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Subject

Federal --Aid Highway Program Obligations -

Fiscal Year (FY) 2001 Redistribution After

August 1, 2001

Classification Code Date OPI

N 4520.163 July 13, 2001 HABF-10

1.  **What is the purpose of this Notice?** This Notice provides
    procedures governing the determination and redistribution of
    unneeded balances of

> FY 2001 obligation authority subject to lapse on September 30, 2001,
> under Section 1102(d) of the Transportation Equity Act for the 21^st^
> Century (TEA-21), and the Department of Transportation and Related
> Agencies Appropriations Act of 2001, Public Law 106-346.

2.  **What is the background information?**

> a\. Section 1102(d) of TEA-21 provides for the redistribution after
>
> August 1, 2001, of any authority distributed to a State for FY 2001,
> that is subject to lapse on September 30, 2001, if the State will not
> obligate the authority by September 30, 2001.

b.  A total of \$22.2 billion in obligation authority, including Revenue
    Aligned Budget Authority (RABA), was distributed by formula to the
    States for

> FY 2001. This obligation authority is available for FY 2001 only and
> subject to lapse on September 30, 2001. An additional \$4.2 billion
> was reserved for distribution as special limitation for the Minimum
> Guarantee, Appalachian Development Highway Program, Highway Priority
> Projects Program (including RABA), and the Woodrow Wilson Memorial
> Bridge (including RABA). These amounts remain available until expended
> and are not subject to redistribution. The remaining \$3.1 billion was
> reserved from the distribution and used to support the allocation of
> nonformula (allocated), Federal Lands Highway Program, Transportation
> Research, and administrative funds.

c.  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. However, FY 1999 obligation authority is subject to
    lapse if the obligation authority is not obligated by September 30,
    2001.

d.  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 2001 allocations of nonformula, Federal Lands
    Highway and administrative funds. States should not report on
    special limitation provided for the Minimum Guarantee, Appalachian
    Development Highway Program, Highway Priority Projects Program, and
    the Woodrow Wilson Memorial Bridge, for such funds are not subject
    to lapse.

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3.  **How is the unobligated FY 2001 authority initially distributed by
    formula redistributed?**

> a\. To provide a basis for determining (1) the amount of FY 2001
> obligation authority initially distributed by formula that will be
> available for redistribution among the other States after August 1,
> 2001, and (2) those States that are able to obligate amounts in
> addition to that previously distributed, each State must submit a plan
> by August 10, 2001, to the Division Administrator showing the:
>
> \(1\) July 31, 2001, unobligated balance of obligation authority
> (formula),
>
> \(2\) projects and/or Federal funds that will be obligated, or could
> be obligated in the State by September 30, 2001, if additional
> authority is provided, and
>
> \(3\) obligation authority (formula) that is in excess and is released
> by the State.
>
> b\. The Division Administrator must 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, 2001.

c.  By August 15, 2001, the Division Administrator must submit a report
    to Headquarters, Office of Budget and Finance (HABF-10), via email
    to: FHWA, BudgetDivision (official mailbox), showing (1) the amount
    of

> FY 2001 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 2001 formula
> authority can be obligated by September 30, 2001.

4.  **How is the unobligated FY 2001 authority distributed to support
    obligation of nonformula (allocated) funds released?**

> a\. The amount of FY 2001 obligation authority distributed to support
> obligation of nonformula (allocated) funds that will not be obligated
> by September 30, 2001, should be determined by the Division
> Administrator, in consultation with the State.

b.  By August 15, 2001, the Division Administrator must submit a report
    to Headquarters, Office of Budget and Finance (HABF-10), via email
    to: FHWA**,** BudgetDivision (official mailbox), 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, 2001.

c.  Nonformula (allocated) funds and associated obligation limitation
    that will not be obligated by September 30, 2001, should be returned
    to the appropriate Headquarters program office no later than August
    10, 2001.

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5.  **How is the FY 2001 authority reserved for Federal Lands Highway
    and Headquarters controlled programs redistributed?**

> a\. Any nonformula (allocated) funds and associated obligation
> limitation not obligated by July 31, 2001, must be withdrawn and made
> available for\
> August redistribution, unless Federal Lands Highway and Headquarters
> offices have firm commitments that the unobligated amounts will be
> obligated by September 30, 2001.

b.  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, 2001, to the Budget Division (HABF-10)
    no later than

> August 15, 2001.

6.  **How will the released obligation authority be redistributed?** The
    formula for redistributed 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 the Intermodal Surface Transportation
    Efficiency Act of 1991.

7.  **Is there program monitoring?** Yes. Headquarters will monitor the
    program on a national basis to ensure that all available authority
    subject to lapse on September 30, 2001, is fully used.

> Christine M. Johnson, for
>
> Vincent F. Schimmoller
>
> Deputy Executive Director

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                                                                                      STATE NAME                                       

                                                                                                                                       

                                                                                      FISCAL YEAR                                      

                                                                                                                                       

                                                                                                                                       

                               JULY 31                  JULY 31                       AMOUNT WHICH                                     

                               UNOBLIGATED              UNOBLIGATED                   COULD BE             OBLIGATION                  ADDITIONAL

                               BALANCE OF               BALANCE                       OBLIGATED BY         LIMITATION                  LIMITATION

                               [FUNDS]{.underline}      [LIMITATION]{.underline}      [SEPTEMBER           [RELEASED]{.underline}      [REQUIRED]{.underline}
                                                                                      30]{.underline}                                  

                                                                                                                                       

  FORMULA LIMITATION                                                                                                                   

                                                                                                                                       

  NONFORMULA FUNDS                                                                                                                     

  (BY APPROPRIATION CODE)                                                                                                              

                                                                                                                                       

  **[EXAMPLES]{.underline}**                                                                                                           

  FERRYBOATS                                                                                                                           

  SCENIC BYWAYS                                                                                                                        

  VALUE PRICING PILOT PROGRAM                                                                                                          

  BRIDGE DISCRETIONARY                                                                                                                 

  PUBLIC LANDS DISCRETIONARY                                                                                                            

                                                                                                                                       

  NONFORMULA SUBTOTAL                                                                                                                  

                                                                                                                                       

  TOTAL                                                                                                                                
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