Federal-aid Program Administration

U.S. Department of Transportation Federal Highway Administration

MEMORANDUM

Under the provisions of Section 104(b)(1)(A) of Title 23, as amended by Section 1103(b) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, Public Law 109-59), $30 million is authorized for the Alaska Highway for each of fiscal years 2005 through 2009. Under the provisions of Section 1102(f) of SAFETEA-LU, Redistribution of Certain Authorized Funds, only the amount for which obligation authority is provided will be made available. The remaining funds will not be available for the Alaska Highway , but instead are distributed to the States in accordance with Section 1102(f).

For FY 2005, with an obligation limitation of 85.5 percent, only $25,650,000 of the $30,000,000 authorization is available. Previously in FY 2005, we allocated $15,479,168 to Alaska under the various extensions to TEA-21. With this memorandum, we are allocating the balance of these FY 2005 funds for the Alaska Highway . Therefore, we are allocating $10,170,832 of program code HK10 funds and an equal amount of obligation authority (Delphi Accounting String 15X0RK1050-0000-050HK10500) to Alaska.

For FY 2006, the $30,000,000 authorization was reduced to $29,700,000 due to the across-the-board rescission in Section 3801 of the FY 2006 Department of Defense Appropriations Act (Public Law 109-148). In addition, under the provisions of Section 1102(f), with an obligation limitation of 87.0 percent, only $25,839,000 of the $29,700,000 authorization is available. Therefore, with this memorandum, we are also allocating $25,839,000 of program code LK10 funds and an equal amount of obligation authority (Delphi Accounting String 15X0RK1050-0000-050LK10500) to Alaska.

Under the provisions of Section 218(a) of Title 23, these funds and obligation authority are only available for reconstruction of the Alaska Highway from the Alaskan border to Haines Junction in Canada and the Haines Cutoff Highway from Haines Junction in Canada to Haines. The Federal share for these funds is 100 percent, and the funds are available until expended.

Section 218 of Title 23 was amended by Section 4409 of SAFETEA-LU. The current version of Section 218 is attached to this memorandum. Under the provisions of Section 218(a), in addition to these SAFETEA-LU funds authorized specifically for the Alaska Highway, Alaska may continue to utilize their regular Federal-aid highway funds apportioned to them under Title 23 for the Alaska Highway, as described above, with a Federal share of 100 percent. In addition, these regular apportioned funds used for this purpose are not subject to any obligation limitation.

Under Section 218(a), Alaska may also use their regular Federal-aid highway funds apportioned to them under Title 23 for the Alaska Marine Highway System (AMHS), with a Federal share of 100 percent, and without subjection to any obligation limitation. Section 218(c), as added by Section 4409 of SAFETEA-LU, specifies that the AMHS, for purposes of Section 218, includes "all existing or planned transportation facilities and equipment in Alaska, including the lease, purchase, or construction of vessels, terminals, docks, floats, ramps, staging areas, parking lots, bridges and approaches thereto, and necessary roads." This is limited to components that are related to the ferry system in Alaska, not all transportation facilities and equipment in Alaska. Otherwise, the continued inclusion of the Alaska Highway in this provision in Section 218(a) would be superfluous. Our Office of Chief Counsel has concurred in this interpretation.

By copy of this memorandum, the Finance Division of the Office of the Chief Financial Officer is requested to process these allocations.

If there are any questions, please contact Larry Beidel, of my staff, at (202) 366-4653.

Attachment

23 U.S.C. 218

Sec. 218. - Alaska Highway

1. Recognizing the benefits that will accrue to the State of Alaska and to the United States from the reconstruction of the Alaska Highway from the Alaskan border to Haines Junction in Canada and the Haines Cutoff Highway from Haines Junction in Canada to Haines, the Secretary is authorized out of the funds appropriated for the purpose of this section to provide for necessary reconstruction of such highway. Such appropriations shall remain available until expended. Notwithstanding any other provision of law, in addition to such funds, upon agreement with the State of Alaska, the Secretary is authorized to expend on such highway or the Alaska Marine Highway System any Federal-aid highway funds apportioned to the State of Alaska under this title at a Federal share of 100 per centum. Notwithstanding any other provision of law, any obligation limitation enacted for fiscal year 1983 or for any other fiscal year thereafter, including any portion of any other fiscal year thereafter, shall not apply to projects authorized by the preceding sentence. No expenditures shall be made for the construction of the portion of such highways that are in Canada until an agreement has been reached by the Government of Canada and the Government of the United States which shall provide, in part, that the Canadian Government -
   1. will provide, without participation of funds authorized under this title, all necessary right-of-way for the reconstruction of such highways;
   2. will not impose any highway toll, or permit any such toll to be charged for the use of such highways by vehicles or persons;
   3. will not levy or assess, directly or indirectly, any fee, tax, or other charge for the use of such highways by vehicles or persons from the United States that does not apply equally to vehicles or persons of Canada;
   4. will continue to grant reciprocal recognition of vehicle registration and drivers' licenses in accordance with agreements between the United States and Canada; and
   5. will maintain such highways after their completion in proper condition adequately to serve the needs of present and future traffic.
2. The survey and construction work undertaken in Canada pursuant to this section shall be under the general supervision of the Secretary.
3. For purposes of this section, the term 'Alaska Marine Highway System' includes all existing or planned transportation facilities and equipment in Alaska, including the lease, purchase, or construction of vessels, terminals, docks, floats, ramps, staging areas, parking lots, bridges and approaches thereto, and necessary roads.