HF3728

Purpose

• Establishes new requirements for managing and expanding Minnesota’s trunk highway system.
• Aims to limit capacity expansion projects in certain cases, strengthen transportation asset management, and increase financial transparency and planning over the next decade and beyond.

Key Definitions (selected)

• trunk highway system: the main highway network managed by the state.
• capacity expansion project: projects intended to increase the capacity of a highway.
• applicable entity: who can plan and approve highway projects under the law.
• major highway project: a large highway project as defined by the bill.
• transportation asset management plan: a plan to manage assets like pavements, bridges, culverts, signals, and related facilities.
• ten-year capital highway investment plan: a long-range plan showing future trunk highway investments.
• transportation improvement program (TIP) and state transportation improvement program (STIP): planning programs for state and metropolitan areas.
• life cycle costs: all costs to maintain and operate an asset over its life.

Main Provisions

• Cap on trunk highway capacity expansions

  • Starting with projects that first enter the STIP in fiscal year 2031 or later, capacity expansion projects cannot be added if the most recent asset management analysis shows a performance gap in pavements or bridges.
  • Projects already in the STIP or submitted for geometric layout approval before July 1, 2030 are not subject to this new limit.

• Maintenance planning for major highway projects

  • The state DOT must create a maintenance plan for each trunk highway segment involved in a major highway project.
  • The plan must cover either the greater of 60 years or the entire service life of the infrastructure.
  • It must analyze the costs to maintain the asset, including preventive maintenance, preservation, rehabilitation, and life-cycle costs; and consider operating and indirect costs.

• Ten-year capital highway investment plan (new Subd.1e)

  • The DOT must annually prepare a ten-year plan that identifies trunk highway projects in the TIP/STIP and other relevant planned projects.
  • Each district must base the plan on expected funding and, where feasible, maximize long-term benefits and life-cycle investments for at least 60 years.
  • The plan must identify investments by asset category, show which projects are funded through the trunk highway capital program, and identify any trunk highway segments that would need to be removed to meet state transportation goals.

• Transportation asset management plan (new Subd.1f)

  • The DOT must maintain a risk-based asset management plan to guide preservation, improvement, and management of transportation investments and assets.
  • The plan must meet federal requirements (as applicable) and include:
  • A comprehensive asset inventory across categories (pavements, bridges, culverts, ITS facilities, traffic signals, pedestrian and transit infrastructure, etc.).
  • Identification of local governments responsible for certain assets.
  • Performance measures and targets from the statewide multimodal plan.
  • Ten-year performance gap analysis showing differences between targets and projected performance.

• Trunk highway performance resiliency and sustainability report (new Subd.12)

  • Implement performance measures and annual targets to build resilient infrastructure, improve project selection, and meet state transportation goals.
  • Include an asset inventory, performance measures, targets, reporting (statewide and district-level when possible), gap explanations, life-cycle assessment, and corridor risk assessment.
  • The DOT must deliver an annual report by December 15 to legislative chairs and ranking minority members, certified by the commissioner and licensed professional engineers.

• Fiscal transparency dashboard (new Subd.13)

  • By January 1, 2027, the DOT must publish a dashboard showing fiscal information for the current year and each year of the STIP.
  • The dashboard must include:
  • Total expenditures by funding source, by project, and by pavement/bridge asset management.
  • Expenditures by objective in the statewide multimodal plan and their impact on performance targets.
  • Expenditures by investment priority area and any identified performance gaps between targets and projected status.

How it Changes Existing Law

• Adds new subdivisions to Minnesota Statutes 174.03, introducing:
  • A formal ten-year capital highway investment planning process in Subd.1e.
  • A formal transportation asset management plan process in Subd.1f.
  • A requirement for ongoing trunk highway performance reporting and life-cycle analysis in Subd.12.
  • A mandatory fiscal transparency dashboard in Subd.13.
• Ties project eligibility for capacity expansion to performance data in asset management, potentially prioritizing maintenance and preservation over new capacity.
• Requires explicit planning, reporting, and public-facing transparency tied to state transportation goals and life-cycle costs.

Timeline and Implementation Notes

• Capacity expansion limits apply to projects entering the STIP for fiscal year 2031 and later.
• Some projects submitted before July 1, 2030 are exempt from the new capacity expansion limit.
• Fiscal transparency dashboard to be in place by January 1, 2027.
• Ongoing annual preparation of the ten-year plan and periodic reporting (by December 15 for annual reports).

Implementation and Oversight

• Responsibility lies with the Minnesota Department of Transportation (DOT), with input from district offices and local governments as appropriate.
• Required annual reporting to key legislative committees (chairs and ranking minority members) on performance, gaps, and progress toward state goals.
• Some reporting and certifications must be signed by licensed professional engineers.

Significance and Potential Impacts

• Shifts emphasis from expanding highway capacity to maintaining and efficiently managing existing assets.
• Improves long-term planning and cost accounting for transportation assets through life-cycle thinking.
• Increases transparency by publicly displaying how funds are spent and how projects affect performance targets.
• Could influence which projects get funded or advanced, prioritizing maintenance and asset health over new capacity where performance gaps exist.

Note on Terms Used in Public Discussion

• The bill uses terms like trunk highway system, capacity expansion, major highway project, asset management plan, and life-cycle costs, which reflect a move toward risk-based maintenance, performance targets, and financial transparency.

Relevant Terms - trunk highway system - capacity expansion project - major highway project - applicable entity - transportation asset management plan - ten-year capital highway investment plan - state transportation improvement program (STIP) - transportation improvement program (TIP) - life-cycle costs - pavement assets - bridge assets - culverts - intelligent transportation system facilities - traffic signals and lighting - pedestrian infrastructure - transit infrastructure - risk-based asset management - performance measures and targets - capital program - fiscal transparency dashboard - annual reports - licensed professional engineers - removal of trunk highway segments - state transportation goals (174.01)