Palouse Regional Freight Study: 2016

Jeremy Sage, PhD Funded by: Kenneth Casavant, PhD Palouse Regional Transportation [email protected] Planning Organization (PRTPO) 509.592.5852/509.432.1643

Palouse www.palousertpo.org Partners

March 2016

Disclaimer The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the Palouse RTPO or the Washington State Department of Transportation. This report does not constitute a standard, specification, or regulation.

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Table of Contents

Table of Contents ...... iii

Tables ...... v

Figures...... vi

Executive Summary ...... ix

Freight Shipper Inventory and Database ...... xi

Stakeholder Engagement ...... xiii

Case Studies: New Regional Transportation Assets ...... xiv

Specific Freight Movement Parameters and Needs in the Region ...... xv

Study Findings ...... xvi

Introduction ...... 1

Background ...... 1

Purpose ...... 3

Regional Freight Industries ...... 6

Overview ...... 6

Freight Generators and the Highway Network ...... 11

Inland Waterways ...... 34

Locks and Dams ...... 37

Ports and Barge Loading Facilities ...... 38

Lock Outages ...... 45

Air...... 48

Railways ...... 50

Characterizing Retail Distribution ...... 58

Retail Grocery Stores ...... 58 iii | P a g e

Characterizing the Wheat Supply Chain ...... 61

Farm Origins ...... 61

After the Farm ...... 63

Stakeholder Identified Constraints ...... 67

Clarkston ...... 67

Pullman...... 68

Colfax ...... 69

Palouse ...... 70

Port of Columbia ...... 70

Dayton and Waitsburg ...... 71

Whitman County ...... 71

Asotin, Garfield and Columbia Counties ...... 72

Case Studies ...... 74

McCoy Grain Terminal LLC...... 77

Columbia Pulp ...... 82

Washington State Freight Mobility Plan and the Region ...... 88

Findings: A Practical Design Approach ...... 93

Appendix ...... 96

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Tables Table 1. Total Establishments in Freight Dependent Industries ...... 7

Table 2. Total Establishments in Freight Dependent Industries ...... 9

Table 3. Region Farm Totals. 2012 Census of Agriculture ...... 10

Table 4. Pounds of Freight Enplaned to or from Regional Airports ...... 49

Table 5. Pounds of Freight Enplaned by Carrier Serving Pullman-Moscow and Lewiston-Nez Perce County Airports ...... 49

Table 6. Federal Railroad Administration (FRA) Speed Guidelines by Track Type ...... 51

Table 7. Estimated Infrastructure Investment Needs on Port of Columbia’s Railroad to Achieve 286,000 pound, Class 2 Suitability ...... 54

Table 8. System Capital Needs for Palouse RTPO Region PCC Lines ...... 55

Table 9. Farm Truck Trips to Support Wheat Harvest ...... 62

Table 10. Standard Modal Capacities ...... 66

Table 11. Modal Equivalencies...... 66

Table 12. Attributes Contributing to the Viability of Rural Based Agricultural Facilities ...... 76

Table 13. Attribute Importance to Grain Loading Facility ...... 81

Table 14. Dry Tons of Biomass Available within 25, 50, 75, and 90 mile Zones of the Columbia Pulp Facility ...... 85

Table 15. Attribute Importance to Wheat Straw Pulp Facility ...... 87

Table 16. Identified Freight Flow and Safety Improvement Projects ...... 95

Table A-1. Short Duration Count Events ...... 96

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Figures

Figure 1a: Total crop value, total value of agricultural production, and total value of agriculture, including government payments in the state of Washington ...... 2

Figure 1b: Value of production for individual production categories and government payments for the period 2001 to 2011 ...... 2

Figure 2: Annual Percentage of Wheat Shipped via Various Transportation Modes ...... 3

Figure 3. Total Establishments in Freight Dependent Industries ...... 8

Figure 4. Major Crop Production of the Region ...... 10

Figure 5. Freight Flows and Generating Firms Near Anatone, Asotin County ...... 12

Figure 6. Freight Flows and Generating Firms Near Asotin, Asotin County ...... 13

Figure 7. Freight Flows and Generating Firms Near Clarkston, Asotin County ...... 14

Figure 8. Freight Flows and Generating Firms Near Colfax, Whitman County...... 16

Figure 9. Freight Flows and Generating Firms Near Colton, Whitman County...... 17

Figure 10. Freight Flows and Generating Firms Near Dayton, Columbia County ...... 18

Figure 11. Freight Flows and Generating Firms Near Endicott, Whitman County ...... 19

Figure 12. Freight Flows and Generating Firms Near Farmington, Whitman County ...... 20

Figure 13. Freight Flows and Generating Firms Near Garfield, Whitman County ...... 21

Figure 14. Freight Flows and Generating Firms Near Lacrosse, Whitman, County ...... 22

Figure 15. Freight Flows and Generating Firms Near Lamont and St John, Whitman County ....23

Figure 16. Freight Flows and Generating Firms Near Oakesdale, Whitman County ...... 24

Figure 17. Freight Flows and Generating Firms Near Palouse, Whitman County ...... 25

Figure 18. Freight Flows and Generating Firms Near Pomeroy, Garfield County ...... 26

Figure 19. Freight Flows and Generating Firms Near Pullman, Whitman County ...... 28 vi | P a g e

Figure 20. Freight Flows and Generating Firms Near Rosalia and Malden, Whitman County ....30

Figure 21. Freight Flows and Generating Firms Near Tekoa, Whitman County ...... 31

Figure 22. Freight Flows and Generating Firms Near Thornton, Whitman County ...... 32

Figure 23. Freight Flows and Generating Firms Near Uniontown, Whitman County ...... 33

Figure 24. Metric Tons of GHG per Million Ton-Miles ...... 35

Figure 25. 2009 Comparison of Fuel Efficiency ...... 35

Figure 26. Ratio of Fatalities per Million Ton-Miles Versus Inland Towing 2001-2009 ...... 36

Figure 27. Loaded Barges through the Snake River Locks and Dams (1993-2014) ...... 37

Figure 28. 2014 Tonnage of Commodities Moved Through the Snake River Locks and Dams ...38

Figure 29. Snake River Ports and Barge Loading Facilities ...... 39

Figure 30. Truck Volumes near Port of Whitman’s Wilma Site, September 2014 ...... 40

Figure 31. Truck Volumes at Port of Whitman’s Almota Site, October 2014 ...... 41

Figure 32. Truck Volumes at Ferry Sites, October 2014 ...... 42

Figure 33. Annual Wheat Tonnage Originated at the Port of Lewiston ...... 43

Figure 34. Annual Containers Originated at the Port of Lewiston ...... 43

Figure 35. Historic Scheduled Lock Unavailability ...... 46

Figure 36. Short Line Railroads of Southeast Washington...... 53

Figure 37. Rail Loading Facility Capacities on the PCC System ...... 57

Figure 38. Retail Grocery Establishments ...... 59

Figure 39. Regional Production Area for Washington Wheat ...... 61

Figure 40. Wheat Harvest Truck Trips Generated (Whitman, Asotin, Garfield, Columbia Counties) 2014...... 63

Figure 41. Grain Storage Facility Relationship to Transportation Network ...... 64 vii | P a g e

Figure 42. Grain Storage Facility Catchment Areas ...... 65

Figure 43. McCoy Grain Terminal LLC ...... 79

Figure 44. Columbia Pulp and Existing SR 261 Traffic Volumes ...... 83

Figure 45. Columbia Pulp Estimated Catchment Area, within region ...... 85

Figure 46. Truck Freight Economic Corridors in the region ...... 91

Figure 47. Truck Freight Economic Corridors in Lewis Clark Valley MPO ...... 92

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Executive Summary

In the 21st century, the demand on transportation agencies to generate economic performance based rationales for investment decisions has continued to grow. This is evident from Federal programs like TIGER, and MAP-21. As this demand grows, states and their partners have continued to intensify their considerations of the impacts of freight movement to regional economic outcomes, and developed schema for its evaluation. In Washington, this has in part led to the Washington State Freight Mobility Plan1, in which WSDOT has identified three primary foci of its multi-modal freight network:

 Developing an urban goods movement system that supports jobs, the economy, and clean air for all; and provides goods delivery to residents and businesses.  Maintaining Washington’s competitive position as a global gateway to the nation with intermodal freight corridors serving trade and international and interstate commerce, and the state and national Export Initiatives.  Supporting rural economies’ farm-to-market, manufacturing, and resource industry sectors.

The above foci place an emphasis on the ability of the state’s MPOs and RTPOs to effectively demonstrate the influence of their freight networks on regional economic output. In southeast Washington State, the Palouse RTPO (Asotin, Columbia, Garfield, and Whitman counties) is situated to aid in the support of one of the state’s most productive rural economies – wheat and other dryland crop production. Its ability to support wheat production and other vital industries of the region largely depends on its ability to rationalize the impacts of efficient freight movements.

While truck count data is relatively easily obtained on any given segment, such counts do little on their own to facilitate a deeper understanding of why a given truck or set of trucks has used

1 WSDOT, Washington State Freight Mobility Plan. http://www.wsdot.wa.gov/NR/rdonlyres/FCCF96BA-8E25- 4326-8DD1-9428621382D3/0/FreightMobilityPlanExecSummary.pdf ix | P a g e

that given segment or where it has come from or is going. As such, simple traffic counts fall short in facilitating a thorough understanding of the processes by which operational and capital improvements may enhance the economic standing of an industry, or industries, and a region.

This report seeks to generate a current basis of information for the Palouse RTPO and its member jurisdictions, such that they may better grasp the opportunities and challenges faced in development of long-range freight management goals and strategies for a positive economic future of the region. Such an information basis permits the development of a stronger foundation of support for regional freight projects of strategic importance to the economies of the region. Specifically, this report achieves the following goals:

 Succinct characterization of the freight generating industries found within the RTPO’s four counties;  Characterizes freight need and future opportunities and constraints across modes of the region;  Describes the characteristics and needs for the major freight generators of the region, including: Bulk and containerized commodities, agricultural inputs, retail distribution, and technology based industries.  Identifies and engages regional stakeholders in a collaborative effort to identify solutions that enhance the positive attributes of the regional transportation system, while systematically inventorying and addressing those attributes which constrain movement and potential growth;  In addition to the material provided within this report, data on many key transportation assets has been provided to the Palouse RTPO for future use and detailed studies beyond the scope of this report.

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Freight Shipper Inventory and Database Freight related industries may be classified as those industries whose major operations are dependent upon the effective and efficient utilization of the freight system to collect and distribute their inputs and final products. Such industries may be aggregated into seven major categories:

 Agriculture and Forestry;  Utilities;  Manufacturing;  Construction;  Retail Trade;  Wholesale Trade;  Transportation and Warehousing.

Nearly one thousand firms can be identified as being freight dependent within the region.2 Dependency among these firms is highly varied, ranging from the smallest firms who frequently rely on LTL (less-than-truckload) services for inventory delivery, to large technology based firms with dedicated trailers for the shipment of their goods, to commodity producers seeking to move by the barge or train load (Figure ES-1).

2 Full database of all firms provided to the Palouse RTPO. xi | P a g e

Figure ES-1. Total Establishments in Freight Dependent Industries3

3 2012 Zip Code Business Patterns. http://www.census.gov/econ/cbp/ xii | P a g e

Stakeholder Engagement Frequently, valuable information may be gained in relation to the suitability of a transportation system directly from the users of the system and those actively engaged with it. To ascertain those stakeholders’ inputs on the condition of the transportation system of the region, a series of group based Regional Truck-Freight Mobility Meetings were held, in addition to multiple one- on-one interviews with key stakeholders unable to attend group sessions. The process sought to encourage stakeholder buy-in to, and ownership of, the process whose goal is to facilitate their improved regional mobility. The meetings and interviews sought to establish a means of collecting key operational characteristics of the industries. From these stakeholder inputs and collection of supporting information, key concerns and potential opportunities for improving the freight network in the region were identified (Table ES-1).

Table ES-1. Identified Freight Flow and Safety Improvement Projects Project Description "Blue Bridge" efficacy and interchange study Clarkston signal synchronization evaluation Detailed Pullman truck flow analysis (Terre View Dr, and Grand Ave/Paradise St Emphasis) US 195 and SR 26 intersection realignment US 195 and SR 272 intersection evaluation for safety and efficacy US 195 and South Main St Intersection traffic flow evaluation SR 272 Mill St to Hauser Heights roadway Improvement Project WIM Railroad Benefit Cost Analysis P&L Railroad Bridge replacement and rehabilitation P&L/WIM track rehabilitation Palouse intermodal connectivity assessment (accessibility of rail loading facility) Palouse Bridge Street assessment for large truck/farm implement capability Port of Columbia Railroad Benefit Cost Analysis US-12 (Emphasis in Dayton and Waitsburg) oversize/over-length load compatibility study Highway Bridge Replacement/Rehabilitation Program (with coordinated county prioritization) Seasonal road closure reduction program (increasing Inventory of all-weather roads) Almota grade (SR 194) structural and safety improvement

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Case Studies: New Regional Transportation Assets A major component of economic development in rural regions such as southeast Washington is an understanding of how the transportation assets of the region serve to attract or inhibit the growth of existing industry, or the locating of new industries in the region. Using the newly completed McCoy Grain Terminal LLC and the planned Columbia Pulp operations as case studies, key metrics of concern in evaluating the future of transportation in the region were explored. These cases serve as examples of the decision making process and economic impacts generated by investment in transportation system assets at both the private and public level. Both case studies were evaluated based upon the relevancy and importance of their physical and economic attributes (Table ES-2)

Table ES-2. Attributes Contributing to the Viability of Rural Based Agricultural Facilities

Proximity To: Operational Attributes Product Public Characteristics (Proxy for Access) (Asset Efficiency) Attributes  Need for Changing,  Public/Private  Class I Railroad Directing, and Dividing  Commodity Mix Partnership Cargo  Ratio of  Distribution Efficiencies  Short Line Rail with Transport Rate  Magnitude of Public and first/last mile Class I Connection to Value of Participation characteristics Product  Level of Working  Demand  Major Interstate or Relationship  Capacity Opportunities Freight Corridor Between State and and Prospects Private Agents

 Population Center  Degree of Automation  Labor Availability

and Training

 Tax and Zoning Initiatives  Deepwater and Inland  Time to Build Ports or Airport  Land use compatibility both in policy and available area  Major Production Points including

agriculture and energy clusters  Major Destination Markets

 Adequate Land/Space xiv | P a g e

Specific Freight Movement Parameters and Needs in the Region While a substantial number of identified freight dependent firms may be found within the retail trade industry, particularly in Pullman and Clarkston, each individual firm frequently does not generate significant freight volumes. Much of the region’s freight volume can be attributed to agricultural production, both on the side of inputs and outputs. As freight movement in the region is uniquely multi-modal, especially among agricultural production, the necessity to develop a complete picture of the movement characteristics is vital.

