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This directive was canceled February 7, 2014.

Notice
Subject
Distribution of Federal-Aid Highway Program Obligation Limitation for Fiscal Year (FY) 2014 (October 1, 2013, through January 15, 2014)
Classification Code Date Office of Primary Interest
N 4520.227 October 25, 2013 HCFB-1

  1. What is the purpose of this Notice? This Notice is to advise the States of the distribution of the limitation on Federal-aid highway program obligations pursuant to the Continuing Appropriations Act, 2014, Public Law (Pub. L.) 113-46.

  2. Does this Notice cancel FHWA Notice 4520.226? Yes, this Notice cancels FHWA Notice 4520.226, Distribution of Federal-aid Highway Program Obligation Limitation for Fiscal Year (FY) 2014, dated October 15, 2013. This Notice reflects the obligation levels and obligation limitation distribution under the Continuing Appropriations Act, 2014.

  3. What is the overall limitation on obligations, and what provision determines its distribution?

    1. Section 101 of the Continuing Appropriations Act, 2014, sets an overall limitation on obligations at an annual rate for operations of $39,619,602,000 for FY 2014. This annual rate for operations is equal to the obligation limitation made available in FY 2013 under the Full-Year Continuing Appropriations Act, 2013, division F of Pub. L. 113-6, after incorporating the 0.2 percent across-the-board rescission of obligation limitation in FY 2013 under section 3004 of division G of the Consolidated and Further Continuing Appropriations Act, 2013, Pub. L. 113-6.

    2. The Continuing Appropriations Act, 2014, covers the period from October 1, 2013, through January 15, 2014 (107 days). The pro-rata for that period is 29.32 percent (107 days divided by 365 days). The pro-rata is applied to the distribution of obligation limitation calculated based on the annual rate for operations. Therefore, the total obligation limitation provided by this Notice is $11,616,467,306 ($39,619,602,000 times 29.32 percent).

    3. Pursuant to section 101(a) of the Continuing Appropriations Act, 2014, which continues section 1801(c) of the Full-Year Continuing Appropriations Act, 2013, the distribution of the overall limitation on obligations shall be determined by applying the obligation limitation distribution methodology in section 1102 of the Moving Ahead for Progress in the 21st Century Act (MAP-21).*

    4. Upon the enactment of a full-year appropriations act or a further continuing appropriations act, the distribution of obligation limitation will be revised and additional obligation limitation provided as determined under the provisions of such law.

    5. Unless otherwise specified, all obligation limitation is available for one fiscal year and will expire at the end of FY 2014.

  4. What funds are exempt from the limitation on obligations? The obligation limitation does not apply to obligations for projects covered under:

      1. (1) section 125 of title 23, United States Code (U.S.C.);

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

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

      4. (4) sections 131(b) and 131(j) of the Surface Transportation Assistance Act of 1982;

      5. (5) sections 149(b) and 149(c) of the Surface Transportation and Uniform Relocation Assistance Act of 1987;

      6. (6) sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991;

      7. (7) section 157 of title 23, U.S.C., as in effect on the day before the date of enactment of the Transportation Equity Act for the 21st Century;

      8. (8) section 105 of title 23, U.S.C, as in effect for fiscal years 1998 through 2004, but only in an amount equal to $639,000,000 for each of those fiscal years;

      9. (9) the Federal-aid highway programs for which obligation authority was made available under the Transportation Equity Act for the 21st Century or subsequent public laws for multiple years or to remain available until used, but only to the extent that the obligation authority has not lapsed or been used;

      10. (10) section 105 of title 23, U.S.C., but only in an amount equal to $639,000,000 for each of fiscal years 2005 through 2012;

      11. (11) section 1603 of the SAFETEA-LU, to the extent that funds obligated in accordance with that section were not subject to a limitation on obligations at the time at which the funds were initially made available for obligation; and

      12. (12) section 119 of title 23, U.S.C., but only in an amount equal to $639,000,000 for each of fiscal years FY 2013 through FY 2014.

  5. How are the obligation limitation amounts associated with allocated programs determined?

    1. Obligation limitation is provided for administrative expenses and programs authorized under section 104(a) of title 23, U.S.C., and amounts authorized for the Bureau of Transportation Statistics. Pursuant to section 101 of the Continuing Appropriations Act, 2014, the annual rate for operations for limitation on Federal Highway Administration administrative expenses is $416,126,405 ($122,008,262 at the pro-rata of 29.32 percent) and for transfer to the Appalachian Regional Commission for administrative activities is $3,213,560 ($942,216 at the pro-rata of 29.32 percent). For the other programs for which funding is authorized under section 104(a) of title 23, U.S.C., and the Bureau of Transportation Statistics, the annualized amount of obligation limitation is equal to the contract authority for each such program.

    2. Obligation limitation is provided for the unobligated balances of contract authority for allocated programs (or for the apportioned Tribal Transportation Program and Federal Lands Access Program) that are carried over from previous fiscal years and for which obligation limitation had been provided in a previous fiscal year. The annualized amount of obligation limitation is equal to such unobligated balances of contract authority.

    3. The ratio between the remaining annualized amount of obligation limitation and the remaining FY 2014 contract authority subject to obligation limitation is determined. The ratio calculated for FY 2014 under the Continuing Appropriations Act, 2014, is 93.0 percent.

