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Infrastructure, Transportation & Economic Development
AWC Priority
Transportation Benefit Districts (TBDs) (SHB 1858)
SHB 1858 was heard in the Senate Transportation Committee. This is a local tool for local transportation purposes. Please go to www.awcnet.org/documents/TBDFactSheet0307.pdf for a fact sheet on this bill.
The substitute bill will:
- Allow cities or counties to impose the first $20 of the vehicle fee if a TBD is jurisdiction-wide (the balance remains voter approved).
- Allow cities or counties to impose limited transportation impact fees, but prohibit "double-dipping" of existing impact fees and residential property.
AWC Priority
Changing Alternative Public Works Provisions (SHB 1506)
SHB 1506 is scheduled in the Senate Government Operations and Elections Committee is scheduled for Monday, March 26 at 10 am. This is the renewal and modification of the current General Contractor-Construction Manager (GC-CM) and Design Build (DB) public works authority. AWC will testify in support of the bill, but seek to include Design Build Authority for projects under $10 million. Please see the February 2 edition of the Bulletin for a detailed description on the substitute bill.
AWC Priority
Local Infrastructure Finance Tool (LIFT) (2SHB 1277/2SSB 5115)
2SHB 1277 passed the Senate Economic Development, Trade & Management Committee and has been referred to the Ways and Means Committee. The House Bill has been amended once again and is now consistent with E2SSB 5115 that passed the Senate. E2SSB 5115 passed the Senate on March 10 and was referred to the House Community & Economic Development & Trade Committee and is scheduled for Monday, March 26 at 1:30 pm.
2SHB 1277 will:
- Increase the limit of the annual state contribution to LIFT projects in the state from $5 million per year to $10 million per year;
- Allows more than one LIFT project per county;
- Requires that there must be evidence and findings that projects and local improvement financing will not contribute to sprawl (this is expected to be clarified in a forthcoming substitute)
- Retain an assessed value of $70 per square foot requirement; and
- Provide several technical changes that will make the authority more flexible.
At this point there is not a consensus between the House and Senate on the state contribution limit ($10M vs. $7.5M), and one per county limit (House) vs. no project limit per county.
Regional Transportation Commissions (RTC) (2SSB 5803)
2SSB 5803, which would create a regional transportation commission in Puget Sound, is scheduled for a hearing on Tuesday, March 27, at 3:30 p.m in the House Transportation Committee. This bill is the most far-reaching transportation policy bill this session and is becoming more complex, controversial, and potentially problematic for cities with each successive draft. For details on the bill, please see last week’s Bulletin.
Please note: We are expecting a striking amendment to this bill at the time of the hearing. As soon as the striking amendment is available, we will update the electronic version of the Bulletin.
Encouraging the Use of Cleaner Energy (2SHB 1303)
2SHB 1303 was heard earlier this week. As the bill title indicates, it has a variety of incentives and mandates to use clean energy in vehicles. Although AWC is generally supportive of the bill, we have concerns over the provision that requires all state and local fleets to satisfy their fuel needs with bio-fuels by the year 2015, unless the mandate is deemed impracticable by the Energy Freedom Coordinator. AWC, the counties, and transit agencies are working with the proponents of the bill to provide more flexible criteria in lieu of this mandate.
Changing Provisions Concerning Limitation of Claims Under a Construction Contract (SHB 1765)
SHB 1765 is scheduled in the Senate Judiciary on Friday, March 30 at 1 pm. As previously stated, the Associated General Contractors have identified this as their top priority in response to the Michael M Johnson Supreme Court ruling. AWC still has ongoing concerns on the need for any legislation and is especially concerned about subsection two of the bill that is considered a relief valve for the contracting community. Public Owners are continuing to review the bill and will request several amendments during testimony next week.
The House Capital Budget passed out of committee earlier this week. Kudo’s to Rep. Fromhold (D-Vancouver) and the Committee for including $19.17 million in grants to local governments (including reappropriations) within Puget Sound for municipal stormwater projects.
The House Transportation Budget was unveiled on Monday of this week and has already passed out of committee. Although we are in a "budget year", the budget was largely treated as a supplemental exercise due to the challenge of funding escalating project costs with fixed revenue streams. Consequently, there were not any new investment initiatives. Budget Highlights:
- $7.2 billion level-characterized as a "bare bones" budget
- No new projects were included in the budget at the state or local level
- Some of the projects that were deferred in the Governor’s original proposal were restored to their original timelines. (see below for other projects)
- A Management Reserve account was created. A small portion (up to 5%) of the original project cost estimates for the Nickel and Partnership Account projects are placed into a reserve account. This allows the Department of Transportation to use these reserves to keep projects moving that are ready to go.
- Existing bonding authority is used. This includes bonding for Transportation Improvement Board projects that are ready to go.
The Senate Transportation Budget is scheduled for Tuesday, March 27. We do not expect substantive changes between the House and Senate bill because both chambers have been collaborating since the beginning of session.
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