§ 121 TITLE 23—HIGHWAYS Page 76

tion 120 of title 23, United States Code, as amended by

this section.’’

FEDERAL SHARE OF PROJECTS APPROVED DURING PERIOD BEGINNING FEBRUARY 12, 1975, AND ENDING SEPTEMBER 30, 1975

Pub. L. 94–30, §§1, 2, June 4, 1975, 89 Stat. 171, as

amended by Pub. L. 94–280, title I, §145, May 5, 1976, 90

Stat. 446, provided for Federal share of projects approved under section 106(a) of this title, and projects

for which United States becomes obligated under section 117 of this title during the period beginning Feb.

12, 1975, and ending Sept. 30, 1975, and repayment schedule for States from Jan. 1, 1977, through Jan. 1, 1979.

REVIEW AND ANALYSIS OF EXCISE TAXES DEDICATED TO

HIGHWAY TRUST FUND

Section 507 of Pub. L. 95–599 provided that:

‘‘(a) IN GENERAL.—The Secretary of the Treasury, in

consultation with the Secretary of Transportation and

the staff of the Joint Committee on Taxation, shall—

‘‘(1) review and analyze each excise tax now dedicated to the Highway Trust Fund with respect to

such factors as ease or difficulty of administration of

such tax and the compliance burdens imposed on taxpayers by such tax, and

‘‘(2) on or before April 15, 1982, report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate

as to the matters set forth in paragraph (1) and other

findings, as well as recommendations on—

‘‘(A) improvements in excise taxation which

would enhance tax administration, equity, and

compliance, or

‘‘(B) a new system of raising revenues to fund the

Highway Trust Fund which would meet the objectives set forth in subparagraph (A).

The recommendations described in paragraph (2) shall

be formulated in conjunction with the recommendations of the cost allocation study under section 506 set

out as note under section 307 of this title of the equitable distribution of the highway excise taxes.

‘‘(b) INTERIM REPORTS.—The Secretary of the Treasury, in consultation with the Secretary of Transportation and the staff of the Joint Committee on Taxation, shall file an interim report with the Committee

on Ways and Means of the House of Representatives

and the Committee on Finance of the Senate on or before April 15, 1980, and a second interim report on or before April 15, 1981.’’

HIGHWAY TRUST FUND

Section 209 of act June 29, 1956, ch. 462, title II, 70

Stat. 397, as amended by Pub. L. 86–342, title II, §202,

Sept. 21, 1959, 73 Stat. 615; Pub. L. 86–346, title I, §104(5),

Sept. 22, 1959, 73 Stat. 622; Pub. L. 86–440, §1(c), Apr. 22,

1960, 74 Stat. 81; Pub. L. 87–61, title II, §207, June 29,

1961, 75 Stat. 128; Pub. L. 88–578, title II, §202, Sept. 3,

1964, 78 Stat. 904; Pub. L. 89–44, title II, §210, title VIII,

§809(e), June 21, 1965, 79 Stat. 144, 168; Pub. L. 91–258,

title II, §§207(e), 208(g), May 21, 1970, 84 Stat. 249, 252;

Pub. L. 91–605, title III, §301, Dec. 31, 1970, 84 Stat. 1743;

Pub. L. 94–273, §18, Apr. 21, 1976, 90 Stat. 379; Pub. L.

94–280, title III, §301, May 5, 1976, 90 Stat. 456; Pub. L.

95–599, title V, §§503(a), 504(a), Nov. 6, 1978, 92 Stat. 2757;

Pub. L. 95–618, title II, §233(b)(2)(E), Nov. 9, 1978, 92

Stat. 3191; Pub. L. 96–451, title II, §203(a), Oct. 14, 1980,

94 Stat. 1988; Pub. L. 97–424, title V, §531(b), Jan. 6, 1983,

96 Stat. 2191; Pub. L. 97–449, §2(a), Jan. 12, 1983, 96 Stat.

2439, provided that:

‘‘(a) [Repealed. Pub. L. 97–424, title V, §531(b), Jan. 6,

1983, 96 Stat. 2191. Subsec. (a) provided for the creation

of a Highway Trust Fund.]

‘‘(b) DECLARATION OF POLICY.—It is hereby declared to

be the policy of the Congress that if it hereafter appears—

‘‘(1) that the total receipts of the Trust Fund (exclusive of advances under subsection (d) will be less

than the total expenditures from such Fund (exclusive of repayments of such advances); or

‘‘(2) that the distribution of the tax burden among

the various classes of persons using the Federal-aid

highways, or otherwise deriving benefits from such

highways, is not equitable, the Congress shall enact

legislation in order to bring about a balance of total

receipts and total expenditures, or such equitable distribution, as the case may be.

