Washington State Route 704

In July 2010,[17] a coalition[18] of local businesses, conservation organizations, and equestrian clubs filed a lawsuit against the Federal Highway Administration, WSDOT, and Pierce County[17] to prevent construction of the proposed highway. Because the project has no funding and thus no construction schedule, the parties agreed to a stay of proceedings on October 15.[17]

The coalition contended that the agencies failed to follow the Endangered Species Act, the National Environmental Policy Act, and failed to adequately consider reasonable alternatives.[19] The coalition reports that the proposed highway would bisect the largest remnant oak woodland-prairie left in the Puget Sound area.[18] The US Fish and Wildlife Service describes the area as "possibly the rarest habitat in North America,"[19] home to at least 29 species of federal and/or state threatened, endangered, candidate, and sensitive plant and animal species of concern, 18 of which are in the immediate vicinity of the proposed highway.[18]

Drawing comparisons with Mt. Rainier National Park and Nisqually National Wildlife Area, Pierce County's Biodiversity Network Assessment describes the area as "the most biologically and ecologically rich area remaining in the lower elevations of Pierce County." The County predicts that these diverse habitats support 20 state or federally listed species, 24 Priority Habitat and Species, and 10 at-risk species, and dozens of other plants and animals.[20]

The project's Environmental Impact Statement states,

None of the areas affected by the project are quality prairie habitat; most of the grasslands are non-native. The alignment was purposely placed to avoid wetlands. The Douglas-fir forest habitat is all second-growth; most is in even-aged stands with little structural diversity and is considered to be invasive to oak woodland and prairie habitats. The grassland habitats with some native prairie species intersected by the proposed alignment occur at two locations. The first is a mowed field with few native plants west of Lake Mondress that is also heavily used as a practice arena by equestrian enthusiasts. The second location is southeast of Lake Mondress, where the alignment skirts the northern edge of a prairie habitat mostly invaded by Scot's broom. The intersection point is at a disturbed railway junction. Both locations support prairie habitat. The remaining areas are disturbed fields dominated by weedy Scot's broom. In summary, the project does not affect grasslands or prairie of the type referred to in this comment.[21]

The EIS also states that "By 2025, most of the freeway and arterial street systems will operate at [Level of Service] F conditions with volume/capacity (V/C) ratios well above 1.0." This means very heavy congestion and gridlock during most of the day.[22]

Furthermore, the proposed highway will increase climate impacts by increasing driving distance. The EIS states that "Overall, people would travel a little farther to use the new Cross-Base Highway project to avoid other congested highways and arterials; this would increase miles driven."[23]

A contrary view was expressed by Pierce County Executive John Ladenburg, who believes that it would be "environmentally irresponsible not to build that highway,"[24] because SR 704 will lessen development in the Puyallup Valley farmlands.

The Washington State Department of Transportation (WSDOT) planned to extend the highway to be 6 miles (9.7 km) long, originating at Interstate 5 in the Tillicum neighborhood of Lakewood, Washington. A four-lane, divided highway with four intersections over its entire length,[25] SR 704 may improve access to and between the military installations by providing an exclusive roadway between Fort Lewis and McChord AFB. It could also connect the developing industrial areas of DuPont and Frederickson as well as provide an east–west alternate thoroughfare to overcrowded SR 512.

After voters rejected a November 2007 ballot measure which would fund the construction, most of the project was put on hold.[26] However, on June 20, 2008, the WSDOT awarded a $7.35 million contract to Ceccanti Inc. for widening of the eastern 0.7 miles (1.1 km) of the route between Spanaway Loop Road and State Route 7.[26][27] Groundbreaking was July 30, 2008.[28] Assistant Project Engineer John Ho says that the project was scheduled to be completed by 2017 at the earliest.[29] As of 2018, the project remains on hold until further action is taken by the state legislature.[28]

The WSDOT puts the 2007 price tag for the highway at $480 million. However, only $43 million has been funded, requiring at least $437 million.[28] Of this gap, only $50 million had been expected to be funded by a failed 2007 ballot initiative which in the end did not include the project.[16]

In August 2017, the Federal Highway Administration rescinded its record of decision for the project, which had been issued in 2004.[30]