Cost, Funding & Economic Benefits
Cost, Funding & Economic Benefits
The IBR program will provide ongoing tangible economic benefits across the region through more reliable travel times, reduced congestion, improved safety and quality of life, reduced emissions, and better access to goods and services.
In addition, the multi-year development and construction of the IBR program — and the potential infusion of billions of federal funds will provide our region with a once-in-a-generation economic opportunity.
Construction of the IBR program is projected to generate $11.6 billion in total gross regional economic activity, nearly double the $6 billion estimated cost to build the program.
What is the Construction Economic Impact Analysis (EIA)?
The EIA conveys the return on investment the region will receive from construction of the IBR program. An EIA focuses on how construction expenditures ripple through the local economy, generating multiplied impacts. The EIA measures overall gross economic impacts of IBR construction spending including employment, job earnings and the value of additional economic activity in dollars. IBR program cost estimates in year of expenditure dollars were used to calculate direct economic impacts. The IBR EIA will be updated as scope and cost estimates continue to be refined. For more information on the analysis process used, read the Construction Economic Impact Analysis.
The dollars invested in the IBR program will have positive impacts within our communities, including:
- Direct Impacts: Spending resulting in employment and earnings for construction workers, engineers and designers.
- Indirect Impacts: Economic activities resulting from purchases made by regional firms who supply, or receive, direct expenditures.
- Tertiary Impacts: Economic activities spurned by regional spending, such as increased labor earnings for employees of local businesses, and goods and services purchased to provide that employment.
The total gross employment impacts of 43,300 person-year jobs during program delivery are expected to peak in 2030 at over 8,000 person-year jobs, with nearly 3,500 directly involved in construction. Approximately 18,700 of those person-year jobs will be construction and professional services jobs directly engaged in delivering the IBR program.
What is the Cost Estimate?
The IBR program cost estimate reflects the components being analyzed in the Draft Supplemental Environmental Impact Statement. The cost estimate accounts for current market conditions, along with potential risks and cost saving opportunities, and includes costs associated with constructing the replacement bridge and other program components in the 2025 – 2035 timeframe. The estimated cost for the program is $5 to $7.5 billion, with a likely estimated cost of $6 billion. Revenue from a diverse range of sources is required, including federal funds, tolling, and state funds from both Oregon and Washington. Tolls will be used to help pay for construction, operations and maintenance of the facility, and to help improve travel reliability within the program corridor. The Financial Plan identifies potential funding sources and financing mechanisms, including federal funds, tolling, and state contributions.
What is included
- Replacement bridge over the Columbia River
- Replacement of the North Portland Harbor Bridge
- One auxiliary lane southbound and northbound
- Extension of light rail from Portland to Vancouver and three new station locations
- Partial interchange on Hayden Island
- Full interchange on Marine Drive
- Access bridge from Hayden Island to Marine Drive
What is the Financial Plan?
The Financial Plan identifies potential funding sources and financing mechanisms, including federal funds, tolling, and state contributions. The Financial Plan identifies committed, anticipated, and prospective funding sources to achieve the anticipated cost estimate of $6 billion.
Potential funding sources include:
- Federal Competitive Grants ($2.5B prospective, and $1M committed)
- Existing Oregon and Washington State Funding ($198M committed)
- Washington Funding Contribution ($1B committed)
- Oregon Funding Contribution ($1B anticipated)
- Toll Funding ($1.237B anticipated)
- The Oregon and Washington Transportation Commissions have toll rate setting authority; tolling will be implemented through a bi-state process.
- Toll revenue collected on the facility will be dedicated to the Interstate Bridge.
The funding assumptions in the Financial Plan will continue to evolve as the IBR program cost estimates are updated as the program moves further into design, and more information is known about anticipated and prospective funding.
How will Tolling Details be Determined?
Tolling for the IBR program is anticipated to include variable priced tolling with the goal of funding construction and facility operations and maintenance, improving reliability and managing demand, encouraging the use of other modes of travel and off-peak travel, and reducing optional trips.
Toll authorization and rate setting for the Interstate Bridge rests with the legislatures and transportation commissions in Oregon and Washington. The IBR program will study several potential toll scenario ranges including possible low-income toll scenarios, with input from the transportation commissions, in an upcoming toll traffic and revenue analysis. These scenarios are not final rates but will inform future rate setting. The Oregon and Washington transportation commissions will jointly set rates and consider low-income discounts and other exemptions. The commissions’ adoption of toll rates is not anticipated to occur until shortly before tolling is estimated to begin on the facility. The earliest tolling is currently anticipated to start on the Interstate Bridge is in 2026.