U.S. Department of Transportation Federal Highway Administration	Notice Subject
	FEDERAL-AID HIGHWAY PROGRAM OBLIGATIONS - FISCAL YEAR (FY) 2001 REDISTRIBUTION AFTER AUGUST 1, 2001
	Classification Code	Date	Office of Primary Interest
	N 4520.163	July 13, 2001	HABF-10

1. What is the purpose of this Notice?  This Notice provides procedures governing the determination and redistribution of unneeded balances of FY 2001 obligation authority subject to lapse on September 30, 2001, under Section 1102(d) of the Transportation Equity Act for the 21^st Century (TEA-21), and the Department of Transportation and Related Agencies Appropriations Act of 2001, Public Law 106-346.

2. What is the background information?
   
   
   1. Section 1102(d) of TEA-21 provides for the redistribution after August 1, 2001, of any authority distributed to a State for FY 2001, that is subject to lapse on September 30, 2001, if the State will not obligate the authority by September 30, 2001.
      
      
   2. A total of $22.2 billion in obligation authority, including Revenue Aligned Budget Authority (RABA), was distributed by formula to the States for FY 2001.  This obligation authority is available for FY 2001 only and subject to lapse on September 30, 2001.  An additional $4.2 billion was reserved for distribution as special limitation for the Minimum Guarantee, Appalachian Development Highway Program, Highway Priority Projects Program (including RABA), and the Woodrow Wilson Memorial Bridge (including RABA).  These amounts remain available until expended and are not subject to redistribution.  The remaining $3.1 billion was reserved from the distribution and used to support the allocation of nonformula (allocated), Federal Lands Highway Program, Transportation Research, and administrative funds.
      
      
   3. Section 1102(e) of TEA-21 provides the applicability of obligation authority made available for Transportation Research Programs carried out under Chapter 5 of Title 23, U.S.C., and under Title V of TEA-21.  The obligation authority shall remain available for three fiscal years.  However, FY 1999 obligation authority is subject to lapse if the obligation authority is not obligated by September 30, 2001. 
      
      
   4. Amounts of unneeded obligation authority initially distributed by formula will be identified separately from unneeded balances of authority reserved from formula distribution and used to support obligation of FY 2001 allocations of nonformula, Federal Lands Highway and administrative funds.  States should not report on special limitation provided for the Minimum Guarantee, Appalachian Development Highway Program, Highway Priority Projects Program, and the Woodrow Wilson Memorial Bridge, for such funds are not subject to lapse.
   
   
   
3. How is the unobligated FY 2001 authority initially distributed by formula redistributed?
   
   
   1. To provide a basis for determining (1) the amount of FY 2001 obligation authority initially distributed by formula that will be available for redistribution among the other States after August 1, 2001, and (2) those States that are able to obligate amounts in addition to that previously distributed, each State must submit a plan by August 10, 2001, to the Division Administrator showing the:

      (1)   July 31, 2001, unobligated balance of obligation authority (formula),

      (2)   projects and/or Federal funds that will be obligated, or could be obligated in the State by September 30, 2001, if additional authority is provided, and

      (3)   obligation authority (formula) that is in excess and is released by the State.

   2. The Division Administrator must review the plan submitted by the State and reach an agreement with the State on those projects that could be approved and authorized by the Division Office on or before September 30, 2001.
      
      
   3. By August 15, 2001, the Division Administrator must submit a report to Headquarters, Office of Budget and Finance (HABF-10), via email to: FHWA, Budget Division (official mailbox), showing (1) the amount of FY 2001 formula authority that is in excess and is released by the State, or (2) that the State and Division Administrator have reached an agreement that the State’s remaining unobligated FY 2001 formula authority can be obligated by September 30, 2001.
   
   
   
4. How is the unobligated FY 2001 authority distributed to support obligation of nonformula (allocated) funds released?
   
   
   1. The amount of FY 2001 obligation authority distributed to support obligation of nonformula (allocated) funds that will not be obligated by September 30, 2001, should be determined by the Division Administrator, in consultation with the State.
      
      
   2. By August 15, 2001, the Division Administrator must submit a report to Headquarters, Office of Budget and Finance (HABF-10), via email to: FHWA, Budget Division (official mailbox), showing (1) the amount of nonformula authority (allocated), by program, released by the State, or (2) that the State and Division Administrator have reached an agreement that the State will obligate available nonformula (allocated) funds by September 30, 2001.
      
      
   3. Nonformula (allocated) funds and associated obligation limitation that will not be obligated by September 30, 2001, should be returned to the appropriate Headquarters program office no later than August 10, 2001.
   
   
   
5. How is the FY 2001 authority reserved for Federal Lands Highway and Headquarters controlled programs redistributed?
   
   
   1. Any nonformula (allocated) funds and associated obligation limitation not obligated by July 31, 2001, must be withdrawn and made available for August redistribution, unless Federal Lands Highway and Headquarters offices have firm commitments that the unobligated amounts will be obligated by September 30, 2001.
      
      
   2. Each Program Manager and Director should report the total obligations for each program and the amount, if any, that will not be obligated by September 30, 2001, to the Budget Division (HABF-10) no later than August 15, 2001.
   
   
   
6. How will the released obligation authority be redistributed? The formula for redistributed of released obligation authority is based on the requirements of Section 1102(d) of TEA-21.  Priority will be given to those States having large unobligated balances of funds apportioned under Sections 104, 144 and 160 of Title 23, U.S.C., and under Section 1015 of the Intermodal Surface Transportation Efficiency Act of 1991.
   
   
7. Is there program monitoring?  Yes.  Headquarters will monitor the program on a national basis to ensure that all available authority subject to lapse on September 30, 2001, is fully used.
   
   

Christine M. Johnson, for
Vincent F. Schimmoller
Deputy Executive Director

Attachment

*** SAMPLE REPORT FORMAT ***					STATE NAME FISCAL YEAR
	JULY 31 UNOBLIGATED BALANCE OF FUNDS		JULY 31 UNOBLIGATED BALANCE LIMITATION		AMOUNT WHICH COULD BE OBLIGATED BY SEPTEMBER 30		OBLIGATION LIMITATION RELEASED		ADDITIONAL LIMITATION REQUIRED
FORMULA LIMITATION
NONFORMULA FUNDS
(BY APPROPRIATION CODE)
EXAMPLES
FERRYBOATS
SCENIC BYWAYS
VALUE PRICING PILOT PROGRAM
BRIDGE DISCRETIONARY
PUBLIC LANDS DISCRETIONARY
NONFORMULA SUBTOTAL
TOTAL