The interdependent nature of the region’s modes, particularly the roadways to both the rail and river systems, becomes evident as truck volumes are considered near intermodal facilities.4 On these vital roadways, trucks frequently make up considerable proportions of the traffic. These trucks are themselves frequently made up of significant proportions of double and triple (referred to as train) units. Due to the nature of relative modal transport costs, truck transport segments of large bulk commodities, like that of wheat, are frequently kept as short as practical. The efficiencies gained by effectively utilizing multiple modes necessarily rely on the continued quality of each mode. Key considerations relevant to the importance of maintaining the quality of all modes include:

 Roadway – Agricultural production of the region is highly dispersed, taking place across nearly the entire four county area. This dispersion, and the high seasonality of movements, place high demand on what would otherwise be considered low volume roadways. From the farm, country elevators are also widely dispersed to store and transfer products to other modes. Since elevators and their sometimes lightly built roads serve as the collector from many small producers, effective access into and out of these facilities is vital.  Railroad – The region is served by multiple short line railroads that function as the ‘first and last mile’ of connectivity for the region’s producers. Significant segments of the rail

4 All acquired traffic count data has been provided to the Palouse RTPO. Only a subset of the data is used within the report. xv | P a g e

infrastructure continue to suffer from deferred maintenance, thus limiting continued efficiency where unable to keep pace with evolving demands of shipment size and volume. Where lines have been well maintained (e.g. Great Northwest Railroad) multiple industries throughout the region are well served and connected to the global market.  Waterways – Like the railroads, the very productive Snake River lock and dam system possesses an aging infrastructure that must to be invested in for its continued effectiveness as a modal component of goods movement. Perhaps more than any other mode, the waterway network at any stage is impacted by the operation of other segments, such as dams. As such, when one component falters, the effects are felt throughout. This is true for both the physical operation of the river, as well as economic interaction between Ports.

Study Findings The current designations of Freight Economic Corridors for the state of Washington appear to undervalue the importance of the interconnected nature of the freight system of southeast Washington. The dispersed nature of agricultural production results in roadways that frequently do not meet volume standards for T-1 or T-2 roadways. However, as the third highest valued agricultural product in the state, the wheat industry’s critical facilities should generate more consideration for their importance as a freight economic corridor. These facilities are directly tied to the ability of the industry to fully utilize its multi-modal opportunities. With WSDOTs emphasis on the application of Practical Design methodologies, the projects previously listed in Table ES-1, may be evaluated for their potential to significantly improve the performance of the region’s freight system.

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Introduction

Background Commodity movement and transport of raw and final goods is a necessary cost and investment for nearly every physical product based industry and firm. The ability to efficiently transport goods not only serves to enhance the margins on which firms operate, but also serves to contribute to a growing and vibrant regional economy. Arguably, nowhere is this more prevalent than in Washington State, one of the most trade dependent states in the nation. Significant contributors to such trade dependence lie within the state’s agricultural sectors.

Agriculture in Washington generated a primary value of production of $7.9 billion in 2010; an increase of more than $2 billion since 2001 (Figure 1a). Further, the value of production is largely dominated by three groups of products, (1) field crops – principally wheat, potatoes, and corn, (2) fruit and nut crops – predominantly apples, cherries, pears, and grapes, and (3) livestock and livestock products – mostly milk, milk powder, and cheese (Figure 1b).5 While much of the agricultural production is consumed within the U.S., exports of some products provide highly profitable markets for producers in the state. This is particularly true for wheat, where more than 85 percent of the crop is typically exported. In addition to the export of raw commodities, the state is home to an export heavy food processing industry that undertakes primary or secondary6 processing of some of the crops. Most significant of the products above to southeast Washington is the production and transportation of wheat, as well as peas, lentils, and garbanzo beans.

5 Information originally presented in: Tozer, P.R., J.L. Sage, and T.L. Marsh. (2013) Trends in Agricultural Production, Exports, and Transportation in Washington State. 6 Primary processing involves very little processing, such as in the freezing of peas or corn, secondary processing may involve cooking, preserving, or further preparation of product. 1 | P a g e

Figure 1a: Total crop value, total value of agricultural production, and total value of agriculture, including government payments in the state of Washington Figure 1b: Value of production for individual production categories and government payments for the period 2001 to 20117

(a) (b)

Total Crop Value, Total Value of Production and Total Value of Value of Production for Individual Production Categories Agriculture in the State of Washington 3,000 9,000 2,500 8,000

7,000 2,000

6,000 1,500 5,000

4,000 1,000

Value ($,000,000) Value 3,000 Value of Production ($,000,000) of Production Value 500 2,000 0 1,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Field Crops Fruits and Nuts Commercial Vegetables Year Berry Crops Specialty Products Livestock and Products Total Crops Total Value of Production Total Value Govt Payments

Southeast Washington not only provides the quality soil and climatic conditions necessary for productive dryland farming operations, but it is also gifted with a unique transportation setting with an established multi-modal freight system. The wheat industry in southeast Washington, and neighboring regions, provide a perfect venue for which the value of and need for a multimodal system may be exemplified. Dependent upon farm or storage location, wheat transport utilizes truck, barge, and rail systems in varying intermodal degrees on its way to an ultimate export destination overseas.

With approximately 85 percent of Washington’s wheat heading for export, the movement of wheat from the fields to its final destination necessarily exemplifies the indispensable interconnectedness of road, water, and rail. Recent surveys by the Freight Policy Transportation Institute (FPTI) at Washington State University (WSU)8 indicate strong geographic based correlation within the wheat supply chain. As shown in Figure 2 below, typical modal usage

7 http://www.nass.usda.gov/Statistics_by_State/Washington/Publications/Annual_Statistical_Bulletin/index.asp 8 See FPTI Reports 1, 2, 9, 10, 12: http://www.fpti.wsu.edu/reports.htm 2 | P a g e

highly depends on origination region. Southeast Washington can be seen to be the most reliant region on barge movements. However, wheat does not grow on the river banks. In order for growers and shippers to take advantage of the efficiencies found with barge movement, they must be able to efficiently arrive at the river.

Figure 2: Annual Percentage of Wheat Shipped via Various Transportation Modes9

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Eastern Northern Southern Northern Southern Oregon Idaho Idaho Washington Washington Truck Only 1.0% 0.3% 33.3% 14.0% 0.9% Truck-Barge 91.8% 78.9% 21.7% 14.6% 97.5% Rail 7.2% 20.8% 45.0% 71.4% 1.6%

By and large, arrival at the river is achieved via truck transport on the region’s highway network. This reality of the multimodal network within southeast Washington necessitates a systems approach to a supply chain based economic corridor assessment. Such a systems based understanding is the foundation of the following report.

Purpose While truck count data is relatively easily obtained on any given segment, such counts do little on their own to facilitate a deeper understanding of why a given truck or set of trucks has used

9 http://ses.wsu.edu/wp-content/uploads/2015/07/FPTI-12.pdf 3 | P a g e

that given segment or where it has come from or is going. As such, simple traffic counts fall short in facilitating a thorough understanding of the processes by which operational and capital improvements may enhance the economic standing of an industry, or industries, and a region. Further, many roadways, with the exception of US-195 and a portion of SR-26, within the region do not accumulate sufficient commercial vehicle volume to raise the level of attention paid on a state basis in comparison to other heavily used freight routes. Such attention is generally warranted for roadways achieving at least a T-2 status.10

This report seeks to generate a current basis of information for the Palouse Regional Transportation Planning Organization (Palouse RTPO) and its member Freight and Goods Transportation jurisdictions, such that they may better grasp System (FGTS): Roadway Classification the opportunities and challenges faced in development of long-range freight T-1 = More than 10 Million Tons per Year management goals and strategies for a T-2 = 4-10 Million Tons per Year positive economic future of the region. Such T-3 = 0.3-4 Million Tons per Year an information basis permits the T-4 = 100,000 – 300,000 Tons per Year development of a stronger data driven T-5 = at least 20,000 tons in 60 days and foundation of support for regional freight Less than 100,000 Tons per Year projects of strategic importance to the economies of the region. Specifically, this report achieves the following goals:

 Succinct characterization of the freight generating industries found within the RTPO’s four counties;  Characterizes freight need and future opportunities and constraints across modes in the region;

10 http://www.wsdot.wa.gov/NR/rdonlyres/3ECFC2D0-8A56-4D86-B4CB- 2006B0792D43/0/2013FGTSReportWEB.pdf 4 | P a g e

 Describes the characteristics and needs for the major freight generators in the region, including: bulk and containerized commodities, agricultural inputs, retail distribution, and technology based industries.  Identifies and engages regional stakeholders in a collaborative effort to identify solutions that enhance the positive attributes of the regional transportation system, while systematically inventorying and addressing those attributes which constrain movement and potential growth;  In addition to the material provided within this report, data on many key transportation assets has been provided to the Palouse RTPO for future use and detailed studies beyond the scope of this report.

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Regional Freight Industries

The following sections first provide a broad overview of the freight generating industries of the region in Washington State, the region served by the Palouse RTPO followed by a more detailed discussion of their interaction with each major mode utilized in its movement.

Overview Freight related industries may be classified as those industries whose major operations are dependent upon the effective and efficient utilization of the freight system to collect and distribute their inputs and final products. Such industries may be aggregated into seven major categories:

 Agriculture and Forestry;  Utilities;  Manufacturing;  Construction;  Retail Trade;  Wholesale Trade;  Transportation and Warehousing.

The above industry groups frequently contribute the majority of truck traffic trips generated within a region. These trips typically fall into either originations or terminations within a region, or pass through. Historically, agriculture constitutes major proportions of flows in the four counties. For example, in Whitman County, agriculture has been recorded as high as 49 percent of truck volume in the fall on US 19511. Major roadways in other counties are often similarly dominated by single, or few industry types. The prevalence of these industries within the region is characterized below. Table 1 highlights that construction, retail trade, and wholesale trade lead the region in number of establishments as recorded in the 2013 county business patterns database. This is the case for each of the four counties, with manufacturing also being of

11 Freight Policy Transportation Institute, 1998. Truck Origin Destination Study (by County). http://ses.wsu.edu/ewits/counties/ 6 | P a g e

significant prevalence in Asotin and Whitman counties. To provide further detail, Figure 3 and Table 2 each break down the business establishments by zip code.12 Evident from this finer breakout is the preponderance of businesses concentrated in Pullman and Clarkston. The two cities possess 50 percent of all freight related businesses.

What Table 1, along with Table 2 and Figure 3, do not provide is any indication of the number of farms and thus potential for farm generated truck trips in the region. To obtain that information, Table 3 shows the number of farms and their average size for the four counties. Given the typical type of farming (dryland) taking place on the Palouse, these farms are larger, on average, compared to those throughout much of the state. Additionally, as is evident from Table 3 and Figure 4, agriculture consumes many acres within each county’s land base, over a million acres in Whitman County alone. This broad land base necessarily means that production, and thus trucks trips, is generated over a large area, necessitating critical roadway usage on many typically low volume roadways.

Table 1. Total Establishments in Freight Dependent Industries13,14 Total Establishments Industry Asotin Garfield Columbia Whitman Total Agriculture and Forestry 3 1 3 7 14 Mining, Quarrying 0 0 1 1 2 Utilities 1 1 4 5 11 Manufacturing 24 0 8 23 55 Construction 62 2 10 69 143 Retail Trade 49 10 19 92 170 Wholesale Trade 15 9 17 62 103 Transportation and Warehousing 19 2 4 28 53

12 Table 1 and 2 discrepancies are due to a one year difference in reporting period (due to availability). Additionally, Zip Code boundaries do not align perfectly with that of county boundaries. 13 US Census Bureau, County Business Patterns, 2013. http://www.census.gov/econ/cbp/ . 2013 Data is the most recent available (released April 2015). 14 Note: Recorded values based solely on primary recorded industry type with the US Census. Omissions or faulty categorizations are possible. 7 | P a g e

Figure 3. Total Establishments in Freight Dependent Industries15

15 2012 Zip Code Business Patterns. http://www.census.gov/econ/cbp/ 8 | P a g e

Table 2. Total Establishments in Freight Dependent Industries16

Freight Number of Agriculture Mining, Constr- Manufac- Wholesale Retail Transportation & Zip Name Dependent Utilities Businesses & Forestry Quarrying uction turing Trade Trade Warehousing Businesses Anatone 3 2 0 0 0 2 0 0 0 0 Asotin 32 13 0 0 0 9 1 0 1 2 Clarkston 397 155 3 0 1 53 20 13 50 15 Colfax 154 63 2 0 2 20 2 9 22 6 Colton 12 7 0 0 0 2 0 3 2 0 Dayton 116 52 2 1 2 11 4 12 20 0 Endicott 6 4 0 0 0 0 0 2 2 0 Farmington 5 4 0 0 0 0 0 1 2 1 Garfield 16 11 0 0 0 3 4 4 0 0 Lacrosse 21 10 0 0 1 0 0 2 4 3 Lamont 1 1 0 0 0 0 0 1 0 0 Malden 1 1 0 0 0 0 0 0 0 1 Oakesdale 8 6 0 0 0 1 0 2 3 0 Palouse 24 15 3 0 0 6 1 1 3 1 Pomeroy 51 28 1 0 1 3 0 10 10 3 Prescott 12 6 0 0 0 1 2 1 2 0 Pullman 472 133 0 0 1 41 13 12 54 12 WSU 5 1 0 0 0 0 0 1 0 0 Rosalia 24 11 0 0 0 3 2 3 1 2 Saint John 34 18 2 0 1 3 0 10 2 0 Tekoa 29 13 1 0 1 0 0 8 3 0 Thornton 4 3 0 0 0 1 0 1 0 1 Uniontown 8 3 0 0 0 0 2 1 0 0 Waitsburg 25 11 1 0 0 3 2 1 3 1 Total* 1460 571 15 1 10 162 53 98 184 48

16 2012 Zip Code Business Patterns. http://www.census.gov/econ/cbp/ 9 | P a g e

Table 3. Region Farm Totals. 2012 Census of Agriculture17 Number of Farms Average Farm Size (ac) Land in Farms (ac) Asotin 185 1,423 263,166 Columbia 308 966 297,412 Garfield 211 1,462 308,486 Whitman 1,195 1,067 1,275,110

Figure 4. Major Crop Production of the Region18

17 http://www.agcensus.usda.gov/Publications/2012/Full_Report/Volume_1,_Chapter_2_County_Level/ 18 http://agr.wa.gov/PestFert/natresources/AgLandUse.aspx 10 | P a g e

Freight Generators and the Highway Network The information presented above in Tables 2 and 3, along with Figure 3 may be disaggregated to provide a closer inspection of the industries present within each of the communities of the region. The following set of figures displays firm locations, categorized by 2-Digit SIC codes, as organized by zip code areas. The industries displayed comprise those previously identified as freight dependent. Where very few industries are present in a zip code, the figures below provide more detail as to the specific industry types present; 6-Digit SIC.19

Review of the following figures will quickly reveal a disparity between the identified number of farms within each map, and the reported number of total farms found within the region (Table 3). This disparity reinforces the necessity to examine agricultural production and freight generation from a land use perspective as opposed to the firm level seen here. Within the following series of figures, short duration traffic counts (See Appendix for dates and specific location of all short duration counts included) are displayed along with the percent of the traffic counts that are identified as trucks. Further, the proportion of those trucks identifiable as singles, doubles or trains20 is displayed in the associated pie charts. Each chart is located on the side of the road in which that traffic flows (i.e. northbound traffic is represented on the right hand side, and southbound on the left). In sum, the figures and graphs contain multidimensional data, so the reader is cautioned to be careful in interpretation.

