SB5974 – 2022 Transportation Package.
Prime Sponsor – Senator Liias (D; 21st District; Southwest Snohomish County) (Co-Sponsor Saldaña – D)
Current status – Sent to conference  committee; its report was adopted by both houses March 10. Relative to the amended House striker, the final version restores the specification that $500 million in preservation and maintenance funding is for stormwater projects with an emphasis on green infrastructure. It no longer specifies an intent to fund projects according to the LEAP document.  It drops the 6¢/gallon tax on fuel exported to other states, and transfers $57 million a year to the Move Ahead WA flexible fund from the general fund; allows using the Public Works Assistance account for Move Ahead WA projects; and transfers $57 million a year from that account to Move Ahead WA. It restores the inflation adjustment to the border fuel tax, and drops the authorization for voters to approve an increase of up to 2% in their local gas utility tax, and the tax sticker on fuel pumps. It allows extending the local transit benefit tax with a vote more than once. It shifts creating the rail crossing grant program to the Department of Transportation, and limits regional mobility grant awards to transit authorities with free fares for riders 18 and under. It requires Transportation to estimate and report on the cap and invest program credits to be generated as a result of Move Ahead WA projects, and to make recommendations on the most effective ways to invest those to reduce greenhouse gas emissions and decarbonize transportation. It specifies that completing Connecting Washington projects is a legislative priority, and recognizes that “the application of practical design” during project design may produce cost saving, but it specifies various requirements for legislative oversight of proposed changes. It requires reporting on estimated savings as a result of practical design, and transfers those and some other possible project savings to the transportation future funding program to be split evenly between accelerating current Connecting Washington projects and funding new ones.
Next step would be – To the Governor
Legislative tracking page for the bill.
HB2119 is a companion bill in the House.

In the House – Passed
Referred to Transportation February 17th; then passed to Rules without a hearing on February 25th. The bill was amended on the floor by Representative Fey to eliminate the 6% tax on fuel exported to other states, to partially replace the expected revenue by transferring $100 million a year for the next 15 years from the Public Works Assistance Account to the Move Ahead WA program, resulting in a estimated net reduction of roughly $500 million in funding for the program over that period, and to drop the specification that $500 million of the preservation and maintenance funding is for enhancing stormwater runoff treatment with an emphasis on green infrastructure retrofits. His striker also defines biofuels in the Fuel Tax Act as those with life cycle emissions at least 40% below those of the petroleum products they’re replacing; drops the authorization for local increases of up to 2% on utility taxes to fund transportation; drops the required railway crossing grant program; adds some environmental justice provisions; drops the increased license plate fee from $50 to $40 for used cars; and has the Electric Vehicle Coordinating Council develop of a public and private outreach plan and create an industry electric vehicle advisory committee. Other amendments have the Department of Agriculture produce and distribute a sticker required on motor fuel pumps with information on Federal and State tax rate, and remove the inflation adjustment from the provision authorizing jurisdictions within ten miles of the border to raise the border fuel tax from 1¢/gallon to 2¢.

In the Senate – Passed
Had a hearing in the Transportation Committee Thursday February 10th at 10:00 AM; continued February 11th at 8:00 AM. Referred to Rules. Amended by the prime sponsor to adjust the bill in a number of small ways; and by others to declare the State’s intention to fully fund the ferry vessel and terminal electrification program in accordance with the 2040 Long Range Plan and the need to replace vessels on a biennial basis; and to delay the imposition of the tax on imported fuel for five months, reducing expected revenues by $51.2 million. Referred to Rules. Amended on the floor to eliminate telephone businesses from the optional additional 2% tax; to specify that $500 million of the preservation and maintenance funding under LEAP 2 is to go to enhance stormwater runoff treatment with an emphasis on green infrastructure retrofits; to create a grant program for projects that eliminate at grade highway-rail crossings; to create a Department of Transportation program focused on safety improvements to prevent lane departures in dangerous areas; and to make a couple of other minor changes. Passed by the Senate February 15th.

Comments –
The Washington State Wire has a summary of the anticipated budget allocations plus a little political commentary.

Summary –
The bill would specify that transportation appropriations from the carbon emissions reduction account which is funded by revenue from the cap and invest program can only by used for active transportation, transit programs and projects, alternative fuel and electrification, ferries, and rail. It would declare the Legislature’s intention to use this money for the activities identified in the LEAP Transportation Document. 24% of that money would be dedicated to active transportation and 56% to transit. The bill would expand the cap and invest program’s requirement for environmental justice assessments, for reporting to the Environmental Justice Council, and for directing specified percentages of funding to vulnerable populations to include these investments.

It replaces the section of  the Clean Fuels Act about Commerce’s creation of implementation rules with a new section, which simply deletes the subsection of the original act that the Governor vetoed.

