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HomeMy WebLinkAboutPort of PT_IS Grant Program Application_Jan 2026_w AttachmentsIS Grant Program Application 1. What is the total amount of grant funding requested within the range of $40,000 to $500,000? $284,999 2. What is the name of the project described in this application? An Industrial Symbiosis Park Innovating Products from Wood Waste 3. What is the physical location of Applicant's proposed project? Please list the address where the scope of work will take place (street, city, and zip code): 6432 Highway 20, Port Townsend, WA 98376 4. The Industrial Symbiosis Grant Program is one tool to help strengthen Washington’s circular economy. How does your application align with the program's purpose and funding objectives found in RFA sections 1.1 and 1.2? Please include the specific waste reduction issues your proposed project seeks to address (if applicable): The Port of Port Townsend (the Port) and the Jefferson Timber Cooperative (JTC) propose to develop an Industrial Symbiosis Park (the Park) in east Jefferson County that achieves circularity in wood processing. The property in question is currently leased from the Port by JTC. The proposed developments include electrical service upgrades, water service installation for potable and fire safety requirements, and site development for operations. JTC and its member businesses possess the equipment and skills needed to share resource streams and achieve circularity, but development of the zero-waste vision can't be implemented until critical infrastructure–electric power, water, and access roads–is in place. With funds from the Industrial Symbiosis Program, the Port will install the infrastructure necessary to transform the site into an Industrial Symbiosis Park focused on repurposing wood wastes from current and future co-located businesses on this site. These infrastructure investments will facilitate shared resource streams that result in new products and new businesses. Co-located businesses at the Park will also focus on branding, marketing, and selling both primary products like lumber and upcycled products processed from waste streams. The project proposed here was inspired in part by Port Executive Director Eron Berg’s 2025 trip to study Sustainable Industrial Parks in Denmark. The project materially strengthens our state’s circular economy and the Port of Port Townsend’s mission to “serve the citizens of Jefferson County by responsibly maintaining and developing property and facilities to promote sustainable economic growth …and protect and maintain our environment, community resources, and maritime heritage.” Alignment between the Department of Commerce’s Industrial Symbiosis Grant Program and the Port is based on the commitment both agencies have to sustainable economic development and environmental stewardship. This project is a shovel-ready implementation of that alignment. The Jefferson Timber Cooperative triple-bottom-line business model is also aligned with the Industrial Symbiosis Grant Program. The JTC formed in January 2025 to allow forestry and wood-processing microenterprises on the eastern half of the Olympic Peninsula to work together on big goals: branding and marketing local wood, sharing facilities and equipment, and achieving zero waste. The Port of Port Townsend’s formal association with the group began in March 2025 when the Timber Co-op leased an undeveloped, 12.2-acre, Port-owned site to create a local wood processing center. With support from the Industrial Symbiosis Grant Program, in 2026 this site will be transformed into an Industrial Symbiosis Park that generates jobs in an economically distressed region of the state by implementing circularity. When it becomes fully operational in late 2026, the Park will serve as a model for other rural communities in Washington. The model is relevant because: • Most or all forested communities in the state already host sawmills and other local- wood processors that are generating large volumes of wood waste; and • Even if small, rural communities lack the resources to develop large industrial parks with complex resource-sharing networks, the local Port Authority could develop appropriately scaled Industrial Symbiosis Parks that are tightly focused on co- location and circularity among small forest products businesses This project has enormous potential for transforming an existing waste stream. Currently, the Jefferson Timber Cooperative is producing about 4,000 cubic yards of offcuts–the bark- containing “jacket boards” that are cut as logs are squared off for continued milling--and 800 cubic yards of sawdust each year. These waste streams are being generated during processing of about 200,000 board feet of finished lumber. The Timber Co-op’s business model projects that these waste streams will increase to annual totals of 13,000 cubic yards of offcuts, 2,600 cubic yards of sawdust, and 2,600 cubic yards of planer shavings as operations expand to production of 650,000 board feet of lumber per year in five years (2030). Currently, none of this waste is used as a feedstock or resource. With the completion of this Industrial Symbiosis Park, all of the current and projected waste stream will be used as a feedstock or resource. Circularity will be complete. 5. What project management approach and technical methodology will your organization use for this project? * Please also outline the key project milestones and expected deliverables: The project will be managed by Port of Port Townsend Engineering staff, with their scope of work including contract management and grant administration. Port staff will select a general contractor to construct the proposed Industrial Symbiosis Park infrastructure via a competitive bid process based on cost and a track record of demonstrated quality in delivering projects on time and on budget. The project will be subject to prevailing wages. Port Engineering staff may additionally contract professional services–possibly including land surveying, materials testing, and environmental services–through approved procurement processes in support of pre-construction and construction phases, as appropriate. Port Engineering staff has in-house capability for construction surveying and contract compliance inspections, as well as environmental compliance oversight, which may be applied to this project as needed. Key project management milestones will include: • Final project design, • County permitting (Site Development, SEPA, Grading Permit, Stormwater Permit), • Preconstruction conference, • Construction, • Substantial Completion/Certificate of Occupancy, and • Contract completion. 