SB 5734 — Concerning the interstate bridge replacement toll bond authority.

S-2646.1Z-0056.2 SUBSTITUTE SENATE BILL 5734 State of Washington 69th Legislature 2025 Regular Session By Senate Transportation (originally sponsored by Senators Liias, Harris, Cleveland, Cortes, and King;

by request of Department of Transportation)Transportation READAN FIRSTACT TIMERelating 04/08/25.to the interstate bridge replacement toll bond authority;

ANamending ACTRCW Relating47.10.905, to47.10.906, theand interstate47.10.907; bridge replacement toll bond authority;

amending RCW 47.10.907;

The(1) legislatureIn recognizesorder thatto replacementprovide offunds necessary for the agingdesign, right-of-way, and construction of the Interstate 5 bridge acrossreplacement project as allowed in RCW 47.56.902 and 47.56.904, there shall be issued and sold upon the Columbiarequest riverof isthe adepartment priorityup forto $1,600,000,000 of general obligation bonds of the state of Washington.Washington first payable from toll revenue and excise taxes on fuel and vehicle-related fees in accordance with section 4 of this act.

The interstate bridge replacement project will be completed in partnership with the state of Oregon, with equal sharing of bridge replacement costs and net toll revenues.

The legislature finds that a variety of revenue sources and financing mechanisms will be required for Washington to provide its full share of the costs.

The legislature intends to provide options for financing portions of the project while recognizing that no Washington state debt will be issued for this project until approved by the state financing committee, and only bonds necessary and supported by revenues will be issued.

As part of the financing plan for the project, Washington or Oregon may elect to pursue a federal transportation infrastructure finance and innovation act loan, repayable solely from toll revenues.

The legislature intends for this act to support that application process.

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1 SSB 5734 NEW SECTION.

Sec.

2.

(1) In order to provide funds necessary for the design, right-of-way, and construction of the Interstate 5 bridge replacement project as allowed in RCW 47.56.902 and 47.56.904, there shall be issued and sold upon the request of the department up to $2,500,000,000 of general obligation bonds of the state of Washington first payable from toll revenue and excise taxes on fuel and vehicle-related fees in accordance with section 5 of this act.

3.2.

No bonds may be offered for salep. without prior legislative appropriation of the net proceeds of the sale of the bonds.

1 SB 5734 sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

3.

(1) The proceeds from the sale of bonds authorized in section 1(1) of this act must be deposited in the Interstate 5 bridge replacement project account created in RCW 47.56.904.

(2) The bond proceeds must be available only for the purposes enumerated in section 1 of this act, for payment of bond anticipation notes or other interim financing, if any, capitalizing interest on the bonds, funding a debt service reserve fund, if any, and for the payment of bond issuance costs, including the costs of underwriting.

NEW SECTION.

Sec.

(1)Bonds Theissued proceedsunder from the saleauthority of bondsthis authorizedsection inand sectionsections 2(1)1, 6, and 7 of this act must bedistinctly depositedstate inthat they are a general obligation of the Interstatestate 5of bridgeWashington, replacementmust projectpledge accountthe createdfull infaith RCWand 47.56.904.credit of the state to the payment of the principal thereof and the interest thereon, and must contain an unconditional promise to pay such principal and interest as the same becomes due.

(2) The bondprincipal proceedsof mustand beinterest availableon only for the purposesbonds enumeratedmust inbe sectionfirst 2payable ofin thisthe act,manner forprovided paymentin ofthis bondsection anticipationand notessections or1, other6, interimand financing,7 ifof any,this capitalizingact interestfrom ontoll therevenue bonds,and fundingthen afrom debtproceeds serviceof reserveexcise fund,taxes ifon any,fuel and forvehicle-related thefees paymentto ofthe bondextent issuancetoll costs,revenue includingis thenot costsavailable offor underwriting.that purpose.

Toll revenue and the state excise taxes on fuel imposed by chapter 82.38 RCW and vehicle-related fees are hereby pledged to the payment of any bonds and the interest thereon issued under the authority of this section and sections 1, 6, and 7 of this act, and the legislature agrees to continue to impose these toll charges on the Interstate 5 bridge replacement project, and on any other eligible toll facility designated by the legislature and on which the imposition of tolls is authorized by the legislature in respect of the bonds, and excise taxes on fuel and vehicle-related fees in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of this section and sections 1, 6, and 7 of this act.

Bonds(1) issuedIf under the authority of this section and sectionsto 2,the 7,extent andthat 8the of this act must distinctly state thatfinance theycommittee aredetermines, ain generalconsultation obligationwith of the statedepartment ofand Washington,the musttolling pledgeauthority, thethat fullit faithwill andbe creditbeneficial offor the state to theissue paymentany ofbonds theauthorized principalin thereofsections and1, the4, interest6, thereon, and must7 containof anthis unconditionalact promise to pay such principal and interest as thep. same becomes due.

The2 principalSB of5734 andtoll interestrevenue on the bonds mustrather bethan firstas payablegeneral inobligation bonds, the mannerstate providedfinance incommittee thisis sectionauthorized andto sectionsissue 2, 7, and 8sell, ofupon thisthe actrequest fromof tollthe revenuedepartment, andsuch thenbonds fromas proceedstoll ofrevenue excisebonds taxes on fuel and vehicle-relatednot feesas togeneral theobligation extentbonds. toll revenue is p.

