As the approximately $14.4 billion Interstate Bridge replacement project advances, officials are continuing to discuss tolling details.

A joint meeting of the Oregon Transportation Commission and the Washington State Transportation Commission on Friday provided results of the Level 3 Traffic and Revenue Analysis with the latest information on four tolling scenarios. The financial plan for the Interstate Bridge Replacement (IBR) Program includes $1.5 billion in toll funding.

Julie Meredith, secretary of transportation for the Washington State Department of Transportation, said tolling the existing bridge would allow construction to start in Washington, because tolling revenue would provide up-front bonding capacity for the project.

The first phase of the first set of projects includes constructing the replacement bridge, adding bridge connections to Interstate 5, extending light rail infrastructure to Vancouver, and removing the existing bridge.

Currently, toll revenue is not expected to help pay for future project phases, according to interim IBR Program administrator Carley Francis.

Financing strategies currently being explored by the IBR team for the first set of projects include state toll-backed bonds or a toll-backed federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan. The project team plans to begin the application process for the TIFIA loan next year.

Washington State Transportation Commissioner Gael Tarleton requested a more detailed discussion comparing the benefits of a TIFTA loan with those of state toll-backed bonds.

The traffic and revenue analysis includes four toll scenarios, with toll rates ranging from $1.55 to $4.70 per trip and possible rate variability depending on time of day. Also, two scenarios would begin tolling at the start of project construction and the other two would begin when the new bridge opens.

“We do assume there is a low-income discount program in all scenarios,” said Stantec transportation engineer Liz Horta, who led the Level 3 Traffic and Revenue Analysis. “T��� timing of when that begins varies by scenario, with some scenarios offering this discount on day one and some scenarios offering it when the new bridge is online.”

Oregon Transportation Commissioner Phil Chang said he would support a low-income discount.

“It seems to me that if we’re trying to provide relief to low-income people, it should start sooner than later,” he said.

The discount would be 50 percent for eligible drivers, Horta said. The criteria would be household income within 200 percent of the federal poverty line. Eligible drivers would need to be registered and have a Good To Go! account, which is used for toll payments in Washington.

Possible toll exemptions under consideration include state maintenance vehicles, school buses, tow trucks, and emergency vehicles. There would be no exemptions for transit buses, rideshare vehicles such as vanpools, or private buses.

The four tolling scenarios being considered also include the existing Washington tribal preemptions of Yakama and Nez Perce tribes. The process for consultation with multiple tribes and any considerations of toll discounts will be made by the two state transportation commissions.

Washington State Transportation Commission Chair Debbie Young said Washington is also advancing a low-income toll discount for its entire tolling system.

“One of the things just in the tolling piece that kind of stuck out to me is that Washington has a lot at stake here as far as making decisions on what exemptions are given,” Oregon Transportation Commission Chair Julie Brown said. “That is because it impacts their entire state and their tolling system, whereas Oregon doesn’t have that system in place.”

Each state transportation commission will discuss separately in the next two weeks whether there is anything they would like to request the Bi-State Tolling Subcommittee to study further.

The two commissions will meet again later this year or early next year to receive a new report from the Bi-State Tolling Subcommittee and consider decisions that will support advancing a toll rate and policy proposal. Final toll rates and policies are expected to be adopted as early as late fall 2027.

Currently, tolling on the existing Interstate Bridge is anticipated to begin as early as summer 2028.

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Ball Corporation, Timberlab, ATI and Gordon Truck Centers are pouring a combined $500 million, at least, to build manufacturing plants and other facilities in Millersburg.

That’s the kind of economic development any city would love. Large employers bring jobs and an expanded tax base, among other benefits.

In a city of 3,000-plus like Millersburg, slightly north of Albany, those numbers make a major impact.

While some governments get “caught up in red tape and rule books” that make development difficult, Linn County Commissioner Roger Nyquist said, Millersburg city leaders welcome businesses.

“How can we get to yes for you on this?” Nyquist said.

Millersburg’s low taxes, large tracts of developable land and easy access to Interstate 5 and rail service have made it popular for businesses. Few cities along Oregon‘s predominant north-south freeway have experienced Millersburg’s level of industrial growth.

“What the difference is that attitude is from our council,” former City Manager Kevin Kreitman said. “I will tell you that historically Millersburg has always had a council that understands the value of the industrial base and protecting that industrial base and growing that base for the benefit of the community.”

Impetus for incorporation

The town was established as Millers Station in 1871, when a rail station was built for the Southern Pacific Railroad. It became a large shipping point for cattle in the 1880s and renamed Millersburg around 1900.

The U.S. Bureau of Mines established a facility to produce zirconium there in the 1940s. That plant was later sold to Wah Chang for production of metals including hafnium, tantalum and niobium. In the 1980s, it became a Superfund site; the environmental cleanup took 20 years.

