Texas’ 2024 Unified Transportation Program (UTP) Highlights

After much deliberation and a period of public comment, Gov. Greg Abbott announced last month (August 2023) that the 2024 UTP has been approved. The record infrastructure investment will fund more than 7,000 TxDOT projects and will, over the next decade, create 70,500 new jobs pumping $18.8 billion into the state economy annually. Here are some highlights of the program:

Energy sector infrastructure

The 2024 UTP boosts energy sector road funding to $1 billion, a move applauded by Permian Strategic Partnership (PSP) Chairman Secretary Don Evans. “Permian Basin energy companies and other energy companies across the state paid 10.8 billion dollars in state severance taxes in FY 2022 alone helping fund infrastructure across Texas,”?says Evans. “We are pleased to see additional funds returning to the Basin, helping build and repair infrastructure that will help fuel our local, state, national, and global economy for years to come.” Nearly $285 million will be directed to the?North?Permian Promise Project, which addresses transportation needs throughout the Permian Basin.

Ports

According to the TxDOT,?Texas ports?moved more than 607 million tons of cargo in 2020, more than any other state. The port industry supports 128,00 direct jobs and port-dependent economic activity drives another 1.7 million generating a total personal income of $110 billion. The 2024 UTP includes?$14 billion?for projects that improve economic opportunity, military movement, border and port connectivity, and emergency routes.

Statewide rural and urban connectivity

Nearly $18 billion is dedicated to improving rural and urban connectivity including the SL335 upgrade project, which the Texas Transportation Commission has prioritized recognizing that new freeway connections between I-40, I-27, US 87, and US 287 will allow freight shipments to bypass Downtown and will provide alternate routes for commuters and travelers in Amarillo.

When developing the UTP, district planners sought regional projects that would also address local needs. Upgrading US 59 in the Lufkin District will address local traffic issues and advance a project, the development of I-69, simultaneously. US 59, US 96, and US 69 are major evacuation corridors, which means projects to continue connectivity in the region fall under Category 4-Connectivity Corridors funding.

International Bridge Trade Corridor

The 2024 UTP approves $237 million for Phase I construction of the International Bridge Trade Corridor, a planned 13-mile, four-lane highway that will connect the international bridges between Pharr and Donna in Hidalgo County. When completed, the corridor will give commercial trucks from Mexico direct access to the interstate from several international ports of entry. Billions of dollars of produce and goods are imported through Texas Ports and the steady stream of 18-wheelers creates traffic jams and security risks in border communities. The Corridor will mitigate these problems and facilitate increased international trade.

This historic level of infrastructure spending will impact CRE values across the state. LPA is committed to ensuring that Texas has enough commercial appraiser capacity to support the 2024 UTP. Our commercial real estate experts are active in the valuation of real estate for right-of-way and eminent domain (ROW/ED) purposes. Their proficiencies span the full range of ROW/ED project types.

Contact us today to learn more about LPA’s extensive ROW/ED experience and commitment to delivering accurate and comprehensive appraisal collateral on time, every time.