Title 23HighwaysRelease 119-73not60

§123 Relocation of Utility Facilities

Title 23 › Chapter 1— FEDERAL-AID HIGHWAYS › § 123

Last updated Apr 5, 2026|Official source

Summary

Federal money can pay back a State when the State pays to move utility lines or systems because of a transportation project. The federal share matches the federal share of the transportation project. “Cost of relocation” means what the utility spent to move, minus any added value of the new facility and any salvage from the old one. Federal funds cannot be used if the payment breaks State law or a contract. The State must prove to the Secretary that it paid the relocation from State funds for projects with federal funds obligated after April 16, 1958. A State may move utilities early, before the full environmental review, at its own expense. Federal funds can pay for that early work only if the State shows it was necessary, documents eligible costs, had an environmental review for the early work that found no significant harm and compliance with federal rules, and proves the early work did not affect the project’s environmental review, the decision to build, or the project’s design or location. The early work must follow all laws and financial rules (including section 109(l)), be in the approved transportation improvement program (section 134 or 135), and the main transportation project must complete NEPA review (National Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq.) and be approved for construction before federal participation is allowed. Other eligibility rules and laws still apply, including section 138, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.), Title VI (42 U.S.C. 2000d), and environmental review requirements.

Full Legal Text

Title 23, §123

Highways — Source: USLM XML via OLRC

(a)In this section:
(1)The term “cost of relocation” includes the entire amount paid by a utility properly attributable to the relocation of a utility facility, minus any increase in the value of the new facility and any salvage value derived from the old facility.
(2)The term “early utility relocation project” means utility relocation activities identified by the State for performance before completion of the environmental review process for the transportation project.
(3)The term “environmental review process” has the meaning given the term in section 139(a).
(4)The term “transportation project” means a project.
(5)The term “utility facility” means any privately, publicly, or cooperatively owned line, facility, or system for producing, transmitting, or distributing communications, power, electricity, light, heat, gas, oil, crude products, water, steam, waste, stormwater not connected with highway drainage, or any other similar commodity, including any fire or police signal system or street lighting system, that directly or indirectly serves the public.
(6)The term “utility relocation activity” means an activity necessary for the relocation of a utility facility, including preliminary and final design, surveys, real property acquisition, materials acquisition, and construction.
(b)(1)If a State pays for the cost of relocation of a utility facility necessitated by the construction of a transportation project, Federal funds may be used to reimburse the State for the cost of relocation in the same proportion as Federal funds are expended on the transportation project.
(2)Federal funds shall not be used to reimburse a State under this section if the payment to the utility—
(A)violates the law of the State; or
(B)violates a legal contract between the utility and the State.
(3)A reimbursement under paragraph (1) shall be made only if the State demonstrates to the satisfaction of the Secretary that the State paid the cost of the utility relocation activity from funds of the State with respect to transportation projects for which Federal funds are obligated subsequent to April 16, 1958, for work, including utility relocation activities.
(4)(A)In addition to the requirements under paragraphs (1) through (3), a State may carry out, at the expense of the State, an early utility relocation project for a transportation project before completion of the environmental review process for the transportation project.
(B)Funds apportioned to a State under this title may be used to pay the costs incurred by the State for an early utility relocation project only if the State demonstrates to the Secretary, and the Secretary finds that—
(i)the early utility relocation project is necessary to accommodate a transportation project;
(ii)the State provides adequate documentation to the Secretary of eligible costs incurred by the State for the early utility relocation project;
(iii)before the commencement of the utility relocation activities, an environmental review process was completed for the early utility relocation project that resulted in a finding that the early utility relocation project—
(I)would not result in significant adverse environmental impacts; and
(II)would comply with other applicable Federal environmental requirements;
(iv)the early utility relocation project did not influence—
(I)the environmental review process for the transportation project;
(II)the decision relating to the need to construct the transportation project; or
(III)the selection of the transportation project design or location;
(v)the early utility relocation project complies with all applicable provisions of law, including regulations issued pursuant to this title;
(vi)the early utility relocation project follows applicable financial procedures and requirements, including documentation of eligible costs and the requirements under section 109(l), but not including requirements applicable to authorization and obligation of Federal funds;
(vii)the transportation project for which the early utility relocation project was necessitated was included in the applicable transportation improvement program under section 134 or 135;
(viii)before the cost incurred by a State is approved for Federal participation, environmental compliance pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been completed for the transportation project for which the early utility relocation project was necessitated; and
(ix)the transportation project that necessitated the utility relocation activity is approved for construction.
(C)Nothing in this paragraph affects other eligibility requirements or authorities for Federal participation in payment of costs incurred for utility relocation activities.
(c)Nothing in this section affects the applicability of other requirements that would otherwise apply to an early utility relocation project, including any applicable requirements under—
(2)the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.), including regulations under part 24 of title 49, Code of Federal Regulations (or successor regulations);
(3)title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.); or
(4)an environmental review process.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Environmental Policy Act of 1969, referred to in subsec. (b)(4)(B)(viii), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see

Short Title

note set out under section 4321 of Title 42 and Tables. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, referred to in subsec. (c)(2), is Pub. L. 91–646, Jan. 2, 1971, 84 Stat. 1894, which is classified principally to chapter 61 (§ 4601 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see

Short Title

note set out under section 4601 of Title 42 and Tables. The Civil Rights Act of 1964, referred to in subsec. (c)(3), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see

Short Title

note set out under section 2000a of Title 42 and Tables.

Amendments

2021—Pub. L. 117–58 amended section generally. Prior to amendment, section related to reimbursement to States for relocation of utility facilities. 2012—Subsec. (a). Pub. L. 112–141 substituted “on any Federal-aid highway” for “on any Federal-aid system”. 1987—Subsec. (a). Pub. L. 100–17 substituted “any Federal-aid system,” for “the Federal-aid primary or secondary systems or on the Interstate System, including extensions thereof within urban areas,”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 117–58 effective Oct. 1, 2021, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

Effective Date

of 2012 AmendmentAmendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title. Study of Procurement Practices and Project Delivery Pub. L. 105–178, title I, § 1213(e),
June 9, 1998, 112 Stat. 201, directed the Comptroller General to conduct a study to assess the impact that a utility company’s failure to relocate its facilities in a timely manner has on the delivery and cost of Federal-aid highway and bridge projects, including an assessment of methods States use to mitigate such delays, and directed the Comptroller General to transmit to Congress a report on the results of the study with any appropriate recommendations not later than 1 year after
June 9, 1998.

Reference

Citations & Metadata

Citation

23 U.S.C. § 123

Title 23Highways

Last Updated

Apr 5, 2026

Release point: 119-73not60