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Defense Community Compatibility Account 2022

Summary

The Defense Community Compatibility Account 2022 Legislative Report, issued November 1, 2022 by Growth Management Services in the Washington State Department of Commerce under Chapter 404, Laws of 2019 (SSB 5748). It states that the account supports infrastructure near military installations in Washington. The report describes the 15 submitted projects and the seven that have secured the required federal funding, and calls itself the second biennial report. Projects are listed in a prioritized order, from Project #1 JBLM North Clear Zone through Project #15 Airway Heights downtown project. An appendix contains a scoring scale in which 8-10 is Exceeds Minimum Requirements.

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Full text

 Defense Community
 Compatibility Account 2022
 Legislative Report



   Per Chapter 404, Laws of 2019 (SSB 5748)




                                              Nov. 1, 2022
       GROWTH MANAGEMENT
       SERVICES                               Report to the Legislature

                                              Director Lisa Brown
V3.1
Acknowledgments

Washington State Department of Commerce
Mark Barkley, assistant director,
Local Government Division

Dave Andersen, managing director,
Growth Management Services

Genevieve Dial, program manager




Washington State Department of Commerce

LOCAL GOVERNMENT DIVISION

1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525

www.commerce.wa.gov

For people with disabilities, this report is available
on request in other formats. To submit a request,
please call 360.725.4000 (TTY 360.586.0772)




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT
Table of Contents
Executive summary...................................................................................................................................... 2

Introduction ................................................................................................................................................. 6

Program development ................................................................................................................................. 7

Prioritized project list .................................................................................................................................. 9

Project #1: JBLM North Clear Zone ............................................................................................................ 12

Project #2: Whidbey Camano Trust Keystone Preserve ............................................................................... 13

Project #3: Lakewood water wells K-3, G-4................................................................................................. 14

Project #4: Lakewood Hipkins water well ................................................................................................... 15

Project #5: Lakewood Oakbrook 0-2 water well .......................................................................................... 16

Project #6: Lakewood Oakbrook 0-3 water well .......................................................................................... 17

Project #7: Fairchild REPI easement acquisition ......................................................................................... 18

Project #8: Oak Harbor early learning center .............................................................................................. 19

Project #9: Bremerton Quincy Square improvements .................................................................................. 20

Project #10: Oak Harbor school replacement.............................................................................................. 21

Project #11: Thurston County land conservation ........................................................................................ 22

Project #12: Green Mountain Compatibility Project .................................................................................... 23

Project #13: Airway Heights APZ backfill prevention .................................................................................. 24

Project #14: Everett Destination Retail waterfront ...................................................................................... 25

Project #15: Airway Heights downtown project ........................................................................................... 26

Appendix A: Background ............................................................................................................................ 27

Appendix B: Program outreach and methodology ....................................................................................... 36




  DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                                           1
Executive summary
Enacted in the 2019 legislative session, Chapter 404, Laws of 2019 (Substitute Senate Bill 5748) created the
Defense Community Compatibility Account (DCCA) to support necessary infrastructure near military
installations in Washington. The purpose of the account is to provide funds for compatible development
projects that affect the economy or environment, or provide quality of life opportunities for local communities
near military installations.

The DCCA presents the Legislature with a list of vetted, eligible projects to address compatibility issues across
the state. DCCA promotes land use compatibility between communities and military installations by providing
a consistent and programmatic framework for soliciting and evaluating civilian-military compatibility projects.
Project solicitation and evaluation helps identify and prioritize needs from numerous communities affected by
military activities. It also facilitates coordination between military installation commanders and local
government planners by providing funding for the implementation of compatible land use solutions.

Compatibility planning points to the shared challenges and opportunities experienced by communities and
military operations. Civilian and military activities affect each other, which can pose challenges to health,
safety, property values, quality of life, and national security. Increased density in military use areas can result in
the degradation of a base's ability to safely and efficiently function or adapt to mission changes, and
community residents can experience adverse impacts relating to military activity.1

This report includes a full description of all 15 submitted projects and the seven that have secured the required
federal funding, as well as next steps for Commerce program staff and recommendations to the Legislature to
continue supporting this program and enhancing land use capability on and near military bases. This is the
second biennial report. The first report is available on the Commerce website.

Project selection
Commerce staff reviewed projects that promote compatible development near military installations. Projects
were evaluated based on project scope, leveraged funds, need and priority, readiness to proceed, and
organizational capacity. Staff received and reviewed 15 projects, then prioritized them for the Legislature.

Eligible projects, per SSB 5748, include those related to:

    Acquisition of real property or real property interests to eliminate an existing incompatible use.
    Recovery or protection of endangered species dependent on military installation property for habitat.
    Affordable housing for enlisted military personnel and nonmilitary residents.
    Property retrofitting to increase compatibility with existing or future military operations.
    Economic diversification of nearby communities to reduce economic dependence on the military base.
    Job replacement in the event of a reduction of the military presence.
    Improvements or enhancement of the local economy, environment, or area quality of life.

Prioritized project list
The program's 2022 call for civilian-military compatibility projects elicited 15 project applications. DCCA's
establishing legislation requires federal funding be committed before state funding is awarded, however, not



1 Washington State Guidebook on Military and Community Compatibility, Washington State Department of Commerce, (2019),

https://www.commerce.wa.gov/serving-communities/growth-management/growth-management-topics/military-base-land-use/


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                         2
all applicants secured the required federal funds. Since this is a biennial program, those applicants with federal
grant applications under review were encouraged to apply. Projects without federal funding will remain on the
list for consideration in future budget requests as federal funding is secured.

The following table shows all 15 application rankings. The seven eligible projects are highlighted within the
federal match column, totaling $37.7 million in state allocation requests. The detailed list of prioritized
projects, including secured funding totals, is available in the Prioritized project list section of the report.


                                                                                                    Required
                                                                                   DCCA             federal
                                                                                   funding          match
 Rank           Name                                                               request          secured

 1              City of Lakewood, McChord North Clear Zone                         $900,000         Yes

 2              Whidbey Camano Land Trust, Keystone Preserve                       $1.3M            Yes

 3              Lakewood Water District, Water Well (K-3, G-4)                     $3.72M           Yes

 4              Lakewood Water District, Water Well (Hipkins)                      $2.84M           No

 5              Lakewood Water District, Water Well (Oakbrook 0-2)                 $2.84M           No

 6              Lakewood Water District, Water Well (Oakbrook 0-3)                 $2.84M           No

                Compatible Lands Foundation, Fairchild REPI Easement Acquisition
 7                                                                                 $2.5M            Yes
                Program

 8              Oak Harbor School District, Hand-in-Hand Early Learning Center     $13.9M           Yes

 9              City of Bremerton, Quincy Square Civic Improvements                $1.75M           Yes

 10             Oak Harbor School District, Crescent Elementary                    $13.6M           Yes

 11             Thurston County, Habitat Conservation Land Acquisition             $8M              No

                Great Peninsula Conservancy, Green Mountain Compatibility
 12                                                                                $3.61M           No
                Protection

 13             City of Airway Heights, APZ Backfill Prevention                    $3.47M           No

 14             Port of Everett, Destination Retail Waterfront                     $500,000         No

 15             City of Airway Heights, Downtown Business Empowerment Program      $305,000         No

 Total DCCA eligible project funding request: $37.67 million

 Total local and federal match for DCCA eligible projects: $126.17 million



 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                  3
Next steps
Commerce staff intend to pursue the following steps to enhance the DCCA program. These enhancements
allow for improved program administration and program development with well-defined parameters for future
grant cycles.

     Technical assistance: Provide technical assistance to prospective applicants to support project
     development and improve readiness to proceed. Commerce will help to identify federal funding
     opportunities and secure additional grants to for those applicants without the required match.

     Advisory committee: Form an advisory committee to develop and refine objective scoring criteria to
     review project applications going forward. The committee will include community stakeholders. Its goal
     will be developing objective criteria for the evaluation and ranking of future project applications.

     Outreach: Implementation of all statutory requirements calls for additional program work between the
     biennial reports, including outreach with military installations in the state, local governments, and other
     entities eligible for future grant rounds. Program staff will dedicate time helping applicants ensure
     projects are ready to proceed, build relationships with defense communities, and provide assistance with
     ongoing land use compatibility work at the local level.

     Rulemaking: Consider the need to develop Washington Administrative Code (WAC) rules to clarify
     program information, application processes, eligibility and to support the implementation of the statute.

