first priority of)) shall apply any federal funds gained through efficiencies or the redistribution process in an amount up to $27,200,000 for cost overruns related to the pontoon design errors on the SR 520 Bridge Replacement and HOV project (8BI1003) as described in subsection (12)(f) of this section. Any federal funds gained through efficiencies or the redistribution process that are in excess of $27,200,000 must then be applied to the "Contingency (Unfunded) Highway Preservation Projects" as identified in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS as developed ((April 23, 2013)) March 10, 2014, Program - Highway Preservation Program (P). However, no additional federal funds may be allocated to the I- 5/Columbia River Crossing project (400506A).
     (3) Within the motor vehicle account -- state appropriation and motor vehicle account -- federal appropriation, the department may transfer funds between programs I and P, except for funds that are otherwise restricted in this act.
     (4) The transportation 2003 account (nickel account) -- state appropriation includes up to (($217,604,000)) $246,710,000 in proceeds from the sale of bonds authorized by RCW 47.10.861.
     (5) The transportation partnership account -- state appropriation includes up to (($1,156,217,000)) $811,595,000 in proceeds from the sale of bonds authorized in RCW 47.10.873.
     (6) The motor vehicle account -- state appropriation includes up to $30,000,000 in proceeds from the sale of bonds authorized in RCW 47.10.843.
     (((8))) (7)(a) (($5,000,000)) $6,174,000 of the motor vehicle account -- federal appropriation and (($200,000)) $269,000 of the motor vehicle account--state appropriation are provided solely for the I-90 Comprehensive Tolling Study and Environmental Review project (100067T). The department shall prepare a detailed environmental impact statement that complies with the national environmental policy act regarding tolling Interstate 90 between Interstate 5 and Interstate 405 for the purposes of both managing traffic and providing funding for the construction of the unfunded state route number 520 from Interstate 5 to Medina project. As part of the preparation of the statement, the department must review any impacts to the network of highways and roads surrounding Lake Washington. In developing this statement, the department must provide significant outreach to potential affected communities. The department may consider traffic management options that extend as far east as Issaquah.
     (b)(i) As part of the project in this subsection (((8))) (7), the department shall perform a study of all funding alternatives to tolling Interstate 90 to provide funding for construction of the unfunded state route number 520 and explore and evaluate options to mitigate the effect of tolling on affected residents and all other users of the network of highways and roads surrounding Lake Washington including, but not limited to:
     (A) Allowing all Washington residents to traverse a portion of the tolled section of Interstate 90 without paying a toll. Residents may choose either (I) the portion of Interstate 90 between the easternmost landing west of Mercer Island and the westernmost landing on Mercer Island, or (II) the portion of Interstate 90 between the westernmost landing east of Mercer Island and the easternmost landing on Mercer Island;
     (B) Assessing a toll only when a driver traverses, in either direction, the entire portion of Interstate 90 between the easternmost landing west of Mercer Island and the westernmost landing east of Mercer Island; and
     (C) Allowing affected residents to choose one portion of the tolled section of Interstate 90 upon which they may travel without paying a toll. Residents may choose either (I) the portion of Interstate 90 between the easternmost landing west of Mercer Island and the westernmost landing on Mercer Island, or (II) the portion of Interstate 90 between the westernmost landing east of Mercer Island and the easternmost landing on Mercer Island.
     (ii) The department may also consider any alternative mitigation options that conform to the purpose of this subsection (((8))) (7).
     (iii) For the purposes of this subsection (((8))) (7), "affected resident" means anyone who must use a portion of Interstate 90 west of Interstate 405 upon which tolling is considered in order to access necessary medical services, such as a hospital.
     (((9) $541,901,000)) (8) $490,796,000 of the transportation partnership account--state appropriation, (($144,954,000)) $156,979,000 of the motor vehicle account--federal appropriation, (($129,779,000)) $132,191,000 of the motor vehicle account--private/local appropriation, and (($78,004,000)) $123,305,000 of the transportation 2003 account (nickel account)--state appropriation are provided solely for the SR 99/Alaskan Way Viaduct - Replacement project (809936Z). Amounts appropriated in this subsection may not be spent for the purpose of public transportation mitigation, except pursuant to an agreement or agreements between the department and King county as that agreement or agreements existed on January 1, 2013.
     (((10))) (9) The department shall reconvene an expert review panel of no more than three members as described under RCW 47.01.400 for the purpose of updating the work that was previously completed by the panel on the Alaskan Way viaduct replacement project and to ensure that an appropriate and viable financial plan is created and regularly reviewed. The expert review panel must be selected cooperatively by the chairs of the senate and house of representatives transportation committees, the secretary of transportation, and the governor. The expert review panel must report findings and recommendations to the transportation committees of the legislature, the governor's Alaskan Way viaduct project oversight committee, and the transportation commission annually until the project is operationally complete. This subsection takes effect if chapter ... (Substitute House Bill No. 1957), Laws of 2013 is not enacted by June 30, 2013.
     (((11) $7,408,000)) (10) $7,103,000 of the transportation partnership account--state appropriation, (($14,594,000)) $22,774,000 of the transportation 2003 account (nickel account)--state appropriation, (($3,730,000 of the motor vehicle account--state appropriation,)) $1,000,000 of the multimodal transportation account--state appropriation, and (($41,395,000)) $51,712,000 of the motor vehicle account--federal appropriation are provided solely for the US 395/North Spokane Corridor projects (600010A & 600003A). Any future savings on the projects must stay on the US 395/Interstate 90 corridor and be made available to the current phase of the North Spokane corridor projects or any future phase of the projects.
     (((12) $114,369,000)) (11) $129,952,000 of the transportation partnership account -- state appropriation and (($53,755,000)) $58,583,000 of the transportation 2003 account (nickel account) -- state appropriation are provided solely for the I-405/Kirkland Vicinity Stage 2 - Widening project (8BI1002). This project must be completed as soon as practicable as a design-build project. Any future savings on this project or other Interstate 405 corridor projects must stay on the Interstate 405 corridor and be made available to either the I-405/SR 167 Interchange - Direct Connector project (140504C) or the I-405 Renton to Bellevue project.
     (((13))) (12)(a) The SR 520 Bridge Replacement and HOV project (((0BI1003))) (8BI1003) is supported over time from multiple sources, including a $300,000,000 TIFIA loan, (($819,524,625)) $923,000,000 in Garvee bonds, toll revenues, state bonds, interest earnings, and other miscellaneous sources.
     (b) The state route number 520 corridor account--state appropriation includes up to (($668,142,000)) $814,784,000 in proceeds from the sale of bonds authorized in RCW 47.10.879 and 47.10.886.
     (c) The state route number 520 corridor account--federal appropriation includes up to $300,000,000 in proceeds from the sale of bonds authorized in RCW 47.10.879 and 47.10.886.
     (d) (($153,124,000)) $165,175,000 of the transportation partnership account--state appropriation, $300,000,000 of the state route number 520 corridor account--federal appropriation, and (($737,205,000)) $880,111,000 of the state route number 520 corridor account--state appropriation are provided solely for the SR 520 Bridge Replacement and HOV project (((0BI1003))) (8BI1003). Of the amounts appropriated in this subsection (((13))) (12)(d), (($105,085,000)) $84,001,000 of the state route number 520 corridor account--federal appropriation and (($227,415,000)) $354,411,000 of the state route number 520 corridor account--state appropriation must be put into unallotted status and are subject to review by the office of financial management. The director of the office of financial management shall consult with the joint transportation committee prior to making a decision to allot these funds.
     (e) When developing the financial plan for the project, the department shall assume that all maintenance and operation costs for the new facility are to be covered by tolls collected on the toll facility and not by the motor vehicle account.
     (f) The legislature finds that the most appropriate way to pay for the cost overruns related to change orders, additional sales tax, and future risks associated with pontoon design errors is for the state to issue triple pledge bonds in the 2015-2017 fiscal biennium resulting in $110,961,000 in proceeds, and use efficiencies, including the use of least cost planning or practical design, and favorable bids in the highway construction program to generate an additional $61,066,000 towards paying for the estimated project overruns. Of this additional $61,066,000, $33,866,000 should come from the transportation partnership account--state appropriation and $27,200,000 should come from federal funds. As the department identifies savings in federal funds during the 2013-2015 fiscal biennium, the department shall prioritize the use of these funds towards the anticipated $27,200,000 in federal funds needed to address cost overruns before expending state funds during this fiscal biennium. The legislature assumes that issuing bonds to complete this project as listed in LEAP Transportation Document 2014-1 as developed March 10, 2014, does not require a comprehensive financial plan for a project that completes the state route number 520 corridor to Interstate 5.
     (g) The department's 2014 supplemental budget allotment submittal must include a project-specific plan detailing how the department will achieve the mandatory budget savings in (f) of this subsection, including the use of least cost planning or practical design as a means to generate savings, as referenced in subsection (23) of this section. The use of least cost planning or practical design may result in a reduction of project cost, but not a reduction of functional scope. The director of financial management shall notify the transportation committees of the legislature in writing seven days prior to approving any allotment modifications under this subsection.
     (13) Within the amounts provided in this section, the department must continue to work with the Seattle department of transportation in their joint planning, design, outreach, and operation of the remaining west side elements including, but not limited to, the Montlake lid, the bicycle/pedestrian path, the effective network of transit connections, and the Portage Bay bridge of the SR 520 Bridge Replacement and HOV project.

