OAR 731-035-0065
Dedicated Projects


(1) Dedicated Projects and the maximum funds to be distributed to those Dedicated Projects are:
(a) Mid-Willamette Valley Intermodal Facility, $25 million;
(b) Treasure Valley Intermodal Facility, $26 million;
(c) Rail expansion in East Beach Industrial Park at the Port of Morrow, $6.55 million;
(d) Extend rail siding along the Amtrak Cascade line in Oregon south of the City of Portland, $2.6 million.
(2) The Department will enter into an Agreement with Project Sponsors for Dedicated Projects (1)(c) and (1)(d) prior to the Project Sponsor beginning work on the project plan. The Agreement shall identify the terms, expectations, schedule and maximum funding available to complete the project plan.
(3) Project Sponsors must prepare and submit a project plan to the Department in order to be considered for funding to develop a Dedicated Project.
(a) A project plan for Dedicated Projects (1)(a) and (1)(b) shall include:
(A) Detailed site location selection analysis;
(B) Project scope of work, purpose and need;
(C) Evidence of necessary site ownership or control;
(D) Feasibility Analysis which includes at a minimum:
(i) An assessment of commodities and products likely to be served and their typical market destinations;
(ii) An assessment of the anticipated market area the facility would serve;
(iii) An assessment of the market share in the area that would use the facility;
(iv) An assessment of the anticipated transportation cost savings that use of the proposed facility may generate, such as project savings realized by shipping freight via rail in lieu of trucking;
(v) An assessment of the size and scale of the buildings, equipment, and storage areas, etc. necessary to support operation of the facility;
(vi) Documentation sufficient to perform a financial review of the Project Sponsor’s ability to deliver project, cover project construction costs until reimbursements are made, and ability to support continuous operation of the facility. Documentation necessary to conduct a financial review includes, but not limited to:
(I) Tax filings;
(II) CPA compiled or reviewed financial statements;
(III) Interim financial statements;
(IV) Debt schedule;
(V) Pro formas with assumptions;
(VI) Sources and uses of capital sufficient to fund the project.
(E) An estimate of the design and capital construction costs necessary to build the facility necessary to support its operation;
(F) A Return on Investment Analysis which must include the following:
(i) Anticipated annual revenue from operating the facility;
(ii) Number of jobs anticipated to operate the facility;
(iii) Anticipated indirect job and economic growth in the area supported by facility construction and operation.
(G) Written concurrence from an authorized agent from the relevant rail entity(s) indicating agreement with the project plan and proposal associated with its concurrence;
(H) Identify anticipated and/or potential impacts the proposed project may have to nearby transportation facilities and any anticipated needed transportation investments required to support its successful operation;
(I) Expected useful life of the project;
(J) Project schedule including design and construction, acquisition of necessary permits and other key milestones, including how the Project Sponsor will be able to begin construction no later than January 1, 2020.
(K) Written demonstration of project support from public agencies that must approve the project.
(b) A project plan for Dedicated Projects (1)(c) and (1)(d) shall include:
(A) Project scope of work, purpose and need;
(B) Anticipated project benefits including transportation connections;
(C) Description of area and entities expected to be served by the facility;
(D) Project schedule including design and construction, acquisition of necessary permits and other key milestones, including how the Project Sponsor will be able to begin construction no later than January 1, 2020;
(E) Expected useful life of the project;
(F) An estimate of the design and capital construction costs necessary to build the facility necessary to support its operation;
(G) Written concurrence from an authorized agent from the relevant rail entity(s) indicating agreement with the project plan and Proposal associated with its concurrence;
(H) Evidence of necessary site ownership or control.
(4) The Department will reimburse Project Sponsors of Dedicated Projects for the eligible costs for preparing a project plan upon receipt of invoices documented in the manner agreed to in the Agreement.
(5) The Department will begin the review of project plans once all Project Sponsors who have signed Agreements to prepare project plans for one of the Dedicated Projects, or who have notified the Department of their intent to submit a project plan not eligible for reimbursement have submitted complete project plans. Review will begin no later than 60 calendar days from the receipt of the first complete Plan with total review period not to exceed 120 calendar days from the receipt of the last Plan. Project plans shall be reviewed by the Department in the following manner:
(a) The Department shall review each project plan for completeness within 30 calendar days of initial submission. If Department determines Plan materials are not complete, Department may request additional information from Project Sponsor.
(b) The Department shall forward the project plans and neutral third party entity(s) summary report(s) (if applicable) to a Dedicated Project Review Committee of individuals with freight and economic development expertise and no direct or indirect conflicts of interest in any of the Dedicated Projects. The Dedicated Project Review Committee shall review and evaluate the project plans. Where more than one project plan is submitted for a Dedicated Project, the Dedicated Project Review Committee will rank the Plan proposals.
(c) The Department shall forward the project plans, neutral third party entity(s) summary report(s), rankings, and recommendations (if applicable), and Dedicated Project Review Committee rankings to the director of OBDD. The director of OBDD shall review and evaluate the project plans. Where there is more than one project plan for an individual Dedicated Project, the director of OBDD will rank the project plans. The director of OBDD shall provide a letter to the Commission recommending which Project Sponsor the Commission should enter into an Agreement, if any.
(d) The Department shall forward the project plans and neutral third party entity(s) summary report(s), rankings, and recommendations (if applicable), and Dedicated Project Review Committee rankings to the Director. The Director shall review and evaluate the project plans. Where there is more than one project plan for an individual Dedicated Project, the Director will rank the project plans. The Director shall provide a letter to the Commission recommending which Project Sponsor the Commission should enter into an Agreement, if any.
(e) The Department shall present the project plans, products from neutral third party entity(s) (if applicable), recommendations and ranking of Dedicated Project Review Committee, and letters of recommendation from Department and OBDD director to the Commission for consideration.
(6) For project plans approved by the Commission, the Department shall enter into an Agreement with the Project Sponsor prior to the disbursal of Connect Oregon Funds and shall include change management expectations related to the Dedicated project scope, schedule and budget. Entering into this Agreement does not preclude Project Sponsor from complying with any required federal, state and local permits, requirements or approvals. The Project Sponsor will not be reimbursed for any project costs expended prior to the execution of the Agreement. Reimbursement of project costs will occur only when there are sufficient funds available in the Connect Oregon Fund to cover the project costs. Total reimbursable project costs for each Dedicated Project shall not exceed amount included in the Agreement unless Agreement is revised by the Department. At no time will the total reimbursable project costs including Plan reimbursement costs exceed the amount identified in section (1).
(7) The Department shall administer each Dedicated Project consistent with OAR 731-035-0080 (Project Administration). Dedicated Projects are expressly exempt from all match requirements in OAR 731-035-0070 (Grant Awards and Match).
Last Updated

Jun. 8, 2021

Rule 731-035-0065’s source at or​.us