Truck Classifications and Definitions Single Units – A single vehicle including dump trucks, mixers, regardless of the number of axles. Double Units – A two-unit vehicle, normally a truck and trailer, generally from 4- axle to 6-axle. This category basically includes any truck up to 80,000 pounds. Trains (Triples) – Normally a tractor and two trailers. Almost any truck rated from 80,000 pounds to 105,000 pounds.

19 Data for all Figures 10-23 are generated from InfoUSA datasets. Based on firms recorded in August of 2015. 20 WSDOT standard definitions. http://www.wsdot.wa.gov/NR/rdonlyres/344CB5F2-AD88-4A9C-A4D8- E8C2982B00C2/0/InstructionsforFGTSTruckTonnageEstimation.pdf 11 | P a g e

Figure 5. Freight Flows and Generating Firms Near Anatone, Asotin County

Four firms are located within the Anatone zip code that can be classified within the freight dependent firm categories. Figure 5 highlights the truck volume recorded during a short duration traffic count in May of 2014 on SR 129. The largest volume of trucks recorded during the counting period was observed southbound north of Anatone, as depicted by the pie chart size.

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Figure 6. Freight Flows and Generating Firms Near Asotin, Asotin County

Few firms (13) are found throughout the Asotin zip code. While all are classified within what is considered to be freight dependent industries, few can be considered to be large freight generators. Tightening in on the second pane of Figure 6, it can be observed that as traffic begins to flow southward on SR 129 that the proportion of traffic attributable to trucks increases slightly, though total volume of traffic decreases significantly.

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Figure 7. Freight Flows and Generating Firms Near Clarkston, Asotin County21

21 Note: Only firms found within the titled zip code are shown. Neighboring firms in other zip codes are depicted in their own figures. 14 | P a g e

Figure 7. Continued.

The large majority of freight dependent firms within the Clarkston zip code may be found, as should be expected, with the city proper of Clarkston. Specifically, most are located along the downtown corridors of US-12 and SR-129, with numerous additional firms spreading northward towards the Port of Clarkston. Firms based in Retail Trade (89) and Construction (47) dominate the firm numbers. Many of the retail firms may be classified as freight dependent as they routinely require the delivery of store products - often via LTL trucks.

From pane 1 of Figure 7, short duration counts demonstrate higher volumes of truck traffic and higher proportions of trucks (19 percent) on US 12 west of Clarkston, than moving south. These observations reinforce inputs from city and county officials. Additionally, panes 2 and 3 depict high truck proportions crossing the Snake River on the SR 128 bridge. Utilizing permanent WSDOT counters, pane 3 shows the highest volume of vehicles is routinely observed on the east side of the city in relation to the “blue bridge” that connects Clarkston with downtown Lewiston. Moving westward, the total volume decreases, but the proportion of trucks on the roadway increases.

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Figure 8. Freight Flows and Generating Firms Near Colfax, Whitman County

Retail Trade based firms (18) are highly concentrated along the main corridor through downtown Colfax (US-195), as visible in the lower pane of Figure 8. The upper pane displays a high presence of agriculturally based firms spread through the span of the zip code. As shown in both panes of Figure 8, the major highways surrounding Colfax recorded both significant truck

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volumes and significant portions of traffic attributable to trucks during the recording period. Recordings for SR 26 and US 195 north of Colfax in the second pane were recorded in late August of 2013, a time typically observed to experience high truck volume from wheat harvest. All other recordings were taken outside of harvest time.

Figure 9. Freight Flows and Generating Firms Near Colton, Whitman County

Firms found within the Colton zip code area are dominated by farms (8) as can be viewed above in Figure 9. Similar to the other firm locations, the points indicated for the farms provide information on the physical location of the address listed for the business. However, for farms, this only provides the mailing address and does not reveal the extent of the farm. The northern most short duration traffic counts were conducted in spring of 2014, while those in Colton were taken in spring of 2011. Proportion and volume are relatively stable between the two counts.

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Figure 10. Freight Flows and Generating Firms Near Dayton, Columbia County

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The Dayton zip code area firms are largely localized to the US 12 corridor through the town of Dayton and are significantly comprised of Retail Trade store fronts (29). Agricultural (12) and Construction firms (12) are also found in high number and can be seen to spread beyond the downtown corridor (Figure 10). Short counts conducted in the spring of 2012 estimate roughly a quarter of traffic into and out of either end of Dayton on US 12 is truck traffic. Recorded truck volumes are range from 336-460 trucks; mostly singles.

Figure 11. Freight Flows and Generating Firms Near Endicott, Whitman County

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Nearly half of all Endicott freight dependent firms, 21 in total, are attributable to the Agriculture, and Forestry Identifier (9). These firms are located both within the town and throughout the zip code area (Figure 11). Refer ahead to Figure 14 (Lacrosse) for truck volumes found south of Endicott on SR 26.

Figure 12. Freight Flows and Generating Firms Near Farmington, Whitman County

With a limited number of firms located in the Farmington area, the firms can be identified to a finer level. Figure 12 displays that with the exception of a post office and apparel store, the remaining six firms are agriculture based.

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Figure 13. Freight Flows and Generating Firms Near Garfield, Whitman County

The Garfield area is comprised largely of agricultural based firms (7) and a significant number of Wholesale Trade based firms (5). While three of the five Wholesale firms are located within Garfield, the remaining are spread out through the area, as are all of the agricultural firms (Figure 13).

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Figure 14. Freight Flows and Generating Firms Near Lacrosse, Whitman County

Firms found within the Lacrosse area are nearly entirely devoted to agriculture in some form (Figure 14). Half (11) are identified as farms, and up to seven more may be considered to be based in the movement of agricultural goods. Though SR 26 east of its intersection with SR 127 has the highest recorded volume of trucks during this October 2014 short count, both SR 127

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north and southbound experience higher truck proportions of roughly 40 percent, or approximately 180 in total for each direction.

Figure 15. Freight Flows and Generating Firms Near Lamont & St John, Whitman County

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Possessing only nine identifiable firms, Lamont is combined in Figure 15 with St. John. Lamont’s firms are comprised mostly of farms (6), in addition to a wholesaler and three transportation firms. Similarly, the St John area is found to be mostly agriculturally defined firms (19) in addition to a set of 10 Retail Trade businesses found in the downtown region, mostly along SR-23.

Figure 16. Freight Flows and Generating Firms Near Oakesdale, Whitman County

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Similar to the other smaller communities throughout the region, Oakesdale shows a limited number of freight dependent firms (Figure 16). Those that are present are agriculturally dependent; 8 of 12 have direct agricultural purposes.

Figure 17. Freight Flows and Generating Firms Near Palouse, Whitman County

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The Palouse zip code area possesses both a widespread set of firms, largely agriculture (first pane of Figure 17), as well as a subset of additional retail, construction and transportation related firms within the town itself.

Figure 18. Freight Flows and Generating Firms Near Pomeroy, Garfield County

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Significant portions of the Pomeroy region extend southward towards the Oregon border (Figure 18); however, the primary business activity is centered about the US 12 corridor passing east- west through town. Agricultural and Transportation based firms may also be found spreading north and south for about 10 miles. Both panes in Figure 18 reflect high proportions of traffic volumes attributable to trucks, especially doubles. The high proportions are particularly evident in pane 1 in which truck proportions reach 40 percent northbound on SR 127.

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Figure 19. Freight Flows and Generating Firms Near Pullman, Whitman County

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As one of the more populated cities of the region, Pullman hosts a decidedly more abundant set of freight dependent industries not seen in most other communities throughout the region. One of the more notable differences observable in the first pane of Figure 19 is the increased abundance of manufacturing firms within Pullman. While Agriculture is still a substantial component of the diverse industry set, it is not as pervasive as in smaller communities. Given that cities like Pullman and Clarkston operate on a higher population field than do the other communities these observations should be expected, as these two provide the services to the broader community. The first pane of Figure 19 shows the prominence of US 195 for regional truck movement, and thus its T-2 classification. Roughly have of the approximately 500 trips per day in each direction are classified as doubles.

Narrowing in tighter to the city of Pullman, and using WSDOT’s bidirectional counters, it becomes apparent that while doubles account for high proportions on US 195, singles are far more prevalent downtown. As should be expected, the downtown core on Grand Avenue experiences the highest overall volume of vehicles and maintains an approximately 10 percent single unit truck proportion. In 2015, the City of Pullman also conducted short duration counts in seven locations throughout Pullman. For each location, they additionally estimated annual tonnage. NE Terre View Drive experienced the highest volume of trucks during this period (May 2015). The 588 recorded daily trucks produced annual tonnage estimates of 4.3 million tons. The trucks were approximately 50 percent singles and 25 percent each for doubles and trains.

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Figure 20. Freight Flows and Generating Firms Near Rosalia & Malden, Whitman County

With only a pair of its own identifiable firms considered freight dependent, Malden is combined here with Rosalia (Figure 20). Combined, Rosalia and Malden host 18 identified freight dependent firms, of which agricultural firms comprise nearly half. Characteristic of US 195, truck volumes are significant proportions of flows bypassing Rosalia.

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Figure 21. Freight Flows and Generating Firms Near Tekoa, Whitman County

In line with the other small communities, Tekoa remains agriculturally dependent. One third of the firms identified (Figure 21), are classified as wholesale trade firms. The firms are largely comprised of fuels, chemicals, grain, and machinery dealers. As such, they are tightly aligned with the agriculture industry.

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Figure 22. Freight Flows and Generating Firms Near Thornton, Whitman County.

Thornton, with eight identifiable firms in freight dependent industries, lies along the major north- south corridor of the region; US 195. Similar to other small communities, Thornton’s firms are centered about agricultural production.

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Figure 23. Freight Flows and Generating Firms Near Uniontown, Whitman County.

The final community within the region is Uniontown. Uniontown falls squarely between Pullman and the Lewiston-Clarkston Valley, and thus witnesses significant traffic between the two. Again, agriculturally related firms dominate the industrial presence in and near the town.

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Inland Waterways The Columbia-Snake River system is the most utilized river system for freight movement on the west coast, extending more than 400 river miles inland to Lewiston, Idaho. Barge traffic along the system delivers grain and other bulk products from the Inland Northwest and beyond to lower Columbia River ports. Roughly 60 percent of Washington wheat exports ultimately travel by barge from ports along the Columbia-Snake River system to the greater Portland region. About 36 percent is transported by rail to coastal grain terminals. This multimodal luxury allows regional producers to escape the “captive shipper” to the railroads experience felt by many other regions’ producers.22

Not only does the river system increase the competitive nature of freight transport in the Pacific Northwest, but it does so with a low emission footprint and high safety performance relative to other modes. Given the transportation sector accounts for a significant proportion of emissions in the region and nation, the continued effective utilization of low emission modes aids in Governor Inslee’s effort to reduce emissions statewide.23 Recent comparisons produced by the Texas Transportation Institute (TTI) in collaboration with the Center for Ports and Waterways estimated that inland towing generated 16.4 metric tons of Greenhouse Gases (GHG) per million ton-miles in 2009, while railroads and truck freight generated 21.1 and 171.8 respectively (Figure 24). Relatedly, fuel efficiency of the three modes nationally in 2009 witnessed inland towing at 616 ton-miles per fuel gallon, while railroads achieved 478, and truck freight, 150 ton- miles per gallon (Figure 25).24

22 Washington Wheat Facts, 2014-15. http://wagrains.org/wp-content/uploads/2015/05/2014_15WFWeb.pdf 23 Carbon Emissions Reduction Taskforce: Report to the Washington State Governor’s Office. http://www.governor.wa.gov/sites/default/files/documents/CERT_Final_Report.pdf, November 2014. 24 Texas Transportation Institute 2012. http://www.nationalwaterwaysfoundation.org/study/FinalReportTTI.pdf 34 | P a g e

Figure 24. Metric Tons of GHG per Million Ton-Miles.

180 160 140 120 100 171.83 80 60 40 20 16.4 21.13 0 Inland Towing Railroads Truck Freight

Figure reproduced from A Modal Comparison of Domestic Freight Transportation Effects on the General Public: 2001-2009. TTI, 2012.

Figure 25. 2009 Comparison of Fuel Efficiency.

700

600

500

400 616 300 478 200

100 150

0 Inland Towing Railroads Truck Freight

Figure reproduced from A Modal Comparison of Domestic Freight Transportation Effects on the General Public: 2001-2009. TTI, 2012.

In addition to the readily apparent modal differences in fuel efficiency and emissions, significant differences can be seen in safety performance between the modes. Truck freight is necessarily intermixed with passenger vehicles throughout their transit, thus providing increased opportunity 35 | P a g e

for accidents and fatalities. Comparing the three modes again, Figure 26 demonstrates, nationally, the almost non-existent fatality rate for inland towing. Inland towing averaged eight fatalities a year between 2001 and 2009, while railroads and truck freight averaged 862 and 4,782 respectively. During this period, railroads and truck freight moved roughly 6 and 4.5 times the ton-miles as did waterways, reflective of their broader reach across the country.