The bill would apply the fuel tax to direct deliveries and bulk transfers to any destination with the United States, including tribal lands, but then it would provide credits against that, resulting in a tax of 6¢ a gallon, and no tax if the state to which the fuel went imposed a higher tax on it than Washington’s. (It would extend the current provisions that allow claiming a credit against the tax for fuel used in particular activities like urban transit to those uses of fuel exported to other parts of the country.) It would raise the tax on aircraft fuel sold, delivered or used in the state from 11¢/gallon to 18¢/gallon.

The bill would create a Move Ahead Washington account and a Move Ahead Washington flexible account which could only be spent on projects, programs, or activities assigned to those accounts in an omnibus transportation appropriations act. The bill would raise the basic license plate fee from $10 to $50, raise the motorcycle fee from $4 to $20, raise the dealer permit fee from $15 to $40, and raise license replacement fees; most of that additional revenue, the 25¢ license plate technology fee, and the 50¢ license service fee would be directed to the Move Ahead Washington account. It would raise the enhanced license fee from $32 to $56; add $2 to the fee for abstracts of driving records (and $4 after July 1st 2029); raise the fee for replacing driving identification to change or correct material information from $10 to $20; and deposit the additional revenue in the Move Ahead Washington flexible account. It would raise the documentary service fee that dealers can charge to cover their administrative costs in concluding sales and leases, which include licensing and registration fees and other agency fees, from $150 to $200.

The bill would direct $31 million a year from the general fund to the Move Ahead Washington flexible account from 2026 through 2038. (The bill says this represents the estimated state sales and use tax generated from the new transportation projects and activities it would fund.)

It would fund the sales and use tax reductions for the sale or lease of plug-in and fuel cell vehicles from the general fund rather than the electric vehicle account. It would fund the credits against the B&O tax and the public utility tax for purchases of alternative fuel vehicles over 14,000 pounds, for alternative fuel infrastructure, and for employers’ investments in financial commute trip reduction incentives from the general fund rather than the multimodal transportation account. It would fund the exemptions from the sales and use taxes for the sales of batteries and fuel cells for vehicles, and for work on them, from the general fund, and not the multimodal account.

The bill would raise the maximum amount of the excise tax voters in border area jurisdictions could decide to impose on the retail sale of fuel for the purpose of street maintenance and construction from 1¢/gallon to 2¢/gallon, adjusted for inflation going forward. It would allow cities and towns to impose an additional tax of up to 2% on natural gas, steam energy, or telephone businesses. (This would not require a vote of the people as I read the bill). The revenue would have to be used for improvements in the transportation plan of the state, a regional transportation planning organization, the city, or the county, but might include public transportation and transportation demand management projects. It would allow transportation benefit districts to increase an existing sales or use tax for special transportation needs from 2/10 of one percent to up a maximum of 3/10 of one percent. It would allow the governing board of a district that included all the territory of the jurisdiction establishing it to impose a new local sales and use tax of up to 1/10 of one percent, and to vote to extend it for up to ten years.

The bill would make having all new vehicles sold, purchased, or registered in Washington be electric beginning with the 2030 models a target for the State, and would require the Department of Commerce to create “a scoping plan” for achieving that.

It would have Commerce establish a competitive bus and bus facilities grant program to provide funds to transit authorities for the replacement, expansion, rehabilitation, and purchase of transit rolling stock (including ferries and vans); the construction, modification, or rehabilitation of facilities; and the retrofitting of rolling stock and facilities to adapt to technological change or innovation. It would be required to incorporate environmental justice principles and geographic diversity into the selection process, to exclude fuel type as a factor, to limit any single grantee to a maximum of 35% of the funding in a biennium, and to establish an advisory committee to carry out the requirements for the program, including assisting with establishing the grant criteria.

The bill would establish a Connecting Communities program at Commerce to improve active transportation connectivity in communities by providing safe, continuous routes for pedestrians, bicyclists, and other nonvehicle users carrying out daily activities; mitigating for the health, safety, and access impacts of transportation infrastructure that bisects communities and creates obstacles in the local active transportation network; investing in greenways providing protected routes for nonvehicular users; and facilitating the planning, development, and implementation of projects and activities to improve the connectivity and safety of that network. The program would propose projects to the Legislature considering
(a) Access to a transit facility, community facility, commercial center, or community-identified assets;
(b) The use of minority and women-owned businesses and community-based organizations in planning, community engagement, design, and construction of projects;
(c) Whether they will serve overburdened communities, vulnerable populations, low income households, and people with disabilities;
(d) Environmental health disparities;
(e) Location on or adjacent to tribal lands or locations providing essential services to tribal members;
(f) Crash experience involving pedestrians and bicyclists; and
(g) Identified need by a community.
Commerce would report to the transportation committees of the Legislature in December of each year for five years on selected projects for funding and on the status of previously funded projects.

