1. PURPOSE. To advise of the limitation on Federal-aid highway program obligations for the first quarter of FY 1998 and the distribution of this limitation among the States. This distribution is subject to revision upon the enactment of Federal-aid highway reauthorization legislation.

2. LIMITATION - LEGISLATIVE PROVISIONS. The Department of Transportation and Related Agencies Appropriations Act for FY 1998 (Public Law 105-66) provides for the limitation of obligations as follows:

   1. Obligations for Federal-aid highways are limited to $21,500,000,000 for FY 1998.

   2. This limitation shall not apply to obligations for projects covered under:

      (1) Sections 125 and 157 of Title 23, United States Code (23 U.S.C.);

      (2) Section 147 of the Surface Transportation Assistance Act of 1978;

      (3) Section 9 of the Federal-Aid Highway Act of 1981;

      (4) Obligations to carry out provisions of section 131(b) and 131(j) of the Surface Transportation Assistance Act of 1982 (Public Law 97-424);

      (5) Section 404 of the Surface Transportation Assistance Act of 1982 (Public Law 97-424);

      (6) Sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991;

      (7) Obligations of funds made available under subsections (b) and (c) of section 149 of the Surface Transportation and Uniform Relocation Assistance Act of 1987.

   3. The final distribution of FY 1998 obligation limitation shall ensure that each State is guaranteed sufficient authority to prevent lapse of sums authorized to be appropriated for Federal-aid highways and highway safety construction programs which have been apportioned or allocated to a State.

   4. Amounts authorized for administration, the Federal Lands Highway Program, the Intelligent Transportation Systems, Truman-Hobbs bridges funded under the discretionary bridge program and amounts available under sections 1040, 1047, 1064, 6001, 6005, 6006, 6023 and 6024 of Public Law 102-240 are charged to the limitation but are excluded from the State-by-State distribution.

   5. Once a final distribution of FY 1998 obligation limitation has been made, after August 1, 1998, the Secretary will revise the distribution of obligation limitation made available if a State does not plan to obligate the amount distributed during FY 1998 and redistribute such amounts to those States able to obligate amounts in addition to those previously distributed during FY 1998. The redistribution will give priority to States having large unobligated balances of funds apportioned under section 103(e)(4), 104, 144 and 160 of title 23, United States Code, and under sections 1013 (c) and of Public Law 102-240.

   6. Any authority reserved for Federal Lands and Headquarters controlled programs which will not be obligated by September 30, 1998, will be withdrawn and made available for the August Redistribution.

3. CONTRACT AUTHORITY APPORTIONMENTS. FY 1998 contract authority apportionments will not be made until reauthorization legislation is enacted into law. Therefore, FY 1997 apportionments were used as a baseline for making an interim State-by-State distribution of the first quarter FY 1998 obligation limitation.

4. OBLIGATIONS DURING THE FIRST QUARTER (OCTOBER 1 THROUGH DECEMBER 31, 1997

   1. During the period October 1 through December 31, 1997, no State shall obligate more than 25 per centum of the amount distributed to such State and the total of all State obligations shall not exceed 12 per centum of the total amount distributed to all States. The State-by- State distribution of the interim projected FY 1998 obligation limitation and the interim first-quarter obligation limitation are shown on Attachment 1. As noted previously, the final State-by-State distribution of the FY 1998 obligation limitation cannot be determined until new reauthorization legislation is enacted into law. Obligation of funds shown in Attachment 3 are chargeable to the FY 1998 obligation limitation. Also shown are funds exempt from the obligation limitation.

   2. During the period October 1 through December 31, 1997, the aggregate amount of obligations under section 157 of title 23, United States Code, for projects covered under section 147 of the Surface Transportation Assistance Act of 1978, section 9 of the Federal-Aid Highway Act of 1981, sections 131(b), 131(j), and 404 of Public Law 97-424, sections 1061, 1103 through 1108, 4008, 6023(b)(8), and 6023(b)(10) of Public Law 102- 240, and for projects authorized by Public Law 99-500 and Public Law 100-17, shall not exceed $277,431,840. The distribution to the States has been made based on the September 30, 1997, unobligated balances of the affected programs. The amount for each State is shown on Attachment 2. The appropriation codes subject to this special first quarter limitation are shown on Attachment 4.

