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May 3, 2015

To: Interested parties From: Claude Sakr

Project Manager Cowlitz County

Subject: Columbia Riverkeeper ‘s “State highway bill includes public subsidies for coal exports”

Document

Columbia Riverkeeper recently issued a document titled “State highway bill includes public subsidies for coal exports” (Attachment #1 to this memorandum) about on-going legislative discussion on state transportation funding and the allocation of $85 million for a “rail crossing project in Cowlitz County”. I have read the document and am disappointed to find it full of mischaracterization and omission of facts and key findings documented in several SR 432 Corridor studies. Listed below are some of the mischaracterizations (in italics) followed by our response to each.

! “The state department of transportation has justified the State Route 432 project based on forecasts of massive increases in train traffic”.

This statement is a mischaracterization of the SR432 Grade Crossing Project’s primary objective: to address highway infrastructure deficiencies, recognized as early as 1968, that present barriers to freight truck mobility. The continued growth in freight truck traffic is degrading highway traffic operations in the SR 432 corridor, in general, and at the SR 432/SR 433 intersection, in particular, causing significant congestion, delays and safety issues on this regionally significant state highway. The growth in freight truck traffic and highway infrastructure deficiencies have been clearly documented in many studies several of which are discussed later in this memorandum.

! “At present, the only known source of increased traffic served by the project, according to Cowlitz County projections2,

is the highly controversial Millennium Bulk Terminals, a speculative coal export

terminal project that has been in the planning phase since 2010”.

The author of this statement cites the Final SR 432 Rail Traffic Data Summary (June, 2013) report as the reference, but omits to state that this report, prepared as part of the 2014: SR 432 RAIL REALIGNMENT AND HIGHWAY IMPROVEMENT STUDY, only speaks to existing and future rail traffic in the SR 432 corridor. Most importantly: the author mischaracterizes the primary driver behind the SR432 Grade Crossing Project - the increase in highway truck traffic - as being an increase in rail traffic. He also intentionally omits the highway traffic analysis and the highway safety assessment performed as part of the 2014 study and several prior studies that repeatedly identified highway

SR 432 !GRADE CROSSING PROJECT !

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deficiencies and quantified the effect of truck traffic growth on traffic operations in the SR 432 Corridor, in general, and at the SR 432/SR 433 intersection, in particular. Consistent findings: Truck traffic will increase and a grade separation is needed at the SR 432/SR 433 intersection to meet the increase in truck traffic, increases in rail traffic will merely compound traffic delays.

Recent studies and related key findings include:!

2014: SR 432 RAIL REALIGNMENT AND HIGHWAY IMPROVEMENT STUDY

" The SR 432/SR 433 intersection has the highest number of reported accident crashes compared to all other study intersections in the SR 432 corridor.

" A large percentage of existing vehicles are heavy trucks.!! " The intersection will experience rapid truck growth prior to the

2035-year planning horizon.

" Traffic operations at the SR 432/SR 433 intersection will degrade by year 2035 due to growth in truck traffic. Left turn traffic demand will fill the capacity of this intersection leading to long queues and delays, with vehicles waiting through more than one green cycle to clear the intersection.

" Long-term improvements - A grade separation is needed at the SR 432/SR 433 intersection.!

2009: SR 432 REALIGNMENT FEASIBILITY STUDY " Truck traffic volumes will grow by 60% from base year (2007) to planning year (2030). " Highway traffic operations will degrade by 2030 - traffic demand almost fills the capacity of

the SR 432/SR 433 intersection; traffic queues of 500 feet forming at each approach. " Short-term improvements - Add a 2nd left turn lane and signal modifications. " Long-term improvements - A grade separation is needed at the SR 432/SR 433

intersection to maintain an acceptable level of service before 2030, with or without unit trains.

2001: SR 432 ROUTE DEVELOPMENT PLAN

" WSDOT identified the SR 432/SR 433 intersection as a High Accident Location " Left turn movements and southbound traffic demand in 2017 will exceed the capacity of the

intersection causing long queues and delays; most vehicles need to wait through more than one green cycle to clear the intersection.

" Short-term improvements - Lengthen westbound and eastbound left-turn pockets at this intersection to accommodate higher volume of traffic; Add left-turn lane channelization on SR 432 between Industrial Way and SR 433; traffic signal progression enhancements.

