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INFRA Grant ApplicationUS 74 Corridor Opportunities for Rural Efficiency and Safety Improvement (CORESI)

PROJECT INFORMATION

Project Name: US 74 Corridor Opportunities for Rural Efficiency and Safety Improvement (CORESI)

Project Sponsor: North Carolina Department of Transportation

Primary Contact:

Louis M Mitchell, PE Western Deputy Chief Engineer NCDOT [email protected] 1 South Wilmington Street Raleigh, NC 27601 919.707.2511

Was an INFRA application for this project submitted previously NoProject Costs (YOE)

INFRA Grant Request $63,532,250Estimated Federal Funding (Excluding INFRA) $0Estimated Non-Federal Funding $237,396,633Future Eligible Project Costs $300,928,883Previously Incurred Project Costs $24,100,244Total Project Costs $325,029,127Are matching funds restricted to a specific component. If so, which one N/A

Project EligibilityApproximately how much of the estimated future eligible project costs will be spent on components of the project currently located on National Highway Freight Network (NHFN)?

52% of the corridor length is located on the National Highway Freight Network. Approximately $128.4M of the $300.1M of YOE future eligible costs, or 43%, are located the National Highway Freight Network.

Approximately how much of the estimated future eligible project costs will be spent on components of the project currently located on the National Highway System (NHS)?

100%

Approximately how much of the estimated future eligible project costs will be spent on components constituting railway-highway grade crossing or grade separation projects?

N/A

Approximately how much of the estimated future eligible project costs will be spent on components constituting intermodal or freight rail projects, or freight projects within the boundaries of a public or private freight rail, water (including ports), or intermodal facility?

N/A

Project LocationState in which project is located North CarolinaSmall or Large Project Large

Urbanized Area in which project is located, if applicable89% of the project is located in rural regions of the state. Just over 11% of the project is located in the urbanized are of Charlotte

Population of Urbanized Area Charlotte, NC – 1.5 million

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PROJECT INFORMATION

Is the project currently programmed in the: • TIP • STIP • MPO Long Range Transportation Plan • State Long Range Transportation Plan • State Freight Plan

All interchange and bypass projects are currently programmed in the NCDOT STIP with the exception of R-4045:• Shelby Bypass (R-2707D & E)• Interchange R-5797• Overpass R-5819• Interchange R-5820• Interchange R-5751R-4045 will be programmed in the STIP upon successful receipt of grant monies. The provision of fiber optic cabling is included in the Governor’s Long-Range Vision for 2040. Provision and use of technology to serve travelers is called out in State Long Range Transportation Plan All of these projects are also identified in the following long-range planning studies:• North Carolina State Freight Plan (2017)• 2045 Metropolitan Transportation Plan/Gaston Cleveland

Lincoln MPO (2018)• Comprehensive Transportation Plan/Robeson County

(2011)• Comprehensive Transportation Plan/Columbus County

(under study).

Note that full application, all appendices, and all supporting documentation can be found at: https://connect.ncdot.gov/resources/INFRA2020-US74/Pages/default.aspx

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ContentsSummary Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iProject Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Resiliency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Broadband . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Project Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Spatial Coordinates of Project Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Section I: Mooresboro to Shelby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Section II: Charlotte to Rockingham . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Section III: Lumberton to Wilmington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7All Sections: Installation of Fiber Optic Cabling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Project Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Grant Funds, Sources, and Use of All Project Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Merit Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Economic Competitiveness and Travel Time Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Connected and Autonomous Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Innovation and Resiliency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Technology Innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Leverage Federal Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Project Readiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Previous Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Design and Cost Estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Project Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Right-of-way Acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Environmental Regulatory Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Performance and Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Plan to Address Lifecycle Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Identification of Preferred Delivery Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Innovation in Project Delivery and Environmental Clearance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Categorical Exclusion (CE) Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Section 404/NEPA Merger Process and General Permit 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Project ATLAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Large Project Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

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Project Description The US 74 Corridor Opportunities for Rural Efficiency and Safety Improvement (CORESI) project (the Project) is a comprehensive program of highway improvements along approximately 330 miles US Route 74 (US 74) corridor in southern North Carolina between Asheville and Interstate I-40 near Wilmington. Stretching over 500 miles from Chattanooga, TN to Wilmington, NC, US 74 is a vital freight corridor, a primary connector route between Interstates 26, 40, and 85, and 95, and serves as the most direct route between the largest population centers in western and southern parts of state. Connecting the mountains to the sea, US 74 is key to the movement of freight between the Port of Wilmington, Charlotte and the interstate system of the southeastern United States. It is also a crucial evacuation route for the southeast of the state in times of severe weather events . North Carolina’s US 74 corridor passes through largely rural regions of the state and is currently characterized by inconsistencies in travel speeds, recurring bottlenecks at signaled intersections, and a relatively high occurrence of vehicular accidents as the corridor passes directly through regional centers. The primary objectives of the CORESI project are to improve efficiency (travel time),safety, infrastructure resiliency, and the provision of broadband fiber along the entirety of the US 74 corridor between Asheville and Wilmington through a series of intersection-to-interchange upgrades, the completion of the final stages of a major bypass around Shelby, and ITS and signal improvements. Notably, the completion of the Shelby Bypass and the upgrade of the Lattimore intersection to an interchange in Mooresboro will create a freeway facility between Asheville and Charlotte. Lastly, the Project will include the installation of fiber optic cabling along nearly the entire length US 74 project corridor where this is currently not available, enabling future ITS technology and bringing high speed telecommunications including broadband to large swathes of rural North Carolina. The delivery of the Project will bring about a harmonization and continuity of free flow travel conditions along several parts of this key freight

corridor, with outcomes stemming from the implementation of the Project to include: an increase in vehicle capacity; faster travel times throughout the entire corridor; a decrease in recurring and non-recurring congestion; and improved safety conditions resulting in a reduction in accidents and fatalities . Furthermore, the installation of fiber optics cabling along these sections of US 74 will enable the foundation for the future deployment of ITS technologies providing tremendous potential for many other communications mechanisms including broadband internet, cameras, and future connected and autonomous vehicle (both passenger and freight) technology. The rural and semi-rural communities along the candidate project corridor currently lack adequate broadband services, isolating these communities from opportunity, hindering economic growth, and generating safety implications through inconsistent access to 911 and emergency services .The impact on commercial road freight movement as a result of the delivery of The Project will be significant. In improving the consistency of control of access through more than 300 miles of the US 74 corridor, commercial freight will be able to traverse the southern part of North Carolina and connect to a significant part of the country’s eastern interstate system in a reliably more efficient and safer manner. The majority of intersection-to-interchange upgrades within the Project take place between on the nationally recognized Critical Rural Freight Corridor (CRFC) between the Port of Wilmington and Lumberton and will both enhance commercial road freight movement between the Port and Interstate 95, the freight backbone of the Atlantic Coast, as well as between the Port and Charlotte, the largest city in the Carolinas.

