DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
RIGHT-OF-WAY REVOLVING FUND

BACKGROUND

The Federal-Aid Highway Act of 1968 authorized the establishment of a Right-of Way fund. This fund is used to make cash advances to States for the purchase of right-of-way parcels in advance of highway construction to reduce the impact of land price inflation on construction costs.

This program was terminated by TEA-21 but will continue to be shown for reporting purposes, while loan balances remain outstanding. The purchase of right-of-way is an eligible expense of the Federal-aid program and therefore a separate program is unnecessary. Funds shall remain available to the State for use on the projects for which the funds were advanced for a period of 20 years from the date on which the funds were advanced. The cumulative balance of loans outstanding at the end of FY 2006 was $67 million. No further obligations are estimated in FY 2007, 2008, or 2009.

Section 1915 of SAFETEA-LU (P.L.109-059) authorized loan forgiveness on California project Q-DPM-0013 (001) in the amount of $11 million. The California loan forgiveness was executed in FY 2006 and is reflected in the associated Right-of-Way program, financing and liquidating accounts. Repayments are returned to the Highway Trust Fund.

BUDGETARY RESOURCES

No new budgetary resources are requested in FY 2009.

DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
RIGHT-OF-WAY (ROW) REVOLVING FUND
PROGRAM ACCOUNT - DIRECT LOAN

PROGRAM AND FINANCING SCHEDULE

In millions of dollars

Identification code: 69-8309-0-1-401	2006 Actual	2007 Estimate	2008 Estimate
Obligations by program activity:
00.01 Subsidy for modification of direct loans	11	……	……
Budgetary resources available for obligation:
22.00 New financing authority (gross)	11	……	……
23.95 Total new obligations	(11)	……	……
24.40 Unobligated balance carried forward, end of year	0	0	0
New financing authority (gross), detail:
Appropriations
Mandatory:
60.26 Appropriation (trust fund)	11	……	……
Change in obligated balances
73.10 Total new obligations	11	……	……
73.20 Total financing disbursements (gross)	(11)	……	……
74.40 Obligated balance, end of year	0	0	0
Outlays (gross) detail:
86.97 Outlays from new mandatory authority	11	0	0
Net financing authority and financing disbursements:
89.00 Financing authority	11	……	……
90.00 Financing disbursements	11	……	……

DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
RIGHT-OF-WAY (ROW) REVOLVING FUND
FINANCING ACCOUNT - DIRECT LOAN

PROGRAM AND FINANCING SCHEDULE
In millions of dollars

Identification code: 69-4270-0-3-401	2006 Actual	2007 Estimate	2008 Estimate
Obligations by program activity:
00.03 Loan subsidy payment for forgiven liquidating account loan	11	……	……
Budgetary resources available for obligation:
22.00 New financing authority (gross)	11	……	……
23.95 Total new obligations	(11)	……	……
New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)	11	……	……
Change in obligated balances:
73.10 Total new obligations	11	……	……
73.20 Total financing disbursements (gross) Offsets	(11)	……	……
88.00 Offseting collections (cash) from:
Federal sources: ROW program account	11	……	……
89.00 Financing Authority	.......	.......	.......
90.00 Financing disbursements	.......	……	……

DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
RIGHT-OF-WAY (ROW) REVOLVING FUND
LIQUIDATING ACCOUNT - DIRECT LOAN

PROGRAM AND FINANCING SCHEDULE
In millions of dollars

Identification code: 69-8402-0-8-401	2007 Actual	2008 Estimate	2009 Estimate
Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year	15	8	……
22.40 Portion returned to trust fund from liquidating account	-7	……	.......
23.90 Total budgetary resources available for obligation	8	8	……
23.98 Unobligated balance expiring or withdrawn	……	-8
24.40 Unobligated balance carried forward, end of year	8	……	……
24.41 Special and trust fund receipts returned to Schedule N	……	8
New Budget Authority (gross), detail
Mandatory:
Change in obligated balances:
72.40 Obligated balance, start of year	6	6	6
74.40 Obligated balance, end of year	6	6	6
Net financing authority and financing disbursements:
89.00 Financing authority	.......	……	……
90.00 Financing disbursements	……	……	……
Cumulative balance of direct loans outstanding:
12.10 Outstanding, start of year	67	67	67
12.64 Write-offs for default: Loan forgiveness (P.L. 109-59)	……	……	……
12.90 Outstanding, end of year	67	67	67

