Commissions say tolling is essential to fund $5.68 billion first phase of Interstate Bridge Replacement

Commissioners for Oregon and Washington heard staff explain how tolling fits into a multi‑tier funding plan for the Interstate Bridge Replacement (IBR) program and why earlier toll revenues are especially valuable for financing.

Julie Meredith, secretary of the Washington State Department of Transportation, described the IBR program as a "once‑in‑a‑generation" bi‑state investment that will improve safety, seismic resilience and freight movement and provide opportunities for family‑wage jobs. Carly Francis, the IBR interim program administrator, said the program identified a first funded phase that includes replacing the main channel bridges, connecting them to I‑5, linking to Hayden Island and SR‑14, adding shoulders and auxiliary lanes, removing the existing bridges and reserving space for a future light‑rail extension. Francis said that first funded phase is estimated at $5.68 billion and that available funding identified to date is about $5.69 billion.

Staff emphasized that toll revenue is expected to provide upfront bonding capacity and a stable long‑term revenue stream for financing, operations and maintenance. Brent Baker, the ABR program financial lead, explained the waterfall from gross toll potential to adjusted gross and then net toll revenue — after unbillable/nonpayable amounts, collection fees and operations and maintenance — and said net toll revenues are the cash flow measure that determines borrowing capacity. He added that early year revenues are the most valuable for borrowing.

Commissioners asked detailed financing questions and staff recommended further coordinated work between the states’ debt teams and the bi‑state subcommittee before public outreach. The commission directed staff to continue work on scenarios, provide slide decks and bring refined analyses back through the bi‑state process for public engagement planning in 2027.