SUPPLEMENTARY INFORMATION:

I. Background

Significant and immediate investment in longitudinal utility infrastructure is essential to meet the surging energy and power needs of critical manufacturing and emerging technologies that drive America's security, prosperity, and global leadership. Similarly, transportation agencies and companies require additional resources to fund capital improvements and address deferred maintenance. Through AGCC, DOT seeks to leverage existing highway and rail ROWs in a safe and strategic manner by facilitating meaningful colocation of multiple utility assets, including electric and communications infrastructure. This initiative will build, in record time, a new backbone for the world's strongest economy while maintaining operational flexibility for ROW owners and enabling revenue generation. AGCC directly addresses the national emergency established by Executive Order 14156 regarding the inadequate U.S. power grid and energy supply and need for a more reliable, diversified, and affordable supply of energy.

While utility colocation within the ROW is technically feasible and has been implemented to some degree in the United States, installations are typically assessed and executed on a case-by-case basis without a comprehensive and strategic commercial, technical, and financial plan. This fragmented process increases time and resource demands, creates inefficiencies, and restricts the ability to scale efforts effectively. In contrast, through the Build America Bureau's AGCC initiative, the Department will unleash the full power of America's transportation corridors by harnessing the Administration's decisive leadership to unite Federal, State, and private partners.

As a part of AGCC, the U.S. Secretary of Transportation will lead an interagency Federal task force aimed at marshaling Federal resources and relevant permitting agencies and authorities to expedite and scale colocation in AGCC corridors. The task force will provide technical assistance and coordination for designated AGCCs.

Key goals of AGCC are to:

• Drastically accelerate the siting, permitting, and financing of linear utility infrastructure projects, including electrical transmission lines, water pipelines along highways, pipelines along railways, fiber optic, and rural broadband along corridors where colocation is safe, technically and operationally feasible, and in demand through an innovative P3 model and leasing concept.
• Incentivize data centers, manufacturing facilities, and distribution hubs to locate close to AGCC corridors to leverage a “plug and play” model for easy connectivity to new utility corridors, maximizing underused transportation assets and spurring significant economic benefits to States and regions in record time.
• Provide a new opportunity for utility and telecommunication companies in addition to the existing siting options.
• Provide the backbone needed by State DOTs and railroads to deploy technology projects, safety equipment, signs, Intelligent Transportation Systems (ITS), autonomous capabilities, Wi-Fi, and potentially electricity.
• Enhance the value of highway and rail ROWs by creating financial incentives to allow for installation of these valuable utility corridors.
• Simplify the National Environmental Policy Act (NEPA) review processes for colocation of utility infrastructure within transportation ROWs by helping project developers identify and leverage existing Federal tools. Categorical Exclusions (CEs) generally have the shortest analysis and review timeline and are reserved for actions that Federal agencies have determined will not have a significant impact based upon previous projects and analyses. Projects within the AGCC program will most likely fall under one or multiple CEs, as they will largely take place within the transportation ROW and environmental disturbance will be limited. Information on AGCC concierge services and broader permitting efficiencies, including applicable CEs and environmental review resources available to both AGCC program participants and independent developers is available on the AGCC web page.
• Coordinate financial tools and resources to reduce deployment costs or increase revenue opportunities from value creation.
• Assist State DOTs and railroads in effectively managing their ROW by eliminating administrative and operational burdens of utility coordination. The AGCC model establishes a single point of responsibility for negotiating access to ROWs and coordinating between various players. This saves time and resources for ROW owners, enabling them to focus on their core responsibilities.

Key benefits of supporting the coordinated and efficient development of linear utility infrastructure in the transportation ROW include:

• Cost Reduction and Efficiency Gains: In contrast to conventional colocation initiatives, AGCC enables macro-level cost savings and expedited project delivery leading to lower costs and increased utility deployment to meet the needs of both the public and industry. The program minimizes the need for new ROW acquisition and reduces development costs.
• Strategic Industrial Land Use: Land adjacent to highways and railways outside of the ROW, often undervalued due to environmental factors like noise, can be repositioned for high value uses such as data centers, advanced manufacturing facilities, or distribution hubs, leading to increased economic ( printed page 53481) activity and tax revenues for states and localities. It also frees up higher value land situated further from highways and railroads for residential or mixed-use development.
• Achieving Economies of Scale: AGCC seeks to enable value creation by encouraging technical efficiencies, such as shared trenching or tunneling, standardized engineering protocols, and consolidated procurement, that provide a faster and less expensive alternative to existing development options.
• Generation of Revenue: ROW leasing and utility hosting arrangements can open new, recurring revenue channels. Revenues can be reinvested in upgrades along the 160,000 centerline miles of the National Highway System and the 140,000 route miles of the U.S. freight rail network.
• Reducing Utility Rates: Colocating businesses and activities that use significant utilities along one line prevents the need for extensive, scattered grid transmission upgrades and the need to coordinate with too many landowners. This strategic utilization of ROWs and clustering can minimize the total capital investment required to provide reliable power, ultimately lowering transmission costs and creating downward pressure on residential user rates.
• Utilization of Previously Developed Land: By focusing on existing transportation ROWs, AGCC projects will be treated as brownfield developments, rather than greenfield expansions. This approach reduces environmental disturbance, leverages existing infrastructure (roads, utilities, grading), and lowers remediation and construction costs.

