Acquiring Utility Property Interests and Reimbursing Utility Relocation Costs: A Guide (2023)

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2023 N A T I O N A L C O O P E R A T I V E H I G H W A Y R E S E A R C H P R O G R A M NCHRP RESEARCH REPORT 1054 Acquiring Utility Property Interests and Reimbursing Utility Relocation Costs A GUIDE Cesar Quiroga Jenny Naranjo Texas A&M Transportation Institute College Station, TX John Campbell T2 Utility Engineers, Inc. Austin, TX Subscriber Categories Design • Planning and Forecasting Research sponsored by the American Association of State Highway and Transportation Ofcials in cooperation with the Federal Highway Administration

NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM Systematic, well-designed, and implementable research is the most effective way to solve many problems facing state departments of transportation (DOTs) administrators and engineers. Often, highway problems are of local or regional interest and can best be studied by state DOTs individually or in cooperation with their state universities and others. However, the accelerating growth of highway transporta- tion results in increasingly complex problems of wide interest to high- way authorities. These problems are best studied through a coordinated program of cooperative research. Recognizing this need, the leadership of the American Association of State Highway and Transportation Officials (AASHTO) in 1962 ini- tiated an objective national highway research program using modern scientific techniques—the National Cooperative Highway Research Program (NCHRP). NCHRP is supported on a continuing basis by funds from participating member states of AASHTO and receives the full cooperation and support of the Federal Highway Administration (FHWA), United States Department of Transportation, under Agree- ment No. 693JJ31950003. The Transportation Research Board (TRB) of the National Academies of Sciences, Engineering, and Medicine was requested by AASHTO to administer the research program because of TRB’s recognized objectivity and understanding of modern research practices. TRB is uniquely suited for this purpose for many reasons: TRB maintains an extensive com- mittee structure from which authorities on any highway transportation subject may be drawn; TRB possesses avenues of communications and cooperation with federal, state, and local governmental agencies, univer- sities, and industry; TRB’s relationship to the National Academies is an insurance of objectivity; and TRB maintains a full-time staff of special- ists in highway transportation matters to bring the findings of research directly to those in a position to use them. The program is developed on the basis of research needs iden- tified by chief administrators and other staff of the highway and transportation departments, by committees of AASHTO, and by the FHWA. Topics of the highest merit are selected by the AASHTO Special Committee on Research and Innovation (R&I), and each year R&I’s recommendations are proposed to the AASHTO Board of Direc- tors and the National Academies. Research projects to address these topics are defined by NCHRP, and qualified research agencies are selected from submitted proposals. Administration and surveillance of research contracts are the responsibilities of the National Academies and TRB. The needs for highway research are many, and NCHRP can make significant contributions to solving highway transportation problems of mutual concern to many responsible groups. The program, however, is intended to complement, rather than to substitute for or duplicate, other highway research programs. Published research reports of the NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to https://www.mytrb.org/MyTRB/Store/default.aspx Printed in the United States of America NCHRP RESEARCH REPORT 1054 Project 11-08 ISSN 2572-3766 (Print) ISSN 2572-3774 (Online) ISBN 978-0-309-69877-1 Library of Congress Control Number 2023939226 © 2023 by the National Academy of Sciences. National Academies of Sciences, Engineering, and Medicine and the graphical logo are trade- marks of the National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, APTA, FAA, FHWA, FTA, GHSA, or NHTSA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; the FHWA; or the program sponsors. The Transportation Research Board does not develop, issue, or publish standards or spec- ifications. The Transportation Research Board manages applied research projects which provide the scientific foundation that may be used by Transportation Research Board sponsors, industry associations, or other organizations as the basis for revised practices, procedures, or specifications. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the National Cooperative Highway Research Program do not endorse products or manufacturers. Trade or manufacturers’ names or logos appear herein solely because they are considered essential to the object of the report.