    4. Obligation limitation is distributed for each of the allocated programs (other than those allocated programs for which obligation limitation has already been provided) and for the Tribal Transportation Program and Federal Lands Access Program. The annualized amount of obligation limitation for each such program is determined by multiplying the amount of contract authority authorized for FY 2014 by the above ratio. The authorized contract authority that is not provided associated obligation limitation is "lopped off," resulting in amounts of contract authority equal to the annualized amounts of obligation limitation available for such programs (except for the Tribal Transportation Program, which is not subject to the "lop off" of contract authority).

    5. The obligation limitation for each of the allocated programs for the period from October 1, 2013, through January 15, 2014, is then determined by multiplying the annualized amount of obligation limitation for each allocated program by the pro-rata of 29.32 percent.

  6. How is the distribution of formula obligation limitation to the States determined?

    1. After obligation limitation is provided for the allocated programs (and for the Tribal Transportation Program and Federal Lands Access Program) as described above, the remaining annualized amount of obligation limitation is distributed to the States as formula obligation limitation. The formula obligation limitation is distributed among the States in the proportions that the FY 2014 apportionments subject to the obligation limitation for each State bear to the total FY 2014 apportionments subject to the obligation limitation for all States.

    2. The formula obligation limitation available for the period from October 1, 2013, through January 15, 2014, is then determined by multiplying the annualized amount of formula obligation limitation for each State by the pro-rata of 29.32 percent.

    3. The attached Table 1 shows the amount of FY 2014 formula obligation limitation distributed to each State for the period from October 1, 2013, through January 15, 2014 (107 days) net of any obligation limitation associated with the penalty funding or set aside under the high risk rural roads special rule (see paragraphs 7 and 8 of this Notice below).

  7. Is there any obligation limitation associated with penalty funds?

    1. Yes, obligation limitation is associated with penalty funds for those States that failed to meet the provisions of section 154 of title 23, U.S.C. (Open Container Requirements) or section 164 of title 23, U.S.C. (Minimum Penalties for Repeat Offenders for Driving While Intoxicated or Driving Under the Influence) for FY 2014 as determined by the National Highway Traffic Safety Administration. The annualized amount of obligation limitation associated with the penalty funds is determined by multiplying the amount of the penalty funds by the ratio of a State's annualized formula obligation limitation to that State's apportionments subject to the obligation limitation.

    2. The obligation limitation associated with penalty funds for the period from October 1, 2013, through January 15, 2014, is then determined by multiplying the annualized amount of obligation limitation associated with penalty funds for each State by the pro-rata of 29.32 percent.

    3. Along with the penalty funds, the associated obligation limitation will be reserved and then released for use on eligible Highway Safety Improvement Program activities under section 148 of title 23, U.S.C., or transferred to the State's safety program under section 402 of title 23, U.S.C. The amounts of penalty funds for FY 2014 and associated obligation limitation for the period from October 1, 2013, through January 15, 2014 (107 days) are shown in Table 2.

  8. Is there any obligation limitation set aside under the special rule for high risk rural roads?

    1. Section 148(g)(1) of title 23, U.S.C., contains a special rule for high risk rural road safety. The special rule requires that, if the fatality rate on rural roads in a State increases over the most recent 2-year period for which data are available, the State must obligate during the next fiscal year for projects on high risk rural roads an amount at least equal to 200 percent of its FY 2009 high risk rural roads set-aside.

    2. The requirement to obligate such amounts during the next fiscal year is implemented by a set-aside of both Highway Safety Improvement Program funds and, on an annualized basis, an equal amount of associated obligation limitation.

    3. The obligation limitation associated with the high risk rural road safety special rule for the period from October 1, 2013, through January 15, 2014, is then determined by multiplying the annualized amount of obligation limitation associated with the high risk rural road safety special rule for each State by the pro-rata of 29.32 percent.

    4. The amounts of high risk rural roads special rule funds for FY 2014 and associated obligation limitation for the period from October 1, 2013, through January 15, 2014 (107 days) are shown in Table 3.

  9. What other provisions apply that are related to the distribution of obligation limitation?

    1. Contract authority for transportation research programs under chapter 5 of title 23, U.S.C., or division E of Pub. L. 112-141 is subject to obligation limitation that remains available for a period of 4 fiscal years. Obligation limitation made available for Transportation Research in future fiscal years will be in addition to amounts made available for FY 2014.

    2. The amounts of contract authority "lopped off" from the allocated programs and the Federal Lands Access Program due to the imposition of the obligation limitation will be redistributed to the States. The redistribution will be provided via a separate notice to be issued no later than 30 days after the distribution of the obligation limitation.

    3. After August 1, 2014, the Secretary will revise the distribution of obligation authority made available if a State does not plan to obligate the amount distributed during FY 2014 and redistribute such amount to those States able to obligate amounts in addition to those previously distributed during FY 2014. Procedures for this process (known as August Redistribution) will be provided via a separate notice to be issued in mid-to-late July.

  10. What action is required? Division Administrators should ensure that copies of this Notice are provided to the State departments of transportation.

* Paragraphs (1) and (2) of section 1801(c) of the Continuing Appropriations Resolution, 2013, instruct that section 1102 of MAP-21 be applied with specified changes to the distribution language.

 

signed

Victor M. Mendez
Administrator

Attachments

Table 1
Table 2
Table 3

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Page posted on October 29, 2013.
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