     Federal match: Develop guidelines and messaging to increase awareness of DCCA program funds'
     potential as a state match for the federal Defense Critical Infrastructure Program and other federal
     funding sources.

Project application opportunities will take place on a biennial basis. Commerce will submit the third DCCA
prioritized project list and report to the Legislature by Nov. 1, 2024.

Recommendations
The suggested recommendations indicate areas where the program would benefit from additional clarification
and guidance from the Legislature. Commerce is submitting agency request legislation to implement the
following recommendations:

     Clearly define eligible applicants: RCW 43.330.515 is not clear on whether federally recognized Indian
     tribes are eligible to apply. Several tribes in Washington have land adjacent to military installations,
     making them viable partners in land use compatibility planning and implementation efforts. The
     proposed amendments would clarify that tribes are included as eligible applicants, allowing for more
     project proposals supporting civilian-military compatibility.

     Clarify intent for capital projects: Remove the term "programs" and add the term "capital" in statute to
     clarify that DCCA is intended for capital projects resulting in construction, property acquisition and
     planning. This criteria aligns with the federal Defense Community Infrastructure Program (DCIP)
     requirements and eases the administration of the grant program, making a more streamlined application
     and evaluation process.



 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                4
   Adjust project list and report deadlines: Permanently adjust the report due date from January 1 to
   November 1 of every even-numbered year to coordinate and align with the development of the biennial
   budget. The current timeline for report and prioritized project list submittals aligns with the supplemental
   budget period. With reports due on a biennial basis, the timeline for submittals will continually fall during
   the supplemental budget, rather than the beginning year of the new budget cycle.




DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                              5
Introduction
Civilian-military compatibility
Compatibility planning points to the shared challenges and opportunities that communities and military
operations experience as neighbors address land use decisions and needs. The Washington State Guidebook
on Military and Community Compatibility defines "compatibility" as a generic term to describe a multi-
directional relationship among civilian and military neighbors.

Compatibility related projects address land uses where military and civilian activities overlap. Adverse impacts
are two way in nature — civilian and military activities affect each other — posing challenges to health, safety,
property values, quality of life and national security. Increased density in areas where the military relies upon
existing conditions at a lower level of development can result in cumulative degradation of a base's ability to
safely and efficiently function or adapt to mission changes, and residents can experience adverse impacts
when nearby communities are exposed to new operations or military activities increase or change.2

Legislative mandate
Section 2, Chapter 404, Laws of 2019 (Substitute Senate Bill 5748) modified RCW 43.330:

     (1) The department must produce a biennial report identifying a list of projects to address incompatible
     developments near military installations.

     (a) The list must include a description of each project, the estimated cost of the project, the amount of
     recommended state funding, and the amount of any federal or local funds documented to be available to be used for
     the project.

     (b) Projects on the list must be prioritized with consideration given to:

     (i) The recommendations of the recent U.S. Department of Defense Base Realignment and Closure (BRAC)
     processes, joint land use studies, or other federally initiated land use processes; and

     (ii) Whether a branch of the U.S. Armed Forces has identified the project as increasing the viability of military
     installations for current or future missions.

     (iii) Priority must be given for grant applications accompanied by express support from nonprofit community or
     neighborhood-based organizations, public development authorities, federally recognized Indian Tribes in the state, or
     other community partners.

     (c) The department may consult with the commanders of U.S. military installations in Washington to understand
     impacts and identify the viability of community-identified projects to reduce incompatibility.

     (2) The department must submit the report to appropriate committees of the House of Representatives and the
     Senate, including the joint committee on veterans' and military affairs and the House of Representatives capital
     budget committee, by Jan. 1, 2020, and every two years thereafter.

     (3) For the 2021-2023 fiscal biennium, the departments shall develop the report in subsection (2) of this section by
     November 1, 2022, rather than by January 1, 2022.




2 Washington State Guidebook on Military and Community Compatibility, Washington State Department of Commerce, (2019),

https://www.commerce.wa.gov/serving-communities/growth-management/growth-management-topics/military-base-land-use/


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                         6
Approach
The Defense Community Compatibility Account (DCCA) implements a statewide fund to evaluate civilian-
military land use projects to present the Legislature with a list of eligible projects to address land use
compatibility issues across the state. This is not a program unique to Washington; at least 13 other states
provide funding to promote compatibility between the military and its host communities.

In order to fulfill the legislative mandate, Commerce staff conducted outreach on the program and then
received and evaluated 15 submitted projects based on their ability to meet the criteria described above in
statute. This effort had the dual purpose of increasing awareness of this program and funding opportunity, as
well as eliciting applications to implement in upcoming funding cycles.


Program development
The DCCA implements a statewide program to funnel civilian-military land use projects through a central
evaluation process to present the Legislature with a list of vetted, eligible projects to address land use
compatibility issues across the state. With the development of this program, Washington joins several other
states that provide funding to promote compatibility between the military and its host communities.

DCCA promotes land use compatibility between communities and military installations by providing consistent
programmatic framework for soliciting and evaluating civilian-military compatibility projects. The state has
made investments to promote compatibility projects before; however, this program offers a clear path for
communities seeking funding with a more predictable investment strategy.

Project solicitation and evaluations help identify and prioritize needs from numerous communities affected by
military activities. It also facilitates coordination between military installation commanders and local
government planners by providing funding support for the implementation of compatible land use solutions.

Outreach
Commerce and program staff recognize the importance of stakeholder input for effective project solicitation
and implementation. Program staff began outreach efforts in June 2022 with both broad and targeted
stakeholder communication to increase program awareness. Staff created a program fact sheet, webpage and
newsletter articles, and conducted direct communication with interested parties to increase awareness and
support project development. Materials developed include a thorough set of program guidelines and an
application form with detailed descriptions of applicant eligibility, match requirements, program timelines,
application deadlines and requirements, scoring criteria and evaluation process, and eligible project activities.

An updated webpage houses program resources to guide applicants to applicable program information.
Technical assistance provided during the solicitation process included question-and-answer periods with
results summarized and posted on the program webpage. Appendix A has additional program background
information and Appendix B has details on the methodology used for ranking and vetting projects.

Call for projects
The program's application window was open from Aug. 1-Sept. 15, 2022, to solicit applications for projects
that promote compatible development near military installations in Washington. A variety of compatibility
related projects are eligible for the program, including the following list of project activities per SSB 5748:

   Acquisition of real property or real property interests to eliminate existing incompatible use.

 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                  7
   Joint assistance in the recovery or protection of endangered species dependent on military installation
   property for habitat.
   Projects or programs to increase affordable housing availability for enlisted military personnel and
   nonmilitary residents in the local community.
   Property retrofitting increase compatibility with existing or future military operations.
   Economic diversification for communities heavily dependent on a nearby military installation to reduce
   economic dependence on the base.
   Job replacement aid in the event of a reduction of the military presence.
   Improvements or enhancements to the local economy, environment, or quality of life impacted by the
   presence of military activities.


Project evaluation
The project review team evaluated 15 submitted applications based on several categories: project scope,
leveraged funds, need and priority, readiness to proceed, and organizational capacity. Projects were prioritized
with an evaluation matrix and prioritization process in accordance with the requirements and
recommendations in the authorizing statute. Detailed project profile summaries begins in the next section.

2022 prioritized project list
1) City of Lakewood: McChord North Clear Zone

2) Whidbey Camano Land Trust: Keystone Preserve

3) Lakewood Water District: Water Well (K-3, G-4)

4) Lakewood Water District: Water Well (Hipkins)

5) Lakewood Water District: Water Well (Oakbrook 0-2)

6) Lakewood Water District: Water Well (Oakbrook 0-3)

7) Compatible Lands Foundation: Fairchild REPI Easement Acquisition Program

8) Oak Harbor School District: Hand in Hand Early Learning Center School Replacement & Relocation Project

9) City of Bremerton: Quincy Square Civic Improvements

10) Oak Harbor School District: Crescent Elementary School Replacement

11) Thurston County: Thurston County Habitat Conservation Land Acquisition

12) Great Peninsula Conservancy: Green Mountain Compatibility Protection

13) City of Airway Heights: Accident Potential Zone (APZ) Backfill Prevention

14) Port of Everett: Destination Retail Waterfront

15) City of Airway Heights: Downtown Business Empowerment Program




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                              8
Prioritized project list
The program's call for civilian-military compatibility projects elicited a variety of project submittals, ranging
from construction and property acquisition to habitat restoration and downtown revitalization. DCCA's
establishing legislation requires federal funding be committed to the project before state funding is awarded.
However, many applicants have federal grant applications under review and may receive federal funding
awards within the next year. Since this is a biennial program, applicants awaiting potential federal funding
awards were encouraged to apply. If federal funds are secured in 2023, those projects may be identified in
agency budget decision requests for the 2024 supplemental budget.