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DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
STATE INFRASTRUCTURE BANKS

BACKGROUND

In FY 1997, FHWA received an appropriation of $150 million from the General Fund for the State Infrastructure Banks (SIBs) program. This schedule shows the obligation and outlay of that funding. In FY 1999 and 2002, $6.5 million and $5.75 million of the funds provided for the SIBs program were rescinded, respectively.

SIBs have provided critical funds for more than 351 projects. States have entered into agreements with a dollar value of over $4.5 billion as of September 30, 2003. All of the funds have been provided to the States to capitalize the infrastructure banks. Because the funding was provided for grants, not loans, FHWA will not receive reimbursements of amounts expended for the SIBs program. .

BUDGETARY RESOURCES

No new budgetary resources are requested in FY 2009.

DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
STATE INFRASTRUCTURE BANKS
DIRECT LOAN FINANCING ACCOUNT

PROGRAM AND FINANCING SCHEDULE
In millions of dollars

Identification code: 69-0549-0-1-401		2007 Actual	2008 Estimate	2009 Estimate
Change in obligated balance
72.40	Obligated Balance, start of year	3	3	1
73.20	Total Outlays (gross)	……	-2	-1
74.40	Obligated balance, end of year	3	1	……
Outlays (gross), detail:
86.93	Outlays from discretionary balances	……	2	1
89.00	Financing authority	……	……	……
90.00	Financing disbursements	……	2	1

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DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
HIGHWAY RELATED SAFETY GRANTS

BACKGROUND

In FY 1997, this account was transferred from the Federal Highway Administration to the National Highway Traffic Safety Administration. No obligations or outlays are anticipated in this account during FY 2008 or 2009.

BUDGETARY RECOURCES

No new budgetary resources are requested in FY 2009.

DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
HIGHWAY RELATED SAFETY GRANTS

PROGRAM AND FINANCING SCHEDULE
In millions of dollars

Identification code: 69-8019-0-1-401		2007 Actual	2008 Estimate	2009 Estimate
Change in obligated balances:
72.40	Obligated balance, start of year	1	1	1
74.40	Obligated balance, end of year	1	1	1
89.00	Budget authority	………	………	.........
90.00	Outlays	………	………	.........

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PERFORMANCE OVERVIEW

Annual Performance Results and Targets

The Federal Highway Administration (FHWA) integrates performance results into its budget requests to demonstrate alignment with the Department of Transportation (DOT) Strategic Plan. The FHWA tracks the following DOT level performance measures to demonstrate program results:

Strategic Objective: Safety

Passenger vehicle occupant highway fatalities per 100 million VMT. Shared measure with NHTSA	2003	2004	2005	2006	2007	2008	2009
Target			1.15	1.12	1.10	1.06	1.02
Actual	1.21	1.17	1.15	1.10	+

+ To be released by NHTSA 12/08.

Non-occupant highway fatalities per 100 million VMT. Shared measure with NHTSA	2003	2004	2005	2006	2007	2008	2009
Target				0.16	0.15	0.19	0.19
Actual	0.19	0.19	0.20	0.19	+

+ To be released by NHTSA 12/08.

Motorcycle rider highway fatalities per 100,000 motorcycle registrations. Shared measure with NHTSA.	2005	2006	2007	2008	2009
Target		75	76	76	77
Actual	73.5	71.9	+

+ To be released by NHTSA 12/08.

Large truck and bus fatalities per 100 million VMT. Shared measure with FMCSA	2005	2006	2007	2008	2009
Target		0.179	0.175	0.171	0.167
Actual	0.184	0.176	+

+ To be released by FMCSA in 2008.