" Long-term improvement - A grade separation is needed at the SR 432/SR 433 intersection.

! “Proponents of the SR 432 project argue that the project is not tied to coal export because project planning occurred prior to Millennium’s proposal. Even before Millennium, however, the entire justification of the SR 432 project was a massive increase in unit trains. In 2007, Gerald Smith, the

SR 432 Corridor – Total Vehicles and Truck Volumes (over three days in March 2013)

Location Existing 2013

Total Vehicles Total Trucks Total Trucks

1 SR 432 (Tennant Way) East of 3rd Avenue 92,720 26,730 29%

2 15th Avenue North of Tennant Way 47,990 5,790 12% 3 SR 433 - North of SR 432 38,520 5,880 15% 4 SR 433 - South of SR 432 54,670 11,730 21%

5 SR 432 (3rd Avenue) South of Tennant Way 53,390 21,110 40%

6 SR 432 - West of NORPAC Entrance 27,200 6,290 23% 7 SR 432 - West of Weyerhaeuser Entrance 29,700 6,820 23%

8 SR 432 - West of Columbia Boulevard 50,050 14,410 29%

9 Industrial Way East of SR 432 (3rd Avenue) 4,540 2,370 52%

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SR 432 /SR 433 Intersection – Total Vehicles and Truck Volumes (over three days in March 2013)

Location Existing 2013

Total Vehicles

Total Trucks

Total Trucks

SR 433 - North of SR 432 38,520 5,880 15%

SR 433 - South of SR 432 54,670 11,730 21%

SR 432 - West of SR 433 29,700 6,820 23%

SR 432 – East of SR 433 50,050 14,410 29%

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lead project consultant with David Evans and Associates, stated:

The need for this project depends nearly entirely on the beginning of unit train service west of Oregon Way; stakeholders indicate three to fives years. If unit train service does not materialize, then this project will not be needed7.

The Columbia Riverkeeper author of this statement cites the SR 432 Realignment Feasibility Study, Stakeholder Committee Meeting #3, December 4, 2007 as the reference (Attachment #2 to this memorandum). This statement grossly mischaracterizes the 2007 quote attributed to Mr. Gerald Smith. Following below is a verbatim excerpt from the meeting minutes including the 2007 quote (in bold italic):

Rail Findings and Recommendations

Gerry than (sic) described the rail improvements needed, improvements assumed on the mainline, and the order of magnitude costs. Rail improvements needed along with associated conceptual costs are as follows:

• Extend the Industrial Rail Corridor westerly across Oregon Way (new connection to Reynolds Lead) - Conceptual Cost $4,700,000. The need for this project depends nearly entirely on the beginning of unit train service west of Oregon Way; stakeholders indicate three to fives years. If unit train service does not materialize, then this project will not be needed. Minor improvements to the existing leads and switching yards will handle future carload traffic and switching.

A careful read of the meeting minutes excerpt clearly shows that Mr. Gerald Smith was speaking about rail improvements rather than highway improvements. Specifically, the project that Mr. Gerald Smith was speaking about is extending the Industrial Rail Corridor: ["Extend the Industrial Rail Corridor westerly across Oregon Way....”] Furthermore, the Columbia Riverkeeper author intentionally omits the section in the same meeting minutes titled: “Highway Findings, Recommendations and Modeling Discussion” (Attachment #2, p. 4), where Mr. Neal Christensen, with David Evans and Associates, speaks about recommended short term and long-term highway improvements at the SR 432/SR 433 intersection. Specifically, the meeting minutes (Attachment #2, p. 5 & 6) document that Mr. Neal Christensen presented the following recommendations that address highway deficiencies unrelated to rail:

Highway Findings, Recommendations and Modeling Discussion

Short Term Highway Improvements (within 10 years)

o Widening and Signal Modifications at SR432/SR433 Intersection Conceptual Cost $3.5 million Intersection capacity improvements are needed at this location. By providing an additional left turn lane for the westbound to southbound movement and by extending the center left turn lane, the capacity at this intersection will be improved. These improvements will be considered an interim solution until the intersection is improved as described under the Long-Term Improvement section.