Next steps for technical assistance include support from Commerce DCCA program staff in the identification
of federal funding opportunities for those projects in need of federal match. Applicants are encouraged to
reference their placement on the DCCA project list to show prospective funding partners their ranking and
potential for state match.

The following table shows all 15 application rankings and evaluation outcomes for projects received in the
DCCA project solicitation. The seven projects eligible for DCCA funding are highlighted green within the federal
match column below, totaling 37.7 million. More in-depth project details with individual project profile
summaries begin in the next section.

2022 prioritized project list

          Applicant                                                                DCCA            Federal            Total
          and project                                                              funding         match              leveraged
 Rank     name                Project description                                  request         secured            funds

                                                                                                   Yes
                                                                                                                      $2.1 million
                              Purchase properties within the Joint Base                            Federal funding    federal
          City of Lakewood,
                              Lewis-McChord North Clear Zone and vacate                            secured
 1        McChord North                                                            $900,000
                              business to comply with regulations that the                         through            $50,000 local
          Clear Zone (NCZ)
                              NCZ be comprised of vacant land.                                     Cooperative
                                                                                                   Agreement with
                                                                                                   U.S. Army



                                                                                                   Yes

                                                                                                   Federal funding
                              This project will complete the permanent                                                $4.3 million
                                                                                                   secured with
          Whidbey Camano      acquisition of 226 acres in central Whidbey                                             federal
                                                                                                   U.S. Navy
          Land Trust,         Island to protect critical shoreline, forest
 2                                                                                 $1.3 million
          Keystone            habitat, and agricultural open space in a priority                                      $300,000 local
                                                                                                   Applied for
          Preserve            area for Naval Air Station Whidbey Island's
                                                                                                   additional state
                              (NASWI) encroachment mitigation program.
                                                                                                   (ESRP, PSAR)
                                                                                                   and federal
                                                                                                   (USFWS) grants


                              This project involves drilling two new wells into
                                                                                                   Yes                $1.95 million
                              deeper, uncontaminated aquifers. The new
          Lakewood Water                                                                                              federal
                              wells are expected to deliver about 1,500
 3        District, Water                                                          $3.72 million   Federal funding
                              gallons per minute of uncontaminated water,
          Well (K-3, G-4)                                                                          secured            $1.87 million
                              partially offsetting supply lost due to PFAS
                                                                                                   through EPA        local
                              contamination.




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                       9
       Applicant                                                               DCCA            Federal           Total
       and project                                                             funding         match             leveraged
Rank   name                 Project description                                request         secured           funds

                            Perfluorinated compounds (PFAS)
                            contamination exceeds the State Action Level                       No
       Lakewood Water                                                                                            $0 federal
                            at the Hipkins Well and it has been shut down.
4      District, Water                                                         $2.84 million
                            These compounds present public health risks.                       Federal funding
       Well (Hipkins)                                                                                            $935,000 local
                            This project will drill a new replacement well                     not secured
                            into a deeper, uncontaminated aquifer.


                            Perfluorinated compounds (PFAS)
       Lakewood Water       contamination exceeds the State Action Level                       No
                                                                                                                 $0 federal
       District, Water      at the Oakbrook 0-2 Well and it has been shut
5                                                                              $2.84 million
       Well (Oakbrook 0-    down. These compounds present public health.                       Federal funding
                                                                                                                 $935,000 local
       2)                   This project will drill a new replacement well                     not secured
                            into a deeper, uncontaminated aquifer.


                            Perfluorinated compounds (PFAS)
       Lakewood Water       contamination exceeds the State Action Level                       No
                                                                                                                 $0 federal
       District, Water      at the Oakbrook 0-3 Well and it has been shut
6                                                                              $2.84 million
       Well (Oakbrook 0-    down. These compounds present public health                        Federal funding
                                                                                                                 $935,000 local
       3)                   risks. This project will drill a new replacement                   not secured
                            well into a deeper, uncontaminated aquifer.


                                                                                               Yes

       Compatible Lands                                                                        Federal funding
                            The Fairchild REPI EAP proposal seeks to
       Foundation,                                                                             secured
                            prevent incompatible development from
       Fairchild REPI                                                                          through REPI.     $2.5 million
7                           hindering operations at Fairchild Air Force Base   $2.5 million
       Easement                                                                                Additional        federal
                            (AFB) through the acquisition of easements on
       Acquisition                                                                             funding
                            lands surrounding the installation.
       Program                                                                                 requested from
                                                                                               NRCS and FY23
                                                                                               REPI funds


                                                                                               Yes
       Oak Harbor           The Hand-in-Hand Early Learning Center
                                                                                                                 $55.9 million
       School District,     relocation is necessary due to impacts on
                                                                                               Federal funding   federal
8      Hand-in-Hand         student learning from high-decibel jet noise       $13.9 million
                                                                                               secured
       Early Learning       associated with the Naval Air Station Whidbey
                                                                                               through DoD       $0 local
       Center               Island's flight training.
                                                                                               grant


                                                                                               Yes

                                                                                               Federal funding
                            The Quincy Square Project will improve                             secured
       City of Bremerton,                                                                                        $2.5 million
                            economic vitality and livability for Bremerton                     through a
       Quincy Square                                                                                             federal
9                           residents, including civilian DoD and enlisted     $1.75 million   Department of
       Civic
                            Navy personnel who work at Naval Base Kitsap-                      Housing and
       Improvements                                                                                              $800,000 local
                            Bremerton.                                                         Urban
                                                                                               Development
                                                                                               Community
                                                                                               Projects grant


                            The Crescent Harbor Elementary School
                                                                                               Yes
                            replacement project at Naval Air Station
       Oak Harbor
                            Whidbey Island (NASWI) is necessary to
       School District,                                                                        Federal funding   $53.9 million
10                          increase permanent building capacity and           $13.6 million
       Crescent                                                                                secured           federal
                            improve building condition and security for
       Elementary                                                                              through DoD
                            families who work at NASWI and community
                                                                                               grant
                            members.




DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                   10
         Applicant                                                                 DCCA            Federal           Total
         and project                                                               funding         match             leveraged
Rank     name                 Project description                                  request         secured           funds

                              Thurston County seeks to implement
                              conservation goals by acquiring land to protect
         Thurston County,                                                                          No
                              habitat and federal and candidate listed wildlife                                      $0 federal
         Habitat
11                            species impacted by residential, commercial          $8 million
         Conservation                                                                              Federal funding
                              and transportation development, providing                                              $500,000 local
         Land Acquisition                                                                          not secured
                              habitat otherwise only available on Joint Base
                              Lewis-McChord property.


                                                                                                   No
                              The Green Mountain Compatibility Protection
         Great Peninsula      Project will conserve up to 1,200 acres of                           Federal funding
         Conservancy,         recreational forestland near Bremerton via the                       not secured.      $0 federal
12       Green Mountain       acquisition of a conservation easement,              $3.61 million   Applying for
         Compatibility        fulfilling a need for outdoor training, compatible                   $3.5 million      $0 local
         Protection           land use, public access to open spaces, and                          from federal
                              quality of life enhancement for the community.                       Forest Legacy
                                                                                                   Program


                              This project supports relocation of residents
         City of Airway       from the Accident Potential Zone (APZ) for                           No
                                                                                                                     $0 federal
         Heights, APZ         Fairchild Air Force Base, preventing mobile
13                                                                                 $3.47 million
         Backfill             home park operators from releasing mobile                            Federal funding
                                                                                                                     $50,000 local
         Prevention           home park spaces or trailers after an existing                       not secured
                              resident leaves.


                              The Destination Retail Waterfront project will
                                                                                                   No                $0 federal
         Port of Everett,     improve waterfront access and economic
14       Destination Retail   opportunity in an area that is limited due to the    $500,000
                                                                                                   Federal funding   $1.8 million
         Waterfront           proximity of Naval Station Everett's secure
                                                                                                   not secured       local
                              perimeter.


         City of Airway       The City of Airway Heights plans to engage in a
         Heights,             business development and empowerment                                 No
         Downtown             program to foster a vibrant business
15                                                                                 $305,000                          $360,000 local
         Business             community in its downtown and reduce                                 Federal funding
         Empowerment          economic dependency on Fairchild Air Force                           not secured
         Program              Base.