5. DISCRETIONARY AND/OR OTHER NON-FORMULA FUNDS. Obligational authority is reserved for discretionary and/or other non- formula funds estimated to be allocated during the fiscal year. Obligation authority will be distributed with each allocation of funds during FY 1998 at 100 percent. During the first quarter; 12 percent of the limitation will be provided with allocations to the States. The remaining limitation will be available after December 31, 1997. Such allocations increase the total annual limitation to each State for FY 1998.

6. FEDERAL LANDS PROGRAM. The obligation authority for the Federal Lands Highway program has been reserved from distribution. Distribution of the reserved authority will be made by the Federal Lands Highway Program Office.

7. TERRITORIAL HIGHWAY PROGRAM. Obligation authority for the Territorial Highway Program has been reserved from distribution. Distribution of the reserved authority will be made by the Associate Administrator for Program Development.

8. ACTION

   1. Division Administrators should ensure that copies of this Notice are furnished to State Departments of Transportation.

   2. By December 8, 1997, each State shall advise the Division Administrator of (1) the amount it can obligate in excess of its 12 percent share (up to a maximum of 25 percent), or (2) the amount that can be released during the first quarter for obligation by other States. The response shall be forwarded by the Division Administrator to the regional office. By December 10, each Regional Administrator shall advise Washington Headquarters, HFS-10, on a State-by-State basis of the additional authority required or the amount that can be released for obligation by other States. Upon review of the regional reports, Washington Headquarters will advise of the redistribution, if any, of the first quarter obligation authority. Any redistribution in the first quarter will not change the total FY 1998 distribution of obligation limitation to each State.

   3. By December 8, 1997, each State shall advise the Division Administrator of the Special Limitation amount it can obligate in excess of its share or the amount that can be released during the first quarter for obligation by other States. The response shall be forwarded by the Division Administrator to the regional office. By December 10, each Regional Administrator shall advise Washington Headquarters, HFS-10, on a State-by-State basis of the additional authority required or the amount that can be released for obligation by other States. Upon review of the regional reports, Washington Headquarters will advise of the redistribution, if any, of the first quarter obligation authority.

Original signed by,

Gloria J. Jeff
Acting Federal Highway Administrator

4 Attachments

ATTACHMENT 4

"MINIMUM ALLOCATION - 160, 34A, 34B, 34C, 34D, 34E, 34F"
ACCELERATION OF BRIDGE PROJECTS - 116
WOODROW WILSON BRIDGE - 128
GAP CLOSING DEMO - 228
USABLE SEGMENTS DEMO - 229
UNIFORM TRAFFIC CONTROL DEVICES - 376
HIGH COST BRIDGE PROJECTS - 360
CONGESTION RELIEF PROJECTS - 361
HIGH PRIORITY CORRIDORS - 362
HIGH PRIORITY CORRIDORS FEASIBILITY STUDIES - 363
RURAL ACCESS PROJECTS - 365
URBAN ACCESS PROJECTS - 366
INNOVATIVE PROJECTS - 367
PRIORITY INTERMODAL PROJECTS - 368
INFRASTRUCTURE TRANSPORTATION INFORMATION CENTER - 377
INTER. TRUCK REGIS. UNIFORM - WKG. GRP. - 337
INTER. TRUCK REGIS. UNIFORM - GRANTS - 338
HOWARD TRANSPORTATION INFORMATION CENTER - 378
NATIONAL CENTER ADV. TRANSPORTATION TECH. - 379
DEMOS. AND PRIORITY PROJECTS - 307
DEMOS. AND PRIORITY PROJECTS - 308