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DOT LogoMemorandum
U.S. Department of Transportation
Federal Highway Administration

ACTION: Amended Allocation of FY 1998 Funds
Puerto Rico Highway Program

August 11, 1998

Chief, Federal-Aid and Design Division


Mr. Jose M. Sepulveda
Division Administrator
Hato Rey, Puerto Rico

Mr. Ptak’s June 23, 1998, memorandum allocated to Puerto Rico FY 1998 funding for their highway program authorized by Section 1214(r) of the Transportation Equity Act for the 21st Century (TEA-21). As a result of amendments to TEA-21 included in the recently enacted IRS Restructuring and Reform Act, an adjustment to the Section 1214(r) funding is necessary, the effect of which is to reduce the amount of FY 1998 funding. This memorandum adjusts the funding and provides further implementing guidance on obligation authority and other funding matters in Puerto Rico.


    Amended Section 1214(r)(3) results in the minimum drinking age penalty (23 U.S.C. 158) being applied to the Puerto Rico highway program funds. Based on an authorization level of $110,000,000, this penalty has been determined to amount to $5,723,812. Accordingly, the penalty amount of $5,723,812 is subtracted from the authorization amount of $110,000,000 leaving a balance of $104,276,188.

    This balance of $104,276,188 is subject to the provisions of Section 1102(f) concerning the redistribution of certain allocated funds under which only the amount for which obligation authority is provided will be made available to Puerto Rico. In the June 23, 1998, memorandum, the Section 1102(f) calculation was based on an obligation limit of 90 percent. With the amendments to TEA-21, the obligation limitation has been reduced from 90 percent to 89.1 percent. Thus, the Section 1102(f) calculation is determined by multiplying $104,276,188 by 89.1 percent resulting in a net amount of $92,910,083 being available to Puerto Rico under Section 1214(r).

    The June 23, 1998, memorandum allocated $99,000,000 in appropriate code QP1 funding along with an equal amount of obligation authority. With this memorandum we are withdrawing $6,089,917 in appropriation code QP1 funds along with the accompanying obligation authority. Thus, the net allocation of appropriation code QP1 funds to Puerto Rico for FY 1998 is $92,910,083 with an equal amount of obligation authority available.


    It is noted the obligation limitation of $92,910,083 includes the amount of obligation authority already advanced for FY 1998 under the Surface Transportation Extension Act of 1998 (STEA). The $92,910,083 in obligation authority may be used to obligate appropriation code QP1 funds or any unobligated Federal-aid highway funding from FY 1997 or prior fiscal years. The unobligated balance of appropriation code QP1 funds, along with any unused balance of obligation authority, will be withdrawn September 15, 1998. The unobligated balance of appropriation code QP1 funds, with accompanying obligation authority, will be returned the following fiscal year.


    Funding for FY 1998 made available by the STEA will be withdrawn from Puerto Rico. Any of this funding previously obligated should be replaced with appropriation code QP1 funds.

    The appropriation code QP1 funds are to be used in accordance with Title 23 procedures. Federal share and period of availability of the funds are governed by Sections 120 and 118 of Title 23 respectively.

Questions concerning this memorandum should be directed to Jim Overton of my staff at 202-366-4653.

Signed by
Dwight A. Horne
Federal Highway Administration

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