6. How is your organization prepared to successfully deliver the scope of work? Please describe the proposed team structure and the key staff members who will contribute to and work on this project. Include details related to demonstrated experience, knowledge, and background as noted in RFA section 1.3. * Please provide the details if your organization intends to subcontract any proposed work, including criteria that will be used to select subcontractors: Owner/Contracting Agency - Port of Port Townsend Key staff members include: • Eron Berg, Executive Director: Eron has been a long-time advocate of innovation and circularity among the fabrication and repair businesses that lease Port properties. Along with other Washington state leaders in sustainable economic development, he recently used Port funding to travel to Denmark to study Sustainable Industrial Parks. • Eric Toews, Deputy Director: Eric is an experienced administrator and leader with a deep commitment to triple-bottom-line decision making by public agencies. He is the primary author of the Port’s Strategic Plan, which details how the Port will support sustainable economic development, accomplish sustainable infrastructure development on all Port properties, and meet the Port’s carbon-emission goals. • Matt Klontz and Dave Nakagawara, Capital Projects and Engineering: Matt and Dave will run the bidding process and lead an engineering group that has been responsible for the successful completion of many or most of the Port’s large capital projects listed below. Matt is a civil engineer with a Master’s in Construction Management. He has worked on large highway and light rail construction projects in addition to serving as the City Engineer for two municipalities. Dave has a Master’s Degree in Engineering Management, has worked seamlessly with staff from the Jefferson Timber Cooperative, and has been integral to the success of the Port’s recent capital projects. Most or all members of this team have worked together on an array of large capital projects over several to many years. Recent examples of Port projects that successfully delivered the proposed scope of work include: 1. Point Hudson North and South Breakwater Replacement - $12.1 million 2. Gardiner Boat Launch - $740,000 3. Boat Haven Stormwater Improvements - $3.7 million Tenant - Jefferson Timber Cooperative Key staff members include: • Cody Wayland, Executive Director: Cody will be point of contact with the JTC, its staff, and Board of Directors. • Scott Freeman, Board Member: Scott is a JTC Co-founder, biologist, and writer. Contractors and Subcontractors - TBD • General Contractor - To be selected via an advertised, competitive bid process, with selection criteria based on cost and a track record of demonstrated quality of delivering projects on time and on budget. • Subcontractors - To be included with the proposal submitted by the elected General Contractor and evaluated using the same criteria as the General. • Subconsultants - Supporting Contractor Agency, selection process using MRSC Rosters. Public Entities • Jefferson County – Will be engaged for the permitting element of the project • Jefferson County Public Utility District – Will be engaged for the electrical and potable water elements of the project • City of Port Townsend – Will be engaged for the fire safety element of the project 7. If awarded a contract with Commerce, how will your organization efficiently and effectively utilize the grant funding during the performance period? What internal project controls will you implement to ensure accountability and success? The Port is familiar with the grant oversight and performance requirements of the Department of Commerce and has successfully contracted with the Department of Commerce for multiple projects. The engineering team and other Port staff are assigned the task of making periodic status reports and providing documentation of deliverables to support requests for grant funding. In addition, the construction contracts will include: • Scheduling requirements that are reviewed continuously, • Regular project meetings of Port staff with the contractor(s), • Liquidated damages, and • Change-order management provisions. In general, the Port emphasizes transparency and continuous communication among all parties as the key to accountability and success. The Port works with experienced contractors and sub-contractors who have a demonstrated history of partnering to accomplish real-time problem solving and deliver projects on time and on budget. The Port has a strong record of success in completing complex public works–many larger in scale than the project proposed here- on time and on budget. In addition, the Port staff involved have a demonstrated interest in supporting the success of the Jefferson Timber Cooperative and in creating an Industrial Symbiosis Park that can function as a replicable model for other Port of Port Townsend properties and for other Port authorities around the state. 8. What potential risks and challenges could significantly impact delivery of the proposed project scope, and how will your organization monitor and mitigate these risks where feasible? The project involves potential risks and challenges that are typical for projects that involve final design, permitting, site preparation, and construction activities. Specifically: 1. The project budget is sensitive to unforeseeable increases in construction costs. To mitigate this risk, the budget is based on recent estimates from contractors who work in our area, including Seton Construction, Jefferson County Public Utility District, and Double D Electric. The work is scheduled to be performed in summer 2026–a “go now” schedule that reduces uncertainty in costs. We have also included a 10% contingency in the budget. 2. The site plan, scope of work, and project budget could be impacted by changes in permitting procedures or requirements. To mitigate this risk, the Port and JTC participated in an extensive pre-application meeting with personnel from the relevant Jefferson County permitting offices. No red flags came up in this session or in follow-up communications, and County staff indicated that they saw no immediate threats to rapid review and confirmation. Although the permitting process is always subject to changes in personnel and requirements, the Port and Co-op staff continue to communicate with permitting officials and maintain good relationships and open dialog. The project also has strong support from the Jefferson County Commissioners. 3. The site itself is amenable to development. The zoning is appropriate, it is flat, fronts a state highway, and does not contain wetlands or either known or suspected archaeological or historical sites. 4. The site development plan will need to go through a SEPA checklist. At the pre- application meeting, County permitting officials did not express concern about excessive time or costs associated with the SEPA process for this project. Broad public support for the Port and for the Jefferson Timber Cooperative also suggests that the possibility for objections to the proposed project arising during the SEPA process are small. Still, both Port and JTC staff are committed to transparency and building trust among stakeholders, and responding to SEPA requirements quickly and thoroughly. 