\ Efficiency

Currently, travel along the US 74 corridor between Asheville and Wilmington is characterized by inconsistencies in travel speed . As the corridor traverses the southern sections of the state, the allowable speed limit decreases from 55 mph to 45 mph or 35 mph before returning to 55 mph once outside the communities, increasing to 70

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mph in portions where US 74 runs concurrently along Interstate 74. Signalized intersections as the corridor passes through certain rural and regional communities cause through traffic to come to halt causing recurring congestion in those areas . The implementation of the CORESI project will deliver controlled access and continuity of allowable highway speeds along the several key sections of the US 74 corridor between Asheville and Wilmington. In upgrading intersections to interchanges in five locations along the project’s alignment, as well as completing the bypass of Shelby, as well as the provision of signal synchronization in those areas where signalized intersections remain, commercial and passenger vehicles will be able to move along the corridor in a significantly more efficient manner. This in turn, could cause an increase in the number of commercial freight vehicles utilizing the corridor to traverse the state, thereby leading to a general, albeit moderate, reduction in congestion along the state’s interstate system as drivers choose to utilize the more efficient US 74 corridor. As discussed in more detail in the application’s Merit Criteria section, it is estimated that the delivery of the CORESI project will result in the reduction of nearly 6 million and 54 million commercial and passenger travel hours, respectively, in its first thirty years of operation .

\ Safety

Vehicular accidents and fatalities occur with regularity along the US 74 corridor with many of these accidents caused in part to the consistently variable speed limits. Drivers failing to reduce their speed as they approach intersections in rural and regional communities has led to a heightened occurrence of rear end collisions . Several of these have proven fatal, such as a July 2019 accident in which a commercial driver, failing to reduce their speed as they approached the Lattimore intersection in Mooresboro (shown in Figure 1) plowed into a series of cars stopped at the intersection, resulting in a fatality and several injuries .

Figure 1: Fatal Read End Collision at Lattimore Intersection, Mooresboro, NC

Source: Shelby Star

The upgrading of five intersections along the US 74 corridor, including the aforementioned Lattimore interchange at Mooresboro, will significantly reduce the potential for rear end collisions through the elimination of variable speed limits and signalized intersections as the corridor passes through these communities. In general, the continuity of allowable speed reduces the probability of all typologies of vehicular accidents and in delivering controlled access along the majority of its alignment between Asheville and Wilmington, the US 74 will become a safer, more efficient highway corridor. Furthermore, the installation of fiber optic cabling and various ITS mechanisms will both allow for faster average response times by emergency services and adaptive traffic management through real time notification of traffic incidents. As discussed in more detail in the application’s Merit Criteria section, it is estimated that the delivery of the CORESI project will result in the avoidance of 1,910 accidents and 23 fatalities along the US 74 corridor in its first thirty years of operation .

\ Resiliency

The US 74 corridor between Wilmington and Lumberton is a key evacuation corridor for coastal communities during major storm events. The state has experienced significant disruptions to transportation mobility and connectivity with recent Hurricanes Matthew and Florence, with the latter (coupled with riverine flooding) turning

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Wilmington into a veritable island for a sustained period. The ability to forecast, report, and scenario test transportation infrastructure flooding provides operational awareness that is critical during these events to minimize disruptions and save lives . To address the regular, and increasing, occurrence of major storm events in North Carolina, NCDOT, partnering with the Federal Emergency Management Administration (FEMA) developed the Flood Inundation Mapping Alert Network for Transportation (FIMANT). This system is a web-based tool used to provide NCDOT officials and emergency management stakeholders with real-time and forecasted flood inundation depths along roads, bridges, and other NCDOT assets in support of risk-based decision-making during flooding events .Various ITS elements – specifically gages and sensors distributed along the roadway and on structures – to be installed as part of the CORESI project, coupled with the installation of fiber optic cabling to enable this ITS components, will expand the scope, functionality, and efficacy of the state’s FIMANT network. The delivery of these components will significantly increase the resiliency capabilities of the US 74 corridor, enhancing NCDOT’s responsiveness during major storm and flooding events by generating data and reports for use in disaster response and planning.

\ Broadband

The installation of fiber along the entirety of the US 74 corridor between Wilmington and Asheville would enable the utilization of various ITS mechanisms resulting in improved efficiency and safety metrics. The deployment of ITS elements enabled by the fiber backbone along the corridor, such as variable synchronization of traffic signals to address changing traffic patterns, will result in faster average travel times for both commercial and passenger traffic. The capability of emergency services will be enhanced, with real time notification of incidents leading to faster response times. ITS elements enabled by the installation of the fiber backbone along the corridor will allow for the more holistic coordination and control of traffic management

during major weather event such as hurricanes. This investment will also permit NCDOT to manage the corridor in a coordinated manner with I-95 and US-70 (Future I-42) where fiber is already being installed under a separate INFRA grant, and implement state-of-the-art wind and water monitoring, prepare for future implementation of connected and autonomous vehicles .The installation of fiber optic capacity lines in the highway rights-of-way prepares the US Route 74 corridor for adoption of connected and autonomous vehicles . While the rate of adoption for connected and autonomous vehicles is growing and the subject of much industry speculation, the transportation industry has agreed that it is no longer a question of if there will be connected and autonomous vehicles but rather the question is when they will be prevalent. Moreover, there is a cost to not preparing to support the adoption of this emerging technology as applications of the newest transportation innovations will not be supported in lagging economies—sending economic growth elsewhere . The US 74 Corridor Opportunities for Rural Efficiency and Safety Improvement project proactively positions the nationally significant US 74 corridor to be prepared for this transportation revolution. Lastly, the installation of fiber optic cabling along the corridor would significantly augment state’s broadband network access to rural regions. This would provide significant societal benefits to these outlying rural regions and in areas with pockets of disadvantaged communities. The delivery of the CORESI project will result in the realization of multifaceted outcomes improving the safety, efficiency, and resiliency of the US 74 corridor between Asheville and Wilmington. Commercial road freight between the Port of Wilmington to Charlotte, the interstate system, and Asheville, moving along the corridor in a more efficient manner with much of the recurring congestion, safety incident hotspots alleviated or eliminated through the project’s improvements. The introduction of ITS elements, as supported by the installation a fiber optic spine along the entirety of the US 74 corridor, will enhance the state’s capability to address traffic management – including the movement of road freight – before, during, and following major storm events.