Strategic Objective: Reduced Congestion

Percent of total annual urban-area travel time occurring in congested conditions	2002	2003	2004	2005	2006	2007	2008	2009
Target	30.9	31.6	32.3	33.0	33.7	32.5	32.3	31.9
Actual	30.7 (r)	31.0 (r)	31.6 (r)	31.8 (r)	31.6	31.8 #

(r) Revised; # Projection

Percent of U.S. population with access to 511 travel telephone service.	2003	2004	2005	2006	2007	2008	2009
Target	30	35	40	50	65	65	85
Actual	14	17	25	28	48

Percent of top 40 metropolitan areas with full service patrols.	2007	2008	2009
Target	N/T	100	100
Actual	70

Percent of top 40 metropolitan areas with quick clearance policies.	2007	2008	2009
Target	N/T	90	90
Actual	80

Percent of top 40 metropolitan areas with quick clearance laws.	2007	2008	2009
Target	N/T	90	90.2
Actual	75

Percent of travel on the National Highway System (NHS) meeting pavement performance standards for good ride.	2002	2003	2004	2005	2006	2007	2008	2009
Target	N/A		N/A	53	54	56	56	57
Actual	49(r)	50(r)	52(r)	52	54	57

(r) Revised

Percent of deck area on NHS bridges rated deficient, adjusted for average daily traffic.	2002	2003	2004	2005	2006	2007	2008	2009
Target	28.6	27.5	26.4	25.3	24.2	23.1	22.0	20.9
Actual	29.9	29.8	29.8	29.9	29.2	29.7

Number of States enacting Public/Private Partnership (PPP) laws where PPP authority is lacking, cumulative.	2006	2007	2008	2009
Target	N/T	2	5	10
Actual	N/R	2

Strategic Objective: Global Connectivity

Number of freight corridors with an annual decrease in the average buffer index rating greater than the national average.	2006	2007	2008	2009
Target	N/T	5	25	25
Actual	3	5

Number of NHS Border Crossings with an Increase in reliability (Inbound).	2007	2008	2009
Target	5	TBD	TBD
Actual	1

Number of NHS Border Crossings with an Increase in reliability (Outbound).	2007	2008	2009
Target	5	TBD	TBD
Actual	4

Number of technology/information agreements that promote the U.S. highway transportation industry (Baselines and targets were determined in FY 2007).	2007	2008	2009
Target	1	3	3
Actual	4

Strategic Objective: Environmental Stewardship

Number of exemplary ecosystem initiatives.	2002	2003	2004	2005	2006	2007
Target	N/A	8	10	17	24	50
Actual	5	8	15	23	43	50

Number of exemplary human environment initiatives.	2007	2008	2009
Target	5	10	15
Actual	8

Number of areas in conformity lapse.	2002	2003	2004	2005	2006	2007	2008	2009
Target	6.0	6.0	6.0	6.0	6.0	6.0	6.0	6.0
Actual	6.0	6.0 (r)	6.3 (r)	5.8(r)	1.3	0.0

(r) Revised

Median time in months required for all Federal-aid Highway projects to have a completed Environmental Impact Statement (EIS). — Supplemental to DOT-wide Measure.	2001	2002	2003	2004	2005	2006	2007	2008	2009
Target	N/A	N/A	51	48	45	40	36	36	36
Actual	54	80	68	54	60(r)	61(r)	68

(r) Revised;

Median time in months required for all Federal-aid Highway projects to have a completed Environmental Assessment (EA). Supplemental to DOT-wide Measure.	2002	2003	2004	2005	2006	2007	2008	2009
Target	N/A	17	16	15	14	12	12	12
Actual		26	25	25(r)	34	20

(r) Revised;

Strategic Objective: Organizational Excellence

Percent of major Federally funded transportation infrastructure projects with less than 2% annual growth in the project completion milestone as reported in the finance plan. Shared measure with FTA. Actual results do not reflect results for FTA projects.	2004	2005	2006	2007	2008	2009
Target	N/T	N/T	N/T	N/T	90	90
Actual	50	83	86	85

Percent of finance plan cost estimates for major Federally funded transportation infrastructure projects with less than 2% annual growth Shared measure with FTA. Actual results do not reflect results for FTA projects.	2004	2005	2006	2007	2008	2009
Target	N/T	N/T	N/T	N/T	90	90
Actual	75	83	86	85

Detailed performance budget information can be found in the following section of this budget submission.