9. If selected for a contract award with Commerce, what is your organization’s proposed plan to meet the 1:1 (one to one) match funding requirement? On January 14th, 2026 the Port of Port Townsend Commission passed Resolution 869-26, authorizing Executive Director Eron Berg to apply for this grant and certifying up to $300,000 in matching funds from the Port’s Industrial Development District Funds. This resolution also states “the Port is responsible for supporting all non-cash commitments to this project should they not materialize.” This authorizing resolution is attached to the grant proposal. 10. How does your requested funding amount in this application directly correspond to the proposed project’s estimated budget? In combination with the 1:1 cash match, the funding requested here is sufficient to complete the project. The requested funding is summarized as follows: • Design and permitting: Because the Jefferson Timber Cooperative has already completed conceptual design, schematic design, and final design for the project, only $9,000 is requested to support production of permitting and construction documents, along with permitting fees, for the Industrial Symbiosis Park development. • Electrical service: The requested funding amount of $208,000 is based on funding estimates from late fall 2025 from 1) the Jefferson Public Utility District, to bring power from the nearest existing line to a transformer and central distribution point inside the Industrial Symbiosis Park, and 2) a local electrical contractor, Double D Electric, to run lines from this central point to the four co-located businesses responsible for completing circularity in resource streams. The 800amp, 3-phase power requested here will activate all of the equipment required to innovate waste streams into products with high market demand. • Road access: JTC is currently operating on a skeletal gravel road system and series of gravel operating pads that is not sufficient to process waste streams. The $100,000 requested here is based on estimates from local contractors obtained in 2025 to 1) widen and asphalt the aprons on the Industrial Symbiosis Park’s two entrances to State Highway 20, creating a loop road that makes material transport by heavy trucks extremely efficient, 2) add 1200 feet of 14’ wide gravel road that will connect co-located businesses on the site, making material and resource transfer extremely efficient, and 3) gravel pads that will support year-round operations by the two business that intend to co-locate once the Industrial Symbiosis Park is operational. • Water service: The requested funding supports installation of a hydrant by the City of Port Townsend and installation of a potable water line by the Jefferson County Public Utility District. The hydrant is essential to meet the fire code regulations triggered by accumulations of wood waste and is essential for achieving circularity. The potable water is required by the Jefferson County Department of Community Development for overall permitting associated with the site plan. The Industrial Symbiosis Park cannot function without water for fire suppression and potable water to serve the needs of the co-located businesses. • General and Administrative: The funding request includes 12% of direct costs to support project administration. This line item includes bid management, day-to-day oversight of the contractors and subcontractors, responding to permitting agencies in the context of SEPA and other reviews, financial tracking, and grant reporting. • Other costs requested are 1) a 10% contingency to mitigate the effects of unforeseen increases in design, permitting, or construction costs, and 2) Washington State sales tax. It is important to emphasize that this funding request is comprehensive. Combined with existing investments, the funding requested here will result in an Industrial Symbiosis Park that accomplishes complete circularity: linking the production of lumber and other wood products to the upcycling of waste streams into readily marketable products– specifically, biofuels and mulches. In addition, it will provide the Port and the Jefferson Timber Cooperative with the infrastructure required to attract additional businesses that can engage in the on-site resource flow network. For example, by using offcuts as a feedstock for the production of kits for garden planter beds or live-edge interior paneling, or using chips and planer shavings as a feedstock for biochar production. 11. Have you included a project budget attached as part of this application submission? * A detailed budget is required and should align with the requested grant amount and (not to exceed the maximum award amount in RFA section 1.4). NOTE: this will not be scored in the application evaluation process. Include costs of all things necessary to carry out the services of this RFA. Please upload in Attachments section. Yes. The project budget is attached. Special Preference RFA section 1.2 describes Commerce's special preference for projects to facilitate the development of industrial symbiosis parks across Washington state. To determine if this optional project consideration may apply, please share if your project application meets any of the listed three (3) criteria in the following questions. 12. Does your project application demonstrate progress steps taken among two or more organizations to co-locate at a planned location and also share integrated resource streams? This can be provided through a letter of intent and/or a memorandum of understanding with partner(s). Please include the land use zoning and/or regulatory permits required to achieve the proposed project: Co-location and integrated resource streams - The project site currently hosts three businesses: Jefferson Timber Cooperative, Trillium Timber LLC, and Kilnworks LLC. At present, their activities are: • Jefferson Timber Cooperative is purchasing, storing, and scaling logs, leasing equipment to co-located member businesses, grading and storing finished lumber, implementing a marketing plan, and fulfilling wholesale and retail orders; • Trillium Timber is sawing logs into lumber using a diesel-fueled mill; and • Kilnworks is currently moving onto the site and developing a shop for production of saunas, outbuildings, outdoor furniture, crates, and other value-added items from wood produced by the Timber Co-op. At present, these businesses are not sharing integrated resource streams, due to the lack of infrastructure required to create the Industrial Symbiosis Park proposed here. For example, Trillium Timber is currently generating large volumes of waste in the form of sawdust and offcuts. This waste is being stored on site in large mounds or bales. When the required infrastructure is available, this waste will be processed using a sawdust dryer and press owned by Trillium Timber and a