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Notice
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Subject
Federal-Aid Highway Program Obligations - Fiscal Year (FY) 2004 Redistribution After August 1, 2004
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Classification CodeDate
Office of Primary Interest
N 4520.177 August 27, 2004 HABF-10

  1. What is the purpose of this Notice? This Notice provides procedures governing the determination and redistribution of unneeded balances of FY 2004 obligation authority subject to lapse on September 30, 2004, under Division F of the Consolidated Appropriations Act, 2004, Public Law, 108-199, the Transportation, Treasury, and Independent Agencies Appropriations Act, 2004.

  2. What is the background information?

    1. Section 110(c) of Division F of the Consolidated Appropriations Act, 2004, P.L. 108-199, the Transportation, Treasury, and Independent Agencies Appropriations Act, 2004, provides for the redistribution after August 1, 2004, of any obligation authority distributed to a State for FY 2004 that is subject to lapse on September 30, 2004, if the State will not obligate the authority by September 29, 2004.

    2. Section 2(e)(3) of the Surface Transportation Extension Act of 2003 (STEA03), Public Law (P.L.) 108-88, as amended by the Surface Transportation Extension Act of 2004 (STEA04), P.L. 108-202, the Surface Transportation Extension Act of 2004, Part II (STEA04, Part II), P.L. 108-224, the Surface Transportation Extension Act of 2004, Part III (STEA04, Part III), P.L. 108-263, and the Surface Transportation Extension Act of 2004, Part IV (STEA04, Part IV), P.L. 108-280, provides that a State shall not obligate any funds for any Federal-aid highway program project after September 24, 2004, until enactment of a law reauthorizing the Federal-aid highway program.

    3. A total of $24.8 billion in obligation authority was distributed by formula to the States for FY 2004. This obligation authority is available for FY 2004 only and subject to lapse on September 30, 2004. An additional $2.5 billion was reserved for distribution as special limitation for Minimum Guarantee and the Appalachian Development Highway System. These amounts remain available until used and are not subject to redistribution. Also, $4.3 billion was reserved from the distribution and used to support the allocation of nonformula (allocated), Federal Lands Highway Program, Transportation Research, and administrative funds. The remaining $0.3 million was reserved for transfer and withholding to meet the provisions of title 23, U.S.C., section 154, the Open Container Requirements law; title 23, U.S.C., section 164, the Minimum Penalties for Repeat Offenders for Driving While Intoxicated or Driving Under the Influence law; and title 23, U.S.C., section 163, the Operation of Motor Vehicles by Intoxicated Persons law.

    4. Section 110(d) of Division F of the Consolidated Appropriations Act, 2004, P.L. 108-199, the Transportation, Treasury, and Independent Agencies Appropriations Act, 2004, provides that the obligation authority made available for Transportation Research programs carried out under chapter 5 of title 23, U.S.C., shall remain available for three fiscal years. As a result, these amounts are not subject to redistribution. However, FY 2002 obligation authority is subject to lapse if the obligation authority is not obligated by September 30, 2004.

    5. Amounts of unneeded obligation authority initially distributed by formula will be identified separately from unneeded balances of authority reserved from formula distribution for obligation of FY 2004 allocations of nonformula, Federal Lands Highway Program and administrative funds. States should not report on special limitation provided for Minimum Guarantee and the Appalachian Development Highway System as such amounts are not subject to lapse.

  3. How is the unobligated FY 2004 obligation authority initially distributed by formula redistributed?

    1. To provide a basis for determining: (1) the amount of FY 2004 obligation authority initially distributed by formula that will be available for redistribution among the other States after August 1, 2004, and (2) those States that are able to obligate amounts in addition to that previously distributed, each State must submit a plan by September 3, 2004, to the Division Administrator showing the following:

      1. the July 31, 2004, unobligated balance of formula obligation authority,
      2. the projects and/or Federal funds that will be obligated, or could be obligated by the State no later than September 24, 2004, if additional authority is provided, and
      3. the formula obligation authority 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 24, 2004.