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Project LocationThe CORESI project name comprises ten discrete components:

y The conversion of the Lattimore intersection in Mooresboro to an interchange (R-4045);

y The completion of the remaining two segments of the Shelby Bypass (R-2707 D & E);

y The conversion of four signalized intersections to interchanges along the corridor between Interstate-95 (near Lumberton) and Interstate 140 (near Wilmington) in eastern North Carolina (R-5797, R-5819, R-5820, and R-5751);

y The installation of ITS technologies to enable signal synchronization, improve traffic management, monitoring, and incident response;

y Vulnerability and stress testing to assess performance of infrastructure assets in flood prone areas during major weather events;

y The installation of approximately 280 miles of fiber optic cabling along the US 74 corridor between Wilmington and Asheville in remaining areas where it is not already installed.

With the exception the installation of fiber optic cabling, the CORESI project’s components are generally located in three sections of the US 74 corridor, as shown below in Figure 2. For simplicity of project component identification, the three sections of the US 74 corridor where infrastructure works are proposed are referred to as Sections I, II, and II, and are shown Figure 2.

\ Spatial Coordinates of Project Location

The CORESI project boundaries are at the US 74’s meeting with the I-40 in Asheville (82° 36’ 42”W 35° 33’ 16”N) in the west and where the corridor meets the I-140 west of Wilmington (78° 4’ 48”W 34° 15’ 30”N) in the east .

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Figure 2: Map of CORESI Projects

Source: NCDOT, AECOM

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The following is a more detailed description of each of the components of the project.

Section I: Mooresboro to ShelbyTwo components of the CORESI project are located in Section 1 . These two components are:

y Upgrade of Lattimore intersection into an interchange; and y Completion of segments D & E of the Shelby Bypass.

Figure 3: CORESI Project: Segment I Components

£¤74 R-4045

R-2707D

R-2707E

SECTION I

+ ITS Infrastructure

New Broadband Fiber through INFRA

2685

Source: AECOM

Lattimore Interchange at MooresboroThere is currently no existing control of access as the US 74 passes through Mooresboro. The CORESI project proposes constructing a grade separated interchange as SR 1168 (Lattimore Road/Academy Street) thereby removing the existing signalized intersection and allowing for the free flow of traffic. This project component will be programmed in the STIP as R-4045 with the successful receipt of grant monies, and conceptual design for the interchange can be found in the Supplemental Materials, provided with the application .

Shelby Bypass Segments D & EA regional center with a population of approximately 20,000, Shelby is the county seat of Cleveland County and the largest population center between Asheville and Charlotte along the US 74 corridor. Home to a major Walmart distribution center, Shelby is one of the largest generators of freight traffic along the western aspects of the corridor. Congestion occurs regularly as US 74 through travelers combine with local traffic and encounter Shelby’s several signalized intersections. Construction of Section A of the 17-mile bypass of Shelby began in 2013 and Section B began in 2014, with both segments being completed in 2018. Construction on Section C began in 2017 and is scheduled to be completed in 2022. Construction on the remaining two sections, comprising roughly seven miles, are slated to commence in 2023 with completion scheduled in 2026. The completion of the Shelby Bypass will result in through traffic avoiding the congested arterial through Shelby, thereby delivering faster travel times, improved safety conditions through the avoidance of interaction with local traffic and variable speeds, and the more efficient movement of road freight along this section of the corridor.

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With the completion of the Shelby Bypass and the Lattimore interchange in Mooresboro, motorists will have a full freeway facility with free-flow conditions and full control of access between Asheville and Charlotte.

Section II: Charlotte to Rockingham Between Charlotte and Rockingham, the US 74 corridor passes through urban, suburban, and rural settings. With thirteen miles of this sections designated as a Critical Urban Freight Corridor (CUFC) under the National Highway Freight Network, much of this section is characterized by a high number of signalized intersections. NCDOT’s Office of Logistics + Freight estimates delay in at these intersections resulted in approximately $3.5M in cost of delay to commercial enterprise between 2017-2019. The CORESI project proposed the installation of ITS infrastructure through this section which, enabled by the fiber optic cabling to be installed over half the length of Section II, will enable signal synchronization and improved traffic management and monitoring. The fiber optic cabling and ITS infrastructure will allow for the synchronization and enhancement of up to ten existing closed loop systems (including the busy urban centers at Monroe, Marshville, and Wadesboro), better coordinating almost 80 signals along US Route 74 between Charlotte and Rockingham. An overview of the Segment II CORESI project components are shown in Figure 4.

Figure 4: CORESI Project: Segment II Components

Source: AECOM

Section III: Lumberton to Wilmington Section III of the CORESI project begins near its convergence with Interstate 95 and terminates at its convergence with Interstate 140. The entirety of the US 74 corridor in Section III is designated as a Critical Rural Freight Corridor and it runs concurrent with Interstate 74 for approximately three miles in the section. Project components within Section III include the construction of four grade separations (three interchange and one grade separation) to replace existing signalized intersections and the installation of gauges and other ITS elements. The ITS technologies will be installed along the roadway and on existing structures to expand the capability of the state’s traffic management systems thereby improving infrastructure resiliency and the capability of the state’s coordination and response in the face of major storm events. In Section III,

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proposed broadband fiber along US Route 74 will connect to existing fiber from I-140 to Wilmington’s Traffic Management Center (TMC).

Figure 5: CORESI Project: Segment III Components

Source: AECOM

Section III, Interchange 1The existing at-grade signalized intersection at Boardman Road will be replaced by a grade separated interchange. This project component is programmed in the STIP at R-5797, and preliminary design for the interchange can be found in the Supplemental Materials, provided with the application.

