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H0269.........................................by TRANSPORTATION AND DEFENSE
RAIL SERVICE PRESERVATION - Adds to and amends existing law to establish a
Rail Service Preservation Program administered by the Idaho Transportation
Board; to provide duties; to create a Rail Service Preservation Fund; to
require the development of a state rail plan; and to require the Public
Utilities Commission to continue to intervene as necessary in federal
Surface Transportation Board abandonment proceedings on railroad branch and
main lines to protect the interests of the state of Idaho.
02/15 House intro - 1st rdg - to printing
02/16 Rpt prt - to Transp
03/05 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/07 3rd rdg - PASSED - 41-26-3
AYES -- Barraclough(Barraclough), Bieter, Black, Boe, Bradford,
Bruneel, Chase, Collins, Crow, Cuddy, Deal, Denney, Ellis, Eskridge,
Field(13), Gould, Hadley, Hammond, Harwood, Henbest, Higgins,
Hornbeck, Jaquet, Jones, Kellogg, Kunz, Langford, Mader, Marley,
Meyer, Pomeroy, Roberts, Robison, Sali, Schaefer, Shepherd, Smylie,
Trail, Wood, Young, Mr. Speaker.
NAYS -- Barrett, Bell, Bolz, Callister, Campbell, Clark, Gagner,
Kendell, Lake, Loertscher, McKague, Montgomery, Mortensen, Moss,
Moyle, Pearce, Pischner, Raybould, Ridinger, Sellman, Smith,
Stevenson, Stone, Swan(Hansen), Tilman, Wheeler
Absent and excused -- Bedke, Ellsworth, Field(20)
Floor Sponsor -- Kunz
Title apvd - to Senate
03/08 Senate intro - 1st rdg - to Transp
03/21 Rpt out - rec d/p - to 2nd rdg
03/22 2nd rdg - to 3rd rdg
03/23 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee,
Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams,
NAYS -- None
Absent and excused -- None
Floor Sponsor -- Frasure
Title apvd - to House
03/26 To enrol
Rpt enrol - Sp signed
03/28 Pres signed
03/29 To Governor
04/09 Governor signed
Session Law Chapter 348
Effective: 07/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 269
BY TRANSPORTATION AND DEFENSE COMMITTEE
1 AN ACT
2 RELATING TO THE RAIL SERVICE PRESERVATION PROGRAM; PROVIDING LEGISLATIVE
3 INTENT; AMENDING TITLE 49, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER
4 29, TITLE 49, IDAHO CODE, TO ESTABLISH A RAIL SERVICE PRESERVATION PROGRAM
5 ADMINISTERED BY THE IDAHO TRANSPORTATION BOARD, TO PROVIDE DUTIES OF THE
6 BOARD, TO CREATE A RAIL SERVICE PRESERVATION FUND AND TO REQUIRE THE
7 DEVELOPMENT OF A STATE RAIL PLAN; AND AMENDING SECTION 62-424, IDAHO CODE,
8 TO REQUIRE THE PUBLIC UTILITIES COMMISSION TO CONTINUE TO INTERVENE AS
9 NECESSARY IN FEDERAL SURFACE TRANSPORTATION BOARD ABANDONMENT PROCEEDINGS
10 ON RAILROAD BRANCH AND MAIN LINES TO PROTECT THE INTERESTS OF THE STATE OF
11 IDAHO.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. (1) The Legislature finds that a balanced, competitive
14 multimodal transportation system is required to maintain the state's economy
15 and the efficient flow of commerce. The state's freight rail system, including
16 mainlines, branch lines, short lines, rail corridors, terminals, yards and
17 equipment are important elements of this multimodal system. Idaho's economy
18 relies heavily upon the freight rail system to ensure movement of the state's
19 agricultural, mineral, lumber and wood, chemical and other natural resources
20 and manufactured products to local, national and international markets and
21 thereby contributes to the economic vitality of the state.
22 (2) Since 1975, Idaho has lost over one-third of its rail miles to aban-
23 donment. The combination of rail abandonment and rail system capacity con-
24 straints may alter the delivery to market of many commodities. In addition,
25 the resultant motor vehicle freight traffic increases the burden on state
26 highways and local roads. In some cases, the costs of maintaining and upgrad-
27 ing state highways and local roads may exceed the costs of maintaining rail
28 freight service. Thus, the economy of the state and the competitiveness of
29 Idaho's freight shippers will be best served by a policy of maintaining and
30 encouraging a healthy rail freight system by creating mechanisms that keep
31 rail freight lines operating if the benefits of the service outweigh the
32 costs.
