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.

“The 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.

“The 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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The city of Portland is preparing public comments to submit on the proposed Interstate Bridge‘s design by the end of September.

On Thursday, the Portland Design Commission sought consensus on what changes they would like to see in the early bridge designs.

Chairman Brian McCarter focused on how the bridge will connect with the Vancouver Waterfront at the north end. A shared use ramp from the bridge to the waterfront appears to be “quite a journey,” he said.

“I’m having a struggle with the configuration being this long,” he said. “Is this the only way to do this, or could this be enhanced by some stairs, some elevators at strategic locations?”

Brenda Martin, major projects and transit manager for the Portland Bureau of Transportation, said a connection should be made between the light rail and a shared path for bicycles and pedestrians, given their close proximity.

Commissioners also discussed whether the design details of the bridge landings should differ on the Oregon and Washington sides. Commissioner Zari Santner said the bridge doesn’t need to look the same on both sides.

McCarter agreed, as long as it’s cohesive, he said. “Variety is great as long as it’s within an overall story,” he said.

McCarter also pushed for transparency in the bridge railings, so users can see outside the bridge.

Commissioners will consider and likely vote to approve a letter to the Interstate Bridge Replacement Program at their Sept. 18 meeting.

Construction on the bridge is expected to last 15 years, with 24 construction packages up for bid. The total project was estimated in 2023 to cost $5 billion to $7.5 billion. That range is expected to grow when Interstate Bridge project officials release an updated cost estimate later this year or early in 2026.

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If Washington Gov. Jay Inslee‘s recent comments to a reporter recently are any indication, there may be some bad blood brewing between the state and the general contractor for the Seattle tunnel project.

How bad? Consider this: The state has rejected 80 percent of the $192 million worth of cost change orders submitted so far by general contractor Seattle Tunnel Partners. The overruns mainly are associated with the breakdown of Bertha, the boring machine that was being used to dig the tunnel.

That state’s unwillingness to OK overruns on the project likely won’t change anytime soon, either. In a with Grist reporter David Roberts, Inslee is clear not just about the level of his frustration, but also where he stands when it comes to the increasing costs of the at-a-standstill project.

For starters, Inslee says Seattle Tunnel Partners, not Washingtonians, are on the hook for the overruns on the project.

Furthermore, while Inslee acknowledges that Seattle Tunnel Partners has a reputation for being “aggressive” when it comes to recouping costs for projects, he also points out his 20 years spent as a litigator. That experience, he says, means he’s no pushover when it comes to donning legal gloves to duke it out in a courtroom.

The post BLOG: Fun with numbers — the Seattle tunnel project appeared first on Daily Journal of Commerce.

Washington Gov. Chris Gregoire today signed an suspending some of the state’s rule-making processes in an effort to support small businesses and local governments.

The order, which suspends non-critical rule development and adoption, is supposed to limit the resources businesses spend following certain rules during tough economic times.

“Gov. Gregoire recognizes that business and local government need to be focusing on providing frontline services. Rather than take resources away, she wants all efforts to be put toward improving business and ensuring those services are delivered effectively,” said Karina Shagren, spokeswoman for the governor.

The will allow agencies to continue with rule-making proceedings if the rule is required by federal or state law, required by a court order or essential to manage budget shortfalls, maintain fund solvency or generate revenue.

“She recognizes that rules are needed to protect the health and well being of citizens. But given the amount of time that businesses and local government spend to develop and implement these rules, she’d like to see the time spent creating jobs,” Shagren said.

The suspension on rule making will last through Dec. 31, 2011

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Washington Gov. Chris Gregoire on Tuesday signed several transportation-related bills including a supplemental transportation budget and bills for the Washington 520 bridge replacement project.

The budget includes $590 million in federal stimulus for high-speed rail from Seattle to Portland. The stimulus dollars are expected to sustain or add 3,378 jobs, according to a statement from the governor’s office.

Washington 520 is a state highway that extends almost 13 miles from Seattle to Redmond with a bridge over Lake Washington.

“We are making investments in our transportation system across the state and leveraging federal recovery dollars to get more done, to put more people to work and to get our economy on a path to recovery,” Gregoire said in the statement.

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A released yesterday by the Washington State Employment Security Department says Washington has increased its private-sector green jobs by nearly one-third in the last year. And many of those jobs are in construction.

Green jobs currently make up 3.3 percent of all jobs in Washington. A green job is defined as a job where employees work to increase energy efficiency, produce renewable energy or prevent, reduce or clean up pollution. The construction industry has the highest percentage of green jobs at 38.6 percent.

According to the report, most green jobs are in existing occupations that are evolving to include sustainable activities and responsibilities. Green jobs in construction increased by 29 percent, despite a 31 percent drop in total construction jobs since the beginning of the recession.

This is the second year that the ESD has conducted a green jobs survey. In 2008, Washington had 47,194 green jobs in the private sector. The 2009 survey, which includes government jobs as well as additional private industry jobs not included in 2008, counted 99,319 green jobs.

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Ed Orcutt, a Washington state representative from Kalama, is warning his legislative colleagues that any tax increases could hinder the slight economic recovery his state is currently experiencing. And while he didn’t specifically point a finger to the south, his concerns should sound eerily reminiscent of those voiced by parties that opposed raising Oregon’s corporate minimum tax.

Washington residents are cautiously celebrating the recent news, released Friday morning by the Washington State , that their state’s economy is starting a slow climb away from recession status.

