Ferry system emergency decl.

AN ACT Relating to declaring the ferry system to be in a state of 1
emergency to authorize expedient actions; amending RCW 47.56.030, 2
47.60.010, 47.60.810, 47.60.315, and 47.60.826; adding a new section 3
to chapter 47.60 RCW; creating a new section; repealing RCW 4
47.60.838; and declaring an emergency. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. The legislature recognizes that Washington 7
state ferries provides lifeline services to specific communities. The 8
transition to the use of hybrid electric ferries derailed the 9
procurement of five new ferries that were to be constructed starting 10
in 2019. Washington state ferries has been in the process of 11
procuring new electric ferries since that time. The legislature has 12
been given procurement schedules that continue to get revised and 13
delayed. The date for when Washington state ferries will announce 14
whether there is a qualified shipyard that is willing to build the 15
first electric ferry is scheduled to occur in April 2025, with the 16
hope that the ferry may be delivered in 2028. 17
This act puts in place a contingency option in the event the bid 18
procurement to contract for the construction of the hybrid electric 19
ferry that is to be awarded spring 2025 is unsuccessful.20
H-0087.3
HOUSE BILL 1377
State of Washington 69th Legislature 2025 Regular Session
By Representatives Caldier, Barkis, Eslick, Couture, Richards,
Jacobsen, Corry, Ley, and Connors
Read first time 01/17/25. Referred to Committee on Transportation.
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NEW SECTION. Sec. 2. A new section is added to chapter 47.60 1
RCW to read as follows: 2
(1) If Washington state ferries fails to award a contract to a 3
qualified contractor to build the hybrid electric ferry designed by 4
Washington state ferries in the spring of 2025, the legislature is 5
providing this pathway for the governor to declare an emergency with 6
regard to ferry procurement and exercise the gubernatorial powers 7
authorized under chapters 38.52 and 43.06 RCW to take all the 8
necessary actions to expedite permitting and conduct an emergency 9
procurement to acquire at least two nonhybrid electric ferries with 10
the goal of delivery in two years. 11
(2) The department may use the existing design for the Olympic 12
class vessels to eliminate the need for additional design work and 13
realize the benefits of a fleet of interchangeable vessels, or the 14
department may procure and use a vessel design that is easily 15
adaptable or compatible with existing ferry infrastructure, can be 16
built expeditiously, will provide the necessary service, and can be 17
purchased within the budgeted amount for ferry vessel procurement. 18
The procurement shall also include a preference that all warranty 19
work on the vessels be performed within the boundaries of the state 20
of Washington, insofar as practicable. 21
(3) The department is directed to immediately take all the 22
necessary actions to expedite permitting and conduct an emergency 23
procurement to acquire nonhybrid electric vessels for expedited 24
delivery. 25
(4) The department may postpone the conversion of the second and 26
third jumbo mark II vessels to hybrid electric vessels until the 27
first conversion is complete and has been proven to be effective so 28
as not to exacerbate service problems or the department may choose 29
not to convert the third jumbo mark II vessel and advance its mid-30
life maintenance to facilitate having an operational ferry for less 31
cost and in a more timely manner. 32
(5) The provisions in this section will supersede and replace the 33
requirements in RCW 47.60.826 and any executive order that conflicts 34
with this section. 35
Sec. 3. RCW 47.56.030 and 2023 c 429 s 6 are each amended to 36
read as follows: 37
(1) Except as permitted under chapter 47.29 or 47.46 RCW:38
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(a) Unless otherwise delegated, and subject to RCW 47.56.820, the 1
department of transportation shall have full charge of the planning, 2
analysis, and construction of all toll bridges and other toll 3
facilities including the Washington state ferries, and the operation 4
and maintenance thereof. 5
(b) The transportation commission shall determine and establish 6
the tolls and charges thereon. 7
(c) Unless otherwise delegated, and subject to RCW 47.56.820, the 8
department shall have full charge of planning, analysis, and design 9
of all toll facilities. The department may conduct the planning, 10
analysis, and design of toll facilities as necessary to support the 11
legislature's consideration of toll authorization.12
(d) The department shall utilize and administer toll collection 13
systems that are simple, unified, and interoperable. To the extent 14
