LOS ANGELES -- Oregon Treasurer Ted Wheeler said he would not approve the issuance of state bonds for the multi-billion dollar Columbia River Crossing project without more certainty that the state can collect tolls from Washington drivers.
Wheeler's statement on Friday is in response to a new investment grade analysis the treasurer's office received Jan. 7 from CRC project managers and the Oregon Department of Transportation.
The Treasury was asked by the state legislature to give an evaluation of the project finance plan because more than $1.5 billion in state bonds may be issued to help finance construction.
"If the assumptions underlying the projections made by the project consultants are valid, the tolls will be sufficient to service the project bonds," Wheeler said. "That said, we need to be sure Oregon can collect them."
The goal of the CRC project, which has been in the works since 2005, is to replace the existing Interstate 5 bridges over the Columbia River, built in 1917 and 1958.
Funding for the project was originally expected to come from the federal government, tolls, and the states of Washington and Oregon. However, Washington pulled out last June when its Senate failed to authorize a contribution of matching funds for the project.
The treasurer has urged state leaders to continue to seek a partnership with Washington so Oregon can share the oversight and financial risk. Without such partnership, however, Wheeler said extra diligence is required to ensure that state taxpayers are protected under an Oregon-led scenario, including ensuring the state can unilaterally set toll rates and can collect them.
"A reliable method of collecting tolls from Washington drivers is crucial in light of the fact that an estimated two-thirds of the bridge traffic is projected to be vehicles registered in Washington," Wheeler said.
No formal agreements have been reached yet, but project managers are considering various options and are waiting to review the Department of Justice's opinion on the enforceability of such options.
In addition to more certainty regarding toll collections, the project also needs an $850 million Federal Transportation Administration grant to finance light rail components of the project, and a $900 million Transportation Infrastructure Finance and Innovation Act loan from the Federal Highway Administration.
The other requirements for the project to move forward, including an agreement with Washington authorizing construction within its border, identification of funds to pay for an expanded light rail service, and a bridge permit from the United States Coast Guard, have been met.
Funding for the project was previously estimated at around $3.4 billion, but a plan was proposed in August to reduce the total cost to $2.75 billion, avoiding the need for Washington's immediate contribution by eliminating many of the free interchange improvements proposed for the Washington side of the river.