    3. By September 8, 2004, the Division Administrator must submit a report via e-mail to the FHWA Budget Division's (HABF-10) official mailbox ("FHWA, BudgetDivision") showing: (1) the amount of FY 2004 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 2004 formula authority can be obligated by September 24, 2004.

  4. How is the unobligated FY 2004 obligation authority distributed to support obligation of nonformula (allocated) funds released?

    1. The amount of FY 2004 obligation authority distributed to support obligation of nonformula (allocated) funds that will not be obligated by September 24, 2004, should be determined by the Division Administrator, in consultation with the State.

    2. Nonformula (allocated) funds and associated obligation limitation that will not be obligated by September 24, 2004, must be returned to the appropriate Headquarters Program Office no later than September 7, 2004. Nonformula (allocated) funds and associated obligation limitation is officially released when the appropriate Headquarters Program Office notifies the FHWA Budget Division.

    3. By September 8, 2004, the Division Administrator must submit a report via e-mail to the FHWA Budget Division's (HABF-10) official mailbox ("FHWA, BudgetDivision") showing: (1) the amount of nonformula allocated authority, by program, released by the State and returned to the appropriate Headquarters Program Office on September 7, 2004 (NOTE: the FHWA Budget Division will not redistribute the nonformula authority unless the Headquarters Program Office has officially released the nonformula funds and associated obligation limitation), or (2) that the State and Division Administrator have reached an agreement that the State will obligate available nonformula (allocated) funds by September 24, 2004.

  5. How is the FY 2004 authority reserved for Federal Lands Highway Program and Headquarters controlled programs redistributed?

    1. Any nonformula (allocated) funds and associated obligation limitation not obligated by September 7, 2004, must be withdrawn and made available for August redistribution, unless Federal Lands Highway and Headquarters Program Offices have firm commitments that the unobligated amounts will be obligated by September 24, 2004.

    2. Each Director and Program Manager should report via e-mail the total obligations for each program and the amount that will not be obligated by September 24, 2004, to the FHWA Budget Division's (HABF-10) official mailbox ("FHWA, BudgetDivision") no later than September 8, 2004.

  6. How will the released obligation authority be redistributed? The formula for redistributing the released obligation authority is based on the requirements of Section 110(c) of the Consolidated Appropriations Act, 2004, P.L. 108-199, the Transportation, Treasury, and Independent Agencies Appropriations Act, 2004. 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. When will the redistribution of excess FY 2004 Obligation Authority be redistributed? The redistribution of released obligation authority will be accomplished by September 15, 2004.

  8. 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, 2004, is fully used.

  9. What action is required? Division Administrators should ensure that, (1) the redistributed funds are obligated by September 29, 2004, and (2) that copies of this Notice are provided to State departments of transportation.

 

*** SAMPLE REPORT FORMAT ***
      STATE NAME    
           
      FISCAL YEAR 2004    
           
  JULY 31 UNOBLIGATED BALANCE OF FUNDS JULY 31 UNOBLIGATED BALANCE LIMITATION AMOUNT WHICH COULD BE OBLIGATED BY SEPTEMBER 24

OBLIGATION LIMITATION
RELEASED

ADDITIONAL LIMITATION

REQUIRED

FORMULA LIMITATION          
           
NONFORMULA FUNDS          
(BY APPROPRIATION CODE)          
           
EXAMPLES:          
INTERSTATE MAINTENANCE DISC.          
NATIONAL SCENIC BYWAYS          
FERRY BOATS/FERRY TERMINALS          
VALUE PRICING PILOT PROGRAM          
PUBLIC LANDS DISC.          
           
NONFORMULA SUBTOTAL          
           
TOTAL          

NOTE:
Nonformula (allocated) funds associated obligation limitation that will not be obligated by September 24, 2004, must be returned to the appropriate Headquarter Program Office by September 7, 2004.

Nonformula (allocated) funds and associated obligation limitation is officially released when the appropriate Headquarters Program Office notifies the FHWA Budget Division of the release by September 8, 2004.

The FHWA Budget Division will not redistribute the nonformula authority unless the Headquarter Program Office has officially released the nonformula funds and associated obligation limitation by September 8, 2004.


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