In 1952, the Willamette Kraft Corporation built a paper mill to process wood chips into kraft paper. When it was owned by Weyerhaeuser, the plant was known for a smell reminiscent of rotting cabbage that greeted people driving by it on I-5.

“That was the smell of money, man,” Nyquist said.

Millersburg incorporated as a city in 1974, partially so businesses and residents could avoid being annexed into Albany and pay that city’s higher property taxes.

About a third of the city’s land was designated for residential development, which left lots of room for commercial growth.

A substantial hole to fill

The paper mill closed for good in 2009 and cost 270 workers their jobs. Three years later, the mill’s owner, then International Paper, tore it down.

At the time of its closure, the mill’s property tax bill was about $2.6 million annually — the most in Linn County.

“We lost a lot of jobs,” Millersburg Mayor Scott Cowan said. “And so that was a big impact, and then of course as that sort of was the immediate situation once that news got out was of course the financial impact to the city was by the franchise fees and taxes from the IP property. We felt that.”

The loss of that revenue was significant to the taxing districts — officials had to find ways to replace the revenue to pay for city services and road repairs, for example.

Millersburg didn’t levy property tax for its first 40 years because the city earned enough money from franchise fees to pay for basic city services. Now the city charges the maximum $3.50 per $1,000 of assessed value. Most of that goes to contracted fire and sheriff’s services.

The city tried to attract businesses to fill the gap left by International Paper.

In 2008, Peak Sun Silicon broke ground on a 10,000-square-foot building where it would employ 500 people to produce an ingredient in solar cells. The state foreclosed on the property when Peak Sun defaulted on a $14 million loan in 2012.

In 2019, the state gave Linn County $25 million to build an intermodal facility on a portion of the former International Paper property. That project cost $35 million, but operations never began.

Renewed interest in development

When Timberlab was looking to build a new facility to manufacture mass timber, the company considered multiple Willamette Valley locations, including Independence and Corvallis, President Chris Evans said.

Then Timberlab found a 33.5-acre site in Millersburg. The location had challenges. It had a fish bearing stream, needed an entry road and the main connecting road to Old Salem Highway was under construction.

Nevertheless, Timberlab purchased the land from the city and expects to complete its first building this year. That project will bring an estimated 100 jobs to Millersburg.

Gov. Tina Kotek, present when ground was broken in March 2025, said Oregon is “leading the way” in mass timber and pointed to the new roof at the Portland International Airport terminal.

“T��� city really facilitated taking a lot of the issues out of the sites here, so they could invite somebody into the community and have a quicker turnaround to have something rezoned from agricultural to industrial,” Evans said at the ground-breaking event.

That will include a 185,000-square-foot manufacturing facility. Timberlab has plans for 85,000-square-foot and 126,000-square-foot buildings in the future.

Companies that build in Millersburg reap the same tax rewards as its citizens.

Property owners in Millersburg pay a combined tax rate of 15.61 cents per $1,000 of assessed value, one of the lowest rates in the state for a city that offers the services that Millersburg does.

A company building a $100 million facility can save over $1 million per year on property taxes compared to other cities if it builds in Millersburg.

The money brought in from taxes and fees also means residents don’t have to worry about being barraged with bonds and levies from the city.

“But don’t worry,” city manager Janelle Booth said. “Our residents still complain about our taxes.”

Companies like Timberlab also get a tax break by building in enterprise zones — areas designated for large-scale industrial development by the state.

Enterprise zone projects must meet requirements including a minimum investment cost and employee count. Also, workers must be paid between 130 and 150 percent of the county’s average wage.

Businesses are exempt from paying property taxes on capital improvements for three to five years. In a rural enterprise zone, such as the one in Millersburg, businesses could be exempt from paying taxes on those improvements for up to 15 years.

In the meantime, the city will still benefit from the Timberlab development as it collects franchise fees from the company. Millersburg received nearly $1.2 million per year from Pacific Power last year, and that will go up with more power being used by Timberlab and Ball Corporation.

That money pays for basic city services like roads, parks and city administration.

“We’re looking at it for that long-term benefit, too,” Booth said.

The value of incentives

Millersburg has invested heavily in infrastructure that benefits residents and businesses. The city shares water filtration and wastewater treatment facilities with Albany.

Pacific Power owns and runs a regional operations center in the southern part of the city.

Millersburg city leaders convinced Pacific Power to build a new substation on Conser Road across the street from the Jefferson Fire Department station in 2024. That provides large industrial users with plenty of electricity for whatever they plan to build.

Several large parcels inside the city limits were zoned industrial and never developed. Over the years, Millersburg acquired several of those parcels for free or close to it.

To spur economic development, the city took an active approach in marketing the industrial properties.

The city updated its comprehensive plan in 2020, which essentially served as a sales brochure for prospective development.

“That’s an incentive that we can have with the industries to encourage them to come in,” Kreitman said. “We went through and we put together a presentation, and the state asked us to come and talk about it for other communities to look at. It’s really helped us.”