chipper owned by Jefferson Timber Cooperative–equipment that is currently idle due to a lack of power on site. Once processed, the upcycled products–fireplace logs, landscape and agricultural mulches, and stovewood–will be marketed and sold by JTC. The intent to integrate these resource streams is confirmed in the attached letters from JTC and Trillium Timber. JTC and its member businesses have all of the expertise and equipment needed to achieve circularity. Large volumes of unused waste materials are accumulating at the proposed location of the Industrial Symbiosis Park because the infrastructure required to run the equipment to achieve circularity is lacking. The moment the proposed project is complete, the accumulating waste will begin to disappear as co -located businesses process them into a stream of valuable upcycled products, beginning with JTC marketing and selling several high-demand biofuels along with mulches and amendments used in landscaping and agricultural contexts. In addition, when the Industrial Symbiosis Park is operational, other businesses described in Question 13 will be able to co-locate and create expanded capacity for circularity in resource use, potentially to include an array of new and innovative upcycled products. The attached Letters of Support attest to the intent from the Jefferson Timber Cooperative, Trillium Timber, Boots on the Ground Forest Services, and Wayland Constructive to co- locate at the site and share integrated resource streams. Land use/zoning- Please see this item addressed in Question 13 below and in the provided attachments. Regulatory permits- As part of this project, The Port of Port Townsend will work closely with the Jefferson Timber Cooperative to submit permit applications for: 1. Stormwater management, 2. Grading and other aspects of site development, and 3. A mill house building and other facilities needed for storing materials and running equipment for processing waste materials. All three permit packages have been completed in draft form, and are in process of being finalized and submitted. 13. Does your project application demonstrate progress steps taken at an existing operational site to enable future capacity for additional businesses/organizations to co-locate and to share integrated resource streams? * Please include the land use zoning and/or regulatory permits required to achieve the proposed project: Yes. See below for details on the project’s capacity for attracting additional co-located businesses. Information on land use zone and regulatory permits is provided here: • Land use zoning: In December 2024, the Jefferson County Board of Commissioners approved an amendment to the Comprehensive Plan that created a zoning overlay, Jefferson County International Airport (JCIA) Overlay III, of the 12.2 acre parcels that the Port intended to lease to the Jefferson Timber Cooperative. Although the two parcels involved are zoned Rural Residential, inclusion in the JCIA Overlay III supports light industrial development and use. This action gave the Port the ability to lease the parcels to the Timber Cooperative and begin developing an Industrial Symbiosis Park. Attached to this application is a graphic depiction of this zoning from Jefferson County. • Regulatory permits: As part of this project, The Port of Port Townsend will work closely with the Jefferson Timber Cooperative to submit permit applications for: 1. Stormwater management, 2. Grading and other aspects of site development, and 3. A mill house building and other facilities needed for storing materials and running equipment. All three permit packages have been completed in draft form, and are in process of being finalized and submitted. If "yes", please provide details for meeting this criteria in question 13.: In addition to the three businesses currently operating or setting up at the project site, two businesses plan to co-locate as soon as Industrial Symbiosis Park development progresses–meaning that road access is complete and power and water are available. Specifically: • Wayland Constructive will be operating dehumidifier kilns to dry lumber; • Boots on the Ground Forest Services will be processing firewood for local sale from 1) mill waste in the form of offcuts (also called jacket boards) and 2) low-value roundwood from forest health thinning operations. • Wayland Constructive will use a wood-fueled boiler owned by Trillium Timber to provide heat for a dehumidifier kiln. Heat from this boiler will also be used to condition space in the Trillium Timber mill house and production shed, along with conditioned storage for dried lumber. The fuel for the boiler will be provided by chips from the Jefferson Timber Cooperative’s chipper. The attached letters of intent from Wayland Constructive and Boots on the Ground Forest Services describe their commitment to co-locating at the proposed Industrial Symbiosis Park. In addition, the JTC’s site plan, included in the attachments, includes at least three 1-3- acre plots that are available for additional businesses to co-locate and contribute to the shared resource streams, once the Industrial Symbiosis Park is operational. JTC has already entertained queries from interested businesses, including other small sawmills that are struggling to manage their waste streams. Finally, JTC participated in the most recent cohort of Washington Department of Ecology’s NextCycle business development program. In conjunction with NextCycle consultants, JTC developed and is now circulating a 32-page white paper summarizing an array of over 40 innovative products that can be processed from wood waste and/or low-value timber, such as logs from forest health and fuel-reduction operations. These products range from biochar that is modified to suit a suite of applications to slat- or live-edge walls for commercial buildings to acoustic wood wall panels to end-grain flooring. In conjunction with EDC Team Jefferson and the North Olympic Development Council, JTC’s intent is to use this document to encourage local microentrepreneurs who are developing business plans focused on co-locating at the Industrial Symbiosis Park and innovating waste streams to value-added products. 