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PROGRAM ASSESSMENT RATING TOOL (PART) ASSESSMENT

PART was developed by the Office of Management and Budget to provide a standardized way to assess the effectiveness of the Federal Government's portfolio of programs. The structured framework of PART provides a means through which programs can assess their activities differently than through traditional reviews. The following Federal Highway Administration programs have been assessed via the PART:

Program	PART Cycle	OMB Assessed Score
Highway Infrastructure Program	FY 2004	82
	FY 2005	70
	FY 2007	59
Federal Lands Highway Program	FY 2005	82
Research and Development	FY 2006	83
Emergency Relief	FY 2007	70
TIFIA (Credit Programs)	FY 2008	69

HIGHWAY INFRASTUCTURE PROGRAM ANALYSIS:
During 2007, OMB reviewed the program again and provided an updated rating of "adequate", compared to "moderately effective" in prior years. OMB identified several areas where further improvements could be made in the administration of the Federal-aid Highway program (see Recommendations #5 through #7 below).

OMB Recommendation #1: Propose budget and legislative changes to this program through the reauthorization of surface transportation legislation in 2004 that will allow the FHWA to more effectively and efficiently meet its performance goals.

Action Taken: Completed

OMB Recommendation #2: Prepare a plan for improving program and project oversight of States.

Action Taken: Completed

OMB Recommendation #3: Direct more resources to comprehensive evaluation activities; particularly at the State project level.

Action Taken: Completed

OMB Recommendation #4: Devise efficiency measures to show that program delivery is cost-effective.

Action Taken: Completed

OMB Recommendation #5 (NEW): Consider and propose modifications and performance-based improvements to the program design during the formulation of a reauthorization proposal in FY 2009.

Action Taken: (1) A small group has been convened to begin discussion on strategies for improving program management practices in the agency. We expect the guidance memorandum to be developed by mid-2008.

Action Taken: (2) We are collecting the results of the second round of program risk management in Divisions and Headquarters. The results will be analyzed and incorporated into a roll-up report. The report will be completed by February 2008.

OMB Recommendation #6 (NEW): Continue to improve program and project oversight of States.

• Develop internal guidance by mid-2008 to direct more attention and focus to improving program management practices in the agency.
• Complete second round of program risk assessments in Division and Headquarters offices by the end of 2007.

Action Taken: The Financial Integrity Review and Evaluation program will incorporate the FMFIA within the FHWA into a single agency-wide program that covers Federal-aid, Federal Lands, and the other remaining program offices. The Federal-aid Divisions are updating their risk management plans and are incorporating risk response strategies into their unit plans.

OMB Recommendation #7 (NEW): Continue pursuing financial management improvements in order to eliminate all material weaknesses in the FY 2009 financial audit.

Action Taken: The FHWA continues to improve financial management by strengthening internal controls to reduce the number of adjustments needed to correct errors. More transactions are being completed through the Budget Execution Model, which allow better control and greatly reduces the number of journal entries. Financial management has improved considerably during the past year that OMB has waived the requirement to prepare Highway Trust Fund consolidated statements beginning in FY 2008.

FEDERAL LANDS HIGHWAY PROGRAM ANALYSIS:
OMB rated the Federal Lands Highway (FLH) Program as a "moderately effective" program and made recommendations for improvements in external program reviews, which led to the following recommendations.

OMB Recommendation #1: Schedule comprehensive evaluations of program effectiveness.

Action Taken: Completed: Recommendations from plan continuously being implemented.

OMB Recommendation #2: Developing revised performance measures in coordination with the National Park Service and implementing a program delivery plan that more clearly links activities with goals and performance.