Long Term Highway Improvements (within 20 years)

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o Single Point Urban Interchange (SPUI) at SR432/SR433 Intersection Conceptual Cost $70 million (ROW not included) Grade separation is needed in the future between the proposed rail line and the traffic at this intersection. A SPUI at this location has the least impact to the surrounding area, is the most cost effective alternative and the intersection operates at an acceptable level in the 2030 year.

The single-point urban interchange at SR 432/SR 433 will be needed to maintain an acceptable level of service before 2030 with or without unit trains.

It is important to highlight the fact that these short and long-term highway improvements, discussed by Mr. Neal Christensen and captured in the meeting minutes (Attachment #2, p. 5 & 6), were the result of a comprehensive highway traffic operations analysis documented in the main study document: 2009: SR 432 REALIGNMENT FEASIBILITY STUDY, referenced earlier in this memorandum. For emphasis, key findings, unrelated to rail, from the 2009 study that were the drivers for Mr. Neal’s recommendations of short and long-term highway improvements are:

" Truck traffic volumes will grow by 60% from base year (2007) to planning year (2030). " Highway traffic operations will degrade by 2030 - traffic demand almost fills the capacity

of the SR 432/SR 433 intersection; traffic queues of 500 feet forming at each approach.

Cowlitz County, cities of Longview and Kelso, Port of Longview, the Cowlitz Wahkiakum Council of Governments and other regional bodies are currently collaborating to build on these Corridor 432 studies by developing a grade separated solution that addresses well documented highway congestion and safety issues. These are real issues that need to be addressed irrespective of the outcome of the on-going discussion about coal export. We want to make it clear: this project was not a coal project in 1968 or in 2009, and is not a coal project now. In closure, The SR 432 Grade Crossing Project reduces highway congestion to improve the economic competitiveness of existing large and small businesses, through reliable and timely freight truck service, in turn keeping our business base financially healthy and vibrant. Washington State relies on this corridor to move Washington’s goods to markets around the world and protect jobs in communities across the state. The SR 432 Grade Crossing Project enhances our regional and national economic competitiveness. Please feel free to contact me at (360) 577-3030 ext. 6542 or e-mail me at: sakrc@co.cowlitz.wa.us if you have any questions. CS:ER Attachment #1 – Columbia Riverkeeper’s “State highway bill includes public subsidies for coal exports”

document Attachment #2 - SR 432 Realignment Feasibility Study, Stakeholder Committee Meeting #3, December 4, 2007

!!!ATTACHMENTS!!

Attachment #1 - Columbia Riverkeeper ’s “State highway bill includes public subsidies for coal exports” document

Attachment #2 - SR 432 Realignment Feasibility Study, Stakeholder Committee Meeting #3, December 4, 2007

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State highway bill includes public subsidies for coal exports The Washington state legislature is currently debating a transportation bill that would allocate $85 million for a rail crossing project in Cowlitz County, Washington.1 The state department of transportation has justified the State Route 432 project based on forecasts of massive increases in train traffic. At present, the only known source of increased traffic served by the project, according to Cowlitz County projections,2 is the highly controversial Millennium Bulk Terminals, a speculative coal export terminal project that has been in the planning phase since 2010. The Millennium terminal has generated considerable opposition among tribes and local communities, in large part because it would boost coal train traffic. There is no guarantee that the project will receive its required permits; and if it does, there is no guarantee that the project will secure the nearly $1 billion in capital investments it will require. Funding for the Oregon Way rail crossing raises significant policy issues: Does it make sense for the public to invest in a rail crossing for rail traffic that may never materialize? And even if the traffic does materialize, should the public really spend scarce transportation resources subsidizing a coal export terminal? The $85 Million Overpass The proposed SR 432 Rail Realignment Project would build an overpass at Oregon Way and Industrial Way over a railway that serves just two locations: Millennium’s coal export terminal and the currently undeveloped Barlow Point site.