14. Does your project application demonstrate progress steps taken among two or more organizations to innovate industrial by-products and waste materials into valuable resources for shared use? (unrelated to co-location status) * This can be provided through a letter of intent and/or memorandum of understanding with partner(s). Yes –please see letters of intent from Trillium Timber, Jefferson Timber Cooperative, Boots on the Ground Forest Services, and Wayland Constructive, attached to this application. If "yes", please provide details for meeting this criteria in question 14.: Three businesses are currently co-located at the site of the proposed project, though they currently lack the infrastructure required to share and upcycle waste streams. Two additional businesses have submitted letters of intent declaring that they intend to move to the site as soon as the Industrial Symbiosis Park is operational. A diagram attached to this application, labeled “Resource Flows,” is summarized below and describes the symbiotic operations of the four businesses once this project is complete. Note that: • Each of the four businesses involved is color-coded and identified in a bold- bordered box. • The waste streams are associated with the originating business using the color coding, and identified in a thin-bordered oval. • Equipment or processing steps required to innovate by-products are color-coded to associate them with the relevant business and identified without a border. • Products–both primary products like lumber and upcycled products like biofuels and soil amendments–are associated with the originating business using the color coding, and identified in a thin-bordered rectangle with rounded edges. • Some of the biofuels generated by on-site processing will be used in place to furnish heat for industrial processes (e.g. kiln drying) and creating conditioned spaces for co-located businesses to operate. • One of the businesses currently in process of moving to the site–Kilnworks LLC–is a new enterprise and is developing a diverse array of product lines. Once Kilnworks is in production and their feedstocks and waste streams are identified, they will be added to this resource-flow network. Impacts and Outcomes 15. Please identify and describe the proposed project's physical location. Will the scope of work outlined in this application provide benefits to surrounding communities and help reduce environmental health disparities? For research and development projects, explain anticipated benefits once the technology is developed and commercialized. * When responding, please reference data from the Washington Department of Health’s Environmental Health Disparities Map and the Washington Office of Financial Management’s Overburdened Communities Mapping Tool (please refer to RFA Section 1.2) The proposed project is located at 6432 Highway 20, Port Townsend WA 98368, on land owned by the Port of Port Townsend. The site is adjacent to the Port-owned-and-operated Jefferson County International Airport and is part of a larger area slated for future leasing to small businesses focused on light manufacturing. Port Townsend is the county seat and only municipality in Jefferson County. The County has a population of 34,000 and is listed as economically distressed by the Washington Department of Commerce. The county’s economy currently relies on maritime trades, agriculture, tourism, and shellfish aquaculture. Historically, however, large sections of Jefferson County, like much of the Olympic Peninsula, was dependent on the forest products industry. This employment base was devastated by the decline of old growth forest harvesting in the late 1980s and early 1990s. The timber-dependent regions in Jefferson County have still not recovered, and the county as a whole suffers from the overall decline in economic vitality that rural areas of our state and country have experienced as the national economy underwent digitization and financialization. As a result, the environmental health disparities present in Jefferson County are overwhelmingly associated with the devastating effects of poverty on health and life expectancy, largely rooted in the economic disparities between individuals with and without college degrees. We see the proposed project as a tool for decreasing environmental health disparities by supporting economic development that provides family-wage, high-skilled jobs that do not require a college degree. In this respect, it is important to note that the Port and the Jefferson Timber Cooperative share a demonstrated commitment to triple bottom line impacts, with social impacts focused on providing prosperity-wage jobs for rural residents. The potential of the Industrial Symbiosis park is particularly high in this respect for several reasons: • Historically, the timber industry in Jefferson County was based on the export of raw logs to distant locations–often to east Asia. A founding mission of JTC was to keep local logs in the County, process them into value-added products using local skilled labor, and market them both locally and statewide. The more local processing that occurs, the more value is added to wood products–for example, turning logs into paneling and other high-demand, high-margin products–the higher JTC’s impact on environmental health disparities. • Innovating waste streams to value-added products was a second founding mission of the Jefferson Timber Cooperative. Although a lack of infrastructure has not made this possible to date, development of the Industrial Symbiosis Park will activate direct connections between co-located businesses that lead to zero-waste and use waste streams to create new, prosperity-wage jobs for skilled, local labor. Development of the Industrial Symbiosis Park expands JTC’s processing capabilities to what are now waste streams, creating additional benefits for economic well- being and public health. • Finally, the frequency and intensity of forest fires on the Peninsula are increasing rapidly. As a result, exposure to high levels of smoke is creating increasingly important health-care disparities for low-income residents who have to work outside. JTC sources its logs from sustainably managed forests that contain larger trees and reduced fuel loads, so is playing a role in reducing the impact of wildfire smoke. JTC impact on forest and environmental health will grow when the Industrial Symbiosis Park is operational and Boots on the Ground Forest Services is able to join, as their core business involves thinning operations that reduce fuel loads and reduce fire hazard. 16. How does your proposed project help support Washington’s commitment to reducing and mitigating greenhouse gas impacts in overburdened communities as outlined in the Climate Commitment Act? * More information found at RCW 70A.65.260 Sawmills and other wood-processing businesses generate extremely large volumes of sawdust, offcuts, waste wood in the form of cut-offs and culls, and planer shavings. In the absence of processing, these materials decay and rapidly release greenhouse gases. In the Industrial Symbiosis Park proposed here, however, 100% of these waste streams will be innovated into value-added products that generate economic activity and, in some cases, sequester carbon. Diverting these wood-waste streams to create an array of mulches and renewable biofuels, in the context of the Industrial Symbiosis Park proposed here, can mitigate the effects of climate change on rural poor in several ways: • The jobs created will boost family incomes, which then support better nutrition and health care. • Raw materials in the form of logs are extremely heavy and bulky. As the only major wood-processing facility