Figure 26. Ratio of Fatalities per Million Ton-Miles Versus Inland Towing 2001-2009

140.0

120.0

100.0

80.0 132.0

60.0

40.0

20.0 18.1 1.0 0.0 Inland Towing Railroads Truck Freight

Figure reproduced from A Modal Comparison of Domestic Freight Transportation Effects on the General Public: 2001-2009. TTI, 2012.

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Locks and Dams Columbia/Snake River Transportation System Between 1999 and 2014, river tonnage has produced an annual average of just over 10.2 million tons. Over this period, farm products comprised about 83 percent, or 136 million of the total 164 million tons, of commodities transported. Total commercial activity through the Snake River’s four Lock and Dam facilities (Lower Granite, Little Goose, Lower Monumental, and Ice Harbor) consisted of 1,013 loaded barges, 910 empty barges in 2014; down from the respective 1,425 and 1,172 averages since 1993 (Figure 27). Total vessels traversing these four locks over the last five years has just exceeded an average of 4,300.25

Figure 27. Loaded Barges Through the Snake River Locks and Dams (1993-2014)

2500

2000

1500 Lower Granite Little Goose 1000 Lower Monumental Ice Harbor 500

0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

While wheat and other food and farm products dominates movement along the river, it is not the only commodity moving through its locks and dams; either upriver or down. Other commodities

25 US Army Corps of Engineers, Navigation Data Center, http://www.navigationdatacenter.us/lpms/lpms.htm 37 | P a g e

include chemicals (generally agricultural inputs), crude materials, manufactured goods, and machinery (Figure 28). In previous years (pre-2011) petroleum and petroleum products also recorded movement through the locks. 26 Within the crude materials commodity group are forest products and pulp. Similarly, within the primary manufactured goods group are paper and allied products. The USACE does not disaggregate the movements further.

Figure 28. 2014 Tonnage of Commodities Moved Through the Snake River Locks and Dams

Ports and Barge Loading Facilities Within the region, multiple ports and loading facilities can be found along the Snake River from which barges and other vessels may be loaded for transit. The Lewiston and Clarkston area is home to several of these, including the Ports of Lewiston, Clarkston, and the Port of Whitman’s Wilma site. Downstream, additional facilities may be found at Central Ferry locations in both Whitman and Garfield counties, along with an additional Port of Whitman site at Almota (Figure 29).

26 Ibid. 38 | P a g e

Figure 29. Snake River Ports and Barge Loading Facilities

Whitman County’s three water ports (Wilma, Almota, and Central Ferry) each contain grain storage and barge loading facilities. Wilma possesses a 4.6 million bushel capacity for grain and dry peas. This site is home to not only grain shipment and storage (Columbia Grain), but also peas and lentils (Hinrichs Trading Company), along with agricultural input firms (The McGregor Company and CHS Primeland) (See rail discussion for more on agricultural input firms at Wilma), and two wood products based firms (Bennett Lumber and Clearwater Fiber). Access to the Great Northwest Railroad additionally increases the attractiveness of the Wilma site. The recent addition of CHS Primeland, a fertilizer company, effectively fills the land available at Wilma and will increase the reported truck volumes experienced. Bennett Lumber restarted operations on the site in the spring of 2014, also increasing truck volume at the site.

In their 2010-2015 Comprehensive Plan, the port estimates a daily average of 100 trucks per day into its facility and peak flows of up to 300 per day, seasonally. More recent short counts conducted on SR 193, and SR 128 lend support to these higher estimates, and may yet be an understatement of the total truck count as all the firms at the site get to full speed. Counts

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conducted in September of 2014 identify 44 percent of traffic west of the SR 128 bridge is truck traffic, with total truck volumes of 360-370 in both directions (Figure 30).

One of the wood products based firms located at the Port of Wilma is Clearwater Fiber. Clearwater Fiber operates in tight coordination with neighboring Clearwater Paper. Seven to nine trucks make daily transits between the Wilma facility and the Lewiston Mill. Typically, these trucks run evening shifts, with each making 10-15 trips per shift. These transfer activities generate 70-115 daily trips in total. Inputs for these movements are generated through a combination of onsite chipping and incoming barges. On the barge side, the Wilma facility receives an average of five barges per month of chips and sawdust upriver from Columbia City, Oregon (downstream of Portland). The 5 barges convert to roughly six truckloads each. The Columbia City facility serves as a collector hub from area sawmills. The Wilma chipping facility additionally provides its own chipping of incoming pulp logs. The chipping operation brings in about 8,200 trucks a year, or 683 a month (20-25 daily).

Figure 30. Truck Volumes near Port of Whitman’s Wilma Site, September 2014

Further downstream, a second Port of Whitman property is located at Almota. Almota is a smaller facility than Wilma and primarily serves two grain storage and shipment companies with their available storage of 3.7 million bushels, along with offering the ability to load barges. The Port of Whitman estimates that daily truck traffic into the Almota site is 25 trucks per day on 40 | P a g e

average, with seasonal peaks of up to 100 during harvest. These estimates are consistent with short duration traffic counts conducted by WSDOT in 2011 and 2014 (Figure 31), with many of the trucks being doubles or trains.

Figure 31. Truck Volumes at Port of Whitman’s Almota Site, October 2014

The final river port in Port of Whitman’s portfolio is their Central Ferry facility which adds another 4.6 million bushels of storage capacity and a third barge loading site. The Central Ferry facility attracts roughly 60 trucks per day on average, with seasonal peaks up to 125 per day (Figure 32). The truck traffic is largely attributable to its four grain shipping firms and three fertilizer companies.27 Directly across the river from the Port of Whitman’s Central Ferry facilities is the Port of Garfield’s storage and loading facility with a capacity of roughly 4.4 million bushels serving one grain shipping firm, Pomeroy Grain Growers.

27 Port of Whitman information may be found within their Port Comprehensive Plan 2010-2015. www.portwhitman.com/pdf/CompPlan.pdf 41 | P a g e

Figure 32. Truck Volumes at Ferry Sites, October 2014

Over the last several decades, the Port of Lewiston has been a significant inland player in the movement of bulk goods (e.g. wheat), as well as container traffic down the river. The primary export from the Port of Lewiston is grain from the Lewis-Clark Terminal (LCT). The LCT is a jointly owned facility by three regional cooperatives (CHS Primeland, PNW Farmers Coop, and Uniontown Coop) with a storage capacity in excess of 7 million bushels between their facilities at both the Ports of Lewiston and Clarkston. Between 1991 and 2014, the Port of Lewiston shipped an average of 682,338 tons of wheat (Figure 33). Over this same period, the port has averaged nearly 10,600 containers (TEUs) annually (Figure 34).28

28 Port of Lewiston. http://portoflewiston.com/ 42 | P a g e

Figure 33. Annual Wheat Tonnage Originated at the Port of Lewiston

1,200

1,000

800

600

400

200 Tonsof Wheat Shiped('000s) - 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source: Port of Lewiston

Figure 34. Annual Containers Originated at the Port of Lewiston

20 18 16

14

12 10

8 TEUs TEUs ('ooos) 6 4 2 0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source: Port of Lewiston

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Container Challenges - As of April 2015, regular container service by barge from the Port of Lewiston had been suspended. The suspension of services is a direct result of activities at the Port of Portland that resulted in the last steamship line (Hapag-Lloyd) no longer making calls. This line represented 90 percent of the Port of Lewiston’s container volume.29 The lack of container service and availability at the Port of Lewiston has necessitated the region’s pulse (pea and lentil) producers, among other container users, to find alternate means of procuring transportation services, which at this time is significantly dependent upon container delivery by truck. In addition to the pulse crops being impacted by loss of container movement to Portland, Clearwater Paper has also experienced significant changes. Prior to the increasing uncertainty and ultimate loss of container service, Clearwater Paper moved 5,000 containers annually to the Port of Portland, loaded with primarily paperboard products heading for export to Asian countries. With the loss of container service, they now rely on truck movements to the Ports of Seattle and Tacoma for 100 percent of their paperboard exports. Clearwater Paper has expressed that their desire for barge movements is more than just the economics of the mode; rather, they highlight that barge movements also minimize the necessity to move the containers between modes and thus reduce potential product damage.

The lack of barge opportunities may subsequently add to concerns over driver shortages that already plague the trucking industry nationwide. Trucks are not seen as a desired long term solution to loss of barge based container movement due to the heavy transport cost over extended distances and the reduced modal competition. Producers in the region have expressed interest in the development of improved rail access via closer switching stations. As rail car availability and reliability of delivery have also become significant issues throughout the Northern Corridor, the ability to generate access to a rail line is one potential component and is a longer term mechanism to addressing the issue.

In an effort to improve container movement options and reduce costs for the region’s producers of peas, lentils, garbanzos, and other containerized products, the Port of Lewiston has recently

29 http://portoflewiston.com/wp-content/uploads/2015/04/CYXSuspensionXNewsXReleaseXAprilX8X2015.pdf 44 | P a g e

established (as of November 2015) a new route to move containers. Beginning with bi-weekly shipments of 20 containers, the Port of Lewiston is providing barge service of containers to Boardman, Oregon where they are then loaded onto rail cars and transported to the ports in Seattle and Tacoma. The first two shipments (40 containers) were all purchased by one garbanzo producer/shipper. Port managers estimate that this newly established route will reduce per container costs currently incurred by producers using trucks. Truck costs are estimated at roughly $1,800 per container, whereas the barge and rail combination is $1,400.

While the new barge and rail combination is a positive step for the region’s producers, they remain hopeful that a new shipping line will return to Portland and reestablish the per container rates fully by barge, that had ranged from $800 to $900 per container. In the interim, the Port of Lewiston hopes to expand its container service to weekly movements on full (58 containers) barges.

Lock Outages As the lock system ages, planned maintenance becomes a critical factor in extending the life and viability of the dam and lock system along the Columbia-Snake network. While these planned maintenance operations may cause temporary outages of river movement, a planned outage is easier to prepare and adjust for, than is a catastrophic failure. Routine maintenance outages occur every year (Figure 35).30 Occasionally, major outages must occur that can keep the system down for extended periods of time. As visible by the significant spikes in 2010-2011, the most recent of these occurred from December 2010 to March 2011. This extended Lock outage was meticulously studied by the Freight Policy Transportation Institute (FPTI) at Washington State

30 US Army Corps of Engineers, Public Lock Unavailability Report. http://www.navigationdatacenter.us/lpms/Public_Lock_Report/Public_Lock_Unavailability_Report-1.htm 45 | P a g e

University to examine the planning and response by the producers impacted and the transportation services that enable their goods movement. Unlike roadways who can frequently find reroutes when a segment goes out, the river system has no reroute without using other modes to move goods around the outage. As such, the system of locks should be considered in its entirety as they are all interrelated.

Figure 35. Historic Scheduled Lock Unavailability 4000

3000 Ice Harbor

2000 Little Goose

Hours 1000 Lower Granite

0 Lower Monumental

Planned Unavailable PlannedUnavailable

2011 2003 1995 2013 2012 2010 2009 2008 2007 2006 2005 2004 2002 2001 2000 1999 1998 1997 1996 1994 1993 2014 Source: US Army Corps

The scheduled extended maintenance outage of 2011eliminated barge traffic on much of the upper Columbia River and the entirety of the Snake River system during a period of the year in which 35 to 40 percent of annual wheat movement on the river occurs. During this period, wheat accounts for roughly 80 percent of total movement. The closure thus placed increased demands on other modes of transportation. In a typical year, February moves more than 400,000 tons of wheat; the second highest of any month. Similarly, January and December move large volumes of wheat, ranging from just shy of 300,000 to nearly 375,000 tons. March is the month in which the year‐low historically occurs with a tonnage of 254,000. Such significant volumes necessitated strategic interaction among all the actors to minimize the economic impacts of the closure.

Starting with the Class I rail operators, an increase in the weekly volume of west bound trains was ordered to accommodate wheat during and around the lock outage. The increased train volume required additional coordination with the rail loading facilities. Ritzville Warehouse Company expected three times the normal winter business during the lock closure. These railcar

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loading facilities have access to hundreds of miles of track and elevators, making this mode efficient and affordable, more so than direct trucking, for traditional barge customers. Additionally, movement of wheat through the barge system in the months leading up to the outage was 15 percent higher than typical monthly averages in previous years. The high prices of wheat at this time made the choice to move more wheat sooner a relatively easy choice for many producers.31

A 14-week extended lock closure is currently scheduled for the Columbia and Snake rivers between December 12, 2016 and March 20, 2017. This closure will be three weeks longer than the previous 2011-12 extended closure. The US Army Corps of Engineers will conduct critical repairs, routine maintenance, and improvements, including those to Snake River locks and dams:

 Ice Harbor Lock and Dam – Installation of new operating machinery for the downstream gate.  Lower Monumental Lock and Dam – Second phase of installation on new downstream lock gate will replace and install newer, heavier duty gears for gate operation.  Little Goose Lock and Dam – Experienced a failed gudgeon arm in 2014, causing an emergency outage. Completion of replacement to ensure safe and reliable operation will occur during the planned outage.  Lower Granite Lock and Dam – No major maintenance planned. Will conduct annual routine maintenance.32

Learning from the experiences of the 2010-11 extended lock outages, shippers and transportation actors will again be required to coordinate an effort to ensure minimal economic disruption to the region. With new multi-car loading facilities coming on board at McCoy and Highline since the

31 Simmons, Sara and Ken Casavant. FPTI Research Report #2. "Industry Preparations for the Columbia-Snake River Extended Lock Outage, July – December 2010." February 2011. 32 US Army Corp of Engineers, Walla Walla District, http://www.nww.usace.army.mil/Missions/Navigation/FY17LockOutage.aspx 47 | P a g e

previous closure, the capacity of the entire system may be well suited to once again make the necessary adjustments for the short duration of river closure. In addition to the downriver movements of wheat, upriver movements to the Port of Wilma previously discussed, must also adapt. Unlike wheat production, chips and sawdust moving to Clearwater Paper possess a more limited shelf-life and ability to preposition product. They anticipate the need to get ahead in production prior to closure and, as needed, move chips and sawdust by truck from Columbia City to Lewiston, despite its increased cost.

