Purpose

• The bill changes how the state pays for relocating utilities that are affected when trunk highway construction occurs. It aims to ensure that relocation costs and certain aspects of a utility’s remaining life are paid from the trunk highway fund, with limits tied to federal reimbursement for the interstate system.

Main Provisions

• Relocation of facilities for federally funded trunk highway projects:
  • When a utility facility must be moved because of a project on routes of federally aided trunk highways (including urban extensions within the National System of Interstate Highways), the owner or operator must relocate the facility as directed by the commissioner.
  • After relocation, the cost of relocation must be determined and paid from the trunk highway fund by the commissioner. The payment cannot exceed the amount on which the federal government bases its reimbursement for the interstate highway system.
  • There are referenced exceptions in other law (sections 161.45, subdivisions 6(d) or 7) that may affect this process.
• Relocation costs for local governments and tribal governments:
  • If a local unit of government or Minnesota Tribal government owns a utility system (providing light, water, sanitary sewer, or storm sewer) and uses a public highway to locate that utility, the remaining service life of the utility system must be determined by the commissioner.
  • The cost related to relocating that system must be paid from the trunk highway fund whenever relocation is required due to trunk highway construction.
  • This provision applies to utility systems owned by local governments or tribal governments as defined by state law.

What this changes in current law

• Clarifies that relocation costs for utilities tied to trunk highway projects are a state responsibility funded from the trunk highway fund, up to federal reimbursement limits.
• Extends funding responsibility to cover the remaining service life of certain municipal and tribal utility systems when relocation is necessary.
• Aligns state funding with federal reimbursement benchmarks for interstate-related projects.

Implications

• Potential financial relief for local and tribal governments around utility relocations tied to highway projects, within the federal reimbursement cap.
• Provides a clear process for determining and paying relocation costs and the remaining service life from state highway funds.

Key Definitions and Concepts in Play

• Utility facility
• Relocation of facilities
• Trunk highway fund
• Federally aided trunk highways
• National System of Interstate Highways
• Remaining service life
• Local unit of government
• Minnesota Tribal government
• Public highway
• Reimbursement (federal basis for interstate highway system)

Relevant Terms - trunk highway fund - relocation of facilities - utility facility - owner or operator - federally aided trunk highways - National System of Interstate Highways - remaining service life - local unit of government - Minnesota Tribal government - public highway - water/sewer/storm sewer utilities - reimbursement - interstate highway system - 161.46 subdivision 2 - exceptions 161.45 subdivision 6(d) and 7