2Notwithstanding SSBsection 57344 notof availablethis foract, each such bond must contain a recital that purpose.payment or redemption of the bond and payment of the interest and any premium thereon is payable solely from and secured solely by a direct pledge, charge, and lien upon toll revenue and is not a general obligation of the state to which the full faith and credit of the state is pledged.

(2) Toll revenue andis the state excise taxes on fuel imposed by chapter 82.38 RCW and vehicle-related fees are hereby pledged to the payment of any bonds and the interest thereon issued under the authority of this sectionsection, and sections 2, 7, and 8 of this act, and the legislature agrees to continue to impose these toll charges on the Interstate 5 bridge replacement project, and on any other eligible toll facility designated by the legislature and on which the imposition of tolls is authorized by the legislature in respect of the bonds, and excise taxes on fuel and vehicle-related fees in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of this sectionsection. and sections 2, 7, and 8 of this act.

(1) IfFor andbonds toissued under the extentauthority thatof thethis statesection financeand committeesections determines,1, in4, consultationand with7 theof departmentthis andact, the tollingstate authority,treasurer thatshall itfirst willwithdraw betoll beneficialrevenue forfrom the stateappropriate totoll issueaccount anyfor bondsthe authorizedfacility infor sectionswhich 2,the 5,bonds 7,are issued and 8sold, ofand, thisto actthe asextent toll revenue bondsis rathernot thanavailable, asexcise generaltaxes obligationon bonds,fuel theand statevehicle-related financefees committeeand isdeposit authorizedin tothe issuetoll andfacility sell,bond uponretirement theaccount, requestor ofa special subaccount in the department,account, such bondsamounts, asand tollat revenuesuch bondstimes, andas notare asrequired generalby obligationthe bonds.bond proceedings.

Notwithstanding(2) sectionAny 5excise oftaxes thison act,fuel eachand suchvehicle-related bondfees mustrequired containfor abond recitalretirement that payment or redemptioninterest ofon the bondbonds andauthorized paymentby ofthis thesection interest and anysections premium1, thereon4, is payable solely from and secured7 solelyof bythis aact directmust pledge,be charge,taken andfrom lienthat uponportion tollof revenuethe andmotor isvehicle notfund athat generalresults obligationfrom of the stateimposition toof whichexcise thetaxes fullon faithfuel and creditvehicle-related offees theand statewhich is, or excisemay taxesbe, onappropriated fuelto orthe vehicle-relateddepartment feesfor arestate pledged.highway purposes.

(2)Funds Tollrequired revenuemust isnever herebyconstitute pledgeda tocharge theagainst payment of any bondsother andallocations the interest thereon issued under the authority of thisfuel section,tax and thevehicle-related legislaturefee agreesrevenues to continuethe tostate, imposecounties, thesecities, tolland chargestowns onunless the Interstateamount 5arising bridgefrom replacementexcise project,taxes and on anyfuel other eligible toll facility designated by the legislature and onvehicle-related whichfees thedistributed impositionto of tolls is authorized by the legislaturestate in respect of the bonds,motor invehicle amountsfund sufficientproves insufficient to pay,meet whenthe due,requirements thefor principalbond andretirement or interest on allany bondssuch issuedbonds. under the authority of this section.

(3) Any payments for bond retirement or interest on the bonds taken from other revenues from the fuel taxes and vehicle-related p.

3 SB 5734 fees that are distributable to the state, counties, cities, and towns must be repaid from available toll revenue in the manner provided in the bond proceedings or, if toll revenue is not available for that purpose, from the first revenues from the excise taxes on fuel and vehicle-related fees distributed to the motor vehicle fund not required for bond retirement or interest on the bonds.

Any excise taxes on fuel and vehicle-related fees required for bond retirement or interest on the bonds authorized by this section and sections 1, 4, and 7 of this act must be reimbursed to the motor vehicle fund from toll revenue in the manner and with the priority specified in the bond proceedings.

(1)Bonds For bonds issued under the authority of thissections section1, 4, and sections6 2,of 5,this act and 8this ofsection thisand act,any other general obligation bonds of the state treasurerof shallWashington firstthat withdrawhave tollbeen revenueor fromthat may be authorized and that pledge excise taxes on fuel and vehicle-related fees for the Interstatepayment 5of bridgeprincipal replacementand projectinterest account,thereon and,must tobe an equal charge against the extentrevenues tollfrom revenuesuch p.excise taxes on fuel and vehicle-related fees.

3 SSB 5734 is not available, excise taxes on fuel and vehicle-related fees and deposit in the Interstate 5 bridge replacement project toll facility bond retirement account, or a special subaccount in the account, such amounts, and at such times, as are required by the bond proceedings.

(2) Any excise taxes on fuel and vehicle-related fees required for bond retirement or interest on the bonds authorized by this section and sections 2, 5, and 8 of this act must be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on fuel and vehicle-related fees and which is, or may be, appropriated to the department for state highway purposes.

Funds required must never constitute a charge against any other allocations of fuel tax and vehicle-related fee revenues to the state, counties, cities, and towns unless the amount arising from excise taxes on fuel and vehicle-related fees distributed to the state in the motor vehicle fund proves insufficient to meet the requirements for bond retirement or interest on any such bonds.