Air Despite being substantially dwarfed in volume by other modes within the region, the region’s two major airports serve vital roles to the communities they serve. Air freight movement that departs from or arrives in the region is largely processed through the Spokane International Airport, with truck freight carriers like FedEx, Old-Dominion, and UPS making routine transits back and forth. While much of the freight of the region is not suited for air transport, several technology based industries, including Schweitzer Engineering Laboratories, make daily use of air freight opportunities to reach worldwide markets. Despite ceding most air freight operations to Spokane, both the Pullman-Moscow Regional Airport and the Lewiston-Nez Perce County Airport do handle some air freight movements. Table 4 below demonstrates the significantly smaller volume of freight originating or terminating with the region’s local airports in comparison to those in Spokane and Boise. Both the Pullman-Moscow and the Lewiston-Nez Perce County Airports recorded freight volumes from the same three carriers: Empire Airlines Inc., FedEx, and Horizon Air (Table 5).

Currently, the Pullman-Moscow Regional Airport (PUW) is undertaking expansion and realignment opportunities. As PUW has experienced increased use by larger aircraft, it does not currently meet FAA design standards. Working with the FAA, PUW has developed plans that will permit the realignment of the runways to meet standards. In addition to realignment, PUW

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will look to expand or relocate the current passenger terminal.33 Tentative plans call for building a new passenger terminal and converting the existing terminal into a freight oriented terminal.

Table 4. Pounds of Freight Enplaned to or from Regional Airports34 Originated Terminated 2014 2015* 2014 2015* Lewiston (LWS) 658,316 233,573 595,748 222,343 Pullman-Moscow (PUL) 81 2,576 14,481 4,768 Spokane (GEG) 72,394,631 29,269,019 99,583,849 40,226,162 Boise (BOI) 38,093,883 15,730,976 50,134,853 19,201,054 * Value represents January-May 2015. Source: BTS TranStats

Table 5. Pounds of Freight Enplaned by Carrier Serving Pullman-Moscow and Lewiston- Nez Perce County Airports Originated Terminated 2014 2015* 2014 2015* Lewiston-Nez Perce County Airport Empire Airlines Inc. 322,857 113,148 289,225 107,008 Federal Express Corporation 318,891 113,060 283,826 107,010 Horizon Air 15,178 7,365 19,447 8,325 Pullman-Moscow Airport Empire Airlines Inc. - 1,280 - 432 Federal Express Corporation - 1,280 - 1,282 Horizon Air 81 16 14,481 3,054 *Value represents January-May 2015. Source: BTS TranStats

33 Pullman-Moscow Regional Airport: http://www.puw-ea.com/ 34 Bureau of Transportation Statistics, TranStats. http://www.transtats.bts.gov/DL_SelectFields.asp?Table_ID=292&DB_Short_Name=Air Carriers 49 | P a g e

Railways The railroads of the four county region of southeast Washington are comprised nearly entirely of short line railroads that connect to the main lines to the north and west. Short line railroads largely emerged out of the 1980 Staggers Rail Act, during a period of significant deregulation in the transportation industry. The Staggers Act deregulated the railroad industry and allowed Class I railroads to adopt cost reduction strategies through the sale or lease of no- or low-profit, low- density rail lines.35 During the following decade, this action led to the creation of 227 short line railroads nationwide, and an additional 229 through the 1990s.36 Despite having been of low value to the Class I railroads, these lines nonetheless serve valuable functions for the industries of the communities in which they are found. Subsequently, many of the lines were leased, purchased, or otherwise obtained by various private or public entities. Short line railroads are located throughout the state and connect a variety of regional production to the mainline rail network. 37

With 22 short lines combining for nearly 1,400 miles of railroad, and a recognition that many have long suffered from deferred maintenance since their ownership by the Class I lines, the Washington State Legislature commissioned a Washington State Short Line Inventory and Needs Assessment in 2014.38 Sage et al. identified that roughly 700 miles of track state wide were below the standards required to efficiently operate 286,000 pound railcars at Class 2 status (Table 6); largely the current industry standard. This deficit is one that many short line owners and operators identified as problematic to overcome, given current revenue generation ability. To sufficiently achieve 286,000 pound capability on the state’s lines and bridges requires a total statewide investment of $610 million. It is important to note that despite the ability to efficiently

35 Carriers with annual operating revenues of roughly $467 million or more. Two currently operate in Washington State; BNSF and Union Pacific. 36 Babcock, M.W., and Sanderson, J. 2004. Should Short line Railroads Upgrade Their Systems to Handle Heavy Axle Load Cars? A Kansas Case Study. 37 http://www.wsdot.wa.gov/NR/rdonlyres/AFF740F6-20F2-4C85-8569-F107E5B649D8/0/StateFreightRailPlan.pdf 38 Sage, J.L., Casavant, K.L., and Eustice, J.B. 2015. Washington State Short Line Rail Inventory and Needs Assessment. Report submitted to WSDOT, June, 2015. WA-RD 842.1. 50 | P a g e

handle 286,000 pound cars having become an industry standard, there are short lines that may not benefit or need much from such an improvement. It is critical that each line economically evaluate its needs, opportunities and constraints.

Table 6. Federal Railroad Administration (FRA) Speed Guidelines by Track Type Track Type Freight Passenger Excepted <10 mph not allowed Class 1 10 mph 15 mph Class 2 25 mph 30 mph Class 3 40 mph 60 mph Class 4 60 mph 80 mph Class 5 80 mph 90 mph Class 6 110 mph Class 7 125 mph Class 8 160 mph Class 9 200 mph

Several short lines are present within the region, with varying levels of operation and condition (Figure 36). Watco’s Great Northwest Railroad spans 77 miles of rail line along the Snake River, all of which meet Class 2 standards and connects to the Union Pacific line near Starbuck. This line benefits from solid and growing relationships with shippers in and around the Port of Wilma. The Port of Whitman County recently obtained project funding for $1.5 million in rail improvement at the Wilma site. This rehabilitation is in addition to spurs within the port being developed by the newest tenant, CHS Primeland.39 The new Primeland facility adds capacity for 24,000 tons of dry fertilizer and 2.5 million liquid gallons. This new facility is seen by managers as an opportunity to reduce transportation costs and thus costs for its customers. Transportation costs are reduced via the ability to greatly reduce the number of necessary truck miles needed to service customers from Grangeville, ID to Mead, WA. Primeland’s new facility expects to

39 www.chsprimeland.com 51 | P a g e

receive 75 percent of its fertilizer input via rail. It has the capability to receive dry inputs by rail and truck, and liquid by rail, barge, and truck. Until the Wilma facility is ready for operation in 2016, Primeland has no ability to receive liquid inputs by barge, and limited ability by rail. Primeland’s movement into the port will add to the rail and truck volume already generated by current tenants like Clearwater Fiber, Bennett Lumber, The McGregor Company, and Hinrichs Trading Company.

The McGregor Company40 is a fertilizer and agri-chemical company providing farm services throughout the Pacific Northwest, and has branches in more than 30 communities in eastern Washington. In 2014, they completed the construction of a new storage and distribution facility at the Port of Wilma that greatly increased its regional capacity. Wilma is now McGregor’s fourth facility in the region and possesses the capacity to store 38,000 tons of nutrients that are mixed and loaded onto trucks on site. In addition to liquid capacity, the site also has a 48,000 square foot dry storage capacity. The majority of inputs arrive at the site by rail, and some additional by barge. McGregor utilizes 1,500 railcars throughout the short line and mainline system. From the Wilma facility, McGregor delivers product to its retail outlets and direct to farms from Walla Walla, to Spokane, to Grangeville.

40 www.mcgregor.com 52 | P a g e

Figure 36. Short Line Railroads of Southeast Washington

While the Great Northwest Railroad is in solid shape moving forward, the same cannot be readily said for the 38 miles of track owned by the Port of Columbia and operated by Watco near Dayton. All 38 miles of this line have been identified as structurally deficient to efficiently and safely operate 286,000 railcars at Class 2 status. In addition to the rail, tie, and ballast

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replacement needed, the line has 13 bridges, of which 10-12 are in need of at least rehabilitation and potentially replacement (Table 7).

Currently, the owner and operator find themselves in a Catch-22 scenario, and thus an impasse. In order to secure state support for funding and infrastructure investment from sources like WSDOT’s Freight Rail Assistance Program (FRAP), or the Freight Rail Investment Bank (FRIB), or directly from the operator, the line must be able to demonstrate, via benefit cost analysis or the like, the likely benefits and economic impacts generated by the investment. However, at this time the state of the line is in such a condition that the Port has had little success in generating significant potential customer interest in using the line.

Table 7. Estimated Infrastructure Investment Needs on Port of Columbia’s Railroad to Achieve 286,000 pound, Class 2 Suitability* Item Unit Unit Cost Quantity Cost Rail Replacement Track Foot $90 201,168 $18,105,120 Joint Rehabilitation Each $30 10,316 $312,297 Crosstie Replacement Each $90 29,528 $2,657,475 Ballast Distribution Ton $25 40,234 $1,005,840 Surface Line and Dress Track Foot $3 201,168 $550,169 Ditching Track Foot $6 201,168 $1,106,424 Bridge Rehabilitation Each $125,000 10 $1,250,000 Bridge Replacement Each $550,000 2 $1,072,500 Total $26,059,825 Misc. Items, Sales Tax, Mobilization Lump Sum 15% $3,908,974 Projected Total $29,968,798.84 *Note: Estimates are based off current identified deficiencies and replacement costs, not on detailed engineering estimates.

The third major short line rail road within the region is significant sections of the state owned Palouse River and Coulee City (PCC) Railroad found primarily in Whitman County and connected to the Union Pacific to the west, and the BNSF to the north. Within the region, the PCC lines includes the P&L line (Potlatch and Lewiston), the PV Hooper Line, and the WIM 54 | P a g e

line (Washington Idaho Montana), in addition to several miles that are not currently in service between Colfax and Pullman, Pullman to Moscow, and north of Pullman towards Palouse (Figure 33). Both the P&L line and the WIM line are operated by the Washington Idaho Railway (WIR). In May of 2015, WSDOT released their 2015-2025 PCC strategic plan, in which they identify nearly $60 million in capital needs for the entirety of the PCC system, much of which accrues within Whitman County (Table 8).41 Within the Palouse RTPO region, nearly $35 million of capital needs were identified.

Table 8. System Capital Needs for Palouse RTPO Region PCC Lines 286k lb. Capacity Projects Description Cost P&L Marshall to McCoy Replace 11 bridges and repair 4 Bridges $ 5,988,000.00 Rail Miles Total Track Miles Track Rehabilitation in Curves Replaced (incl. in Cost Rehabilitated total miles) P&L/WIM 20.2 5.2 $ 9,020,000.00 Hooper 9.3 6.7 $ 7,260,000.00 PV 10.8 6.6 $ 7,520,000.00 Total 40.3 18.5 $ 23,800,000.00 Replace Defective Rail Cost

System wide Allowance Estimated initial defective rail replacement $ 5,000,000.00 Total (in 2015 dollars) Total capital Project Need $ 34,788,000.00

Operationally, much of the PCC system has direct and significant linkages to the Washington grain train program. Of the 118 state owned grain train cars, 89 operate on the PCC, 60 of which operate on the PV Hooper line in the region. In 2013, roughly 20 percent of Washington wheat

41 WSDOT Freight Services Division, 2015. Palouse River and Coulee City Rail System: 2015 to 2025 Strategic Plan. http://www.wsdot.wa.gov/NR/rdonlyres/936F27B0-8F84-49C4-AF4E- 33E7216E1A23/105893/2015PCCStrategicPlan1.pdf 55 | P a g e

was transported, in part, on the PCC. In addition to wheat movement, other commodities include barley and lentils.

Importantly, the short line rail network of the region, particularly the PCC, provides vital truck connectivity for regional farmers and shippers. WSDOT has estimated,42 and interviews conducted for this report reaffirm, that most truck legs of wheat transits cover roughly 10-20 miles. This short distance is reflective of the high cost of truck movement for heavy, bulk commodities like wheat. It also generates importance for the proper location and functioning of grain loading facilities for rail and barge. Those rail loading facilities and their capacities can be seen in Figure 37. Even at the minimum travel buffer of 10 Euclidean43 miles the rail loading facilities sufficiently cover much of the region in Whitman County. More detail on wheat movements is presented in the next section.

In addition to agricultural products being moved on the PCC line, Potlatch, Idaho based Bennett Lumber utilizes the WIM and P&L lines to connect with the BNSF in Marshall. Bennett Lumber has recently worked with the line owner, Watco, to upgrade the Idaho segment of the line connecting to Palouse. The firm estimates that they routinely move 8-10 cars per week on the line as they ship primarily white fir to customers as far away as Texas and Chicago. Bennett Lumber representatives have indicated that line quality on the Idaho side continues to improve, while that on the Washington side lags in rail quality. This sentiment is reinforced in the Short line Inventory showing that 73 percent of the WIM is deficient in its capability to handle 286,000 pound cars at a Class 2 standard.

42 Ibid. 43 A Euclidean distance measures the straight line radius from the facility. This is independent of the road network. 56 | P a g e

Figure 37. Rail Loading Facility Capacities on the PCC System

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Characterizing Retail Distribution

Thus far, the majority of the discussion has been focused on the agricultural production and transportation needs of the region. The degree of attention paid, is warranted based on the proportion of freight traffic that is attributable to agriculture in terms of its inputs and commodity movements. However, as identifiable throughout the town specific maps, retail firms make up a substantial number of individual businesses. By and large, the vast majority of these firms are found in the region’s two larger centers, Pullman and Clarkston. Unlike many movements considered for wheat harvest in which single point origin and destination trips are the majority, retail distribution frequently involves many more stops throughout many locations and towns and frequently involve trucks that routinely enter and leave the region on a daily basis. This type of route delivery can be readily visualized by the distribution routes and logistics of parcel delivery services like that of UPS or FedEx in which larger trucks (truck and trailer) provide service to the region (found in Pullman and Lewiston-Clarkston Valley), and smaller delivery vans make their pickups and deliveries throughout the service area. These services characterize many of the freight needs of retail and technology firms. Several firms have high enough demand that they are able to secure dedicated trailers from trucking firms on a routine (daily) basis.

