1. PURPOSE

   1. To advise States of the redistribution of first-quarter FY 1996 obligation authority returned by States unable to obligate their 12 percent share by December 31, 1995.

   2. To advise States of the revised first-quarter special limitation on exempt projects.

2. RETURNED AUTHORITY

   1. Five States reported a total return of $20,202,403 of first-quarter obligation authority in response to FHWA Notice N4520.140 dated December 4, 1995. This return does not reduce the total obligation authority available to those States for FY 1996 nor does it increase the total available to those States receiving the redistributed amounts.

   2. Five States reported a total return of $14,976,251 of first-quarter special limitation on exempt projects in response to FHWA Notice N4520.140 dated December 4, 1995.

3. REDISTRIBUTION

   1. Attachment 1 shows the revised distribution of the amount available during the first quarter. The returned authority was redistributed among requesting States by the same formula used to determine the distribution of the total FY 1996 obligation limitation adjusted to excludenonrequesting States and to assure no State receives more additional first-quarter authority than requested. The revised first-quarterobligation limitation amount along with 12 percent of the obligational authority distributed to the States with allocations, plus the entire amount distributed for Federal Lands projects constitutes the total amount a State can obligate in the first quarter of FY 1996.

   2. Attachment 2 shows the revised distribution of the first-quarter special limitation on exempt projects for FY 1996.

4. ACTION. Division Administrators should ensure that copies of this Notice are furnished to State highway agencies.

2 Attachments