The city council opted to be selective in which companies it would sell properties to. For example, the city chose not to sell land for warehouses that employ few people.

“As the property owner, the price of the property is one of our tools to get what we want in here,” Booth said.

The city still owns about 70 acres of flat, undeveloped land that is zoned for industrial use.

Dormant site could be awakened

Cowan said Ball Corporation’s plans to build a plant helped spur much of the new economic development in the city.

“We heard about another company that was interested, but it was a lot of this loose interest and no one really serious until Ball came along,” Cowan said. “That really was a big one.”

Ball Corporation’s facility could be larger than 500,000 square feet when it’s finished, according to city planning documents, but will be smaller to start, Kreitman said.

It is unclear how many jobs the Ball facility will provide once it’s finished. The company did not respond to requests for comments.

Center Market is planning a new 5,200-square-foot building for its store and offices. Pure Energy is adding a 7,480-square-foot building.

Several businesses have announced plans for the former International Paper property.

Aymium, formerly known as National Carbon Technologies, in 2022 signed a 16-year lease for construction of a plant that uses carbon products to produce things like filters. Linn County approved a pause in that lease in 2025.

“And if they don’t go forward, we’ve got, guess what, flat land available at a reasonable price in close proximity to I-5 and rail,” Nyquist said.

In 2024, Omni Energy agreed to lease the site to transfer biodiesel from trains to trucks. That still hasn’t happened.

“It’s going to take some infrastructure investment,” Nyquist said. “T��� operators want to work out a longer-term lease to justify that investment, and so that’s what we’re working on today.”

Corvallis-based Samaritan Health Services owns a 2.3-acre plot in the north part of the city at the intersection of Old Salem Highway and the I-5 interchange. The nonprofit planned to build a regional medical center when it purchased the property for $1 million, according to city documents.

“While we do not have definitive plans for that property at this time, we do consider it a very important asset that can help us meet community health needs as Millersburg and surrounding areas continue to grow,” stated Larissa Balzer, Samaritan Health Services vice president of strategy and planning.

Hoping for a downtown and more

While Millersburg has a lot of industrial development, it lacks commercial businesses. Humpty’s Dump Bar & Grill and Oregon Barbecue Company are among the few commercial properties in town.

The Love’s Travel Stop that opened in 2018 near the North Millersburg exit is the city’s most recent commercial development.

The city owns about 8 acres along Old Salem Highway between the new fire station, which the city built for $5 million in 2023, and Center Market. The site is designated for commercial development.

Unlike many small Oregon cities, Millersburg doesn’t have a downtown.

“We’re hoping to create one,” Booth said.

The city also lacks affordable housing. The only houses for sale in Millersburg are listed for over $500,000. There are no apartments or multifamily housing.

“That is the constant feedback we hear from our community and our council and our planning commission, 10,000-square-foot lots is the hill to die on for our folks,” Booth said.

Significant housing growth occurred in the city until 2023, when construction advanced on the last parcel of developable land within city limits. City leaders say they can’t expand the urban growth boundary to the north or west because of the prime farmland in those areas.

The city is looking to expand east of I-5 at a long-hoped-for new interchange for more commercial and high-density residential growth.

Millersburg also owns land it intends to use for a YMCA building and a school, something the city hasn’t had since the last one closed in 1983.

“Last we knew, they are very interested in getting something in here,” Booth said.

Editor’s note: This article first appeared in The Statesman Journal and then was distributed on the USA TODAY Network via Reuters Connect.

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The Oregon Department of Transportation has released its , which highlights the conditions of the state’s bridges and the work under way to keep them safe and in service.

ODOT maintains 2,786 state-owned bridges; all are inspected at least every two years by certified inspectors, a press release states. Bridges with known issues are inspected more often. Between inspections, maintenance crews regularly monitor conditions and address issues before they become bigger problems.

Many recent changes in condition ratings are tied to updated federal inspection standards. Because of the two-year inspection cycle and new standards being phased in, ratings will continue to be influenced through 2027, according to ODOT.

National Bridge Inventory standards are used to rate bridge conditions. Ratings derive from conditions of key components like the deck, superstructure and substructure. Approximately 84 percent of bridges managed by ODOT are in fair condition, the press release states.

This year’s report spotlighted the Astoria-Megler Bridge in Astoria. A growing concern is the 6,000-plus breeding pairs of cormorants that nest on the bridge. Their waste interferes with the ability to inspect the bridge for cracks in the steel and deteriorates the paint that protects the steel from corrosion.

An assessment is under way to determine the bridge’s vulnerability to vessel collision. If the results show that the risk is above an acceptable level, ODOT will determine short-term and long-term strategies to reduce the probability of a potential bridge collapse from a vessel collision, the report states.

Meanwhile, the design effort for replacement of the bridge’s deteriorated roadway surface on the Oregon approach will continue; construction is anticipated in 2027.

