Longview, Cowlitz County, WA Size: Small Project

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Project Title: Industrial Way/Oregon Way Intersection Project Location: Longview, Cowlitz County, WA Size: Small Project

Urban/Rural: Rural

INFRA Request: $13,420,000

Contact: Ken Hash, Public Works Director Supporting Materials Website. Phone: (360) 442-5202 Website links to referenced Email: [email protected] attachments provided Address: 1525 Broadway Street throughout this narrative Longview, WA 98632 document.

Table of Contents

1. PROJECT SUMMARY 1

2. PROJECT LOCATION 7

3. PROJECT PARTIES 9

4. GRANT FUNDS, SOURCES AND USES OF ALL PROJECT FUNDING 10

5. MERIT CRITERIA 11

5.1 Criterion #1: Support for National or Regional Economic Vitality 12

5.2 Criterion #2: Leveraging of Federal Funding 17

5.3 Criterion #3: Potential for Innovation 19

5.4 Criterion #4: Performance and Accountability 20

6. PROJECT READINESS 21

7. LARGE/SMALL PROJECT REQUIREMENTS 24

8. CONCLUSION 25

To address significant deficiencies at the intersection of two critical state highways, the project would construct a fully elevated signalized intersection southwest of the existing Basic Project Information intersection and realign adjacent road and rail connections to provide better freight access, relieve congestion, improve safety and enhance access to industrial users and undeveloped industrial property. What is the Project Name? Industrial Way/Oregon Way (IWOW) Intersection Project Who is the Project Sponsor? Longview, Washington Was an INFRA application for this project submitted No previously? (If Yes, please include title) Project Costs Fill in Information Below INFRA Request Amount $13,420,000 Estimated Federal funding (excl. INFRA), anticipated to be $0 used in INFRA funded future project Estimated non-Federal funding anticipated to be used in $83,230,000 INFRA funded future project. Future Eligible Project Cost (Sum of previous three rows) $96,650,000 Previously incurred project costs (if applicable) $1,770,000 Total Project Cost (Sum of previous incurred and future $98,420,000 eligible) Are matching funds restricted to a specific component? If No so, which one? Project Eligibility: To be eligible, all future eligible project costs must fall into at least one of the following four See below categories Approximately how much of the estimated future eligible project costs will be spent on components of the project $0 currently located on National Highway Freight Network (NHFN)? Approximately how much of the estimated future eligible project costs will be spent on components of the project $96,650,000 currently located on the National Highway System (NHS)? Approximately how much of the future eligible project cost will be spent on components constituting railway-highway $96,650,000 grade crossing or grade separation projects? Approximately how much of the estimated future eligible project costs will be spent on components constituting intermodal or freight rail projects, or freight projects $96,650,000 within the boundaries of a public or private freight rail, water (including ports), or intermodal facility? Project Location Longview/Cowlitz County State(s) in which project is located Washington State Small or large project Small Urbanized Area in which project is located, if applicable Longview, Washington Population of Urbanized Area (According to 2010 Census) 64,164 Is the project located (entirely or partially) in an Yes, Census Tract 53015000300 Opportunity Zone? Is the project currently programmed in the: TIP, STIP, MPO The project is currently in the STIP, SW RTPO, Longview- Long Range Transportation Plan, State Long Range Kelso-Rainier MPO 2045 RTP (PIN: 443219A). It will be added Transportation Plan, State Freight Plan? to the TIP upon award.

1. Project Summary The City of Longview is requesting $13,420,000 from the Infrastructure for Rebuilding America (INFRA) discretionary grant program to complete construction of its Industrial Way/Oregon Way (IWOW) project. IWOW is a transformative modernization of an economically crucial corridor that will elevate the Industrial Way (State Route (SR) 432) and Oregon Way (SR433) intersection, and eliminate three at-grade rail crossings by grade separating the roadway and rail lines. The project is an important component to the long-term economic vitality of Longview, Washington, Cowlitz County and rural southwest Washington by unlocking longstanding economic potential in a federally designated Opportunity Zone.

Completion of IWOW will enhance freight mobility in a heavily congested freight route and provide better access to a regional employment center located on the banks of the Columbia River, an international trade corridor, that includes the Port of Longview and Weyerhaeuser, and many other industrial/manufacturing employers (Figure 1-1).

Figure 1-1: IWOW project design

1 The $98.42 million IWOW project will address the following long-term objectives:

➢ Accommodate current and future freight truck and passenger vehicle movement through the intersection, across the region and between Oregon and Washington. ➢ Enable freight access to the Port of Longview’s Barlow Point property, an undeveloped 280- acre greenfield site zoned for manufacturing use with direct access to the Columbia River Channel, an international trade gateway. ➢ Improve travel reliability and safety for all vehicles. ➢ Improve emergency response access and timing. ➢ Create 1,070 construction jobs and facilitate approximately 3,335 new jobs in adjacent underutilized industrial areas, including two Opportunity Zones; and ➢ Better connect lower income communities and vulnerable populations to job centers by providing more transportation options via vehicular, transit and bike/pedestrian.

1.1 Project Components

The IWOW intersection is four-legged with Industrial Way (SR432) as the east and west legs, Oregon Way as the north leg, and SR433 as the south leg. SR433 crosses the Columbia River and state line at the Lewis and Clark Bridge south of the intersection and terminates at US 30 in Rainier, Oregon.

Additionally, there are three at-grade roadway/railroad crossings in the vicinity of the intersection (Figure 1-2): the

Reynolds Lead (owned jointly by the BNSF Figure 1-2: At-grade rail crossings Railway and Union Pacific Railroad) crosses Industrial Way just west of the intersection (Cross ing A) and crosses Oregon Way just north of the intersection (Crossing B); the Port Lead crosses Industrial Way just east of the intersection (Crossing C). A future extension of the Port of Longview’s Industrial Rail Corridor (IRC) is proposed to cross SR433 south of the intersection (Crossing D) and connect to the Reynolds Lead. The specific alignment for the IRC extension has not yet been established, so a conceptual crossing alignment is shown in Figure 1-2.

IWOW would construct a fully elevated signalized intersection southwest of the existing ][‘=== intersection and realign the Reynolds Lead rail line to pass under the new elevated roadway with all turning and through movements grade separated from the rail lines as seen in Figure 1-1. Access along Oregon Way and Industrial way would be re-established to the local businesses and homes along the corridor outside the extents of the elevated roadways.

2 The project also includes the following bicycle and pedestrian network improvements, all of which would be compliant with the standards of the United States Access Board Revised Draft Guidelines Accessible Public Rights-of-Way (2005) to meet the Americans with Disabilities Act (ADA):

➢ Reuse or reconstruction of the existing Oregon Way sidewalk (west side) that runs along the west side of Oregon Way from Highlands Trail to the Oregon Way/Alabama Way intersection. ➢ New sidewalk on the new surface roadway that runs along the east side of Oregon Way from the new shared-use path to the Oregon Way/Alabama Way intersection. ➢ Reuse or reconstruction of the existing Industrial Way sidewalk (north side) on the north side of the new surface road along Industrial Way from the shared-use path to Columbia Boulevard. ➢ New sidewalk on south side of Industrial Way from the point where Industrial Way touches down on the surface to Columbia Boulevard.