‘‘(c) to (g) [Repealed. Pub. L. 97–424, title V, §531(b),

Jan. 6, 1983, 96 Stat. 2191. Subsecs. (c) to (g) provided

generally for the transfer of the equivalent of the receipts of certain taxes to the Fund, for additional appropriations to the Fund, for its management, methods

and purposes of expenditures, and for adjustment of apportionments regarding the Fund.]’’

Section 203(b) of Pub. L. 96–451 provided that: ‘‘The

amendment made by subsection (a) [amending former

subsec. (f)(5) of section 209 of Act June 29, 1956] shall

apply to taxes received on or after October 1, 1980.’’

Section 504(b) of Pub. L. 95–599 provided that: ‘‘The

amendment made by subsection (a) [amending former

subsec. (g) of section 209 of Act June 29, 1956] shall

apply to fiscal years beginning after September 30,

1978.’’

Pub. L. 91–258, title II, §208(g), May 21, 1970, 84 Stat.

252, which added subsec. (c)(5) of section 209 of the Act

of June 29, 1956, ch. 462, title II, 70 Stat. 397, was repealed by Pub. L. 97–248, title II, §281(b), Sept. 3, 1982,

96 Stat. 566.

PERCENTAGE OF FUNDS CONTRIBUTED BY ALASKA

Section 21(d)(4) of Pub. L. 86–70, which repealed subsec. (h) of this section, provided in part that the provisions of subsec. (h) relating to the percentage of funds

to be contributed by Alaska shall continue to apply to

funds apportioned to Alaska for fiscal year 1960 and

prior fiscal years.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 104, 107, 108, 121,

122, 125, 130, 142, 147, 148, 217 of this title; title 42 section

3338.

§ 121. Payment to States for construction

(a) The Secretary may, in his discretion, from

time to time as the work progresses, make payments to a State for costs of construction incurred by it on a project. These payments shall

at no time exceed the Federal share of the costs

of construction incurred to the date of the

voucher covering such payment plus the Federal

share of the value of the materials which have

been stockpiled in the vicinity of such construction in conformity to plans and specifications

for the project. Such payments may also be

made in the case of any such materials not in

the vicinity of such construction if the Secretary determines that because of required fabrication at an off-site location the materials

cannot be stockpiled in such vicinity.

(b) After completion of a project in accordance

with the plans and specifications, and approval

of the final voucher by the Secretary, a State

shall be entitled to payment out of the appropriate sums apportioned to it of the unpaid balance of the Federal share payable on account of

such project.

(c) No payment shall be made under this chapter, except for a project located on a Federal-aid

system and covered by a project agreement. No

final payment shall be made to a State for its

costs of construction of a project until the completion of the construction has been approved by

the Secretary following inspections pursuant to

section 114(a) of this title.

(d) In making payments pursuant to this section, the Secretary shall be bound by the limita-
Page 77 TITLE 23—HIGHWAYS § 122

tions with respect to the permissible amounts of

such payments continued in sections 106(c), 120,

and 130 of this title.

(e) Such payments shall be made to such official or officials or depository as may be designated by the State highway department and

authorized under the laws of the State to receive public funds of the State.

(Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 899; Pub. L.

88–157, §7(b), Oct. 24, 1963, 77 Stat. 278; Pub. L.

93–87, title I, §117, Aug. 13, 1973, 87 Stat. 259; Pub.

L. 94–280, title I, §118(a), May 5, 1976, 90 Stat. 437;

Pub. L. 100–17, title I, §133(b)(6), Apr. 2, 1987, 101

Stat. 171; Pub. L. 102–240, title I, §1018(b), Dec.

18, 1991, 105 Stat. 1948.)

AMENDMENTS

1991—Subsec. (d). Pub. L. 102–240 substituted ‘‘106(c),

120,’’ for ‘‘120’’ and struck out at end ‘‘Payments for

construction engineering on any project financed with

Federal-aid highway funds shall not exceed 15 percent

of the Federal share of the cost of construction of such

project after excluding from the cost of construction

the costs of rights-of-way, preliminary engineering, and

construction engineering.’’

1987—Subsec. (d). Pub. L. 100–17 substituted ‘‘15 percent’’ for ‘‘10 per centum’’ and struck out at end ‘‘However, this limitation shall be 15 per centum in any

State with respect to which the Secretary finds such

higher limitation to be necessary.’’

1976—Subsec. (d). Pub. L. 94–280 substituted ‘‘Federalaid highway funds’’ for ‘‘Federal-aid primary, secondary, or urban funds’’ and struck out 10 per centum limitation provision for any project financed with interstate funds.

1973—Subsec. (a). Pub. L. 93–87 authorized payments

to be made for materials not in the construction vicinity where the Secretary determines that because of required fabrication at an off-site location the materials

cannot be stockpiled in such vicinity.