Action Taken: FLH, working with the National Park Service (NPS), agreed upon performance measures to implement program delivery plan and more clearly link goals and performance. The final draft is at NPS for their review and signature. We anticipate an endorsement by the NPS in January 2008.

RESEARCH AND DEVELOPMENT (INCLUDES ITS) PROGRAM ANALYSIS:
OMB completed a PART assessment of the FHWA's Research and Intelligent Transportation System (ITS) programs, which led to the following recommendations:

OMB Recommendation #1: Recommend that the FHWA Research and Technology (R&T) Program specifically address how the FHWA is implementing the President's investment criteria for R&D in the DOT budget and performance report. This recommendation would be in alignment with OMB's earlier recommendations to the research community at large.

Action Taken: Completed. Annual event.

OMB Recommendation #2: Recommend that the FHWA R&T Program include a numeric chart showing projects completed by goal in the FHWA RD&T annual performance report. Implementing this recommendation would strengthen the linkage between the research roadmaps, the individual research projects and both the FHWA and DOT performance goals. This recommendation would address one of the weaknesses in the documentation and goal alignment of the R&T program.

Action Taken: Completed. Annual event.

OMB Recommendation #3: Recommend that the FHWA R&T program require the recipients of earmarked funds to demonstrate how their projects and their results specifically support the FHWA/DOT goal(s). While there is no guarantee that implementing this recommendation would necessarily result in OMB's approval of the earmarking question, it would demonstrate that the FHWA is doing everything possible to influence the appropriate use of Research funds.

Action Taken: Completed.

OMB Recommendation #4: Reviewing the project selection process and determining whether projects funded are consistent with the priorities of the new 2007-2011 USDOT Strategic Plan.

Action Taken: Action taken but not completed. Functional area research & technology multi-year plans were developed. The multi-year plans identify the research projects selected to be undertaken and funded by the agency. The multi-year plans and projects are mission driven and directly tied to FHWA's Strategic Implementation Plan and the USDOT Strategic Plan. The agency continues to reach out to our stakeholders to ensure that the programs and projects undertaken are coordinated and future collaborative research and technology opportunities are identified. In addition, the agency supports and contributes to the Research and Innovative Technology Administration RD&T Planning Team and Council, which coordinate the Departments RD&T programs and projects.

OMB Recommendation #5: Making program improvements consistent with the recommendations of recently completed lab assessments.

Action Taken: Completed. Over the past four years, laboratory assessments were completed for each lab at the Turner-Fairbank Highway Research Center. The recommendations for each lab assessment were addressed for a majority of the labs and the remaining recommendations should be implemented by the end of the FY 2008. A few of the recommendations that are more structural in nature were incorporated in the recently developed Capital Improvement Plan for the facility.

EMERGENCY RELIEF PROGRAM ANALYSIS:
OMB completed its PART assessment of the FHWA's Emergency Relief program during 2005. OMB has made the following recommendations concerning program improvements.

OMB Recommendation #1: Incorporating the program within the FHWA's Financial Integrity Review and Evaluation procedures.

Action Taken: Completed.

OMB Recommendation #2: Establishing in-house guidance and criteria that will focus on project approval performance.

Action Taken: Completed. October 2006. Continuous Event. PART measures are included in the Unit Plans of the Division Offices.

Action Taken: Completed. April 2006. Continuous Event. Incorporated performance metrics into disaster acknowledgement letter that designates ER event. Letter will be sent to both Division and State Office whenever an event occurs.

OMB Recommendation #3: Establishing in-house guidance and criteria to ensure all the FHWA state division offices approve projects according to the same standards.

Action Taken: Completed. ER manual developed that provides standard guidance.

Action Taken: An internal employee team was created earlier this year to conduct a program review, which is expected to be completed early next year. The report will include lessons learned from previous disasters and a set of review recommendations that will result in additional updates to the ER manual to improve standardization of project management in each Division office. Scheduled:Spring 2008.