1.2 Project Cost and Funding The total estimated project cost is $98,420,000. The City of Longview is seeking $13,420,000 in INFRA grant funding to match $85,000,000 provided by the Washington State Legislature through the Washington State Department of Transportation (WSDOT) Connecting Washington funding program. In 2015, the Washington State Legislature passed Senate Bill 5987 to create the Connecting Washington program that allocates $16.1 billion on new highways, maintenance and repair of infrastructure, and investments in multimodal projects, and programs. The 16-year program, funded primarily by an 11.9-cent gas tax increase, was fully phased-in on July 1, 2016.

The Washington State Legislature understood the importance of the IWOW project, and provided a significant down payment towards its completion. Unfortunately, since 2015, costs for the project have escalated, primarily due to findings that deeper foundations are necessary for the structure. A funding gap of $13,420,000 remains in order to complete and realize the transformative benefits of this project. To date, $1.77 million of the $85 million in state funds have been spent by WSDOT on the draft Environmental Impact Statement (DEIS) and associated environmental documents.

1.3 Existing Operational Deficiencies Industrial Way (SR432) and the intersecting Oregon Way (SR433) are designated as Highways of Statewide Significance by the Washington State Legislature, which recognizes that both highways provide a vital transportation and economic connection between communities across the state and support state, interstate, and international freight movement. Enabling the transport of over 20 million tons of annual gross truck tonnage, the IWOW intersection is one of Washington State’s busiest intersections in terms of freight movement by truck. Trucks typically comprise over 20 percent of the traffic volume on Industrial Way (SR432) and the intersecting SR433.

Most of this freight movement is associated with the Port of Longview and other local industrial operations. The Port of Longview is Washington State’s third largest port and the first deep draft, full-service port reached going upriver on the Columbia River. It is a critical economic driver and employment generator for Longview, Kelso, Cowlitz County and the greater Southwest Washington region.

3 Congestion: The IWOW project would reduce congestion during AM, midday, and PM peak hours compared to the No Build Alternative outlined in the Draft Environmental Impact Statement (DEIS). This reduction, measured in average delay per vehicle, would be 15–30 percent less than the No Build Alternative when trains are not operating on the railroads. When trains are operating, the average delay per vehicle would shrink Image 1-1: Looking South on SR433 at one of three at-grade rail crossings. Traffic completely dramatically by 40–70 stopped for train. percent.

Without the IWOW project, truck freight movement will be increasingly impaired as roadway traffic volumes grow, overall congestion worsens, roadway blockages from train crossings become more frequent, and travel times become less reliable. Traffic volumes at the intersection are expected to increase 40-50 percent by 2040. Costs and travel times associated with freight movement by truck will increase and have an adverse impact on truck-dependent business operations and viability. This adverse impact to freight truck travel reliability will be detrimental to the financial health of local industries, Port of Longview, and Pacific Northwest businesses that depend on truck travel through this corridor, which in turn will negatively impact local and regional employment.

Current traffic conditions for the project intersection during the PM peak hour reveal each vehicle experiences approximately 50 seconds of delay. However, when an industry train crosses Oregon Way during the PM peak hour, this average delay increases to over 70 seconds per vehicle, which increases overall congestion by 45 percent during the PM peak hour. Under the No Build Alternative, the traffic conditions get significantly worse by 2040 with delays increasing from 30% during the AM hour to 300% in the PM hour. A 247 second (4 minute and 11 second) average would be a significant barrier to the viability of freight and auto traffic (see Table 1-1).

Table 1-1: Average Delay per Vehicle for the Existing Conditions and No-Build Alternative 2040

4 Queuing: During train crossings at PM peak periods, traffic delays approach roadway capacity thresholds because a train blocks the roadway for an average of 5 minutes. During that time, vehicle queues can reach up to 3,000 feet in length and take 15 minutes or more to clear. Projected economic growth is expected to make the situation far worse. By 2040, the number of trains crossing the intersection are projected to increase from 4 to 6 a day on average to 28-30 trains per day which would translate to a train crossing every 50 minutes. (See Attachment 1: BCA Pages 21-22).

By elevating the intersection over all railroads, IWOW would prevent any additional queuing from trains operating on the railroads. With IWOW, the presence of trains would not affect roadway operations so the ‘no train and ‘with train’ queuing conditions would be the same. Similarly, there would be no recovery time since pre-train and post-train conditions would not be influenced by any roadway blockage by trains.

Travel Reliability: Although rail service would still increase to 28–30 trains per day crossing through the intersection as in the No Build Alternative, completion of IWOW would ensure no impacts from these train crossings on the intersection’s traffic operations. All vehicular traffic movements would be elevated and isolated from the train operations, eliminating stopped conditions associated with roadway blockages from train crossings or in recovery time conditions (slower traffic flow than before the train). Drivers and commercial/industrial/public vehicle dispatchers would have more reliable conditions to plan trips; day-to-day travel conditions would be substantially more reliable compared to the No Build Alternative.

Safety: Regional growth in population and employment over time have contributed to increased levels of traffic and congestion, which adversely affect roadway safety and emergency response. Between 2012 and 2016, the Industrial Way/Oregon Way intersection experienced 75 crashes with 33 percent injury-related and 67 percent involving property- damage only. Nearly half were rear-end crashes likely due to traffic congestion (Figure 1-3).

Four emergency service providers operate in the community and have at least one critical route that passes through the project intersection: Longview Fire Department, Columbia River Fire & Figure 1-3: Types of crashes 2012-2016 Rescue, Cowlitz 2 Fire & Rescue and Clatskanie Rural Fire Protection District.

5 including emergency vehicles, must stop while trains are passing through at-grade rail/roadway crossings.

As congestion worsens over time at the Industrial Way/Oregon intersection, crashes under the No Build Alternative would increase by 233 incidents with more vehicles on the roadway, less space to maneuver, and higher risk-taking behavior by drivers (e.g., running red lights, using smaller gaps in traffic to turn or merge). IWOW would reduce congestion through added capacity and reduced vehicle conflicts with train crossings, thereby improving roadway safety compared to No Build conditions.

Similarly, emergency service response times would be better than the No Build Alternative due to separation of roadway/railroads and additional roadway capacity. All emergency vehicle movements would use the elevated roadways.

1.4 Long-Term Outcomes The IWOW project would address intersection deficiencies that are degrading traffic operations and causing significant congestion, travel delay, and safety issues. Project improvements would facilitate regional economic development by keeping freight trucks, employees, residents, and tourists moving through the corridor, improve safety and emergency access for first responders and reduce congestion.

