TxDOT Policy

TxDOT participation in the costs of necessary utility adjustments is set forth in the Transportation Code, . Participation on highways within the Interstate Highway System is limited to those adjustments eligible for Federal cost participation per 23CFR Part 645. Note that 23CFR Part 645 requires

prior approval

by TxDOT

and

the FHWA for any phase of utility work.

Neither Federal rule nor State statutes provide for cost participation where utility removal occurs without subsequent replacement or relocation. Accordingly, State participation in such removal is dependent upon the utility possessing a compensable interest in the land occupied by the removed facilities. Participation is limited to the value of the real property interest, less the salvage value of the removed or abandoned facilities.

Cost participation in an adjustment where the utility possesses no real property interest is limited to the cost of relocation. New real property interests acquired by the utility after the relocation are

not

eligible for cost participation.

Federal Utility Reimbursement Regulations

prescribes reimbursement controls and general requirements as well as requiring prior TxDOT approval for certain phases of utility work. FHWA approval is required for facilities such as reservoirs, substations, and tank farms, etc. Unless this requirement is met, many items otherwise eligible for State and Federal participation may be declared ineligible.