in Jefferson County, the availability of JTC is leading to a dramatic reduction in transportation costs and fossil fuel use in trucking logs to mills. For example, prior to JTC’s formation local forest owners had to ship logs over 65 miles or more to mills located in neighboring counties, creating a 130-mile round trip. The same forest owners now can ship logs to JTC and cut the emissions required for transportation by 50-75%. • Lumber and other construction materials are heavy. JTC’s emphasis on serving local markets results in shorter supply chains and substantially reduced transportation costs and fossil fuel use. • The waste streams that result from wood processing are extremely heavy and bulky. By co-locating wood- and waste-processing businesses at the Industrial Symbiosis Park, the emissions required to ship residuals to waste disposal sites will be reduced to essentially zero. • The biofuels generated in the Industrial Symbiosis Park proposed here are renewable and replace propane and other fossil fuels commonly used in rural areas like ours, leading to significant long-term reductions in fossil fuel use. • The landscaping and agricultural mulches generated in the Industrial Symbiosis Park proposed here conserve water and build soil organic matter–meaning that they sequester carbon. • Finally, the role that JTC is playing in supporting ecological forestry–detailed in Question 15–has the potential for making a material difference in the frequency and intensity of forest fires on the Olympic Peninsula, and thus carbon dioxide release from timber lands. 17. How will your organization measure the outcomes of this project? Please explain how you will track and report data such as waste diverted, greenhouse gas reductions, benefits to overburdened communities, cost savings, job creation, efficiency gains, market development, or other relevant results. * Please include the target metrics you will anticipate reaching as a result of this project: Waste diverted- Jefferson Timber Cooperative tracks each of its waste streams in units of cubic yards and uses extrapolations from direct measurements to estimate the average total annual volumes of each type of waste produced per board foot of sale-able product. When the Industrial Symbiosis Park is operational, this assessment will be re-done annually using these types of extrapolations in concert with direct measurements of waste streams produced by any new processing steps (e.g. planing, moulding), inventories of stored waste stream material that is waiting for upcycling, and sales tickets quantifying the volumes of innovated product sold. Benefits to overburdened communities via job creation- In its annual report, JTC declares the number and nature of employees in its employ and in the employ of member business, along with notes on changes in job numbers, the nature of the positions involved, any relevant professional development activities, and wage and benefit levels. Market development- In its annual report, JTC includes a section devoted to waste processing and circularity, with a special emphasis on research and development directed at 1) recruiting new member businesses that can contribute to circularity when co-located and 2) expanding JTC’s own capacities to divert waste streams into innovative new products. This work by the Executive Director and Board is part of a continuing effort to expand JTC’s product offerings and market reach. 18. Will this proposed project result in the creation of direct full-time equivalent (FTE) jobs? Please include the target metrics you will anticipate reaching as a result of this project: Yes If "yes", please specify the job types and the number of positions anticipated: Shorter term, developing the Industrial Symbiosis Park will provide jobs at prevailing wages to Jefferson County Public Utility District employees, a local electrical contracting firm, a local general contracting firm that employs skilled, heavy equipment operators to do site development, and administrative and engineering staff at the Port of Port Townsend. Longer term, the Jefferson Timber Cooperative projects that in 2026 and 2027 alone, developing the Industrial Symbiosis Park proposed here will support job growth in rural manufacturing and forestry as follows: • Expanding JTC’s Executive Director’s role from 33% time to full time; • Expanding JTC’s Operations Manager role from 50% time to full time; • Expanding JTC’s two 50% time yard assistant positions to full-time, to handle waste- stream processing and fulfill orders for biofuels and mulches; • Expanding JTC’s three 15% time marketing assistant positions to one FTE; • Adding 3 FTE positions to Trillium Timber’s crew to operate new machinery coming on line to process wood, divert waste streams, and directly manage production of biofuels; • Expanding Wayland Constructive’s kiln operator position from 15% to 50% time; • Adding two FTEs to Boots on the Ground Forest Services’ biofuel service, which operates on a community-supported-agriculture (CSA) model. Most of these jobs are entry-level positions that build skills and professional identity and offer a livable wage for individuals with a high-school education. The Timber Co-op is committed to hiring local residents who are currently underemployed. 19. Will any current or former Washington state employees be paid to participate in this project or do they serve on any board of directors involved in this project as of the date of this application? Both the Port of Port Townsend and the Jefferson Timber Cooperative confirm that no current or former Washington state employees will be paid to participate in this project or serve on any board of directors involved (e.g. Port Commissioners or JTC Board Members). Attachments Application Attachment File Upload (30 MB limit per file) * Please upload the following required documents to support your application: 1. Project Budget (limit to two (2) pages in PDF format) 2. Match Funding Plan (limit to two (2) pages in PDF format) 3. Certifications and Assurances (Exhibit A) signature required 4. Diverse Business Inclusion Plan (Exhibit B) 5. Workers’ Rights Certification (Exhibit C) signature required 6. (if applicable) Letter of Intent/Memorandum of Understanding and/or Land Use Zoning/Permits (in PDF format) Port of Port Townsend Industrial Symbiosis Grant Budget 2026 Project component Item Example vendor Cost Notes/justification Design and permitting Finalize design Jefferson Timber Cooperative $ 7,500 For permitting package and construction documents Permit Fees Jefferson County $ 3,000 Stormwater, grading, construction Electrical service Power to site Jefferson County PUD $ 108,000 800 amp, three-phase service from pole to central transformer Power to operational sites Double D Electric $ 100,000 Distribution to four individual, co-located businesses Road access Access aprons-expansion Asphalt firm TBD $ 30,000 Two approved by WSDOT, includes new culverts 