More reliable and timely freight truck service would support the area’s business and employment base, keeping it financially healthy and vibrant. As a result, the IWOW project would enhance the area’s regional and national economic competitiveness for decades. Based on the BCA results (7% discount), the IWOW project will result in:

➢ An estimated 23.9 million hours of travel time savings (19.5 million hours and 4.4 million hours of time savings for passenger cars and trucks, respectively) resulting in $76.7 million in savings. ➢ Increase in employment and economic activity by 1,070 jobs due to design and construction activities. ➢ Fuel consumption reductions estimated to be worth $6.2 million. ➢ Reduction in total crashes due to grade-separated intersection configuration over the operations period saving $7.0 million. ➢ The Build Alternative has a useful life span that extends beyond the BCA operations period due to reconstruction of a major infrastructure asset. The residual value of the asset at the end of the analysis period is estimated to be $2.2 million. ➢ The facilitation of up to 3,335 new jobs at the Port of Longview’s Barlow Point property (See Attachment 3: Barlow Point Concept Planning, Page 7). ➢ Qualitative benefits such as reliable emergency response times, reliable travel times at periods of train crossing, and increased quality of life due to better bike-ped and multimodal access (for more information refer to Attachment 1: BCA, Section 5.4).

6 2. Project Location The project is located within the Longview, WA—OR Urbanized Area, a Census-designated Urbanized Area, and Census Tract 53015000300 a federally recognized Opportunity Zone. The intersection plays a key role in an economically critical corridor for highway, rail, and marine transportation infrastructure connecting to and supporting businesses.

Longview, Washington, was established in the early 1900s to support the bustling timber industry in the Pacific Northwest. Since then, Longview’s waterfront has undergone dramatic physical modifications with its long history of industrial development, connecting road and rail-based industries with marine transport on the Columbia River. The Industrial Way/ Oregon Way Intersection (IWOW) project is located in the heart of Longview’s industrial waterfront area where State Route (SR) 432 and SR433 intersect. SR432 and SR433 are both Image 2-1: Area map Highways of Statewide Significance and part of the National Highway System, which support regionally significant passenger and freight truck movement and connect major communities across the states of Washington and Oregon.

The IWOW intersection is an economically critical junction within the Washington-Oregon bistate trade corridor and is one of only a few corridors in Washington State where the highest classification of truck freight, rail freight and waterway freight meet (See Attachment 4: Washington Freight and Goods Update Pages 2, 19, 49, 50). Located on the Columbia River and joining major interstate highway and rail freight routes, this location provides businesses with access to local, state, national, and international markets that attracts economic development to the area.

The Washington State Freight Mobility Plan gives the SR432 Corridor the highest designations for freight movement. The Corridor is designated a T-1 truck freight route moving more than 10

7 million tons per year; R-1 rail route moving more than 5 million tons per year; and W-1 economic waterway greater than 25 million tons per year (Columbia River).

The past three decades have seen continual public and private investments that have incrementally enhanced the area’s industrial and manufacturing-driven economy, including the dredging of the Columbia River Channel to a depth of 43 feet. The $173 million dredging project was completed in 2010. The deeper channel enhances navigation access and waterborne commerce, which has since spurred billions in regional economic growth and resulted in companies investing hundreds of millions of dollars in infrastructure along the Columbia River. Industrial development in the Longview area is anticipated to continue growing as large vacant lands are primarily planned for industrial development. The largest vacant lands would likely involve multimodal transfer of imported and exported goods from the rail and roadway network to/from the marine network.

Existing highway infrastructure deficiencies were identified by the State of Washington Department of Highways (predecessor to WSDOT) along the SR432 corridor as early as 1968. Several studies followed in the 1980s through 2014 when the SR432 Highway Improvements and Rail Realignment Study identified over $356 million dollars in necessary improvements along the SR432 corridor. The study identified significant traffic operational and safety deficiencies and selected the IWOW project to move forward through environmental review, design, and construction because it would have the “greatest benefit to congestion, freight truck mobility, and safety.” (Attachment 5: DEIS, page 1-2)

Industrial Way (SR432), is the primary trucking route strategically linking the Port of Longview and nearby large waterfront industries, the City of Longview, and the Longview industrial corridor to major markets via Interstate 5. SR432 also provides a critical transportation link between Interstate 5 and US Hwy 30 in northwest Oregon via SR433 and the Lewis and Clark Bridge. The corridor is situated primarily in an urbanized environment, with a rural/urban transition area on the west end of SR432 where the Port of Longview recently acquired 280 acres of undeveloped property in Barlow Point, down river from the current Port facility, to develop additional berths and industrial land.

The Millennium Bulk Terminals import/export shipping facility and the City of Longview’s Mint Farm Industrial Park are also located in this area. Traveling east along SR432, the corridor land uses increase in intensity with residential, commercial and industrial uses adjacent to each other, including residential neighborhoods, Weyerhaeuser Corporation, NORPAC, Port of Longview and its associated tenants, and other private industrial and commercial enterprises, before connecting with Interstate 5. The entire route is designated as an Intermodal Connector within the National Highway System and is designated as a Highway of Statewide Significance by the Washington State Department of Transportation.

The Columbia River trade route is the second-largest grain exporting river channel in the world and the point of embarkation for cargo originating from over 40 states. The Port of Longview is the first deep draft, full-service operating port on the Columbia River. Several recent investments

8 have heightened interest and demand for development along the river in the Longview region’s industrial corridor, with increased international demand for export and import of bulk commodities and a wide variety of freight. The SR432 corridor includes the large industrial complexes of Pacific Fibre Products, Inc., Pacific Lumber and Shipping, LLC, Kapstone Paper and Packaging Corporation, Millennium Bulk Terminals, and the City of Longview’s Mint Farm Industrial Park, among others.

INFRA investment will enhance the region’s position as a leader in the international trade market, expanding current businesses, attracting new development, and creating jobs in a rural area with high unemployment rates. Achieving these outcomes is dependent on a functional and reliable transportation network that can safely and efficiently accommodate the proliferation of freight activity alongside baseline growth in vehicular, bicycle, and pedestrian traffic due to regional population and employment growth. 3. Project Parties The City of Longview is the sole applicant and is supported by state, regional, and local entities that are ongoing participants in the regional SR432 Rail Realignment and Highway Improvements Project Study and other efforts to improve the efficiency of the corridor.

3.1 City of Longview, Washington The City of Longview will be the grant recipient and work in partnership with WSDOT, the Project Delivery Partner, to complete construction. Longview, within Cowlitz County, has 34,660 people, 14,066 households, and 8,931 families residing within the city. Longview provides a full range of services to its residents and businesses and is a partner with Weyerhaeuser in development of the Mint Farm Industrial Park along the SR432 corridor. Longview’s Engineering Division has the capacity and expertise to complete this INFRA project.