Total DCCA eligible project funding request: $37.67 million

Total local and federal match for DCCA eligible projects: $126.17 million




DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                       11
Project #1: JBLM North Clear Zone
City of Lakewood
Joint Base Lewis-McChord North Clear Zone

Project site                                                           Total project cost:
                                                                       $3 million

                                                                       Total state funds
                                                                       requested:
                                                                       $900,000

                                                                       Total leveraged funds:
                                                                       Federal: $2.1M million

                                                                       Local: $50,000

                                                                       Project location:
                                                                       City of Lakewood

                                                                       Project timeline:
Project description:                                                   May 2022 - May 2024
This project intends to purchase properties within the Joint Base
Lewis-McChord (JBLM) North Clear Zone (NCZ) and vacate
businesses to comply with the federal and military regulations that   Project partners:
the NCZ be comprised of vacant land.
                                                                          Pierce County
     Local businesses in and around the NCZ pose a public safety
     and operational flight risk. Lakewood has updated all                JBLM
     municipal codes, building ordinances and its comprehensive
                                                                          South Sound Military
     plan to address NCZ incompatibilities.
                                                                          Communities Partnership

     An Action and Implementation Plan sets forth a phased            Michael Vargas
     strategy consisting of six actions and corresponding             Assistant to the city manager
     implementation steps to achieve the desired outcomes.
                                                                      City of Lakewood
     Federal funding is secured through a cooperative agreement       Email: mvargas@cityoflakewood.us
     between the Army and the City of Lakewood.                       Phone: 253-983-7717

     One of the highest priority recommendations to come out of
     the 2005 Base Realignment and Closure findings, as well as
     the 2015 JBLM Joint Land Use Study, was to develop a
     strategy to address land use incompatibilities in the NCZ.


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                         12
Project #2: Whidbey Camano Trust Keystone Preserve
Whidbey Camano Land Trust
Keystone Preserve                                                      Total project cost:
Project site                                                           $ 9.7 million

                                                                       Total state funds
                                                                       requested:
                                                                       $1.3 million

                                                                       Total leveraged
                                                                       funds:
                                                                       Federal: $4.3 million

                                                                       Local: $300,000
                                                                       Applied for additional state
                                                                       (ESRP, PSAR) and federal
                                                                       (USFWS) grants

                                                                       Project location:
                                                                       Whidbey Island

                                                                       Project timeline:
Project description:                                                   March 2023 - December 2025
The Whidbey Camano Land Trust requests DCCA funding to
complete the permanent acquisition of 226 acres in central            Project partners:
Whidbey Island to protect critical shoreline, forest habitat and
agricultural open space in a priority area for Naval Air Station          NASWI
Whidbey Island's (NASWI) encroachment mitigation program.
                                                                          Whidbey Island Conservation
                                                                          District
      The Keystone property is the top priority in a multi-year
      agreement with the Navy to implement Readiness and                  Organic Farm School
      Environmental Protection Integration (REPI) program work.
                                                                      Project contact:
      NASWI is a critical partner in the project due to the
      property's proximity to NASWI's Outlying Field Coupeville.      Ryan Elting
                                                                      Executive Director
      The project will result in the creation of Keystone Preserve,   Whidbey Camano Land Trust
      which the Land Trust intends to make a center for
      conservation and climate resilience on the island.              Email: ryan@wclt.org

                                                                      Phone: 360-222-3310



 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                      13
Project #3: Lakewood water wells K-3, G-4
Lakewood Water District
Water Wells (K-3, G-4)

Project site                                                               Total project cost:
                                                                           $7.54 million

                                                                           Total state funds
                                                                           requested:
                                                                           $3.72 million

                                                                           Total leveraged funds:
                                                                           Federal: $1.95 million
                                                                           Federal funding secured through
                                                                           EPA

                                                                           Local: $1.87 million

                                                                           Project location:
                                                                           City of Lakewood

Project description:                                                       Project timeline:
Lakewood Water District (LWD) discovered perfluorinated                    February 2023 - December 2024
compounds (PFAS) in several drinking water wells. In some,
contamination levels require they be turned off, resulting in the loss
of millions of gallons per day of water supply. This project will drill
two new wells to access uncontaminated water supply.
                                                                          Project contacts:
      PFAS compounds present health risks, especially to infants          Randall Black
      and pregnant and nursing women.                                     General Manager

      This project involves drilling two new wells into much deeper,      Marshall Meyer
                                                                          Engineering Manager
      uncontaminated aquifers. The new wells are expected to
      deliver approximately 1,500 gallons per minute of new               Lakewood Water District
      uncontaminated water, partially offsetting supply lost due to
                                                                          Email: rblack@lakewoodwater.org
      PFAS contamination.
                                                                          mmeyer@lakewoodwater.org

      LWD provides safe, reliable drinking water supply to over           Phone: 253-588-4423
      115,000 customers in Lakewood, Steilacoom, Spanaway and
      surrounding communities, including thousands of Joint Base
      Lewis McChord personnel.



 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                            14
Project #4: Lakewood Hipkins water well
Lakewood Water District
Water Well (Hipkins)
                                                                      Total project cost:
Project site
                                                                      $3.77 million

                                                                      Total state funds
                                                                      requested:
                                                                      $2.84 million

                                                                      Total leveraged funds:
                                                                      Federal: $0 — federal funding
                                                                      not secured

                                                                      Local: $935,000

                                                                      Project location:
                                                                      City of Lakewood

                                                                      Project timeline:
Project description:                                                  July 2023 - December 2024
Perfluorinated compounds (PFAS) contamination migrating from
Joint Base Lewis McChord exceeds the State Action Level (SAL) at
the Hipkins Well and it has been shut down. These compounds
present health risks to the public. This project will drill a new
replacement well into a deeper, uncontaminated aquifer.

     Lakewood Water District began a program of testing and
     monitoring PFAS and discovered contaminants in 12 wells.        Project contacts:
                                                                     Randall Black
     The Hipkins well is contaminated at a level exceeding State     General Manager
     Department of Health requirements and must be turned off.
                                                                     Marshall Meyer
                                                                     Engineering Manager
     The new well is expected to replace the capacity lost and
     benefit thousands of JBLM families and other customers in       Lakewood Water District
     Lakewood, Steilacoom, Spanaway, and surrounding
                                                                     Email: rblack@lakewoodwater.org
     communities.
                                                                     mmeyer@lakewoodwater.org

     Projects costs include pre-design and design of the new well,   Phone: 253-588-4423
     permitting and environmental compliance for the project and
     drilling and equipping the new well for startup.



 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                       15
Project #5: Lakewood Oakbrook 0-2 water well
Lakewood Water District
Water Well (Oakbrook 0-2)

Project site                                                             Total project cost:
                                                                         $3.77 million

                                                                         Total state funds
                                                                         requested:
                                                                         $2.84 million

                                                                         Total leveraged funds:
                                                                         Federal: $0 — federal funding
                                                                         not secured

                                                                         Local: $935,000

                                                                         Project location:
                                                                         City of Lakewood


Project description:                                                     Project timeline:
Perfluorinated compounds (PFAS) contamination migrating from             July 2023 - December 2024
Joint Base Lewis McChord exceeds the State Action Level (SAL) at
the Oakbrook (0-2) well and it has been shut down. These
compounds present health risks to the public. This project will drill
a new replacement well into a deeper, uncontaminated aquifer.
                                                                        Project contacts:
      Lakewood Water District (LWD) began a program of testing
      and monitoring PFAS and discovered contaminants in 12             Randall Black
      wells. This project is identified in the LWD PFAS Mitigation      General Manager
      Plan.                                                             Marshall Meyer
                                                                        Engineering Manager
      The Oakbrook 0-2 well is contaminated at a level exceeding
                                                                        Lakewood Water District
      State Department of Health levels and must be turned off.
                                                                        Email: rblack@lakewoodwater.org
      The new well is expected to replace the capacity lost and         mmeyer@lakewoodwater.org
      benefit thousands of customers in Lakewood, Steilacoom,           Phone: 253-588-4423
      Spanaway, and JBLM enlisted and civilian personnel.

      Projects costs include pre-design and design of the new well,
      permitting and environmental compliance for the project,
      and drilling and equipping the new well for startup.


