State slashes Everett port cleanup grants

The Washington Department of Ecology removed $87 million in current and future grant funds from the Port of Everett’s waterfront remediation project this summer. The withdrawal occurred while the port prepares for a November 9 trial against Weyerhaeuser, the former owner of the site.

Port CEO Lisa Lefeber stated that Ecology pulled the money because the port lacks matching funds. Weyerhaeuser canceled its cost-sharing agreement in 2018. The Mill A site at 3500 Terminal Ave. was used for sawmill and pulp operations in the 1900s. The port purchased the land in 1983 and used it for log handling until the mid-2000s.

Lefeber reported that 50,000 truckloads of contaminated material remain at the site. She estimated the total cleanup cost at $250 million. Ecology’s website notes that marine sediments and upland soil contain wood waste and chemical contaminants.

On June 26, Ecology sent a letter to the port explaining the funding cut. The department cited high demand for cleanup funds and limited resources. It changed its review process for the 2027-29 biennium to prioritize projects with matching funds and completed design work. Ecology denied the port’s request for $55 million in the new cycle and reduced current 2023-25 funds.

Ecology rescinded $32 million of the $35 million granted in May 2023. The port retains $3 million for engineering design work. This remaining amount lapses if the port does not meet the June 30, 2027 closure date for its previous grant and loan agreement. The department stated it cannot keep two active funding agreements open simultaneously due to audit risks.

Weyerhaeuser responded to the funding decision by offering to pay $4,734,372 for past unreimbursed costs. The company also committed up to $25 million toward future remedial costs. Ecology described this offer as highly relevant to its consideration of the port’s requests.

Lefeber said the port faces difficulty accessing the Weyerhaeuser funds because of the ongoing lawsuit. She warned that permits could expire and costs could rise while the port waits for future funding cycles. Ecology maintains that the port still has $25 million available from state funds. The department plans to prioritize the project for a 2029-31 Remedial Action Grant if the port completes its design and consent decree steps.