practicable, the department shall avoid the use of toll booths. The 15
department shall set the statewide standards and protocols for all 16
toll facilities within the state, including those authorized by local 17
authorities. 18
(e) Except as provided in this section, the department shall 19
proceed with the construction of ((such)) toll bridges and other 20
facilities including Washington state ferries and the approaches 21
thereto by contract in the manner of state highway construction 22
immediately upon there being made available funds for such work and 23
shall prosecute such work to completion as rapidly as practicable. 24
The department is authorized to negotiate contracts for any amount 25
without bid under (e)(i) ((and)), (ii), and (iii) of this subsection:26
(i) Emergency contracts, in order to make repairs to ferries or 27
ferry terminal facilities or removal of such facilities whenever 28
continued use of ferries or ferry terminal facilities constitutes a 29
real or immediate danger to the traveling public or precludes prudent 30
use of such ferries or facilities; ((and))31
(ii) Single source contracts for vessel dry dockings, when there 32
is clearly and legitimately only one available bidder to conduct dry 33
dock-related work for a specific class or classes of vessels. The 34
contracts may be entered into for a single vessel dry docking or for 35
multiple vessel dry dockings for a period not to exceed two years ; 36
and37
(iii) Emergency contracts, in order to construct new vessels in 38
the case of an emergency declared by the governor under section 2 of 39
this act and for mid-life maintenance on the jumbo mark II vessels.40
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(f) Any new vessel planning, construction, purchase, analysis, or 1
design work must be consistent with RCW 47.60.810, except as 2
otherwise provided in RCW 47.60.826 and section 2 of this act.3
(2) The department shall proceed with the procurement of 4
materials, supplies, services, and equipment needed for the support, 5
maintenance, and use of a ferry, ferry terminal, or other facility 6
operated by Washington state ferries, in accordance with chapter 7
43.19 RCW except as follows: 8
(a) When the secretary of the department of transportation 9
determines in writing that the use of invitation for bid is either 10
not practicable or not advantageous to the state and it may be 11
necessary to make competitive evaluations, including technical or 12
performance evaluations among acceptable proposals to complete the 13
contract award, a contract may be entered into by use of a 14
competitive sealed proposals method, and a formal request for 15
proposals solicitation. Such formal request for proposals 16
solicitation shall include a functional description of the needs and 17
requirements of the state and the significant factors.18
(b) When purchases are made through a formal request for 19
proposals solicitation the contract shall be awarded to the 20
responsible proposer whose competitive sealed proposal is determined 21
in writing to be the most advantageous to the state taking into 22
consideration price and other evaluation factors set forth in the 23
request for proposals. No significant factors may be used in 24
evaluating a proposal that are not specified in the request for 25
proposals. Factors that may be considered in evaluating proposals 26
include but are not limited to: Price; maintainability; reliability; 27
commonality; performance levels; life-cycle cost if applicable under 28
this section; cost of transportation or delivery; delivery schedule 29
offered; installation cost; cost of spare parts; availability of 30
parts and service offered; and the following: 31
(i) The ability, capacity, and skill of the proposer to perform 32
the contract or provide the service required; 33
(ii) The character, integrity, reputation, judgment, experience, 34
and efficiency of the proposer; 35
(iii) Whether the proposer can perform the contract within the 36
time specified; 37
(iv) The quality of performance of previous contracts or 38
services; 39
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(v) The previous and existing compliance by the proposer with 1
laws relating to the contract or services; 2
(vi) Objective, measurable criteria defined in the request for 3
proposal. These criteria may include , but are not limited to , items 4
such as discounts, delivery costs, maintenance services costs, 5
installation costs, and transportation costs; and 6
(vii) Such other information as may be secured having a bearing 7
on the decision to award the contract. 8
(c) When purchases are made through a request for proposal 9
process, proposals received shall be evaluated based on the 10
evaluation factors set forth in the request for proposal. When 11
