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H0820.....................................................by WAYS AND MEANS
RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION PROGRAM -
Adds to and amends existing law to provide the Rural Economic Development
and Integrated Freight Transportation Program; to authorize the Department
of Commerce and Labor to administer the program; to clarify funding for
state projects; to create an interagency working group; to provide for
duties of the interagency working group; to authorize the Department of
Commerce and Labor to administer the Rural Economic Development and
Integrated Freight Transportation Fund; to redefine "qualified lines"; to
provide for distribution of moneys; to direct the Idaho Transportation
Department to prepare and update a state rail and intermodal facility
system plan; to revise the elements of the plan; and to direct the Idaho
Transportation Department to provide certain information to the interagency
working group.
03/15 House intro - 1st rdg - to printing
03/16 Rpt prt - to Transp
03/21 Rpt out - rec d/p - to 2nd rdg
03/22 2nd rdg - to 3rd rdg
03/23 3rd rdg - PASSED - 68-0-2
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson,
Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood,
Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher,
Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle,
Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo,
Roberts, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Rusche, Shepherd(8)
Floor Sponsor - Wood
Title apvd - to Senate
03/24 Senate intro - 1st rdg - to Transp
03/30 Rpt out - rec d/p - to 2nd rdg
03/31 2nd rdg - to 3rd rdg
04/03 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Werk, Williams
NAYS -- None
Absent and excused -- Sweet
Floor Sponsor - President Pro Tempore Geddes
Title apvd - to House
04/03 To enrol
04/04 Rpt enrol - Sp signed - Pres signed - To Governor
04/10 Governor signed
Session Law Chapter 413
Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 820
BY WAYS AND MEANS COMMITTEE
1 AN ACT
2 RELATING TO RAIL SERVICE PRESERVATION; AMENDING THE HEADING FOR CHAPTER 29,
3 TITLE 49, IDAHO CODE, TO PROVIDE THE RURAL ECONOMIC DEVELOPMENT AND INTE-
4 GRATED FREIGHT TRANSPORTATION PROGRAM; AMENDING SECTION 49-2901, IDAHO
5 CODE, TO AUTHORIZE THE DEPARTMENT OF COMMERCE AND LABOR TO ADMINISTER THE
6 RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION PROGRAM,
7 TO CLARIFY FUNDING FOR STATE PROJECTS AND TO PROVIDE CORRECT TERMINOLOGY;
8 AMENDING CHAPTER 29, TITLE 49, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
9 TION 49-2902, IDAHO CODE, TO CREATE AN INTERAGENCY WORKING GROUP; AMENDING
10 SECTION 49-2902, IDAHO CODE, TO PROVIDE FOR DUTIES OF THE INTERAGENCY
11 WORKING GROUP, TO PROVIDE A CORRECT CODE REFERENCE AND TO REDESIGNATE THE
12 SECTION; AMENDING SECTION 49-2903, IDAHO CODE, TO AUTHORIZE THE DEPARTMENT
13 OF COMMERCE AND LABOR TO ADMINISTER THE RURAL ECONOMIC DEVELOPMENT AND
14 INTEGRATED FREIGHT TRANSPORTATION REVOLVING LOAN FUND, TO PROVIDE FOR
15 INVESTMENT OF IDLE MONEYS IN THE FUND AND TO PROVIDE FOR RETURN TO THE
16 FUND OF INTEREST EARNED, TO REDEFINE "QUALIFIED LINES," TO PROVIDE FOR
17 USES AND DISTRIBUTION OF MONEYS, TO PROVIDE CORRECT TERMINOLOGY AND TO
18 REDESIGNATE THE SECTION; AND AMENDING SECTION 49-2904, IDAHO CODE, TO
19 DIRECT THE IDAHO TRANSPORTATION DEPARTMENT TO PREPARE AND UPDATE A STATE
20 RAIL AND INTERMODAL FACILITY SYSTEM PLAN, TO REVISE THE ELEMENTS OF THE
21 PLAN, TO DIRECT THE IDAHO TRANSPORTATION DEPARTMENT TO PROVIDE CERTAIN
22 INFORMATION TO THE INTERAGENCY WORKING GROUP, TO PROVIDE CORRECT TERMINOL-
23 OGY AND TO REDESIGNATE THE SECTION.
24 Be It Enacted by the Legislature of the State of Idaho:
25 SECTION 1. That the Heading for Chapter 29, Title 49, Idaho Code, be, and
26 the same is hereby amended to read as follows:
27 CHAPTER 29
28 RAIL SERVICE PRESERVATION RURAL ECONOMIC DEVELOPMENT AND
29 INTEGRATED FREIGHT TRANSPORTATION PROGRAM
30 SECTION 2. That Section 49-2901, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 49-2901. RAIL SERVICE PRESERVATION RURAL ECONOMIC DEVELOPMENT AND INTE-
33 GRATED FREIGHT TRANSPORTATION PROGRAM. (1) The Idaho rail service preservation
34 rural economic development and integrated freight transportation program is
35 hereby established. The Idaho transportation board department of commerce and
36 labor is designated and authorized to administer the Idaho rail service pres-
37 ervation rural economic development and integrated freight transportation pro-
38 gram.