TIFIA PROGRAM ANALYSIS:
OMB rated the Transportation Infrastructure Finance and Innovation Act (TIFIA) credit program as "adequate" in meeting its goals. The PART analysis indicated that the TIFIA program needs to set more ambitious goals, achieve better results, improve accountability, and strengthen its management practices. The following are recommended actions:

OMB recommendation #1: Develop loan approval criteria to ensure that loan applicants take full advantage of private sector financing opportunities.

Action Taken: Action taken but not completed. Plans are to address this recommendation in the proposed TIFIA rulemaking, now in draft form to be reviewed by OMB and released later this year.
Completion Date: September 30, 2008

OMB recommendation #2: Implement a strategy for encouraging borrowers to seek and private lenders to offer loans guaranteed by the TIFIA program.

Action Taken: Action taken, but not completed.A TIFIA Credit Program is now required to document why a specific type of credit assistance is requested. If a direct loan or line of credit is requested, the applicant is asked to further specify the reasons for the proposed financial structure of the project where the credit assistance is in the form of a direct loan or line of credit instead of a loan guarantee. This new requirement was implemented in January 2007 with the issuance of the updated TIFIA Program Guide. In addition, the TIFIA Joint Program Office (JPO) plans to engage an outside consultant to evaluate the efficiency and cost-effectiveness of each TIFIA credit instrument in meeting market gaps for large transportation projects. As part of this study, the consultant will research what incentives, consistent with capital market practices, can be implemented to encourage borrowers to seek and private lenders to offer loans guaranteed by the TIFIA program. This consultant study will include an outreach effort to investment banks and other lenders to assess the market potential for TIFIA loan guarantees.

OMB recommendation #3: Develop loan approval criteria ensuring that the TIFIA program targets projects that were not able to access capital through other means.

Actions taken: Plans are to address this recommendation in the proposed TIFIA rulemaking, now in draft form to be reviewed by OMB and released later this year. Completion Date: September 30, 2008

Administrative Provisions—Federal Highway Administration

[(including rescissions)]