AGCC is a P3 initiative in which a private entity (concessionaire) is procured by a highway or rail ROW owner to act as their Corridor Manager. The Corridor Manager activities will include but not be limited to: design, build, finance, operate and maintain dedicated sub-surface channels ( e.g., via boring or tunneling) and associated infrastructure along highway and rail ROWs for a period of time (typically 30-50 years) under certain terms and conditions specified by the ROW owner. The concessionaire will also act as business developer for the corridor, providing utility companies access to the space under a lease agreement and annual lease payments.

Discover more about the AGCC initiative in the sections below or by visiting the AGCC web page.

II. P3 Approach to Delivering Utility Colocation Projects

The AGCC model seeks to engage multi-industry P3s to promote broader use of the transportation ROW to generate commercial and public benefits while protecting ROW owners' control. Under the AGCC P3 model, the ROW owner may negotiate a contractual agreement with a private entity to serve as a Corridor Manager. The Corridor Manager may act as the central project leader and take on responsibilities such as business development, design, construction, finance, and long-term operation and maintenance. U.S. DOT seeks to maximize optionality for State departments of transportation and railroad ROW owners in selecting the delivery and construction method that is the best fit for their specific state or regions and will provide technical assistance, tools and resources to assist delivery of the project.

One likely delivery method for AGCC projects on either highway or rail corridors will be developing an underground utility tunnel capable of colocating multiple infrastructure items. Benefits of undergrounding vary by geography but can include economies of scale from digging once, greater reliability and resiliency of utilities, improved public safety risks and making efficient use within corridors located in high population areas. For underground AGCC projects, the Corridor Manager can be responsible for building the underground utility tunnel and leasing space to the utility and telecommunication companies. The Corridor Manager can also manage those leases and collect/share revenue with the ROW owners based on pre-negotiated contractual terms or resource sharing agreements. In some cases, these underground utility tunnels or conduits may be eligible for financing by the Build America Bureau's TIFIA or RRIF loans or Department of Energy (DOE)'s Energy Dominance Financing (EDF). While the utility items themselves may be financed in part by federal loan programs such as EDF, or the Environmental Protection Agency (EPA), they could also be financed directly by private sector or utility companies to avoid requiring compliance with certain federal regulations. U.S. DOT will bring to bear sufficient resources and prioritization to expedite environmental review (NEPA) while also working in concert with federal permitting agencies to provide the necessary permits for these projects for all utilities up front. Operating in this way can provide certainty to the ROW owner and businesses looking to access these corridors that all environmental and permitting is completed.

For AGCC highway projects that choose above ground utilities in the ROW, the Corridor Manager can be involved in any development of utility infrastructure working directly with the utility and telecommunications companies, the details of which will be negotiated by those private parties. The Corridor Manager can also be responsible for the same lease negotiation, revenue collection or resource sharing activities listed above. Project sponsors who choose above ground—or a hybrid approach—electric transmission and colocation of related infrastructure items may receive the same concierge environmental and permitting expedition by U.S. DOT and other federal agencies. Regardless of the building method employed by project sponsors, U.S. DOT may favor applications for AGCC designation in states and regions that have state-level environmental policies, utility accommodation policies and permitting policies that are in sync with the environmental and permitting streamlining at the federal level.

III. AGCC Designation

The Department will establish a process to designate and prioritize AGCC candidates to receive technical assistance and concierge services with a focus on planning, siting, permitting, and financing. DOT intends to designate up to five AGCCs per year. The broad AGCC colocation and P3 concept may be utilized by any ROW owners, regardless of official AGCC designation, and the Department will provide informational resources to support broader application of the concept. However, only designated AGCCs would receive specialized Federal concierge services. To maximize these benefits, ROW owners should align their state and utility accommodation policies with the concierge services being introduced by Federal partners.

It is envisioned that the Department will establish an interagency Federal task force to provide technical assistance and coordination for the designated AGCCs. Each designated AGCC would have dedicated Federal points of contact to provide concierge services aimed at reducing administrative delays, minimizing interagency conflicts, maximizing available financial resources, and lowering compliance costs. The Federal task force efforts would focus on two primary areas:

1. Streamlining and Expediting NEPA Review and Permitting Processes: Each ( printed page 53482) designated corridor's Federal point of contact will be responsible for convening and coordinating resource agencies to ensure compliance with NEPA and other related environmental laws and regulatory requirements. This will include reviewing potential project impacts and recommending a NEPA class of action, with an emphasis on utilizing available categorical exclusions (CEs). This permitting concierge service will also include convening relevant Federal permitting agencies to prioritize and coordinate the necessary Federal permits in an expedited manner and to the fullest extent of the law allowed under One Federal Decision.