Retail Grocery Stores Among the retail distribution channels common to the region, as it is to all regions, is the retail distribution of food for grocery establishments. The nature of the modern grocery retailing industry is reliance on just-in-time (JIT) services; providing delivery for direct placement onto store shelves for sale. This evolution of JIT has been brought on in part by the demand for more store square footage dedicated to sales as opposed to holding inventory, thus leaving little room to hold large volumes of goods. The ability of JIT to take hold is largely based on efficient and reliable freight movement and logistics systems throughout the US. The region has fewer than 20 identifiable grocery retail establishments in Washington (Figure 38).44

44 InfoUSA, August 2015. 58 | P a g e

Figure 38. Retail Grocery Establishments

Multiple delivery systems routinely occur on near daily bases at individual grocers and between grocers. On the larger end of the grocer size, the region has two Walmart Supercenters (Pullman, Clarkston), as well as larger Albertson’s, Safeway and Costco, in addition to multiple smaller grocers throughout the region. At the larger stores, such as Safeway, food distribution is achieved by both dedicated firm truck delivery (Safeway trucks serving Safeway stores), food distribution firms like Food Services of America, or Swift trucking, as well as product specific trucks like soda, beer, and bread. This diversity of trucks and truck sizes also comes with a diversity of delivery styles. Many larger stores experience two common delivery means. Products are delivered both the dedicated loading dock area of the store, as well as direct delivery to the store front. Typically, individual product deliveries, (e.g. bread or beer) are directly delivered to the store front and shelves are stocked by the driver. This common practice is found throughout the nation. Many of these delivery drivers have a route in which they serve as both a delivery agent, as well as the sales representative and inventory tracker. Key among

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concerns of these types of drivers and deliveries is the ability to efficiently and safely ingress and egress the premises. Stores with large parking lots are often readily navigable without requiring the driver to back up for any reason. Other situations may call for the driver to park in, or partially in the roadway or turn lane. This occurrence is a frequent observation of drivers and deliveries in downtown areas with little dedicated off street parking, and is characteristic of not only food delivery, but much retail delivery in downtown districts.

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Characterizing the Wheat Supply Chain

Farm Origins In 2012, wheat was grown on more than 2.1 million acres throughout Washington, primarily in the southeast region. These acres produced 141 million bushels, or nearly 65 bushels per acre.45 Significant additional acreage is left fallow in any given year to promote soil health and moisture, while other parcels of potential wheat producing lands are currently maintained in the Conservation Reserve Program (CRP) (Figure 39). As evident from Figure 39, the major wheat production area of Washington is expansive, covering significant portions of 8 to 10 southeastern counties.

Figure 39. Regional Production Area for Washington Wheat46

45 http://www.agcensus.usda.gov/Publications/2012/ 46 WSDA, http://agr.wa.gov/PestFert/natresources/AgLandUse.aspx 61 | P a g e

Roughly progressing sequentially over the harvest season from southwest to northeast, wheat harvest occurs throughout late summer as the crop becomes ready. Upon harvest, much of the wheat is moved by farm truck to local storage. Until recent decades, such movements were conducted by more, smaller trucks; however those trucks are now frequently replaced by larger trucks moving up to 26 tons of wheat per trip. One bushel of wheat weighs approximately 60 pounds, making the entire weight of the 2012 harvest, 4.23 million tons. This yield thus generates an estimated 162,716 truck trips between farm and initial grain elevator (Table 9).

Table 9. Farm Truck Trips to Support Wheat Harvest 2012 Wheat Acres Harvested 2,186,813 2012 Wheat Yield (Bu) 141,020,565 Weight per Bushel (lbs) 60 2012 Weight Yield (tons) 4,230,617 Tons Hauled per Truck 26 Truck Trips Needed to Support Harvest 162,716

As previously identified, wheat production is quite dispersed. Such dispersion places the generated trucks trips on numerous roadways throughout the region. Figure 40 below highlights an approximation of the dispersed nature of truck trips generated by harvest. Such trucks may be expected to begin on the network at the point near the field where they can access a roadway suitable for truck traffic. Each truck collects wheat from approximately 13 acres. The USDA’s CropScape layer was used to identify parcels of land utilized for wheat production in 2014. This data layer permits the generation of very precise estimates of the number of acres dedicated to wheat, or other selected crop.

Figure 2 demonstrated that for Washington wheat farmers, truck movement constitutes a small portion of travel, yet a vital one as wheat does not grow directly on the rail line or the river. From the farm, most trucks are destined for nearby storage either to be moved again later by truck, to be loaded onto the rail, or to be loaded onto a barge for its river segment.

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Figure 40. Wheat Harvest Truck Trips Generated (Whitman, Asotin, Garfield, Columbia Counties) 2014. Grid cells represent 1 mi2

Source: USDA CropScape.

After the Farm As one moves along the wheat supply chain, the number of marketing actors quickly diminishes. While there were 2,871 wheat farms in Washington in 2012,47 there were less than 30 major wheat suppliers and buyers with grain storage capacity in the state. These elevators (mostly cooperatives) have grain elevators storage for just over 131 million bushels of wheat plus additional capacity, as needed, through ground piles. The storage facilities throughout the region

47 http://www.agcensus.usda.gov/Publications/2012/ 63 | P a g e

vary considerably in size and access to rail or river connections (Figure 41). More storage can also be found on farm.

Figure 41. Grain Storage Facility Relationship to Transportation Network48

The Freight Policy Transportation Institute (FPTI) at Washington State University (WSU) has surveyed or otherwise been in communication with many of the elevator managers in recent years. FPTI’s most recent survey sought to understand the average catchment area of the region’s elevators.

48 USDA CropScape, http://nassgeodata.gmu.edu/CropScape/; Washington State Department of Agriculture Publicly Licensed Grain Warehouses http://agr.wa.gov/FP/pubs/docs/gwalicensebook.pdf 64 | P a g e

The average elevator drew in farms located 10 to 20 miles from any one of their facilities. Some larger facilities with direct access to rail or barge possessed a slightly larger catchment. Assuming the catchment falls on the short end of the range, Figure 42 displays the approximate coverage of the region’s wheat production by the known locations of the storage facilities. Survey respondents were asked to identify the primary reasons for their modal choice decisions for outbound shipments. Of the 19 marketing firms’ responses collected, eight indicated that costs were the primary factor, while another seven indicated that the availability or relative location of the mode was a primary consideration. Market price also played a smaller role, two responses, in modal choices.

Figure 42. Grain Storage Facility Catchment Areas49

49 USDA CropScape, http://nassgeodata.gmu.edu/CropScape/; Washington State Department of Agriculture Publicly Licensed Grain Warehouses http://agr.wa.gov/FP/pubs/docs/gwalicensebook.pdf 65 | P a g e

Responses to the modal choice questions fall in line with the observations shown in Figure 2 that suggest discrete geographic differences in modal usage. These differences reflect the availability and relative rates of the rail and barge modes and the distance required to move the wheat to the nearest access points by truck. Further, these responses are reflective of the relative ton-mile expenses faced in a multimodal supply chain such as wheat. Tables 10 and 11 show the relative equivalencies of the three modes of transport in terms of cargo capacity (Table 10) and costs (Table 11).

Table 10. Standard Modal Capacities Standard Modal Freight Unit Capacities Modal Freight Unit Standard Cargo Capacity Highway - Truck 26 tons Rail - Bulk Car 111 tons Barge - Dry Bulk 1,750 tons

Table 11. Modal Equivalencies50 Equivalent Units Mode of Transportation Equivalence By Mode 1 Barge 16 Rail Cars 70 Trucks Cost per Ton-Mile (cents) 0.72 2.24 26.61 Ton-Mile per Gallon of Fuel 616 478 150

50Texas Transportation Institute. A Modal Comparison of Domestic Freight Transportation Effects on the General Public: 2001-2009. http://nationalwaterwaysfoundation.org/study/finalreporttti.pdf. February 2012. 66 | P a g e

Stakeholder Identified Constraints

Valuable information may be gained in relation to the suitability of a transportation system directly from the users of the system and those actively engaged with it. To ascertain those stakeholders’ inputs on the condition of the transportation system of the region, a series of group based Regional Truck-Freight Mobility Meetings were held, in addition to multiple one-on-one interviews with key stakeholders unable to attend group sessions. The process sought to encourage stakeholder buy-in to, and ownership of, the process whose goal is to facilitate their improved regional mobility. The meetings and interviews sought to begin to establish a means of collecting key operational characteristics of the industries. Below are the highlights of the needs voiced by participants and stakeholders. Needs are presented by the city or county in which they are found.

Clarkston Clarkston is perceived by several of the local stakeholders as a pass through entity, as opposed to a major generator or receiver of freight movements. However, several notable locations of origin or destination may be found, primarily in the vicinity of the Port of Clarkston. Such activity is related to port tenants as well as major retail outlets near the port, including both Walmart and Costco. This area of the city also had the most needs identified among stakeholders, including:  Efficiency of the “Blue Bridge” leading into Clarkston from Lewiston on Hwy 12 (Bridge St) and subsequent movement through Clarkston heading west. Concerns over the bridge include its dimension (e.g. width) as well as the interchanges on either side of the bridge.  Bridge complications are compounded with delays related to the traffic light at high volume times creating a bottleneck in downtown. o Several stakeholders indicated an evaluation of signal synchronization is needed.  Major concerns have been expressed over the continued support of river movements by barge in conjunction with the dam and lock network. In the opinion of stakeholders, significant repercussions will be felt throughout the region, including increased freight on the roadway, increased dependency on railroads, and subsequent costs and rates 67 | P a g e

associated with such change in network utilization. This then significantly impacts any comparative advantage that may be experienced by the region’s producers.

Pullman Pullman is home to not only Washington State University, but also several retail outlets, including Walmart, that generate freight trips. Located on the north side of Pullman is the Port of Whitman, with several freight producing tenants like Decagon Devices, who each generate daily freight trips. Neighboring the port property is Schweitzer Engineering Labs (SEL) that additionally brings in multiple truck trips daily; typically via logistics and delivery companies like FedEx or UPS.  Terre View Drive and the accompanying roadways near the Port of Whitman and SEL frequently experience significant congestion during times of high volume that typically coincides with shift changes at SEL and other facilities.  The current major concern is downtown congestion at peak times (3:30-6pm). Pullman currently has 9 coordinated signals. A recently completed traffic study examined alternatives to downtown traffic flows and management. Due to the nature of the built and physical environment downtown, the options identified were limited. None of the ideas posed have gained significant traction with city officials, with the exception of signal optimization. Options include:

o Signal Optimization (completed Fall 2015); o Coupled one way south on Grand between Davis Way and Paradise Street, and one way north turning right from Grand onto Paradise St and left onto Kamiaken Street, and left onto Olsen Street. o Removal of select parking areas during peak flows. This would add a southbound lane on Grand;

 Other concerns directly related to freight include that of tight turning movement. o Right turn off of Davis; o Left Turn from Grand onto Paradise.

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o Right turns off of Bishop onto Main/SR-270

Colfax Colfax is the only traffic lighted segment of US-195 between Lewiston/Clarkston and I-90 in Spokane. Additionally, Colfax is the eastern terminus of SR-26, making it a substantial hub of flow in the region. Major issues identified within Colfax include:  US-195 and SR-26 intersection bridges are aged and in need significant repair, if not replacement and realignment to provide better flow at the “Y” interchange. The current alignment no longer reflects current traffic patterns and the bridges built in 1931 and 1938 are structurally deficient.  As all traffic is filtered through the downtown area, suitable and safe turn opportunities are vital to ensuring turning traffic does not constrain other flows, causing significant back-ups. The intersection of US-195 and SR-272 is identified as needing improved turn lanes for safety and efficiency. The current building footprint in this vicinity creates significant limitations to redesign opportunities.  Once on SR 272, concerns arise between Mill Street and the Hauser Heights subdivision. These concerns center on the roadway width and the deterioration of the shoulder, despite several attempts by the state to remedy the roadway. City officials highlight this section as routinely used by pedestrians and bicycles, making the lack of stable shoulder width a significant safety concern.  Increasingly, vehicles, including trucks, avoid passage through downtown Colfax by way of South Main Street to Fairview. This route takes travelers past the Hospital and out to Airport Road where it then reconnects to SR 26. The geometry and location of the intersection of US 195 and South Main Street creates unusual traffic flows and difficult turning opportunities. An evaluation of the current traffic flow and hindrances should be undertaken.

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Palouse Palouse may be found in the northern portion of Whitman County and provides connectivity to Idaho, as well as still providing rail access opportunities. Several of the identified needs include those in relation to the rail.  Rail improvement needs. o 550 feet of the rail within Palouse remains in need of improvement due to significant deferred maintenance. The line suffers from too little ballast. The lack of suitable ballast on the line recently created an issue of a train bouncing into pavement, causing damage. o The line connects over to Idaho and Bennett lumber. Bennett has put private money into the Idaho side. Washington side is part of the PCC, operated by WIR.  Grain Elevator o Additional work is needed to enable modal connectivity. The elevator cannot currently get trucks efficiently to the rail.  Concerns with Highway 27 from Pullman where the 90 degree turn on Bridge Street by trucks and implements may need a change in the bridge overtime.

Port of Columbia The Port of Columbia is located on the western end of the region in Columbia County, near Dayton. The Port owns and operates several facilities with a host of varied tenants. Their modal access opportunities include truck, rail and barge. The major needs currently voiced by the port include that caused by the conditions on their port owned rail line.

 Port owned short line is operated by Watco. The line is in significant need of improvements following years of deferred maintenance. Currently, a standstill exists between the owner and operator, as they find themselves effectively in a Catch-22 situation in which the operator would like to see customers on the line or committed to using the line before investing, but the owner feels that the line needs to be economically viable for safe and efficient movement before they can entice new customers to the line.

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 The seven miles or more from Prescott to Dayton is in a deteriorated condition overall, including bridges, so the line is embargoed at this time. The Port has attempted to access Rail Bank funding but thus far has not been successful.

Dayton and Waitsburg Dayton and Waitsburg are two of the major towns found on US-12 between Walla Walla and Clarkston. Similar to Colfax, these towns frequently serve as pass through communities for both passenger and freight traffic. Both also are found within significant agricultural growing regions and thus experience significant agricultural based traffic. Within the area around these two communities, the following concerns have been voiced:  The intersection of US-12 and Cameron in Dayton is a significant concern;  The old Vantage bridge is only one lane due to weight limits. This bridge is located near the future site of the Columbia Pulp Mill; however, at this time Columbia Pulp does not expect significant truck traffic to require use of the bridge.  Within Waitsburg, the growing number of wind turbines being erected has increased the volume of trucks moving in the region with extended lengths. This poses several turning issues, particularly downtown Waitsburg in which there is a 90 degree turn. The long trucks moving turbine components requires the stoppage of traffic and a complicated set of maneuvers to navigate the corner.

