Notwithstanding any other provisions of this chapter, the Indiana department of transportation may pay the initial cost of relocating a utility facility if all of the following conditions have been met:

1. (1) The utility facility is owned by a political subdivision of this state.
2. (2) The removal of the utility facility is incurred as the result of a federally funded highway or railroad-highway improvement project.
3. (3) The relocation qualifies for initial cost of construction with state funds as a part of the federal-aid project cost.
4. (4) A federal-aid project agreement is entered into with the Federal Highway Administration.

5. (5) The department has been assured reimbursement for all costs by the Federal Highway Administration, the political subdivision, or both.

   As added by Acts 1982, P.L.73, SEC.1. Amended by P.L.18-1990, SEC.26.