3.2 Washington State Department of Transportation WSDOT is the Project Delivery Partner and is the lead entity on construction management. The State of Washington has dedicated $85 million for the design, engineering and construction of the project. WSDOT is the steward of a large and robust transportation system and is responsible for ensuring that people and goods move safely and efficiently. WSDOT oversees 18,600 state highway lane-miles, more than 3,600 bridge structures, 47 rest areas, and 20 ferry terminals, and is in the midst of delivering a $16.3 billion capital improvement program. WSDOT partners with Longview to maintain and operate SR432 within the Longview city limits.

3.3 Port of Longview The Port has been operating since 1921 and has eight marine terminals and waterfront industrial property located on the Columbia River. The Port plays an important role in economic development by creating jobs in manufacturing and international trade; approximately 10% of jobs in the region are attributed to Port activity. It develops

9 infrastructure to support these jobs at its marine terminals and industrial property, creating a positive economic ripple that strengthens the region.

3.4 Cowlitz-Wahkiakum Council of Governments CWCOG was established in 1961. The CWCOG is one of nine councils of government and regional councils in Washington State. CWCOG is the lead agency for a bi-state MPO, comprised of the urbanized areas of Longview and Kelso, Washington and Rainier, Oregon. The urbanized area, originally designated as an MPO in 1982 by federal and state governments, covers an area home to over 66,000 people.

3.5 Cowlitz County Cowlitz County is home to approximately 102,000 residents, roughly 56% of who live in the incorporated cities of Castle Rock, Kelso, Longview, Kalama, and Woodland. The county produces a large supply of logs and finished lumber and paper/packaging products for domestic and international markets, but its economy is becoming more diversified with development of non-timber related product manufacturing.

3.6 The City of Kelso Kelso is a city in southwest Washington State and is the county seat of Cowlitz County. At the 2010 Census, the population was 11,925. Kelso shares its western border with Longview, Washington.

4. Grant Funds, Sources and Uses of all Project Funding The IWOW project was funded in 2015 through the WSDOT Connecting Washington funding program (See Attachment 6: Local Funding Commitment Letter). The project ID designated by the State is L2000091 and the funding is available for spending from 2017 to 2025.

Of the $85 million committed by the State of Washington, $1.77 million has been spent to date on planning, design, permitting and public outreach including the completion of a draft Environmental Impact Statement. Thus, $83.23 million remains of the state funding that will go towards final design, engineering, right of way and project construction.

The total project cost is $98,420,000 and the City of Longview is requesting $13,420,000 in INFRA funds. None of the requested INFRA funds would be subject to the limit on freight rail, port, and intermodal infrastructure. The project is leveraging $85,000,000 in state funding to the project, an 86.4% local match. Requested INFRA funds will be used to complete the construction of road portions of the project. Other than needing to spend the state funds by 2025, there are no restrictions on the use and timing of non-federal funds that will be dedicated to the project.

Because the project’s purpose is to create a rail/highway grade separation on a National Highway System (NHS) asset, all future costs are considered to be spent on the NHS, will be spent on components of a grade separation project, and spent on components of a freight project within

10 the boundaries of freight rail. If DOT reduces the amount of award, the City has the ability to limit the scope of the project and/or phase portions of the project. See Tables 4-1: Funding Uses and Sources below for details. For a full breakdown of the project budget and specific components, see Attachment 7: Project Budget.

INFRA Non- Project Component Cost Matching Source Request Federal Preliminary Engineering (Surveying, $5,590,000 $5,590,000 State of Washington Design, Coordination) Right-of-Way Process & Acquisition $25,800,000 $25,800,000 State of Washington Site Preparation and Grading $8,270,000 $8,270,000 State of Washington Rail Track, Signals, Electrical, Grade $3,020,000 $3,020,000 State of Washington Crossings Construction $44,990,000 $13,420,000 $58,410,000 State of Washington Contingency $10,750,000 $10,750,000 State of Washington Total $98,420,000 $13,420,000 $85,000,000

Project Parties Total Project Cost $98,420,000 USDOT (INFRA) $13,420,000 13.6% Non-Federal Funds (Local Match) $85,000,000 State of Washington $85,000,000 86.4% Requested INFRA Funds $13,420,000 Tables 4-1: Funding and Uses Sources Other Federal Funds $0 Percentage of Federal Funding in 13.6% Total Project Percentage of INFRA Funding in 13.6% Total Project Percentage of Local Match in Total 86.4% Project 5. Merit Criteria Located in the Longview Industrial Area, the Industrial Way/Oregon Way intersection is a critical connection of SR432 and SR433, two Highways of Statewide Significance and part of the National Highway System, which support significant passenger and freight movement. The purpose of the long planned, $98.42 million project is to construct a well-designed intersection that addresses critical long-term solutions, including:

➢ Accommodate current and future freight truck, passenger vehicle and bike/ped movement safely through the intersection. ➢ Maintain and improve access to commercial and industrial areas across the region, through the Columbia River corridor and to major export terminals serving world markets for timber, grain, fertilizers, steel and other commodities. ➢ Create over 1,100 construction jobs and facilitate the creation of over 3,335 jobs in adjacent underutilized industrial areas, including two opportunity zones. ➢ Enhance the regional, national and international economic competitiveness of the Port of Longview and existing businesses.

11 ➢ Decrease travel times between Longview and the critical Interstate 5 (I-5) corridor. ➢ Improving emergency response access and timing. ➢ Linking lower income communities with job centers via vehicle, transit and bike/pedestrian modes of transportation.

5.1 Criterion #1: Support for National or Regional Economic Vitality The Industrial Way/Oregon Way intersection is one of Washington State’s busiest freight corridors with trucks typically comprising of over 20 percent of the traffic volume on Industrial Way and over 20 million annual gross tonnage moving through the intersection (See Attachment 5: DEIS, page 1-5). SR432 and the intersecting SR433 are both designated as Highways of Statewide Significance by the Washington State Legislature. The intersection is a unique gateway for industries and business to access regional and international markets that drive the economy of a rural community. Consistent with the ROUTES Initiative, this project will significantly increase safety, infrastructure condition, and passenger and freight usage in this rural area.

Image 5-1: Freight trucks comprises of over 20% of the traffic volume at the IWOW intersection with over 20 million annual gross tonnage moving through it via truck. Growing Vehicular Demand and Congestion The Industrial Way/Oregon Way intersection experiences heavy congestion during peak periods with backups that are longer than available turn lanes for most turn movements. WSDOT, as required by Revised Code of Washington (RCW) 47.06.140(2), has determined the IWOW intersection is operating at or below the Minimum Level of Service and received a Level of Service (LOS) standard D. The congestion is exacerbated by three at-grade roadway/railway crossings that brings an average of 4 trains through the intersection each day creating a complete traffic blockage. Existing at-grade rail crossings causes train traffic to routinely block the roadways between 5 to 7 minutes and cuts off the Port and industrial properties from emergency services

12 resulting in serious safety concerns. The resulting backups require about 15 to 20 minutes to return to non-blockage conditions. The situation creates increasingly unreliable travel times and greatly hinders existing and future businesses ability to invest in growth without a solution to these challenges.