     (14) (($1,100,000)) $1,062,000 of the motor vehicle account--federal appropriation is provided solely for the 31st Ave SW Overpass Widening and Improvement project (L1100048).
     (15) (($22,602,000)) $25,243,000 of the motor vehicle account--state appropriation is provided solely to advance the design, preliminary engineering, and rights-of-way acquisition for the priority projects identified in LEAP Transportation Document ((2013-3)) 2014-3 as developed ((April 23, 2013)) March 10, 2014. Funds must be used to advance the emergent, initial development of these projects for the purpose of expediting delivery of the associated major investments when funding for such investments becomes available. Funding may be reallocated between projects to maximize the accomplishment of design and preliminary engineering work and rights-of-way acquisition, provided that all projects are addressed. It is the intent of the legislature that, while seeking to maximize the outcomes in this section, the department shall provide for continuity of both the state and consulting engineer workforce, while strategically utilizing private sector involvement to ensure consistency with the department's business plan for staffing in the highway construction program in the current fiscal biennium.
     (16) If a planned roundabout in the vicinity of state route number 526 and 84th Street SW would divert commercial traffic onto neighborhood streets, the department may not proceed with improvements at state route number 526 and 84th Street SW until the traffic impacts in the vicinity of state route number 526 and 40th Avenue West are addressed.
     (17) The legislature finds that there are sixteen companies involved in wood preserving in the state that employ four hundred workers and have an annual payroll of fifteen million dollars. Prior to the department's switch to steel guardrails, ninety percent of the twenty-five hundred mile guardrail system was constructed of preserved wood and one hundred ten thousand wood guardrail posts were produced annually for state use. Moreover, the policy of using steel posts requires the state to use imported steel. Given these findings, where practicable, and until June 30, 2015, the department shall include the design option to use wood guardrail posts, in addition to steel posts, in new guardrail installations. The selection of posts must be consistent with the agency design manual policy that existed before December 2009.
     (18) The legislature finds that "right-sizing" is a lean, metric-based approach to determining project investments. This concept entails compromise between project cost and design, incorporating local community needs, desired outcomes, and available funding. Furthermore, the legislature finds that the concepts and principles the department has utilized in the safety analyst program have been effective tools to prioritize projects and reduce project costs. Therefore, the department shall establish a pilot project on the SR 3/Belfair Bypass - New Alignment (300344C) to begin implementing the concept of "right-sizing" in the highway construction program.
     (19) For urban corridors that are all or partially within a metropolitan planning organization boundary, for which the department has not initiated environmental review, and that require an environmental impact statement, at least one alternative must be consistent with the goals set out in RCW 47.01.440.
     (20) The department shall itemize all future requests for the construction of buildings on a project list and submit them through the transportation executive information system as part of the department's 2014 budget submittal. It is the intent of the legislature that new facility construction must be transparent and not appropriated within larger highway construction projects.
     (21) (($28,963,000)) $19,513,000 of the motor vehicle account--state appropriation ((is)) and $9,450,000 of the motor vehicle account--federal appropriation are provided solely for improvement program support activities (095901X). $18,000,000 of this amount must be held in unallotted status until the office of financial management certifies that the department's 2014 supplemental budget request conforms to the terms of subsection (20) of this section.
     (((23))) (22) Any new advisory group that the department convenes during the 2013-2015 fiscal biennium must be representative of the interests of the entire state of Washington.
     (23) Practical design offers targeted benefits to a state transportation system within available fiscal resources. This delivers value not just for individual projects, but for the entire system. Applying practical design standards will also preserve and enhance safety and mobility. The department shall implement a practical design strategy for transportation design standards. By June 30, 2015, the department shall report to the governor and the house of representatives and senate transportation committees on where practical design has been applied or is intended to be applied in the department and the cost savings resulting from the use of practical design.
     (24) The department of transportation shall accept transfer to the state highway system of Quarry Road (also known as the Granite Falls Alternate Route) as a partially controlled limited access facility, consistent with the right-of-way and limited access plan adopted by Snohomish county and the city of Granite Falls in 2008. The department of transportation shall defend any and all claims related to access and challenges to the limited access designation. This subsection takes effect ninety days after the date the governor signs this act if an agreement between the department of transportation and Snohomish county has not been signed by the effective date of this act.
     *Sec. 306 was partially vetoed. See message at end of chapter.

Sec. 307   2013 c 306 s 307 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- PRESERVATION -- PROGRAM P
Transportation Partnership Account--State
     Appropriation . . . . . . . . . . . . (($36,480,000))
       $34,966,000
Highway Safety Account--State Appropriation . . . . . . . . . . . . (($10,000,000))
       $13,500,000
Motor Vehicle Account--State Appropriation . . . . . . . . . . . . (($58,503,000))
       $59,796,000
Motor Vehicle Account--Federal Appropriation . . . . . . . . . . . . (($580,062,000))
       $595,604,000
Motor Vehicle Account--Private/Local Appropriation . . . . . . . . . . . . (($11,270,000))
       $11,827,000
Transportation 2003 Account (Nickel Account)--State
     Appropriation . . . . . . . . . . . . (($2,285,000))
       $2,650,000
Tacoma Narrows Toll Bridge Account--State Appropriation . . . . . . . . . . . . $120,000

          TOTAL APPROPRIATION . . . . . . . . . . . . (($698,600,000))
       $718,463,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Except as provided otherwise in this section, the entire transportation 2003 account (nickel account) appropriation and the entire transportation partnership account appropriation are provided solely for the projects and activities as listed by fund, project, and amount in LEAP Transportation Document ((2013-1)) 2014-1 as developed ((April 23, 2013)) March 10, 2014, Program - Highway Preservation Program (P). However, limited transfers of specific line-item project appropriations may occur between projects for those amounts listed subject to the conditions and limitations in section ((603)) 601 of this act.
     (2) Except as provided otherwise in this section, the entire motor vehicle account--state appropriation and motor vehicle account--federal appropriation are provided solely for the projects and activities listed in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS as developed ((April 23, 2013)) March 10, 2014, Program - Highway Preservation Program (P). ((It is the intent of the legislature to direct)) The department ((to give first priority of)) shall apply any federal funds gained through efficiencies or the redistribution process in an amount up to $27,200,000 for cost overruns related to the pontoon design errors on the SR 520 Bridge Replacement and HOV project (8BI1003) as described in section 306(12)(f) of this act. Any federal funds gained through efficiencies or the redistribution process that are in excess of $27,200,000 must then be applied to the "Contingency (Unfunded) Highway Preservation Projects" as identified in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS as developed ((April 23, 2013)) March 10, 2014, Program - Highway Preservation Program (P). However, no additional federal funds may be allocated to the I-5/Columbia River Crossing project (400506A).
     (3) Within the motor vehicle account -- state appropriation and motor vehicle account -- federal appropriation, the department may transfer funds between programs I and P, except for funds that are otherwise restricted in this act.
     (4) (($27,278,000)) $26,610,000 of the motor vehicle account -- federal appropriation, $51,000 ((and $1,141,000)) of the motor vehicle account -- state appropriation, and $769,000 of the highway safety account--state appropriation are provided solely for the SR 167/Puyallup River Bridge Replacement project (316725A). This project must be completed as a design-build project. The department must work with local jurisdictions and the community during the environmental review process to develop appropriate esthetic design elements, at no additional cost to the department, and traffic management plans pertaining to this project. The department must report to the transportation committees of the legislature on estimated cost and/or time savings realized as a result of using the design-build process.
     (5) The department shall examine the use of electric arc furnace slag for use as an aggregate for new roads and paving projects in high traffic areas and report back to the legislature on its current use in other areas of the country and any characteristics that can provide greater wear resistance and skid resistance in new pavement construction.

Sec. 308   2013 c 306 s 308 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRAFFIC OPERATIONS -- PROGRAM Q--CAPITAL
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($3,194,000))
       $4,915,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . (($7,959,000))
       $9,152,000
Motor Vehicle Account--Private/Local Appropriation . . . . . . . . . . . . $200,000

          TOTAL APPROPRIATION . . . . . . . . . . . . (($11,153,000))
       $14,267,000

     The appropriations in this section are subject to the following conditions and limitations: (($694,000)) $195,000 of the motor vehicle account -- state appropriation is provided solely for project 000005Q as state matching funds for federally selected competitive grants or congressional earmark projects. These moneys must be placed into reserve status until such time as federal funds are secured that require a state match.

