---
kind: "section"
citation: "23 U.S.C. § 123"
title: "23"
title_heading: "Highways"
number: "123"
heading: "Relocation of utility facilities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/23/123"
units:
  - "Chapter 1 — Federal-Aid Highways"
---

# §123. Relocation of utility facilities

- (a) **Definitions.—** In this section:
  - (1) **Cost of relocation.—** The term “cost of relocation” includes the entire amount paid by a utility properly attributable to the relocation of a utility facility, minus any increase in the value of the new facility and any salvage value derived from the old facility.
  - (2) **Early utility relocation project.—** The term “early utility relocation [project](/usc/23/101.md?p=a-20)” means utility relocation activities identified by the [State](/usc/23/101.md?p=a-28) for performance before completion of the environmental review process for the transportation [project](/usc/23/101.md?p=a-20).
  - (3) **Environmental review process.—** The term “environmental review process” has the meaning given the term in [section 139(a)](/usc/23/139.md?p=a).
  - (4) **Transportation project.—** The term “transportation [project](/usc/23/101.md?p=a-20)” means a [project](/usc/23/101.md?p=a-20).
  - (5) **Utility facility.—** The term “utility facility” means any privately, publicly, or cooperatively owned line, facility, or system for producing, transmitting, or distributing communications, power, electricity, light, heat, gas, oil, crude products, water, steam, waste, stormwater not connected with [highway](/usc/23/101.md?p=a-11) drainage, or any other similar commodity, including any fire or police signal system or street lighting system, that directly or indirectly serves the public.
  - (6) **Utility relocation activity.—** The term “utility relocation activity” means an activity necessary for the relocation of a utility facility, including preliminary and final design, surveys, real property acquisition, materials acquisition, and [construction](/usc/23/101.md?p=a-4).
- (b) **Reimbursement to States.—**
  - (1) **In general.—** If a [State](/usc/23/101.md?p=a-28) pays for the cost of relocation of a utility facility necessitated by the [construction](/usc/23/101.md?p=a-4) of a transportation [project](/usc/23/101.md?p=a-20), Federal funds may be used to reimburse the [State](/usc/23/101.md?p=a-28) for the cost of relocation in the same proportion as Federal funds are expended on the transportation [project](/usc/23/101.md?p=a-20).
  - (2) **Limitation.—** Federal funds shall not be used to reimburse a [State](/usc/23/101.md?p=a-28) under this section if the payment to the utility—
    - (A) violates the law of the [State](/usc/23/101.md?p=a-28); or
    - (B) violates a legal contract between the utility and the [State](/usc/23/101.md?p=a-28).
  - (3) **Requirement.—** A reimbursement under [paragraph (1)](#b-1) shall be made only if the [State](/usc/23/101.md?p=a-28) demonstrates to the satisfaction of the [Secretary](/usc/23/101.md?p=a-27) that the [State](/usc/23/101.md?p=a-28) paid the cost of the utility relocation activity from funds of the [State](/usc/23/101.md?p=a-28) with respect to transportation [projects](/usc/23/101.md?p=a-20) for which Federal funds are obligated subsequent to April 16, 1958, for work, including utility relocation activities.
  - (4) **Reimbursement eligibility for early relocation prior to transportation project environmental review process.—**
    - (A) **In general.—** In addition to the requirements under paragraphs [(1)](#b-1) through [(3)](#b-3), a [State](/usc/23/101.md?p=a-28) may carry out, at the expense of the [State](/usc/23/101.md?p=a-28), an early utility relocation [project](/usc/23/101.md?p=a-20) for a transportation [project](/usc/23/101.md?p=a-20) before completion of the environmental review process for the transportation [project](/usc/23/101.md?p=a-20).
    - (B) **Requirements for reimbursement.—** Funds apportioned to a [State](/usc/23/101.md?p=a-28) under this title may be used to pay the costs incurred by the [State](/usc/23/101.md?p=a-28) for an early utility relocation [project](/usc/23/101.md?p=a-20) only if the [State](/usc/23/101.md?p=a-28) demonstrates to the [Secretary](/usc/23/101.md?p=a-27), and the [Secretary](/usc/23/101.md?p=a-27) finds that—
      - (i) the early utility relocation [project](/usc/23/101.md?p=a-20) is necessary to accommodate a transportation [project](/usc/23/101.md?p=a-20);
      - (ii) the [State](/usc/23/101.md?p=a-28) provides adequate documentation to the [Secretary](/usc/23/101.md?p=a-27) of eligible costs incurred by the [State](/usc/23/101.md?p=a-28) for the early utility relocation [project](/usc/23/101.md?p=a-20);
      - (iii) before the commencement of the utility relocation activities, an environmental review process was completed for the early utility relocation [project](/usc/23/101.md?p=a-20) that resulted in a finding that the early utility relocation [project](/usc/23/101.md?p=a-20)—
        - (I) would not result in significant adverse environmental impacts; and
        - (II) would comply with other applicable Federal environmental requirements;
      - (iv) the early utility relocation [project](/usc/23/101.md?p=a-20) did not influence—
        - (I) the environmental review process for the transportation [project](/usc/23/101.md?p=a-20);
        - (II) the decision relating to the need to construct the transportation [project](/usc/23/101.md?p=a-20); or
        - (III) the selection of the transportation [project](/usc/23/101.md?p=a-20) design or location;
      - (v) the early utility relocation [project](/usc/23/101.md?p=a-20) complies with all applicable provisions of law, including regulations issued pursuant to this title;
      - (vi) the early utility relocation [project](/usc/23/101.md?p=a-20) follows applicable financial procedures and requirements, including documentation of eligible costs and the requirements under [section 109(l)](/usc/23/109.md?p=l), but not including requirements applicable to authorization and obligation of Federal funds;
      - (vii) the transportation [project](/usc/23/101.md?p=a-20) for which the early utility relocation [project](/usc/23/101.md?p=a-20) was necessitated was included in the applicable transportation improvement program under section [134](/usc/23/134.md) or [135](/usc/23/135.md);
      - (viii) before the cost incurred by a [State](/usc/23/101.md?p=a-28) is approved for Federal participation, environmental compliance pursuant to the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.) has been completed for the transportation [project](/usc/23/101.md?p=a-20) for which the early utility relocation [project](/usc/23/101.md?p=a-20) was necessitated; and
      - (ix) the transportation [project](/usc/23/101.md?p=a-20) that necessitated the utility relocation activity is approved for [construction](/usc/23/101.md?p=a-4).
    - (C) **Savings provision.—** Nothing in this paragraph affects other eligibility requirements or authorities for Federal participation in payment of costs incurred for utility relocation activities.
- (c) **Applicability of Other Provisions.—** Nothing in this section affects the applicability of other requirements that would otherwise apply to an early utility relocation [project](/usc/23/101.md?p=a-20), including any applicable requirements under—
  - (1) [section 138](/usc/23/138.md);
  - (2) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 ([42 U.S.C. 4601](/usc/42/4601.md) et seq.), including regulations under part 24 of title 49, Code of Federal Regulations (or successor regulations);
  - (3) title VI of the Civil Rights Act of 1964 ([42 U.S.C. 2000d](/usc/42/2000d.md) et seq.); or
  - (4) an environmental review process.