Section III, Interchange 2The existing at-grade signalized intersection at Chauncey Town Road will be replaced by a grade separated interchange. This project component is programmed in the STIP at R-5751, and preliminary design for the interchange can be found in the Supplemental Materials, provided with the application.

Section III, Interchange 3The existing at-grade signalized intersection at NC 72/ NC 130 will be replaced by a grade separated interchange. This project component is programmed in the STIP at R-5820, and preliminary design for the interchange can be found in the Supplemental Materials, provided with the application.

Section III, Grade SeparationA grade separation will be constructed over Old Lake Road, allowing for free flow traffic on US 74 over the existing at-grade intersection. This project component is programmed in the STIP at R-5819, and preliminary design for the grade separation can be found in the Supplemental Materials, provided with the application .

ITS Installations, Flood Gauge Devices, and Vulnerability TestingA variety of ITS technologies will be installed in Segment III. Traffic incident/event management capital improvements to this section will include dynamic message board signs for real-time communication

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with roadway users and traffic cameras for real-time remote traffic monitoring. Flood gauge devices will be installed in flood prone areas to allow for real-time infrastructure monitoring and rerouting during weather events in Columbus and Brunswick Counties. Lastly, NCDOT will implement vulnerability assessments and stress tests of portions of Segment III to test the performance of known flooding locations with a range of design storms to determine when and how long flooding occurs through intensive hydraulic modeling.

All Sections: Installation of Fiber Optic Cabling NCDOT proposes laying down approximately 280 miles of fiber optic cabling along the US 74 corridor between Asheville to Wilmington. In addition to enabling the various ITS infrastructure included in the program of works of the CORESI project, thereby facilitating the faster movement of passenger and freight movement along the corridor, the fiber backbone will enable future ITS elements such as those addressing dynamic traffic management and connected/automated vehicles. The fiber backbone will bring high speed telecommunications to the rural and regional communities along the US 74 corridor, providing a platform for increased economic development and improved social equity for their residents. The installation of the fiber optic cabling also presents a significant revenue generating opportunity for NCDOT through the leasing of the cable to the various telecommunication providers .

Project Parties NCDOT is responsible for maintaining approximately 80,000 miles of roadways and 18,000 bridges and culverts across North Carolina, as well as supporting rail, aviation, ferry, public transit, bicycle and pedestrian transportation. With an annual operating budget of about $5.0 billion, the NCDOT is responsible for building and maintaining the State’s transportation network. Federal funding accounts for a little over 20

percent of NCDOT’s overall budget and about 45 percent of its construction budget, generated through the federal motor fuel tax and vehicle fees (mostly on trucks). NCDOT understands USDOT reporting requirements and maintains the records and accounting systems that will allow it to comply with USDOT’s reporting and administration requirements .The Department’s role(s) for the Project includes:

y INFRA 2020 Discretionary Grant Applicant and Recipient responsible for administering the grant if selected for award;

y Funding partner; y Owner/acquirer of the right-of-way; y Ensuring efficient integration of the CORESI

project into existing programs of highway upgrades along the US 74 corridor, as well as planned projects;

y Oversight of the capital project delivery; y Monitor operations and maintenance

standards for outsourced services and maintain assets where outsourced agreements do not apply; and

y Innovative contracting partner with the potential to generate revenue from the leasing of fiber optic cable in the corridor right-of-way to private sector telecommunications providers .

The program manager and grant administrator for the CORESI project will be Louis M Mitchell, PE, NCDOT’s Western Deputy Chief Engineer.

Grant Funds, Sources, and Use of All Project Funding

The total costs of delivering the CORESI project is estimated at approximately $280.5 million. An overview of the project costs associated with each of the individual components of the CORESI project is shown in Table 1 . All costs provided in $2020.

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Table 1: CORESI Project Funding

PROJECT COMPONENT STIP COMMITTED

FEDERALCOMMITTED

STATEINFRA FUNDS

TOTAL COST

PREVIOUSLY EXPENDED

Shelby Bypass R-2707D&E $0 $120,500,000 $10,000,000 $130,500,000 $19,242,000

Lattimore Rd . Interchange R-4045 $0 $3,140,000 $12,560,000 $15,700,000 $0

Boardman Rd. Interchange R-5797 $0 $27,200,000 $0 $27,200,000 $1,660,364

Old Lake Rd. Interchange R-5819 $0 $14,175,000 $0 $14,175,000 $1,102,578

Chauncey Town Rd. Interchange R-5820 $0 $26,906,000 $0 $26,906,000 $610,337

NC 72/NC 130 Interchange R-5751 $0 $20,700,000 $0 $20,700,000 $1,491,163

Broadband & ITS N/A $0 $8,621,000 $34,484,000 $43,105,000 $0

Resiliency N/A $0 $440,000 $1,760,000 $2,200,000 $0

Total Cost $0 $221,682,000 $58,804,000 $280,486,000 $24,106,442

Source: NCDOT

This table includes the $24.1M in costs already expended by NCDOT on design, preconstruction, and construction activities. These sunk costs have also been appended to the total project cost in the application’s quantitative analysis, a technical memorandum for which can be found in the Supplemental Materials, provided with the application. Together, the total project cost is approximately $305M.

\ Use of Funds

This grant application is focused on improving the safety and efficiency of mobility across the US 74 corridor in North Carolina and improving the resilience of its assets and traffic management systems. Approximately eighty nine percent of the project’s $280.5 million capital costs are associated with construction; the remainder is for design, right-of-way acquisition, engineering, construction management and project management. $24.1M has already been expended on projects components, approximately $19M of it on Shelby Bypass sections D & E. Four of the five interchanges have incurred costs thus far averaging $1.2M.

Merit CriteriaThe delivery of the CORESI project will generate benefits and impacts which align directly with several of the sought-after outcomes and merit criteria of the INFRA program. Most notably, the project will deliver significant economic benefits related to more efficient and safer freight travel along the US 74. Each of the project components which make up the larger CORESI project are shown to be cost effective, and the overall project delivers a benefits-costs ratio (BCR) of 2.5:1 at a 7% discount. A detailed technical memorandum discussing the methodology, approach, assumptions, and finding of the benefits-costs analysis (BCA) can be found in the Supplemental Materials, provided with the application.