issuing a request for proposal for the procurement of propulsion 12
equipment or systems that include an engine, the request for proposal 13
must specify the use of a life-cycle cost analysis that includes an 14
evaluation of fuel efficiency. When a life-cycle cost analysis is 15
used, the life-cycle cost of a proposal shall be given at least the 16
same relative importance as the initial price element specified in 17
the request of proposal documents. The department may reject any and 18
all proposals received. If the proposals are not rejected, the award 19
shall be made to the proposer whose proposal is most advantageous to 20
the department, considering price and the other evaluation factors 21
set forth in the request for proposal. 22
Sec. 4. RCW 47.60.010 and 2023 c 429 s 5 are each amended to 23
read as follows: 24
The department is authorized to acquire by lease, charter, 25
contract, purchase, condemnation, or construction, and partly by any 26
or all of such means, and to thereafter operate, improve, and extend, 27
a system of ferries on and crossing Puget Sound and any of its 28
tributary waters and connections thereof, and connecting with the 29
public streets and highways in the state. However, any new vessel 30
planning, construction, purchase, analysis, or design work must be 31
consistent with RCW 47.60.810, except as otherwise provided in RCW 32
47.60.826 and section 2 of this act . The system of ferries shall 33
include such boats, vessels, wharves, docks, approaches, landings, 34
franchises, licenses, and appurtenances as shall be determined by the 35
department to be necessary or desirable for efficient operation of 36
the ferry system and best serve the public. Subject to RCW 47.56.820, 37
the department may in like manner acquire by purchase, condemnation, 38
or construction and include in the ferry system such toll bridges, 39
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approaches, and connecting roadways as may be deemed by the 1
department advantageous in channeling traffic to points served by the 2
ferry system. In addition to the powers of acquisition granted by 3
this section, the department is empowered to enter into any 4
contracts, agreements, or leases with any person, firm, or 5
corporation and to thereby provide, on such terms and conditions as 6
it shall determine, for the operation of any ferry or ferries or 7
system thereof, whether acquired by the department or not.8
The authority of the department to sell and lease back any state 9
ferry, for federal tax purposes only, as authorized by 26 U.S.C., 10
Sec. 168 (f)(8) is confirmed. Legal title and all incidents of legal 11
title to any ferry sold and leased back (except for the federal tax 12
benefits attributable to the ownership thereof) shall remain in the 13
state of Washington. 14
Sec. 5. RCW 47.60.810 and 2023 c 429 s 3 are each amended to 15
read as follows: 16
(1) Except as otherwise provided in RCW 47.60.826 and section 2 17
of this act , the department shall use a modified request for 18
proposals process when purchasing new auto ferries, except for new 19
144-auto ferries purchased through an option on a contract executed 20
before July 6, 2015, whereby the prevailing shipbuilder and the 21
department engage in a design and build partnership for the design 22
and construction of the auto ferries. The process consists of the 23
three phases described in subsection (3) of this section.24
(2) Throughout the three phases described in subsection (3) of 25
this section, the department shall employ an independent owner's 26
representative to serve as a third-party intermediary between the 27
department and the proposers, and subsequently the successful 28
proposer. However, this representative shall serve only during the 29
development and construction of the first vessel constructed as part 30
of a new class of vessels developed after July 6, 2015. The 31
independent owner's representative shall: 32
(a) Serve as the department's primary advocate and communicator 33
with the proposers and successful proposer; 34
(b) Perform project quality oversight; 35
(c) Manage any change order requests; 36
(d) Ensure that the contract is adhered to and the department's 37
best interests are considered in all decisions; and38
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(e) Possess knowledge of and experience with inland waterways, 1
Puget Sound vessel operations, the propulsion system of the new 2
vessels, and Washington state ferries operations. 3
(3) The definitions in this subsection apply throughout RCW 4
47.60.812 through 47.60.822. 5
(a) "Phase one" means the evaluation and selection of proposers 6
to participate in development of technical proposals in phase two.7
(b) "Phase two" means the preparation of technical proposals by 8