The bill would require state transportation projects starting design on or after July 1, 2022, and costing $500,000 or more to identify locations on State rights-of-way that don’t have a complete Americans with Disabilities Act accessible sidewalk or shared-use path, that don’t have a bike lane or adjacent parallel trail or shared-use path, that have such facilities on a state route within a population center with a posted speed over 30 mph and no buffer or physical separation from vehicular traffic for pedestrians and bicyclists, and/or a design that hampers the ability of motorists to see a crossing pedestrian with sufficient time to stop. The Department would be required to consult local jurisdictions about existing and planned active transportation connections along or across those locations; and to identify connections to other existing and planned public transportation services; existing and planned facilities that connect to the location; and the potential use of speed management techniques to minimize crash risks. DOT would be required to lower the speed limit with appropriate roadway design and operations where this approach aligns with local plans or ordinances, particularly in contexts that present a higher possibility of serious crashes. It would have to plan, design, and construct facilities providing context-sensitive solutions needed to integrate the state route into the local network and contributing to connectivity and safety for pedestrians, bicyclists, and people accessing public transportation and other modal connections, including ADA accessible sidewalks or shared-use paths, bike facilities, and crossings .

The bill would have DOT establish two statewide school-based bicycle education grant program, one for elementary and middle school and one for older students, to develop bicycling skills and street safety knowledge. It would be encouraged to consult with the Environmental Justice Council and the Office of Equity in the process. It would  contract with a nonprofit organization with relevant reach and experience, including a statewide footprint and demonstrable experience deploying bicycling and road safety education curriculum via a train the trainer model in schools, for the elementary program, and with a non-profit meeting the same requirements plus experience developing and managing youth-based programming serving youth of color in an after-school and/or community for the junior high and high school program. The elementary program is to identify partner schools according to a long list of equity criteria; provide them with a fleet of bikes; provide a free bike with equipment for participants, and provide in-school bike and pedestrian safety education curriculum, materials, equipment guidance and consultation, and physical education teacher training. The junior high and high school program is to use the equity-based criteria to identify target populations and partner organizations that work with youth from 14 to 18, including schools, community-based organizations, housing authorities, and parks and recreation departments.  It would provide education curriculum, materials, equipment guidance and consultation, and initial instructor/volunteer training, as well as ongoing support to those partners. DOT would report annually to the Legislature’s transportation committees on the programs.

The Department would negotiate with the Oregon Department of Transportation to determine the impacts on ridership, revenue, and policy of eliminating Amtrak Cascades fares for passengers 18 years and younger, and report to the transportation committees on the results and the status of fare policy requests to Amtrak by December 1, 2022. The bill would eliminate ferry fares for these passengers. It would establish a transit support grant program to provide support for operating and capital expenses to transit agencies that maintain or increase their local sales tax authority and have adopted a zero-fare policy for at least passengers 18 and younger. Grants would be prorated according to expenditures for operations; no agency could receive more than 35% of the money; and fuel type could not be a factor in the grant process.

The bill would expand the areas in which speed cameras could be used to include any roadway in a school walk area, public park speed zones, and hospital zones, and would require notification signs for drivers in those zones. It would increase the number of additional cameras that cities with over 195,000 people in a county of over 1.5 million were allowed to install, allowing one for every 10,000 residents in specified areas for cities that have done an equity analysis of livability, accessibility, economics, education, and environmental health, and consider that in their placements. Half of the net revenue from cameras in these new specified zones and the additional cameras authorized for larger cities would go to the State’s Cooper Jones active transportation safety account.

The bill would have the Transportation Commission reevaluate options to improve performance on the Interstate 405 and State Route 167 corridors at least every two years, since it has not met the goal of keeping average vehicle speeds in the express toll lanes above 45 mph at least 90% of the time during peak hours. It would remove the block on spending revenue from various accounts until a compliance path for emissions-intensive, trade-exposed businesses to achieve their share of the state’s emissions reduction through 2050 was in place. (HB1682 is intended to provide that.)

It would create a formal interagency council for coordinating the state’s transportation electrification efforts to ensure it’s leveraging state and federal resources to the best extent possible and to ensure zero emissions incentives, infrastructure, and opportunities are available and accessible to all. This would be led by the Departments of Commerce and Transportation with participation from Ecology; Enterprise Services; the State Efficiency and Environmental Performance Office; Agriculture; Health; the UTC; a representative from the Office of the Superintendent of Public Instruction knowledgeable about student transportation; and other agencies with key roles in electrifying the sector. It would provide ongoing reports to the Governor and appropriate legislative committees. It would develop a statewide transportation electrification strategy to ensure market and infrastructure readiness for all new vehicle sales; identify EV infrastructure grant related funding opportunities, and coordinate grant funding criteria across agency programs to most efficiently distribute state and federal electric vehicle-related funding in a manner that is most beneficial to the state, and advances best practices. It would recommend additional criteria that could be useful in advancing transportation electrification. It would provide ongoing reports to the Governor and appropriate legislative committees.