With adequate funding, approximately 27 state highway bridges could be replaced annually, which is consistent with a 100-year service life, according to the report.

This year, six bridges were replaced: Oregon Route 82 over Bear Creek in Wallowa County, O.R. 99 over Birdseye Creek in Jackson County, O.R. 99 over Miller’s Gulch in Jackson County, O.R. 206 over Rock Creek in Gilliam County, Interstate 5 over Southwest 26th Avenue in Portland, and U.S. Route 26 over Little Humbug Creek in Clatsop County.

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Oregon and Washington state leaders on Tuesday released an updated price tag for the Interstate Bridge replacement project that fell closely in line with documents unearthed months ago by critics of the long-planned expansion.

The total cost estimate for the bridge and 5-mile corridor of Interstate 5 rose to $13.5 billion to $15.2 billion, with a “most likely cost” of $14.4 billion, according to a joint statement from state highway officials. That price tag lands within highway officials’ earlier estimated range of $12.2 billion to $17.7 billion.

Oregon Gov. Tina Kotek and Washington Gov. Bob Ferguson doubled down on their support for the project despite rising costs.

“We need a new bridge and it’s time to start building it,” Kotek expressed in the joint statement.

By focusing on “a core set of projects,” she stated, the states can deliver a “modern, earthquake-ready bridge, with no bridge lifts, less traffic congestion, extended light rail and better options for people walking and biking.”

Tuesday’s cost estimates were the first released by the two states since 2022, when program officials gauged the cost at $5 billion to $7.5 billion. Since then, construction costs have run hotter than overall inflation, mostly because of materials and labor and fluctuating tariffs.

The Interstate Bridge replacement (IBR) program team, made up of Oregon and Washington transportation departments, plans to hire a contractor in 2027 to complete design work. The bridge is regarded as at risk of collapse in a major earthquake.

“T��� bridge must, and will be replaced,” Ferguson stated. “Delaying a major project has never made costs go down. We’ve achieved important progress in the past year, and we will continue to move forward by focusing on the core mission of replacing the bridge.”

Highway officials and state leaders refocused Tuesday on the more modest goal of replacing the two bridge spans, connecting them to I-5 and extending light rail service to Vancouver. Those aspects would total $7.65 billion, according to the joint statement.

Light-rail service may be needed to access some federal funding, but some elected officials and residents in Vancouver have protested bringing Portland-based light rail to Southwest Washington.

Joe Cortright, an economist and director of Portland-based City Observatory who has been a persistent critic of the project, said the state transportation departments were misleading constituents by focusing on half of the project.

“T��� high-level bridge requires elevated freeways on both the Oregon and Washington sides of the river, with new interchanges elevated high into the air to reach the new roadway,” Cortright stated Tuesday. “ODOT and WSDOT have intentionally designed this so once you start, you must build everything. The reality is they’ll never stop with Phase I. Start construction and you’re signing up for $15 billion and 20 years of construction hell.”

The IBR program currently has $5.5 billion in available state and federal funds.

“This funding is sufficient to continue the states’ momentum and begin the construction process while working toward further improvements to the larger corridor on both sides of the bridge,” the team stated Tuesday.

Highway officials are pursuing an additional $1 billion in funding through the Federal Transit Administration‘s Capital Investment Grants program.

“Managing our risks, including schedule, is imperative,” ODOT interim Director Lisa Sumption stated. “We are committed to moving this program into construction and completing this critical infrastructure for our region and the economy.”

Contractors and union representatives have touted the project, saying it would bring huge economic benefits in wages and other spending.

“We’re pleased to see this part of this moving forward now, and it’s time to get this project built,” said Mike Salsgiver, executive director of the Associated General Contractors‘ Oregon-Columbia chapter.

He lamented that it’s taken so long to replace the aging bridge.

“It also demonstrates the cost of the delay,” he said. “If we’d done this 15 years ago, it probably would have cost less than $3 billion.”

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U.S. Coast Guard approval of a fixed-span design for a new Interstate Bridge marked a key regulatory step forward last week, but soaring costs have clouded the project’s outlook.

Cost estimates for the Interstate Bridge replacement program have more than doubled, with a high-end estimate for a fixed span rising to $17.7 billion, according to recently unearthed Oregon Department of Transportation documents.

The documents were obtained by City Observatory, a Portland-based think tank, through a public records request. ODOT hadn’t publicly updated its cost estimates since 2022, when it gauged the bridge’s cost at $5 billion to $7.5 billion.

“I was shocked,” said Joe Cortright, a Portland economist who runs City Observatory.

Cortright added that he expected the project’s cost to rise to $9 billion to $10 billion, far below the actual estimates, which range from $12.2 billion to $17.7 billion. The rise in estimated costs far outpaces overall inflation and construction cost indexes, he noted.

ODOT pushed back, saying the cost figures do not represent a complete cost estimate, which involves an in-depth examination of the costs of labor and equipment materials as well as the schedule.