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                          16
Project #6: Lakewood Oakbrook 0-3 water well
Lakewood Water District
Water Well (Oakbrook 0-3)

Project site                                                             Total project cost:
                                                                         $3.77 million

                                                                         Total state funds
                                                                         requested:
                                                                         $2.84 million

                                                                         Total leveraged funds:
                                                                         Federal: $0 — federal funding
                                                                         not secured

                                                                         Local: $935,000

                                                                         Project location:
                                                                         City of Lakewood


Project Description:                                                     Project timeline:
Perfluorinated compounds (PFAS) contamination migrating from             July 2023 - December 2024
Joint Base Lewis McChord exceeds the State Action Level (SAL) at
the Oakbrook (0-3) well and it has been shut down. These
compounds present health risks to the public. This project will drill
a new replacement well into a deeper, uncontaminated aquifer.

      Lakewood Water District began a program of testing and
      monitoring PFAS and discovered contaminants in 12 wells.          Project contacts:
      This project is identified in the LWD PFAS Mitigation Plan.       Randall Black
                                                                        General Manager
      The Oakbrook 0-3 well is contaminated at a level exceeding
      state Department of Health levels and must be turned off.         Marshall Meyer
                                                                        Engineering Manager

      The new well is expected to replace the capacity lost and         Lakewood Water District
      benefit thousands of customers in Lakewood, Steilacoom,
                                                                        Email: rblack@lakewoodwater.org
      Spanaway, and JBLM enlisted and civilian personnel.
                                                                        mmeyer@lakewoodwater.org

      Projects costs include pre-design and design of the new well,     Phone: 253-588-4423
      permitting and environmental compliance for the project,
      and drilling and equipping the new well for startup.



 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                          17
Project #7: Fairchild REPI easement acquisition
Compatible Lands Foundation
Fairchild REPI Easement Acquisition Program                           Total project cost:
Project site                                                          $8.4 million

                                                                      Total state funds
                                                                      requested:
                                                                      $2.5 million

                                                                      Total leveraged funds:
                                                                      Federal: $2.5 million
                                                                      Federal funding secured through
                                                                      REPI. Additional funding
                                                                      requested from NRCS and FY23
                                                                      REPI funds.

                                                                      Local: $0

                                                                      Project location:
                                                                      Spokane County
Project description:
The Fairchild Readiness and Environmental Protection Integration      Project timeline:
(REPI) Easement Acquisition Program (EAP) proposal seeks to
                                                                      March 2022 - September 2027
prevent incompatible development from hindering operations at
Fairchild Air Force Base (AFB) through the acquisition of             Project partners:
easements on lands surrounding the installation, especially in
relation to the main runway.                                              Spokane County

     An Encroachment Management Agreement was signed                      Inland Northwest Land
     between the Compatible Lands Foundation and Fairchild                Conservancy
     AFB in March 2022 and extends through 2027.
                                                                          Fairchild Air Force Base
     Fairchild AFB identified priority areas to focus its Readiness       Natural Resources
     Environmental Protection Integration (REPI) Program work.            Conservation Service
     Three properties, totaling 152 acres, were identified to
     initiate the acquisition of easements and permanently            Project Contact:
     remove the threat of incompatible development.
                                                                      Dan Chapin
     Adjacency to the installation, proximity to the accident         Director of military partnerships
     potential and clear zone, noise contours, and other military     Compatible Lands Foundation
     mission and land use considerations factored into this           Email: dchapin@compatiblelands.org
     decision.
                                                                      Phone: 443-224-0548

 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                          18
Project #8: Oak Harbor early learning center
Oak Harbor Public Schools
Hand-in-Hand Early Learning Center School                                Total project cost:
Replacement and Relocation Project
                                                                         $69.9 million
Project site                                                             Total state funds
                                                                         requested:
                                                                         $13.9 million

                                                                         Total leveraged funds:
                                                                         Federal: $55.9 million
                                                                         Federal funding secured through
                                                                         DoD grant.

                                                                         Local: $0

                                                                         Project location:
                                                                         Oak Harbor

                                                                         Project timeline:
                                                                         July 2023 - July 2026
Project description:
The Oak Harbor School District Hand-in-Hand Early Learning
Center relocation is necessary due to impacts on student learning       Project partners:
from high-decibel jet noise associated with the Naval Air Station
Whidbey Island's flight training. The current placement of the             Department of Defense (DoD)
school also interferes with the Navy's flight paths, affecting
                                                                           Naval Air Station Whidbey
training and preparedness.
                                                                           Island

     In 2020, Oak Harbor Public Schools was issued a notice of             City of Oak Harbor
     award for 80% of the total new building costs for two
     elementary schools. They were listed in the top 10 of public          Island County
     schools on military installations for serious capacity and
     conditions deficiencies, identified in 2011 and 2018               Michelle Kuss-Cybula
     assessments.                                                       Superintendent

                                                                        Oak Harbor Public Schools
     Facility relocation would remove flight constraints and
     reduce aircraft noise on the local community, while providing      Email: mkuss-cybula@ohsd.net
     a more efficient operational flight pattern for the air station.   Phone: 360-623-4445




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                       19
Project #9: Bremerton Quincy Square improvements
City of Bremerton
Quincy Square Civic Improvements                                       Total project cost:
Project site                                                           $5.05 million

                                                                       Total state funds
                                                                       requested:
                                                                       $1.75 million

                                                                       Total leveraged
                                                                       funds:
                                                                       Federal: $2.5 Million
                                                                       Federal funding secured
                                                                       through a Department of
                                                                       Housing and Urban
                                                                       Development Community
                                                                       Projects Grant

Project description:                                                   Local: $800,000
Bremerton's Quincy Square project is a shovel-ready civic
improvement project, intended to transform a long-neglected            Project location:
street into an active, safe, inclusive and attractive pedestrian-
                                                                       City of Bremerton
focused urban festival plaza. The project will improve economic
vitality and livability for Bremerton residents, including civilian    Project timeline:
Department of Defense and enlisted Navy personnel who work at
                                                                       October 2022 - December 2024
Naval Base Kitsap-Bremerton.

      Downtown Bremerton is economically driven by Naval Base         Project partners:
      Kitsap - Bremerton (NBK-BR), with 22,000 civilian, enlisted,
      and contract employees makeup the NBK-BR workforce.                Downtown Bremerton
                                                                         Business Association
      Quincy Square seeks to improve livability and economic
                                                                         U.S. Department of the Navy
      vitality in downtown Bremerton.

      The project will address the blighted downtown business
                                                                      Project contact:
      core in an area with vacant buildings.                          Katie Ketterer
                                                                      Project manager
      This funding request is for the construction phase of
                                                                      City of Bremerton
      Quincy Square and will complete the project. Preliminary
      design and bid documents are mostly complete.                   Email:
                                                                      katie.ketterer@ci.bremerton.wa.us

                                                                      Phone: 360-473-5334


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                          20
Project #10: Oak Harbor school replacement
Oak Harbor School District
Crescent Harbor Elementary School replacement                               Total project cost:
Project site                                                                $67.6 million

                                                                            Total state funds
                                                                            requested:
                                                                            $13.6 million

                                                                            Total leveraged funds:
                                                                            Federal: $53.9 million
                                                                            Federal funding secured through
                                                                            DoD grant.

                                                                            Local: $0

                                                                            Project location:
                                                                            Oak Harbor

                                                                            Project timeline:
                                                                            February 2023 - August 2026
Project Description:
The Oak Harbor School District Crescent Harbor Elementary                  Project partners:
School replacement project at Naval Air Station Whidbey Island
(NASWI) is necessary to increase permanent building capacity and              Department of Defense (DoD)
improve building condition and security for families who work at
NASWI and community members. Over 55% of military families                    City of Oak Harbor
reside in military supported housing within a half-mile radius of the
                                                                              Island County
school campus.
                                                                           Michelle Kuss-Cybula
      The DoD 2018 Facility Condition Assessment Report found              Superintendent
      the facility has insufficient capacity, is lacking in food service
      functionality, and has multiple buildings beyond their useful        Oak Harbor Public Schools
      life.                                                                Email: mkuss-cybula@ohsd.net

                                                                           Phone: 360-279-5008
      This project benefits from a growth grant from DoD,
      providing 80% of the total new building costs.

      Crescent Harbor Elementary School has the highest
      percentage of military families, with over 65% of enrollment
      from military families.