33 (3) The state, counties, local communities, ports, railroads, labor and
34 rail shippers all benefit from continuation of rail service. Lines that pro-
35 vide benefits to the state and local jurisdictions and rail freight shippers,
36 such as competitive transportation services, avoided roadway costs, reduced
37 highway traffic, economic development potential, environmental protection, and
38 safety, should be assisted through the joint efforts of the state, local
39 jurisdictions and the private sector.
40 (4) Recognizing the implications of this trend for the state's overall
41 transportation infrastructure and the state's economic future, the Legislature
42 finds that rail line preservation, financial assistance from the state and
43 continued state rail planning are necessary to maintain and improve the
44 freight rail system within the state.
2
1 SECTION 2. That Title 49, Idaho Code, be, and the same is hereby amended
2 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
3 ter 29, Title 49, Idaho Code, and to read as follows:
4 CHAPTER 29
5 RAIL SERVICE PRESERVATION PROGRAM
6 49-2901. RAIL SERVICE PRESERVATION PROGRAM. (1) The Idaho rail service
7 preservation program is hereby established. The Idaho transportation board is
8 designated and authorized to administer the Idaho rail service preservation
9 program.
10 (2) State funding for rail service preservation projects shall benefit
11 the state's interest. The state's interest is served by maintaining competi-
12 tive transportation services for Idaho freight shippers, reducing public road-
13 way maintenance and repair costs, increasing economic development opportuni-
14 ties, increasing domestic and international trade, preserving jobs, and
15 enhancing safety. State funding for projects is contingent upon appropriate
16 private sector participation and cooperation. Before spending state moneys on
17 projects, the Idaho transportation board shall seek federal, local and private
18 funding and participation to the greatest extent possible. Whenever possible,
19 the board shall seek to assist a private sector solution for the implementa-
20 tion of this chapter.
21 49-2902. DUTIES OF THE BOARD. (1) The Idaho transportation board shall
22 monitor the status of the state's mainline, short line and branch line common
23 carrier railroads through the state rail planning process and various analy-
24 ses, and shall seek alternatives to abandonment prior to the federal surface
25 transportation board proceedings, where feasible.
26 (2) The board shall establish criteria for evaluating rail projects of
27 significance to the state, and shall continue to monitor projects for which it
28 provides assistance.
29 (3) The board shall develop criteria for prioritizing freight rail proj-
30 ects that meet the minimum eligibility requirements for state assistance.
31 Project criteria should consider the level of local financial commitment to
32 the project as well as the cost/benefit ratio. Railroads, shippers and others
33 who benefit from the project should participate financially to the greatest
34 extent practicable.
35 (4) The board shall ensure that the state maintains a contingent interest
36 in any equipment, property, rail line, or facility that has outstanding grants
37 or loans. The owner shall not use the line as collateral, remove track,
38 bridges or associated elements for salvage, or use it in any other manner
39 subordinating the state's interest without permission from the board. As the
40 state is not a primary lender of money, it is understood the state may need to
41 take a subordinate position for its contingent interest.
42 49-2903. RAIL SERVICE PRESERVATION FUND. (1) The rail service preserva-
43 tion fund is hereby created in the state treasury. The Idaho transportation
44 board is authorized to administer the rail service preservation fund. Moneys
45 in the fund shall be used only for the purposes specified in this section.
46 (2) Moneys in the fund are subject to appropriation and may consist of
47 appropriations, grants and other revenues from any other sources.
48 (3) Moneys in the fund may be used by the board for loans or grants for
49 qualified rail lines upon terms and conditions to be determined by the board
50 as appropriate, for the purpose of:
51 (a) Rebuilding, rehabilitating, or improving rail lines to preserve
3
1 essential local rail service;
2 (b) Purchasing or rehabilitating railroad equipment necessary to maintain
3 essential rail service;
4 (c) Construction of loading or reloading facilities or other capital
5 improvements to increase business on light density lines, improve service,
6 or mitigate impacts of abandonment on one (1) line by improving service on
7 another line; or
8 (d) Financial assistance to class III railroads for the preservation of
9 light density lines as identified by the Idaho transportation board.