Sec. 309   2013 c 306 s 309 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- WASHINGTON STATE FERRIES CONSTRUCTION -- PROGRAM W
Puget Sound Capital Construction Account -- State
     Appropriation . . . . . . . . . . . . (($53,036,000))
       $63,825,000
Puget Sound Capital Construction Account -- Federal
     Appropriation . . . . . . . . . . . . (($91,692,000))
       $118,444,000
Puget Sound Capital Construction Account -- Private/Local
     Appropriation . . . . . . . . . . . . (($1,145,000))
       $1,312,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($1,534,000))
       $2,588,000
Transportation 2003 Account (Nickel Account) -- State
     Appropriation . . . . . . . . . . . . (($143,941,000))
       $190,031,000
Transportation Partnership Account--State
     Appropriation . . . . . . . . . . . . $2,813,000

          TOTAL APPROPRIATION . . . . . . . . . . . . (($291,348,000))
       $379,013,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Except as provided otherwise in this section, the entire appropriations in this section are provided solely for the projects and activities as listed in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS as developed ((April 23, 2013)) March 10, 2014, Program -Washington State Ferries Capital Program (W).
     (2) The Puget Sound capital construction account -- state appropriation includes up to $20,000,000 in proceeds from the sale of bonds authorized in RCW 47.10.843.
     (3) (($143,633,000)) $137,425,000 of the transportation 2003 account (nickel account) -- state appropriation ((is)), $2,338,000 of the transportation partnership account--state appropriation, and $300,000 of the Puget Sound capital construction account--federal appropriation are provided solely for the acquisition of two 144-car vessels (projects L2200038 and L2200039). The department shall use as much already procured equipment as practicable on the 144-car vessels.
     (4) (($8,270,000)) $14,728,000 of the Puget Sound capital construction account--federal appropriation, (($3,935,000)) $4,038,000 of the Puget Sound capital construction account--state appropriation, and (($1,534,000)) $1,535,000 of the multimodal transportation account--state appropriation are provided solely for the Mukilteo ferry terminal (project 952515P). To the greatest extent practicable, the department shall seek additional federal funding for this project. Within the multimodal transportation account--state appropriation amount provided in this subsection, the department shall lease to the city in which the project is located a portion of the department's property associated with this project to provide safe, temporary public access from the easterly terminus of First Street to the vicinity of Front Street. The department shall provide the lease at no cost in recognition of the impacts of this project to the city and require appropriate liability and maintenance coverage in the terms of the lease. Public access must be installed and removed at no cost to the state prior to construction of the multimodal terminal project.
     (5) (($4,000,000)) $4,935,000 of the Puget Sound capital construction account -- state appropriation is provided solely for emergency capital repair costs (project 999910K). Funds may only be spent after approval by the office of financial management.
     (6) Consistent with RCW 47.60.662, which requires the Washington state ferry system to collaborate with passenger-only ferry and transit providers to provide service at existing terminals, the department shall ensure that multimodal access, including for passenger-only ferries and transit service providers, is not precluded by any future modifications at the terminal.
     (7) (($3,800,000)) $4,026,000 of the Puget Sound capital construction account--state appropriation is provided solely for the reservation and communications system projects (L200041 & L200042).
     (8) $4,210,000 of the Puget Sound capital construction account--state appropriation is provided solely for the capital program share of $7,259,000 in lease payments for the ferry division's headquarters building. Consistent with the 2012 facilities oversight plan, the department shall strive to consolidate office space in downtown Seattle by the end of 2015. The department shall consider renewing the lease for the ferry division's current headquarters building only if the lease rate is reduced at least fifty percent and analysis shows that this is the least cost and risk option for the department. Consolidation with other divisions or state agencies, or a reduction in leased space, must also be considered as part of any headquarters lease renewal analysis.
     (9) (($21,950,000)) $23,737,000 of the total appropriation is for preservation work on the Hyak super class vessel (project 944431D), including installation of a power management system and more efficient propulsion systems, that in combination are anticipated to save up to twenty percent in fuel and reduce maintenance costs. Upon completion of this project, the department shall provide a report to the transportation committees of the legislature on the fuel and maintenance savings achieved for this vessel and the potential to save additional funds through other vessel conversions.
     (10) The transportation 2003 account (nickel account)--state appropriation includes up to $50,000,000 in proceeds from the sale of bonds authorized in RCW 47.10.861.
     (11) $50,000,000 of the transportation 2003 account (nickel account)--state appropriation is provided solely for the acquisition of one 144-car vessel (project L1000063). If chapter . . . (Engrossed Second Substitute House Bill No. 1129), Laws of 2014 (ferry vessel replacement) is not enacted by June 30, 2014, the amount provided in the subsection lapses.
     (12) If the department pursues a conversion of the existing diesel powered Issaquah class fleet to a different fuel source or engine technology, the department must use a design-build procurement process.
     (13) $350,000 of the Puget Sound capital construction account--state appropriation is provided solely for the issuance of a request for proposals to convert the Issaquah class vessels to use liquefied natural gas and to provide a one-time stipend to the entity awarded the conversion contract. Of the amounts provided in this subsection:
     (a) $100,000 of the Puget Sound capital construction account--state appropriation is for the department to issue a request for proposals for a design-build contract consistent with RCW 47.20.780 to convert six Issaquah class vessels to be powered by liquefied natural gas. Consistent with RCW 47.56.030(2)(c), the legislature finds that the performance needs of the department in converting to liquefied natural gas are for engines with the lowest life-cycle costs, and the department must weigh this criteria as a priority when evaluating the proposals. To encourage cost saving ideas, the department shall limit prescribing design elements in the proposal to those approved or required by the United States coast guard in the liquefied natural gas waterways suitability assessment or those otherwise essential to provide clear direction to bidders. The request for proposals must include a process for evaluating proposals that may include alternative financing arrangements that are in compliance with state private financing law. When evaluating the financial merits of any liquefied natural gas conversion request for proposals, the department shall give consideration to the inability of the state to fund a liquefied natural gas conversion using currently available public resources. The department shall issue the request for proposals within forty-five days of rejecting the liquefied natural gas request for proposals issued under section 308(11), chapter 86, Laws of 2012 or receiving final findings from the United States coast guard on the liquefied natural gas waterways suitability assessment, whichever is later.
     (b) $250,000 of the Puget Sound capital construction account--state appropriation is for the entity awarded the contract pursuant to this subsection.

     *Sec. 310   2013 c 306 s 310 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- RAIL -- PROGRAM Y -- CAPITAL
Essential Rail Assistance Account -- State
     Appropriation . . . . . . . . . . . . (($861,000))
       $1,020,000
Transportation Infrastructure Account -- State
     Appropriation . . . . . . . . . . . . (($8,582,000))
       $9,190,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($33,156,000))
       $44,085,000
Multimodal Transportation Account -- Federal
     Appropriation . . . . . . . . . . . . (($333,881,000))
       $430,193,000
Multimodal Transportation Account--Private/Local
     Appropriation . . . . . . . . . . . . $409,000

          TOTAL APPROPRIATION . . . . . . . . . . . . (($376,480,000))
       $484,897,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1)(a) Except as provided otherwise in this section, the entire appropriations in this section are provided solely for the projects and activities as listed by project and amount in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS as developed ((April 23, 2013)) March 10, 2014, Program - Rail ((Capital)) Program (Y).
     (b) Within the amounts provided in this section, (($7,332,000)) $7,669,000 of the transportation infrastructure account -- state appropriation is for low-interest loans through the freight rail investment bank program identified in the LEAP transportation document referenced in (a) of this subsection. The department shall issue freight rail investment bank program loans with a repayment period of no more than ten years, and only so much interest as is necessary to recoup the department's costs to administer the loans.
     (c) Within the amounts provided in this section, (($2,439,000)) $2,440,000 of the multimodal transportation account -- state appropriation, $1,250,000 of the transportation infrastructure account--state appropriation, and $311,000 of the essential rail assistance account -- state appropriation are for statewide emergent freight rail assistance projects identified in the LEAP transportation document referenced in (a) of this subsection.
     (2) Unsuccessful 2012 freight rail assistance program grant applicants may be awarded freight rail investment bank program loans, if eligible. ((If any funds remain in the freight rail investment bank or freight rail assistance program reserves (projects F01001A and F01000A), or any approved grants or loans are terminated,)) The department shall issue a call for projects for the freight rail investment bank loan program and the freight rail assistance grant program, and shall evaluate the applications in a manner consistent with past practices as specified in section 309, chapter 367, Laws of 2011. By November 1, ((2013)) 2014, the department shall submit a prioritized list of recommended projects to the office of financial management and the transportation committees of the legislature.
     (3) (($314,647,000)) $424,400,000 of the multimodal transportation account--federal appropriation and (($4,867,000)) $10,658,000 of the multimodal transportation account--state appropriation are provided solely for expenditures related to passenger high-speed rail grants. Except for the Mount Vernon project (P01101A), the multimodal transportation account--state appropriation funds reflect one and one-half percent of the total project funds, and are provided solely for expenditures that are not eligible for federal reimbursement. Of the amounts provided in this subsection, $31,500,000 of the multimodal transportation account--federal appropriation is provided solely for the purchase of two new train sets for the state-supported intercity passenger rail service. The department must apply for any federal waivers required to purchase the new train sets, as allowable under existing competitive bidding practices, and seek federal funds in addition to those available from the high-speed rail grants.
     (4) As allowable under federal rail authority rules and existing competitive bidding practices, when purchasing new train sets, the department shall give preference to bidders that propose train sets with characteristics and maintenance requirements most similar to those currently owned by the department.
     (5) The department shall provide quarterly reports to the office of financial management and the transportation committees of the legislature regarding applications that the department submits for federal funds and the status of such applications.
     (6)(a) (($550,000)) $709,000 of the essential rail assistance account -- state appropriation, $241,000 of the transportation infrastructure account--state appropriation, and $1,893,000 of the multimodal transportation account--state appropriation are provided solely for the purpose of rehabilitation and maintenance of the Palouse river and Coulee City railroad line (project F01111B). The department shall complete an evaluation and assessment of future maintenance needs on the line to ensure appropriate levels of state investment.
     (b) Expenditures from the essential rail assistance account--state appropriation in this section may not exceed the combined total of:
     (i) Revenues deposited into the essential rail assistance account from leases and sale of property pursuant to RCW 47.76.290; and
     (ii) Revenues transferred from the miscellaneous program account to the essential rail assistance account, pursuant to RCW 47.76.360, for the purpose of sustaining the grain train program by maintaining the Palouse river and Coulee City railroad line.
     (7) (($31,500,000 of the multimodal transportation account--federal appropriation is provided solely for the purchase of two new train sets for the state-supported intercity passenger rail service. The department must apply for any federal waivers required to purchase the new train sets, as allowable under existing competitive bidding practices, and seek federal funds in addition to those available from the high-speed rail grants)) (a) When the department identifies a prospective rail project that may have strategic significance for the state, or at the request of a proponent of a prospective rail project or a member of the legislature, the department shall evaluate the prospective project according to the cost-benefit methodology developed during the 2008 interim using the legislative priorities specified in (b) of this subsection. The department shall report its cost-benefit evaluation of the prospective rail project, as well as the department's best estimate of an appropriate construction schedule and total project costs, to the office of financial management and the transportation committees of the legislature.
     (b) The legislative priorities to be used in the cost-benefit methodology are, in order of relative importance:
     (i) Economic, safety, or environmental advantages of freight movement by rail compared to alternative modes;
     (ii) Self-sustaining economic development that creates family-wage jobs;
     (iii) Preservation of transportation corridors that would otherwise be lost;
     (iv) Increased access to efficient and cost-effective transport to market for Washington's agricultural and industrial products;
     (v) Better integration and cooperation within the regional, national, and international systems of freight distribution; and
     (vi) Mitigation of impacts of increased rail traffic on communities
.

