It is an independent, bi-state governmental agency organized by Kentucky and Indiana for the purpose of financing and constructing the Ohio River Bridges Project. The authority is comprised of Indiana and Kentucky citizens from various professional backgrounds who have demonstrated leadership and community service. There are 14 members: seven appointed by Indiana Governor Mitch Daniels, three appointed by Kentucky Governor Steve Beshear and four appointed by Louisville Mayor Jerry Abramson.
The authority was created under a Kentucky statute (KRS 175B.030, or the “bi-state authority statute”) and an Executive Order issued by Indiana Governor Mitch Daniels. On March 25, 2010, Kentucky Governor Steve Beshear signed into law Senate Joint Resolution 169, pursuant to which the Kentucky General Assembly ratified the formation of the bridges authority.
The need for a financial plan for the project is driven by three distinct requirements. First, there must be a financial plan that allows the project to be included in the long-range transportation plan of the metropolitan planning organization for the greater Louisville area, known as KIPDA. Second, the Federal Highway Administration (FHWA) requires mega-projects, such as the Ohio River Bridges Project, to have a financial plan. An updated financial plan was provided to FHWA in December, 2010. Finally, the bi-state authority statute contemplates the delivery of a financial plan that will specify the construction and financing parameters of the project.
Indiana Gov. Mitch Daniels, Kentucky Gov. Steve Beshear and Louisville Mayor Greg Fischer have recommended exploring more than $500 million in cost-saving options, including:
The Governors and Mayor also believe that any tolling required to help finance the project should be limited to the new East End Bridge and the new and renovated I-65 bridges downtown.
The authority does not manage the day-to-day operations of the Ohio River Bridges Project, nor is it charged with defining the scope of the project. That scope was established by the Federal Highway Administration’s Record of Decision, which called for building two bridges and reconstructing Spaghetti Junction. Cost saving measures are being explored as described above.
That has not been determined. The authority is exploring various funding options.
While debt financing may likely be part of the finance plan for the project and used to facilitate the assembly of needed up-front cash for construction, a successful financial plan must include a means to repay any such debt. These repayment streams may come from revenues directly tied to the project (i.e., tolls, or user charges) or from general state, federal, and local funding sources. Given the size and complexity of the project, a successful financial plan will undoubtedly rely on a combination of funding sources and finance mechanisms.
Tolls are being explored as one of the revenue sources to help pay for the project. An initial tolling study was prepared in 2008 for the Kentucky Transportation Cabinet. It is a study, not a proposal. It explores various tolling scenarios. This study is currently being updated.
It is too early to answer these questions right now, as all funding options are still being considered. The authority will be working with the FHWA’s Office of Innovative Program Delivery to gain an understanding of what, if any, tolling alternatives may be available for the project under federal law and regulations.
The Record of Decision (ROD) for this project was issued in 2003. The ROD was based on an environmental impact statement that assumed the bridges would not be tolled. If tolls were to become part of a funding scenario, the project team and the Authority would work with the FHWA to determine what further review and work, if any, would be necessary under the National Environmental Policy Act (NEPA) to assess any changes in impacts associated with tolling.