But even before the celebratory confetti started flying, Orcutt was there to cast some cautionary rain on their parade.

“…this sigh of relief can turn quickly into sighs of frustration unless leaders are very careful,” Orcutt said in his press release. “Our state economy is fragile right now … any tax on employers hurts their ability to retain current workers or rehire those who have been laid off.”

Sound familiar, Oregon residents?

I know Oregon has a reputation for being willing to tread where few — and sometimes even none — have dared go before. And from the comments around the country, it sounds as if the state’s done it again with Measure 67.

I just hope that this is one time when our desire to forge a new path doesn’t turn to be a dead-end road to nowhere. Or worse, a Thelma-and-Louise-style, point-of-no-return plunge off the edge of a steep cliff.

The post Who’s watching Measure 67 fallout? appeared first on Daily Journal of Commerce.

Ed Orcutt, a Washington state representative from Kalama, is warning his legislative colleagues that any tax increases could hinder the slight economic recovery his state is currently experiencing. And while he didn’t specifically point a finger to the south, his concerns should sound eerily reminiscent of those voiced by parties that opposed raising Oregon’s corporate minimum tax.

Washington residents are cautiously celebrating the recent news, released Friday morning by the Washington State , that their state’s economy is starting a slow climb away from recession status.

But even before the celebratory confetti started flying, Orcutt was there to cast some cautionary rain on their parade.

“…this sigh of relief can turn quickly into sighs of frustration unless leaders are very careful,” Orcutt said in his press release. “Our state economy is fragile right now … any tax on employers hurts their ability to retain current workers or rehire those who have been laid off.”

Sound familiar, Oregon residents?

I know Oregon has a reputation for being willing to tread where few — and sometimes even none — have dared go before. And from the comments around the country, it sounds as if the state’s done it again with Measure 67.

I just hope that this is one time when our desire to forge a new path doesn’t turn to be a dead-end road to nowhere. Or worse, a Thelma-and-Louise-style, point-of-no-return plunge off the edge of a steep cliff.

The post Who’s watching Measure 67 fallout? appeared first on Daily Journal of Commerce.

A bill passed this year requires the Washington State Building Codes Council to adopt more energy-efficiency codes for buildings beginning in 2013. That’s not fast enough for Gov. Christine Gregoire, who wants the SBCC to consider 172 code changes to improve energy efficiency in buildings in her state by 30 percent beginning in July 2010. But homebuilders say that’s too soon and that the cost impacts of such changes have been grossly underestimated.

Changes to the code being considered by the SBCC include increased insulation and new building envelope requirements. According to Department of Commerce energy policy staff, the new codes will add $1 to $1.24 per square foot to construction costs. But Brian Minnick of the Building Industry Association of Washington says those figures were lowballed.

“Maybe in smaller homes this is the case, but the builders we’ve talked to say that costs for the proposed changes range from $10,000 to $20,000 more per house,” Minnick said. “The same people doing this analysis are the people pushing for these changes.”

Minnick says the DOC’s estimates are not taking into consideration labor, taxes and other peripheral costs. Adair Homes of Vancouver recently performed its own analysis of how the code changes would impact floor plans they construct. According to Adair, the codes will increase costs for a 2,500-square-foot home by $27,000. For other builders, Minnick says, it could be even higher.

But Kim Drury, senior policy analyst for the Northwest Energy Coalition, disagrees, saying the codes will make home ownership more affordable because of lower energy bills. She says home buyers with a standard mortgage will see a return on their investment within two years, and that after 10 years, they will see $2,500 in energy savings.

“There’s no denying homebuilders have been hit by the recession,” Drury said. “But is energy code responsible? I don’t see how they can make that claim. These are not major new measures. All of these are well-tested methods.”

However, Art Castle, executive director of the Kitsap County Homebuilders Association, is worried that more expensive homes resulting from code changes combined with tight lending conditions will keep home buyers from obtaining standard mortgages.

“Without any creative financing that existed previously, the cost impact of these codes will make it difficult to produce a home that people can qualify for,” Castle said.

It’s not that homebuilders are against efficiency, Minnick said, but rather that the government is moving too fast without considering cost impacts. State Rep. Dan Kristiansen (R-39th District) agrees, saying that moving forward on this accelerated schedule will force smaller contractors and manufacturers without the resources to comply to quit the business.

“The governor is asking for half of what we approved with Senate Bill 5854 to be done within 12 months,” said Kristiansen. “Our builders and manufacturers tell me, ‘We can do it; just give us some time like we negotiated in the original bill.’ ”

Senate Bill 5854, approved in May, directed the SBCC to adopt energy codes from 2013 to 2031 that incrementally lead to a 70-percent improvement in energy efficiency compared to 2006 code.

A spokesman for Gregoire, Glenn Kuper, disagrees that the changes are coming too quickly, saying that the state and the nation will continue to see environmental decline if climate change isn’t mitigated.

“These changes are based on goals being proposed by the U.S. Department of Energy and have already been incorporated into both Senate and House bills,” Kuper said. “There’s been strong consensus that a 30-percent reduction is the right direction to go.”

Chuck Day, construction director for Adair Homes, will present his company’s cost analysis of the proposed code updates at a public hearing on Tuesday at 10 a.m. at the Holiday Inn Seattle-Renton. Another public hearing will be held on Oct. 5 at 9 a.m. in the Spokane City Council chambers.

The SBCC will review input from the public hearings on Oct. 29. If the SBCC approves the changes, they would then go before the state Legislature in January.

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