PNWER RIA Celebrates Two Years: Lessons Learned & Looking Forward
Transportation infrastructure is our nation’s connective tissue, facilitating the movement and connections between our supply chains, communities and economies. The U.S. government has made significant investments in our nation’s transportation systems through the passing of the Bipartisan Infrastructure Law in 2021, putting $1.2 trillion into communities for much needed projects. Even with this historic investment, the grant funding now available is not enough to fully fund the projects needed to keep communities safe and connected.
The U.S. Department of Transportation (USDOT) Build America Bureau (Bureau) helps address this issue through the Transportation Infrastructure and Financing Innovation Act (TIFIA) and Railroad Rehabilitation and Improvement Financing (RRIF) loan programs, which can help project sponsors access gap financing so a project can get started. Building on a program first established in the FAST Act (2015), the Bureau also runs the Regional Infrastructure Accelerator (RIA) demonstration program, which enables organizations like Pacific Northwest Economic Region (PNWER) to help communities and jurisdictions accelerate their projects by providing technical assistance and support.
Our Story
PNWER has over 30 years of experience convening stakeholders and leading policy discussions in the bi-national Pacific Northwest, focusing on nonpartisan policy areas — including transportation — to identify regional solutions to global challenges. With a governing board of state and provincial legislators, PNWER is uniquely positioned to understand the key issues across the Pacific Northwest and identify other communities that have best practices others can learn from. This background in convening and connecting made PNWER well positioned to apply for the first round of RIA demonstration program funding in 2021. One of five initial awardees, PNWER is guided by its mission to enable the Pacific Northwest region of Alaska, Idaho, Montana, Oregon and Washington to secure investment in necessary infrastructure improvements to increase economic competitiveness on the national stage.
Over the past two years, PNWER nurtured its RIA program into a well-utilized and knowledgeable resource for communities and project sponsors throughout the region. As the RIA team gears up for its second consecutive grant cycle — bolstered by an additional $2 million USDOT grant — we reflect over the accomplishments and lessons learned over a successful two years of work. Continue reading to learn more about what we’ve been up to and where we’re going next!
Early Achievements
For the past two years, the PNWER RIA team has been busy learning, listening and evolving to best serve Pacific Northwest communities pursuing innovative financing for their infrastructure projects. Upon its launch, which was announced formally at PNWER’S 31st Annual Summit in Calgary, Alberta, the PNWER RIA set out to address two of our region’s acute challenges: reducing carbon emissions at the ports of Seattle and Tacoma, and identifying funding for a necessary highway/rail grade separation project in Spokane Valley, WA. Key milestones of this work include:
Assisting Spokane Valley in securing funding for its highway/rail grade separation project
In the City of Spokane Valley, the Pines Road/BNSF Railway crossing sees over 65 freight trains and two passenger trains daily, resulting in over 31,000 vehicle hours of delay a year. To address these delays and safety concerns associated with at-grade rail crossings, the city sought funding to support a grade separation, which when completed, will result in improved traffic and rail flow, improved emergency vehicle response, increased safety and a new trailhead for the Centennial Trail.
With the Pines Road grade separation identified as one of its priority projects, the PNWER RIA connected with city officials and project managers in early 2022 to explore eligibility and feasibility of utilizing RRIF financing to fund the project. The RIA team provided technical assistance to the city’s project team, helped raise the project’s profile by underscoring the complexity of road/rail conflicts, and increased the project’s position on priority funding lists. Work contributed by the PNWER RIA team ultimately helped position the city to earn a $22 million Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant from the USDOT.
“This project design serves as a national model for blending multimodal improvements into a a grade separation project,”
-Bruce Agnew, PNWER RIA Director
Ongoing work
In early 2024, PNWER was awarded a no-cost extension from the USDOT, enabling the RIA team to complete work on projects started in its first grant cycle while simultaneously executing its second. The City of Spokane Valley’s $48 million grade separation project is only 90% funded; an additional $5 million is needed to close this gap. As part of its extension work, the PNWER RIA will collaborate with the city to identify an additional funding source to ensure the important grade separation project is fully funded and can begin a timely construction process.
PNWER RIA webinar: how RRIF Express can fund rail projects
In September 2022, the PNWER RIA hosted its first informational webinar to inform project sponsors and communities about financing opportunities through the RRIF program. This program, pronounced “riff”, is offered through the USDOT, and although there is $35 billion authorized for the RRIF loan program, only a small percentage of loans have been used. With new leadership at the Bureau came several RRIF program updates, including through a new loan option called RRIF Express — a financing mechanism designed for short line and regional railroads. The RIA welcomed several industry experts to discuss RRIF financing opportunities and ways in which communities and project sponsors can leverage these often underutilized financing mechanisms.
Among webinar speakers were Andrew Johnsen, CEO of Columbia Strategic Consulting Group, and Will Resch, project development lead of the RRIF program at the USDOT Build America Bureau. Testimonials shared by RRIF recipients explained lessons learned and best practices in pursuing RRIF financing. A presentation from the webinar is available on the RIA website to serve as a resource to communities interested in RRIF financing. Learn more here.
PNWER RIA event: paying for Washington’s transition to zero-emission commercial vehicles
In April 2023, the PNWER RIA hosted an event in Seattle to address the challenges of transitioning to zero-emission vehicles in the commercial transportation industry. This in-person event built off of our ongoing work to decarbonize drayage vehicles servicing the Northwest Seaport Alliance (NWSA), which includes the ports of Seattle and Tacoma. Outreach and engagement with the NWSA and other stakeholders enabled the PNWER RIA team to become subject-matter experts on the zero-emission commercial vehicle landscape in the Pacific Northwest. Through our work, the RIA team identified three main challenges to decarbonizing the MHD vehicle sector, which includes class 8 tractor trailer drayage vehicles:
Affordability & accessibility
Zero-emission refueling infrastructure availability
Workforce development & reskilling
The April event explored potential solutions to these challenges, and fostered discourse on the then-recent creation of a medium- and heavy-duty zero-emission vehicle incentive fund that came out of the 2023 Washington legislative session. A wrap-up of this event can be found here.