“T��� IBR program has been clear with its partners and the public that the cost of the IBR program is going to increase, but since the cost estimating process remains under way, we do not have a final number to share at this time,” IBR program administrator Carley Francis stated in an email on Wednesday.

An official cost estimate is expected in March, according to ODOT.

Infrastructure projects across the nation “are currently experiencing significant price increases,” Francis stated. “We do not expect the IBR program to be immune to the cost increases we are seeing around the country.”

It’s unclear where leaders in Oregon and Washington will get all the funding needed to construct the bridge. In all, the program has more than $5 billion in identified funding, Francis stated.

The states have pledged $1 billion each, in addition to $217 million in existing state funding. Federal grants and toll revenues are also expected to help foot the bill.

“Ultimately, it’ll continue to be a mix of contributions from different levels of government,” said Mike Salsgiver, executive director of Associated General Contractors‘ Oregon-Columbia chapter.

Ongoing state and federal sources will need to be tapped for the project, he said.

“With a project of this length, it will be an annual revisiting of federal appropriations and each legislature,” he said.

Salsgiver and other transportation advocates will visit Oregon’s congressional delegation in Washington, D.C., in April to push for continued funding.

“T��� region will have to continue to make sure those funding streams are open and able to get this project complete,” Salsgiver said.

Cortright cast doubt on federal willingness to pay for the project.

“Right now, the congressional Republicans and the Trump administration — they’re not really favorably inclined toward transit projects generally, and particularly not those in blue states and cities,” he said.

Project backers were buoyed by the Coast Guard’s determination that a fixed span with 116 feet of vertical clearance will provide adequate room for boats to pass underneath. A movable span would have been even more expensive, according to estimates.

“T���y’re portraying it as a big step forward,” Cortright said. “T���y dodged a bullet.”

ODOT recently told transportation commissioners that the project is marching ahead.

The IBR program team “will continue working to ensure a successful transition from environmental and planning to delivery and construction,” ODOT interim Director Lisa Sumption wrote in a Jan. 15 letter to the Oregon Transportation Commission ahead of a meeting on Jan. 22. “This includes coordinating with partners to update the construction sequencing and funding strategy to advance the first set of investments towards delivering the full program.”

Tools to address costs could include value engineering, seeking additional federal, state and local funding, and construction phasing. That would mean “building portions of the investments that have adequate funding and working to secure funding for remaining investments in the future,” Sumption wrote.

Cortright has been critical of ODOT for what he describes as a pattern of beginning work on projects that have not been fully funded.

“T���y basically turn the sunk-cost fallacy into a management strategy,” Cortright said. “T���y want to create the sense that hey, we’ve started this and we need to finish it.”

2026 is likely to prove a decisive year for the project. Looming ahead is a Sept. 30 deadline to obligate a significant portion of grant funds from the Federal Highway Administration bridge investment program.

Project officials also expect to complete a final supplemental environmental impact statement this year. That will be followed by an amended record of decision that will include an updated cost estimate and financial plan.

IBR program officials are conducting a tolling study for those documents. The study will examine how much tolls will cost, and how much revenue they will raise.

Both project supporters and opponents point to tolling as a potential political vulnerability. Opposition to tolling has been intense, causing Gov. Tina Kotek and legislators to backtrack from a portion of the 2017 transportation funding bill that called for tolling on interstates 5 and 205.

Drivers are unlikely to look kindly on paying tolls for a new Interstate Bridge, either.

“Tolling is a broader challenge,” Salsgiver said.

ODOT’s toll scenarios range from $1.55 per crossing before the bridge is completed to $4.70 post completion, with some offsets for lower-income drivers.

The bridge has been tolled before. Salsgiver recalled as a child that he would throw a quarter into a toll box to cross the existing Interstate Bridge; its second span was completed in 1958.

Today’s drivers have become unaccustomed to paying tolls, Salsgiver said.

“It’s unfortunate,” he said. Removing tolls “taught a generation of Oregonians — and more — that we don’t do tolling here.”

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EV charging infrastructure deployment plans are in the works for Interstates 5 and 84 after the Oregon Department of Transportation secured grant funding from two federal programs for planning, design and installation work at the stations.

During a webinar on Wednesday, ODOT gave an overview of its plans for the public fleet EV charging stations on both highways.

The Charging and Fueling Infrastructure Grant Program is a discretionary grant program that was created by the Bipartisan Infrastructure Law. Its main purpose is to fund alternative fuel infrastructure projects along major highways and interstates throughout the state and communities, with a special focus on medium and heavy-duty infrastructure, said Brett Howell, ODOT’s transportation electrification coordinator.

In 2023, ODOT, the California Department of Transportation and the Washington State Department of Transportation applied for the program. In August 2024, the three states – California, Washington and Oregon – were selected for an award in round 1B of the Charging and Fueling Infrastructure Grant Program. The total award was roughly $102 million to support the development of medium and heavy-duty focused charging infrastructure, as well as a limited number of hydrogen refueling stations along Interstate 5 in all three states and a few additional corridors in California, Howell said.