     *Sec. 310 was partially vetoed. See message at end of chapter.

Sec. 311   2013 c 306 s 311 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- LOCAL PROGRAMS -- PROGRAM Z -- CAPITAL
Highway Infrastructure Account -- State Appropriation . . . . . . . . . . . . $207,000
Highway Infrastructure Account -- Federal
     Appropriation . . . . . . . . . . . . $1,602,000
((Freight Mobility Investment Account -- State
     Appropriation . . . . . . . . . . . . $11,794,000
))
Transportation Partnership Account -- State
     Appropriation . . . . . . . . . . . . (($7,214,000))
       $9,236,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . (($11,255,000))
       $8,915,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($6,918,000))
       $2,201,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . (($28,413,000))
       $34,581,000
((Freight Mobility Multimodal Account -- State
     Appropriation . . . . . . . . . . . . $9,736,000
Freight Mobility Multimodal Account -- Private/Local
     Appropriation . . . . . . . . . . . . $1,320,000
))
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($13,913,000))
       $18,740,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($92,372,000))
       $75,482,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Except as provided otherwise in this section, the entire appropriations in this section are provided solely for the projects and activities as listed by project and amount in LEAP Transportation Document ((2013-2)) 2014-2 ALL PROJECTS as developed ((April 23, 2013)) March 10, 2014, Program - Local Programs (Z).
     (2) With each department budget submittal, the department shall provide an update on the status of the repayment of the twenty million dollars of unobligated federal funds authority advanced by the department in September 2010 to the city of Tacoma for the Murray Morgan/11th Street bridge project. The department may negotiate with the city of Tacoma an agreement for repayment of the funds over a period of up to twenty-five years at terms agreed upon by the department and the city. The funds previously advanced by the department to the city are not to be considered a general obligation of the city but instead an obligation payable from identified revenues set aside for the repayment of the funds.
     (3) The amounts identified in the LEAP transportation document referenced under subsection (1) of this section for pedestrian safety/safe routes to school are as follows:
     (a) (($12,160,000)) $16,543,000 of the multimodal transportation account--state appropriation, (($6,824,000)) $8,724,000 of the transportation partnership account--state appropriation, and $62,000 of the motor vehicle account--federal appropriation are provided solely for pedestrian and bicycle safety program projects.
     (b) $11,700,000 of the motor vehicle account--federal appropriation((, $5,200,000 of the motor vehicle account--state appropriation,)) and $6,750,000 of the highway safety account--state appropriation are provided solely for newly selected safe routes to school projects, and (($3,400,000)) $6,503,000 of the motor vehicle account--federal appropriation and (($2,055,000)) $2,165,000 of the highway safety account--state appropriation are reappropriated for safe routes to school projects selected in the previous biennia. The amount provided for new projects is consistent with federal funding levels from the 2011-2013 omnibus transportation appropriations act and the intent of the fee increases in chapter 74, Laws of 2012 and chapter 80, Laws of 2012. ((The motor vehicle account--state appropriation in this subsection (3)(b) is the amount made available by the repeal of the deduction from motor vehicle fuel tax liability for handling losses of motor vehicle fuel, as identified in chapter . . . (Substitute House Bill No. 2041), Laws of 2013 (handling losses of motor vehicle fuel). If chapter . . . (Substitute House Bill No. 2041), Laws of 2013 is not enacted by June 30, 2013, the motor vehicle account--state appropriation in this subsection (3)(b) lapses.))
     (4) (($84,000 of the motor vehicle account--state appropriation, $3,250,000 of the motor vehicle account--federal appropriation, $2,450,000 of the highway safety account--state appropriation, $11,794,000 of the freight mobility investment account--state appropriation, $9,736,000 of the freight mobility multimodal account--state appropriation, and $1,320,000 of the freight mobility multimodal account--private/local appropriation are provided solely for the projects and activities as listed by project and amount in LEAP Transportation Document 2013-B as developed April 23, 2013. If chapter . . . (Substitute House Bill No. 1256), Laws of 2013 is enacted by June 30, 2013, the amounts provided in this subsection lapse.
     (5)
)) The department may enter into contracts and make expenditures for projects on behalf of and selected by the freight mobility strategic investment board from the amounts provided in section 301 of this act.
     (((6))) (5) The department shall submit a report to the transportation committees of the legislature by December 1, 2013, and December 1, 2014, on the status of projects funded as part of the pedestrian safety/safe routes to school grant program (0LP600P). The report must include, but is not limited to, a list of projects selected and a brief description of each project's status.
     (((7))) (6) $50,000 of the motor vehicle account--state appropriation is provided solely for the installation of a guard rail on Deer Harbor Road in San Juan county (L2220054).

Sec. 312   2013 c 306 s 312 (uncodified) is amended to read as follows:
ANNUAL REPORTING REQUIREMENTS FOR CAPITAL PROGRAM
     (1) As part of its budget submittal for the ((2014 supplemental)) 2015 biennial budget, the department of transportation shall provide an update to the report provided to the legislature in 2013 that: (a) Compares the original project cost estimates approved in the 2003 and 2005 project lists to the completed cost of the project, or the most recent legislatively approved budget and total project costs for projects not yet completed; (b) identifies highway projects that may be reduced in scope and still achieve a functional benefit; (c) identifies highway projects that have experienced scope increases and that can be reduced in scope; (d) identifies highway projects that have lost significant local or regional contributions that were essential to completing the project; and (e) identifies contingency amounts allocated to projects.
     (2) As part of its budget submittal for the ((2014 supplemental)) 2015 biennial budget, the department of transportation shall provide an annual report on the number of toll credits the department has accumulated and how the department has used the toll credits.

TRANSFERS AND DISTRIBUTIONS

Sec. 401   2013 c 306 s 401 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALES DISCOUNTS AND DEBT TO BE PAID BY MOTOR VEHICLE ACCOUNT AND TRANSPORTATION FUND REVENUE
Transportation Partnership Account -- State
     Appropriation . . . . . . . . . . . . (($10,406,000))
       $3,099,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($450,000))
       $187,000
State Route Number 520 Corridor Account -- State
     Appropriation . . . . . . . . . . . . $3,866,000
Highway Bond Retirement Account -- State
     Appropriation . . . . . . . . . . . . (($1,074,580,000))
       $1,086,801,000
Ferry Bond Retirement Account -- State Appropriation . . . . . . . . . . . . $31,824,000
Transportation Improvement Board Bond Retirement
     Account -- State Appropriation . . . . . . . . . . . . (($16,267,000))
       $16,268,000
Nondebt-Limit Reimbursable Bond Retirement Account -- State
     Appropriation . . . . . . . . . . . . $25,825,000
Toll Facility Bond Retirement Account -- State
     Appropriation . . . . . . . . . . . . $52,050,000
((Toll Facility Bond Retirement Account--Federal
     Appropriation . . . . . . . . . . . . $64,982,000
))
Transportation 2003 Account (Nickel Account) -- State
     Appropriation . . . . . . . . . . . . (($1,958,000))
       $682,000
((Special Category C Account--State Appropriation . . . . . . . . . . . . $2,000))
          TOTAL APPROPRIATION . . . . . . . . . . . . (($1,282,210,000))
       $1,220,602,000

