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Notice
Subject
Revised Federal-Aid Highway Program Obligations Fiscal Year (FY) 2004
Classification Code Date Office of Primary Interest
N 4520.185 September 12, 2005 HABF-10

  1. What is the purpose of this Notice? This Notice provides procedures governing the determination and redistribution of unneeded balances of FY 2005 obligation authority subject to lapse on September 30, 2005, under section 1102(d) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Public Law (Pub. L. No.) 109-59.

  2. What is the background information?

    1. Section 1102(d) of the SAFETEA-LU provides for the redistribution after August 1, 2005, of any obligation authority distributed to a State for FY 2005 that is subject to lapse on September 30, 2005, if the State will not obligate the authority by September 28, 2005.

    2. Section 1102(e) of the SAFETEA-LU provides that the obligation authority made available for Transportation Research programs carried out under chapter 5 of title 23, United States Code (U.S.C.), and title V of SAFETEA-LU shall remain available for 3 fiscal years, and shall be in addition to the amount of any limitation imposed on obligations for Federal-aid highway and highway safety construction programs for future fiscal years. As a result, these amounts are not subject to redistribution. However, FY 2003 obligation authority is subject to lapse if the obligation authority is not obligated by September 28, 2005.

    3. 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 2005 allocations of nonformula, Federal Lands Highway Program and administrative funds. States should not report on special limitation provided for the Equity Bonus Program, the Appalachian Development Highway System Program, High Priority Projects Program, Projects of National and Regional Significance, National Corridor Infrastructure Improvement Program, Transportation Improvements, Discretionary Bridge Program, Delta Regional Authority, Surface Transportation Projects and the National Highway Traffic Safety Administration’s Operations and Research Program, as such amounts are not subject to lapse.

  3. How was the FY 2005 obligation authority distributed?

    1. A total of $23.6 billion in obligation authority was distributed by formula to the States for FY 2005. This obligation authority is available for FY 2005 only and subject to lapse on September 30, 2005.

    2. An additional $6.7 billion was reserved for distribution as special limitation for the Equity Bonus Program, the Appalachian Development Highway System Program, High Priority Projects Program, Projects of National and Regional Significance, National Corridor Infrastructure Improvement Program, Transportation Improvements, Discretionary Bridge Program, under section 117 of title I, division H of the Consolidated Appropriations Act, 2005, Pub. L. No., 108-447 for Delta Regional Authority, Surface Transportation Projects and the National Highway Traffic Safety Administration’s Operations and Research Program. These amounts remain available until used and are not subject to redistribution.

    3. Also, $3.8 billion was reserved from the distribution and used to support the allocation of nonformula (allocated), Federal Lands Highway Program, Transportation Research, and administrative funds.

    4. The remaining $260 million was reserved for transfer to meet the provisions of section 154 of title 23, U.S.C., the Open Container Requirements and section 164 of title 23, U.S.C., the Minimum Penalties for Repeat Offenders for Driving While Intoxicated or Driving Under the Influence.

  4. How is the unobligated FY 2005 obligation authority initially distributed by formula redistributed?

    1. Each Division Administrator must receive a plan from each State department of transportation by September 15, 2005, showing the following, in order to provide a basis for determining: (1) the amount of FY 2005 obligation authority initially distributed by formula that will be available for redistribution among the other States after August 1, 2005, and (2) those States that are able to obligate amounts in addition to that previously distributed:

      1. (1) the September 12, 2005, unobligated balance of formula obligation authority,

      2. (2) the projects and/or Federal funds that will be obligated, or could be obligated by the State no later than September 28, 2005, if additional authority is provided, and

      3. (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 28, 2005.

    3. By September 16, 2005, 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 2005 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 2005 formula authority can be obligated by September 28, 2005.

  5. How is the unobligated FY 2005 obligation authority distributed to support obligation of nonformula (allocated) funds released?

    1. The Division Administrator, in consultation with the State, shall determine the amount of FY 2005 obligation authority distributed to support obligation of nonformula (allocated) funds that will not be obligated by September 28, 2005.

    2. No later than September 14, 2005, nonformula (allocated) funds and associated obligation limitation that will not be obligated by September 28, 2005, must be returned to the appropriate Headquarters Program Office. Nonformula (allocated) funds and associated obligation limitation is officially released when the appropriate Headquarters Program Office notifies the FHWA Budget Division.

    3. By September 16, 2005, 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 14, 2005 (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 28, 2005.

  6. How is the FY 2005 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 14, 2005, must be withdrawn and made available for redistribution, unless Federal Lands Highway and Headquarters Program Offices have firm commitments that the unobligated amounts will be obligated by September 28, 2005.

    2. No later than September 16, 2005, each Director and Program Manager shall report via e-mail the total obligations for each program and the amount that will not be obligated by September 28, 2005, to the FHWA Budget Division’s (HABF-10) official mailbox (FHWA, BudgetDivision).

  7. How will the released obligation authority be redistributed? The formula for redistributing the released obligation authority is based on the requirements of section 1102(d) of the SAFETEA-LU. Priority will be given to those States having large unobligated balances of funds apportioned under sections 104 and 144 of title 23, U.S.C.

  8. When will the redistribution of excess FY 2005 Obligation Authority be redistributed? The redistribution of released obligation authority will be accomplished by September 23, 2005.

  9. 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, 2005, is fully used.

  10. What action is required? Division Administrators must ensure that, (1) the redistributed funds are obligated by September 28, 2005, and (2) that copies of this Notice are provided to State departments of transportation.

J. Richard  Capka

J. Richard Capka
Acting Administrator

Buckle Up America

Attachment

*** SAMPLE REPORT FORMAT ***                  
          STATE NAME        
                   
          FISCAL YEAR 2005        
                   
                   
  September 12   September 12   AMOUNT WHICH        
  UNOBLIGATED   UNOBLIGATED   COULD BE   OBLIGATION   ADDITIONAL
  BALANCE OF   BALANCE   OBLIGATED BY   LIMITATION   LIMITATION
  FUNDS   LIMITATION   SEPTEMBER 28   RELEASED   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 28, 2005, must be returned to the appropriate Headquarters Program Office by September 14, 2005.

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 16, 2005.

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 by September 16, 2005.

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