Infrastructure, Transportation & Economic Development

Infrastructure bills were heard in both the Senate and House this week and there is no clear indication which bills will move forward, if any. As discussed in previous Bulletins, the legislatively created Public Infrastructure Programs and Funding Structures Task Force had several recommendations that led to proposed bills. At the same time, AWC has supported bills that focus on increased revenue for the Public Works Assistance Account, or allow reimbursement of eligible expenses once the legislature enacts the list. At this point, the advancement or failure of these bills appears to be linked. Bills to watch:

Regarding Public Works Projects (HB 3264/SB 6853)

This legislation is a result of the Public Infrastructure Programs and Funding Structures recommendations from last December. If enacted, the legislature could:

• Add additional infrastructure categories to the Public Works Assistance Account that are aligned with state priorities to be determined in the capital budget without providing new revenues.
• Set funding levels for the existing categories that are eligible in the Public Works Assistance Account (sewer, water, roads, bridges, and solid waste facilities); and
• Once the appropriation and categories are determined, the Public Works Board would not be required to return to the legislature the following year for project list approval.

AWC opposes this legislation. Our position is that commensurate funding must be provided if new categories are added to the Public Works Assistance Account. The Washington Association of Counties, Public Utilities Districts, water and sewer districts, Realtors, Associated General Contractors and other associations spoke in opposition to this legislation; however, there is still a legislative interest in moving these bills. HB 3264 is scheduled for executive session in the House Capital Budget Committee on Tuesday, February 12 at 8 am. SB 6853 has not been scheduled at this time.

Regarding the Public Works Assistance Account (HB 3301 and HB 3302)

Both bills are scheduled for executive session on in the House Capital Budget Committee on Tuesday, February 12 at 8 am. HB 3301 would allow the Public Works Board to reimburse projects for allowable expenses incurred during the preceding fiscal year.

HB 3302 has the same provisions as HB 3301, but also states that if the legislature doesn’t approve the Public Works Board project list by February 1, it is considered adopted. These bills will provide an option for cities to advance construction projects by one season. AWC has testified in support of both bills.

Authorizing Public Works Board Projects (HB 2437)

This bill passed out of the Senate Ways and Means Committee. A notable amendment to the legislation is that it directs the Public Works Board to charge a uniform rate of ½ percent interest on all loans. The bill will now be required to pass the Senate and receive concurrence from the House.

Please see last week's Bulletin for a description of the number of projects and amount funded.

Regarding State Economic Development Programs (HB 3266)

This bill seeks to align CERB with projects with Economic Development Commission goals and objectives, when adopted, and with the Workforce Training and the Education Coordinating Board's Strategic Plan for Workforce Development. It also eliminates the final $50M transfer of the Public Works Assistance Account to the Job Development Fund.

AWC testified stating that we are committed to seeking new revenue for CERB. AWC also testified with concerns on some of the technical language that requires statewide consistency with boards that may only exist in regions of the state. This bill is scheduled for executive session on in the House Capital Budget Committee on Tuesday, February 12 at 8 am.

Regarding State Economic Development Programs (SSB 6855)

Although it has the same title as HB 3266, it is SSB 5762 in substance. This bill streamlines CERB functions and provides an urban element to CERB, subject to new funding. AWC testified in support of this bill in Ways and Means.

Concerning Loans Made by the CERB (HB 3314)

As drafted, it would add a housing infrastructure element to CERB. AWC testified in support of the concept in this bill that basic infrastructure for housing is needed, but suggested that this program would be better served if placed within other programs in the Community Trade, and Economic Development agency.

Transportation Bills

Financing the 520 Bridge Replacement Project (HB 3096)

This bill passed the Committee this week. In 2007, The US DOT’s Congestion Initiative awarded the Washington State Department of Transportation a grant known as the Lake Washington Urban Partnership.

The grant provides $139 million, of which $86 million is for active traffic management (such as traveler information and speed harmonization) and variable tolling on the SR 520 Bridge. All but $1.6 million of the grant is only accessible once a variable tolling policy has been approved, legal authority exists for tolling to commence, and variable tolling is implemented on the SR 520 Bridge project. If passed the bill would:

• Allow for the collection of tolls on the existing and replacement State Route 520 (SR 520) Bridge following the submission of the tolling implementation report required by the act and approval by the Legislature.
• Require the WSDOT to work with the Federal Highways Administration to determine the actions necessary to toll the I-90 Floating Bridge.
• Establish the State Route 520 Tolling Implementation Committee to evaluate a variety of issues related to the tolling of the SR 520 Bridge.
• Allow state and local sales and use tax applicable to site acquisition, construction, and equipment related to the SR 520 Bridge replacement project to be deferred until five years after the project is open to traffic.

Imposition of Tolls (2SHB 1773)

As noted in our first Bulletin, this legislation establishes the statewide framework for imposing tolls. It would:

• Designate the Legislature as the only entity with the authority to impose tolls on an eligible toll facility, unless that authority is otherwise delegated.
• Require all revenue from an eligible toll facility to be used only to improve, preserve, maintain, manage or operate the eligible toll facility on or in which it is collected.
• Create guidelines and requirements that the Washington State Transportation Commission (Transportation Commission) must follow in determining toll rates.
• Require any other entities seeking to impose tolls to first seek approval from the Legislature for tolls on state routes and from the Transportation Commission for tolls or changes in tolls that impact state routes.
• Require the Washington State Department of Transportation to use and administer toll collection systems that are simple, unified, interoperable, and avoid the use of toll booths and to set standards for all toll facilities in the state.

Eliminating Regional Transportation Investment Districts (SB 6771)

As the title indicates, this would repeal RTID. AWC testified as neutral on the governance structure of RTID, but did point out that absent a new governance structure, repealing the tax authorities associated with RTID could be problematic. Enacting any transportation related tax authority at the state level or even for local or regional purposes often takes several years.

Regional Transportation Governance (SB 6772)

This bill would:

• Assume the functions of Sound Transit as a "Regional Transportation Authority;"
• Create a directly elected board representing the current Sound Transit boundaries;
• Provide additional taxing authority and a roads element to the new authority; and
• Authorize a similar authority outside of Puget Sound through the charter government process. (Please see the January 25 Bulletin for an expanded explanation of SB 6772.)

Most of the testimony on this proposal centered on three key points:

1. Representation by each commissioner within Puget Sound;
2. No "sub-area" equity requirements within the Puget Sound; and
3. Noting that provision of a like authority in other counties may have limited revenue raising ability given a relatively smaller county’s tax base.

Exempting Park Maintenance Equipment Operated by Certain Local Jurisdictions (HB 3183)

This bill has passed the House Transportation Committee. It will allow cities to operate and move park maintenance equipment on city streets and no longer have the current law requirement of needing a police escort.

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