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Panel hears bill to let Interstate Bridge account retain interest earnings
Summary
House Bill 2111 would allow the Interstate Bridge Replacement toll facility bond retirement account to keep its proportionate share of interest earnings rather than sending them to the state general fund; supporters said the change prevents arbitrage issues and better aligns interstate partnership accounting.
House Bill 2111 was briefed to the Transportation Committee on Jan. 15. Committee staff said the bill would allow the Interstate Bridge Replacement (IBR) project toll facility bond retirement account to retain its proportionate share of investment earnings instead of directing those earnings to the state general fund.
David Monnke, staff to the committee, explained the IBR is a bi‑state project to replace the Interstate 5 bridges and connecting interchanges between Washington and Oregon. Tolls have been conditionally authorized and up to $2,500,000,000 in bonding for design, right‑of‑way and construction was approved last year; the bill would allow the IBR account to retain earnings beginning 90 days after adjournment.
In public testimony, Ron Arp (Identity Clark County) urged the committee to advance the bill, stressing urgency to replace the 109‑year‑old bridge for safety and freight reliability. Matt Zovich, legislative director for State Treasurer Mike Pellicciotti, supported the change on technical grounds: retaining interest in the project account avoids potential Internal Revenue Service arbitrage issues and simplifies interstate partnership accounting.
The committee did not take a vote during the hearing.
Background: bonding authority for the project was authorized previously; this bill addresses how the account’s investment earnings are treated so project proceeds are available for debt service and project benefit rather than credited to the general fund.
