With the completion of the construction on the majority of the interstate system, the original federal funding formula changed. Federal funds are now allocated to the state based on the overall size of the state's highway system and other factors. The additional expenditures for utility reimbursements on interstate highways no longer affect the total amount of federal funds the state receives. The existing requirement results in the state paying significant utility relocation costs for some utilities and not for others, depending only on the classification of road. Department staff estimate 90-95 percent of utility facilities on interstate highways are located on land for which the state had the prior property interest.
Most utility companies do have to pay to relocate their lines.
Other States Approach. A survey conducted by the Transportation Research Board of the National Research Council found that only 15 states pay utility relocation expenses on interstate highways regardless of whether the state had the prior property interest. The policies should also be consistent unless unique and legitimate circumstances warrant policy exceptions. This change should be made effective September 1, 1991. By removing the exemption for interstate highways, the inequity that results from this requirement would be lifted and the responsibility for the relocation expenses would be dependent only on whether or not the utility had a prior property interest.