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HB 5940

Public utilities: electric utilities; electronic transmission infrastructure; allow to use existing rights-of-way. Amends sec. 13 of 1925 PA 368 (MCL 247.183) & adds sec. 13a.

2025-2026 Regular Session Introduced by Greg Alexander and 14 co-sponsors

Allows utilities to place and relocate infrastructure in public rights-of-way, with state coordination, underground placement priority, and capped per-mile permit fees to fund high

placed on third reading
#publicutilities:electricutilities
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WeVote Research Nonpartisan
Bill Summary · HB 5940

Overview

HB 5940 (Michigan 2025-2026) seeks to revise and expand how electric utilities, other public utilities, and related entities may use and place infrastructure within public rights-of-way, including limited access highway rights-of-way. The bill preserves the existing framework that requires local government consent for utility entry, construction, and maintenance, while creating new state-level coordination, standards, and financial terms to streamline use of rights-of-way for collocated or new facilities, including broadband and electric transmission infrastructure.

Main purpose and intent

  • To allow and regulate the construction, maintenance, and relocation of utility and related facilities (telegraph/telephone/power lines, pipelines, cables, sewers, and similar structures) within public roads, streets, bridges, and waters, including limited access highway rights-of-way.
  • To modernize and standardize processes for entering rights-of-way, prioritizing collocation of projects, underground placement where feasible, and coordination between the Michigan Department of Transportation (MDOT) and utilities.
  • To establish permit requirements, potential fees, and revenue use to offset limited-access highway costs, while ensuring safety and minimizing maintenance burdens.
  • To formalize state-level coordination and planning with utilities for transmission line placement, routing, and future relocations.

Key provisions and changes

  • Section 13 (general access)
    • Utilities and municipalities may enter, construct, and maintain infrastructure within public rights-of-way, including limited-access highway rights-of-way; local governing bodies must provide consent prior to work.
    • Affected structures include telegraph/telephone/power lines, pipelines, wires, poles, conduits, sewers, etc., and may extend to overlaps with waters and highway corridors.
  • Section 13 (subsection 2) – state-level standards for certain utilities
    • Utilities defined under 23 CFR 645.105 (including certain federally regulated entities) may bypass local consent for longitudinal use within limited-access rights-of-way if standards approved by the State Transportation Commission (STC) and Michigan Public Service Commission (MPSC) are met, aligning with federal law.
    • Emphasizes underground placement to minimize highway maintenance impact; allows reasonable charges for longitudinal use, with a one-time permit fee not exceeding $1,000 per mile of longitudinal use, minimum $5,000 per permit.
    • Any shortfall between permit fee revenue and actual permit costs may be billed to the utility. All revenue goes to capital and maintenance expenses for limited-access highways and permit costs.
  • Section 13 (subsection 3) – relocation considerations
    • Local agencies may request relocation of facilities, but permit fees related to relocation must be waived when relocation is required due to existing authorized placement (with caveats).
  • Section 13 (subsection 4) – data collection and travel information devices
    • Allows use of electronic devices for traffic data collection or travel assistance within rights-of-way, subject to STC standards and compatibility with federal law; revenue-sharing with the state trunk line fund; possible in-kind contributions accepted.
  • Section 13a – state coordination for transmission lines
    • STC must coordinate with utilities/transmission line developers to review highway corridors for permissible transmission line locations upon written request.
    • The STC must share known future plans with utilities.
    • If a permittable corridor is identified, the STC and the utility must develop a constructability report for collocation, approved by both before a permit is issued.
    • The constructability report must specify terms/conditions for building, including a mutually agreed constructability timeframe during which relocation requests cannot be made.
    • If relocation is required, the STC must provide at least 5 years’ advance notice to the utility.
    • Defines “transmission line” as a high-voltage line.

Who/what is affected

  • Public utilities (telegraph, telephone, power, pipelines, cables, sewers, etc.) and broadband providers.
  • Cable television companies and municipalities.
  • State entities: Michigan Department of Transportation (MDOT), Michigan Public Service Commission (MPSC), and State Transportation Commission (STC).
  • Local units of government (cities, villages, townships, counties, road commissions) whose consent is normally required for use of rights-of-way.
  • Transmission line developers and utilities engaged in high-voltage transmission projects.
  • Agencies and private entities engaged in traffic data collection and travel information services.

Procedural and timeline aspects

  • Local consent: Work in rights-of-way generally requires consent of the local governing body before commencing.
  • State standards: For certain federally regulated utilities, the state may override local consent if STC/MPSC-approved standards are met; underground placement preferred; potential per-mile one-time permit fees and cost-recovery mechanisms.
  • Relocation: If relocation is needed due to planned projects, permits for relocation may be waived under specified conditions.
  • Revenue use: Fees collected under the new subsection 2 are to be used exclusively for capital and maintenance costs of limited-access highways; any shortfall may be charged to the utility.
  • Constructability coordination: For transmission lines, the STC must coordinate with utilities to identify permittable corridors, develop constructability reports, and obtain joint approval before permits are issued.
  • Notice for relocation: If a transmission line must be relocated, the department must give at least 5 years’ notice.
  • Constructability reports: These reports define terms, conditions, and timelines for collocation, including protection of planned in-place facilities during planning.

Potential impact

  • Streamlined placement of utilities and transmission lines within rights-of-way, potentially reducing duplicates and accelerating projects.
  • Greater predictability and planning through formal constructability reports and advance coordination between MDOT, utilities, and developers.
  • Financial considerations for utilities via a capped permit fee and a mechanism to recover costs through ongoing charges to support highway infrastructure.
  • Emphasis on underground installation to reduce long-term maintenance and disruption to roadways.
  • Increased opportunities for data collection and traveler information services within rights-of-way, subject to standards and compensation arrangements.

Compiled from official sources — confirm details with the bill’s official record.

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