1200' gravel road Seton Construction $ 45,000 Connect site entrances to four co-located businesses Operating pads (gravel)Seton Construction $ 25,000 New or expanded surfaced sites for co-located businesses Water service Hydrant City of Port Townsend $ 50,000 Fire suppression for waste piles and facilities Potable water Jefferson County PUD $ 50,000 New line from closest existing service off-site to central distribution point on site Subtotal $ 418,500 Administration Project management Port of Port Townsend $ 50,220 12% of direct costs; includes bid management, responding to SEPA checklist, reporting Other costs Contingency NA $ 62,775 15% of direct costs and administration Sales tax State of Washington $ 38,502 9.2% of relevant construction-related costs Total project cost $ 569,997 Grant Ask 284,999$ 50% of total project costs RESOLUTION NO. 869-26 A Resolution of the Commission of the Port of Port Townsend AUTHORIZING THE EXECUTIVE DIRECTOR TO FILE AN APPLICATION WITH THE WASHINGTON STATE DEPARTMENT OF COMMERCE, SEEKING INDUSTRIAL SYMBIOSIS GRANT PROGRAM FUNDING TO SUPPORT SITE IMPROVEMENTS TO CREATE AN INDUSTRIAL SYMBIOSIS PARK AT THE JEFFERSON COUNTY INTERNATIONAL AIRPORT. WHEREAS the Port of Port Townsend ("Port") is a municipal corporation established in 1924 under Title 53 of the Revised Code of Washington (RCW); and WHEREAS under Title 53 RCW the Port is responsible for developing and maintaining infrastructure and facilities that foster economic development and the well-being of communities throughout Jefferson County; and WHEREAS since completing a US Department of Commerce Feasibility Study in 2011, the Port has sought to establish an Eco -Industrial Park located at the Jefferson County International Airport (JCIA); and WHEREAS in December of 2024, Jefferson County approved an expansion to the Airport Overlay-Ill land use designation and zoning at the JCIA to allow non-aviation-related light industrial development, promote the economic vitality of Jefferson County, and facilitate the establishment of an Industrial Symbiosis Park at the JCIA; and WHEREAS in March of 2025, the Port executed a long-term {30 -year) lease agreement with the Jefferson Timber Cooperative (JTC) for a 12.25-acre site within the expanded Overlay-Ill designation at the JCIA with the expectation that the site would be developed and used to support the local wood economy by hosting uses that collaboratively and symbiotically complement one another (i.e., an Industrial Symbiosis Park); and WHEREAS establishing an Industria l Symbiosis Park on the JTC site would help to foster a more resilient local supply chain, grow economic opportunities, and ultimately reduce environmental impacts in our community; and WHEREAS site improvements, including extension of PUD three-phase power, provision of potable water and fire flow, and site access and internal road improvements are necessary to achieve the Port's vision of establishing an Industrial Symbiosis Park on the JTC site; and WHEREAS the Washington State Department of Commerce is now accept i ng Industrial Symbiosis Grant (ISG) Program app l ications to fund collaborat ive projects that spur the circular economy, divert waste streams generated by one industry into beneficial resources for another and reduce adverse environmental impacts; and WHEREAS the Port wishes to apply for up to $300,000 in Industrial Symbiosis Grant Program funding to help advance the design, permitting and construction of site improvements to facilitate the creation of an Industrial Symbiosis Park at the JCIA, the total cost of which is presently estimated to require up to $600,000; and WHEREAS the proposed funding request conforms to the Industrial Symbiosis Grant Program guidelines; and WHEREAS the minimum match requirement is satisfied by the Port's proposed match of $300,000 (50%) of direct funding of the total estimated project cost, NOW, THEREFORE, BE IT RESOLVED by the Port Commission of the Port of Port Townsend, as follows: RESOLUTION NO. 869-26 JANUARY 2026 Section 1. Port Executive Director, Eron Berg, or his designee, is authorized to apply to the Washington State Department of Commerce for up to $300,000 in funding for the proposed project, to provide such additional information as may be necessary to secure approval of such application, and to enter into an agreement for Industrial Symbiosis Grant Program funding assistance with Commerce. Section 2. Any grant assistance received by the Port will be used for direct costs associated with implementation of the project referenced above. Section 3. The Port certifies that its matching share of the project funding will be derived from Port of Port Townsend Industrial Development District (IDD) Funds, and that the Port is responsible for supporting all non -cash commitments to this project should they not materialize. Section 4. This Resolution shall become part of a formal application to the Washington State Department of Commerce. Section 5. The Port provided appropriate opportunity for public comment on this application. ADOPTED this 14th day of January 2026, by the Commission of the Port of Port Townsend and duly authenticated in open session by the signatures of the Commissioners voting in favor thereof and the Seal of the Commission duly affixed. ATTEST: ( Carol L. Hasse, President Pamela A. Petranek, Vice President APPROVED AS TO FORM: Port Attorney RESOLUTION NO. 869-26 2 JANUARY 2026 Boots on the Ground Forest Services, LLC 530 W 15th St Port Angeles, WA 98362 info@bootsonthegroundforestry.com 603-393-4640 December 30th, 2025 TO; Department of Commerce Industrial Symbiosis Program, RE: Letter of support for Port of Port Townsend’s proposed IS Park Boots on the Ground Forest Services LLC is writing as a prospective member of the Jefferson Timber Cooperative to express support for the Port of Port Townsend’s proposal for funding an Industrial Symbiosis Park focused on wood processing and wood waste utilization. Boots on the Ground is a Port Angeles based small-scale timber harvesting and forest services company. We specialize in fuels reduction, thinning, and selection harvesting for small landowners. Currently, a significant barrier to our operation is the lack of market opportunity for low value wood. To create this market, we have begun to develop an operational and marketing plan for a firewood business using a Community Supported Agriculture (CSA) subscription model. Firewood is a renewable biofuel and an important source of home heating in Clallam and Jefferson Counties, especially among low-income families. Using wood residuals in the form of jacket boards and other waste generated by Jefferson Timber Cooperative member businesses, along with low-value wood we harvest during thinning operations, would allow us to provide high quality firewood to the local community at competitive rates. If the Port receives IS funding to create essential infrastructure for its proposed Industrial