Oregon received about $21.1 million to develop two medium and heavy-duty charging stations, and one hydrogen refueling station, all to be located along the I-5 corridor.

Howell said the funding for the Charging and Fueling Infrastructure Grant Program is subject to a 20 percent minimum match requirement. ODOT intends to issue a notice of funding opportunity application sometime next fall.

The Carbon Reduction Program provides money to reduce carbon emissions. Oregon received $4.5 million for installation of an EV charging station along I-84, likely between Portland and The Dalles, Howell said.

For the Carbon Reduction Program, there is a funding match of 10.27 percent. ODOT plans to issue a funding opportunity application for in the spring or summer.

The webinar also addressed a new provision for a program through the Oregon Department of Environmental Quality. Oregon DEQ‘s Clean Fuels Program is providing financial incentives for public fleets and their contractors through advance crediting. The financial incentives allow fleets to get an up-front loan of Clean Fuels Program credits when they put a new medium- or heavy- duty electric vehicle into service.

Courtney Herbolsheimer, of Oregon DEQ, said the program, which began in 2016, is a market-based program that reduces the overall carbon intensity of transportation fuels used in Oregon.

“Each type of fuel is assigned a carbon intensity value or level of carbon emissions,” Herbolsheimer said. “Over time, each year, DEQ gradually lowers the amount of carbon intensity average that’s allowed in fuel to meet our annual reduction goals.”

Lower carbon fuels will generate credits, while higher carbon fuels will generate deficits. An entity reports on a quarterly basis the number of kilowatt hours of electricity that are dispensed from its chargers each quarter.

With this new provision – advance crediting – DEQ is able to grant up to six years of credits to an entity up front. Those credits would be received when the vehicle is put into service, Herbolsheimer said.

The program will have one application period per year and will launch in early to mid-2026. Advance credits will apply only to vehicles when they are first put into service. Applicants must remain the owner of the vehicle until they have paid back the advance credits. Oregon DEQ will determine if an application meets the requirements. After an agreement is made, DEQ will issue advance credits.

The entity would pay back those credits over a period spanning at least one year and no later than three years after receiving the credits. Once the credits are repaid, they can go back to the regular program.

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Gov. Tina Kotek on Tuesday announced she will call legislators into a special session in August in the hopes of passing a transportation funding bill.

The Legislature adjourned June 27 without reaching an agreement on a transportation package. New legislation is needed to avert pending layoffs at the Oregon Department of Transportation, Kotek stated in a news release.

“I am confident that lawmakers will step up next month to avert these layoffs by approving the necessary funding for the state’s transportation needs,” Kotek said. “I appreciate their partnership and am eager to be on the other side of this crisis.”

Kotek said her priority is to deliver needed funding for the state highway trust fund for the 2025-27 biennium.

A funded ODOT budget will halt the pending layoffs and maintain operations at maintenance facilities that are otherwise scheduled to be shuttered, Kotek said. The agency began laying off 483 workers on July 7. But Kotek directed ODOT to postpone the effective date of the layoffs for an additional 45 days.

“T��� special session will be focused on critical near-term solutions to stabilize basic functions at ODOT and local governments,” Kotek said. “This is just the first step of many that must be taken to meet our state’s long-term transportation needs.”

More layoffs are planned for early 2026 unless the Legislature approves funding, she said.

Recently, a key holdout on the bill, Sen. Mark Meek, D-Gladstone, said he would be open to a special session, but that he wants Kotek to agree to repeal a state statute that authorizes tolls on interstates 5 and 205.

Notably, Kotek’s announcement did not address funding for any of Oregon’s mega-projects, such as the Interstate 5 Rose Quarter Improvement Project or the Interstate Bridge replacement and highway expansion project.

The Legislature will reconvene on Aug. 29.

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PORTLAND, Ore. (AP) — The group No More Freeways has filed a lawsuit against the Oregon Department of Transportation’s plan to add auxiliary lanes and shoulders to Interstate 5 by Portland’s Rose Quarter.

The federal government allowed the project to move forward without a full environmental impact statement and the group believes that’s a violation of the National Environmental Policy Act, The Columbian reported Monday.

The $800 million project is aimed at decreasing congestion and traffic accidents on a segment of I-5 between its junctions with Interstate 84 and Interstate 405, but it has faced significant opposition from No More Freeways and other Portland community groups that say the freeway expansion would increase pollution and contribute to global warming.

The groups are also concerned about the impact on a nearby middle school.

The project has garnered attention in southwest Washington state’s Clark County due to the large number of local residents who commute to Portland for work, often sitting through heavy backups on I-5 through North Portland.

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The Oregon Transportation Commission will wait until January to decide how to move forward on a plan to widen Interstate 5 and redevelop portions of the surrounding neighborhood near Portland’s Rose Quarter.