Figure 1: Map of the rail crossings and key properties related to SR 432.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 The Daily News, State Senate seeks $85 million for Longview’s Oregon Way / SR 432 project, (February 14, 2015) (available online at http://tdn.com/news/local/state-senate-seeks-million-for-longview-s-oregon-way-sr/article_d05aabcc-b4c6-11e4-924f-3f5a1a9e24e2.html. 2 Final SR 432 Rail Traffic Data Summary, June 2013 at 3 to 5 (data showing 2035 projections)

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According to Cowlitz County, this rail line will experience rapid growth prior to 2035.3 But by the county’s projections, nearly three-quarters4 of the projected rail growth will come from Millennium Bulk Terminals.5 Train destination Trains per five days past

Oregon Way intersection, 2035 projection

Percent of new rail traffic in 2035

Millennium Bulk Terminals 62 74% Barlow Point 22 26% Other facilities 0 0%

Figure 2. By Cowlitz County’s projections, Millennium would be responsible for 74 percent of all rail cars moving west of Oregon Way. Furthermore, all growth in rail traffic to Barlow Point is purely speculative. The site is currently a greenfield with no tenants, no rail, and no dock.6 The Port certainly wants to develop Barlow Point, yet the estimated train projections are wholly unfounded. The Port recently hired a contractor to create a Master Plan for Barlow Point. The initial presentations include various concepts, including an auto import facility, break-bulk cargo, dry foodstuffs, and wind turbines, none of which require a large number of unit trains. Plus it is difficult to construct new docks on the Columbia River, especially in protected critical habitat for endangered salmon and eulachon spawning grounds. In short, even if Barlow Point is constructed and operates at full projected train volume, the Millennium coal terminal would be the source of at least 74 percent, and perhaps a far greater share, of forecasted new train traffic. Today, the only known source of new train traffic west of Oregon Way is the Millennium coal terminal. Proponents of the SR 432 project argue that the project is not tied to coal export because project planning occurred prior to Millennium’s proposal. Even before Millennium, however, the entire justification of the SR 432 project was a massive increase in unit trains. In 2007, Gerald Smith, the lead project consultant with David Evans and Associates, stated:

The need for this project depends nearly entirely on the beginning of unit train service west of Oregon Way; stakeholders indicate three to fives years. If unit train service does not materialize, then this project will not be needed.7

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!3 http://www.sr432corridor.org/pdfs/SR_432_FINAL_Concept_Development_Report_BodyOnly.pdf at 3. The tables show projections for five days. Each day is slightly different. 4 The county’s projections assume an average of twelve trains per day serving Millennium. If anything, this is a conservative estimate of how Millennium will affect rail traffic. At full capacity the coal export terminal would require 16 to 18 trains per day, suggesting that up to 90% percent of all new rail traffic would be attributable to Millennium. 5 Final SR 432 Rail Traffic Data Summary, June 2013 at 3 to 5 (data showing 2035 projections) 6 See http://www.portoflongview.com/AboutThePort/PortPlanning/BarlowPointMasterPlan.aspx 7 SR 432 Realignment Feasibility Study, Stakeholder Committee Meeting #3, December 4, 2007 at 3. Available at http://www.wsdot.wa.gov/NR/rdonlyres/980496E4-8617-400A-875A-7909D33D75C0/0/StakeholderMeetingSummary120407.pdf.

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Unit train traffic has not materialized west of Oregon Way, and the only projected increase is due to the Millennium coal export terminal (74% of the projected trains) and the undeveloped Barlow Point (26% of the projected trains). Without Millennium, the project is not needed. Why is this overpass so expensive? Building the overpass over the at-grade crossing at Oregon Way / Industrial Way requires a massive project that essentially lifts up a very busy intersection. In addition, the $85M expense includes building a large employee entrance overpass into the Weyerhaeuser mill. Weyerhaeuser has multiple entrance driveways with at-grade crossings. Currently, very few trains travel west from Weyerhaeuser so those driveways are rarely if ever blocked. However, Millennium’s coal export unit trains would block all the driveways at once so it is reasonable that Weyerhaeuser would want elevated access to its property. What is not reasonable is asking the State of Washington to pay for it when Millennium’s coal trains are the problem. Facts about Millennium The Millennium Bulk Terminal has been in planning stages since 2010—a time when rising coal demand from China had made coal exports seem quite lucrative. But Pacific Rim coal markets have been in freefall for nearly four years, creating financial turmoil for proponents of coal export schemes throughout the Pacific Rim. Millennium is a joint venture between Arch Coal, a major national coal mining company, and a small firm called Ambre Energy North America. Ambre’s financial struggles have been widely reported: facing bankruptcy and unable to find new investors, Ambre recently sold its North American coal operations to their main creditor, a private equity firm registered in the Cayman Islands.8 Arch Coal also faces severe financial headwinds: its stock has fallen 97 percent over the past four years, its debt has been downgraded to junk status, and the Wall Street Journal has reported that many Wall Street investors are now betting that the company will soon be forced to declare bankruptcy.9 Given the intense scale of Millennium’s proposed train traffic, the coal export terminal cannot proceed without the $85 million Oregon Way grade separation. The Daily News headline stated: Major traffic revisions pivotal to Longview coal terminal’s future.10 Mile-long coal trains would disrupt an incredibly busy and important roadway, as well as Weyerhaeuser’s mill entrances. A Cowlitz-Wahkiakum Council of Government’s 2008 study noted that increased unit train traffic “will result in dramatic degradation of highway traffic operations in the SR 432