With growth and development opportunities in the area, traffic volumes in the intersection are expected to increase 40-50 percent by 2040 and bring the Intersection Level of Service to F, a failing intersection. In addition, economic projections have found that by 2040, 24-30 trains will cross through the intersection each day, primarily driven by anticipated growth at the Port of Longview, the Mint Farm Industrial Park and the Millennium Export Terminal (Attachment 1: BCA page v). Freight truck movement will become increasingly impaired as roadway traffic volumes grow, overall congestion worsens, roadway blockages due to train crossings becoming more frequent, and travel times become less reliable. Costs and travel times associated with freight truck movement will increase and have an adverse impact on truck-dependent business operations and viability. This adverse impact to freight truck travel reliability will be detrimental to the financial health of local industries, Port of Longview, and Pacific Northwest businesses that are dependent on truck travel through this corridor.

Project Benefits A Benefit-Cost Analysis (BCA) for the IWOW project was performed to assess whether its expected benefits justify the federal investment. The BCA’s key assumptions, methodology, and findings are described in detail in a separate technical memo (Attachment 1: BCA).

The Build Alternative proposes improvements to the critical connection of two highways, SR432 and SR433 in Longview, Washington.

The IWOW project (Build Table 5-1: Changes to intersection with project completion. Source: Attachment 1: DEIS Alternative) will convert the existing Industrial Way/Ore gon Way intersection to an elevated grade-separated intersection with no at- grade rail crossings and provide better access to intermodal and freight facilities. Under No-Build conditions, congestion and delay will worsen over time and impede economic competitiveness. IWOW will significantly reduce congestion, reduce excessive delay, improve safety, reduce fuel consumption, and provide better access for the local community including environmental justice populations. The Build Alternative will also maintain or improve emergency response access, improve travel time reliability, and enhance freight movement in and out of the Port of Longview. The changes under the No Build and Build scenarios are described in Table 5-1.

13 The BCA estimates the Build Alternative will generate $88.4 million in discounted benefits using a 7 percent discount rate. The project’s capital cost with the same 7 percent discount rate are estimated to be $70.3 million. The benefit cost ratio (BCR) is 1.26 and the Net Present Value (NPV) of Build Alternative is estimated to be $18.1 million at 7 percent discount rate. The IRR of the Build Alternative is estimated to be 1.20 percent discounted at 7 percent. These results are primarily driven by the sizeable impact of the value of travel time savings, safety savings due to crash reductions, reduced fuel consumption, and reduction in emissions costs. See Table 5-2 below. The Build Alternative will also result in creating 1,070 jobs during the design and construction period.

Table 5-2: Benefit Cost Analysis Results, Millions of 2018 Dollars. Source: Attachment 1: BCA

Economic Competitiveness: The scale of economic benefits from completion of the elevated intersection would be felt across the region, two states and internationally. The Port of Longview would directly benefit from the project as the vast majority of its truck traffic utilizes this intersection and experience delays due to the current conditions. The Port of Longview is Washington’s third-largest port and the first deep draft, full-service operating port on the Columbia River. Cargo imported and exported through the Port of Longview is the foundation of local economies across the state.

Longview is the highest export funnel for Washington’s timber exports, exporting 328,454 metric tons in 2019. Fertilizers bound for farms across Washington are imported through the Port of Longview and trucked on SR432 in support of the state’s agriculture industry, and last year the Port Image 5-2: Port of Longview looking south along the Columbia River. exported 4.5 million metric tons of American grown grain products to overseas markets (see Attachment 8: Tonnage Statistics). Steel manufacturing

14 facilities at the Port are vital to Washington’s “The IWOW project is critical to the community who heavily transportation infrastructure – producing material relies on the jobs and economic activity of the industrial for the Everett’s Boeing plant and major businesses located in the area.

infrastructure projects in the Puget Sound including This project is needed for our current operations and to meet our the 520 Bridge approaches, Elliot Bay Seawall, future growth potential”. Port of Longview CEO Norm Krehbiel

Portland Avenue/ Puyallup River Bridge, Tacoma Pier, and SR 99 waterfront project in Seattle.

However, financial margins on commodities are slim. Increases in transportation costs related to congestion could have devastating impacts on Washington’s timber and agriculture industries, which compete globally for market share.

The corridor is an economic lifeline providing access to the Port’s existing waterfront facilities and future development at the 285-acre Barlow Point property, located just 4 miles downriver from the existing Port, it is within Longview city limits and zoned manufacturing with direct connections to the Columbia River Channel and thus international export/import markets.

Reliable and efficient roadway and rail infrastructure in the corridor improves the economic opportunities for international bulk import/export business development at Barlow Point. It will also enable rail infrastructure to the site to be built more efficiently with no disruptions to roadway traffic. Barlow Point is a unique opportunity that estimates indicate could create 3,335 permanent jobs (See Attachment 3: Barlow Image 5-3: Barlow Point with Port of Longview property seen upstream. Point Concept Planning, Page 6).

Completing the IWOW project is an important component of the long-term economic vitality of Cowlitz County, necessary to maintain and grow critical access to commercial and industrial areas along the Columbia River which is and will continue to be a major regional employment center.

Reliability and Freight Mobility: The BCA projects total passenger and truck delay will increase by 226 percent under the No Build Alternative, from 0.6 million hours in 2020 to 2 million hours in 2040. The Build Alternative will limit total delay growth to 121 percent, or 1.3 million hours over the same period. Over the 30-year analysis period, the Build Alternative will result in 23.9 million hours of time savings (19.5 million hours and 4.4 million hours of time savings for passenger cars and trucks, respectively) or annual average time savings of 0.8 million hours due to delay reductions. The net present value (NPV) of travel time saving is estimated to be $76.7 million in 2018 dollars discounted at 7 percent. The elimination of at-grade rail crossings and excessive delays and long queues have crucial economic benefits for the region.

15 Due to induced demand resulting from increased speed and reduced delay, the Build Alternative will result in 37.9 million increase in vehicle miles traveled (VMT) (27.3 million and 10.5 million higher VMT for passenger cars and trucks, respectively). This represents an annual average increase of 0.91 million and 0.35 million VMT for passenger cars and trucks, respectively. This increased VMT will result in higher non-fuel-based vehicle operating costs for travelers with estimated NPV of $2.8 million in 2018 dollars discounted at 7 percent captured as disbenefits in this BCA.

The Build Alternative will also result in reduced fuel consumptions. Over the analysis period, the No-Build Alternative average speed declines from 24.9 miles per hour (MPH) to 19.0 MPH a 24 percent reduction, whereas the Build Alternative average speed declines 10 percent from 24.9 miles per hour (MPH) to 22.4 MPH. Fuel consumption reductions include 5.4 million gallons of gas for passenger cars and 3.6 million gallons of reduced diesel consumption for trucks. This represents an annual average fuel consumption reduction of 0.18 million gallons of gas and 0.12 million gallons of diesel for passenger cars and trucks, respectively. The NPV of fuel consumption reductions is estimated to be worth $5.4 million of savings for users in 2018 dollars discounted at 7 percent.