Symbiosis Park, it would incentivize Boots on the Ground to join the Jefferson Timber Cooperative as a member business and co-locate at the Park. We look forward to doing so, and transforming existing waste streams into a valued product with strong local demand. Sincerely, Vincent Reichheld Partner, Boots on the Ground Forest Services LLC Cory Smith Trillium Timber Co. Po Box 281 Nordland, Wa 98358 January 6, 2026 Washington Department of Commerce Industrial Symbiosis Grant Program To whom it may concern, I am writing to express my strong support for the 2026 Industrial Symbiosis Program application submitted by the Port of Port Townsend for the development of 6432 Highway 20, Port Townsend, Washington, a 12.2-acre parcel currently under long-term lease by the Jefferson Timber Cooperative (JTC). Trillium Timber Co. is a co-located member business and a key contributor to local timber production and wood-product utilization. Our operation processes raw logs into green rough-sawn lumber, sawdust, and waste wood. In pursuit of a zero-waste operation and a neutral or negative carbon footprint, we are working to address three infrastructure-dependent needs: Drying and finishing lumber, drying and densifying sawdust, chipping and utilizing wastewood. Trillium Timber Co. has been awarded through USDA and provided matching funding for $740,000 in for equipment that is ready for deployment, including: ● A dry kiln and moulding machine to properly finish lumber. ● A wood-waste boiler system to provide heat for manufacturing, kiln operations, and sawdust drying, while producing biochar byproduct for local sale. ● A hydraulic briquette press to convert sawdust and planer shavings into fire briquettes. ● A wood chipping system provided by JTC to upcycle waste wood into saleable chips in addition to providing biofuel for the boiler. Together, Jefferson Timber Cooperative and Trillium Timber Co. would fully utilize and upcycle all wood byproducts, eliminate waste streams, and open new local markets—advancing a resilient circular timber economy. At present, implementation is constrained by insufficient power infrastructure, limited road access, and the absence of prepared equipment pads. Award of the Industrial Symbiosis Program grant would directly address these barriers and significantly increase the likelihood of project success. This project represents a practical, shovel-ready opportunity to reduce waste, lower emissions, strengthen the local timber economy, and support sustainable manufacturing in Jefferson County. I strongly support the Port of Port Townsend’s application and encourage your favorable consideration. Sincerely, Cory Smith Trillium Timber Co. Po Box 281 Nordland, Wa 98358 Cory@trilliumtimberco.com (360) 531-0983 Washington Department of Commerce Industrial Symbiosis Grant Program To whom it may concern, I am writing to express strong support for the 2026 Industrial Symbiosis Program application submitted by the Port of Port Townsend for the development of 6432 Highway 20 in Port Townsend, Washington, a 12.2-acre parcel currently under long-tenn lease by the Jefferson Timber Cooperative. Wayland Constructive is a locally based timber business whose work centers on kiln-drying regionally harvested lumber, using waste byproducts generated by on-site milling operations. By utilizing wood waste as a heat source for kiln operations, this system converts byproducts that would otherwise be discarded into a critical input for value-added processing. Kiln-dried lumber significantly increases the usability, durability, and market value of locally milled wood, benefiting }?oth timber businesses and the broader community that relies on regional materials. The co-location of Jefferson Timber Cooperative and Wayland Constructive Ile creates a closed-loop system in which miIJing byproducts directly support value-added processing. This integrated approach enables lumber to be processed, dried, and prepared for use on-site, strengthening local supply chains and retaining economic value within Jefferson County. At present, full implementation of this system is constrained by limited power infrastructure, restricted site access, and the absence of prepared equipment pads. Award of the Industrial Symbiosis Program grant would directly address these barriers and enable the deployment of kiln and waste-to-energy systems. This project offers a tangible, place-based example of how industrial symbiosis can support small businesses, reduce material waste, and anchor sustainable manufacturing in rural communities. I strongly support the Port of Port Townsen 's application and encourage your favorable consideration. Cody Wayland, Owner Wayland Constructive LLC waylanconstructive@gmail.com 206.909.8483 7 6432 Highway 20, Port Townsend WA 98368 • jeffersontimbercoop@gmail.com • 360.531.2524 • jeffersontimbercoop.com 13 January 2026 TO: Industrial Symbiosis Grant Program RE: Intention to implement circularity Google searches on our name return “Jefferson Timber Cooperative: Circular Wood Economy.” Although we are not achieving this goal of circularity at present, we aspire to. This aspiration could become realized because the Jefferson Timber Cooperative (JTC) has a 30- year lease with an optional 10-year extension on a 12.2 acre site owned by the Port of Port Townsend, and because the Port is pursuing funding from the Washington Department of Commerce for the infrastructure required to transform this site into an Industrial Symbiosis Park. Industrial symbiosis is consistent with three of JTC’s founding goals: • Collaborating to share capital-intensive equipment and facilities for wood and wood waste processing that are out of the reach of individual microentrepreneurs; • Establishing the land security required for the Co-op and its member businesses to not only invest in the facilities required for each business to achieve its goals, but also be co- located so businesses can share resource flows and achieve circularity; and • Establishing the scale required to operate a zero-waste facility based on upcycling wastes into an array of marketable products—something that is nearly impossible for small sawmills and other wood processors that operate independently of each other and routinely landfill their wastes. The purpose of this letter is not only to express the JTC Board of Directors’ support for the Port’s proposal, but also declare the Co-op’s intent to 1) use its existing equipment, staff, and facilities to accomplish total waste diversion supported by marketing and sales of upcycled products, and 2) direct our growth to take advantage of co-location with member businesses to expand the range of upcycled products can are being processed and sold on site. For us, circularity is a founding goal that continues to guide our business strategy. Sincerely, Scott Freeman Secretary/Treasurer, Board of Directors Industrial Symbiosis Site Port of Port TownsendIndustrial Symbiosis ParkSite Plan