the selected proposers in consultation with the department.9
(c) "Phase three" means the submittal and evaluation of bids, the 10
award of the contract to the successful proposer, and the design and 11
construction of the auto ferries. 12
(4) The department may modify an existing option contract 13
executed prior to July 6, 2015, to allow for the purchase of up to 14
five additional 144-auto ferries, for a total of nine 144-auto 15
ferries. The department must execute a new modification to an 16
existing option contract for each of the additional five ferries.17
Sec. 6. RCW 47.60.315 and 2023 c 472 s 714 are each amended to 18
read as follows: 19
(1) The commission shall adopt fares and pricing policies by 20
rule, under chapter 34.05 RCW, according to the following schedule:21
(a) Each year the department shall provide the commission a 22
report of its review of fares and pricing policies, with 23
recommendations for the revision of fares and pricing policies for 24
the ensuing year; 25
(b) By September 1st of each year, beginning in 2008, the 26
commission shall adopt by rule fares and pricing policies for the 27
ensuing year. 28
(2) The commission may adopt by rule fares that are effective for 29
more or less than one year for the purposes of transitioning to the 30
fare schedule in subsection (1) of this section. 31
(3) The commission may increase ferry fares included in the 32
schedule of charges adopted under this section by a percentage that 33
exceeds the fiscal growth factor. 34
(4) The chief executive officer of the ferry system may authorize 35
the use of promotional, discounted, and special event fares to the 36
general public and commercial enterprises for the purpose of 37
maximizing capacity use and the revenues collected by the ferry 38
system. The department shall report to the commission a summary of 39
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the promotional, discounted, and special event fares offered during 1
each fiscal year and the financial results from these activities.2
(5) Fare revenues and other revenues deposited in the Puget Sound 3
ferry operations account created in RCW 47.60.530 may not be used to 4
support the Puget Sound capital construction account created in RCW 5
47.60.505, unless the support for capital is separately identified in 6
the fare or except as provided in section 715, chapter 333, Laws of 7
2021 during the 2021-2023 biennium and section 716, chapter 472, Laws 8
of 2023 during the 2023-2025 fiscal biennium. 9
(6) The commission may not raise fares until the fare rules 10
contain pricing policies developed under RCW 47.60.290, or September 11
1, 2009, whichever is later. 12
(7) The commission shall impose a vessel replacement surcharge of 13
25 cents on every one-way and round-trip ferry fare sold, including 14
multiride and monthly pass fares. This surcharge must be clearly 15
indicated to ferry passengers and drivers and, if possible, on the 16
fare media itself. 17
(8) Except as provided in subsection (10) of this section, 18
beginning May 1, 2020, the commission shall impose an additional 19
vessel replacement surcharge in an amount sufficient to fund 25 year 20
debt service on one 144-auto hybrid vessel taking into account funds 21
provided in chapter 417, Laws of 2019 or chapter . . . (SSB 5419), 22
Laws of 2019 or vessels acquired pursuant to section 2 of this act . 23
The department of transportation shall provide to the commission 24
vessel and debt service cost estimates. Information on vessels 25
constructed or purchased with revenue from the surcharges must be 26
publicly posted including, but not limited to, the commission 27
website. 28
(9) The vessel replacement surcharges imposed in this section may 29
only be used for the construction or purchase of ferry vessels and to 30
pay the principal and interest on bonds authorized for the 31
construction or purchase of new ferry vessels. 32
(10) The commission shall not impose the additional vessel 33
replacement surcharge in subsection (8) of this section if doing so 34
would increase fares by more than 10 percent. 35
(11) For the 2023-2025 fiscal biennium, any ferry fuel surcharge 36
imposed by the commission may not go into effect until after the 37
ensuing regular legislative session. If a fuel surcharge is imposed 38
as provided under this subsection, the commission must reevaluate the 39
need for the surcharge on at least a quarterly basis to determine if 40
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the surcharge is still needed to cover increased fuel costs, and 1
revoke the surcharge if the determination is that the surcharge is no 2
longer needed for this purpose. 3
Sec. 7. RCW 47.60.826 and 2023 c 429 s 2 are each amended to 4
read as follows: 5
