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U.S. Department of Transportation
Federal Highway Administration

NOTICE

RELEASE OF INTERSTATE CONSTRUCTION FUNDS
BY STATES PURSUANT TO TITLE 23, UNITED
STATES CODE, SECTION 104(b)(5)(A)

N 4550.8
August 11, 1993

  1. PURPOSE. To establish procedures and to advise the States of how they may release Interstate Construction (IC) funds pursuant to 23 U.S.C. 104(b)(5)(A).

  2. BACKGROUND

    1. Section 104(b)(5)(A) of title 23, U.S.C. provides that before the apportionment of IC funds under 23 U.S.C. 104(b)(5)(A) is made for any fiscal year, if the Secretary and the State highway department agree that a portion of the anticipated apportionment is not needed for such fiscal year, the amount of such portion shall be made available for allocation from the Interstate Discretionary Fund under Section 118(b)(2) of 23 U.S.C.

        (1) For the purpose of determining the State's formula portion of the obligation limitation, only the amount of the apportionment released to the State will be used in computing the State's share.

        (2) Future Interstate apportionment factors will be adjusted to reflect only those funds actually released to the State.

    2. In order to assure that sufficient obligation authority is available to provide a proportionate share with Interstate Discretionary allocations made during the fiscal year, FHWA must determine in advance the funds that will be available. Therefore, notification prior to the beginning of the fiscal year is essential for IC funds to be released under this Section so that obligation authority can be reserved to allow allocation of these funds during the next fiscal year.

  3. ACTION

    1. A State which determines that a portion of its FY 1995 apportionment of IC funds will not be needed shall advise the FHWA Division Administrator by September 6, 1993, of its determination. The Division Administrator is to review the request and forward it, along with an appropriate recommendation, to the Regional Administrator by September 10, 1993. The Regional Administrator is to forward the request and recommendation to the Office of Fiscal Services (HFS-30) by close-of-business September 14, 1993. States will be notified of the action on their requests following appropriate Headquarters review. To assure that we have complete information, negative reports for those States not utilizing this provision are requested.

    2. States should be advised that the option to release IC funds to be apportioned on October 1, 1994, will be limited. This will be the final IC apportionment, and FHWA's approval of a request to release funds will be based on the effect the release would have on the completion of the Interstate System and with the intent of Congress. The amount of IC funds apportioned to each State in a fiscal year is used in the computation of the Donor State Bonus amounts under Section 1013(c) and the Apportionment Adjustments amounts under Section 1015 of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA), as well as the computation of the Minimum Allocation amounts under 23 U.S.C. 157 which could impact the total amount of apportionments a State might receive over the life of the ISTEA.

    3. Division Administrators should assure that copies of this Notice are furnished to State highway agencies.

/s/
E. Dean Carlson
Executive Director

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