To ensure advancement of the Billings Bypass project in accordance with federal transportation planning requirements, the Billings Metropolitan Planning Organization (MPO) must ensure the appropriate actions are taken through the Billings Metropolitan Planning process. Given federal transportation planning requirements and substantial project costs, the ability to advance the Billings Bypass is highly dependent on successfully financing and constructing independent segments of the bypass as reasonably available funding sources are secured.

Currently the Billings Bypass is in the location/Environmental Impact Statement (EIS) phase. The Federal Highway Administration (FHWA) dictates that the project, whole or in parts, must accomplish independent utility, meet purpose and need, and be fiscally constrained. Due to the current estimated cost for the total project of approximately $160 to $264 million, fiscally constraining the entire project (from I-90/94 to Highway 3) will be challenging based on annual funding allocations to the Billing MPO and the possibility of future special funding set-asides from Congress. In addition, the EIS analysis work for the project has run into some property owner resistance in the western portion (Highway 87 to Highway 3) of the proposed project, which has slowed the analysis. 

The Policy Coordinating Committee (PCC) must consider ways to fiscally constrain the project so that it can be included in the Billings Urban Area Transportation Plan. Since the Transportation Plan is currently being updated, it is important to have the PCC take action on the fiscal and physical phasing options for the Billings Bypass now. The Planning Board has already made a recommendation on the Billings Bypass project to PCC and the Board of County Commissioners is expected to make a recommendation in late October. The City Council reviewed this project at its Oct. 19 work session, and also must make a recommendation to PCC to provide guidance for the future progress of the Billings Bypass project.

Currently the North Bypass is in the Location/Environmental Impact Statement (EIS) phase. Federal Highways dictates that the project must accomplish independent utility, meet purpose and need, and be fiscally constrained. Due to the projected total cost of the project of approximately $160 to $264 million, it is likely that the only way to fiscally constrain the entire project is to consider it in phases. The City Council may:

• Recommend to the PCC to continue to plan to fund and build the Billings Bypass as one project; or
• Recommend to the PCC to plan to fund and build the Billings Bypass in phases; or
• Recommend to the PCC to end the Billings Bypass project entirely

The current estimate for the Billings Bypass project ranges from $160 to $264 million. The current project study area falls outside of the Billings City limits. The City of Billings has no direct financial responsibility at this time.

Staff recommends that the City Council consider making a recommendation to PCC to move forward with the Billings Bypass project in phases by completing the current EIS and fiscally constraining the project through a series of construction and funding phases from I-90/94 to Highway 3.