How Highway Rights-of-Way Are Becoming the Solution to America's Grid Bottleneck
A new federal initiative aims to transform existing highway and rail corridors into multiuse arteries for high-voltage transmission and broadband. By co-locating utilities along public transit routes, the policy bypasses the eminent domain battles that routinely stall energy infrastructure.
- Infrastructure Planners
- Focus on accelerating grid and broadband deployment by bypassing land acquisition bottlenecks.
- Transportation Engineers
- Prioritize the safety, maintenance, and future expansion capacity of the physical roadways.
- Property Rights Advocates
- Support co-location as a means to protect private farmland from eminent domain seizures.
Perspectives this story doesn't cover
- Utility Companies
- Environmental Conservationists
What we don’t know
- How many state transportation departments will actually opt into the voluntary federal program.
- The exact lease rates corridor managers will be charged for utilizing public rights-of-way.
- Whether the revenue generated will be sufficient to meaningfully fund local road and bridge repairs.
The United States possesses nearly 161,000 miles of highways and 140,000 miles of railroad tracks—a continuous, publicly owned network that stretches long enough to circle the Earth twelve times. That basis of measurement is critical, because the single greatest bottleneck to the American energy transition is not generating power, but finding the physical space to move it. For decades, the traditional approach to expanding the electrical grid has relied on acquiring new greenfield corridors across private land, a process that has become statistically and politically unworkable. By looking at the land the public already owns, infrastructure planners are identifying a massive, untapped resource.[1][4]
The most efficient solution to this gridlock is hiding in plain sight: burying high-voltage transmission lines and fiber-optic cables along existing transportation rights-of-way. It is a policy shift that bypasses the eminent domain battles that kill most infrastructure projects, and the evidence suggests it is finally gaining federal traction. Rather than fighting thousands of individual landowners for narrow strips of property, utility developers can negotiate with a single entity—the state or federal transportation department—to lease continuous, pre-graded land that already connects major population centers. On September 10, U.S. Transportation Secretary Sean P. Duffy outlined the "Corridors of Commerce" initiative, a federal push to transform these transit routes into multiuse arteries. The program encourages state transportation departments and railroads to lease capacity to private "corridor managers" for utility infrastructure. These managers would oversee the design, development, operation, and maintenance of high-voltage electrical transmission lines, fiber-optic cables, and water pipelines along the routes, effectively turning single-use transportation assets into bundled utility corridors.[1][2][4]
What the data actually says is that acquiring new land for transmission is becoming statistically impossible. According to industry analyses, the U.S. will need two to three times its current transmission capacity by 2050 to meet growing demand and integrate renewable energy sources. Yet, traditional greenfield transmission projects routinely face decade-long delays and fierce landowner opposition over eminent domain. By utilizing existing public corridors, developers can leverage categorical environmental exemptions to bypass lengthy reviews, drastically reducing the time it takes to break ground.[1][3]
A right-of-way in transportation is a designated parcel of land granted for the construction, maintenance, and operation of a road or railway. Historically, these corridors have been strictly single-use, prioritized entirely for the safety and expansion of the traveling public. Federal and state highway agencies have fiercely guarded these borders, operating under the assumption that any non-transportation infrastructure introduces unnecessary risk to drivers and complicates routine road maintenance. However, the physical footprint of an interstate highway extends well beyond the asphalt. The verges and medians offer uninterrupted, pre-graded pathways that are ideally suited for high-voltage direct current transmission lines, which require continuous linear space but have a relatively narrow underground profile. Because the land has already been cleared, leveled, and subjected to environmental impact studies during the highway's initial construction, the ecological disruption of adding underground cables is minimal compared to cutting new paths through undisturbed wilderness.[2][3]
A right-of-way in transportation is a designated parcel of land granted for the construction, maintenance, and operation of a road or railway.
The precedent for overcoming these bureaucratic hurdles exists in the telecommunications sector. The 2021 federal "dig once" rule required states receiving federal-aid highway funding to coordinate road excavations with broadband deployment. By installing joint-duct infrastructure—banks of conduit that multiple internet service providers can lease—states minimized repeated digging. A January 2026 review by the Government Accountability Office found that 46 out of 52 surveyed transportation departments had successfully appointed broadband utility coordinators, proving that state highway agencies can adapt to multiuse mandates.[4]
For energy transmission, legislative momentum has accelerated sharply in 2026. In April, Iowa passed Senate File 2214 with overwhelming bipartisan support, allowing transmission developers to negotiate directly with the Iowa Department of Transportation rather than fighting hundreds of individual landowners. Colorado is currently establishing similar procedures to allow high-voltage transmission longitudinally within state highway rights-of-way, spurred by a private developer's proposal to use 52 miles of the Interstate 76 corridor for a new grid project.[4]
The financial mechanics of the Corridors of Commerce plan rely heavily on public-private partnerships. Revenue generated from utility leases can theoretically fund repairs for the roads, bridges, and tunnels along the corridor, while simultaneously financing the private investment needed for the grid. By monetizing the unused dirt next to the highway, cash-strapped transportation departments can unlock a new, recurring revenue stream without raising gas taxes or toll rates. However, we must be explicit about where the evidence is thin: federal execution and state-level adoption. The new initiative from the Transportation Department is entirely voluntary. Communities and state agencies that do not wish to participate can simply ignore the opportunity. While the federal government can offer streamlined approvals and model frameworks, it cannot force a state department of transportation to open its borders to utility developers.[1][4]
The strongest counter-argument to the multiuse corridor model is operational safety and maintenance conflict. Highway agencies prioritize the structural integrity of the roadbed. Burying high-voltage lines near active traffic lanes introduces complex engineering constraints. Highway engineers warn that if a road needs to be widened, re-graded, or repaired in the future, the presence of critical utility infrastructure could force highly expensive and disruptive relocations, effectively paralyzing roadwork. Furthermore, while the federal government can offer incentives, the actual authority over utility accommodation policies rests with individual states. A patchwork of state regulations currently governs whether longitudinal utility lines are permitted along freeways. While states like Wisconsin have successfully hosted hundreds of miles of transmission along interstates since 2003, many jurisdictions still strictly prohibit the practice or limit it to underground lines, which carry significantly higher upfront capital costs than overhead wires.[2][4]
The transition from single-use asphalt to multiuse infrastructure corridors represents a rare alignment of grid expansion and property rights preservation. Secretary Duffy framed the initiative as "an open invitation to the private sector to work with us on building the critical infrastructure our nation desperately needs." The next verifiable checkpoint arrives on September 12, as initial feedback on the federal program is processed and states decide whether to opt into the voluntary framework, potentially unlocking the nation's largest infrastructure bottleneck.[1]
Key points
- The U.S. Transportation Department has launched the Corridors of Commerce initiative to co-locate utilities along highways.
- The program aims to transform 161,000 miles of highways and 140,000 miles of railways into multiuse infrastructure arteries.
- Utilizing existing public rights-of-way allows developers to bypass eminent domain disputes and lengthy environmental reviews.
- The federal framework is entirely voluntary, leaving ultimate approval authority with individual state transportation departments.
Sources
[1]Washington PostInfrastructure PlannersHow highway rights of way can unlock America’s infrastructure bottleneck
Read on Washington Post →
[2]WikipediaTransportation EngineersRight-of-way (transportation)
Read on Wikipedia →
[3]WikipediaTransportation EngineersElectric power transmission
Read on Wikipedia →
[4]Factlen Editorial TeamInfrastructure PlannersSynthesis by Factlen editorial team
Read on Factlen Editorial Team →
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