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!8 See, e.g., http://www.oregonlive.com/environment/index.ssf/2013/12/5_key_takeaways_ about_financia.html; http://daily.sightline.org/2013/02/13/ambre-energy-caveat-investor/ 9!wsj.com/articles/hedge-funds-bet-on-coal-mining-failures-1416790137!10 The Longview Daily News, Major traffic revisions pivotal to Longview coal terminal’s future (March 10, 2012) (available online at http://tdn.com/news/local/major-traffic-revisions-pivotal-to-longview-coal-terminal-s-future/article_ccee1b08-6b32-11e1-bd64-0019bb2963f4.html) (stating, “Officials say the overpass and rail plan are vital to prevent massive traffic tie-ups at rail crossings, especially now that Millennium Bulk Terminals has plans for a 44 million ton coal export terminal west of Longview. The terminal would require 16 train trips, each a mile long, to pass through the Longview industrial corridor daily.”).

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Corridor.”11 The only identifiable reason to build the $85 million Oregon Way rail overpass is to accommodate a coal export project that, due both to permitting challenges and deteriorating finances, is highly uncertain. Which raises significant public policy questions: should the State of Washington subsidize infrastructure designed specifically to benefit speculative private-sector projects? And is it really a good idea for Washington’s taxpayers to subsidize coal exports? More information For more information, including the SR 432 study documents, please contact Brett VandenHeuvel, Executive Director, Columbia Riverkeeper at 503.348.2436 or bv@columbiariverkeeper.org.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!11 Washington State Department of Transportation & Cowlitz-Wahkiakum Council of Governments. SR 432 Realignment Feasibility Study. Final Technical Report. 2008, at 27.

SR 432 Realignment Feasibility Study - final Stakeholder Committee Meeting Summary Page 1

SR 432 Realignment Feasibility Study Stakeholder Committee

Meeting #3 Meeting Date: December 4, 2007 Location: Kelso Area Engineering Office, Kelso Washington

Attendees: Stakeholder Committee Attendees

Gerald Smith – David Evans and Associates, Inc. (DEA), Consultant Neal Christensen - DEA, Consultant Karyn Anderson – WSDOT Southwest Region, Planning Rosemary Siipola – CWCOG, Transportation Planner/Manager Jeff Barsness – WSDOT Southwest Region, Planning Office Lead Denys Tak – WSDOT Southwest Region, Kelso AE George Cress – Port of Longview, Planning and Development Gail Barber – Swanson Bark and Wood John Bean – City of Longview Dave Campbell – City of Longview

Rosemary Siipola, Cowlitz Wahkiakum Council of Governments (CWCOG) opened the meeting, thanked everyone for attending our third SR 432 Realignment Feasibility Study Stakeholder Committee meeting, began to briefly describe the study progress, introduced herself and Karyn Anderson with Washington State Department of Transportation (WSDOT) and then opened the floor for self-introductions.

Gerry Smith, David Evans & Associates (DEA) thanked everyone for coming and began to brief the stakeholder committee regarding the study progress and findings. Gerry reminded the group, that the Project Management Team (PMT) was reevaluating and updating the 2001 Route Development Plan recommendations. That DEA analyzed all recommended projects from 2001, changed as required by 2007 conditions and the feasibility of construction with the new geotechnical data made available. In addition to gathering data, public input provided by the Stakeholder Committee, Technical Advisory Committee and through Stakeholder Interviews was extremely beneficial in the analysis. Gerry explained that they learned through the Stakeholder Interviews, the stakeholder’s needs, how they shipped their products, and how they expected to grow.