1963—Subsec. (d). Pub. L. 88–157 substituted ‘‘any

project financed with Federal-aid primary, secondary,

or urban funds’’ for ‘‘any one project’’ and provided for

limitation, on payments for construction engineering

on projects financed with Federal-aid primary, secondary, or urban funds, of 15 percent of Federal share of

cost of construction of the project where found by the

Secretary to be necessary and for 10–percent limitation

on projects financed with interstate funds.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102–240 effective Dec. 18, 1991,

and applicable to funds authorized to be appropriated

or made available after Sept. 30, 1991, and, with certain

exceptions, not applicable to funds appropriated or

made available on or before Sept. 30, 1991, see section

1100 of Pub. L. 102–240, set out as a note under section

104 of this title.

SUBMISSION OF RECOMMENDATIONS TO CONGRESS FOR

REIMBURSEMENT OF STATES FOR CERTAIN HIGHWAYS

Pub. L. 85–845, Aug. 28, 1958, 72 Stat. 1083, required

Secretary of Commerce, within ten days after first day

of first session of Eighty-sixth Congress, to submit to

Congress recommendations for legislation for purpose

of assisting Congress to determine whether or not to

reimburse each State of any portion of a toll or free

highway (1) which was on National System of Interstate and Defense Highways [now Dwight D. Eisenhower System of Interstate and Defense Highways], (2)

which met standards required by Federal-Aid Highway

Act of 1956 for such System of Interstate and Defense

Highways, and (3) construction of which had been completed since Aug. 2, 1947, or which had been in actual

use or under construction by contract, for completion,

awarded not later than June 30, 1957.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 122 of this title.

§ 122. Payments to States for bond and other

debt instrument financing

(a) DEFINITION OF ELIGIBLE DEBT FINANCING INSTRUMENT.—In this section, the term ‘‘eligible

debt financing instrument’’ means a bond or

other debt financing instrument, including a

note, certificate, mortgage, or lease agreement,

issued by a State or political subdivision of a

State or a public authority, the proceeds of

which are used for an eligible project under this

title.

(b) FEDERAL REIMBURSEMENT.—Subject to subsections (c) and (d), the Secretary may reimburse a State for expenses and costs incurred by

the State or a political subdivision of the State

and reimburse a public authority for expenses

and costs incurred by the public authority for—

(1) interest payments under an eligible debt

financing instrument;

(2) the retirement of principal of an eligible

debt financing instrument;

(3) the cost of the issuance of an eligible

debt financing instrument;

(4) the cost of insurance for an eligible debt

financing instrument; and

(5) any other cost incidental to the sale of an

eligible debt financing instrument (as determined by the Secretary).

(c) CONDITIONS ON PAYMENT.—The Secretary

may reimburse a State or public authority

under subsection (b) with respect to a project

funded by an eligible debt financing instrument

after the State or public authority has complied

with this title with respect to the project to the

extent and in the manner that would be required

if payment were to be made under section 121.

(d) FEDERAL SHARE.—The Federal share of the

cost of a project payable under this section shall

not exceed the Federal share of the cost of the

project as determined under section 120.

(e) STATUTORY CONSTRUCTION.—Notwithstanding any other provision of law, the eligibility of

an eligible debt financing instrument for reimbursement under subsection (b) shall not—

(1) constitute a commitment, guarantee, or

obligation on the part of the United States to

provide for payment of principal or interest on

the eligible debt financing instrument; or

(2) create any right of a third party against

the United States for payment under the eligible debt financing instrument.

(Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 900; Pub. L.

95–599, title I, §115(b), Nov. 6, 1978, 92 Stat. 2698;

Pub. L. 97–424, title I, §107(f), Jan. 6, 1983, 96

Stat. 2103; Pub. L. 100–17, title I, §133(b)(7), Apr.

2, 1987, 101 Stat. 171; Pub. L. 104–59, title III,

§311(a), Nov. 28, 1995, 109 Stat. 583.)

AMENDMENTS

1995—Pub. L. 104–59 amended section generally, substituting present provisions for provisions which authorized States to use portion of Federal highway payments to retire principal of bonds proceeds of which

were used for certain Federal highway projects.

1987—Pub. L. 100–17 inserted ‘‘or for substitute highway projects approved under section 103(e)(4) of this

title’’ before ‘‘and the retirement’’ in first sentence.

1983—Pub. L. 97–424 inserted ‘‘or for substitute highway projects approved under section 103(e)(4) of this

title,’’ after ‘‘highway systems in urban areas,’’ and ‘‘or

on highway projects approved under section 103(e)(4) of

this title’’ after ‘‘expenditure on such system’’.