39 (2) State funding for rail rural freight transportation service preserva-
40 tion projects shall benefit the state's interest by assisting businesses and
41 industries to develop and expand their operations in shipping freight and
2
1 products to market. The state's interest is served by maintaining competitive
2 transportation services for Idaho freight shippers, reducing public roadway
3 maintenance and repair costs, increasing economic development opportunities,
4 increasing domestic and international trade, creating and preserving jobs, and
5 enhancing safety. State funding for projects is contingent upon appropriate
6 private sector partnerships with state and local governments, participation
7 and cooperation. Before recommending the spending of these dedicated state
8 moneys on intermodal projects, the Idaho transportation board department of
9 commerce and labor shall seek federal, local and private funding and partici-
10 pation to the greatest extent possible. Whenever possible, the board depart-
11 ment shall seek to assist a private sector solution for the implementation of
12 this chapter.
13 SECTION 3. That Chapter 29, Title 49, Idaho Code, be, and the same is
14 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
15 ignated as Section 49-2902, Idaho Code, and to read as follows:
16 49-2902. INTERAGENCY WORKING GROUP CREATED. (1) An interagency working
17 group is hereby created to advise the department of commerce and labor on
18 issues and policies in support of the department of commerce and labor's
19 administration of the rural economic development and integrated freight trans-
20 portation program established in section 49-2901, Idaho Code. The interagency
21 working group shall participate in planning and identifying program needs and
22 shall carry out its duties specified in section 49-2903, Idaho Code. Before
23 recommending state funding, using state dedicated funds, and recommending pri-
24 orities, the interagency working group shall seek pertinent information, facts
25 and data from state and local governments, and agencies regarding rural
26 freight transportation issues.
27 (2) The interagency working group shall be composed of seven (7) members:
28 (a) Four (4) members shall be appointed by the director of the Idaho
29 transportation department, two (2) of whom shall be employees of the Idaho
30 transportation department with a working knowledge of rail and truck
31 freight transportation and intermodal entities, one (1) member, not a
32 state employee, shall represent freight shipping interests, and one (1)
33 member shall be a representative from the local highway technical assis-
34 tance council; and
35 (b) Three (3) members shall be appointed by the director of the depart-
36 ment of commerce and labor, two (2) of whom shall be employees of the
37 department of commerce and labor with a working knowledge of economic
38 development issues, and one (1) member, not a state employee, shall repre-
39 sent business development and financing interests.
40 (c) At the beginning of each state fiscal year, the director of the
41 Idaho transportation department shall designate one (1) of his appointees
42 as cochairman, and the director of the department of commerce and labor
43 shall designate one (1) of his appointees as cochairman.
44 (d) Each member appointed shall serve at the pleasure of the appointing
45 authority, provided however, the service of state employee members shall
46 run concurrently with their state employment. Nonstate employee members
47 shall serve one (1) term of five (5) years, but may be appointed to serve
48 nonconsecutive terms, and shall be reimbursed according to the provisions
49 of section 59-509(b), Idaho Code.
50 (e) The interagency working group shall meet at such times as necessary
51 and appropriate to review applications for funds distributed pursuant to
52 the provisions of this chapter, but not less frequently than annually.
53 (3) The department of commerce and labor shall determine and provide such
3
1 amounts as are necessary for planning and operating expenses and staff assis-
2 tance and support in order to administer the program, and to administer the
3 fund established in section 49-2904, Idaho Code.
4 SECTION 4. That Section 49-2902, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 49-29023. DUTIES OF THE BOARD INTERAGENCY WORKING GROUP. (1) The Idaho
7 transportation board shall monitor the status of the state's mainline, short
8 line and branch line common carrier railroads through the state rail planning
9 process and various analyses, and shall seek alternatives to abandonment prior
10 to the federal surface transportation board proceedings, where feasible.
