1. PURPOSE. To provide procedures governing determination and redistribution of unneeded balances of FY 1999 obligation authority subject to lapse on September 30, 1999, under Section 1102(d) of the Transportation Equity Act for the 21^st Century (TEA-21), and the Omnibus Consolidated and Emergency Appropriations Act of 1999, Public Law 105-277.

2. BACKGROUND

   1. Section 1102(d) of TEA-21 provides for the redistribution after August 1, 1999, of any authority distributed to a State for FY 1999, that is subject to lapse on September 30, 1999, if the State will not obligate the authority by September 30, 1999.

   2. A total of $19.4 billion in obligation authority was distributed by formula to the States for FY 1999. This obligation authority is available for FY 1999 only and subject to lapse on September 30, 1999. An additional $3.6 billion was reserved for distribution as special limitation for the Minimum Guarantee, Appalachia Development Highway Program, Highway Priority Projects Program, and the Woodrow Wilson Memorial Bridge. These amounts remain available until expended and are not subject to redistribution. The remaining $2.5 billion was reserved from the distribution and used to support the allocation of nonformula (allocated), Federal Lands Highway Program, Transportation Research, and administration funds.

   3. Section 1102(e) of TEA-21 provides the applicability of obligation authority made available for Transportation Research Programs carried out under Chapter 5 of Title 23, U.S.C. and under Title V of TEA-21. The obligation authority shall remain available for three fiscal years and need not be released for this fiscal year's redistribution process.

   4. Amounts of unneeded obligation authority initially distributed by formula will be identified separately from unneeded balances of authority reserved from formula distribution and used to support obligation of FY 1999 allocations of nonformula, Federal Lands and administrative funds. States need not report on special limitation provided for the Minimum Guarantee, Appalachia Development Highway Program, Highway Priority Projects Program, and the Woodrow Wilson Memorial Bridge since such funds are not subject to lapse.

3. REDISTRIBUTION OF UNOBLIGATED FY 1999 AUTHORITY INITIALLY DISTRIBUTED BY FORMULA

   1. To provide a basis for determining (1) the amount of FY 1999 obligation authority initially distributed by formula that will be available for redistribution among the other States after August 1, 1999, and (2) those States that are able to obligate amounts in addition to that previously distributed, each State shall submit a plan by August 11, 1999, to the Division Administrator showing the:

      (1) July 31, 1999, unobligated balance of obligation authority (formula), and

      (2) projects and/or Federal funds that will be obligated, or could be obligated in the State by September 30, 1999, if additional authority is provided, and

      (3) obligation authority (formula) that is in excess and is released by the State.

   2. The Division Administrator shall review the plan submitted by the State and reach an agreement with the State on those projects that could be approved and authorized by the Division Office on or before September 30, 1999.

   3. By August 16, 1999, the Division Administrator shall submit a report to Washington Headquarters, Office of Budget and Finance, (HABF-10) showing, (1) the amount of FY 1999 formula authority that is in excess and is released by the State, or (2) that the State and Division Administrator have reached an agreement that the State's remaining unobligated FY 1999 formula authority can be obligated by September 30, 1999.

4. RELEASE OF UNOBLIGATED FY 1999 AUTHORITY DISTRIBUTED TO SUPPORT OBLIGATION OF NONFORMULA (ALLOCATED) FUNDS

   1. The amount of FY 1999 obligation authority distributed to support obligation of nonformula (allocated) funds that will not be obligated by September 30, 1999, should be determined by the Division Administrator in consultation with the State.

   2. By August 16, 1999, the Division Administrator shall submit a report to Washington Headquarters, Office of Budget and Finance (HABF-10) showing (1) the amount of nonformula authority (allocated), by program, released by the State, or (2) that the State and Division Administrator have reached an agreement that the State will obligate available nonformula (allocated) funds by September 30, 1999.

   3. Nonformula (allocated) funds and associated obligation limitation that will not be obligated by September 30, 1999, should be returned to the appropriate Washington Headquarters program office no later than August 11, 1999.

5. REDISTRIBUTION OF FY 1999 AUTHORITY RESERVED FOR FEDERAL LANDS AND HEADQUARTERS CONTROLLED PROGRAMS

   1. Any nonformula (allocated) funds and associated obligation limitation not obligated by July 31, 1999, must be withdrawn and made available for August redistribution unless Federal Lands and Headquarters offices have firm commitments that the unobligated amounts will be obligated by September 30, 1999.

   2. Each Program Manager and Director should report the total obligations for each program and the amount, if any, that will not be obligated by September 30, 1999, to the Budget Division (HABF-10) no later that August 16, 1999.

6. REDISTRIBUTION OF RELEASED OBLIGATION AUTHORITY. The formula for redistribution of released obligation authority is based on the requirements of Section 1102(d) of TEA-21. Priority will be given to those States having large unobligated balances of funds apportioned under Sections 104, 144, and 160 of Title 23, U.S.C., and under Section 1015 of theIntermodal Surface Transportation Efficiency Act of 1991.

7. PROGRAM MONITORING. The Washington Headquarters will monitor the program on a national basis to ensure that all available authority subject to lapse on September 30, 1999, is fully utilized.

Original signed by,

C. Johnson for
Anthony R. Kane
Executive Director

Attachment

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