STATE COLLEGE — U.S. Rep. John Peterson said plans to turn Interstate 80 into a toll road will hurt businesses that run along the highway.

At a Chamber of Business and Industry of Centre County luncheon, Peterson, R-5th, called the transportation funding bill that authorized I-80 tolls "the most ill-conceived piece of legislation in decades."

He argued that companies located along the interstate will see higher costs for goods coming in and going out, and those delivering them will likely divert to New York to avoid the toll fee.

"My fear is it will kill any potential growth we have in Pennsylvania," Peterson said.

Also on Tuesday, two Pennsylvania agencies signed a 50-year lease to turn I-80 into a toll road and applied to the federal government for approval to add the collection booths.

Legislators approved the move in July. Under the agreement, the Pennsylvania Turnpike Commission will lease I-80 from the state Department of Transportation and generate $116 billion over 50 years for highway and mass transit projects throughout the state.

Commission representatives countered Peterson by saying Act 44 should help reduce the shortfall of Pennsylvania's interstate system, and build a stronger and more stable infrastructure. That bill calls for the east-west thoroughfare to become a toll road in 2011, with rates mirroring the turnpike.

The expected costs for passenger vehicles to cross the entire 311-mile corridor is about $25, with tractor-trailer drivers paying $96, or 31 cents per mile, according to the commission.