Sec. 402   2013 c 306 s 402 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES
Transportation Partnership Account -- State
     Appropriation . . . . . . . . . . . . (($1,156,000))
       $588,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($50,000))
       $32,000
State Route Number 520 Corridor Account -- State
     Appropriation . . . . . . . . . . . . $531,000
Transportation 2003 Account (Nickel Account) -- State
     Appropriation . . . . . . . . . . . . (($218,000))
       $123,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($1,955,000))
       $1,274,000

NEW SECTION.  Sec. 403   A new section is added to 2013 c 306 (uncodified) to read as follows:
FOR THE STATE TREASURER -- BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR DEBT TO BE PAID BY STATUTORILY PRESCRIBED REVENUE

Toll Facility Bond Retirement Account--Federal
     Appropriation . . . . . . . . . . . . $69,913,000

Sec. 404   2013 c 306 s 404 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- STATE REVENUES FOR DISTRIBUTION
Motor Vehicle Account--State Appropriation: For
     motor vehicle fuel tax distributions to cities
     and counties . . . . . . . . . . . . (($474,610,000))
       $478,598,000

Sec. 405   2013 c 306 s 405 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- TRANSFERS
Motor Vehicle Account--State Appropriation: For
     motor vehicle fuel tax refunds and statutory
     transfers . . . . . . . . . . . . (($1,235,491,000))
       $1,242,728,000

Sec. 406   2013 c 306 s 406 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF LICENSING -- TRANSFERS
Motor Vehicle Account--State Appropriation: For motor
     vehicle fuel tax refunds and transfers . . . . . . . . . . . . (($138,627,000))
       $138,494,000

Sec. 407   2013 c 306 s 407 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- ADMINISTRATIVE TRANSFERS
     (1) Recreational Vehicle Account -- State
Appropriation: For transfer to the Motor Vehicle
Account -- State . . . . . . . . . . . . $1,300,000
     (2) Multimodal Transportation Account -- State
Appropriation: For transfer to the Puget Sound
Ferry Operations Account -- State . . . . . . . . . . . . $13,000,000
     (3) Rural Mobility Grant Program Account -- State
Appropriation: For transfer to the Multimodal
Transportation Account -- State . . . . . . . . . . . . $3,000,000
     (4) Motor Vehicle Account -- State
Appropriation: For transfer to the Special Category C
Account -- State . . . . . . . . . . . . $1,500,000
     (5) Capital Vessel Replacement Account -- State
Appropriation: For transfer to the Transportation 2003
Account (Nickel Account) -- State . . . . . . . . . . . . (($7,702,000))
       $7,571,000
     (6) Multimodal Transportation Account--State
Appropriation: For transfer to the Public Transportation
Grant Program Account--State . . . . . . . . . . . . $26,000,000
     (7) Motor Vehicle Account--State Appropriation:
For transfer to the Puget Sound Ferry Operations
Account--State . . . . . . . . . . . . $28,000,000
     (8) Motor Vehicle Account--State Appropriation:
For transfer to the Puget Sound Capital Construction
Account--State . . . . . . . . . . . . $28,000,000
     (9) State Route Number 520 Civil Penalties
Account--State Appropriation: For transfer to the
State Route Number 520 Corridor Account--State . . . . . . . . . . . . $886,000
     (10) Multimodal Transportation Account--State
Appropriation: For transfer to the Highway Safety
Account--State . . . . . . . . . . . . (($10,000,000))
       $14,000,000
     (11) Motor Vehicle Account--State Appropriation:
For transfer to the State Patrol Highway
Account--State . . . . . . . . . . . . $27,000,000
     (12) Highway Safety Account--State Appropriation:
For transfer to the Puget Sound Ferry Operations
Account--State . . . . . . . . . . . . $42,000,000
     (13) Advanced Environmental Mitigation Revolving
Account--State Appropriation: For transfer to the Motor
Vehicle Account--State . . . . . . . . . . . . $2,000,000
     (14) Advanced Right-of-Way Revolving Fund--State
Appropriation: For transfer to the Motor Vehicle
Account--State . . . . . . . . . . . . $6,000,000
     (15) Tacoma Narrows Toll Bridge Account--State
Appropriation: For transfer to the Motor Vehicle
Account--State . . . . . . . . . . . . $950,000
     (16) License Plate Technology Account--State
Appropriation: For transfer to the Highway Safety
Account--State . . . . . . . . . . . . $3,000,000
     (17) Motor Vehicle Account--State Appropriation:
For transfer to the Transportation Equipment
Fund--State . . . . . . . . . . . . $3,915,000
     (18) ((Multimodal Transportation Account--State
Appropriation: For transfer to the Motor Vehicle
Account--State . . . . . . . . . . . . $10,000,000
))
     (a) Capital Vessel Replacement Account--State
Appropriation: For transfer to Transportation 2003
Account (Nickel Account)--State . . . . . . . . . . . . $11,128,000
     (b) If chapter . . . (Engrossed Second Substitute House Bill No. 1129), Laws of 2014 (ferry vessel replacement) is not enacted by June 30, 2014, the amount transferred in (a) of this subsection lapses.
     (19) Motor Vehicle Account--State Appropriation: For
transfer to the Interstate 405 Express Toll Lanes
Operations Account--State . . . . . . . . . . . . $2,019,000

COMPENSATION

Sec. 501   2013 c 306 s 517 (uncodified) is amended to read as follows:
COMPENSATION--REPRESENTED EMPLOYEES--SUPER COALITION--INSURANCE BENEFITS
     No agreement has been reached between the governor and the health care super coalition under chapter 41.80 RCW for the 2013-2015 fiscal biennium. Appropriations in this act for fiscal year 2014 for state agencies, including institutions of higher education, are sufficient to continue the provisions of the 2011-2013 collective bargaining agreement. An agreement was reached between the governor and the health care super coalition under chapter 41.80 RCW for fiscal year 2015. The agreement includes employer contributions to premiums at eighty-five percent of the total weighted average of the projected health care premiums. Appropriations in this act for fiscal year 2015 are sufficient to fund the provisions of the fiscal year 2015 collective bargaining agreement, and are subject to the following conditions and limitations:
     (1)(a) The monthly employer funding rate for insurance benefit premiums, public employees' benefits board administration, and the uniform medical plan must not exceed $809 per eligible employee for fiscal year 2014. For fiscal year 2015, the monthly employer funding rate must not exceed (($820)) $703 per eligible employee.
     (b) In order to achieve the level of funding provided for health benefits, the public employees' benefits board must require any of the following: Employee premium copayments; increases in point-of-service cost sharing; the implementation of managed competition; or other changes to benefits consistent with the collective bargaining agreement and RCW 41.05.065.
     (c) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts must not be used for administrative expenditures.
     (2) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for medicare, pursuant to RCW 41.05.085. For calendar years 2014 and 2015, the subsidy must be $150.00 per month.

Sec. 502   2013 c 306 s 518 (uncodified) is amended to read as follows:
COMPENSATION--REPRESENTED EMPLOYEES OUTSIDE SUPER COALITION--INSURANCE BENEFITS
     Appropriations for state agencies in this act are sufficient for represented employees outside the super coalition for health benefits and are subject to the following conditions and limitations:
     (1)(a) The monthly employer funding rate for insurance benefit premiums, public employees' benefits board administration, and the uniform medical plan must not exceed $809 per eligible employee for fiscal year 2014. For fiscal year 2015, the monthly employer funding rate must not exceed (($820)) $703 per eligible employee.
     (b) In order to achieve the level of funding provided for health benefits, the public employees' benefits board shall require any of the following: Employee premium copayments; increases in point-of-service cost sharing; the implementation of managed competition; or other changes to benefits consistent with RCW 41.05.065.
     (c) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts must not be used for administrative expenditures.
     (2) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for medicare, pursuant to RCW 41.05.085. For calendar years 2014 and 2015, the subsidy must be $150.00 per month.

Sec. 503   2013 c 306 s 519 (uncodified) is amended to read as follows:
COMPENSATION--NONREPRESENTED EMPLOYEES--INSURANCE BENEFITS
     Appropriations for state agencies in this act are sufficient for nonrepresented state employee health benefits for state agencies, including institutions of higher education, and are subject to the following conditions and limitations:
     (1)(a) The monthly employer funding rate for insurance benefit premiums, public employees' benefits board administration, and the uniform medical plan must not exceed $809 per eligible employee for fiscal year 2014. For fiscal year 2015, the monthly employer funding rate must not exceed (($820)) $703 per eligible employee.
     (b) In order to achieve the level of funding provided for health benefits, the public employees' benefits board shall require any of the following: Employee premium copayments; increases in point-of-service cost sharing; the implementation of managed competition; or make other changes to benefits consistent with RCW 41.05.065.
     (c) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts must not be used for administrative expenditures.
     (2) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for medicare, pursuant to RCW 41.05.085. For calendar years 2014 and 2015, the subsidy must be $150.00 per month.