This information, along with the commodity modeling, supplemented what was learned from the Stakeholder Interviews. Gerry explained that the commodity information for SR 432 Corridor, Rail Capacity Analysis and the recent University of Washington,

Welcome and Introductions

CWCOG, WSDOT

DEA Introductions,

The Study

SR 432 Realignment Feasibility Study - final Stakeholder Committee Meeting Summary Page 2

Forest Product Study, are all in agreement. The study findings have been confirmed with these other studies and gave the team a good understanding of how growth will occur in the study area. Gerry explained that these growth factors were then used in the modeling. The growth in carload rail traffic is 1 to 1.5 percent. Unit trains in the area are a big difference when compared to the 2001 RDP. The truck traffic is 2 % per year, normal growth in the area has been 1.5 for car traffic. As a result of stakeholder interviews, the truck traffic is 2% per year. A recent AASHTO document for reauthorization quotes FHWA traffic growth for the nation over the next 20 years at 2.07 % per year. Gerry reiterated that it was satisfying that the study findings seem to be confirmed by work done by the University of Washington and others.

Gerry described that the rail modeling and simulations were completed. That they used base case (2007 baseline), base case plus some growth, no improvements and 2030 with projected growth and improvements. The major findings learned during this analysis was that the stakeholder interviews pointed out one very important difference in the assumptions required in this study, versus those used in 2001. The type of industrial growth being planned today indicates a move toward rail for both in-bound and out-bound products, particularly an interest in unit train operations. In 2001, the expectation was more toward high tech industry served by trucks. Also during the 2001 study, there was little need seen to continue the Reynolds rail lead if the Alternate Rail Corridor was to be constructed. The Alternate Rail Corridor, now called the Industrial Rail Corridor, was constructed; but stakeholder plans today indicate the Reynolds lead needs to stay in place to handle switching and local freight, while the Industrial Rail Corridor needs to be extended west of Oregon Way to handle expected growth in unit trains. This change indicates a need to preserve the Reynolds lead, which then makes the by-pass, suggested in the 2001 study, much more difficult to build.

The by-pass option was to be located where the Reynolds lead is currently. With the rail in place there is little room for the by-pass between the rail and the diking district ditch. Locating the by-pass between the rail and the ditch would involve major impacts to both. The by-pass would need to be elevated for its full length and because of very unstable soils in that vicinity makes this option an extremely expensive improvement.

The team looked at the design of the viaduct/bypass option. Traffic planning indicates the by-pass would serve the purpose of diverting traffic, especially trucks, from the existing Industrial Way. However, the feasibility of construction because of planned industrial rail growth, right-of-way needs, difficult foundation soils, and high cost is questionable and therefore the bypass option is not recommended in this feasibility study.

Rail Findings and

Recommendations

SR 432 Realignment Feasibility Study - final Stakeholder Committee Meeting Summary Page 3

Gerry than described the rail improvements needed, improvements assumed on the mainline, and the order of magnitude costs. Rail improvements needed along with associated conceptual costs are as follows:

• Extend the Industrial Rail Corridor westerly across Oregon Way (new connection to Reynolds Lead) -Conceptual Cost $4,700,000

The need for this project depends nearly entirely on the beginning of unit train service west of Oregon Way; stakeholders indicate three to fives years. If unit train service does not materialize, then this project will not be needed. Minor improvements to the existing leads and switching yards will handle future carload traffic and switching.

• Longview Junction Bypass -Conceptual Cost $5,000,000

This project is also dependent on the growth of unit train traffic. Absent unit train traffic west of Oregon Way, this project will needed to serve unit train customers in the Port of Longview as volumes grow. The bypass or “runaround” allows traffic destined across the Cowlitz River from Longview Junction Yard if switching or pick-up/drop-off is not required.

• Parallel Industrial Rail Corridor Route (third track on IRC) Conceptual Cost $8,100,000

This project is also dependent on unit train increases, but carload traffic to the Port of Longview could create a need if the volumes are significant.

