Compensation Pathways for Utility Accommodation on Public Rights of Way

Abstract

There are various degrees of authority given to accommodate utilities on public rights of way (ROW). In the USA, most state laws permit public-serving utilities to use road ROW so long as they are not obstructing or hindering travel, endangering public safety, or obstructing other utilities from using the ROW legally. State laws and regulations specify different fee structures. In some states, the Department of Transportation (DOT) is authorized to assess fees or enter into lease agreements for utility accommodations on ROW. State DOTs may also receive compensation in some cases through in-kind resource sharing, barter arrangements, or other means. Different strategies may result in different fee schedules, which may or may not generate revenue for the state DOT. State DOTs are currently implementing various practices and compensation structures for utilities installed on public ROWs. This research aims to develop a categorization mechanism framework to determine how state DOTs compensate and evaluate utilities installed on ROWs. The framework is presented to assist DOTs in valuing and compensating for utilities and provides state DOTs with the means and approaches needed to execute a fee or leasing schedule for utility installations in public ROW. Several methods were used to accomplish this objective, including literature reviews, synthesis of legislation and policies, and interviews with subject matter experts. As a result, this investigation found significant variation between states in how they approach compensation and value utility accommodations. Based on this paper’s findings, valuation and compensation standardization are urgently needed.