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\ Economic Competitiveness and Travel Time Savings

The proposed improvements of the CORESI project – particularly those which will alleviate congestion through the provision of free-flowing controlled access, will generate significant time savings for both commercial and personal users of the US 74 corridor. Bundled together, the ten components of the CORESI project generate approximately $395M in efficiency benefits representative of faster travel times and reduced congestion. Completing the Shelby Bypass will remove conflict with local traffic and will result approximately $140M in travel time savings and operating cost benefits. The delivery of the five proposed interchanges will result in a combined reduction in passenger vehicle travel times and commercial truck operating hours estimated at $87M over the thirty-year assessment period. The myriad ITS upgrades and installations along the US 74 corridor are estimated to generate $165M in combined efficiency benefits.

Connected and Autonomous VehiclesThe installation of fiber optic cable along the corridors would provide the groundwork for the future of autonomous vehicles . Fiber optic cable would be constructed by 2026 along the US 74 corridor. As smart vehicles are becoming more affordable, drivers will increasingly be driving autonomous vehicles. Preparing the transportation infrastructure for these new vehicle capabilities allows for the continued safe and efficient movement of goods and people along corridors. The eventual utilization of the connected and autonomous vehicles will further improve safety. The delivery of the CORESI project will deliver an estimated $133M in benefits over the assessment period .

\ Safety

Delivering projects which reduce the number of accidents and fatalities on North Carolina’s roads is the top objective of NCDOT . It is estimated that

the delivery of the CORESI project’s interchange improvements and Shelby Bypass sections D&E will, over its first thirty years of operation, result in 1,900 fewer accidents, four hundred fewer injuries, and twenty-three less fatalities than if the project was not to take place. Safety benefits associated with the delivery of the CORESI project generate approximately $93M over the thirty-year assessment period .

\ Innovation and Resiliency

Various ITS elements – specifically gages and sensors distributed along the roadway and on structures – to be installed as part of the CORESI project, coupled with the installation of fiber optic cabling to enable this ITS components, will expand the scope, functionality, and efficacy of the state’s FIMANT network. The delivery of these components will significantly increase the resiliency capabilities of the US 74 corridor, enhancing NCDOT’s responsiveness during major storm and flooding events by generating data and reports for use in disaster response and planning.

Technology Innovations

Using ITS to manage capacity and prepare for connected and autonomous vehiclesThe fiber cable capacity has both near-term and longer-term applications. In the near term, NCDOT can connect communications and monitoring equipment to implement integrated corridor management (ICM) practices to obtain more reliable throughput. Utilizing this new communications infrastructure to manage traffic through ICM is anticipated to reduce the incidence of crashes, reduce emissions, and utilize capacity more efficiently. Longer-term, the provision of fiber cable prepares the corridor for eventual adoption and use of autonomous and connected vehicles . The agency is proactively preparing these corridors for future technologies as the market evolves. The ability to accommodate future technologies is important given the critical role that these corridors play in the national highway travel network.

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Opportunity Creation Through Provision of BroadbandThe installation of fiber along the entirety of the US 74 corridor between Wilmington and Asheville would enable the utilization of various ITS mechanisms resulting in improved efficiency and safety metrics. Furthermore, the installation of fiber optic cabling along the corridor would significantly augment the state’s broadband network access to rural regions. This would provide significant societal benefits to these outlying rural regions and in areas with pockets of disadvantaged communities. High speed telecommunications provide greater accessibility and opportunity to these communities – for employment, education, and healthcare and could be considered as a proxy for the members of these communities to pursue their goals. Enhanced connectivity and the opportunity it will provide will enable the improved livability of these communities, as well as fostering economic development and investment attraction, thus equating to an improved quality of life. In this sense, the installation of fiber along the US 74 corridor can be seen as an agent of social equity.

\ Leverage Federal Funding

NCDOT and its project partners has committed to contribute approximately $222M of state funds toward the CORESI project. This excludes approximately $24M of state funds that have already been expended. This represents a local match of approximately 79%, with the INFRA ask of $58.8M making up the remaining 21% of the project costs .

Project ReadinessShould the Project be approved for INFRA grant funding, NCDOT is ready for obligation as soon as the necessary documentation can be executed. All components of the US 74 CORESI project will be programmed in the STIP if the requested INFRA grant monies are received. The Project has been developed through extensive planning with public consultation, with preliminary engineering and design nearly complete on several major

components . All proposed investments are located within an active highway corridor, with no change in the existing land use. The environmental process is underway. Mitigation for environmental permits is facilitated by a Division of Mitigation Services. The 401/404 permitting requirements would be coordinated with the North Carolina Department of Environmental Quality.

\ Previous Studies

The components of the CORESI project have been identified as priority projects in state and regional long-term planning, including the following:

y 2045 Metropolitan Transportation Plan/Gaston Cleveland Lincoln MPO (2018)

y Comprehensive Transportation Plan/Robeson County (2011)

y Comprehensive Transportation Plan/Columbus County (under study)

The provision of fiber optic cabling is included in the Governor’s Long-Range Vision for 2040. Provision and use of technology to serve travelers is called out in State Long Range Transportation PlanLinks to the above studies can be found at the CORESI applications website, https://connect .ncdot.gov /resources/INFRA2020-US 74/Pages/default.aspx .

\ Design and Cost Estimation

The designs and cost information presented in the Supplemental Materials are based on recent similar successfully completed projects by NCDOT. The Project will use a combination of Design-Bid-Build,Design-Build, or Progressive-Design-Build procurement methods. There is a 45 percent contingency on roadway items and 15 percent on structure items . The cost estimates are the result of a preliminary engineering study that evaluated the existing facilities and the feasibility of the proposed improvements employing appropriate design criteria. All costs and designs have been reviewed by NCDOT’s engineering staff. NCDOT’s hydraulics team has reviewed all proposed resiliency investments and the proposed modeling strategy.

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\ Project Schedule

Certain components of the CORESI project are already undergoing design and preconstruction activities. Construction is proposed to commence in Q2 of 2021 on the interchange components and construction is scheduled to be completed on all project component by Q4 of 2026. Assuming awards are made in mid-2020 and it takes the balance of the year to complete an agreement, the environmental work could begin on several of the project elements immediately in 2021. Construction can begin quickly within 18 months of completion of environmental work—no later than 2023.A gaant chart of the schedule for the Shelby Bypass, the five interchanges and the installation of fiber optic cabling is shown in Figure 6. A gaant chart of the schedule for the CORESI project resiliency elements is shown in Figure 7.