10 (4) For the purposes of this chapter, "qualified lines" means class III
11 short lines, branch lines of class I or class II railroads, and lines owned by
12 public entities including port districts. Definition of class I, II and III
13 railroads shall be as defined by the federal railroad administration.
14 (5) Moneys received by the board from loan payments or other revenues
15 shall be redeposited in the rail service preservation fund. Repayment of loans
16 made under this chapter shall occur within a period as set by the board, but
17 no repayment which exceeds fifteen (15) years shall be allowed. The repayment
18 schedule and rate of interest, if any, shall be determined before the moneys
19 are distributed.
20 (6) Moneys distributed under the provisions of this chapter shall be pro-
21 vided as loans whenever practicable, except in circumstances as determined by
22 the board.
23 49-2904. STATE RAIL PLAN. (1) The Idaho transportation board shall pre-
24 pare and periodically update a state rail plan, a primary objective of which
25 is to identify, evaluate and encourage the preservation of essential rail ser-
26 vices. The plan shall:
27 (a) Identify and describe the state's rail system;
28 (b) Prepare state rail system maps;
29 (c) Identify and evaluate mainline capacity issues in cooperation with
30 the railroads;
31 (d) Identify and evaluate rail access and congestion issues;
32 (e) Identify and evaluate rail commodity flows and traffic types;
33 (f) Identify lines and corridors that have been rail banked or preserved;
34 (g) Identify and evaluate other rail issues affecting the state's trans-
35 portation system and regional and local economies;
36 (h) Identify and evaluate those rail freight lines that are potentially
37 subject to abandonment in the future because of unmet capital needs or
38 other reasons, or have recently been approved for abandonment but the
39 track improvements are still in place;
40 (i) Quantify the costs and benefits of maintaining rail service on those
41 lines potentially subject to abandonment in the future; and
42 (j) Establish priorities for determining which rail lines should receive
43 state support. The priorities should include the anticipated benefits to
44 the state and local economy, the anticipated cost of road and highway
45 improvements necessitated by the abandonment of the rail line, the likeli-
46 hood the rail line receiving funding can meet operating costs from freight
47 charges, surcharges on rail traffic and other funds, and the impact of
48 abandonment or capacity constraints on changes in energy utilization and
49 air pollution.
50 (2) The state rail plan may be prepared in conjunction with any rail plan
51 currently prepared by the Idaho transportation department pursuant to other
52 federal rail assistance programs, or which may be enacted, including if appli-
53 cable, the federal local rail freight assistance program.
4
1 SECTION 3. That Section 62-424, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 62-424. HEARING ON ABANDONMENT. (1) Whenever any railroad proposes to
4 abandon any branch line or main line now in operation within the state of
5 Idaho, the railroad shall file notice of the intended abandonment with the
6 public utilities commission. The public utilities commission shall schedule a
7 public hearing on the proposed abandonment. If the hearing results in a find-
8 ing by the commission that the abandonment of the branch line or main line
9 would adversely affect the area then being served and that there is reason to
10 believe that the closure would impair the access of Idaho communities to vital
11 goods and services and market access to those communities and that the line
12 has potential for profitability, then the public utilities commission shall
13 transmit a report of its findings to the United States surface transportation
14 board on behalf of the people of the state of Idaho.
15 (2) The Idaho public utilities commission shall continue to intervene in
16 federal surface transportation board abandonment proceedings when necessary to
17 protect the state's interest.
STATEMENT OF PURPOSE
RS 11086
Since 1975 Idaho has lost a substantial portion of its rail
miles to abandonment. Idaho s economy relies heavily upon the freight
rail system for access to national and international markets. Hence,
it becomes an important public policy objective to maintain and
encourage a healthy and competitive rail freight system.
The purpose of the legislation is to create a rail service
preservation program inside the Idaho Transportation Department. A
state rail plan would be developed to evaluate and preserve essential
rail services. Further, a rail service preservation fund would be
created in the state treasury, subjected to appropriation. The Idaho
Transportation Board is designated to administer this program.
FISCAL IMPACT
Whenever possible the Idaho Transportation Board shall seek a
private sector solution first. The board shall next seek federal and
local participation. State monies shall be subjected to appropriation.
Contact
Name: Representative Kent Kunz
Phone: 332 1000
STATEMENT OF PURPOSE/FISCAL NOTE H 26