1. [Sec. 120. (a) For fiscal year 2008, the Secretary of Transportation shall—
   1. (1) not distribute from the obligation limitation for Federal-aid highways amounts authorized for administrative expenses and programs by section 104(a) of title 23, United States Code; programs funded from the administrative takedown authorized by section 104(a)(1) of title 23, United States Code (as in effect on the date before the date of enactment of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users); the highway use tax evasion program; the programs, projects and activities funded by the set aside authorized by section 129 of this Act; the Bureau of Transportation Statistics; and additional obligation limitation provided in this Act for the purpose of section 144(e) of title 23, United States Code;
   2. (2) not distribute an amount from the obligation limitation for Federal-aid highways that is equal to the unobligated balance of amounts made available from the Highway Trust Fund (other than the Mass Transit Account) for Federal-aid highways and highway safety programs for previous fiscal years the funds for which are allocated by the Secretary;
   3. (3) determine the ratio that—
      1. (A) the obligation limitation for Federal-aid highways, less the aggregate of amounts not distributed under paragraphs (1) and (2), bears to
      2. (B) the total of the sums authorized to be appropriated for Federal-aid highways and highway safety construction programs (other than sums authorized to be appropriated for provisions of law described in paragraphs (1) through (9) of subsection (b) and sums authorized to be appropriated for section 105 of title 23, United States Code, equal to the amount referred to in subsection (b)(10) for such fiscal year), less the aggregate of the amounts not distributed under paragraphs (1) and (2) of this subsection;
   4. (4)
      1. (A) distribute the obligation limitation for Federal-aid highways, less the aggregate amounts not distributed under paragraphs (1) and (2), for sections 1301, 1302, and 1934 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users; sections 117 (but individually for each project numbered 1 through 3676 listed in the table contained in section 1702 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users) and 144(g) of title 23, United States Code; and section 14501 of title 40, United States Code, so that the amount of obligation authority available for each of such sections is equal to the amount determined by multiplying the ratio determined under paragraph (3) by the sums authorized to be appropriated for that section for the fiscal year; and
      2. (B) distribute $2,000,000,000 for section 105 of title 23, United States Code;
   5. (5) distribute the obligation limitation provided for Federal-aid highways, less the aggregate amounts not distributed under paragraphs (1) and (2) and amounts distributed under paragraph (4), for each of the programs that are allocated by the Secretary under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users and title 23, United States Code (other than to programs to which paragraphs (1) and (4) apply), by multiplying the ratio determined under paragraph (3) by the amounts authorized to be appropriated for each such program for such fiscal year; and
   6. (6) distribute the obligation limitation provided for Federal-aid highways, less the aggregate amounts not distributed under paragraphs (1) and (2) and amounts distributed under paragraphs (4) and (5), for Federal-aid highways and highway safety construction programs (other than the amounts apportioned for the equity bonus program, but only to the extent that the amounts apportioned for the equity bonus program for the fiscal year are greater than $2,639,000,000, and the Appalachian development highway system program) that are apportioned by the Secretary under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users and title 23, United States Code, in the ratio that—
      1. (A) amounts authorized to be appropriated for such programs that are apportioned to each State for such fiscal year, bear to
      2. (B) the total of the amounts authorized to be appropriated for such programs that are apportioned to all States for such fiscal year.
         1. (b) Exceptions From Obligation Limitation.—The obligation limitation for Federal-aid highways shall not apply to obligations: (1) under section 125 of title 23, United States Code; (2) under section 147 of the Surface Transportation Assistance Act of 1978; (3) under section 9 of the Federal-Aid Highway Act of 1981; (4) under subsections (b) and (j) of section 131 of the Surface Transportation Assistance Act of 1982; (5) under subsections (b) and (c) of section 149 of the Surface Transportation and Uniform Relocation Assistance Act of 1987; (6) under sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991; (7) under section 157 of title 23, United States Code, as in effect on the day before the date of the enactment of the Transportation Equity Act for the 21st Century; (8) under section 105 of title 23, United States Code, 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) for 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) under section 105 of title 23, United States Code, but only in an amount equal to $639,000,000 for each of fiscal years 2005 through 2008; and (11) under section 1603 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, 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.
         2. (c) Redistribution of Unused Obligation Authority.—Notwithstanding subsection (a), the Secretary shall, after August 1 of such fiscal year, revise a distribution of the obligation limitation made available under subsection (a) if the amount distributed cannot be obligated during that fiscal year and redistribute sufficient amounts to those States able to obligate amounts in addition to those previously distributed during that fiscal year, giving priority to those States having large unobligated balances of funds apportioned under sections 104 and 144 of title 23, United States Code.
         3. (d) Applicability of Obligation Limitations to Transportation Research Programs.—The obligation limitation shall apply to transportation research programs carried out under chapter 5 of title 23, United States Code, and title V (research title) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, except that obligation authority made available for such programs under such limitation shall remain available for a period of 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.