Figure 6: Proposed Schedule for the Delivery of the CORESI Project Highway Construction Elements


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Figure 7: Proposed Schedule for the Delivery of the CORESI Project Resiliency Elements


\ Right-of-way Acquired

Table 2: Anticipated Dates of Environmental Clearance by Project Component

STIP PROJECT DESCRIPTIONFINAL

ENVIRONMENTAL DOCUMENT

SCHEDULED DATE

US 74 Improvements

R-2707D&E Four lane divided freeway on new location. East of NC 150 to West of SR 1001 (Stoney Point Road). EIS ROD Complete

R-4045

Upgrade expressway to freeway with interchange at SR 1168 (Academy Street/Lattimore Road). Make modifications to SR 1257 (Duncan Drive) and SR 1167 (Main Street) to control access on US 74 and provide alternate access to adjacent properties .

CE Anticipated based on similar projects Summer 2022

R-5797 SR 1506 (Boardman Road). Upgrade at-grade intersection to an interchange. CE Complete

R-5819 SR 1740 (Old Lake Road). Convert at-grade intersection to overpass . EA Spring 2020

R-5820 SR 1735 (Chauncey Town Road). Convert at-grade intersection to interchange. EA Spring 2020

R-5751 NC 72/NC 130. Upgrade at-grade intersection to interchange. CE Spring 2020

Broadband & ITS Broadband along US 74 from Asheville to Wilmington. CE anticipated based on similar projects Winter 2021

Source: NCDOT

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All proposed investments are located within an active highway corridor, with no change in the existing land use. NCDOT will require additional acquisition of right-of-way for the delivery of the CORESI project. Right-of-way acquisition needs have been studied through the various feasibility studies and environmental documents completed or under way for projects R-2707D&E, R-4045, R-5797, R-5819, R-5820, and R-5751.

\ Environmental Regulatory Requirements

The environmental process is underway. Mitigation for environmental permits is facilitated by a Division of Mitigation Services. The 401/404 permitting requirements would be coordinated with the North Carolina Department of Environmental Quality and any participating federal agencies. Based on project experience elsewhere in the Project area, it is anticipated that the appropriate National Environment Policy Act (NEPA) action is a documented Categorical Exclusion (CE) in most cases with two Environmental Assessments (EAs) required. However, it is recognized that the FHWA will make the determination regarding the NEPA action required . NCDOT’s participation in USDOT’s innovative environmental process and also in the Pilot Program to use GIS scans of the project area to reduce data collection will help expedite project implementation . If, for unforeseen reasons, the project does not qualify for a categorical exclusion, NCDOT has institutionalized several environmental review innovations from FHWA’s Every Day Counts Toolkit to expedite environmental review which could be applicable to elements of the CORESI project’s program of

\ Performance and Accountability

This section describes NCDOT’s plan to address lifecycle costs, the construction performance metrics it will meet to demonstrate its accountability in the delivery of this Project, and its efforts to foster interstate commerce .

Plan to Address Lifecycle Costs NCDOT’s approach to providing for operations and maintenance funding is one of the innovations of the Project. NCDOT planning to issue a procurement to handle maintenance of US 74 under a Flexible Asset Management Services (FAMS) contract that outsources these activities to the private sector . Under this approach, performance standards and levels of service will be established under the contracts to ensure the lowest life-cycle costs are achieved. NCDOT will manage the operations and maintenance of improved US 74 corridor with its own resources . As this is an upgrade of an existing facility, the additional operations and maintenance costs represent a small fraction of the Department’s existing responsibilities.

Accountability North Carolina regularly uses performance metrics to track outcomes over time and assesses investments through the STI process to ensure that the state uses its dollars in the most efficient way to obtain long-range objectives. If selected for award, NCDOT proposes to negotiate a set of milestone dates for the completion of each of the project’s components . NCDOT proposes to return ten (10) percent (or $10 million, whichever is lower) of the Project component cost for any component not opened to the public for public use within six months of the agreed upon construction completion milestone for that specific project component. Using this approach, USDOT can monitor NCDOT’s performance in managing the Project and hold NCDOT accountable for its delivery.

\ Project Management

North Carolina is divided into 14 highway divisions. The US 74 corridor traverses six of the NCDOT divisions, and CORESI project elements are located in each of these six different divisions. While each of these divisions will be responsible for aspects of the projects, the overall program will be managed centrally by NCDOT’s Project Management Unit Priority Projects Team out of NCDOT’s main office in Raleigh.

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In 2018, NCDOT announced the Integrated Project Delivery (IPD) initiative, a culture where “we promise what we are going to do and deliver what we promise.” The purpose of IPD is to improve project delivery with transparent, repeatable and accountable processes that are effective and efficient, in order to meet the NCDOT Secretary’s “12-24-36” mandate. “12-24-36” refers to the number of months to complete environmental documentation and preliminary engineering – 12 months for a Categorical Exclusion, 24 months for an Environmental Assessment, and 36 months for an Environmental Impact Statement. In response, NCDOT undertook the task of reviewing all of its policies and procedures and challenging staff to come up with more efficient ways of delivering projects. Recommendations are now being implemented and new policies and procedures drafted for a new model focused on tailoring project development to the individual characteristics of a project. The key elements of the model are continuity in staff using a “project custodian” that stays with the project, more robust environmental and engineering screening earlier in the process to identify issues and allow for right-sizing of the project development process, and fewer re-do loops by integrating project planning, environmental analysis, and design into a coordinated process. Overall, there are low risks associated with the delivery of the CORESI project to schedule and to cost utilizing BUILD funding as: NEPA approvals can be cleared through a Categorical Exclusion; there is no right-of-way that needs to be purchased; and the proposed procurement process will be competitive. An overview of the project risk assessment matrix is shown in Table 3.

Table 3: Project Risk Assessment – CORESI Project

RISK RISK CATEGORY MITIGATION STRATEGY

Getting a qualified contractor available to construct the Project Low The market is competitive due to the limited availability of work, in

part due to constrained transportation funding by the State.Obtaining the quantum of funding required to carry out the entire project

LowIf full funding is not available, the project can be scaled as necessary, with certain segments or construction elements prioritized over others .