Safety and Resiliency: IWOW will improve safety and reduce crashes by eliminating at-grade rail crossings and converting the intersection to an elevated grade-separated intersection. The Build Alternative is expected to reduce total crashes by 233 incidents. The NPV of safety cost savings associated with reduction of crashes is estimated to be $7.0 million in 2018 dollars discounted at 7 percent.

With current congestion at the project intersection, the Longview Fire Department is achieving a 6-minute response 70 to 75 percent of the time to the industrial area south of Industrial Way, which is below the target response time of 6 minutes or less for 90 percent of the calls. Ambulances, fire trucks, and police can use signal preemption, lights and sirens, and counter-flow travel to move faster than non-emergency vehicles in congested conditions; however, all vehicles, including emergency vehicles, must stop while trains are passing through at-grade rail/roadway crossings. The Improvements in speed and reduced delay (queue delay and rail crossing delay) in the Build Alternative will result in enhanced emergency response access by allowing service providers to achieve the 6-minute response time target.

The Build Alternative has a useful life span that extends beyond the BCA operations period due to reconstruction of a major infrastructure asset. The residual value of the asset at the end of the analysis period is estimated to be $2.2 million in 2018 dollars discounted at 7 percent.

Environmental Sustainability and Quality of Life: Although the Build Alternative results in higher VMT for passenger cars and trucks, due to significant improvements in average speed, passenger cars and trucks will emit less pollutants compared to the No Build Alternative. The NPV of reduced emissions will result in savings of 0.04 million in 2018 dollars discounted at 7 percent.

16 Residents in the study area are vulnerable and diverse with concentrations of traditionally underserved populations, including individuals who are low-income, minority, disabled, elderly, youth, transit-dependent and/or those who have limited English proficiency. The neighborhoods in the project vicinity have a higher proportion of racial or ethnic minority and low-income individuals compared to the overall study area composition. Congestion from the No Build would result in longer travel times, higher commuting costs, and more delays to transit and public-school bus schedules. The congestion-related impacts would affect all study area residents who travel by vehicle as well as those who live outside the study area and travel through the IWOW intersection.

Bike, Pedestrian and Regional Transit: Pedestrian, bicycle, and transit improvements in the project area will connect residents to jobs, services, and other community resources. Project intersection roadways have limited, noncontiguous sidewalk facilities and no bike lanes. Pedestrian and bicycle use of the intersection is minimal, likely due to the limited sidewalks and bike lanes combined with the high volumes of truck traffic and industrial corridor environment. Non-motorized access is limited between neighborhoods north of Industrial Way to employment south of the roadway. Pedestrians and bicyclists use the Highlands Trail to travel west of Oregon Way.

RiverCities Transit and Columbia County Rider serve Longview and Rainier, Oregon. Bus routes operate along multiple streets within the project area, including routes through the Highlands and St. Helens Neighborhoods via Oregon Way (every 30 to 60 minutes) and from US 30 across the Lewis and Clark Bridge to SR433 and Oregon Way (three times per day). Bus routes are subject to the same delays and decreases in travel time reliability that are experienced by other vehicles traveling through the Industrial Way/Oregon Way intersection.

Under the No Build, bicyclists and pedestrians would continue to experience safety hazards and delay, while transit riders would experience reduced travel reliability. Project benefits would occur as a result of improved facilities and future traffic conditions, including improved pedestrian crossings and additional sidewalks, enhanced safety from more contiguous pedestrian and bicycle connectivity, and improved on-time bus performance. Improved pedestrian crossings and additional sidewalks would meet standards of the United States Access Board (2005) for compliance with ADA. Over the long-term, the Build Alternative would substantially benefit the community, including environmental justice populations, compared to the No Build Alternative.

5.2 Criterion #2: Leveraging of Federal Funding The IWOW project represents a unique partnership between the State of Washington, City of Longview, Cowlitz County, Port of Longview, Cowlitz Economic Development Corporation, City of Kelso and private industry such as forestry product company Weyerhaeuser and paper manufacture NORPAC.

With the understanding that the Department of Transportation has limited federal grant funds, the City’s proposal will leverage $85 million in non-federal funds to complete this critical infrastructure project. This represents a significant 86.4% non-federal investment from Washington State funded through WSDOT’s Connecting Washington program. Connecting Washington incorporates an 11.9 cent state gas tax increase passed by the Washington State

17 Legislature in 2015 to build transportation projects across the state. The program will fund $16.1 billion in new highways, maintenance and repair of infrastructure and investments in multimodal projects and programs. Understanding the importance of the IWOW project, the legislature was able to provide a significant down payment towards its completion.

However, without INFRA funding, the IWOW project will not be completed at the scale needed to meet the original purpose and need. IWOW’s DEIS explored two alternatives in addition to a No Build scenario. Ultimately, if the City does not receive an INFRA grant award, the project will need to be modified, which will eliminate the significant benefits created from the fully elevated grade-separated intersection configuration.

Considering severe congestion and Image 5-4: Looking east of Industrial Way (SR-432). overall infrastructure deficiencies in the Freight trucks back up across train tracks. study area, the project sponsors will have to choose a subpar outcome—referred to as a Partial Grade Separated Option B (PGSB) in the DEIS—which would significantly reduce the project’s benefits. The PGSB Alternative would construct a new grade-separated intersection southwest of the existing intersection with some movements elevated and other movements retained on the surface through a new roundabout. The City would need to move forward with PGSB despite the reduced benefit in order to at least address some of the existing challenges and to prepare for economic growth.

The City and has worked extensively with its private and public partners on transportation infrastructure investments but lacks the resources necessary to meet the remaining funding gap for this project. The City of Longview is located in a rural area with a city population of over 37,000 and county population of about 107,000 people, where there are minimal opportunities for additional public financing. The community frequently tops the list of having one of the highest unemployment rates in the State of Washington.

According to the Bureau of Labor Statistics, as of November 2019, the unemployment rate in Longview was 5.9% a full 2.4% above the 3.5% national unemployment rate. The City was founded as a planned community to support the timber industry in the early 20th Century. As the nature of that industry has changed in the proceeding decades the community has continuously worked to diversify its economy and the industrial area that is supported by the IWOW intersection has played a key role in the community thriving. Completing the IWOW project is intended to address as many of the current challenges as possible and support further growth for future generations.

18 5.3 Criterion #3: Potential for Innovation Broadband Deployment and Connectivity Conduit for broadband will be installed throughout the four legs of the project. The north-south leg will provide future interstate connections across the Lewis and Clark Bridge and into Oregon. While the east-west leg will extend broadband to industrial/commercial customers along the SR432 corridor including future customers at the City Mint Farm Industrial Park and the Port of Longview’s Barlow Point industrial property. Future tenants at these sites could vary from manufacturing to logistics and warehousing to energy generation and import/export terminals. Installation of broadband to the area will greatly broaden and deepen the pool of potential new tenants. Extending broadband through the project will connect the existing network to potential new customers in both Longview’s Mint Farm Industrial Park and in Cowlitz County’s Barlow Point site. This will broaden the current market from the traditional heavy and light industrial users to the high-tech users making both sites potential more valuable.

