Requires the state to take the necessary steps to expedite the environmental review and design processes to replace the Alaskan Way viaduct with a deep bore tunnel under First Avenue from the vicinity of the sports stadiums in Seattle to Aurora Avenue north of the Battery Street tunnel.   Official Text and Analysis.

To provide direction for the replacement of the Alaskan Way Viaduct. The substitute sets funding limits at 2.4 billion state funds with 400 million from tolling. The substitute also directs WSDOT to conduct a traffic and revenue study for a SR 99 deep bore tunnel for the purpose of determining the facility's potential to generate toll revenue. The study results are due to the Governor and the Legislature by January 2010.

To clarify that the City of Seattle must pay for city utility relocation costs, rather than all utility relocation costs. State funding may not be used for any utility relocation costs.

To declare that the state will replace the Alaskan Way Viaduct (Viaduct) with a deep bore tunnel, which must include four general purpose lanes in a stacked formation. Establishes that the state's maximum contribution to the Viaduct project is $2.4 billion. Provides that if the state's costs exceed $2.4 billion, no more than $400 million must be financed with toll revenue. Further provides that any costs in excess of $2.8 billion must be borne by property owners in the Seattle area who benefit from replacing the existing Viaduct with a tunnel. Provides that the city and county departments of transportation are responsible for the cost, delivery, and risks associated with the project components for which each department is responsible. Directs the Washington State Department of Transportation(WSDOT) to prepare a traffic and revenue study for the purpose of determining the bore tunnel's potential to generate toll revenue, and to provide a final report by January 2010 to the Governor and Legislature. Requires the state, city, and county departments of transportation to establish a single source of accountability for all elements of the Viaduct project. Directs the WSDOT to provide updated cost estimates for construction of the deep bore tunnel and for the full Viaduct replacement project to the Legislature and Governor by January 1, 2010. Requires that any contract entered into by the WSDOT for construction of the deep bore tunnel must include incentives and penalties to encourage on-time completion of the tunnel and to minimize the potential for cost overruns. Permits motor vehicles equipped with compression brakes to be operated in the deep bore tunnel. Modifies the emergency clause to take effect on July 1, 2009, instead of immediately.

To permit certain vehicles currently authorized to use compression brakes to operate those vehicles in the deep bore tunnel.

To make ongoing funding of the Alaskan Way viaduct replacement project contingent upon whether certain milestones are met.

Removes emergency clause.

To establish that the state's contribution to the Alaskan Way viaduct replacement project shall not exceed $2.4 billion and provides that if costs exceed $2.4 billion, no more than $400 million must be financed with toll revenue and establishes that any costs in excess of $2.8 billion must be borne by property owners in the Seattle area who benefit from replacing the existing viaduct with the tunnel.

Strikes the following provision establishing that: state funding for the project must include at least $400 million in toll revenue; the Department of Transportation must provide updates cost estimates for the project; any contract entered into by the Department related to construction of the tunnel must include incentives and penalties to encourage on-time completion and to minimize potential cost overruns; the state, city, and county Department of Transportation must establish a single point of accountability for the project; the state, city, and county Departments of Transportation are responsible for costs, delivery, and risks related to their respective project components; and the state's contribution of $50 million for the South Spokane Street viaduct project is contingent on the city of Seattle funding and providingcertain city street improvements, among other things.

To change many provisions in the underlying bill.

To remove the entire provision that conditions state funding for the south Spokane Street viaduct project on the city of Seattle's completion of certain city street improvements.

Offers a striking amendment that changes and modified the provisions in the underlying bill.

Senate agrees to House amendments.