Environmental regulatory approvals, permitting, and clearances Low

NCDOT is expecting categorical exclusions for all elements of the Project. The majority of the corridors’ projects will be constructed in existing NCDOT right-of-way.

Construction schedule LowNCDOT will set specific paving parameters to maximize construction and build in phases if needed. With the exception of parts of Segment III during major storm events, these areas of North Carolina are not affected in terms of the seasonality of construction.

Cost overruns LowIf cost overruns materialize, the project can be scaled as necessary, with certain segments or construction elements prioritized over others .

Source: NCDOT

\ Identification of Preferred Delivery Model

NCDOT utilizes a project delivery selection matrix (PDSM) tool to determine the preferred method of project delivery. Currently, there are several types of project delivery systems available for publicly funded transportation projects. The most common systems are Design-Bid-Build, Design-Build, and Progressive-Design-Build (PDB).Design-Bid Build (DBB) is the traditional delivery method in which an agency designs a project and awards a construction contract to the lowest bidder based on a completed design and associated construction documents. The agency “owns” the details of design during construction and the risk associated with any change conditions, unknowns, errors, or omissions encountered during construction.

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Design-Build (DB) is a project delivery method in which the agency contracts with a single entity to complete design and construction for a project. Characteristically, the project will have been designed to approximately 15 to 30 percent and will have a well-defined scope and allocation of project risks at the point invitations to bid are requested via a low-bid or value-based procurement. The design-builder retains the risks associated with design, quantities, constructability, etc., which are normally retained by the agency, resulting in greater cost and schedule certainty.Progressive-Design-Build (PDB) is a project delivery method in which the agency contracts directly with a single entity (the PDB team) that includes both a designer and contractor. The agency oversees and directs the PDB team when finalizing the project’s scope and developing the design/construction documents to minimize overall project risk, improve delivery schedule, and apply potential innovation (including contractor-led input) to meet or exceed project goals. Under this delivery method, a project will have been designed to approximately 5 to 10 percent and will have only a partially defined scope and have limited definition/allocation of project risk when the PDB team is procured via qualifications-based selection to participate in the pre-construction phase . No single project delivery method is appropriate for every project. Each project must be examined individually to determine how it aligns with the attributes of each available delivery method. The project delivery method is the process by which a construction project is comprehensively designed and constructed including project scope definition, organization of designers, constructors and various consultants, sequencing of design and construction operations, execution of design and construction, and closeout and start-up . Thus, the different project delivery methods are distinguished by the manner in which contracts between the agency, designers and builders are formed and the technical relationships that evolve between each party inside those contracts.

NCDOT uses the following systematic approach to understand the delivery options; evaluating potential delivery methods; compiling the results in descending preference; and recommending the appropriate delivery method for the project. Step 1 comprises the NCDOT project team obtaining a complete understanding of the project. By reviewing the project scoping report, they will understand the overall project goals, risks, funding constraints, and stakeholder needs.Step 2 comprises the NCDOT project team evaluating the appropriateness of each delivery method for the project via five distinct criteria:

1 . Cost Impacts;

2 . Schedule Impacts;

3 . Opportunity to Manage Risk;

4 . Complexity of Design and Construction Phasing; and

5 . Opportunity for Innovation.

This decision matrix methodology provides a list of typical advantages and disadvantages associated with each method to be considered when evaluating a delivery. This list of advantages and disadvantages is not exhaustive, and the Project Team will need to supplement additional characteristics, when appropriate, to further describe the advantages and disadvantages of each delivery method based on their knowledge and professional judgment. In referencing the advantages and disadvantages as well as the project’s goals, challenges, opportunities, risks, and complexities, the project team will form a consensus opinion of the most appropriate delivery method for each of the five criteria, summarizing the key issues to arrive at this opinion . Step 3 is identifying the recommended delivery model. The first task of Step 3 involves the color coding of each criterion cell based on the criteria assessment in Step 2 (with red the lowest ranked and green the highest ranked). An example of a completed table is provided below in Table 4 .

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Table 4: Example of Project Delivery Methodology Criteria Matrix Analysis

CRITERION DBB DB PDB

Criterion 1: Cost Impacts

Criterion 2: Schedule Impacts

Criterion 3: Opportunity to Manage Risk

Criterion 4: Complexity of Design and Construction Phasing

Criterion 5: Opportunity for Innovation

Source: NCDOT

The last task of Step 3 is the summarization of the delivery method preference analysis and identification of the recommended delivery method for the project under evaluation.

\ Innovation in Project Delivery and Environmental Clearance

Categorical Exclusion (CE) Checklist In early 2017, FHWA and NCDOT executed a Categorical Exclusion (CE) Checklist to help streamline project delivery. NCDOT anticipates that 95 percent of all environmental documentation requirements can be met with this CE Checklist under this agreement. Based on project experience elsewhere in the Project area, it is anticipated that the appropriate National Environment Policy Act (NEPA) action is a documented Categorical Exclusion (CE) in most cases with two Environmental Assessments (EAs) required. However, it is recognized that the Lead Federal Agency will make the determination regarding the NEPA action required. NCDOT’s participation in USDOT’s innovative environmental process and also in the Pilot Program to use GIS scans of the project area to reduce data collection will help expedite Project implementation.

Section 404/NEPA Merger Process and General Permit 31Since 1997, NCDOT has used the Section 404/NEPA Merger Process to develop projects. This environmental streamlining strategy was developed cooperatively by the Federal Highway Administration and the US Army Corps of Engineers and was called “merger” because it basically “merges” decision-making for two federal regulations, the National Environmental Policy Act, or NEPA, and Section 404 of the Clean Water Act, or CWA. In the Merger Process, a team of agency representatives meet at seven strategic decision (concurrence) points in the NEPA/SEPA project development and permitting process to discuss and concur on major project decisions. This process ensures that NCDOT will receive all permits necessary to implement a project in a timely manner. As part of the IPD initiative, NCDOT, in coordination with other Merger signatory agencies, is currently updating the process to allow for more flexibility in how it is applied to individual projects in order to streamline the decision-making process. This includes early identification of permitting strategies, such as use of the US Army Corps of Engineer’s Regional General Permit 19820031

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(GP 31). GP 31 is unique to North Carolina; it authorizes impacts to Waters of the US for “best-fit” widening projects without an impact threshold, providing an option for these projects that is more efficient than utilizing an individual permit.