• Second Cowlitz River Bridge -Conceptual Cost $36,000,000

This project has been listed last, but the need is entirely driven by service demand in the SR 432 Corridor. Longview Switching Company operations sometimes block this bridge today. As rail service grows, this conflict will cause intolerable delays.

Gerry added that the main line rail improvement projects included in WSDOT’s long-range plan for intercity passenger rail are essential to freight rail service in the area. The projects are assumed to be constructed in the 2030 network. Only one of these projects has partial funding. The rest are unfunded. The projects are:

Ostrander to Winlock Third and Fourth Main Line Track Kelso-Martins’ Bluff Rail Project

Woodland Siding Woodland Crossover

Felida Third Main Line Felida Crossover

SR 432 Realignment Feasibility Study - final Stakeholder Committee Meeting Summary Page 4

George Cress, Port of Longview, asked if UP and BN were on board with these rail improvements. Gerry responded that BN understands the importance and has an economic interest. Rosemary commented the BP (Lee Stoltenow) is very interested and excited about Chinook Ventures as a huge customer. Gerry commented that at the Transportation Meeting, Lee commented that the information being gathered in this study will help them with their long range plans. Gerry turned this discussion over to Neal Christensen, with DEA, to describe the highway improvements and demonstrate the modeling. Neal explained that the modeling is 2007 existing traffic (using CWCOG existing model), 2007 with (1) peak hour unit train, 2030 without improvements and 2030 with improvements. Neal shared with the group Oregon Way and Industrial Way train 2030 model and the impacts to Oregon Way. Gerry pointed out the impact to the system and commented that there is a 10 – 11 minute delay from the blocking unit train and that you also need to think of the 40 minute delay time. George, Port of Longview, asked if the turbines that move at 10:00 and 3:00 could handle this. Gerry mentioned that during the confidential stakeholder interviews, some stakeholders were more forthcoming than others. The committee discussed that they will need to determine what’s going to occur West of Oregon Way and what local politics will allow, from a development perspective. Rosemary commented that she thinks they need to keep the momentum going and continue to look at everything from the rail, local, policy, state, and federal levels. Neal than shared the SR 432 California Way Realignment 2030 modeling. Gerry added that James Bobst with Pacific Fibre Products had commented the desire for a signal at the existing California Way/Columbus Blvd location as well. Gerry mentioned that the analysis did not warrant a signal at this location and due to WSDOT design standards of signal spacing, a signal at this location was not presently recommended. Neal than began to describe the improvement list that describes completed projects or projects underway and the prioritized short and long term list and order of magnitude costs. Completed or Current Projects

These projects from the 2001 RDP have been or soon will be completed. They are considered “existing conditions” for this study.

o Traffic Signal Progression along Industrial Way o I-5 SR 432/Talley Way Interchange o Alternate Rail Corridor (now called Industrial Rail Corridor)

Highway Findings, Recommendations

and Modeling Discussion

SR 432 Realignment Feasibility Study - final Stakeholder Committee Meeting Summary Page 5

Current projects on SR 432 that the City of Longview and WSDOT are currently undertaking are also considered “existing conditions.” They are:

o Double Left-turn Lane Westbound at SR 433 (Oregon Way) Note: this project is considered an existing condition in the traffic modeling, yet is listed as the first project recommended because although the project is well along in the design phase, all construction funds are not yet secured.

o Safety Improvements to SR 432 Eastbound On-ramp from 3rd Avenue

Short Term Highway Improvements (within 10 years)

o Widening and Signal Modifications at SR432/SR433 Intersection Conceptual Cost $3.5 million

Intersection capacity improvements are needed at this location. By providing an additional left turn lane for the westbound to southbound movement and by extending the center left turn lane, the capacity at this intersection will be improved. These improvements will be considered an interim solution until the intersection is improved as described under the Long-Term Improvement section.

o Realign California Way /Industrial Way Intersection

Conceptual Cost $1.2 million (ROW not included) Realigning California Way with the Industrial Way extension will improve safety operations and improve capacity through the intersection. The two signalized intersections will become one intersection, which will improve the sight distance to stopped vehicles and help to reduce rear-end collisions.

o Second WB Through Lane at Washington Way Intersection

Conceptual Cost $430,000 (ROW not included) Future volume increases at this intersection show improvements will be needed to keep this intersection flowing smoothly. Recommended improvements include adding a second west bound through/right turn lane.

o Access Management Improvements

Conceptual Cost - Varies with selected solution Access management along this corridor will help to improve safety issues and the flow of traffic along Industrial Way. Possible solutions include combining driveways, raised traffic separators, or left turn restrictions. As redevelopment occurs there will be potential to create alternative access locations to the properties.

o Second Left-turn Lane at SR432 Off-ramp to 3rd Ave.