The commission, meeting in Lebanon on Tuesday, must choose whether to pursue an environmental impact statement, or stick with an existing, less stringent environmental assessment, for the I-5 Rose Quarter Improvement Project.

The delay came a day after Gov. Kate Brown sent a letter requesting the commission “table the decision on an environmental review path for a few months.” Brown requested the commission wait until progress has been made on a leadership policy, decision-making structure and a study of development alternatives for the highway covers.

Commission Chairman Robert Van Brocklin said he would listen to critics.

“We’re not trying to railroad something through without listening, and we’re not going to,” he said.

Van Brocklin said the commission would carefully consider the governor’s letter.

“Her voice to me carries some additional weight because we serve at her pleasure,” he said.

The delay was, at least in the short term, a victory for activists who have insisted the widening project is the wrong approach to take in an era of worsening global climate change.

The project would add auxiliary lanes and shoulders on I-5 between I-84 and I-405. It also would change surface streets and highway caps surrounding I-5.

The project, which is expected to cost more than $500 million, is backed by construction industry and labor organizations, and many local residents of the historically black Albina neighborhood.

At Tuesday’s meeting, the contrast was stark between the mostly white Portland State University students speaking on behalf of climate group Sunrise Movement PDX, and the older, African-American residents of Albina who have seen their neighborhood reshaped by waves of urban renewal projects and gentrification.

“A lot of people are now talking about the environmental impact such a project may have,” said Larry Anderson, a 63-year-old retired Portland police officer and Northeast Portland resident. “When that freeway was first put in place, when it was predominantly an African-American community, I did not hear those same concerns about the environment.”

Climate activists said the world has only a few years left to avoid the worst impacts of climate change.

“I’m here today because I’m scared,” said Marilyn Fleener of Sunrise Movement PDX. “I was born into a world that prioritizes capital over people.”

Yet some local residents said they welcome the project.

“This $500 million project represents a significant investment in the Rose Quarter area,” said Robert Hamilton, a representative of the Coalition of Black Men in Portland.

The Oregon Department of Transportation and other supporters have emphasized the benefits the project would bring to minority-owned, women-owned and emerging small business contractors. “Upward of $100 million” in contracts is expected to go to disadvantaged firms, said Nate McCoy, executive director of the National Association of Minority Contractors’ Oregon chapter.

“This kind of economic empowerment is needed in our community now,” said Jeff Moreland, president of Raimore Construction. “Do not – I repeat do not – delay this project any longer.”

The project is at about 15 percent design, said Megan Channell, major projects manager for ODOT Region 1 in Portland. The project was identified as a priority and partially funded by House Bill 2017 in the 2017 legislative session.

“We are required to design and build the project,” Van Brocklin said.

A “cost to complete” report is due to the Legislature by Feb. 1, 2020.

Commissioner Alando Simpson said ODOT has “become that punching bag,” caught between rapidly changing transportation needs and a long-established structure.

“We’re operating in a broken system,” he said.

Commissioner Sharon Smith said ODOT is moving in the right direction – but not too fast.

“Our organization is doing some course-correcting to focus on reduction of carbon emissions,” she said. “I know it’s probably not as fast as many of you would like to see, but I don’t think we can put the brakes on this system that we have in a way that’s not thoughtful in the context of this community and the projects that we have in front of us.”

The post Group delays decision on I-5 improvements appeared first on Daily Journal of Commerce.

The Oregon Department of Transportation‘s bid to widen Interstate 5 through the Rose Quarter is encountering fierce opposition from some in Portland who say the project is unlikely to ease congestion and will instead set back the city’s long-term goals.

A public comment period for the environmental assessment ended Monday, and a meeting for interested contractors is scheduled for next week. ODOT is moving ahead with the planning process, and will now begin working on responses to public comments and incorporating any changes into a final environmental assessment.

Critics are pushing the state agency to undergo a full environmental impact study, a longer and more intensive process than the current environmental assessment.

The project is a reimagining of Interstate 5 along a 1.7-mile stretch between Interstate 84 at the south and Interstate 405 at the north, including the Rose Quarter and surrounding local streets. The heart of the project involves widening the interstate with an auxiliary lane and building new lids, or wide bridges, to connect surface streets.

The project is expected to cost $450 million to $500 million in today’s dollars, with construction lasting for four to five years, according to ODOT.

The project has come to reflect competing visions for Portland’s future. Advocates for racial equality point to 20th-century “urban renewal” clearances in the area that razed block after block of historically African-American neighborhoods. Bicyclists have raised concerns that the project takes Portland in the wrong direction, toward a more auto-centric urban design. Environmental groups question ODOT models that forecast lower congestion and reduced emissions after the project’s completion.

Some critics have compared the widening project to Portland residents’ successful fight against the Mt. Hood Freeway through East Portland during the 1970s. Funds for the freeway were eventually used for the other projects, including Portland’s first MAX light-rail line.

