2001 Legislation
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HOUSE BILL NO. 269 – Rail service preservation program

HOUSE BILL NO. 269

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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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact


                       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