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                          21
Project #11: Thurston County land conservation
Thurston County
Thurston County Habitat Conservation Land
Acquisition
                                                                         Total project cost:
Project site                                                             $8 million

                                                                         Total state funds
                                                                         requested:
                                                                         $8 million

                                                                         Total leveraged funds:
                                                                         Federal: $0
                                                                         Federal funding not secured

                                                                         Local: $500,000 annually

                                                                         Project location:
                                                                         Thurston County

                                                                         Project timeline:
Project description:                                                     January 2023 - June 2025
Thurston County developed a 30-year countywide Habitat
Conservation Plan (HCP) and seeks to implement conservation          Project partners:
goals by acquiring land to protect habitat and federal and
candidate listed wildlife species impacted by residential,              Wash. Department of Fish and Wildlife
commercial and transportation development.
                                                                        U.S. Fish and Wildlife Service

     Joint Base Lewis McChord properties in Pierce and Thurston         Center for Land Management
     counties retain some of the last remaining native habitat for
     three prairie-associated species listed under the Endangered       Sentinel Landscapes
     Species Act. This land is also important for training
     maneuvers, arms artillery impact, and airfield operations.         Natural Resource Conservation Service

     The Taylor's checkerspot butterfly is one of the listed         Joshua Cummings
     species dependent on military installation property. Two        Community planning and economic development
                                                                     program directory
     sites within the HCP contain habitat and are adjacent to
     recovery sites for this species. With this grant, Thurston      Thurston County Community Planning
     County would purchase these sites to provide mitigation
                                                                     Email: joshua.cummings@co.thurston.wa.us
     offset and assist in the species recovery and protection
     otherwise dependent on JBLM property for habitat.               Phone: 360-754-4995




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                          22
Project #12: Green Mountain Compatibility Project
Great Peninsula Conservancy
Green Mountain Compatibility Protection                                 Total project cost:
Project site                                                            $7.05 million

                                                                        Total state funds
                                                                        requested:
                                                                        $3.61 million

                                                                        Total leveraged funds:
                                                                        Federal: $0
                                                                        Applying for $3.5 million from
                                                                        Federal Forest Legacy Program

                                                                        Local: $0

                                                                        Project location:
                                                                        City of Bremerton

                                                                        Project timeline:
Project description:
The Green Mountain Compatibility Protection Project will conserve       October 2022 - July 2025
up to 1,200 acres of recreational forestland near Bremerton via the
acquisition of a conservation easement, fulfilling a need for
                                                                       Project partners:
outdoor training, compatible land use, public access to open
spaces, and quality of life enhancement for the community.                 Naval Base Kitsap

     This project has a willing landowner, supports Bremerton              Suquamish Tribe
     Parks and is supported by Naval Base Kitsap (NBK) and the
     Suquamish Tribe.                                                      Keta Legacy Foundation

                                                                           Evergreen Mountain Bike
     The project site is a popular destination for recreational use,
                                                                           Alliance
     featuring well-established and regularly used trail system of
     over seven miles and serves as a link to regional trails in       Nathan Daniel
     Green Mountain and county-owned parks. The site also              Executive director
     provides training and fitness opportunities for sailors from
     NBK, plus recreational opportunities for their families and the   Great Peninsula Conservancy
     base's civilian workforce.                                        Email: nate@greatpeninsula.org

                                                                       Phone: 360-373-3500
     A conservation easement on this site would prohibit
     development in perpetuity, ensuring habitat and public
     access to a prized natural area for generations to come.


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                         23
Project #13: Airway Heights APZ backfill prevention
City of Airway Heights
APZ backfill prevention

Project site                                                         Total project cost:
                                                                     $3.47 million

                                                                     Total state funds
                                                                     requested:
                                                                     $3.47 million

                                                                     Total leveraged funds:
                                                                     Federal: $0
                                                                     Federal funding not secured

                                                                     Local: $50,000

                                                                     Project location:
                                                                     City of Airway Heights

                                                                     Project timeline:
                                                                     January 23 - December 2027
Project description:
This project supports relocation of residents from the Accident
Potential Zone (APZ) for Fairchild Air Force Base (FAFB),           Project partners:
preventing mobile home park operators from releasing mobile
                                                                        Habitat for Humanity
home park spaces or trailers after an existing resident leaves.
                                                                        Community Frameworks
     Mobile homes in the APZ create potential risk for the
     residents living in the APZ and the long-term success of           Spokane County
     Fairchild Air Force Base and its mission. The density of
     homes in the APZ are an encroachment to the Base.                  Greater Spokane Incorporated

     There is not currently a tool to prevent park owners from          Fairchild Air Force Base
     leasing available spaces. DCCA grant funds will be used to
                                                                    Heather Trautman
     purchase the rights of park owners to re-lease 56 mobile
                                                                    Principal planner
     home lots and to remove vacated mobile homes.
                                                                    City of Airway Heights
     The city and its housing partners have collaborated for more   Email: htrautman@cawh.org
     than 10 years to provide alternative, affordable housing
     outside the APZ.                                               Phone: 509-244-5578




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                   24
Project #14: Everett Destination Retail waterfront
Port of Everett
Destination Retail Waterfront

Project site                                                            Total project cost:
                                                                        $2.3 million

                                                                        Total state funds
                                                                        requested:
                                                                        $500,000

                                                                        Total leveraged funds:
                                                                        Federal: $0
                                                                        Federal funding not secured

                                                                        Local: $1.8M

                                                                        Project location:
                                                                        Port of Everett

                                                                        Project timeline:
                                                                        July 23 - February 2024
Project description:
The Destination Retail Waterfront project will improve waterfront
access and economic opportunity in an area that is limited due to      Project partners:
the proximity of Naval Station Everett's secure perimeter.
                                                                           City of Everett
     The Port of Everett is constructing five 3,000-square-foot
                                                                           Snohomish County
     retail spaces with expansive patio and public park spaces.
     Funding would be used for the construction of utilities and           Naval Station Everett
     park spaces between the buildings.

     The parks serve as view corridors to the water and
     pedestrian connections from parking to the Mill Town Trail        Adam LeMieux
                                                                       Government affairs manager
     and Port of Everett waterfront esplanade.
                                                                       Port of Everett
     This project is intended to draw more customers from the
                                                                       Email: adaml@portofeverett.com
     region to existing waterfront tenants, create new access for
     the public to their waterfront, and enhance the quality of life   Phone: 425-572-2829
     for the community and for the sailors at Naval Station
     Everett on land that has limited potential due to the proximity
     of the naval base.


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                        25
Project #15: Airway Heights downtown project
City of Airway Heights
Downtown Business Empowerment Program

Project site                                                          Total project cost:
                                                                      $665,000

                                                                      Total state funds
                                                                      requested:
                                                                      $305,000

                                                                      Total leveraged funds:
                                                                      Federal: $0
                                                                      Federal funding not secured

                                                                      Local: $360,000

                                                                      Project location:
Project description:                                                  City of Airway Heights
The City of Airway Heights plans to engage in a business
development and empowerment program to foster a vibrant               Project timeline:
business community in its downtown. The project will improve          June 2023 - August 2024
downtown's appearance and business capacity, enhancing and
nurturing economic activity to reduce economic dependency on
Fairchild Air Force Base.
                                                                     Project partners:
     Phase 1: The city will conduct outreach with businesses in          West Plains Chamber of
     the designated project area to offer design assistance,             Commerce
     including a full-day design studio and one-on-one
     consultation for façade design considerations.                      Washington State Department
                                                                         of Transportation
     Phase 2: The city will review applications, award grants, and
                                                                     Heather Trautman
     complete award contracts and façade easements. Grants
                                                                     Principal planner
     will require 50% match. A second design studio will be
     offered to learn about U.S. 2 street designs also underway.     City of Airway Heights

                                                                     Email: htrautman@cawh.org
     Businesses will have a year to complete façade
     improvements, providing time to finalize designs, secure        Phone: 509-244-2552
     contractors and finish construction. New storefronts and
     U.S. 2 streetscape design will be optimized in the process.




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                    26
Appendix A: Background
Program implementation is strengthened due to previous efforts completed as part of Commerce's programs
targeted to summarize and assess our state's needs as they relate to compatibility-related infrastructure,
projects, programs, and policies.

For several years, Commerce has developed and implemented a statewide strategy to improve civilian-military
land use compatibility. This effort was a main goal of the Washington's sector-based economic development
strategy. DCCA rests on a strong foundation of established work to address land use compatibility issues in
Washington State.

2015-2016




Beginning in 2015, Commerce conducted a review of nationwide best practices in promoting civilian military
land use compatibility. In 2016, the Legislature commissioned the development of a strategic plan. This work
was partially funded by a grant from the Department of Defense Office of Economic Adjustment. Commerce
published the Civilian-Military Land Use Study (PDF) with state-level planning recommendations for the
Legislature.




