**Section Analysis**

**H.R. 3087 - The Surface Transportation Extension Act of 2003**

**Sec. 1. Short title.**

This act may be cited as the Surface Transportation Extension Act of
2003.

**Sec. 2. Advances.**

[Advance Authorizations of Contract Authority]{.underline}

The bill provides funding for Federal-aid highway apportioned programs
except Metropolitan Planning (see section 5) for 5 months (from October
1, 2003, through February 29, 2004). Funding is provided as an extension
of TEA-21 (thus, TEA-21 conditions such as DBE will apply), and as an
advance against full year funding for 2004 that will eventually be
provided in a reauthorization bill. No new programs are authorized in
the extension bill.

For Federal-aid highways and highway safety construction programs, the
bill authorizes \$13,483,458,333 in contract authority, to be
apportioned as a lump sum to each State based on the State's relative
share of the 2003 formula obligation limitation. Each State's lump sum
of contract authority is to be divided programmatically based on the
State's relative share of the FY 2003 apportionment for each of the
following categories:

-   National Highway System (NHS)

-   Interstate Maintenance (IM)

-   Surface Transportation Program (STP)

-   Bridge Program

-   Congestion Mitigation and Air Quality Improvement Program (CMAQ)

-   Recreational Trails

-   Appalachian Development Highway Program (ADHS)

-   Minimum Guarantee (Minimum Guarantee funds in excess of
    \$1,166,666,667 will be programmatically distributed to the IM, NHS,
    STP, Bridge, and CMAQ programs; the remainder will remain as Minimum
    Guarantee funds with STP eligibilities as in current law.)

The following deductions and set-asides will **not** apply to these
funds, because these activities are separately authorized in STEA03 \--

-   Federal Highway Administration Administrative Expenses
    \[104(a)(1)(A)\]

-   Federal Motor Carrier Safety Administration \[104(a)(1)(B)\]

-   Territorial Highway Program \[104(b)(1)(A)\]

-   Alaska Highway \[104(b)(1)(A)\]

-   Operation Lifesaver \[104(d)(1)\]

-   Rail Crossing/Hazard Elimination in High Speed Rail Corridors
    \[104(d)(2)\]

-   Metropolitan Planning \[104(f)(1)\]

-   Recreational Trails Program Administration \[104(h)(1)\]

-   Interstate Maintenance Discretionary Program \[118(c)(1)\]

-   On-the-Job Training/Supportive Services \[140(b)\]

-   DBE Training \[140(c)\]

-   Bridge Discretionary Program \[144(g)(1)\]

Separate contract authority is provided for the above activities and
other allocated programs (see Sections 4 & 5).

# Obligation Limitation

Within the full year obligation limitation to be set in the
Transportation, Treasury, and General Government Appropriations Act for
FY 2004, STEA03 limits obligations from the Federal-aid highway program
during the 5-month period to \$14,101,250,000, not including
\$226,250,000 for Minimum Guarantee that is exempt from the obligation
limitation. The limitation applies to formula programs, allocated
programs and administrative expenses.

Subject to the \$14.1 billion cap on obligations, each State may
obligate up to the greater of its unobligated balance of Federal-aid
highway apportionments as of 10/1/03 (excluding Minimum Guarantee and
ADHS amounts that have no-year limitation) or 5/12 of its FY 2003
Federal-aid highways formula obligation limitation, not to exceed 75% of
the State\'s FY 2003 formula obligation authority. If necessary, the
amounts of obligation limitation for formula programs, allocated
programs and administrative costs will be adjusted to ensure that total
obligations do not exceed the overall cap.

States may not obligate after February 29, 2004, until enactment of a
multi-year reauthorization bill. The prohibition includes the
reobligation of funds obligated before February 29 and later
deobligated.

**Sec. 3. Transfers of Unobligated Apportionments.**

States may transfer apportioned funds subject to the obligation
limitation among programs and suballocations. Available for transfer are
NHS, IM, STP, CMAQ, Bridge, and STP, including the setasides for safety,
and transportation enhancements, and the amounts suballocated to areas
based on population. Transferred funds are subject to the provisions of
the program to which transferred (except transfers to STP are not
subject to suballocation). Funds so transferred are subject to repayment
to the programs from which transfers are made as soon as practicable
after enactment of a reauthorization bill.

**Sec. 4. Administrative Expenses.**

The bill authorizes \$187,500,000 in contract authority for
administrative expenses of the Federal Highway Administration.

**Sec. 5. Other Federal-aid Highway programs.**

Provides contract authority for other programs for the 5-month period of
October 1, 2003, through February 29, 2004, as follows:

-   Indian Reservation Roads (IRR) - \$114,583,333 (with a minimum
    \$5,416,667 for IRR bridges) \*

-   Public Lands Highways - \$102,500,000 \*

-   Park Roads and Parkways - \$68,750,000 \*

-   Refuge Roads - \$8,333,333 \*

-   Borders and Corridors. - \$58,333,333

-   Ferry Boats & Terminals - \$15,833,333, with setasides for projects
    on the NHS in Alaska (\$4,166,667), New Jersey (\$2,083,333), and
    Washington (\$2,083,333).