         4. (e) Redistribution of Certain Authorized Funds.—
            1. (1) In general.—Not later than 30 days after the date of the distribution of obligation limitation under subsection (a), the Secretary shall distribute to the States any funds that—
               1. (A) are authorized to be appropriated for such fiscal year for Federal-aid highways programs; and
               2. (B) the Secretary determines will not be allocated to the States, and will not be available for obligation, in such fiscal year due to the imposition of any obligation limitation for such fiscal year.
            2. (2) Ratio.—Funds shall be distributed under paragraph (1) in the same ratio as the distribution of obligation authority under subsection (a)(6).
            3. (3) Availability.—Funds distributed under paragraph (1) shall be available for any purposes described in section 133(b) of title 23, United States Code.
         5. (f) Special Limitation Characteristics.—Obligation limitation distributed for a fiscal year under subsection (a)(4) for the provision specified in subsection (a)(4) shall—
            1. (1) remain available until used for obligation of funds for that provision; and
            2. (2) 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.
         6. (g) High Priority Project Flexibility.—
            1. (1) In general.—Subject to paragraph (2), obligation authority distributed for such fiscal year under subsection (a)(4) for each project numbered 1 through 3676 listed in the table contained in section 1702 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users may be obligated for any other project in such section in the same State.
            2. (2) Restoration.—Obligation authority used as described in paragraph (1) shall be restored to the original purpose on the date on which obligation authority is distributed under this section for the next fiscal year following obligation under paragraph (1).
         7. (h) Limitation on Statutory Construction.—Nothing in this section shall be construed to limit the distribution of obligation authority under subsection (a)(4)(A) for each of the individual projects numbered greater than 3676 listed in the table contained in section 1702 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users.]
2. Sec. [121] 120. Notwithstanding 31 U.S.C. 3302, funds received by the Bureau of Transportation Statistics from the sale of data products, for necessary expenses incurred pursuant to 49 U.S.C. 111 may be credited to the Federal-aid highways account for the purpose of reimbursing the Bureau for such expenses: Provided, That such funds shall be subject to the obligation limitation for Federal-aid highways and highway safety construction.
3. [Sec. 122. Of the unobligated balances made available under sections 1103, 1104, 1105, 1106(a), 1106(b), 1107, and 1108 of Public Law 102-240, $1,292,287.73 are rescinded.]
4. [Sec. 123. Of the unobligated balances made available under section 1602 of Public Law 105-178, $5,987,345.70 are rescinded.]
5. [Sec. 124. Of the unobligated balances made available under section 188(a)(1) of title 23, United States Code, as in effect on the day before the date of enactment of Public Law 109-59, and under section 608(a)(1) of such title, $256,806,000 are rescinded.]
6. [Sec. 125. Of the amounts made available under section 104(a) of title 23, United States Code, $43,358,601 are rescinded.]
7. [Sec. 126. Of the unobligated balances of funds made available in fiscal year 2005 and prior fiscal years for the implementation or execution of programs for transportation research, training and education, and technology deployment including intelligent transportation systems, $239,801,603 are rescinded.]
8. [Sec. 127. Of the amounts made available for ``Highway Related Safety Grants'' by section 402 of title 23, United States Code, and administered by the Federal Highway Administration, $11,314 in unobligated balances are rescinded.]
9. [Sec. 128. Of the unobligated balances made available under Public Law 101-516, Public Law 102-143, Public Law 103-331, Public Law 106-346, Public Law 107-87, and Public Law 108-7, $4,753,687.26 are rescinded.]
10. [Sec. 129. Notwithstanding any other provision of law, the Secretary of Transportation shall set aside from revenue aligned budget authority authorized for fiscal year 2008 under section 110 of title 23, United States Code, such sums as may be necessary for the programs, projects and activities at the level of 98 percent of the corresponding amounts identified under this section in the explanatory statement accompanying this Act: Provided, That funds set aside by this section, at the request of a State, shall be transferred by the Secretary to another Federal agency: Provided further, That the Federal share payable on account of any program, project, or activity carried out with funds set aside by this section shall be 100 percent: Provided further, That the sums set aside by this section shall remain available until expended: Provided further, That all funds set aside by this section shall be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs set forth in this Act or any other Act: Provided further, That the obligation limitation made available for the programs, projects, and activities for which funds are set aside by this section shall remain available until used 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: Provided further, That amounts authorized for fiscal year 2008 for revenue aligned budget authority under such section in excess of the amount set aside by the first clause of this section are rescinded.]
11. [Sec. 130. Not less than 15 days prior to waiving, under her statutory authority, any Buy America requirement for Federal-aid highway projects, the Secretary of Transportation shall make an informal public notice and comment opportunity on the intent to issue such waiver and the reasons therefor: Provided, That the Secretary shall provide an annual report to the Appropriations Committees of the Congress on any waivers granted under the Buy America requirements.]
12. [Sec. 131. Notwithstanding any other provision of law, amounts authorized for fiscal year 2008 for programs under sections 1305 and 1502 of Public Law 109-59 and section 503(b) of title 23, United States Code, are rescinded.] (Department of Transportation Appropriations Act, 2008.)