1. What is the purpose of this Notice? This Notice transmits the distribution of certain authorized funds pursuant to Section 1102(f) of the Transportation Equity Act for the 21st Century (TEA-21), Public Law 105-178. The distribution of these funds is shown on the table.
   
   
2. What is the background information? Funds that are authorized to be appropriated for FY 2002 for Federal-aid highway programs, that will not be allocated to the States and will not be available for obligation in FY 2002 due to the imposition of any obligation limitation for such fiscal year, shall be distributed to the States. Such funds shall be distributed to the States in the same ratio as the distribution of obligation authority under Section 1102(c)(6) of TEA-21.
   
   
3. What is the availability of these funds?
   
   
   1. These funds are available for obligation until September 30, 2005. Any amounts not obligated by the State on or before that date shall lapse.
      
      
   2. The funds resulting from this distribution are subject to obligation controls in force at the time of obligation. No new obligation authority is distributed with these funds.
      
      
   3. The participating rate for these funds is 80 percent, or 90 percent if used on the Interstate System (except for adding lanes that are not high-occupancy lanes or auxiliary lanes), with sliding-scale rates not to exceed 95 percent.
      
      
   4. The funds shall be available for any purpose described in Section 133(b) of Title 23, United States Code. The appropriation code is Q03.
   
   
   
4. What action is required? Division Administrators should ensure that copies of this Notice are provided to State Departments of Transportation.

	Mary E. Peters Federal Highway Administrator

Table 1