Let Portland-area residents vote on interstate tolling plan

The proposal to establish tolls on I-205 and I-5 would affect almost everyone in the metro area and carry high stakes for individuals and the economy

Residents in the Portland metropolitan area should be able to vote on the establishment of a new fee/tax for installing two tolling stations on Interstate 205 because of the immense financial stakes for both individuals and communities.

The $93 million that metro-area residents would pay annually in additional fees/taxes – in perpetuity and increasing – outweighs the benefits that come from tolling. And the truth is, those fees are just a start: They do not include an additional $39 million in tolling fees from moving freight or from additional tolling stations.

Even ODOT admits that the cumulative benefits are of minor value.

After reviewing the report, one comes away with the conclusion that tolling is just another new source of revenue. Under such circumstances, and in the name of democracy, the most-effected residents should have a say in a vote to essentially add a new “tax.”    

The report is ODOT’s I-205 Environmental Assessment (EA) for the I-205 freeway between Highway 213 and Stafford Road.  The EA is about 2,000 pages and, while it is an impressive document, it is not an easy read.  Many important points are buried in the footnotes and appendixes regarding the tolling benefits, mitigations, and costs. Buried deep within the appendixes and footnotes are details of what the report calls "minor cumulative impacts" that metro area residents can expect.

In summary, even ODOT admits the benefits of tolling are very small compared to the permanent and perpetual costs.  The EA states “The Build Alternative would contribute to minor cumulative impacts and benefits to the economy.”  The benefits would be related to improved travel times, freight reliability, vehicle operating cost savings and additional business revenue/employment.  What is not noted is the likely incremental costs to every household from additional toll stations on I-205 and I-5 will outweigh the incremental benefits of additional tolling stations.

First, the benefits. ODOT states the Build Alternative provides for building/reinforcing bridges that are earthquake resistant, adding a third lane on I-205 between Oregon City and Stafford Road, managing congestion, improving safety, responding to climate change, addressing social and environmental justice, mitigating diversion, and generating revenue to pay for the improvements.  There are two tolling locations that are to be initially operational in late 2024: one tolling station (gantry) at the Abernathy Bridge and one gantry at the Tualatin River Bridge. Additional gantries/tolls are planned for the rest of I-205, I-5 and the two interstate bridges.  Bottom line is any user of the freeways will pay to use I-205 (I-5 to the Glenn Jackson Bridge) and I-5 (Boone Bridge to Columbia River Interstate bridge). 

Second, the mitigation. The EA provides for two kinds of mitigation regarding the costs of tolling. Financial offsets for low-income families and infrastructure mitigation to cities and counties, including physical and safety improvements for roadways and intersections, transit improvements, and active transportation improvements.

According to the EA, in the short-term, the Build Alternative will not result in any negative economic effects during construction; therefore, no mitigation is proposed.  Also, NO additional mitigation measures are provided for long-term and indirect economic impacts should they occur, beyond those already identified in the EA..

Third, the costs. The initial tolling gantries on I-205 and I-5 will result in significantly more costs to households.  The location of the two toll booths leaves many people with no option except to pay the tolls. With proposals like congestion pricing, at least there would be the theoretical option of changing routes and times when you drive to avoid tolls. Mass transit options and changing-where-you-drive options are limited in places like Happy Valley, Wilsonville and much of the metro counties.

What is the dollar cost to metro residents for this new fee/tax?  According to the EA the estimated annual weekday toll fees in the first year in 2021 dollars will be $575 per year per household.  This does not include money from weekend driving or from additional toll stations on I-205 and I-5.  According to the EA, beginning after construction, households will be paying about $93 million a year in tolls for two tolling stations.  

If the $93 million in annual fees were used to support a 30-year bond for infrastructure, the bond would be about $1.7 billion.  If the collective governments in the metro area wanted to establish a NEW tax/fee to support a bond measure of $1.7 billion, they should make their case to the residents in the metro area and let them vote.

A potential, perhaps likely, outcome in a few years and continuing for decades is flat or decreasing gas taxes (as internal combustion engines become more efficient and more electric vehicle use grows), increasing tolling fees/taxes at more and more locations, and a new tax on vehicle-miles travelled.

The Oregon City and West Linn city councils and the Clackamas County Commission have voted against tolling I-205, since they determined the costs to their cities outweigh the benefits.  Washington County Commission voted in favor.  The other local governments should submit the matter to a vote of the people. 

Do the benefits outweigh the costs of a significant and permanent increase in taxes/fees from tolling? Let the people vote.  If the public determines a new additional fee/tax is worth the benefits provided, then proceed.  If not, then all of us can deal with the consequences of increased congestion on I-205 and elsewhere.

Absent a vote, citizens should exercise their democratic right to organize an initiative petition on tolling. One democratic way or another, The Oregon Way is for the people to debate and decide the major issues.  Tolling is a major issue.  Let the people vote.

Jeff Gudman, a lifelong Oregonian, was a member Lake Oswego City Council from 2011-18, and a candidate for Oregon State Treasurer in 2016 and 2020.