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                          27
2017
The Washington State Military and Community Compatibility Strategy (PDF)
was developed for Commerce in 2017 by The Spectrum Group, a consulting
firm. It identified several implementation strategies to support a statewide
program for civilian-military land use compatibility. A key strategy is funding
strategies for community-identified compatibility initiatives, which identified
the need for a statewide framework to fund compatibility projects and
establish priorities for capital budget requests, reducing reliance on direct
appropriations as the sole source of funding.

Additionally, the document included budget considerations for compatibility
enhancing initiatives and observed that significant investments were made in
mission-supportive infrastructure, most notably on transportation projects.
Projects were primarily funded through direct appropriations, pointing to the
need for a predictable source and a systematic process for communities to
access state funding for investments in compatibility-related infrastructure. The report also suggested that
scoring and ranking criteria be used to consider investments that support a mission and enhance
compatibility.3

2018-2019
Most recently, in 2018-2019, Commerce produced The Washington State Guidebook on Military and
Community Compatibility, a technical assistance guidebook that provides guidance to both military and civilian
planners on local government and military planning frameworks and processes. The guidebook includes case
studies, resources and descriptions of the planning processes undertaken by the various branches of the U.S.
Armed Forces. The guidebook is intended as a resource for military and local government planners to
effectively work together toward compatibility efforts.

Building on previous work within Growth Management Services’ Civilian-Military Compatibility Program, DCCA
furthers compatibility efforts by establishing a statewide process and framework for evaluating and prioritizing
projects to be considered for funding by the Legislature. Using the technical expertise learned from
compatibility planning efforts conducted by Commerce's Growth Management Services' Civilian-Military
Compatibility Program, DCCA can use these resources to effectively develop and manage program objectives.

2019-2022
In 2019, Commerce began the Compatible Energy Siting Assessment (CESA) project with grant funding from
the Department of Defense and partnered with the state of Washington Energy Facility Site Evaluation Council
(EFSEC) to support early and ongoing civilian-military coordination for compatible siting decisions.
Stakeholders engaged in energy siting and military operations need a means to identify locations where
activities overlap and guidance for early consultation that minimizes potential for mutual impacts.




3 The Washington State Military and Community Compatibility Strategy, The Spectrum Group and Washington State Department of

Commerce, 2017, https://www.commerce.wa.gov/serving-communities/growth-management/growth-management-topics/military-
base-land-use/


 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                              28
Early and ongoing coordination protects military functional capacity and can save developers from possible
delays or late-stage investment loss. Consultation throughout development is critical to addressing risk within
areas where the military operates.

As an outcome, Commerce created an interactive mapping tool, which provides example site specific
consultation guidance via an interactive ArcGIS hub site and map viewer.

Alignment with the Growth Management Act
Within the Growth Management Act, RCW 36.70A.530 states that comprehensive plans and development
regulations should not allow development near a military installation that is incompatible with the installation's
ability to carry out its mission requirements, by supporting land use projects.

The Revised Code of Washington was amended to reflect the topic of land use compatibility. DCCA aligns with
the intent of the statue by requesting applicants provide documentation to demonstrate that a project has
been identified to increase the viability of military installations for current or future missions. Applications that
include expressed support from partners and military installation commanders further the goals of RCW
36.70A.530 by promoting communication between communities conducting planning and military personnel to
ensure incompatible development is avoided, and project goals and mission viability are maintained.

RCW 36.70A.530 also requires cities and counties hosting military installations located within or adjacent to
their borders to notify the commander of comprehensive plan and development regulation amendments. DCCA
program guidelines further support this requirement by requesting that applicants include letters of support
from nearby military installation commanders expressing the ways in which the project will further support
mission readiness and viability.

Military bases in Washington
Military bases and personnel have been part of the community for generations in several areas. Washington
hosts multiple military service branches, including at the federal and state level.




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                29
 Source: Washington State Guidebook on Military and Community Compatibility, Washington State Department of Commerce, (2019),
 https://www.commerce.wa.gov/serving-communities/growth-management/growth-management-topics/military-base-land-use/


Washington hosts the following military sites:
  Joint Base Lewis-McChord (JBLM)
  Fairchild Air Force Base (FAFB)
  Yakima Training Center (TYC)
  Naval Air Station Whidbey Island (NASWI), Naval Outlying Landing Field (NOLF) Coupeville
  Naval Magazine Indian Island (NAVMAGII)
  Naval Base Kitsap (NBK)
  Naval Station Everett (NSE)
  Northwest Training Range Complex (NWTRC)
  Camp Murray, University of Washington Applied Physics Lab
  Pacific Northwest National Laboratory (PNNL)
  Federal Training Center




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                30
     U.S. Coast Guard District 13 (USCG-D13)


                                                                                       Joint Base Lewis-McChord
                                                                                       Joint Base Lewis-McChord (JBLM) is south of
                                                                                       Tacoma between Lakewood and Lacey. The base
                                                                                       covers 90,000 acres and is a strategic location
                                                                                       near sea and aerial ports, a rail corridor, and
                                                                                       highway networks.

                                                                                       JBLM provides training and infrastructure,
                                                                                       responsive quality of life programs, and
                                                                                       mobilization and deployment operations for Army,
                                                                                       Navy, Air Force, and Marines.




Source: Commerce, 2022 CESA Map Tool (Prototype) sample-viewer, Esri/ArcGIS,
https://fortress.wa.gov/com/cesa/




     Fairchild Air Force Base
     Established in 1942 as the Spokane Army Air
     Depot, Fairchild Air Force Base (FAFB) is
     located just west of the city of Spokane within
     Spokane County and near the city of Airway
     Heights. Its primary mission is to provide air
     refueling, cargo, and passenger delivery for
     missions in the Pacific.




                                                                               Source: Commerce, 2022 CESA Map Tool (Prototype) sample-viewer, Esri/ArcGIS,
                                                                               https://fortress.wa.gov/com/cesa/




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                                              31
                                                           Naval Air Station Whidbey Island
                                                           Naval Air Station Whidbey Island (NASWI) was
                                                           established in 1942 near Oak Harbor and
                                                           Coupeville. It is the sole naval aviation asset in
                                                           the Pacific Northwest and totals 55,000 acres.
                                                           NASWI is a critical location for carrier landing
                                                           training.




Source: Commerce, 2022 CESA Map Tool (Prototype) sample-
viewer, Esri/ArcGIS, https://fortress.wa.gov/com/cesa/




Naval Magazine Indian Island
Naval Magazine Indian Island (NAVMAGII) covers a
2,700-acre island in Jefferson County, southeast of Port
Townsend. Since 1941, this base has loaded
ammunition on ships preparing for or returning from
deployment or training.

Naval Base Kitsap
Naval Base Kitsap (NBK) comprises a variety of
installations on the Kitsap Peninsula, including bases at
Bremerton, Bangor, Keyport, Manchester and Jackson
Park. The over 10,000-acre installation oversees ship
and submarine berthing, repairs and deconstruction, as
well as fuel storage, training and deep-water research.




                                                                       Source: Commerce, 2022 CESA Map Tool (Prototype) sample-viewer, Esri/ArcGIS,
                                                                       https://fortress.wa.gov/com/cesa/



DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                                       32
                                                                                 Naval Station Everett
                                                                                 As the nation’s newest naval base, NSE was
                                                                                 established in 1994 with support facilities in
                                                                                 Marysville, eastern Snohomish County and
                                                                                 along the coast. It totals 5,111 acres and is the
                                                                                 homeport for five U.S. Navy destroyers.




  Source: Commerce, 2022 CESA Map Tool (Prototype) sample-viewer, Esri/ArcGIS,
  https://fortress.wa.gov/com/cesa/




  Yakima Training Center
  Yakima Training Center (YTC) is operated
  by JBLM. This 327,000-acre facility, 168
  miles from the main base, is used for joint
  training exercises. YTC is a vital partner in
  regional emergency management
  strategies, including wildfires and
  hazardous waste management.




                                                                                 Source: Commerce, 2022 CESA Map Tool (Prototype) sample-viewer, Esri/ArcGIS,
                                                                                 https://fortress.wa.gov/com/cesa/




DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                                                 33
State programs
With the development of DCCA, Washington joined numerous other states in providing loans and grant
programs for civilian-military land use projects. Below are several examples of compatibility funding efforts
across the country.

Alaska Military Facility Zones: Municipalities in military facility zones may receive priority consideration for
financial assistance on projects in the zone.

Arizona Military Installation Fund: Established to fund the acquisition of real estate and infrastructure projects
that are vital to the preservation of a military installation.