Innovative Technology The project will be incorporating a variety of innovative technology including: • Intersection detection monitored by WSDOT’s Traffic Management Center via camera/s that provide live observation and applications that can capture and report safety-related issues such as identifying and documenting near-miss incidents. • Variable Message Signs that assist with congestion and rerouting issues. • Utilizing data through cameras and data stations to track occupancy, speed and volume to generate flow map information and provide historical data to review. • Signal prioritization is through the use of wavetronic and pedestrian buttons. • Signage and design features that facilitate semi-autonomous vehicle technologies. • Controllers and Advanced Traffic Management Systems are upgradeable for compatibility.

Innovative Project Delivery Practices – Practical Design and Design/Build Practical Design: The IWOW projects has been developed as part of an innovation transportation solution that utilized Washington States cutting edge “Practical Design” approach to develop alternatives that would seek the most reasonable low-cost solutions to meet the project’s purpose and need. The Practical Design approach started from the ground and built up by seeking alternatives that provide solutions fitting the context of the area while adding the best value to the overall project. With Practical Design, decision-making focuses on maximum benefit to the system, rather than maximum benefit to the project. The goal is to allow more needs to be addressed system wide by meeting individual project performance objectives for the least cost. Technology and society are evolving and changing the needs and demands on the transportation system. Practical Design encourages efficient, effective, and sustainable transportation decisions that can achieve: Maximum results within limited funding; Tailored solutions for the project’s purpose and need; Phased solutions that address more critical and current needs; Design guidance that transitions from a rigid structure to a more flexible framework; and Freedom to innovate.

Design/Build: The project is also utilizing Design/Build, which will ensure streamlined project delivery, use of innovative solutions, engineering and construction processes that will save time

19 and funding. Use of Design/Built results in transfer of design risks to the contractor, mitigate constructability risks, introduce private sector expertise in preliminary phases and encourage innovation in design and construction due to higher degree of flexibility, and expedite overall project schedule. Considering the complexity of the IWOW project and involvement of at-grade rail crossings along with maintenance of traffic challenges, the use of Design/Build is anticipated to result in significant risk transfer and innovation. Additionally, the alternative technical concept method will be used to evaluate bidders.

Permitting Innovations: WSDOT will use the liaison program for the Corps of Engineers permitting and for Endangered Species Act (ESA) documentation. WSDOT will commit to having an archeologist on site while the contractor drills shafts for the bridges. It limits the pre-construction archeological explorations that could slow the start of construction and allows construction to start sooner.

Innovative Financing: Connecting Washington incorporates an 11.9 cent state gas tax increase passed by the Washington State Legislature in 2015 to build transportation projects across the state. The program will fund $16.1 billion in new highways, maintenance and repair of infrastructure and investments in multimodal projects and programs. Understanding the importance of the IWOW project, the legislature was able to provide a significant down payment towards its completion.

5.4 Criterion #4: Performance and Accountability The City of Longview has established its reputation as a safe, responsible, and effective investee through the successful completion of previous publicly funded infrastructure projects. Despite its rural location, the City has efficiently maximized investments to complete projects within budget and project schedule estimates.

The facility will be owned and operated by WSDOT. WSDOT Highway Maintenance oversees day- to-day needs of maintaining the state’s highway system in good working order. The system includes 20,679 highway miles, 3,000 bridges and 1,100 traffic signals. IWOW would be added to the maintenance and operations of this overall system. The funding comes from a dedicated source and is not in jeopardy of being diverted. The agency has an internal accountability process in place to annually report whether or not they are meeting their operations and maintenance targets.

Over the 30-year life-cycle of the asset, the Build Alternative is anticipated to reduce overall pavement maintenance costs and will require less preservation and replacement, and slightly higher structural maintenance due to the grade-separated intersection design. Based on the operations and maintenance (O&M) cost assumption detailed in the BCA memo (See Attachment 1: BCA, Sections 3.2 and 5.5), the Build Alternative on the O&M costs are estimated to be $3.6 million versus $2.1 million for the No-Build, resulting in $1.4 million in increase overall O&M costs over the lifecycle of the asset.

20 The project sponsors are committed to meeting the accountability measures described in the INFRA program Notice of Funding Availability. We agree to meet the specific construction start and completion dates detailed in this application. If the project sponsor does not meet these deadlines, we agree to forfeit or return of up to 10% of the awarded funds, or $10 million, whichever is lower. In addition, we are confident in IWOW’s anticipated impact on travel time savings, and that it will result in at least a 9.2 percent delay reduction at peak periods for passenger cars and trucks within 12 months after completion. If the project fails to produce this outcome in the time allotted, we agree to forfeit up to 10% of the awarded funds, or $10 million, whichever is lower. 6. Project Readiness A. Technical Feasibility Preliminary designs, probable construction methods, and cost estimates have been completed, confirming the project is technically feasible.

WSDOT, in partnership with Longview and neighboring jurisdictions, has devised an innovative and sustainable plan to design and construct the IWOW Intersection. The facility will be constructed, owned and operated by WSDOT. WSDOT Highway Maintenance oversees day-to-day needs of maintaining the state’s highway system in good working order. The system includes 20,679 highway miles, 3,000 bridges and 1,100 traffic signals. IWOW would be added to the maintenance and operations of this overall system.

B. Project Schedule The DEIS has been completed, and we anticipate preliminary design, permitting, and preparation of the final EIS completed by Q3 of 2021. By Q4 2021, the final EIS will be published and ROW acquisition of properties will commence. In Q4 2022, contracts will be finalized and the Design/Build contractor selected. Final design and construction will commence by Q1 of 2023 and be completed by Q4 of 2025. See figure 6-1.

Figure 6-1: Project Schedule

The project is included within the State Transportation Improvement Program (TIP) as well as the local Metropolitan Planning Organization, Cowlitz-Wahkiakum Council of Governments’ Regional

21 TIP (See Attachment 9: TIP). The project is in process of being added to the City of Longview’s TIP. Additionally, the Port has coordinated with Union Pacific Railroad and BNSF to ensure the project design enhances use of their existing rail line.

The City is confident in its ability to promptly deliver this project and quickly utilize federally obligated funds. Property acquisitions and right of way have been identified and there is low risk of project delay.