IMPLEMENTING PROVISIONS

Sec. 601   2013 c 306 s 603 (uncodified) is amended to read as follows:
FUND TRANSFERS
     (1) The transportation 2003 projects or improvements and the 2005 transportation partnership projects or improvements are listed in the LEAP list titled ((2013-1)) 2014-1 as developed ((April 23, 2013)) March 10, 2014, which consists of a list of specific projects by fund source and amount over a ten-year period. Current fiscal biennium funding for each project is a line-item appropriation, while the outer year funding allocations represent a ten-year plan. The department is expected to use the flexibility provided in this section to assist in the delivery and completion of all transportation partnership account and transportation 2003 account (nickel account) projects on the LEAP transportation documents referenced in this act. However, this section does not apply to the I-5/Columbia River Crossing project (400506A). For the 2011-2013 and 2013-2015 project appropriations, unless otherwise provided in this act, the director of financial management may authorize a transfer of appropriation authority between projects funded with transportation 2003 account (nickel account) appropriations, or transportation partnership account appropriations, in order to manage project spending and efficiently deliver all projects in the respective program under the following conditions and limitations:
     (a) Transfers may only be made within each specific fund source referenced on the respective project list;
     (b) Transfers from a project may not be made as a result of the reduction of the scope of a project or be made to support increases in the scope of a project;
     (c) Each transfer between projects may only occur if the director of financial management finds that any resulting change will not hinder the completion of the projects as approved by the legislature. Until the legislature reconvenes to consider the 2014 supplemental omnibus transportation appropriations act, any unexpended 2011-2013 appropriation balance as approved by the office of financial management, in consultation with the legislative staff of the house of representatives and senate transportation committees, may be considered when transferring funds between projects;
     (d) Transfers from a project may be made if the funds appropriated to the project are in excess of the amount needed to complete the project;
     (e) Transfers may not occur for projects not identified on the applicable project list;
     (f) Transfers may not be made while the legislature is in session; and
     (g) Transfers between projects may be made, without the approval of the director of the office of financial management, by the department of transportation until the transfer amount by project exceeds two hundred fifty thousand dollars, or ten percent of the total project, whichever is less. These transfers must be reported quarterly to the director of financial management and the chairs of the house of representatives and senate transportation committees.
     (2) At the time the department submits a request to transfer funds under this section, a copy of the request must be submitted to the transportation committees of the legislature.
     (3) The office of financial management shall work with legislative staff of the house of representatives and senate transportation committees to review the requested transfers in a timely manner.
     (4) The office of financial management shall document approved transfers and schedule changes in the transportation executive information system, compare changes to the legislative baseline funding and schedules identified by project identification number identified in the LEAP transportation documents referenced in this act, and transmit revised project lists to chairs of the transportation committees of the legislature on a quarterly basis.

NEW SECTION.  Sec. 602   A new section is added to 2013 c 306 (uncodified) to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION
     Except as otherwise provided in this act, the department may enter into a new agreement with King county for the purpose of public transportation mitigation for the SR 99/Alaskan Way Viaduct -Replacement project through the end of the 2013-2015 fiscal biennium. Before expending any funds, the department must inform the transportation committees of the legislature of the amount and source of the funds.

NEW SECTION.  Sec. 603   A new section is added to 2013 c 306 (uncodified) to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION
     (1) The department shall submit a report to the transportation committees of the legislature detailing engineering errors on highway construction projects resulting in project cost increases in excess of five hundred thousand dollars. The department must submit a full report within ninety days of the negotiated change order resulting from the engineering error.
     (2) The department's full report must include an assessment and review of:
     (a) How the engineering error happened;
     (b) The department of the employee or employees responsible for the engineering error, without disclosing the name of the employee or employees;
     (c) What corrective action was taken;
     (d) The estimated total cost of the engineering error and how the department plans to mitigate that cost;
     (e) Whether the cost of the engineering error will impact the overall project financial plan; and
     (f) What action the secretary has recommended to avoid similar engineering errors in the future.

MISCELLANEOUS 2013-2015 FISCAL BIENNIUM

Sec. 701   RCW 47.28.030 and 2011 c 367 s 710 are each amended to read as follows:
     (1)(a) A state highway shall be constructed, altered, repaired, or improved, and improvements located on property acquired for right-of-way purposes may be repaired or renovated pending the use of such right-of-way for highway purposes, by contract or state forces. The work or portions thereof may be done by state forces when the estimated costs thereof are less than fifty thousand dollars and effective July 1, 2005, sixty thousand dollars.
     (b) When delay of performance of such work would jeopardize a state highway or constitute a danger to the traveling public, the work may be done by state forces when the estimated cost thereof is less than eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars.
     (c) When the department of transportation determines to do the work by state forces, it shall enter a statement upon its records to that effect, stating the reasons therefor.
     (d) To enable a larger number of small businesses and veteran, minority, and women contractors to effectively compete for department of transportation contracts, the department may adopt rules providing for bids and award of contracts for the performance of work, or furnishing equipment, materials, supplies, or operating services whenever any work is to be performed and the engineer's estimate indicates the cost of the work would not exceed eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars.
     (2) The rules adopted under this section:
     (a) Shall provide for competitive bids to the extent that competitive sources are available except when delay of performance would jeopardize life or property or inconvenience the traveling public; and
     (b) Need not require the furnishing of a bid deposit nor a performance bond, but if a performance bond is not required then progress payments to the contractor may be required to be made based on submittal of paid invoices to substantiate proof that disbursements have been made to laborers, material suppliers, mechanics, and subcontractors from the previous partial payment; and
     (c) May establish prequalification standards and procedures as an alternative to those set forth in RCW 47.28.070, but the prequalification standards and procedures under RCW 47.28.070 shall always be sufficient.
     (3) The department of transportation shall comply with such goals and rules as may be adopted by the office of minority and women's business enterprises to implement chapter 39.19 RCW with respect to contracts entered into under this chapter. The department may adopt such rules as may be necessary to comply with the rules adopted by the office of minority and women's business enterprises under chapter 39.19 RCW.
     (4)(a) For the period of March 15, ((2010)) 2014, through June 30, ((2013)) 2015, work for less than one hundred twenty thousand dollars may be performed on ferry vessels and terminals by state forces.
     (b) The department shall hire a disinterested, third party to conduct an independent analysis to identify methods of reducing out-of-service times for vessel maintenance, preservation, and improvement projects. The analysis must include options that consider consolidating work while vessels are at shipyards by having state forces perform services traditionally performed at Eagle Harbor at the shipyard and decreasing the allowable time at shipyards. The analysis must also compare the out-of-service vessel times of performing services by state forces versus contracting out those services which in turn must be used to form a recommendation as to what the threshold of work performed on ferry vessels and terminals by state forces should be. This analysis must be presented to the transportation committees of the senate and house of representatives by December 1, 2010.
     (c) The department shall develop a proposed ferry vessel maintenance, preservation, and improvement program and present it to the transportation committees of the senate and house of representatives by December 1, 2010. The proposed program must:
     (i) Improve the basis for budgeting vessel maintenance, preservation, and improvement costs and for projecting those costs into a sixteen-year financial plan;
     (ii) Limit the amount of planned out-of-service time to the greatest extent possible, including options associated with department staff as well as commercial shipyards; and
     (iii) Be based on the service plan in the capital plan, recognizing that vessel preservation and improvement needs may vary by route.
     (d) In developing the proposed ferry vessel maintenance, preservation, and improvement program, the department shall consider the following, related to reducing vessel out-of-service time:
     (i) The costs compared to benefits of Eagle Harbor repair and maintenance facility operations options to include staffing costs and benefits in terms of reduced out-of-service time;
     (ii) The maintenance requirements for on-vessel staff, including the benefits of a systemwide standard;
     (iii) The costs compared to benefits of staff performing preservation or maintenance work, or both, while the vessel is underway, tied up between sailings, or not deployed;
     (iv) A review of the department's vessel maintenance, preservation, and improvement program contracting process and contractual requirements;
     (v) The costs compared to benefits of allowing for increased costs associated with expedited delivery;
     (vi) A method for comparing the anticipated out-of-service time of proposed projects and other projects planned during the same construction period;
     (vii) Coordination with required United States coast guard dry dockings;
     (viii) A method for comparing how proposed projects relate to the service requirements of the route on which the vessel normally operates; and
     (ix) A method for evaluating the ongoing maintenance and preservation costs associated with proposed improvement projects.

Sec. 702   RCW 81.53.281 and 2003 c 190 s 3 are each amended to read as follows:
     There is hereby created in the state treasury a "grade crossing protective fund" to carry out the provisions of RCW 81.53.261, 81.53.271, 81.53.281, 81.53.291, and 81.53.295; for grants and/or subsidies to public, private, and nonprofit entities for rail safety projects authorized or ordered by the commission; and for personnel and associated costs related to supervising and administering rail safety grants and/or subsidies. During the 2013-2015 fiscal biennium, funds in this account may also be used to conduct the study required under section 102 of this act. The commission shall transfer from the public service revolving fund's miscellaneous fees and penalties accounts moneys appropriated for these purposes as needed. At the time the commission makes each allocation of cost to said grade crossing protective fund, it shall certify that such cost shall be payable out of said fund. When federal-aid highway funds are involved, the department of transportation shall, upon entry of an order by the commission requiring the installation or upgrading of a grade crossing protective device, submit to the commission an estimate for the cost of the proposed installation and related work. Upon receipt of the estimate the commission shall pay to the department of transportation the percentage of the estimate specified in RCW 81.53.295, as now or hereafter amended, to be used as the grade crossing protective fund portion of the cost of the installation and related work.
     The commission may adopt rules for the allocation of money from the grade crossing protective fund.