2. Streamlining and Unifying Access to Federal Funding and Financing Programs: Designated corridors would receive technical assistance to apply for planning grants, use technology tools, and navigate state level environmental reviews and utility accommodation policies.

While the availability of the Federal task force concierge services would be limited to designated AGCCs, the broader transportation community will benefit from the resources, best practices, and lessons learned developed through this effort.

IV. Key Elements of AGCC Designation Process

DOT intends to solicit proposals from ROW owners through an annual Request for Expressions of Interest (RFEI). The AGCC Federal task force would screen proposals for alignment with AGCC goals related to market demand, corridor readiness, financial feasibility, streamlining efforts, and stakeholder support, and may provide geospatial resources to support the identification of corridors that are good AGCC candidates. The task force would also consider State and local commitments to streamline and expedite permits and environmental reviews and provide funding and financing incentives while evaluating AGCC proposals. The Federal task force intends to prioritize longer multi-state corridors with regional significance.

V. Request for Information

DOT seeks comments and recommendations from all interested stakeholders regarding the AGCC model and the proposed elements of DOT's anticipated approach to implementing the voluntary, applicant-driven AGCC designation process as described above. In addition, DOT seeks comments and recommendations on the following specific questions:

1. What are the most critical challenges and barriers to deploying the AGCC concept as described in the RFI? How can these challenges and barriers be mitigated? What actions and resources can the Federal government provide to help mitigate these barriers? Please consider factors such as:

a. Technical feasibility, including proximity, construction, and other technical feasibility considerations and/or limitations of colocating utilities in the transportation ROW and/or of colocating multiple utilities within an underground tunnel (channel) or above ground in the outer limits of the ROW.

b. Safety during construction, operations, and maintenance.

c. Siting, planning, and permitting.

d. Funding and financing, design, development, construction, operations, and maintenance.

e. Construction timeliness.

f. Federal and State regulations and policies.

g. Community engagement and acceptance.

h. Market limitations.

2. What can be done to minimize challenges and complexities or maximize opportunities for projects that cross jurisdictional borders? Please consider factors such as:

a. Revenue sharing across transportation and utility jurisdictions.

b. Financial and operational liability across transportation and utility jurisdictions.

c. Utility service across transportation utility jurisdictions.

d. Interstate cooperation and coordination.

e. Laws, regulation, and utility accommodation policies.

3. What are challenges, complexities, opportunities, and recommendations related to the proposed voluntary AGCC P3 model described in this RFI? How can the Federal government support procurement in this context? In your response, consider the template P3 Term Sheet developed by the Build America Bureau [ www.transportation.gov/​grants/​agcc/​p3-term-sheet-example]. This document is intended solely for illustrative purposes and does not constitute prescriptive guidance or requirements from the U.S. Department of Transportation.

4. What forms of technical assistance or support would help ROW owners, utilities, and project developers more effectively deploy AGCC corridors? Specifically consider the types of support that would be most helpful from the Federal interagency task force, considering the anticipated support described in this RFI.

5. Please comment on the approach to designate AGCCs described in this RFI. What are the potential positive and negative impacts of such an approach? How could this process be altered or improved?

6. Would the AGCC model accelerate deployment of power and communications infrastructure versus traditional greenfield projects? What are the potential regional economic and industrial development impacts of the AGCC model compared to traditional greenfield projects?

7. A goal of AGCC is to leverage opportunities to co-develop utility projects in support of increased affordability for utility ratepayers. AGCC seeks to catalyze opportunities for diverse, least-cost, least-risk resources which will not unnecessarily increase utility rates. Are there design elements of AGCC that are important to consider to ensure success of this goal?

VI. Disclaimer

This is solely a request for information; DOT is not accepting expressions of interest in response to this RFI. DOT may or may not elect to issue an RFEI in the future based on or related to the content and responses to this RFI. Respondents may respond to as many or as few questions or topics as they wish. DOT will not respond to individual submissions or publish a compendium of responses. DOT may request clarification of responses to this RFI through direct contact with respondents. Any information obtained as a result of this RFI is intended to be used by the Government on a non-attribution basis for planning and strategy development. Responses to this RFI will be treated as information only. Responses to this RFI do not bind DOT to any further actions related to these topics.

VII. Confidential Business Information

Because information received in response to this RFI may be used to structure future programs and/or be made available to the public, respondents are strongly advised NOT to include any information in their responses that might be considered business sensitive, proprietary, or otherwise confidential. If a respondent chooses to submit business sensitive, proprietary, or otherwise confidential information, it must be clearly and conspicuously marked as such in the response. Failure to comply with these marking requirements may result in the disclosure of the unmarked information under the Freedom of Information Act or otherwise. The U.S. Federal Government is not liable for the disclosure or use of unmarked information and may use or disclose such information for any purpose.

91 FR 53479