e National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. e National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. John L. Anderson is president. e National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. e three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. e National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.nationalacademies.org. e Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. e mission of the Transportation Research Board is to provide leadership in transportation improvements and innovation through trusted, timely, impartial, and evidence-based information exchange, research, and advice regarding all modes of transportation. e Board’s varied activities annually engage about 8,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. e program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S AUTHOR ACKNOWLEDGMENTS The research reported herein was performed under NCHRP Project 11-08 by the Texas A&M Trans- portation Institute (TTI) in collaboration with T2 Utility Engineers, Inc. TTI was the prime contractor for this study, with Sponsored Research Services at the Texas A&M University System serving as Fiscal Administrator. Cesar Quiroga, Ph.D., P.E., Senior Research Engineer and Manager of the Utility Engineering Program at TTI, was the Principal Investigator. The other authors of this report are Jenny Naranjo, Assistant Research Scientist in the Utility Engineering Program at TTI; and John Campbell, P.E., Texas Branch Manager at T2 Utility Engineers. CRP STAFF FOR NCHRP RESEARCH REPORT 1054 Waseem Dekelbab, Deputy Director, Cooperative Research Programs, and Manager, National Cooperative Highway Research Program Christopher T. McKenney, Senior Program Officer Sheila A. Moore, Program Associate Natalie Barnes, Director of Publications Heather DiAngelis, Associate Director of Publications NCHRP PROJECT 11-08 PANEL Field of Administration—Area of Law Jennifer Rebecca Williams, GarNat Engineering, Benton, AR (Chair) Michael L. Baumann, Wisconsin Department of Transportation, Wisconsin Rapids, WI Mario Benito Rojas, Choice Engineering Consultants, Inc., Miami, FL Shaun P. Corbett, Vermont Agency of Transportation, Barre, VT Stephen M. Dodge, Texas Department of Transportation, Austin, TX Robert G. Lee, Alabama Department of Transportation, Montgomery, AL Jennifer H. McCleve, Kentucky Transportation Cabinet, Frankfort, KY Amy A. O’Leary, Virginia Transportation Research Council, Charlottesville, VA Barbara Waite, Idaho Transportation Department, Boise, ID Rosemary Jones, FHWA Liaison

NCHRP Research Report 1054 presents a guide to assist state departments of transportation (DOTs) assess the state-of-practice of utility relocations, identify the major factors influenc- ing time and cost for utility relocations, and identify methods to improve the utility relocation experience. The development of the guide was based on (1) a framework classifying states according to legal opportunities and constraints under which they operate and the ways they operate to acquire rights-of-way and compensate for utility relocations and (2) a compre- hensive review of state DOT manuals and other policy documents for applicable laws and regulations. This report will be of immediate interest to roadway design and utility engineers. When a transportation construction project involves the relocation of utility facilities, a state DOT or other responsible agency must engage in complex negotiations involving utility companies and often other property owners, which may include acquisition of rights- of-way or easements to facilitate the relocation and compensation to affected parties. These negotiations are subject to state and federal statutes (when the project includes federal fund- ing) and regulations as well as agency and utility business practices, which can add cost, time, and potential delay to project delivery. Federal regulations bring some uniformity to the processes of right-of-way acquisition and provision of compensation, but state and local statutes, policies, and traditions introduce substantial variation in how state DOTs deal with utility relocations. Anecdotal evidence indicates that agencies differ in their practices for right-of-way acquisition and how they compensate utilities for relocations. However, research has not been completed to assess practices. Agencies differ also in their use of shared utility easements, master agreements with utility companies, permitting rather than transfer of property rights, and incentive pay- ments for prompt utility relocation. Some agencies may acquire right-of-way in anticipation of transferring it to a utility while others may be prohibited by statute from doing so. While the statutory and regulatory environment of right-of-way acquisition and compen- sation differs from state to state, the project development process is relatively uniform among state DOTs. Characterizing when and how state DOTs take steps to address the acquisition of right-of-way to facilitate utility relocations and analyzing agency experience with the time delay and cost that these steps may add to project development can offer lessons for improv- ing right-of-way acquisition and compensation practices as they relate to utility relocations. Under NCHRP Project 11-08, “Guide to Acquire Utility Property Interests and Reimburse Utility Relocation Costs,” Texas A&M Transportation Institute was asked to (1) identify effec- tive statutory means, agency policies, and project development procedures that agencies F O R E W O R D By Christopher T. McKenney Staff Officer Transportation Research Board

use to acquire right-of-way and compensate for utility relocations and (2) develop a guide that DOTs and practitioners may use to enhance the effectiveness of their own practices. In addition to the guide published as NCHRP Research Report 1054, the conduct of research report that documents the entire research effort is available on the National Academies Press website at nap.nationalacademies.org by searching for NCHRP Web-Only Document 360: Acquisition of Utility Property Interests and Compensation Practices for Utility Relocations.

Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing. The electronic version of the report (posted on the web at nap.nationalacademies.org) retains the color versions. 1 Introduction 2 Key Terms 5 Relevant Laws and Regulations 5 Federal Laws and Regulations 8 State Laws, Regulations, and Manuals 10 Acquisition of Utility Property Interests and Utility Relocation Reimbursements 10 Project Delivery Phases 12 Authority to Acquire Replacement Right-of-Way or Additional Land for Utility Relocations 13 Reimbursement Eligibility for Utility Relocations 13 Procedures for Acquiring Utility Property Rights 21 Workflow Stages and Milestones 21 Integration Within the Project Delivery Process 24 Additional Suggestions 26 References 27 Abbreviations, Acronyms, and Initialisms C O N T E N T S