Project ATLASIn 2019, NCDOT released Project ATLAS (Advancing Transportation through Linkages, Automation, and Screening), a web-based platform that provides a data access and storage framework to support informed project development. ATLAS consolidates statewide spatial data from a variety of into a single source with GIS based tools for screening and mapping environmental features and identifying potential constraints and impacts. In addition, the ATLAS Workbench provides a forum for managing projects and storing key project documents. The Workbench steps teams through all facets of the project lifecycle and tracks the progression of a project based on reporting from multiple NCDOT Units. Since its initial release in June 2019, more than 900 NCDOT and private engineering consultant staff have been trained to use ATLAS, and it is being incorporated into all aspects of project delivery.

Large Project RequirementsThe CORESI project meets the INFRA grant program requirements to qualify as a large project. The manner in which the project is compliant with the INFRA grant program requirements for a large project are discussed in more detail in Table 5 below.

Table 5: Compliance of CORESI Project with INFRA Grant Large Project Requirements

LARGE PROJECT REQUIREMENT RESPONSE

1 . Does the project generate national or regional economic, mobility, or safety benefits?

The CORESI project will deliver a significant and diversified basket of economic benefits with the largest generator of benefits comprising reduction in travel times along the corridor for both commercial vehicles and personal vehicles, a reduction in the occurrence of vehicular accidents and fatalities, and a substantial reduction in commercial vehicle operating hours. Please refer to the Supplemental Materials, provided with the application for a detailed technical memo on the findings of the Benefits-Costs Analysis of the CORESI project .

2. Is the project cost effective? The CORESI project delivers a BCR of approximately 2.5:1 at a 7% discount. Generating approximately $585M in discounted benefits, the CORESI project has a net present value of approximately $355M. Please see the Supplemental Materials, provided with the application for a detailed description of the BCA undertaken to support this application.


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3 . Does the project contribute to one or more of the National Goals listed under 23 U.S.C. 150? Is the Project in the interest of the United States to focus the Federal-aid highway program on the following national goals: A . Safety — To achieve a significant

reduction in traffic fatalities and serious injuries on all public roads .

B . Infrastructure condition — To maintain the highway infrastructure asset system in a state of good repair .

C . Congestion reduction — To achieve a significant reduction in congestion on the National Highway System .

D . System reliability —To improve the efficiency of the surface transportation system .

E . Freight movement and economic vitality — To improve the national freight network, strengthen the ability of rural communities to access national and international trade markets, and support regional economic development .

F . Environmental sustainability — To enhance the performance of the transportation system while protecting and enhancing the natural environment .

G . Reduced project delivery delays — To reduce project costs, promote jobs and the economy, and expedite the movement of people and goods by accelerating project completion through eliminating delays in the project development and delivery process, including reducing regulatory burdens and improving agencies’ work practices .

The completion of the CORESI project will outcomes consistent with several of the National Goals listed under 23 U.S.C. 150. These include:A . Safety – The upgrade of five intersections to interchanges, thereby

allowing for continuity of controlled access, will lead to a reduction in the occurrences of vehicular accidents . In particular, these improvements will significantly reduce the occurrence of accidents involving commercial vehicles and passenger vehicles at existing intersections, a common occurrence where the US 74 corridor, and which has led to several fatalities in recent years.

B. Infrastructure Condition – The CORESI project program contains several elements aimed at improving the resiliency of the US 74 corridor regarding both preparedness and traffic management in the face riverine flooding and major storm events. Several new interchanges will be built and a seventeen mile bypass will be completed resulting in these sections of the corridor being in a good state of repair .

C . Congestion Reduction – The CORESI project will reduce congestion and increase travel speeds through the US 74 corridor. The replacement of signalized intersections with free flow interchanges, coupled with synchronized signaling at the remaining intersections will improve traffic operations for both commercial and passenger users along the corridor. The project will generate nearly $400 million dollars in travel time saving benefits.

D . System Reliability – The CORESI project is the only continuous east to west highway corridor across southern North Carolina and is a critical connection of the trade network. The implementation of the CORESI project will ensure that this critical section of the state and nation’s freight network is able to achieve, and sustain, enhanced efficiency.

E . Freight Movement and Economic Vitality – The project would significantly reduce travel times for commercial vehicles through continuity of controlled access and synchronized signalization. Over the assessment period, the CORESI project will generate a reduction of approximately 6 million commercial vehicle operating hours.

F . Environmental Sustainability – The CORESI project program contains several elements aimed at improving the resiliency of the US 74 corridor regarding both preparedness and traffic management in the face riverine flooding and major storm events.

G . Reduced Project Delivery Delays – Through delivering the components of the CORESI project concurrently, and in utilizing the innovative project delivery tools and processes described in the Project Readiness section, NCDOT will accelerate implementation of these key elements and reduce future user delays caused by implementing the discrete components separately.

4 . Is the project based on the results of preliminary engineering?

Yes. Each of the ten individual elements have gone through preliminary design and engineering phase to inform right of way needs and initial contractor estimates .



5a. With respect to non-Federal financial commitments, does the project have one or more stable and dependable funding or financing sources to construct, maintain, and operate the project?

All funding for the Project is secured. Shelby Bypass segments D&E are undergoing preconstruction activities and state agencies have already expended a combined $24.2M on six of the project components. NCDOT is using several state sources of funding, all of which have been committed and are in use by the Project.

5b . Are contingency amounts available to cover unanticipated cost increases?

Contingency amounts for the CORESI project are between 5-10% of the estimated construction costs depending on the number and complexity of the various elements included in the program mix for each of the segment improvement programs. NCDOT finds these contingency levels to be appropriate to be able to add these to the current Project .

6 . Is it the case that the project cannot be easily and efficiently completed without other Federal funding or financial assistance available to the project sponsor?

Without INFRA funding, NCDOT will not be able to carry out all of the CORESI project components concurrently. This would require future projects to complete these improvements, missing out on the economy of scale of including them with the current Project and requiring future user delays and safety issues during construction.

7 . Is the project reasonably expected to begin construction not later than 18 months after the date of obligation of funds for the project?

Preconstruction activities for each of the ten CORESI project components INFRA elements can begin within eighteen months of award. Several of the project components are already undergoing preconstruction activities.

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