PNWER & CALSTART design Washington’s incentive program for zero-emission commercial vehicles
Building off of past work and demonstrated expertise in the zero-emission commercial vehicle space, PNWER was selected by CALSTART to conduct stakeholder outreach for Washington’s medium- and heavy-duty zero-emission vehicle incentive program design, an effort directed by the Washington Legislature Joint Transportation Committee (JTC). In order to develop a well-informed incentive program, the PNWER team set out to engage a diverse group of Washington business owners and vehicle operators. In-depth consultation with policymakers, stakeholders and industry leaders from 24 sectors enabled the incentive design team to develop a point-of-sale voucher incentive program that will help Washington businesses accelerate their transition to zero-emission technologies by bridging the funding gap between medium- and heavy-duty diesel vehicles and their zero-emission counterparts.
The final incentive design strategy, which can be viewed here, was incorporated and funded in the 2024 Washington supplemental transportation budget, which allocated $110 million for program. Learn more about the RIA’s involvement in this study here.
Ongoing work
The PNWER RIA will continue its work towards drayage decarbonization through the remainder of 2024. Goals of this work are focused on identifying eligible candidates for TIFIA and other innovative financing mechanisms to support the acquisition and development of zero-emission equipment and charging infrastructure in or around the ports of Seattle and Tacoma. Additionally, the RIA team will continue its involvement in the NWSA’s efforts to develop a zero-emission drayage vehicle adoption roadmap to improve air quality at the northwest seaports.
Expanding the Build Northwest Center of Excellence
The Build Northwest Center of Excellence (Build Northwest) serves as the platform for assistance, outreach and education activities within the PNWER RIA program. Two years of technical assistance and community engagement has positioned the RIA team to understand the challenges and opportunities that the Bureau’s TIFIA and RRIF credit programs create for communities. This field work will inform a report for Congress that outlines suggested improvements to the federal financing programs so they can better serve project sponsors.
The RIA team is diligently developing a robust Build Northwest Advisory Council, which will include transportation committee members from each of the five PNWER states, in addition to private sector leaders in the engineering, finance, energy and business industries. Council activities, which are expected to begin in May, include providing strategic guidance to the RIA program, as well as incubating future projects that can benefit from RIA assistance.
Maintaining the Momentum: What’s Next for the PNWER RIA
The PNWER RIA is a one-of-a-kind convener, resource and thought leader for communities, states, jurisdictions and Tribal nations throughout the Pacific Northwest. In October 2023, PNWER was selected to receive a second consecutive grant from the USDOT to continue its work as an infrastructure accelerator. Now one of 24 accelerators throughout the nation, PNWER remains the only multi-state, non-government accelerator in the Bureau-led demonstration program, setting a precedent for how a multi-state lens towards infrastructure investments can result in improved supply chains, community connectivity and regional resilience.
“This is an exciting new chapter for our team and for the region. Our new set of projects reflect what we’ve learned as an RIA and address the gaps we see as communities work to use BIL funds for much-needed infrastructure projects,”
-Betz Mayer, PNWER RIA Assistant Director
With its second grant cycle, PNWER is expanding its presence – which originated in Washington – to address projects in all five PNWER states. The second iteration of the RIA widens PNWER’s focus to four main program areas:
Build Northwest Center of Excellence: A subprogram of the RIA that works to facilitate the development of infrastructure projects by empowering communities across the Pacific Northwest to identify, understand and navigate complex federal financing opportunities and matching programs. Build Northwest will serve as the education arm of the PNWER RIA and will host several workshops for project sponsors, communities and policymakers.
High Performance Rail: The PNWER RIA’s approach to rail is to identify, evaluate and pursue multiple improvement projects that, when bundled, will significantly reduce passenger train delays and improve freight velocity along major northwest rail corridors. Focus areas include an enhanced passenger rail network for the region, accelerated highway/rail grade separation project delivery and joint investments in transload and intermodal rail facilities to ensure our region’s products can move swiftly to global markets.
Zero-Emission Commercial Refueling Corridors: The zero-emission commercial refueling corridor initiative plans for refueling infrastructure that will serve medium- and heavy-duty zero-emission vehicles. This approach is technology neutral, considering battery electric, hydrogen fuel cell and other alternative fuel technologies. The PNWER RIA will work with Northwest Tribal nations, legislators and industry leaders to accelerate the integration of transportation networks and clean energy facilities to support the decarbonization of our region’s commercial transportation sector.
Critical Connections: This initiative bolsters the upgrade and enhancement of connective infrastructure, such as bridges, ports and transit systems that provide vital access to communities – especially those in rural and Tribal jurisdictions. Through the provision of technical assistance, the PNWER RIA identifies and evaluates financing solutions for localized projects that can enhance our region’s corridors and gateways. While localized, these projects yield substantial economic impact to their communities and the broader Pacific Northwest region.
“We’ve learned a lot over the past two years as an RIA. It’s exciting to see this program grow, take on new challenges and help more project sponsors throughout the Pacific Northwest,”
-Betz Mayer
As the PNWER RIA team embarks on its next chapter, we’re grateful for our consultants, team members and project partners who help us achieve our goal of building a more prosperous Pacific Northwest. PNWER will commence work on its new program portfolio in April, and will be completing work on its first grant through the remainder of this year.