C. Required Approvals

C(1) Environmental Permits and Review Under the National Environmental Policy Act (NEPA) the joint lead agencies for the IWOW project are the Federal Highway Administration (FHWA), Washington State Department of Transportation (WSDOT), the City of Longview and Cowlitz County. The lead agencies also coordinate with the project’s Technical Advisory Committee and the Executive Committee, which provide technical direction, leadership, and decision-making for the project. The Technical Advisory Committee is comprised of senior technical staff representing the public agencies and local port most immediately affected by the project, including Cowlitz County, City of Longview, City of Kelso, Port of Longview, and WSDOT. FHWA and WSDOT will address concerns of the Cowlitz Indian Tribe and Chinook Tribe by following the process specified by Section 106 of the National Historic Preservation Act, the 2003 WSDOT Tribal Consultation Policy, and the 2008 WSDOT Model Comprehensive Tribal Consultation Process for NEPA.

The lead agencies oversee the environmental review process and coordinate input from other partners. The draft Environmental Impact Statement (DEIS) is complete and was released on March 2, 2018 for public comment that ended on April 16, 2018. The Final EIS is anticipated to be completed by Q3 of 2021 and published by Q4 2021. It will include all comments submitted during the comment period and responses from FHWA, WSDOT and Cowlitz County. Following issuance of the Final EIS, a record of decision will be issued by FHWA. Necessary federal permits are described in Table 6-1 below.

Permit Type Agency Status Clean Water Act, Section 404 Federal U.S. Army Corps A draft has been prepared and will be finalized of Engineers after the completion of the final EIS.

Endangered Species Act, Federal U.S. Fish and A draft has been prepared and will be finalized Section 7 Consultation Wildlife Service after the completion of the final EIS. and National Marine Fisheries Service National Historic Preservation Federal WSDOT, FHWA Field explorations for the Section 106 have been Act, Section 106 completed. A draft Section 106 document has been written which will be finalized after the completion of the final EIS. Table 6-1: Necessary Federal Permits

22 C(2) State and Local Approvals $85 million was awarded to the project as part of WSDOT’s Connecting Washington program. Additionally, the Port of Longview has coordinated with Union Pacific and BNSF Railroads to ensure the project design enhances use of their existing rail line. The DEIS has identified the list below of local and state permits will be required for construction. It’s expected these local permits will be received promptly without issue upon receiving the grant award. Required state and local approvals are described in Table 6-2 below.

Permit Type Agency Status

Clean Water Act, Section 401 State Washington State A draft has been prepared and will be finalized after Department of Ecology the completion of the final EIS.

National Pollutant Discharge State Washington State The NPDES permit will be written and applied for Elimination System (NPDES) Department of Ecology concurrent with completion of design and prior to construction stormwater start of construction phase. general permit Encroachment review and Local Consolidated Diking The encroachment permit will be written and permit Improvement District No. 1 applied for concurrent with the design phase. Table 6-2: State and Local Approvals

No further legislative approvals are needed for completion and federal funding requirements have been taken into consideration during planning portions of the project. State funding for this project has been approved by the Washington State Legislature and signed into law by the Governor.

C(3) Federal Transportation Requirements Affecting State and Local Planning The project is included within the State Transportation Improvement Program (TIP) and the MPO TIP (See Attachment 9: TIP).

D. Assessment of Project Risks and Mitigation Strategies The IWOW project has been strategically planned to limit significant issues with permitting, technical feasibility, funding, or any other risks that may create obstacles to timely delivery of the project. The rigorous and thoroughly detailed planning and environmental process has been under way since 2016 and coordinated between multiple federal, state and local compliance agencies and key stakeholders. The City of Longview and WSDOT has a proven record of responsible and timely project delivery. The only obstacle the City and WSDOT has identified to completing this project is acquiring the remaining $13,420,00 in funding that is requested from the INFRA program in this proposal. The City of Longview believes the IWOW project is both low-risk and timely and possesses broad support from the community. See Table 6-3: Risk Mitigation Table.

23 Risk Risk Description Risk Assessment Mitigation Approaches Value Environmental: Potential for There are some wetlands Low Longview will work closely with the consultant design increased permitting if adjacent to the construction team to avoid wetland impacts. project extends into corridor. environmentally sensitive areas. Cultural or Historic Possibility of Native American Low Longview will work with Washington State Historic Resources: Potential for artifacts. Preservation to ensure proper monitoring of increased permitting if construction site. project impacts cultural or historic resources. Agency Approvals: Potential Longview will coordinate with Low Longview will work closely with state and local officials for delay with complex WSDOT and Cowlitz County to deliver the project. The project is complex, but projects involving multiple on administration of the regional planning has been underway since 2015. agency jurisdictions. project. Infrastructure: Potential for Project involves new capacity Low Budget includes allowances for additional mitigation and increased costs if existing expansion on undeveloped utility work. infrastructure determined land. to be deficient. Complex or Untested Project does not include Low No mitigation necessary. Components: Potential for complex or untested delays and or project components. modifications if components require testing, unique manufacturing, and/or design. Right of Way (ROW) There are 41 parcels and 19 Low Discussions are underway with property owners to Acquisition: Unanticipated separate property owners acquire property and it’s anticipated the risk is low. potential for delay. that the project will need to acquire ROW from. Figure 6-3: Risk Mitigation Table 7. Large/Small Project Requirements The BCA demonstrates the Build Alternative is estimated to generate $88.4 million in discounted benefits using a 7 percent discount rate. The project’s capital cost with the same 7 percent discount rate are estimated to be $70.3 million. The BCR is 1.26 and the NPV of Build Alternative is estimated to be $18.1 million at 7 percent discount rate. These results are primarily driven by the sizeable impact of the value of travel time savings, safety savings due to crash reductions, reduced fuel consumption, and reduction in emissions costs. The Build Alternative will also result in creating over 1,000 jobs during the design and construction period.

The IWOW project qualifies as a rural project and a small project under INFRA guidelines. As referenced within section 5.1 of this document, completion of this project will help in reducing transportation costs, relieving freight and automobile congestion, creating jobs, facilitating the movements of imports and export and improving safety. In addition, the project will help create new economic development opportunities to stimulate growth in an economically challenged community with four designated Opportunity Zones. The project will generate new economic activity in a rural area along the Columbia River for the next three decades. As outlined in section

24 4 of this document, the project is cost-effective, and would use the requested $13,420,000 in INFRA funding to leverage $85,000,000 from the State of Washington. In addition, the project will capitalize on previous dredging investments in the Columbia River, and other investments made by state, federal, local and private interests (including the Port of Longview). 8. Conclusion

IWOW represents the economic future and vitality of a rural southwest Washington community. An investment from the federal government will enable the community to leverage $85 million in state funding to address long standing infrastructure challenges and build for the future in a federally designated Opportunity Zone. The project is an ideal candidate for an INFRA award, meeting all the program goals and merit criteria. It’s a great example of regional collaboration that reaches across political jurisdictions and the community has worked hard to bring this project to fruition. With the federal government’s investment, we’ll be able to move forward to reach the project’s full potential.

Thank you for your time and consideration of this application, the community is hopeful you will recognize the critical nature of this project.

Image 8: Logs awaiting international export at Weyerhaeuser facility.