11 (2) The board interagency working group shall provide recommendations to
12 the department of commerce and labor in order for that department to establish
13 criteria for evaluating rail intermodal projects of significance to the state,
14 and the interagency working group shall continue to monitor projects for which
15 it provides assistance to the department of commerce and labor.
16 (32) The board interagency working group shall provide recommendations to
17 the department of commerce and labor in order for the department to develop
18 criteria for prioritizing freight rail and intermodal projects that meet the
19 minimum eligibility requirements for state assistance financial support from
20 the revolving loan fund created in section 49-2904, Idaho Code. Project crite-
21 ria should consider the level of local financial commitment to the project as
22 well as the cost/benefit ratio. Railroads, shippers, intermodal commerce
23 authorities as defined in chapter 22, title 70, Idaho Code, and others who
24 benefit from the project should participate financially to the greatest extent
25 practicable.
26 (43) The board interagency working group shall provide the assistance
27 necessary for the department to ensure that the state maintains a contingent
28 interest in any equipment, property, rail line, or facility that has outstand-
29 ing grants or loans. The owner of a qualified line as defined in section
30 49-2904, Idaho Code, shall not use the line as collateral, remove track,
31 bridges or associated elements for salvage, or use it in any other manner
32 subordinating the state's interest without permission from the board until any
33 loan made to the owner pursuant to this chapter has been repaid in full. As
34 the state is not a primary lender of money, it is understood the state may
35 need to take a subordinate position for its contingent interest.
36 SECTION 5. That Section 49-2903, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 49-29034. RAIL SERVICE PRESERVATION RURAL ECONOMIC DEVELOPMENT AND INTE-
39 GRATED FREIGHT TRANSPORTATION REVOLVING LOAN FUND. (1) The rail service pres-
40 ervation rural economic development and integrated freight transportation
41 revolving loan fund is hereby created in the state treasury. The Idaho trans-
42 portation board department of commerce and labor is authorized to administer
43 the rail service preservation rural economic development and integrated
44 freight transportation revolving loan fund. Moneys in the fund shall be used
45 only for the purposes specified in this section chapter. Surplus moneys in the
46 fund shall be invested by the state treasurer in the same manner as provided
47 under section 67-1210, Idaho Code, with respect to other surplus or idle
48 moneys in the state treasury. Interest earned on the investments shall be
49 returned to the rural economic development and integrated freight transporta-
50 tion revolving loan fund.
51 (2) Moneys in the fund are subject to appropriation and may consist of
4
1 appropriations, grants, repayment of loans and other revenues from any other
2 sources.
3 (3) Moneys in the fund may be used by the board for loans or grants for
4 qualified rail lines rural projects for the development and preservation of
5 intermodal rail and truck services and facilities upon terms and conditions to
6 be determined by the board department of commerce and labor with the assis-
7 tance and advice of the interagency working group as appropriate, for the pur-
8 pose of:
9 (a) Rebuilding, rRehabilitating, or improving rail lines to preserve
10 essential local rail service;
11 (b) Purchasing or rehabilitating railroad equipment necessary to maintain
12 essential rail service;
13 (c) Construction of loading or reloading facilities or other capital
14 improvements including building or improving local transportation infra-
15 structure, to increase business on light density lines and commerce, and
16 to improve shipping service, or mitigate impacts of abandonment on one (1)
17 line by improving service on another line; or
18 (d) Financial assistance to class III railroads for the preservation of
19 light density lines as identified by the Idaho transportation board Coor-
20 dinating intermodal truck and rail traffic for integrated rural freight
21 transportation.
22 (4) For the purposes of this chapter, "qualified lines" means class III
23 short lines, branch lines of class I or railroads leased or operated by a
24 class III railroad, branch lines of class II railroads, and lines owned by
25 public entities including port districts and intermodal commerce authorities.
26 Definition of class I, II and III railroads shall be as defined by the federal
27 railroad administration.
28 (5) Moneys received by the board department of commerce and labor from
29 loan payments or other revenues shall be redeposited in the rail service pres-
30 ervation rural economic development and integrated freight transportation
31 fund. Repayment of loans made under this chapter shall occur within a period
32 as set by the board department, but no repayment which exceeds fifteen (15)
33 years shall be allowed. The repayment schedule and rate of interest, if any,
34 shall be determined before the moneys are distributed.
35 (6) Moneys distributed under the provisions of this chapter shall be pro-
36 vided as loans whenever practicable, except in circumstances as determined by
37 the board to qualified lines or shippers.