(1)(a) ((The)) Except as provided in section 2 of this act, the 6
department shall contract for the acquisition of up to five new 7
hybrid diesel-electric ferry vessels that can carry up to 144 8
vehicles, using a one or two contract procurement approach to 9
potentially accelerate vessel delivery. 10
(b) The Washington state ferries shall make available the design 11
for the 144 vehicle hybrid electric Olympic class vessel to potential 12
bidders. Incentives may be awarded by the department to bidders who 13
offer design modifications that: 14
(i) Lower the minimum number of crew needed to staff the vessel 15
in accordance with United States coast guard requirements;16
(ii) Incorporate materials, technologies, or other features that 17
lower life-cycle maintenance and operations costs;18
(iii) Accelerate the proposed delivery schedule; or19
(iv) Make other improvements determined to be beneficial by the 20
department. The Washington state ferries may allow for exceptions of 21
the 144 vehicle capacity of the vessel design in cases where 22
efficiencies outlined in (b)(i) or (ii) of this subsection are met.23
(2)(a) The contract or contracts must be for a minimum of two 24
vessels, with options for up to five vessels in total, and are exempt 25
from the requirements set forth in RCW 47.60.810 through 47.60.824.26
(b) The contract or contracts may employ the following 27
procurement methods: 28
(i) Design-build procedure as authorized under chapter 39.10 RCW;29
(ii) Design-bid-build as authorized under chapter 39.04 RCW or an 30
equivalent process allowed in statute as determined by the 31
department; or 32
(iii) Lease with an option to buy in accordance with RCW 33
47.60.010. The terms of any plan to pursue a lease with an option to 34
buy agreement must be approved by the governor and appropriate 35
committees of the legislature and are subject to the availability of 36
amounts appropriated for this specific purpose. 37
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(c) To the extent possible, the department shall establish and 1
apply evaluation criteria beyond low price to meet best value 2
objectives. 3
(d) The department must award a credit of 13 percent of the bid 4
price for bid proposals for vessels constructed in the state of 5
Washington, which must be adjusted to reflect the proportion of the 6
construction of the vessels that occurs within the state. This credit 7
represents the: 8
(i) Amount of economic and revenue loss to the state of 9
Washington from constructing vessels outside the state of Washington, 10
as indicated by the Washington institute for public policy study 11
regarding Washington state ferry vessel procurement dated December 12
2016; and 13
(ii) Additional costs of transport, potential delay, and owner 14
oversight incurred for construction at shipyards located outside the 15
state of Washington. 16
(e) The department must require that contractors meet the 17
requirements of RCW 39.04.320 regarding apprenticeships or other 18
state law or federal law equivalents, where such equivalents exist.19
(f) The department must require that contractors meet the 20
requirements of chapter 90.48 RCW regarding water pollution control 21
or other state law or federal law equivalents, where such equivalents 22
exist. 23
(3) For contracts eligible for the use of federal funds, 24
contractors must comply with federal disadvantaged business 25
enterprise targets as outlined by the federal agency awarding funds.26
(4) Contractors located in the state of Washington must meet the 27
requirements of RCW 47.60.835, the small business enterprise 28
enforceable goals program. 29
(5) The department shall employ third-party experts that report 30
to the Washington state ferries to serve as a supplementary resource. 31
The third-party experts contracted by the Washington state ferries 32
shall: 33
(a) Perform project quality oversight and report to the 34
transportation committees of the legislature and the office of 35
financial management on a semiannual basis on project schedule, 36
risks, and project budget; 37
(b) Assist with the management of change order requests;38
(c) Advise on contract and technical matters; and39
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(d) Possess knowledge of and experience with inland waterways, 1
Puget Sound vessel operations, the propulsion system of the new 2
vessels, and Washington state ferries operations. 3
NEW SECTION. Sec. 8. RCW 47.60.838 (Vessel and terminal 4
electrification program) and 2022 c 182 s 431 are each repealed.5
NEW SECTION. Sec. 9. This act is necessary for the immediate 6
preservation of the public peace, health, or safety, or support of 7
the state government and its existing public institutions, and takes 8
effect immediately.9
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