U.S. Department of Transportation
Federal Highway Administration

NOTICE

1. PURPOSE. To advise of the limitation on Federal-aid highway program obligations for fiscal year (FY) 1992 and the distribution of this limitation among the States. This Notice supersedes FHWA Notice 4520.114 dated October 29, 1991 which provided a tentative distribution of the 1992 limitation.

2. LIMITATION - LEGISLATIVE PROVISIONS. The Intermodal Surface Transportation Efficiency Act of 1991 provides for the limitation of obligations as follows:

   1. Obligations for Federal-aid highways are limited to $16,800,000,000 for FY 1992.

   2. In accordance with section 1004 of the Intermodal Surface Transportation Efficiency Act of 1991 the Office of Management and Budget has scored the budgetary impact of this Act and has determined that a $1,113,636,000 reduction in obligation limitation for 1992 is required. Reduction in contract authority is not required.

   3. This limitation shall not apply to obligations for projects covered under:

      (1) Sections 125, and 157, of Title 23, United States Code (23 U.S.C.);

      (2) Section 147 of the Surface Transportation Assistance Act of 1978;

      (3) Section 9 of the Federal-Aid Highway Act of 1981;

      (4) Obligations to carry out the provisions of Sections 131(b) and 131(j) of the Surface Transportation Assistance Act of 1982 (Public Law 97-424);

      (5) Section 404 of the Surface Transportation Assistance Act of 1982;

      (6) Sections 1103 through 1108 of the \Intermodal Surface Transportation Efficiency Act of 1991;

      (7) Obligations of funds made available under subsections (b) and (c) of Section 149 of the Surface Transportation and Uniform Relocation Assistance Act of 1987.

   4. Each State is guaranteed sufficient authority to prevent lapse of sums authorized to be appropriated for Federal-aid highways and highway safety construction programs which have been apportioned or allocated to a State.

   5. Amounts authorized for administration, the Federal Lands Highway Program, the National High Speed Ground Transportation Programs and Demonstration projects under Section 149(d) of the Surface Transportation and Uniform Relocation Assistance Act of 1987, are charged to the limitation but are excluded from the State-by-State distribution.

   6. After August 1, 1992, the Secretary will revise a distribution of funds made available if a State does not plan to obligate the amount distributed during FY 1992 and redistribute such amounts to those States able to obligate amounts in addition to those previously distributed during FY 1992. The redistribution will give priority to those States having large unobligated balances of funds apportioned under 23 U.S.C. 104, and 144.

   7. Funds apportioned for FY 1992 or allocated to the States during FY 1992 have been used to determine the factors for making a State-by-State distribution of the obligation limitation. The State-by-State distribution of the FY 1992 obligation limitation shown on Attachment 1 is based on actual FY 1992 apportionments.

   8. During the period October 1 through December 31, 1991, no State shall obligate more than 35 percent of the amount of obligation limitation distributed on such State, as discussed in g. above, and the total of all State obligations during such period shall not exceed 25 percent of the total amount distributed to all States.

3. DISCRETIONARY AND/OR OTHER NON-FORMULA FUNDS. Obligational authority is reserved for discretionary and/or other non-formula funds estimated to be allocated during the fiscal year. A proportional share of obligational authority will be distributed with each allocation of funds during FY 1992 consistent with the proportional share distributed byformula. Such allocations increase the total annual limitation distributed to the State for FY 1992.

4. FEDERAL LANDS PROGRAM. A proportional share of obligational authority for the Federal Lands Highway program has been reserved from distribution. Distribution of the reserved authority will be made by the Federal Lands Highway Program Office.

5. TOTAL LIMITATION. Obligation authority available for distribution in FY 1992 is less than the total apportionments and allocations for the year on which the distribution is based. The same pro rata share of 99.36 percent is thus available for both formula and non-formula distribution. Attachment 1 shows each State's share of the limitation distributed by formula and the amounts reserved for non-formula programs.

6. FUNDS SUBJECT TO FY 1992 LIMITATION. Obligation of the funds shown on Attachment 2 are chargeable to the FY 1992 limitation, as well as obligations for non-highway mass transit projects approved pursuant to 23 U.S.C. 142(a)(2). [SEE PRINTED COPY OF NOTICE FOR A COPY OF THIS ATTACHMENT] Also shown are funds exempt from the limitation.

7. TERRITORIES. Obligation of one percent of the National Highway System apportionment to the territories of American Samoa, Guam, Northern Marianas and the Virgin Islands are subject to the FY 1992 limitation on Federal-aid highway programs. Attachment 1 provides authority to territories. Distribution of this authority among the separate territories will be provided by the Associate Administrator for Program Development and together with the authority provided by this Notice constitutes each territory's total available obligation authority for FY 1992.

8. EFFECTIVE DATE. The Notice is effective December 31, 1991.

9. ACTION. Division Administrators should ensure that copies of this Notice are furnished to State Highway Agencies.

Attachments [FOR ATTACHMENT 2, SEE PRINTED COPY OF NOTICE. ATTACHMENT 1 IS INCLUDED IN THIS DOCUMENT]

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