NEW SECTION.  Sec. 703   A new section is added to 2013 c 306 (uncodified) to read as follows:
     The office of the state treasurer shall explore the fiscal implications with respect to outstanding motor vehicle fuel transportation bonds and to future transportation bond sales, relating to any reduction, refunding, crediting, or repeal of the motor vehicle fuel tax, in whole or in part, that may occur in a transition to a potential road usage charge by which transportation activities may be funded in the future. The exploration of fiscal implications must examine possible effects on the state credit rating, interest rates, and other factors that affect the cost of financing transportation projects. The draft report of this work must be shared with the transportation committees of the legislature, the transportation commission, and the office of financial management by September 1, 2014. A final report must be provided to the transportation committees of the legislature, the transportation commission, and the office of financial management by December 31, 2014.

Sec. 704   RCW 82.70.020 and 2013 c 306 s 718 are each amended to read as follows:
     (1) Employers in this state who are taxable under chapter 82.04 or 82.16 RCW and provide financial incentives to their own or other employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before July 1, ((2014)) 2015, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of employees for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per employee per fiscal year.
     (2) Property managers who are taxable under chapter 82.04 or 82.16 RCW and provide financial incentives to persons employed at a worksite in this state managed by the property manager for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before July 1, ((2014)) 2015, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of these persons for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per person per fiscal year.
     (3) The credit under this section is equal to the amount paid to or on behalf of each employee multiplied by fifty percent, but may not exceed sixty dollars per employee per fiscal year. No refunds may be granted for credits under this section.
     (4) A person may not receive credit under this section for amounts paid to or on behalf of the same employee under both chapters 82.04 and 82.16 RCW.
     (5) A person may not take a credit under this section for amounts claimed for credit by other persons.

Sec. 705   RCW 82.70.040 and 2013 c 306 s 719 are each amended to read as follows:
     (1)(a)(i) The department shall keep a running total of all credits allowed under RCW 82.70.020 during each fiscal year. The department shall not allow any credits that would cause the total amount allowed to exceed two million seven hundred fifty thousand dollars in any fiscal year. This limitation includes any deferred credits carried forward under subsection (2)(b)(i) of this section from prior years.
     (ii) During the 2013-2015 fiscal biennium, the department shall not allow any credits that would cause the total amount allowed to exceed one million five hundred thousand dollars in any fiscal year. This limitation includes any deferred credits carried forward under subsection (2)(b)(i) of this section from prior years.
     (b) If the total amount of credit applied for by all applicants in any year exceeds the limit in this subsection, the department shall ratably reduce the amount of credit allowed for all applicants so that the limit in this subsection is not exceeded. If a credit is reduced under this subsection, the amount of the reduction may not be carried forward and claimed in subsequent fiscal years.
     (2)(a) Tax credits under RCW 82.70.020 may not be claimed in excess of the amount of tax otherwise due under chapter 82.04 or 82.16 RCW.
     (b)(i) Through June 30, 2005, a person with taxes equal to or in excess of the credit under RCW 82.70.020, and therefore not subject to the limitation in (a) of this subsection, may elect to defer tax credits for a period of not more than three years after the year in which the credits accrue. No credits deferred under this subsection (2)(b)(i) may be used after June 30, 2008. A person deferring tax credits under this subsection (2)(b)(i) must submit an application as provided in RCW 82.70.025 in the year in which the deferred tax credits will be used. This application is subject to the provisions of subsection (1) of this section for the year in which the tax credits will be applied. If a deferred credit is reduced under subsection (1)(b) of this section, the amount of deferred credit disallowed because of the reduction may be carried forward as long as the period of deferral does not exceed three years after the year in which the credit was earned.
     (ii) For credits approved by the department after June 30, 2005, the approved credit may be carried forward to subsequent years until used. Credits carried forward as authorized by this subsection are subject to the limitation in subsection (1)(a) of this section for the fiscal year for which the credits were originally approved.
     (3) No person shall be approved for tax credits under RCW 82.70.020 in excess of two hundred thousand dollars in any fiscal year. This limitation does not apply to credits carried forward from prior years under subsection (2)(b) of this section.
     (4) No person may claim tax credits after June 30, ((2014)) 2015.
     (5) Credits may not be carried forward other than as authorized in subsection (2)(b) of this section.
     (6) No person is eligible for tax credits under RCW 82.70.020 if the additional revenues for the multimodal transportation account created by Engrossed Substitute House Bill No. 2231 are terminated.

Sec. 706   RCW 82.70.050 and 2003 c 364 s 5 are each amended to read as follows:
     (1) During the 2013-2015 fiscal biennium, the director shall on the 25th of February, May, August, and November of each year advise the state treasurer of the amount of credit taken under RCW 82.70.020 during the preceding calendar quarter ending on the last day of December, March, June, and September, respectively.
     (2) On the last day of March, June, September, and December of each year, the state treasurer, based upon information provided by the department, shall deposit to the general fund a sum equal to the dollar amount of the credit provided under RCW 82.70.020 from the multimodal transportation account.

Sec. 707   RCW 82.70.900 and 2013 c 306 s 720 are each amended to read as follows:
     This chapter expires ((July 1, 2014, except for RCW 82.70.050, which expires January 1, 2015)) June 30, 2015.

Sec. 708   RCW 90.03.525 and 2005 c 319 s 140 are each amended to read as follows:
     (1) The rate charged by a local government utility to the department of transportation with respect to state highway right-of-way or any section of state highway right-of-way for the construction, operation, and maintenance of storm water control facilities under chapters 35.67, 35.92, 36.89, 36.94, 57.08, and 86.15 RCW, shall be thirty percent of the rate for comparable real property, except as otherwise provided in this section. The rate charged to the department with respect to state highway right-of-way or any section of state highway right-of-way within a local government utility's jurisdiction shall not, however, exceed the rate charged for comparable city street or county road right-of-way within the same jurisdiction. The legislature finds that the aforesaid rates are presumptively fair and equitable because of the traditional and continuing expenditures of the department of transportation for the construction, operation, and maintenance of storm water control facilities designed to control surface water or storm water runoff from state highway rights-of-way.
     (2) Charges paid under subsection (1) of this section by the department of transportation must be used solely for storm water control facilities that directly reduce ((state highway)) runoff impacts or implementation of best management practices that will reduce the need for such facilities. ((By January 1st of each year, beginning with calendar year 1997, the local government utility, in coordination with the department, shall develop a plan for the expenditure of the charges for that calendar year. The plan must be consistent with the objectives identified in RCW 90.78.010. In addition, beginning with the submittal for 1998, the utility shall provide a progress report on the use of charges assessed for the prior year. No charges may be paid until the plan and report have been submitted to the department.))
     (3) The utility imposing the charge and the department of transportation may, however, agree to either higher or lower rates with respect to the construction, operation, or maintenance of any specific storm water control facilities ((based upon the annual plan prescribed in subsection (2) of this section)). If, after mediation, the local government utility and the department of transportation cannot agree upon the proper rate, either may commence an action in the superior court for the county in which the state highway right-of-way is located to establish the proper rate. The court in establishing the proper rate shall take into account the extent and adequacy of storm water control facilities constructed by the department and the actual benefits to the sections of state highway rights-of-way from storm water control facilities constructed, operated, and maintained by the local government utility. Control of surface water runoff and storm water runoff from state highway rights-of-way shall be deemed an actual benefit to the state highway rights-of-way. The rate for sections of state highway right-of-way as determined by the court shall be set forth in terms of the percentage of the rate for comparable real property, but shall in no event exceed the rate charged for comparable city street or county road right-of-way within the same jurisdiction.
     (4) The legislature finds that the federal clean water act (national pollutant discharge elimination system, 40 C.F.R. parts 122-124), the state water pollution control act, chapter 90.48 RCW, and the highway runoff program under chapter 90.71 RCW, mandate the treatment and control of storm water runoff from state highway rights-of-way owned by the department of transportation. Appropriations made by the legislature to the department of transportation for the construction, operation, and maintenance of storm water control facilities are intended to address applicable federal and state mandates related to storm water control and treatment. This section is not intended to limit opportunities for sharing the costs of storm water improvements between cities, counties, and the state.

MISCELLANEOUS

NEW SECTION.  Sec. 801   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. 802   Section 701 of this act takes effect if chapter . . . (Engrossed House Bill No. 2684), Laws of 2014 (ferry vessel and terminal work) is not enacted by April 15, 2014.

NEW SECTION.  Sec. 803   Section 708 of this act expires June 30, 2015.

NEW SECTION.  Sec. 804   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.