California Infrastructure State Revolving Fund Program: Finances military infrastructure projects conducted
by public agencies and non-profit corporations.

Florida Defense Reinvestment Grant Program: Supports community-based activities that implement economic
diversification strategies and reuse closed installations and infrastructure planning. Defense Infrastructure
Grant Program: Provides grant funding for infrastructure projects that benefit communities and military
installations.

Georgia Job Tax Credit Program: Provides job tax credits in areas adjacent to a military base and designated
as military zones.

Maryland BRAC Revitalization and Incentive Zone Program: Provides funding to local governments for
infrastructure projects in BRAC revitalization and incentive zones.

New York Military Base Retention Grant: Provides funding to nonprofit organizations and municipalities to
promote, enhance, and protect New York's military bases.

Oklahoma Military Strategic Planning Commission Incentive Fund: Provides funds to local governments for
public projects necessary to protect the interest of the community in areas affected by potential military
closures or mission changes.

Texas Military Value Revolving Loan Fund: Provides financial assistance to defense communities for job
creation, economic development, and infrastructure projects. Texas Defense Economic Adjustment
Assistance Grant Program: Provides grant funding for infrastructure projects to assist military host
communities with impacts associated with changes in defense contracts.

Utah Military Installation Development Authority: Supports planning and land development in designated
project areas on military land and public or private land.

Federal programs
Defense Community Infrastructure Program: Recognizing that local governments often bear the costs of
developing and maintaining infrastructure that support military installations needs, the federal government
authorized the Defense Community Infrastructure Program (DCIP) in the 2019 National Defense Authorization
Act. The intent of DCIP is to complement efforts at the state level with a federal program that provides
matching funds for civilian-military land use compatibility projects. Often the cost of infrastructure projects is
more than a local government can afford.



 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                               34
Through state, local and federal partnerships, the potential of a new source for leveraged funds through DCIP
promotes infrastructure projects including transportation, public safety, joint services such as schools and
community support facilities, and utilities and telecommunications. The intention of this program is to leverage
federal funds to support local projects affecting bases throughout the country. The 2022 National Defense
Authorization Act authorized $90M for DCIP within the Office of Local Defense Community Cooperation
(OLDCC). The Defense Community Compatibility Account can provide state matching funds to further leverage
the federal program and fund high-priority projects identified by local communities.

Readiness and Environmental Protection Integration
Program: The U.S. Department of Defense also administers
the Readiness and Environmental Protection Integration
Program (REPI) as a federal tool for addressing compatibility
issues by helping remove or avoid land use conflicts near
military installations. REPI uses partnerships with state and
local governments to share the costs of land acquisitions and
conservation efforts through regional partnerships. As of
2021, 21,645 acres were protected in the state. DoD and its
partners spent over $111 million as a part of the REPI
program, in 6 installations in Washington.4

REPI is an important compatibility tool and recognized in SSB
5748, which states that Commerce may consider the degree
to which projects are compatible with the criteria established
in the REPI program.




                                                                                Source: Readiness and Environmental Protection
                                                                                Integration Program Washington State Fact Sheet,
                                                                                2021, Washington_ALLFacts.pdf (repi.mil)




4 REPI State Fact Sheet, Washington, 2021, Washington_ALLFacts.pdf (repi.mil)




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                                   35
Appendix B: Program outreach and methodology
Commerce recognizes the importance of community and stakeholder input for effective project solicitation
and implementation. Due to the condensed timeline for developing the program and conducting project
solicitation and ranking processes, program staff could not initiate a formal communications plan and
outreach agenda that would include travel throughout the state, workshops, the development of an advisory
commission, and additional program materials. During the six-month window allotted for this grant round,
outreach was conducted through the many channels of communication made available through the agency's
website, news releases and email stakeholder lists.

Outreach efforts included:
     A program webpage with access to program information, resources, and important dates and
     announcements relevant to the application process.

     Project solicitation announcements through direct email to stakeholders registered to receive
     information on civilian-military compatibility topics.

     Monthly program updates through the Growth Management Services newsletter, which reaches over
     20,000 recipients throughout the state.

     Direct outreach to tribal governments in areas adjacent to military installations.

     Direct contact with interested parties throughout the program development and application stage.

     Presentations to stakeholder groups to introduce the program and its components.

     Question-and-answer opportunity for interested applicants during the program application window.

Ongoing outreach will be conducted with a variety of representatives from federal agencies, U.S. Department
of Defense installations in Washington, federally recognized Indian tribes, city, county, and state governments,
associations, advocacy and nonprofit organizations, elected officials, neighborhood-based organizations,
public development authorities, and other interested parties. Program staff will develop a communications and
outreach plan to further disseminate information and raise program awareness.

Application solicitation process
The DCCA application window extended from Aug. 1-Sept. 15, 2022, marking the program's second solicitation
opportunity.

A total of 15 projects were received during the application window. Projects were evaluated using a scoring
matrix and prioritization process in accordance with the requirements and recommendations outlined in the
authorizing statute.

Question-and-answer period
A question-and-answer period extended throughout the first month of the application window, providing
applicants with the opportunity to submit questions to program staff to clarify information about the



 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                            36
application and review process. A summary of questions and responses were posted on the DCCA program
webpage on Sept. 1, as an additional resource to guide project application development.

Evaluation criteria
Project applications were evaluated on an established set of objective ranking criteria, including the following
categories. In addition to the five evaluation categories listed, applicants may receive up to 15 additional bonus
points for meeting specific priorities as stated in SSB 5748.

   Project scope: Project applications were evaluated for the quality of their project scope, considering
   feasibility of the work plan and project milestone worksheet, description of activities, and the associated
   timeline.

   Leveraged funds: Project applications were evaluated based on funding-based categories, including total
   project costs, project budget, leveraged funding and resources available, and overall project match.

   Need and priority: Project applications were evaluated for their demonstrated need and priority based on
   described urgency, local conditions, need addressed, community need, need and priority supportive
   documentation, and local priority.

   Project readiness: The project was evaluated for its demonstration of readiness to proceed for a timely
   and successful completion, including risk assessment, expediency, project site control, environmental and
   cultural resources review, zoning, and project phases.

   Organizational capacity: Project applications were evaluated on the applicant's capacity to complete and
   maintain all project components. Applicants needed to demonstrate capacity to perform and manage the
   proposed activities – both during the completion of development and ongoing operations of the project,
   including project sustainability, and program and process management.

Bonus points awarded for:
   BRAC, JLUS, REPI recommendation: Recommendations of the U.S. DOD Base Realignment and Closure
   (BRAC) processes, Joint Land Use Studies (JLUS), or other federally initiated land use processes, including
   the U.S. DoD Readiness and Environmental Protection Integration Program (REPI).

   Mission viability: Whether a branch of the U.S. Armed Forces identified the project as increasing the
   viability of military installations for current or future missions.

   Community support: Applications accompanied by express support from nonprofit community or
   neighborhood-based organizations, public development authorities, federally recognized Indian tribes, or
   other community partners.




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                             37
Evaluation matrix
Project applications were evaluated using fair and unbiased criteria following the recommendations and
priorities as established in the DCCA establishing statute, SSB 5748.

The evaluation team members’ analysis of the applications and accompanying materials provided the basis for
establishing the prioritized project list presented in this report. Applications were scored individually and
collectively using the project evaluation matrix and scoring framework.

Evaluators awarded points for each evaluation category based on their interpretation of the quality and
effectiveness of the applicant’s response to each requirement. Their external experience with, or perception of,
the application was not a factor in this evaluation.

The following evaluation matrix was used to review and score applications received. Points were awarded
based on the standards described.


 Points      Description                                    Discussion

                                                            The applicant has demonstrated an above-average
                                                            capability, approach, or solution and has provided a
 8-10        Exceeds Minimum Requirements
                                                            complete description of the capability, approach, or
                                                            solution, showing superior capability.

                                                            The applicant has an acceptable capability to meet this
 4-7         Meets Minimum Requirements                     criterion and has described its approach in sufficient
                                                            detail.


                                                            The applicant has established some capability to
                                                            perform the requirement, but descriptions regarding
 1-3         Below Minimum Requirements
                                                            their approach are not sufficient to demonstrate the
                                                            applicant will be fully able to meet the requirements.


                                                            The applicant has omitted any discussion of this
 0           No Value
                                                            requirement, or the information provided is of no value.




 DEFENSE COMMUNITY COMPATIBILITY ACCOUNT 2022 LEGISLATIVE REPORT                                                   38


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