ODOT spokesman Don Hamilton said the I-5 Rose Quarter Improvement Project is not comparable to building a new highway.

“This is not an increase in through lanes,” he said. “It is simply auxiliary lanes and a safety shoulder in each direction.”

Here’s a look at some of the most important issues surrounding the project:

Will it ease congestion?
The primary driver of the project is to speed traffic through the Rose Quarter, a longtime bottleneck caused in part by multiple onramps and off-ramps. ODOT officials pointed to I-5’s importance as a national freight route; the freeway is the main north-south route on the West Coast from Mexico to Canada.

“This is an important bottleneck to address to keep our state’s economy moving,” said Megan Channell, a senior project manager at ODOT.

Auxiliary lanes and 12-foot shoulders would allow emergency vehicles to get through the chokepoint. As it is now, police and ambulances are often stuck in traffic like everyone else. Vehicles involved in accidents, without adequate space to pull over, frequently cause delays. ODOT calculated accidents cause 164 hours of delay a year for northbound drivers, and 279 hours a year for southbound drivers.

ODOT transportation modeling shows the project would save time for commuters in most scenarios compared to existing conditions, known as the “no-build alternative.”

Hamilton said it makes sense to increase capacity on I-5 to handle population in the Portland area. “Let’s remember that there has been a tremendous increase in traffic on this freeway since it opened in the ’60s,” he said.

Some critics challenge the idea that more roads and wider freeways fix traffic congestion. They point to the idea of “induced demand,” which holds that more road capacity encourages more drivers to fill up the highway. Think of traffic congestion on freeways in Los Angeles or Houston with a dozen lanes or more.

“Time and again, cities around the U.S. and around the world have widened freeways with the avowed purpose of reducing congestion,” Portland economist Joe Cortright wrote in City Observatory. “And it’s never worked. “

ODOT’s traffic models also take into account projects that have not been built, including a successor to the Columbia River Crossing I-5 bridge. Although there is new momentum in Washington to fund the long-planned bridge, there’s no guarantee the bridge will be built.

Channell defended the use of the travel demand model, which includes all projects in Metro’s Regional Transportation Plan.

“T��� methodology is what’s used within the region for all projects,” she said. “It’s the best tool we have available to use for transportation projections in this region.”

Hamilton said models show the project would reduce air pollution.

“What we saw in there is that hydrocarbons will decrease slightly if we build the project, and air pollution will decrease slightly if we build the project,” he said.

Widening at Eastbank Esplanade

A less-noticed aspect of the project could impact users on the popular Eastbank Esplanade, a riverfront public trail for cyclists, runners and pedestrians. The freeway viaduct is planned to be widened south of Northeast Lloyd Boulevard and adjacent to the Esplanade.

“It is difficult to see how widening a freeway viaduct directly adjacent to a park facility, or perhaps even over it, cannot be an adverse affect,” Portland architect and blogger Iain Mackenzie wrote in public comments submitted to ODOT. “It is also hard to understand how this can be mitigated to a less than significant level.” Mackenzie called for ODOT to conduct a full EIS.

Channell disagreed that Esplanade users would be negatively impacted.

“T��� viaduct in that area is being widened with the auxiliary lane, but it would be the same feel as being next to the same transportation facility,” she said.

Impact to middle school

Portland Public Schools has also requested ODOT undertake an EIS, saying how it will affect Harriet Tubman Middle School has not been fully studied. The school district pointed to concerns about air quality, soil stability, noise and traffic and construction impacts at the campus, which is among the district’s most diverse schools.

“It is PPS’ position that the depth, complexity and severity of potential significant short- and long-term negative impacts to PPS facilities, staff, students, families and stakeholders warrants a full (EIS),” the district stated in a four-page letter.

Channell said ODOT would work to mitigate any impacts to the school. “We will not do anything that compromises the safety of students or staff at Tubman Middle School,” she said.

Highway covers and bike access

It’s unclear what development potential could occur atop the top highway lids proposed for the project.

“This project is much more than just a highway project,” Channell said. “We have significant improvements to our local streets in this area, including the highway covers which reduce the practical and visual barriers of I-5 and reconnect the neighborhood.”

The Clackamas Bridge for bicyclists and pedestrians, just south of the Broadway-Weidler interchange, would connect to the Rose Quarter on the west side.
The city’s Bicycle Advisory Committee is not sold that the project will bring significant improvements. In a letter, the committee stated the project “would mostly propose rebuilding bicycle facilities on the same streets that already have them,” with some exceptions.

“We’re not convinced that it represents a substantial improvement over what’s there,” said Mackenzie, a committee member.

Contracting

ODOT is in the early stages of reaching out to contractors who may wish to bid on the project. From 4:30 to 6:30 p.m. on April 9, ODOT will host a networking event for prime contractors, subcontractors and agency project managers at the Oregon Convention Center.

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