1. What is the purpose of this Notice? This Notice is to advise of the revised distribution among the States of the limitation on Federal-aid highway program obligations.

2. Does this Notice cancel FHWA notice 4520.187? Yes, this Notice cancels FHWA Notice 4520.187, Federal-aid Highway Program Obligations Fiscal Year (FY) 2006, dated December 28, 2005. The revisions to the apportionment is required pursuant to a 1 percent across-the-board rescission contained in Division B, chapter 8, section 3801 of the Department of Defense Appropriations Act, 2006, Pub. L. No. 109-148.

3. What are the legislative provisions?

   1. The Department of Transportation Appropriations Act, 2006, Public Law (Pub. L. No.) 109-115 and the Safe Accountable Flexible Efficiency Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Pub. L. No. 109-59 provides the obligation on limitation for FY 2006 of $36,032,343,903.

   2. Division B, chapter 8, section 3801 of the Department of Defense Appropriations Act, 2006, contains a 1 percent across-the-board rescission of obligation limitation imposed for FY 2006. The rescission reduces the Federal-aid highway program obligation limitation by $360,323,439, to $35,672,020,464.

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

      1. (1) section 125 of title 23, United States Code (U.S.C.);

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

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

      4. (4) sections 131(b) and 131(j) of the Surface Transportation Assistance Act of 1982;

      5. (5) sections 149(b) and 149(c) of the Surface Transportation and Uniform Relocation Assistance Act of 1987;

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

      7. (7) section 157 of title 23, U.S.C., as in effect on the day before the date of enactment of the Transportation Equity Act for the 21st Century;

      8. (8) section 105 of title 23, U.S.C, as in effect for fiscal years 1998 through 2004, but only in an amount equal to $639,000,000 for each of those fiscal years;

      9. (9) the Federal-aid highway programs for which obligation authority was made available under the Transportation Equity Act for the 21st Century or subsequent public laws for multiple years or to remain available until used, but only to the extent that the obligation authority has not lapsed or been used;

      10. (10) section 105 of title 23, U.S.C., but only in an amount equal to $639,000,000 for each fiscal year 2005 and 2006; and

      11. (11) under section 1603 of the SAFETEA-LU, to the extent that funds obligated in accordance with that section were not subject to a limitation on obligations at the time at which the funds were initially made available for obligation.

4. What are the Allocated Accounts?

   1. Revised amounts authorized for administrative expenses, programs funded from the administrative takedown, and revised amounts authorized for the highway use tax evasion program, the Bureau of Transportation Statistics, the programs, projects, and activities funded from the takedown authorized by section 112 of the Department of Transportation Appropriations Act, 2006, and the unobligated balanced of funds made available for programs, projects, and activities funded from the takedown authorized by Division H, title I, section 117 of the Consolidated Appropriations Act, 2005, Pub. L. No. 108-447 for which no obligation limitation has previously been made available are subject to the limitation on obligations.

   2. Unobligated balances of funds from the previous fiscal year that are allocated by the Secretary are subject to the limitation on obligations but are excluded from the State-by-State distribution.

   3. Obligations of funds authorized for Transportation Research are subject to the limitation on obligations. Obligation limitation made available for Transportation Research remains available for 3 years. Obligation limitation made available for Transportation Research in prior years is in addition to amounts made available for FY 2006.

   4. Amounts that are allocated will be covered by an equal amount of obligation limitation, which will be distributed with the allocation of the funds.

5. What is the Distribution of Obligation Limitation to the States?

   1. The attached Table 1 shows the revised amount of formula obligation limitation distributed to each State for FY 2006. Each State receives a proportional amount of the obligation limitation available to be distributed to the States based on the ratio that State's total apportionments subject to the limitation on obligations, bears to the total of such apportionments for all States.

   2. After August 1, 2006, the Secretary will revise the distribution of limitation made available if a State does not plan to obligate the amount distributed during FY 2006 and redistribute such amount to those States able to obligate amounts in addition to those previously distributed during FY 2006.

6. What are the Special Limitations?

   1. Section 110(a)(4)(A) of the Department of Transportation Appropriations Act, 2006 provides for an obligation limitation within the overall obligation ceiling for the funds authorized under the following:

   2. Section 110(a)(4)(B) of the Department of Transportation Appropriations Act, 2006 provides that $2,000,000,000 of the obligation limitation shall be distributed for the Equity Bonus Program, (section 105 of title 23, U.S.C.).

   3. Section 110(f) of the Department of Transportation Appropriations Act, 2006 provides that the special limitation associated with the programs under section 110(a)(1) for programs, projects, and activities funded from the takedown authorized by section 117 of title I of Division H of Pub. L. No. 108-447 and under section 110(a)(4) of the Department of Transportation Appropriations Act, 2006, shall,

   4. Section 110(g) of the Department of Transportation Appropriations Act, 2006 provides flexibility by permitting obligation limitation assigned individually to High Priority Projects numbered 1-3676 in the table in section 1702, to be used for any other project in that section in the same State. Limitation so used must be restored to its original purpose when the FY 2007 obligation limitation is distributed.

   5. The State-by-State revised distribution of the special limitation associated with Equity Bonus Program and the Appalachian Development Highway System Program for FY 2006 is also shown on the attached Table 1.

7. Are there any transfer provisions? Yes, limitation will be transferred to the State’s 402 Safety Program for those States that failed to meet the provisions of section 154 of title 23, U.S.C., the Open Container Requirements; and section 164 of title 23, U.S.C., the Minimum Penalties for Repeat Offenders for Driving While Intoxicated or Driving Under the Influence for FY 2006. The revised amounts of the transfers and associated obligation limitation are shown on Table 2.

8. What action is required? Division Administrators should ensure that copies of this Notice are provided to the State departments of transportation.

Attachments
Table 1
Table 2

J. Richard Capka Acting Administrator