(End of Bill)



     INDEX       PAGE #


ANNUAL REPORTING REQUIREMENTS FOR CAPITAL PROGRAM . . . . . . . . . . . . 70
COMPENSATION
     NONREPRESENTED EMPLOYEES--INSURANCE BENEFITS . . . . . . . . . . . . 76
     REPRESENTED EMPLOYEES OUTSIDE SUPER COALITION--INSURANCE BENEFITS . . . . . . . . . . . . 75
     REPRESENTED EMPLOYEES--SUPER COALITION--INSURANCE BENEFITS . . . . . . . . . . . . 74
COUNTY ROAD ADMINISTRATION BOARD . . . . . . . . . . . . 6, 47
DEPARTMENT OF AGRICULTURE . . . . . . . . . . . . 3
DEPARTMENT OF ARCHAEOLOGY AND HISTORIC PRESERVATION . . . . . . . . . . . . 1
DEPARTMENT OF LICENSING . . . . . . . . . . . . 16
     TRANSFERS . . . . . . . . . . . . 72
DEPARTMENT OF TRANSPORTATION . . . . . . . . . . . . 79
     AVIATION -- PROGRAM F . . . . . . . . . . . . 28
     CHARGES FROM OTHER AGENCIES -- PROGRAM U . . . . . . . . . . . . 37
     ECONOMIC PARTNERSHIPS -- PROGRAM K . . . . . . . . . . . . 31
     FACILITIES -- PROGRAM D -- CAPITAL . . . . . . . . . . . . 48
     FACILITIES -- PROGRAM D -- OPERATING . . . . . . . . . . . . 27
     HIGHWAY MAINTENANCE -- PROGRAM M . . . . . . . . . . . . 32
     IMPROVEMENTS -- PROGRAM I . . . . . . . . . . . . 49
     INFORMATION TECHNOLOGY -- PROGRAM C . . . . . . . . . . . . 27
     LOCAL PROGRAMS -- PROGRAM Z -- CAPITAL . . . . . . . . . . . . 67
     LOCAL PROGRAMS -- PROGRAM Z -- OPERATING . . . . . . . . . . . . 45
     MARINE -- PROGRAM X . . . . . . . . . . . . 42
     PRESERVATION -- PROGRAM P . . . . . . . . . . . . 58
     PROGRAM DELIVERY MANAGEMENT AND SUPPORT -- PROGRAM H . . . . . . . . . . . . 28
     PUBLIC TRANSPORTATION--PROGRAM V . . . . . . . . . . . . 38
     RAIL -- PROGRAM Y--OPERATING . . . . . . . . . . . . 44
     RAIL -- PROGRAM Y -- CAPITAL . . . . . . . . . . . . 64
     TOLL OPERATIONS AND MAINTENANCE -- PROGRAM B . . . . . . . . . . . . 22
     TRAFFIC OPERATIONS -- PROGRAM Q--CAPITAL . . . . . . . . . . . . 60
     TRAFFIC OPERATIONS -- PROGRAM Q -- OPERATING . . . . . . . . . . . . 33
     TRANSPORTATION MANAGEMENT AND SUPPORT -- PROGRAM S . . . . . . . . . . . . 36
     TRANSPORTATION PLANNING, DATA, AND RESEARCH -- PROGRAM T . . . . . . . . . . . . 37
     WASHINGTON STATE FERRIES CONSTRUCTION -- PROGRAM W . . . . . . . . . . . . 60
FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD . . . . . . . . . . . . 14, 46
FUND TRANSFERS . . . . . . . . . . . . 77
JOINT TRANSPORTATION COMMITTEE . . . . . . . . . . . . 6
LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE . . . . . . . . . . . . 4
OFFICE OF FINANCIAL MANAGEMENT . . . . . . . . . . . . 3
STATE TREASURER
     ADMINISTRATIVE TRANSFERS . . . . . . . . . . . . 72
     BOND RETIREMENT AND INTEREST . . . . . . . . . . . . 70, 71, 72
     STATE REVENUES FOR DISTRIBUTION . . . . . . . . . . . . 72
     TRANSFERS . . . . . . . . . . . . 72
TRANSPORTATION COMMISSION . . . . . . . . . . . . 9
TRANSPORTATION IMPROVEMENT BOARD . . . . . . . . . . . . 6, 47
UTILITIES AND TRANSPORTATION COMMISSION . . . . . . . . . . . . 2
WASHINGTON STATE PATROL . . . . . . . . . . . . 14, 46
WASHINGTON TRAFFIC SAFETY COMMISSION . . . . . . . . . . . . 4


         Passed by the Senate March 12, 2014.
         Passed by the House March 11, 2014.
         Approved by the Governor April 4, 2014, with the exception of certain items that were vetoed.
         Filed in Office of Secretary of State April 4, 2014.

     Note: Governor's explanation of partial veto is as follows:

"I am returning herewith, without my approval as to Sections 201(5); 205(8); 206; 207(8); 208(13); 208(16); 213(7); 306(24); and 310(7)(a) and (b), page 66, line 29 through page 67, line 16, Engrossed Substitute Senate Bill No. 6001 entitled:

     "AN ACT Relating to transportation funding and appropriations."

Section 201(5), pages 5-6, Traffic Safety Commission, Funding for Target Zero Task Forces

This section would require the Traffic Safety Commission to continue to provide funding to counties for target zero task forces during the 2013-15 biennium based on levels that were in place on January 1, 2014. The Commission has conducted an extensive Lean-based review of the most effective strategies for implementing traffic safety programs locally. The proviso would affect the Commission's ability to allocate funding to achieve the greatest effect on safety. For this reason, I have vetoed Section 201(5).

The Traffic Safety Commission will continue to conduct stakeholder meetings in the counties that could be affected by this approach.

Section 205(8), pages 13-14, Transportation Commission, Statewide Transportation Plan

The Legislature provided funding for the Transportation Commission to complete the statewide transportation plan and fulfill current federal planning requirements by June 30, 2015. New federal rules will go into effect in the spring of 2016 and will require, among other things, an integrated performance measurement system. It is prudent to wait until the new federal regulations are released before updating the plan. For this reason, I have vetoed Section 205(8).

Section 206, page 14, Freight Mobility Strategic Investment Board, Appropriation Reduction

The proposed appropriation level reduces the Freight Mobility Strategic Investment Board's (Board) 2013-15 biennial budget by $25,000. This reduction results in an appropriation insufficient to sustain current operations. For this reason, I have vetoed Section 206.

During the remainder of the biennium, the Board will maintain a staffing level of two (2) FTEs after the current director retires. The Board will submit staffing and resource allocations for the ensuing biennium with its biennial budget submittal.

Section 207(8), page 16, Washington State Patrol, Security for United States Open

This proviso directs the Washington State Patrol (WSP) to coordinate and support local law enforcement at the United States Open national golf championship in Pierce County in providing traffic control and "other activities" within its existing budget. WSP services for such a significant event are likely to require additional appropriations from the Legislature. For this reason, I have vetoed Section 207(8).

WSP will work with Pierce County to develop a plan with respective responsibilities and estimated costs for further consideration in the 2015 legislative session.

Section 208(13), page 20, Department of Licensing, Intermittent-Use Trailer License Plates (E2SHB 1902)

This proviso provides appropriation authority for the implementation of Engrossed Second Substitute House Bill 1902, intermittent-use trailer license plates. E2SHB 1902 did not pass, so this subsection is unnecessary. For this reason, I have vetoed Section 208(13).

Section 208(16), page 20, Department of Licensing, Washington State Tree License Plates (EHB 2752)

This proviso provides appropriation authority for the implementation of Engrossed House Bill 2752, Washington state tree license plates. EHB 2752 did not pass, so this subsection is unnecessary. For this reason, I have vetoed Section 208(16).

Sections 213(7), page 30, Department of Transportation, Fish Barrier Removals (2SHB 2251)

This proviso directs the Department of Transportation to maximize available resources for eliminating fish passage barriers if Second Substitute House Bill 2251 did not pass. Second Substitute House Bill 2251 was approved during the 2014 legislative session, so this subsection is moot. For this reason, I have vetoed Section 213(7).

Section 306(24), pages 57-58, Department of Transportation, Quarry Road Transfer

This proviso directs the Department of Transportation (Department) to accept the transfer to the state highway system of Quarry Road. This proviso is unnecessary because the Department has reached agreement with Snohomish County to transfer Quarry Road to the state highway system. For this reason, I have vetoed Section 306(24).

Section 310(7)(a) and (b), page 66, line 29 through page 67, line 16, Department of Transportation, Rail Cost-Benefit Methodology

This proviso directs the Department of Transportation (Department) to use a cost-benefit methodology tool developed in 2008 for rail projects, which is the existing standard for departmental operations in analyzing Freight Rail Investment Bank and Freight Rail Assistance Program projects. Given this is current practice, there is no need to direct the Department to use this tool. For this reason, I have vetoed Section 310(7)(a) and (b), page 66, line 29 through page 67, line 16.

If for any reason a different approach is used, I am directing the Department to report to both the Office of Financial Management and legislative transportation committees about why it used an alternative approach.

For these reasons I have vetoed Sections 201(5); 205(8); 206; 207(8); 208(13); 208(16); 213(7); 306(24); and 310(7)(a) and (b), page 66, line 29 through page 67, line 16 of Engrossed Substitute Senate Bill No. 6001.

With the exception of Sections 201(5); 205(8); 206; 207(8); 208(13); 208(16); 213(7); 306(24); and 310(7)(a) and (b), page 66, line 29 through page 67, line 16, Engrossed Substitute Senate Bill No. 6001 is approved."