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-   Scenic Byways - \$11,458,333

-   Value Pricing - \$4,583,333

-   Highway Use Tax Evasion - \$2,083,333

-   Commonwealth of Puerto Rico Highway Program - \$45,833,333

-   Bicycle/Pedestrian Clearinghouse - \$208,333

-   Transportation and Community and System Preservation Pilot Program -
    \$10,416,667

-   Transportation Infrastructure Finance and Innovation (TIFIA) -
    \$58,333,333, with up to \$833,333 for TIFIA administrative costs.
    The principal amounts of credit instruments made available during
    the 5-month period is limited to \$1,083,333,333.

-   Surface Transportation Research - \$43,750,000

-   Technology Deployment Program - \$22,916,667, with \$2,083,333 for
    the Advances Technology Pilot Program (low-speed Maglev)

-   Training and Education - \$8,750,000

-   Bureau of Transportation Statistics - \$12,916,667

-   Intelligent Transportation System (ITS) Standards, Research,
    Operational Tests, and Development. - \$47,916,667

-   ITS Deployment - \$51,666,667

-   University Transportation Research - \$11,250,000

-   Metropolitan Planning - \$100,000,000

-   Territorial Highway Program - \$15,166,667

-   Alaska Highway - \$7,833,333

-   Operation Lifesaver - \$208,333

-   Bridge Discretionary Program - \$41,666,667

-   Interstate Maintenance Discretionary Program - \$41,666,667

-   Recreational Trails Program Administrative Costs - \$312,500

-   Railway-highway Crossing Hazard Elimination in High Speed Rail
    Corridors \$2,187,500, with \$104,167 to be available for
    improvements to the Minneapolis/St. Paul -- Chicago segment of the
    Midwest High Speed Rail Corridor

-   DBE Training - \$4,166,667

-   On-the-Job Training/Supportive Services - \$4,166,667

\* There will be no administrative takedown (FHWA or FMCSA) from Federal
Lands Highways funds.

**Sec. 6. Extension of Highway Safety Programs**.

Extends from October 1, 2003 through February 29, 2004, the two safety
grant programs that are within the Federal-aid highway program:

-   Safety Incentive Grants for Use of Seat Belts - \$46,666,667

-   Safety Incentives to Prevent Operation of Motor Vehicles by
    Intoxicated Persons - \$50,000,000

-   Extends other programs of the National Highway Traffic Safety
    Administration from October 1, 2003 through February 29, 2004.

**Sec. 7. Extension of Motor Carrier Safety Programs.**

Extends from October 1, 2003 through February 29, 2004 the programs of
the Federal Motor Carrier Safety Administration.

**Sec. 8. Extension of Federal Transit Programs.**

Extends from October 1, 2003 through February 29, 2004 the programs of
the Federal Transit Administration

**Sec. 9. Sport Fishing and Boating Safety**.

Extends provisions related to programs funded from the Aquatic Resources
Trust Fund.

**Sec. 10. Budget Limitations.**

Provides adjustments to the annualized discretionary spending limits
(AKA firewalls) for the highway and mass transit categories under the
Balanced Budget and Emergency Deficit Control Act of 1985. The limits
are contingent on the extension of overall discretionary spending caps,
which expired in September 2002. Highway category discretionary cap for
FY 2004 set at \$31,834,000,000 in outlays; Mass transit category
discretionary cap set at \$1,462,000,000 in new budget authority and
\$6,629,000,000 in outlays for mass transit.

Sets RABA adjustment for 2004 at zero, with a sense of Congress
statement that any multi-year reauthorization will restructure RABA to
minimize year-to-year fluctuations in highway spending levels.

**Sec. 11. Level of Obligation Limitations.**

Amends TEA-21 (sec. 8103) to extend limits on obligations for highway
and transit categories (for purposes of the Balanced Budget and
Emergency Deficit Control Act) thru FY 2004. Obligations under the
highway category, which includes the Federal-aid highway program
obligation limitation, FMCSA programs, and the contract authority
programs of NHTSA, are limited to \$34,498,000,000. Obligations under
the mass transit category, both from the Mass Transit Account of the
Highway Trust Fund and from the General Fund are limited to
\$7,303,000,000.

Sec. 12. Extension of Authorization for Use of Trust Funds for
Obligations under TEA-21.

This section amends the Highway Trust Fund provisions of the Internal
Revenue Code to authorize expenditures from the HTF until March 1, 2004,
and authorizes expenditures to carry out this Act. The section also
adopts a temporary rule that says, for Byrd test purposes, taxes are
assumed to have been extended through the end of FY 2006.

> 10-01-2003

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