Attached is a table of the selected projects for FY 1999 PLH discretionary funding. During the process of selecting projects for PLH funding, we reviewed 245 candidate projects received from 47 States, including Puerto Rico and the District of Columbia, requesting a total of $529 million. Since less than $100 million was available for allocation, we could not fund all the project requests.

Allocations are made to the selected projects as shown in the attached table. We are also providing an equal amount of obligation limitation with each allocation. The Federal share for these funds is 100 percent.

The PLH funds allocated for projects administered by a State transportation agency will be obligated by the appropriate Federal-aid division using appropriation code 413.

The PLH funds allocated for projects administered by a Federal Lands Highway Division (FLHD) will be obligated by the appropriate FLHD using appropriation code 414. For those projects to be administered by Federal agencies such as the National Park Service, the Bureau of Land Management, etc., transfer of funds to such agencies will be accomplished by the Federal Lands Highway Program Administrator. Appropriation code 414 will be used for these PLH funds to be transferred.

As you are aware, under ISTEA Section 1015, allocations of PLH discretionary funds were included in the calculation of the Hold Harmless and 90 Percent of Payment equity adjustments. The Transportation Equity Act for the 21st Century (TEA-21) includes only one equity adjustment, the Minimum Guarantee under Section 1104, which does not include PLH funds in the calculation. As a result, a State's Minimum Guarantee funding will not be affected by receipt of any PLH discretionary funds under TEA-21.

The allocation of PLH funds and the accompanying obligation limitation are available only for the projects selected for funding. Any transfers from one project to another must receive prior Headquarters approval. If additional funds are needed to accomplish the scope of work proposed, the funds should be secured from other sources. If other Federal-aid funds are used to supplement the PLH funds allocated, obligation of other Federal-aid funds is to be applied to the limitation distributed to the State.

We expect that obligation of these funds will be accomplished in a timely manner. Any unobligated funds will be withdrawn for the August redistribution of obligation limitation.