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Yet another proposal to replace the aging Interstate 5 bridge has surfaced, and the governors of Washington and Oregon like what they see.

(Jamie Francis, The Oregonian)

The governors of Oregon and Washington expressed support Wednesday for a scaled-down, phased-in, $650 million cheaper Columbia River Crossing

and others from both states.

Gov. John Kitzhaber and Gov. Jay Inslee said they would consider a $2.75 billion plan advanced Wednesday to replace the Interstate 5 Bridge with a span including light rail and less ambitious highway upgrades.

from 79 supporters suggested a project funded solely by Oregon and federal money, plus toll revenues -- with no contribution from Washington. The plan would resuscitate a $3.4 billion project declared dead after Washington legislators failed to authorize funding in June.

"I am encouraged by the bi-state support for this phased approach," Kitzhaber said in a written statement, "and plan to engage the Legislature and state treasurer in the next steps to review its feasibility."

Gov. Inslee also said the idea deserves "serious consideration." He said he'd ask Washington's Department of Transportation and others to move quickly to vet the idea.

The proposal, which infuriated CRC opponents, would salvage a project whose planning has cost $175 million to date. It would extend light rail to Clark College in Vancouver and tie into Washington state Route 14.

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Wednesday's letter, released by the Portland Business Alliance, asked the governors to keep the CRC moving forward on budget and on schedule. The proposal followed a

n which a CRC official confirmed the proposal still had life.

"For the city of Vancouver and the state of Oregon, this project is our economic lifeline to a future of possibilities," the letter said. "Without it we are hamstrung at every turn -- and our region will be trapped by traffic. Retaining businesses that depend on freight movements will be difficult, recruiting new businesses and industry will be next to impossible."

The letter said the region cannot afford to walk away from extensive public involvement, reams of technical data, completed federal environmental review and the investment of $175 million in taxpayer dollars "without exhausting every possibility."

CRC opponents expressed shock at the proposal.

"This is a clear indication that government is totally out of control," said Washington state Sen. Don Benton, R-Vancouver. "The governors of both states said to shut it down, yet you've got the bureaucracy still moving forward. That should scare every citizen, whether they supported the CRC or not."

president and chief executive officer of Plaid Pantries Inc., said the scaled-down project still represents a risky financial bet. Declining traffic volume means toll revenues necessary to finance the project could come up short, he said.

"I would still call it smoke-and-mirrors financing," Girard said. He said he's been trying to get remaining CRC officials to produce information on an investment-grade analysis they continue developing to justify the project.

The

, but some consultants and employees of the Oregon Transportation Department still work on the project. They continue providing information to the U.S. Coast Guard, for example, which is considering whether to issue a bridge permit.

Mandy Putney, a CRC spokeswoman, said the slimmed-down organization provided technical support to authors of Wednesday's letter. She said the new proposal shows promise.

"It could be a way to move forward and take advantage of all

and the federal funds that are available," Putney said.

But plenty of obstacles remain. For example, in March the Oregon Legislature approved $450 million toward the project, contingent on a matching commitment from Washington state. Oregon's commitment expires Sept. 30, absent Washington's share. Therefore, Oregon legislators would have to reauthorize the money, possibly during a special session convened to consider the state's Public Employee Retirement System and taxes.

Those who signed Wednesday's letter include business leaders such as John Carter, Schnitzer Steel Industries Inc., chairman, who also chairs the Oregon Business Plan, and Bill Furman, president and chief executive of The Greenbrier Companies.

Union leaders also signed, as did Bill Wyatt, executive director of the Port of Portland. Signers included business leaders and others from Vancouver, such as Scott Campbell, owner and publisher of The Columbian newspaper.

-- Richard Read