Whitman County Whitman County is the largest in both size and population within the Palouse RPTO region. Within the county, several prominent issues arise.  Bridges o Whitman County has more bridges than any other county in Washington, a total of 251county owned bridges.51 Of these bridges, 56 are considered to be either Functionally Obsolete (FO) or Structurally Deficient (SD); again, this is more than any other county in the state.  Roadways

51 http://www.crab.wa.gov/LibraryData/REPORTS/CRAB/CRAB_Annual/2014/2014DataTables.pdf 71 | P a g e

o Whitman County has the fourth highest volume of rural centerline miles of any county in Washington. Of its 1,899 miles of rural roadway, 1,461 are unpaved roadways (second most of any county in the state).52 o Whitman County has no T-1 or T-2 county roads. It possesses 2.76 miles of T-3 roads, 37.97 miles of T-4 roads, and 248.72 miles of T-5 roads. o The volume of unpaved and other non-all season roadways poses concern to some freight users as the necessity to use longer routes than would have otherwise been necessary increases their transport costs. Others feel the road closures are only a minor hindrance as they are typically able to plan around the closures. o A roadway of particular concern to many users is the Almota Grade. This roadway serves as a significant modal connector to grain facilities on the river. The roadway suffers from multiple concerns including width, safety, curvature, and structural sufficiency. The route often faces issue with rutting and thus uneven travelling surfaces.

Asotin, Garfield and Columbia Counties The remaining three counties within the RTPO region have significantly fewer, but important centerline county miles and bridges. While specific needs are not identified on the bridges and roadways below, the importance of their continued functionality for freight movement should not be underestimated given the dispersed nature of production in the region.  Bridges o Asotin County has 18 bridges on county roads, of which 2 are rated as either FO or SD. o Columbia County has 62 bridges on county roads, of which 10 are rated as either FO or SD. o Garfield County has 32 bridges on county roads, of which 6 are rated as either FO or SD.

52 http://www.crab.wa.gov/LibraryData/REPORTS/CRAB/CRAB_Annual/2014/2014DataTables.pdf 72 | P a g e

 Roadways o Asotin County has 400 miles of county roadway, of which 80 are considered urban and the remaining rural. Of the 400 miles, 233 are unpaved. 0.15 miles are classified as T-2, along with 22.95 miles of T-3, and 19.98 miles of T-4. o Columbia County has 502 miles of rural roadway, of which 354 are unpaved. 10.30 miles are classified as T-3, along with 49.13 miles of T-4, and 146.81 miles of T-5. o Garfield County has 447 miles of rural county roadways, of which 318 are unpaved. 10.13 miles are classified as T-4, along with 125.75 miles of T-5.

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Case Studies

A major component of economic development in rural regions such as Southeast Washington is an understanding of how the transportation assets of the region serve to attract or inhibit the growth of existing industry, or the enticing of new industries in the region. Using the newly completed McCoy Grain Terminal LLC and the planned Columbia Pulp Mill operations as case studies, we identify the key metrics of concern in evaluating the future of transportation in the region. These cases serve as examples of the decision making process and economic impacts generated by investment in the transportation system assets at both the private and public level.

Federal, state and local governments are increasingly tasked with improving freight mobility through operational improvements and new public or private infrastructure, recognizing that the health and economic well-being of communities significantly depends upon transportation. Industry and economic development officials often seek to locate regional loading facilities near their communities as a means of improving the efficiency of the freight movements for their commodities and market outlets. Similarly, as new uses for agricultural product based waste or residual material arise, the need to identify effective locations for such processing facilities becomes a critical factor in their potential for success. Public investment in support of such facilities should raise at least two questions:

 Will the facility succeed in the private marketplace by generating a sustained return as a commercial investment?  Is any public investment justified based on the public net benefits (often referred to by economists as externalities, both positive and negative) produced?

Many variables associated with the demand for such facilities and related infrastructure costs and the functions of such facilities are unknown and create risk and uncertainty. As states and regions seek to increase freight movement efficiencies and capture the economic gains associated with them, a consistent and viable process to evaluate the merits of intermodal facilities, regional

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loading centers, and resource based processing plants is needed. Casavant et al.53 developed such processes through an easy to implement criteria focused on intermodal truck-rail facilities. Casavant’s criteria are designed to identify the relative importance of a set of attributes (Table 12) to an intermodal facility. Each attribute may be evaluated qualitatively as Critical, Necessary, Contributory, or Not Important. The elements identified by Casavant et al, are used here in the evaluation of the McCoy Grain Terminal LLC and Columbia Pulp Mill.

53 Casavant, K., Jessup, E., & Monet, A. (2004). Determining the Potential Economic Viability of Inter-Modal Truck-Rail facilities in Washington State. Report prepared for Washington State Transportation Commission and the Washington State Department of transportation. December 2004. 75 | P a g e

Table 12. Attributes Contributing to the Viability of Rural Based Agricultural Facilities

Proximity To: Operational Attributes Product Public Characteristics (Proxy for Access) (Asset Efficiency) Attributes

 Need for Changing,  Commodity  Public/Private  Class I Railroad Directing, and Dividing Mix Partnership Cargo  Ratio of  Distribution Efficiencies  Short Line Rail with Transport Rate  Magnitude of and first/last mile Class I Connection to Value of Public Participation characteristics Product  Level of Working  Demand  Major Interstate or Relationship  Capacity Opportunities Freight Corridor Between State and and Prospects Private Agents

 Population Center  Degree of Automation  Labor Availability

and Training

 Tax and Zoning Initiatives  Deepwater and

Inland Ports or  Time to Build  Land use Airport compatibility both in policy and available area  Major Production Points including

agriculture and energy clusters  Major Destination Markets

 Adequate Land/Space

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McCoy Grain Terminal LLC The history of grain development in Washington has gone hand-in-hand with technological development and the evolution of transportation in the region. Whether it was steam boats on the Snake River, railroads around the falls and rapids, or highway development, all have served to support the development of the highest density wheat producing county in the world ‒ Whitman County.

As previously described in the wheat supply chain chapter, the competition among, and capacity of, the modes contributing to wheat movement has provided efficient and market responsive service in the region. Though a mature transportation system, adaptation is required to provide ready flexibility to changing market conditions and demands, as well as changes to the transportation system itself ‒ both planned and unforeseen. While geography is a major driver of the direction and modal usage within the wheat supply chain (recall Figure 2), those directional movements are not static. A major case in point was the 2011 lock closure along the Columbia- Snake waterway previously discussed in this report.54,55 While the lock outages may seem an anomaly within the movement of wheat in the region, the necessity to adjust to changing conditions is ever present. The deployment of new unit train loading facilities is one such change that has and is changing the spatial dynamics of wheat movement in the state.

Ritzville had previously been the location of the region’s major multiple car (110 car unit trains or shorter 50 to 60 car shuttle trains) loading facility and significantly reshaped the landscape of grain flow in the region upon its introduction. The Ritzville facility immediately began to compete for grain volume that was previously shipped by truck-barge to the river and to a smaller degree with grain shipped on the PCC rail system. What Ritzville offered was lower rates, ample storage at critical times (between three and four million bushels, including outside storage), the ability to move large volumes of grain quickly, scale efficiencies, and a high degree

54 Refer to FPTI reports: 1, 2, 9, 10, and 12 for full details on industry response to the closure. http://www.fpti.wsu.edu/reports.htm 55 Another, longer (roughly 14 weeks) outage is scheduled to take place in late 2016. 77 | P a g e

of customer service (not charging for double handling, storage availability at harvest time, partially subsidized truck movements, etc.).

A second multiple car loading facility with similar configuration has recently begun operation south of Spokane. The McCoy Grain Terminal LLC facility further affects the geographical landscape and direction of the grain flows (Figure 43). This site began major operations in 2013- 2014 and is drawing from local elevators, more than 20 located within 20 miles, and on farm storage as well as serving a storage function for some movements from the Midwest. The McCoy facility lies on the Washington State owned P&L branch of the PCC short line. Jointly funded (roughly $24 million) by two regional cooperatives, Pacific Northwest Farmers’ Cooperative (PNW) and the Cooperative Agricultural Producers (Co-Ag), McCoy provides the combined 1,500 grower members an additional outlet in getting their product to the market effectively. Within 20 miles of the facility, more than 200,000 acres of wheat are produced in Whitman County alone.

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Figure 43. McCoy Grain Terminal LLC56

Not only does the McCoy Grain Terminal operate as a storage facility and significant hub in the movement of wheat on to the rail system, but the McCoy Grain Terminal LLCLLC firm serves as a major new marketing outlet for the region’s growers. As a trading company, McCoy Grain Terminal LLC is significantly oriented towards the export market. The capacity and movement flexibility it creates allows the region’s cooperatives and their farmers to meet the market needs and guaranteed delivery of product.

56 Wheat yield data rendered from USDA CropScape, http://nassgeodata.gmu.edu/CropScape/ 79 | P a g e

How then does McCoy Grain Terminal LLC stack up to the attributes listed in Table 12 We highlight those considered to be most critical or necessary. Further, Table 13 ranks 12 of the attributes considered to be at least contributory to viability.  Available Volume in Local Production Area: Whitman County is the highest density wheat producing county in the nation providing ample product volume. Figure 43 highlights the density of wheat production in the region as it relates to the location of the McCoy facility.  Railroad Access: The McCoy facility lies on the P&L line of the PCC. This line links directly to the BNSF in Marshall. At the time of construction, proponents of the facility identified substantial physical need on the P&L line to ensure its adequacy to serve as a major loading facility. In 2013, the Port of Whitman County unsuccessfully sought TIGER-V funds to upgrade the P&L line such that capacity could adequately and safely hold 286,000 pound cars. Bridges were of major concern in that application in order to sustainably handle the anticipated loads. Not only is rail access important in terms of moving the commodity to market, it also serves as a collection agent from the area elevators. Many of the country elevators along lines such as the PCC system have limited individual capacity and limited range from which they draw, typical 10-20 miles. However, the added capacity within the linked system offered by the McCoy facility adds power to the attractiveness and utility of the elevators on the system.  Public-Private Partnerships: The ability of the McCoy facility to operate as planned requires a significant degree of public-private partnership. As the state owns the line on which the facility sits, state investment is needed and justified based on the social benefits from such a system. These benefits are generated through increased economic competitiveness of the region’s producers and diversion of heavy trucks off the roadway. The McCoy facility certainly contributes to the reduction in roadway miles. The facility’s managers estimate that: o Without the facility, 16.4 million bushels of wheat would be hauled an average of 75 miles from farm storage to Central Ferry. This movement requires nearly 20,000 trucks

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o With the facility, truck trips to nearby rail loading facilities increase, therefore the volume shipped by rail from storage to McCoy increases, and the number of trucks to McCoy increases (about 25 miles), all acting to reduce total truck miles.  Major Destination Markets: With more than 85 percent of its wheat exported annually, Washington’s destination markets are distant and vast, and intricately linked to the region’s major export ports. The location and operating practices of McCoy LLC allows it to utilize both the Puget Sound ports and those reached by the Columbia-Snake system. This allowance is enabled via the partnerships established during its development. In addition to the McCoy facility, McCoy LLC or its funding partners also have storage and access at Central Ferry, Almota and Lewis-Clark terminals, thus providing ready access to the barge system. Through these multiple venues, McCoy is able to flexibly reach its destination markets with significant volume capacity at competitive prices.

Table 13. Attribute Importance to Grain Loading Facility. Attributes Importance Ownership Type B Access to Modes A Capacity B Distance to/from Supply A Markets Distance to/from B Destination Markets Commodity Mix B Ratio of Transportation Rate to Commodity A Value Time to Build Degree of C Automation Labor Availability C Labor Cost C Tax/Zoning Incentives C Available Land/Space A The evaluation scheme is A = Critical, B = Necessary, C = Contributory As previously identified, the conditions of grain movements in the Pacific Northwest are not static. While the addition of the McCoy facility has certainly had an impact, those changes are

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not final. An additional large grain terminal is nearing completion. The Highline Grain Terminal will add rail loading opportunity in Spokane County, and may draw from current McCoy farmers, as they seek to minimize their transport costs. As competing facilities are brought online, the movement patterns and necessary miles traversed on the roadway are altered. Such alterations continue to seek opportunities to reduce shipping costs via a reduction in truck miles required.

Columbia Pulp Washington State has historically been a major producer of timber and timber related products. These products include the production of pulp and paper from numerous mills found throughout counties on the west side of the state. As pulp production has historically been based on the utilization of woody products, its production has largely escaped the region within Washington’s southeast counties. Neighboring Lewiston however, does find itself as a significant hub of pulp and paper products, bringing inputs from up to 300 miles away and utilizing Port of Wilma facilities for significant portions of its chipping operation.

As technologies evolve and new uses for what has been traditionally considered agricultural waste emerge, the possibility of promising industries in the region exist. Such research into the utilization of the biomass (e.g. wheat straw) left on the ground following harvest have included biofuels, and now pulp. Previous uses for the straw by-products either involved burning of the straw to return some nutrients to the soils, or some have been sold in low value markets as bedding for farm animals.

Columbia Pulp possesses what it believes to be the right mix of technology and location to efficiently produce and market the residual straw in the form of pulp. Inherent to their business model is the pulping process by which they may utilize fewer chemicals, energy, and water than conventional wood pulping processes. Their processes, according to the company, thus produce the pulp with reduced environmental impacts, and creates valuable byproducts in the form of

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sugars and lignin.57 Environmental benefits are generated in part due to the closed mill process of the new technology. This closed process means no discharge as is typically seen in pulp mills. This also eliminates the sulfuric odor typically emitted.

Columbia Pulp, LLC is in the process of opening the first full scale straw pulp mill in the US on their 449 acre site near Starbuck and Lyons Ferry in Columbia County, along SR 261 (Figure 44). Company executives are aiming for an operational date to begin production in late 2016, at which time they will begin scaling up operations until they reach an operational capacity of 140,000 tons per year of pulp. An additional 75,000 tons of byproduct will also be produced annually.

Figure 44. Columbia Pulp and Existing SR 261 Traffic Volumes

At operational capacity, the 140,000 tons per year of pulp produced requires straw inputs of 220,000 tons. These straw inputs are baled (1,000 pounds each) and collected from regional farms after harvest and stored in nearby facilities. A typical flat trailer will be able to move 48 bales, thus requiring roughly 9,000 incoming truck trips per year. Columbia Pulp has begun

57 http://www.columbiapulp.net/ 83 | P a g e

storage of bales at off site locations within 2-miles of the facility. These staging and storage areas will serve as the primary repository of bales coming in from farms. Bales will then be transferred to site as required for operation; generating roughly 35-50 trucks per day. Another 25 trucks per week are expected incoming with chemical inputs. As can be seen in Figure 44 above, this volume of new trucks on the roadway will increase the trucks trips on SR 261. Currently, the southern intersection of SR 261 with US 12 has an AADT of roughly 600 vehicles, 20 percent of which are trucks. To the north of the new facility, AADT is 320, with trucks comprising 17 percent.

