FY 2016 Earmark Repurposing Process

This guidance defines the steps necessary to implement the statutory requirements to request earmarks to be repurposed. The address for FHWA’s Earmark Repurposing website is https://www.fhwa.dot.gov/cfo/earmarkrepurposing/. Questions should be submitted to the “Repurposed Earmarks” mailbox found in MS Outlook.

REPURPOSING PROCESS

1. If the funds are not allocated in the Fiscal Management Information System (FMIS), then a written request must first be made by the State to the FHWA division office. The FHWA division office will send the request to the appropriate FHWA program office to allocate the funds following the normal process. The request should note that the funds will be used for repurposing. This process may take 30 days which should be included in the timeline to meet the September 12, 2016 deadline.

   Once the funds are allocated in FMIS, the State may continue to step 2 of this process.

2. The State submits a request to repurpose eligible earmarks to the FHWA division office for concurrence utilizing the modified transfer form (FHWA-1575(ERP)). An example form is attached. The left side of the form contains the information on the earmark to be repurposed. The right side of the form provides the information needed to identify the new project(s) and the amount of funds for each project.

   The submission must contain sufficient information to demonstrate that each requested earmark is eligible for repurposing and each new project meets the requirements. Below are specific requirements for completing the modified transfer form:

   1. The left side of the modified transfer form must include information concerning the original earmark, including:

      1. The name as provided in the applicable legislation or report or as provided in FMIS Demo ID information;
      2. Identify the specific legislation or report if not identified in FMIS;
      3. Fiscal year of the original authorization of earmark (i.e., the fiscal year the legislation was passed);
      4. The program code of the funding to be repurposed;
      5. The Demo ID, if applicable; and
      6. The amount to be transferred from the earmark. This should be the full unobligated balance for the earmark.

   2. The right side of the modified transfer form must include the new project descriptions that comply with the statutory requirement, including:

      1. The item number from the applicable earmark on the left side of the form;
      2. The location and scope of work. It should demonstrate that the funding will be obligated for an eligible STBG (for States) or THP (for territories) project. It may be necessary to provide more detail in the comments box or an attachment;
      3. The amount of funds being repurposed for this project description. The total amount must match the unobligated balance of the earmark; and
      4. Repurposed program codes will be selected based on the original program code for the earmark funds (see Program Code Crosswalk on the repurposing website).

   3. Include the following in the “Comments” box of the modified transfer form:

      1. By left side line item number, describe how the project qualifies if 10 percent or more of the funds have been previously obligated.
      2. FHWA will presume that the maximum amount of applicable obligation limitation available for the funds will be repurposed and transferred with the funds. If it is desired to transfer less obligation limitation, record those requirements by right side line item number. Funds subject to limitation in excess of the amount available will require the use of annual formula obligation limitation at the time of obligation.

   4. The State must certify the earmark is eligible for repurposing and will be obligated for the identified purposes by marking the “YES” in the certification box. The State will sign the form and submit it to the FHWA division office. The State must submit a text readable (e.g., MS Excel) version of the form.

3. The Division Administrator (DA), or the Assistant Division Administrator (ADA) if designated, will either approve the transfer request form and submit it to the “FHWA Transfers” mailbox or reject the transfer request form and notify the State. The DA may delegate this authority only to the ADA. The DA’s approval represents the FHWA’s concurrence on eligibility of each earmark requested for repurposing and the requirements for project selection. The DA is responsible for confirming the following:

   1. The earmark is less than 10 percent obligated or all related projects that used the earmarked funds are final vouchered and closed.
   2. The new project is an eligible STBG or THP project and located within 50 miles of the earmark description in the same State.
   3. Obligation limitation available is properly identified, if applicable.

   The FHWA division office is also responsible for verifying the amount of funds available for repurposing. The total unobligated balance of applicable funds must be checked. The balance can be checked in FMIS on either the M58A or W10A report. The N25A is another resource but may show a “demo” project (a type of earmark in the system) with an unobligated balance of funds but those funds may have been used on another demo, causing a negative unobligated balance on the other demo. Only the net balance of the projects is available. If funds have not been allocated in FMIS, the repurposing request cannot be submitted.

4. OCFO will evaluate the request and verify the amount of funds and obligation limitation, if applicable, available to transfer with the applicable earmark, dependent on its original obligation limitation. The demo description will be revised in FMIS to reflect “Repurposing” and one or more program codes will be used to re-allocate the funds for the new description.

   A new demo number will be provided if the funds were not previously assigned a demo number. This will typically be necessary for discretionary programs such as the Ferry Boat Discretionary and Interstate Maintenance Discretionary programs.

   Repurpose requests received by the OCFO by the 5th of the month will be completed by the 25th of the same month. The OCFO will notify the FHWA division office official mailbox and submitter that the transfer is processed and the funds may be obligated to the projects.

QUARTERLY REPORTS

FHWA will facilitate the quarterly reporting required by the States in the Repurposing Provision. The FHWA OCFO will consolidate the list of repurposed projects received during the quarter. The list of projects will be provided to the FHWA division offices to be provided to the States by July 15 and October 15, 2016.

The State will provide a letter to the FHWA division office confirming the list of projects and certifying that the earmarks were eligible for repurposing and the projects identified are within 50 miles of the earmark location within the State and will be obligated for eligible purposes as required in the Repurposing Provision. The State will attach the list of projects to the letter. The FHWA division office will provide the State’s certification to the “Repurposed Earmarks” mailbox by July 31 and October 31, 2016.

OCFO will consolidate the reports for the required quarterly report to Congress.

OBLIGATIONS

The State will obligate the funds in FMIS for the eligible projects as identified on the modified transfer form. The State has until the end of FY 2019 to establish project agreements and make the obligations. The funds may not be used for other projects. The project title and description need to clearly reflect the purpose of the project as identified on the modified transfer form.

If transfers to Federal Lands or other agencies are desired, the repurpose transfer process should be followed first. Then, a request to transfer the repurposed funding to Federal Lands or another agency should be submitted following the normal process after the funds are repurposed.

When the funds are obligated on a project agreement in FMIS, the FHWA division office must ensure the project description clearly reflects the use of the funds for the new project and is consistent with the repurpose request on the modified transfer form. The project must use the associated demo ID.

If an obligated project is completed and excess funds are deobligated, the unobligated funds may be used only on another project from the same earmark identified on the modified transfer request form submitted before September 12, 2016.