Redistribution Of Highway Infrastructure Investment Funds Pursuant To The American Recovery And Reinvestment Act Of 2009, Public Law Number 111-5, After 120 Days
Office of Primary Interest
|N 4510.708||July 9, 2009||HCFB-1|
What is the purpose of this Notice? This Notice is to advise States of the redistribution of Highway Infrastructure Investment funds 120 days after the initial date of apportionment pursuant to Division A, Title XII of the American Recovery and Reinvestment Act of 2009, Public Law Number (Pub. L. No.) 111-5.
What is the background information?
Pursuant to Division A, Title XII of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, on June 30, 2009, 120 days following the apportionment of the Highway Infrastructure Investment funds, an amount equal to 50 percent of the funds awarded to a State (excluding funds sub-allocated within the State) less the amount of funding obligated (excluding funds sub-allocated within the State) were to be withdrawn from each State and redistributed in the manner described in Section 120(c) of Division K, Title I of the Consolidated Appropriations Act, 2008, Pub. L. No. 110-161, to other States that had no funds withdrawn.
Funds sub-allocated within a State to urbanized areas and other areas are not subject to the 120-day redistribution.
How much contract authority is available for withdrawal and redistribution?
As of June 22, 2009, all States and the District of Columbia had obligated at least 50 percent of the Highway Infrastructure Investment funds apportioned to them on March 2, 2009. Therefore, no funds will be withdrawn from any of the States or the District of Columbia.
Table 1 shows the amount of Highway Infrastructure Investment funds apportioned to each State and the District of Columbia on March 2, 2009 and what percentage of those funds were obligated by June 29, 2009.
What is the availability of the remaining Highway Infrastructure Investment funds?
Highway Infrastructure Investment funds shall continue to be administered as if apportioned under Chapter 1 of Title 23, United States Code (U.S.C.) and remain eligible to be obligated for restoration, repair, construction and other activities eligible under Section 133(b) of Title 23, U.S.C., and for passenger and freight rail transportation and port infrastructure projects eligible for assistance under Section 601(a)(8) of Title 23, U.S.C.
The funds are not eligible to be obligated for purposes authorized under Section 115(b) of Title 23, U.S.C. (Advance Construction).
The Disadvantaged Business Enterprises provisions in Section 1101(b) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) of 2005, Pub. L. No. 109-59, shall continue to apply to the Highway Infrastructure Investment funds.
The funds remain free from any limitation on obligations and available for immediate obligation until September 30, 2010. Any amounts not obligated by the State on or before September 30, 2010, shall lapse.
The Federal share continues to be, at the option of the State, up to 100 percent.
States should continue to use the following program codes when obligating these funds: C220, C230, C200, C250, and C240.
What other redistribution provisions apply to these funds?
One (1) year following the initial date of apportionment (March 2, 2010) of the Highway Infrastructure Investment funds, any unobligated balances of such funds will be withdrawn from each State and redistributed in the manner described in Section 120(c) of Division K, Title I of the Consolidated Appropriations Act, 2008, Pub. L. No. 110-161, to States that have had no funds withdrawn (excluding funds sub-allocated within the State).
At the request of a State, the Secretary of Transportation may provide an extension of such 1-year period only to the extent that the Secretary feels satisfied that the State has encountered extreme conditions that create an unworkable bidding environment or other extenuating circumstances.
Further information on the redistribution at 1 year will be provided in a future Notice.
What action is required? Division Administrators should ensure that copies of this Notice are provided to the State departments of transportation.
Gregory G. Nadeau