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Appalachian Development Highway System Questions & Answers

Posted 12/27/2012

Question 1: When can States take advantage of the 100 percent Federal share for projects on highways and access roads on the Appalachian Development Highway System (ADHS) using apportioned funds?

Answer 1: States can apply for 100 percent Federal share using ADHS or other apportioned funds for highways and access roads on the ADHS. The effective date of this provision was July 6, 2012, the date the President signed MAP-21 into law. The 100 percent Federal share is available for fiscal years 2012 through 2021. Sec. 1528 (b).

Question 2: Can States use less than the 100 percent Federal share on an ADHS project funded with ADHS or other apportioned funds?

Answer 2: No. Section 1528 of MAP-21 establishes the Federal share at 100 percent for cost of constructing highways and access roads on the ADHS.

Question 3: Can States apply for 100 percent Federal share when using earmarked funding under the High Priority Projects Program?

Answer 3: Section 1528(b) provides for a Federal share of 100 percent for funds made available for fiscal year 2012 or a previous fiscal year for a specific project, route, or corridor on the ADHS. This is in addition to the increased share allowed for ADHS apportionments or other apportionments. There may be High Priority Projects or other earmarks that meet this requirement.

Question 4: Can States apply toll credits to fund the non-Federal share on an ADHS project?

Answer 4: Section 1528 of MAP-21 establishes a 100 percent Federal share for ADHS or other apportioned funds for highways and access roads on the ADHS. While toll credits are not necessary for these projects, toll credits may be applied at the option of the State when using funds that do not provide for a 100 percent Federal share. In addition, toll credits may be applied on reconstruction or rehabilitation projects on the ADHS.

Question 5: Are all projects on highways and access roads on the ADHS that use ADHS funds or other Federal funds eligible at 100 percent funding?

Answer 5: No. Section 1528 of MAP-21 cross references the cost of construction on and access to the ADHS under the Appalachian Regional Development Act (40 U.S.C. 14501). Only projects that contribute to the completion of the ADHS as identified in the latest approved Cost to Complete Estimate are eligible for 100 percent Federal funding when using ADHS or other apportioned funds, or funds specifically designated for an ADHS cost to complete project in FY 2012 or a prior fiscal year as provided in section 1528(b). Work to repair, extend the life of, or modify completed segments of the ADHS is not eligible for 100 percent Federal share. Additionally, an ADHS section that was listed as an ineligible section in the latest approved Cost to Complete Estimate may be eligible for Federal-aid with NHPP or STP funds only at the Federal share specified under 23 U.S.C. 120.

Question 6: If the preliminary engineering phase of a project was authorized prior to MAP-21 being signed into law, can the remaining phases of an ADHS project be funded at 100 percent Federal share?

Answer 6: Yes. The Federal share that was used at the time of initial authorization must continue to be used for that phase of the project; however subsequent phases obligated after July 6, 2012 shall be funded at the 100 percent Federal share.

Question 7: Can a State convert Advance Construction ADHS or local access projects authorized prior to the enactment of MAP-21 at the 100 percent Federal share?

Answer 7: Section 1528 mandates a 100 percent Federal share for FY 2012 through FY 2021. Therefore, work that was authorized [begun] in FY 2012 and converted after July 6, 2012 shall be at the 100 percent Federal share. Work authorized for advance construction prior to FY 2012 and converted after July 6, 2012 cannot result in a change to the pro-rata Federal share.

Question 8: Will additional obligation authority be provided to cover the unobligated ADHS balances?

Answer 8: No. ADHS funds have a special no year obligation limitation that is available until used. No additional obligation limitation is provided to cover the unobligated balances of ADHS funds above the special obligation limitation. States with insufficient special ADHS limitation must use formula obligation limitation.

Question 9: Can National Highway Performance Program (NHPP) funds be used for construction of the ADHS system and local access roads?

Answer 9: NHPP funds may be used for construction of ADHS routes that are also on the National Highway System. Typically, local access roads are not on the NHS and would not be eligible for NHPP funds. However there may be situations where the local access project includes work on the NHS, such as at an intersection, in which case that portion of the project may be eligible for NHPP funds. Sec. 1106.

Question 10: Does the STP program authorize funding of local access roads on the ADHS (under section 14501 of title 40, U.S.C)?

Answer 10: Yes. Construction of local access roads on the ADHS is specifically made eligible under 23 U.S.C. 133(b)(1) as amended by MAP-21. Generally these roads were not on Federal-aid highways. Therefore, the general location requirement in 23 U.S.C 133(c) does not apply to local access roads to the ADHS. Sec. 1108(a)(4).

Question 11: Are there limitations on the amount of STP or ADHS funds that can be used for local access roads?

Answer 11: MAP-21 did not set limits on the amount of STP funds that could be used for local access road projects. However, the Appalachian Regional Commission (ARC) may set limits on the amount of ADHS funds that can be spent on local access roads under its authority from 40 U.S.C. 14501. The ARC last updated these limits on August 6, 2012.

Question 12: MAP-21 requires States to develop plans by July 6, 2013 for completion of the ADHS in their State. How will this provision be implemented?

Answer 12: The ARC will be managing this effort and will provide separate guidance to the States.

Question 13: Will the FHWA division offices be required to provide full oversight to the ADHS under MAP-21, regardless of funding?

Answer 13: Yes, the FHWA division offices are to continue their full oversight of the ADHS program, regardless of the category of funds being used, as provided in 23 U.S.C. 106.

Page posted on December 27, 2012.
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