Conceptual Cost $740,000 (ROW not included)

SR 432 Realignment Feasibility Study - final Stakeholder Committee Meeting Summary Page 6

Future volumes show the need for the addition of a second left turn lane at this location. The City of Longview has resolved the immediate capacity issues by modifying the signal timing at this location

o Realign Weyerhaeuser Entrance with Prudential Blvd. Conceptual Cost $1.9 million (ROW not included)

Realigning the Weyerhaeuser entrance with Prudential Boulevard will help to improve the intersection operations, improve access to and from Weyerhaeuser and will reduce conflicting movements due to off-set intersections.

Long Term Highway Improvements (within 20 years)

o Single Point Urban Interchange (SPUI) at SR432/SR433 Intersection

Conceptual Cost $70 million (ROW not included) Grade separation is needed in the future between the proposed rail line and

the traffic at this intersection. A SPUI at this location has the least impact to the surrounding area, is the most cost effective alternative and the intersection operates at an acceptable level in the 2030 year.

Neal shared with the committee the modeling of the Single Point Urban Interchange (SPUI) at Oregon and Industrial Way. And, that the impact to Oregon Way would be minimal. Gerry further explained to the group that the inter-relationship of the highway and rail projects in the corridor is heavily influenced by the assumption that unit train operations west of Oregon Way will materialize.

From the stakeholder interviews, the project team strongly believes unit train service to the west of Oregon Way will start within three to five years. Should unit train service not happen, the recommended highway projects are still needed, but the time period might be extended. The single-point urban interchange at SR 432/SR 433 will be needed to maintain an acceptable level of service before 2030 with or without unit trains. A single-point urban interchange that also grade separates the Reynolds lead will eliminate the rail/highway conflicts from switching and local service rail traffic at this location. The reality of unit train service depends on both the industrial need and the rail service providers’ willingness to provide that service. This decision will be driven by economic reality; if a profit can be realized, the service will be provided.

Rosemary added that the SPUI will impact access to businesses in the Starbuck’s vicinity. John Bean, City of Longview, mentioned access could be located in the back of the businesses. Dave Campbell, City of Longview, commented that if proposing a SPUI, considerations will need to be made to include Rainier/Oregon side. John added that in the technical report, the team should emphasize the recovery time versus just the delay time. He feels this will better describe the impact to the system and get everyone’s attention. John also asked if they had determined what the Oregon Way delay time and recovery time would be if only box car load trains operated on the Reynolds lead and if they could be prepared to answer that if asked. John thinks the team should make this clear in the technical report. Gerry and Neal seemed to think

SR 432 Realignment Feasibility Study - final Stakeholder Committee Meeting Summary Page 7

Wrap-up and PMT Staff Thanks Stakeholders for their participation

that some of this was slightly discussed in the rail improvement section but, they would review that section, add to the write-up if necessary and determine what the recovery time would be as well as the delay time.

Gerry than began to talk about political next steps, how we move ahead and potential funding sources. Gerry described the funding section of the Technical Report and how it will provide various funding ideas, such as development of an improvement district or transportation benefit district. Rosemary commented that a partnership will need to be formed with the private sector, which is true for every transportation project. Gerry Smith, and the other Project Management Team members (Neal Christensen, Rosemary Siipola and Karyn Anderson), thanked everyone for their on-going project involvement over this past year. Several committee members thanked the PMT for their efforts. Rosemary added that they need to remain committed to this effort. Gerry and Karyn reminded the group that the project website would be maintained. Karyn added that her goal was to maintain the website for approximately 1 year after the study is completed. Karyn shared that she’d like to distribute the Final Technical Report (hard copy) to each TAC and Stakeholder member, budget permitting. If not, the group was informed that the Final Technical Report, once completed, would be available electronically to download from the project website.