To generate the necessary volume of inputs requires significant accessible acres of straw residuals. Such acres are readily available in the region. Figure 45 below, highlights the biomass availability within the region along with a Euclidean buffer of 50 miles to approximate the needed catchment of the facility. Similar availability exists outside the Palouse RPTO region, to the west of the new facility. Table 14 furthers the visualization of the necessary catchment of the facility. Minimum catchment, if using all available, would be roughly 30 miles from the facility. Given current contract estimates for the first three years by Columbia Pulp, they gauge the catchment region to be approximately 90 miles. At this distance, the facility is collecting roughly 1/5 of the biomass available.

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Figure 45. Columbia Pulp Estimated Catchment Area, within Palouse RTPO region58

Table 14. Dry Tons of Biomass Available within 25, 50, 75, and 90 mile Zones of the Columbia Pulp Facility Buffer Zone Straw 25 Mile Buffer 150,734 50 Mile Buffer 544,464 75 Mile Buffer 1,046,077 90 Mile Buffer 1,284,156

58 Straw Biomass availability estimated from FPTI Developed Databases, http://ses.wsu.edu/fpti/biofuel-feedstock/ 85 | P a g e

The above catchment discussions highlight considerations brought to light by the attributes recommended by Casavant, namely Available Volume in Production Area. Other important attributes of consideration include:

 Railroad Access: The new Columbia Pulp facility is located directly on a Union Pacific Spur that is serviced by Watco. Given that the facility will ship out its pulp by-product in a heavy form that is 50 percent moisture, such access is important. Facility operators anticipate an outgoing rail volume of approximately 25 cars per week in tank cars.  Major Destination Markets: The products (both pulp and by-products) to be produced at the Columbia Pulp site will be roughly 50 percent moisture, thus making them rather heavy movements. Such heavy movements and the typical market competitiveness of the pulp industry necessarily limit the viable distance over which the product may be moved. It is anticipated that the market area for the pulp product will be roughly 250 to 300 miles. Typical customers include those downstream firms located in areas of Wallula, Lewiston, Wenatchee, and Yakima. These firms produce products such as paper cup holders, and to-go boxes among other wood based products of similar form.

Further, Table 15 ranks 13 of the attributes considered to be at least contributory to viability. Readily apparent from the above relationships and items in Table 13, is the necessity to carefully balance the transportation costs on both the input and output sides. As is the case with wheat production in general, the distance needed to move product by truck can quickly impact production costs, thus the ability to readily locate on or near rail facilities is a vital consideration.

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Table 15. Attribute Importance to Wheat Straw Pulp Facility Attributes Importance Ownership Type C Access to Modes A Capacity B Distance to/from Input Supply Markets B Distance to/from Destination Markets A Distribution Efficiencies and First/Last Mile A Characteristics Major Production Points including Agriculture A and Energy Production Ratio of Transportation Rate to Commodity A Value Demand Opportunities and Prospects A Labor Availability B Labor Cost C Tax/Zoning Incentives C Available Land/Space A The evaluation scheme is A = Critical, B = Necessary, C = Contributory

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Washington State Freight Mobility Plan and the Region

The Washington State Department of Transportation (WSDOT) defines freight economic corridors as those roadways, railways, and waterways of importance for the movement of commerce within the state. Identification of corridors is based on classification by the Freight and Goods Transportation System (FGTS). In addition to tonnage designations describing the roadways and their economic importance, WSDOT further considers the roadway’s importance to resiliency and valued supply chains. The following summarizes the WSDOT criteria used to define Truck Freight Economic Corridors:59

1. Any T1 freight corridor carrying more than 10 million tons per year.

2. Any T2 freight corridor carrying 4 to 10 million tons per year.

3. Alternative freight routes that serve as alternatives to T1 truck routes that experience severe-weather closures, and carry 300,000 to four million tons per year.

4. First/last mile connector routes between freight-intensive land uses and T1 and T2 freight corridors. These criteria are used to identify the connector routes:

Statewide:  To-and-from T1 and T2 truck routes and strategic U.S. defense facilities;  Over-dimensional truck freight routes that connect the state’s significant intermodal facilities to the T1 and T2 highway system.

In urban areas:  To-and-from the Interstate system and the (1) closest major airport with air freight service, (2) marine terminals, ports, barge loaders and other intermodal facilities, and (3) warehouse/industrial lands;

59 WSDOT, Washington State Freight Economic Corridors. http://www.wsdot.wa.gov/Freight/EconCorridors.htm 88 | P a g e

 From high-volume urban freight intermodal facilities to other urban intermodal facilities, e.g. from the Port of Seattle to the BNSF rail yard in Seattle

In rural areas:  To-and-from state freight hubs located within five miles of T1 and T2 highways; freight hubs are defined as: (1) agricultural processing centers, (2) distribution centers, (3) intermodal facilities, and (4) industrial/commercial zoned land;  Routes that carry one million tons during three months of the year (reflecting seasonality) of agricultural, timber or other resource industry sector goods.

The region served by the Palouse RTPO has no T1 truck freight corridors, and is limited in T-2 routes. US 195 serves as the sole major T-2 route through the Southeast Washington region. Additionally, the easternmost segments of SR 26, east of SR 127 to Colfax, are classified as T- 2.60 Several additional segments also permit grouping into the freight economic corridor classification by merit of their designation as first/last mile connector routes to T1/T2 corridors. These segments may be seen in Figures 46 and 47. Evident from these figures is the substantial understatement or complete absence of several of the region’s most prominent intermodal facilities in support of agricultural movement. As previously identified in this report, wheat and other commodities of the region constitute major components of freight movement and are highly reliant on rail and barge movements. Notable facilities and their connectors that are absent or understated include:

 Port of Whitman – Wilma Rail Loading. o SR 193 is currently identified as a T-3, and a first/last connector based on barge loading; however, rail loading connectivity is likely more significant.  Port of Whitman – Almota Barge Loading. o No indication provided on state maps of barge loading facility at Almota.

60 Based on WSDOT 2013 FGTS data. Maps currently displayed on WSDOT Freight Services website depict 2011 data in which SR-26 does not meet T-2 status. 89 | P a g e

o SR 194 to Almota is classified as T-3. o This roadway, grade, has been identified as a significant concern by regional stakeholders.  Port of Whitman/Garfield – Central Ferry Barge Loading. o No indication provided on state maps of barge loading facility at Central Ferry. o SR 127 is a T-3, but no indication as a roadway of significance.  All PCC rail loading facilities o 17 PCC rail loading facilities may be found on the PCC system within the Palouse RTPO counties. Only 2-3 may be considered to be tangent to an economic corridor (Hooper, Rosalia, Colfax).

Major concerns for the Palouse RTPO should stem from the figures below in that the agricultural processing facilities identified by the state (Apple, Beef, Dairy, and Potato) are effectively irrelevant to the region. Additionally, the figures fail to identify that wheat is the third highest commodity in value, at $1.014 billion dollars. This places the industry behind only Apples at $2.189 billion, and Milk at $1.299 billion.61 Though out produced by value, the tonnage of wheat produced in Washington surpasses that of Apples and Milk. Washington produces roughly one-third more wheat by tonnage, than apples.

61 Washington State Department of Agriculture. http://agr.wa.gov/AgInWa/docs/126-CropMap2015-ForCopier.pdf 90 | P a g e

Figure 46. Truck Freight Economic Corridors in the Palouse RTPO

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Figure 47. Truck Freight Economic Corridors in Lewis Clark Valley MPO

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Findings: A Practical Design Approach

While wheat production and movement is not the sole activity taking place in the region, it is a dominant force. Reviewing the locality maps throughout this document, it becomes obvious that the majority of freight dependent or generating firms within many communities are agriculturally based. This thus allows agricultural freight movement to be a significant indicator of system wide movement. The dispersed nature of wheat production and transportation generates difficulties in amassing individual roadway tonnage to meet the top economic corridor determinants established by WSDOT. This dispersion is found not only in the production regions, but also in its intermodal connectivity points at more than 25 rail loading or barge loading facilities found throughout the region. While limited consolidation of facilities does occur, the wheat industry likely experiences less of it due to the high relative expense of truck transport as compared to other modes. With these limitations in mind moving forward, regional and state planners may take advantage of established Practical Design approaches to encourage efficient, effective, and sustainable decisions and investments. WSDOT identifies Practical Design as permitting;

 Maximum results with 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.

While all the above items should serve as valuable tools for planners, the phased solutions approach may be the most valuable in relation to intermodal needs of the region and its major agricultural industries on both the input and output sides. This phased approached allows and encourages the development of infrastructure investment plans that take a system wide approach to identify those links and nodes within a system that are most limiting and then moving up the chain of limitations. Through the course of data collection and stakeholder interviews for this report, we have identified a set of potential projects and further analyses that will aid in seeking

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opportunities to enhance the efficiency of flow and safety of freight movement throughout the region (Table 16). The list does not seek to prioritize the included items, nor does it suggest that those not included are not significant. Rather, the items contained in the table highlight those issues identified by stakeholders as most pressing or concerning.

Many of the items contained in Table 16 involve planning or further study of various components of the transportation system within the region. The role of the Palouse RTPO in these activities should be in the support of impacted entities or users in building complete and cohesive justifications for investment. To better enable the Palouse RTPO to perform this role, they would be well served to collaborate with the state to improve the consideration of regional roadways and intermodal assets in the identified State Freight Economic corridors; this includes more inclusive considerations of significant impact locations and a more geographically relevant consideration of connector routes. The current 5 mile designation for rural freight hubs connecting to T-1 and T-2 routes is severely limited in a region like southeast Washington and the expanse over which production occurs. Such status elevation will broaden the opportunities thus available to the region’s stakeholders.

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Table 16. Identified Freight Flow and Safety Improvement Projects Cities, Counties or Ports Supporting Project Description Impacted Information City of Clarkston, Asotin "Blue Bridge" efficacy and interchange study See Figure 7 County, Port of Clarkston City of Clarkston, Asotin Clarkston signal synchronization evaluation See Figure 7 County, Port of Clarkston Detailed Pullman truck flow analysis (Terre City of Pullman, Whitman See Figure 19 View Dr, and Grand Ave/Paradise St Emphasis) County, Port of Whitman City of Colfax, Whitman US 195 and SR 26 intersection realignment See Figure 8 County US 195 and SR 272 intersection evaluation for City of Colfax, Whitman See Figure 8 safety and efficacy County US 195 and South Main St Intersection traffic City of Colfax, Whitman See Figure 8 flow evaluation County SR 272 Mill St to Hauser Heights roadway City of Colfax, Whitman See Figure 8 Improvement Project County WSDOT, City of Palouse, WIM Railroad Benefit Cost Analysis See Figure 34, Table 8 Whitman County P&L Railroad Bridge replacement and WSDOT, Whitman County See Figure 34, Table 8 rehabilitation P&L/WIM track rehabilitation WSDOT Whitman County See Figure 34, Table 8 Palouse intermodal connectivity assessment City of Palouse See Figure 17 (accessibility of rail loading facility) Palouse Bridge Street assessment for large City of Palouse See Figure 17 truck/farm implement capability Port of Columbia, City of Port of Columbia Railroad Benefit Cost Analysis See Figure 33, Table 7 Dayton, Columbia County City of Dayton, City of US-12 (Emphasis in Dayton and Waitsburg) Waitsburg, Columbia See Figure 10 oversize/over-length load compatibility study County Highway Bridge Replacement/Rehabilitation Program (with coordinated county prioritization) All Counties CRAB Data Library Whitman - 56 Bridges; Asotin 2 Bridges; Columbia 10 Bridges; Garfield 6 Bridges Seasonal road closure reduction program All Counties (increasing Inventory of all-weather roads) Almota grade (SR 194) structural and safety Whitman County, Port of Figure 28 improvement Whitman

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Appendix

Table A-1. Short Duration Count Events

Town Highway MP Start Date End Date Town Highway MP Start Date End Date 22.8 27.7 06/24/13 06/28/13 Lamont/St John SR 23 4.4 12.4 08/26/13 08/30/13 Anatone SR 129 05/12/14 05/16/14 4.4 15.0 St John SR 23 06/24/13 06/28/13 0.0 15.0 36.6 40.6 06/23/14 06/27/14 Asotin SR 129 05/12/14 05/16/14 35.7 SR 27 36.9 Oakesdale 04/21/14 04/25/14 15.5 04/14/14 04/18/14 36.9 Colton US 195 8.8 04/18/11 04/22/11 SR 271 0.0 04/21/14 04/25/14 US 12 422.0 09/29/14 10/03/14 SR 6 19.2 39.2 05/12/14 05/16/14 14.9 SR 129 SR 272 Clarkston 40.8 09/15/14 09/18/14 Palouse 15.5 04/21/14 04/25/14 SR 27 15.1 SR 128 0.5 09/22/14 09/26/14 SR 27 15.3 125.2 9.1 10/27/14 10/31/14 10/27/14 10/31/14 125.3 0.0 SR 26 133.1 390.8 08/26/13 08/29/13 Colfax 133.4 Pomeroy SR 127 422.0 09/29/14 10/03/14 28.5 04/21/14 04/25/14 402.1 US 195 42.8 404.0 08/26/13 08/30/13 38.6 405.2 367.6 22.8 04/21/15 04/25/14 US 195 366.6 15.5 4/14/214 04/18/14 04/30/12 05/04/12 Pullman US 12 359.6 SR 194 21.0 4/14/214 04/18/14 Dayton 372.7 SR 27 2.2 04/21/15 04/25/14 382.3 66.2 08/08/11 08/12/11 SR 261 0.0 US 195 62.9 Rosalia 09/09/13 09/13/13 27.0 04/21/14 04/25/14 60.0 Garfield SR 27 20.2 04/21/15 04/25/15 SR 271 8.4 102.0 51.7 SR 27 102.7 48.5 SR 26 Tekoa 06/23/14 06/27/14 Lacrosse 116.9 10/27/14 10/31/14 0.0 SR 274 117.0 1.9 SR 127 27.1 0.1 Uniontown US 195 04/14/14 04/18/14 Lamont/St John SR 23 35.5 06/24/13 06/28/13 0.0

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