Enrolled Copy H.B. 74
1 UTILITY RELOCATION COST SHARING AMENDMENTS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kay J. Christofferson Senate Sponsor: Wayne A. Harper
2
3 LONG TITLE
4 General Description:
5 This bill amends provisions related to allocation of costs to relocate utility infrastructure
6 within state highway and certain public transit rights-[ ]of-[ ]way.
7 Highlighted Provisions:
8 This bill:
9 ▸ defines terms;
10 ▸ requires coordination and cooperation between the Department of Transportation and
11 utilities impacted by certain capital development projects;
12 ▸ provides for sharing of utility relocation costs caused by certain capital development
13 projects for which the Department of Transportation has oversight and supervision;
14 ▸ requires the Department of Transportation to abide by agreements with a utility relevant
15 to the relocation of utility infrastructure; and
16 ▸ makes technical changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 72-6-116, as last amended by Laws of Utah 2020, Chapter 80
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 72-6-116 is amended to read:
27 72-6-116 . Regulation of utilities -- Relocation of utilities.
H.B. 74 Enrolled Copy
28 (1) As used in this section:
29 (a) "Cost of relocation" includes the entire amount paid by the utility company properly
30 attributable to the relocation of the utility after deducting any increase in the value of
31 the new utility and any salvage value derived from the old utility.
32 (b) "Department project" means:
33 (i) a state highway project, including the construction of a proposed state highway
34 and the improvement, widening, or modification of an existing state highway; or
35 (ii) a fixed guideway capital development project for which the department has
36 oversight and supervision, including a transit station, passenger loading or
37 unloading zone, parking lot, or other facility that is constructed or reconstructed
38 immediately adjacent to a fixed guideway that is part of a fixed guideway capital
39 development project.
40 [(b)] (c) "Exempt water supplier" means an entity that directly or indirectly supplies at
41 least a portion of the entity's water for culinary purposes to the public for municipal,
42 domestic, or industrial use, and is:
43 (i) a water corporation, as defined in Section 54-2-1, that is regulated by the Public
44 Service Commission; or
45 (ii) a community water system:
46 (A) that either supplies water to at least 100 service connections used by
47 year-round residents, or regularly serves at least 200 year-round residents; and
48 (B) whose voting members own a share in the community water system, receive
49 water from the community water system in proportion to the member's share in
50 the community water system, and pay the rate set by the community water
51 system based on the water the member receives.
52 [(c)] (d) "Utility" includes telecommunication, crude oil, petroleum products, gas,
53 electricity, cable television, water, sewer, data, and video transmission lines, drainage
54 and irrigation facilities, and other similar utilities whether public, private, or
55 cooperatively owned.
56 [(d)] (e) "Utility company" means a privately, cooperatively, or publicly owned utility,
57 including utilities owned by political subdivisions.
58 (2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
59 the department may make rules for the installation, construction, maintenance, repair,
60 renewal, system upgrade, and relocation of all utilities.
61 (b) If the department determines under the rules established in this section that it is
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Enrolled Copy H.B. 74
62 necessary that any utilities should be relocated, notwithstanding any other provision
63 of this section:
64 (i) the utility company owning or operating the utilities shall relocate the utilities [in
65 accordance with this section and the] after receiving an order of the department[.] ;
66 and
67 (ii) the cost allocations described in Subsection (3) shall apply.
68 (3) (a) The department shall pay 100% of the cost of relocation of a utility to
69 accommodate construction of a [state highway project, including the construction of
70 a proposed state highway and the improvement, widening, or modification of an
71 existing state highway] department project if the:
72 (i) utility is owned or operated by:
73 (A) a political subdivision of the state; or
74 (B) an exempt water supplier;
75 (ii) utility company owns the easement or fee title to the right-of-way in which the
76 utility is located; or
77 (iii) utility is located in a public utility easement as defined in Section 54-3-27.
78 (b) Except as provided in Subsection (3)(a), (c), or (d) or Section 54-21-603, the
79 department shall pay 50% of the cost of relocation of a utility to accommodate
80 construction of a [state highway project, including the construction of a proposed
81 state highway and the improvement, widening, or modification of an existing state
82 highway] department project, and the utility company shall pay the remainder of the
83 cost of relocation.
84 [(c) If the utility described in Subsection (3)(b) is a crude oil or petroleum products
85 pipeline, unless the utility meets the conditions described in Subsection (3)(a):]
86 [(i) the utility company shall pay the lesser of:]
87 (c) Subject to Subsection (3)(e), if a utility company is responsible to pay for a portion
88 of a utility relocation as described in Subsection (3)(b):
89 (i) the utility shall pay the lesser of:
90 (A) 50% of the cost of relocation of the [pipeline] utility to accommodate
91 construction of a [proposed state highway and the improvement, widening, and
92 modification of an existing highway] department project; or
93 (B) 50% of the cost of any structure or facility necessary to avoid impinging on
94 the [pipeline, and the department shall pay the remainder of the cost of the
95 structure or facility; and] utility;
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96 (ii) the department shall pay the remainder of the cost, which is the total cost less the
97 portion paid by the utility under Subsection (3)(c)(i); and
98 (iii) the department shall make the final decision whether to proceed under:
99 (A) Subsection (3)(c)(i)(A); or
100 (B) Subsection (3)(c)(i)(B).
101 (d) This Subsection (3) does not affect the provisions of Subsection 72-7-108(5).
102 (e) (i) If the department or a large public transit district has entered into a written
103 agreement with a utility before May 1, 2024, pertaining to the use of right-of-way
104 by the utility and relocation costs, the department and the utility shall abide by the
105 terms of the agreement when constructing a fixed guideway capital development
106 project.
107 (ii) If the department has entered into a written agreement with a utility pertaining to
108 the use of right-of-way by the utility and relocation costs, the department and the
109 utility shall abide by the terms of the agreement when constructing a department
110 project.
111 (4) If a utility is relocated, the utility company owning or operating the utility, its
112 successors or assigns, may maintain and operate the utility, with the necessary
113 appurtenances, in the new location.
114 (5) In accordance with this section, the cost of relocating a utility in connection with any [
115 project on a highway is a cost of highway construction] department project is a cost of
116 construction for the department project.
117 (6) (a) The department shall notify affected utility companies, in accordance with
118 Section 54-3-29, whenever the relocation of utilities is likely to be necessary because
119 of a [reconstruction] department project.
120 (b) The notification shall be made during the preliminary design of the project or as soon
121 as practical in order to minimize the number, costs, and delays of utility relocations.
122 (c) [A utility company notified] When the department notifies a utility company under
123 this Subsection (6):
124 (i) the utility shall coordinate and cooperate with the department and the department's
125 contractor on the utility relocations, including the scheduling of the utility
126 relocations[.] ; and
127 (ii) the department and the utility shall strive to identify conflicts, minimize utility
128 relocation costs and operational impacts, minimize department project costs and
129 delays, and coordinate and cooperate with one another.
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130 Section 2. Effective date.
131 This bill takes effect on May 1, 2024.
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Statutes affected: Introduced: 72-6-116
Enrolled: 72-6-116