38 SECTION 6. That Section 49-2904, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 49-29045. STATE RAIL AND INTERMODAL FACILITY SYSTEM PLAN. (1) The Idaho
41 transportation board department shall prepare and periodically update a state
42 rail and intermodal facility system plan, a primary objective of which is to
43 identify, evaluate and encourage the development and preservation of essential
44 rail and truck intermodal services. The plan shall:
45 (a) Identify and describe the state's rail system;
46 (b) Prepare state rail system maps;
47 (c) Identify and evaluate mainline capacity issues in cooperation with
48 the railroads;
49 (d) Identify and evaluate rail access and congestion issues;
50 (e) Identify and evaluate rail commodity flows and traffic types;
51 (f) Identify lines and corridors that have been rail banked or preserved;
52 (g) Identify and evaluate other rail and intermodal issues affecting the
53 state's freight transportation system and regional and local economies;
5
1 (h) Identify and evaluate those rail freight lines that are potentially
2 subject to abandonment in the future because of unmet capital needs or
3 other reasons, or have recently been approved for abandonment but the
4 track improvements are still in place;
5 (i) Quantify the costs and benefits of maintaining rail service on those
6 lines potentially subject to abandonment in the future; and
7 (j) Establish priorities for determining which rail lines or intermodal
8 commerce authorities should receive state support, and provide to the
9 interagency working group supporting information used in establishing such
10 priorities for use by the interagency working group in advising the
11 department of commerce and labor. The priorities should include:
12 (i) Tthe anticipated benefits to the state and local economy,;
13 (ii) Coordinated freight transportation system including the antici-
14 pated cost of road and highway improvements necessitated by the aban-
15 donment of the rail line, proposed project;
16 (iii) Establishment of an intermodal facility, if indicated;
17 (iv) Tthe likelihood the rail qualified line receiving funding can
18 meet operating costs from freight charges, surcharges on rail traffic
19 and other funds,; and
20 (v) Tthe impact of abandonment or capacity constraints on changes
21 in energy utilization and air pollution if the project does not
22 obtain state support; and
23 (j) Identify and describe the state's intermodal rural rail and truck
24 freight system by:
25 (i) Preparing state intermodal and regional freight transfer sta-
26 tion system maps;
27 (ii) Identifying and evaluating intermodal and truck and rail
28 freight transfer capacity and coordination issues in cooperation with
29 local government and the railroad and truck interests;
30 (iii) Identifying and evaluating intermodal and freight transfer
31 access and highway capacity issues; and
32 (iv) Identifying and evaluating major freight commodity origins,
33 destinations and traffic flows by mode and corridor.
34 (2) The Idaho transportation department shall provide information to the
35 interagency working group for assisting and advising the department of com-
36 merce and labor to monitor the status of the state's mainline, short line and
37 branch line common carrier railroads through the state rail planning process
38 and various analyses. In addition, the Idaho transportation department shall
39 submit to the interagency working group, its evaluation of alternatives to
40 abandonment prior to federal surface transportation board proceedings, where
41 feasible.
42 (23) The state rail and intermodal facility system plan may be prepared
43 in conjunction with any rail plan currently prepared by the Idaho transporta-
44 tion department pursuant to other federal rail assistance programs, or which
45 may be enacted, including if applicable, the federal local rail freight assis-
46 tance program.
REVISED REVISED REVISED REVISED
STATEMENT OF PURPOSE
RS 16127C3
This legislation sets up the Rural Economic Development and
Integrated Freight Transportation Program. It amends Idaho Code
49-203 to authorize the Department of Commerce and Labor as
administrator of the program, clarifies funding for economic
development and freight shipping and provides correct
terminology. It amends Idaho Code by the addition of a new
section 49-2902 to provide for duties of the interagency working
group, provides a correct code reference and re-designates the
section. It provides for distribution of moneys through revolving
loans. It amends section 49-2904 of the Idaho Code to direct the
Idaho Transportation Department to prepare and update a state
rail and intermodal facility system plan and to provide certain
information to the interagency working group, provides correct
terminology and re-designates the section.
FISCAL NOTE
There is no fiscal impact unless the Joint Finance and
Appropriations Committee provides an appropriation.
Contact
Name: Sen. Bob Geddes Rep. JoAn Wood
Sen. Skip Brandt Rep. Ken Roberts
Sen. Dean Cameron Rep. Scott Bedke
Sen. John McGee Rep. Mack Shirley
Sen. Michael Jorgenson Rep. Clete Edmunson
Sen. Curt McKenzie Rep. Eric Anderson
Rep. Bert Stevenson
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 820