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Yahoo
17-05-2025
- Business
- Yahoo
Tolling delay on I-5 bridge could mean higher rates for Washington and Oregon drivers.
More than 131,000 drivers crossed the Interstate Bridge between Portland and Vancouver each day in 2021 compared to 33,000 in 1961. (Grant Stringer/States Newsroom) Tolling on the Interstate 5 bridge across the Columbia River will start a year later than planned – but drivers traveling between Washington and Oregon may pay a little more than originally forecast as a result. Tolling in both directions on the existing bridge will be one of the first things the public experiences once construction of a replacement bridge gets underway. It is also a critical source of funding to help cover the cost of the project, which could range from $5 billion to $7.5 billion. For months,it's been projected that toll collections would begin on the existing bridge early next year when construction of the replacement bridge was expected to start. Project managers now say tolling won't start before the summer of 2027, likely after the megaproject is underway. On Friday, a panel of transportation commissioners from each state pondered how best to avoid losing out on a year's worth of revenue. The Bi-State Tolling Subcommittee recommended sticking to the initial toll rate shared with the public over months of meetings, but the committee said rates should increase enough in the second and third years to make up for the year delay. Each state's transportation commission must approve the recommendation. If that happens, work will begin to detail how much revenue can be generated from different toll rates. Several possible rate scenarios are under review. These have one-way rates ranging from $1.55 to $4.70 with higher prices during peak travel times. It is assumed rates will rise on a yearly or biannual basis. In separate meetings this month, the Washington State Transportation Commission and Oregon Transportation Commission learned about the different options for making up for the year's loss of collections. On Tuesday, Washington commissioner Debbie Young said that in the first year it was important to let the public know they would 'keep the toll rate that we said we would.' She supported increasing it more in the ensuing years to catch up. Other commissioners agreed with the approach – as long as the target for toll receipts is met. 'We want to finish this with a bridge,' Commissioner Nicole Grant said. Delayed toll collections are a byproduct of slower-than-planned progress on other parts of the project. The final analysis of the project's environmental impacts won't be done until the end of the year. Officials with the Interstate Bridge Replacement Program said in a statement that they expect to get a key federal approval known as an amended record of decision in early 2026. It is needed before construction-related contracts can be issued. 'Our federal agency partners have provided us with our current schedule,' the statement reads, adding construction is expected to begin sometime in 2026. Based on that schedule, planners now anticipate cars would begin driving across a new bridge in 2032 or 2033 and construction would last at least 10 to 15 years through the five-mile corridor on either side of the bridge. Meanwhile, Washington state lawmakers passed legislation allowing for a huge increase in the amount of toll revenues assumed for the multi-year project. House Bill 1958, which awaits action by Gov. Bob Ferguson, would authorize the state to sell up to $2.5 billion in general obligation bonds, $900 million more than assumed when the bill was first introduced in February. With significant cost increases on major highway and bridge projects in recent years, backers have said it made sense to recalibrate but doing so doesn't mean the state will necessarily seek higher bonding capacity. Bonds, a long-assumed source of financing for the new span, would pay for design and construction, as well as future maintenance and operation. The borrowed money would be repaid with toll proceeds, gas taxes and vehicle fees. Because the bonds would be backed by 'the full faith and credit of the state,' the general fund could be tapped as a last-resort source of repayment. Because Washington will be administering the tolling program, it is the one that needs to issue the bonds.
Yahoo
13-02-2025
- Business
- Yahoo
Washington looks to raise $1.6 billion from tolls for new I-5 bridge
More than 131,000 drivers crossed the Interstate Bridge between Portland and Vancouver each day in 2021 compared to 33,000 in 1961. (Grant Stringer/States Newsroom) Washington state lawmakers set out Wednesday to raise $1.6 billion from tolls to help pay for construction of a replacement bridge on Interstate 5 across the Columbia River. Bills introduced in the state House and Senate authorize the sale of $1.6 billion in general obligation bonds, a long-assumed source of financing for the new span linking Washington and Oregon. The borrowed money would be repaid with toll proceeds, gas taxes, and vehicle fees. Because the bonds would be backed by 'the full faith and credit of the state,' the general fund could be tapped as a last-resort source of repayment. 'It seems like a big deal but it's on the checklist of things to do,' said Sen. Marko Liias, D-Edmonds, chair of the Senate Transportation Committee and sponsor of the Senate bill. Republican Sens. Paul Harris of Vancouver and Curtis King of Yakima are among the co-sponsors. Rep. Jake Fey, D-Tacoma, chair of the House Transportation Committee, said it's no secret the project would be partially paid for by tolls. Since Washington will be administering the tolling program, it is the one that needs to issue the bonds, he explained. Project planners have estimated the price tag for replacing the bridge will range from $5 billion to $7.5 billion, with a likely figure of around $6 billion. Permits are expected to be issued by 2026. Once rolling, construction is expected to last until 2032. Washington and Oregon have committed about $1 billion each and the states have snagged federal grants totaling $2.1 billion. Tolls – which will be imposed in both directions on the existing bridge in spring of 2026 – were counted on to raise at least $1.2 billion in early calculations. With project costs expected to climb due to inflation and other factors, the amount needed from tolls to make ends meet will rise too. That is why the bond figure is higher, Fey and Liias explained. Toll collections will pay for bridge construction and provide an ongoing stream of revenue for bridge maintenance and operations. During construction, tolls may range from $1.55 to $4.70 each way. Final decisions around rate setting, exemptions, and discounts are expected from the transportation commissions in Oregon and Washington this summer. Washington law specifies that tolls only go toward the bridge replacement project and not subsidize any Oregon toll facilities. Hearings on the bills had not been set as of Wednesday afternoon. Passage of the bond bill will require a 60% majority in each chamber.