## Source credit

(Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 900; Pub. L. 100–17, title I, § 133(b)(8), Apr. 2, 1987, 101 Stat. 171; Pub. L. 112–141, div. A, title I, § 1104(c)(3), July 6, 2012, 126 Stat. 427; Pub. L. 117–58, div. A, title I, § 11315, Nov. 15, 2021, 135 Stat. 540.)

## Notes

### Editorial Notes

### References in Text

The National Environmental Policy Act of 1969, referred to in subsec. (b)(4)(B)(viii), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.

The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, referred to in subsec. (c)(2), is Pub. L. 91–646, Jan. 2, 1971, 84 Stat. 1894, which is classified principally to chapter 61 (§ 4601 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4601 of Title 42 and Tables.

The Civil Rights Act of 1964, referred to in subsec. (c)(3), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of Title 42 and Tables.

### Amendments

2021—Pub. L. 117–58 amended section generally. Prior to amendment, section related to reimbursement to States for relocation of utility facilities.

2012—Subsec. (a). Pub. L. 112–141 substituted “on any Federal-aid highway” for “on any Federal-aid system”.

1987—Subsec. (a). Pub. L. 100–17 substituted “any Federal-aid system,” for “the Federal-aid primary or secondary systems or on the Interstate System, including extensions thereof within urban areas,”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2021 Amendment

Amendment by Pub. L. 117–58 effective Oct. 1, 2021, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

### Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

### Study of Procurement Practices and Project Delivery

Pub. L. 105–178, title I, § 1213(e), June 9, 1998, 112 Stat. 201, directed the Comptroller General to conduct a study to assess the impact that a utility company’s failure to relocate its facilities in a timely manner has on the delivery and cost of Federal-aid highway and bridge projects, including an assessment of methods States use to mitigate such delays, and directed the Comptroller General to transmit to Congress a report on the results of the study with any appropriate recommendations not later than 1 year after June 9, 1998.