Source: http://www.fhwa.dot.gov/programadmin/122305att.cfm
Timestamp: 2013-05-21 12:24:26
Document Index: 121008137

Matched Legal Cases: ['§117', '§323', '§ 117', '§120', '§120', '§117', '§117', '§1301', '§104', '§104', '§132', '§132', '§132']

12/23/05 Memo: Attachment -
Special Federal-aid Funding > Congressionally Designated Projects > HPP > 12/23/05 Memo: Attachment
Guidance updated 10/31/06.
Implementing Guidance(December 2005)
Section 1701(a) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, Public Law 109-59, 119 Stat. 1144) amended the High Priority Projects Program (HPP) in Section 117 of title 23, United States Code (U.S.C.), to include projects listed in section 1702 of SAFETEA-LU. The purpose of this guidance is to provide information on SAFETEA-LU HPP funding, Federal share, eligibility, flexibility, and transferability.
Section 1101(a)(16)of SAFETEA-LU authorizes $2,966,400,000 from the Highway Trust Fund (HTF) for each fiscal year (FY) from 2005 through 2009 for the high priority projects (HPP) listed in section 1702. Although the projects in section 1702 are numbered 1 through 5,173, there are only 5,091 actual projects, because no projects were associated with 82 of the HPP numbers in section 1702.
Under 23 U.S.C. §117(c), the amounts authorized for each HPP in section 1702 of SAFETEA-LU are to be allocated in 20 percent increments for fiscal years 2005 through 2009. The incremental share of these authorized amounts is used for calculating the equity bonus program apportionment under section 105 of title 23, U.S.C., as amended by section 1104 of SAFETEA-LU.
The special OA for HPPs 1 through 3676 is distributed by project and sections 1102(j) of SAFETEA-LU and 110(g) of the Transportation, Treasury, Housing and Urban Development, the Judiciary, and Independent Agencies Appropriations Act, 2006 (Public Law 109-115) allows the OA distributed in a fiscal year for these projects to be used for any other section 1702 project in the same State. Any OA used in this manner shall be restored to the original project when the following fiscal year's HPP OA is distributed. This provision does not allow the lending of contract authority for these projects.
States that choose to transfer OA from a HPP numbered 1 through 3676 to another HPP in the same State should submit requests to the FHWA Division Office. The Division Office will then submit the requests via e-mail to the Finance Division (HCF-20) of the Office of the Chief Financial Officer. The Finance Division will process the transfer of OA in FMIS and will send a confirmation e-mail to the FHWA Division Office when the transaction has been completed.
HPP 4850 - "Open space acquisition to mitigate growth associated with SR 4 and Interstate 95, by non-profit land conservation agencies through acquisition of fee or easement, with a match requirement of 50% of the total purchase price". The non-Federal share match for land acquisition for this project is 50 percent.
In accordance with 23 U.S.C. §323, as amended by section 1902 of SAFETEA-LU, private donations of right-of-way, funds, materials, or services may be used toward the non-Federal share on any eligible title 23, U.S.C. project. Also, local government donations of right-of-way, funds, materials, or services performed by local government employees may be used toward the non-Federal share on any eligible title 23, U.S.C. project. Since the SAFETEA-LU HPPs are designated under 23 U.S.C. § 117, they are eligible for the above donations.
Under the provisions of 23 U.S.C. §120(j), as amended by sections 1116 and 1905 of SAFETEA-LU, toll credits may be used towards the 20 percent non-federal matching share for programs authorized by title 23, U.S.C. and for transit programs authorized by chapter 53 of title 49, U.S.C. with the exception of the Emergency Relief and the Appalachian Development Highway System programs. Toll credits can be applied at any time during the development and implementation of the project, including after execution of the initial project agreement. A State may use amounts of approved toll credits to cover all or a portion of the non-Federal share of the project which could result in up to 100 percent of the cost being borne by Federal funds on the project (with the State meeting its matching share requirement by providing a non-cash credit). To be able to earn toll credits to apply toward the non-Federal share of a project, the State must satisfy the Maintenance of Effort determination and other provisions set forth in 23 U.S.C. §120(j). Please refer to the Implementing Guidance for the Toll Credit program for further details.
In accordance with 23 U.S.C. §117(f), HPP funds shall be available until expended. The special OA is also available until used as specified under the provisions of 23 U.S.C. §117(g), as amended by section 1701(d) of SAFETEA-LU.
Under the provisions of section 1935 of SAFETEA-LU, States are allowed to advance or allocate CA (and OA associated with the CA) between sections and projects in the same State as described in section 1935(b). The funds for these projects may be advanced and obligated for a project, but shall not ultimately reduce the authorized amount as designated in SAFETEA-LU for the projects. That requirement dictates that any advances be recredited to the account from which the advance is made by the account which receives the advance, as described in section 1935 of SAFETEA-LU. The sections and projects are as follow:
Any CA used in this manner shall be restored, to the original project(s) from which it was advanced, before the end of FY 2009. Any OA used in this manner will automatically be restored, to the original project(s) from which it was advanced, in the following fiscal year. The State will be required to resubmit requests to have the OA transferred back to projects from which the OA was advanced. This action is being required annually because of the difficulty in tracking and reconciling funds that have been advanced across programs. Also, any request for CA and OA that has not yet been allocated will be limited to 85 percent of the authorized amount, in order to conservatively account for future obligation limitation.
States that choose to advance or allocate CA (and OA associated with the CA) between sections and projects in the same state as described in section 1935(b) should submit requests to the FHWA Division Office. The Division Office will then submit the request via e-mail to the Finance Division (HCF-20) of the Office of the Chief Financial Officer. The Finance Division will process the advance of CA and OA in FMIS and will send a confirmation e-mail to the FHWA Division Office when the transaction has been completed.
The HPP funds for a project would otherwise not be able to be fully utilized on the HPP because of prior obligation of apportioned funds, thus preventing the ability to fulfill the congressional intent of the HPP. In these instances, as a matter of agency practice, the FHWA has allowed the deobligation of apportioned funds and the reobligation with the HPP funds in order to ensure that HPP funds are fully obligated and expended on the HPP. The State must provide documentation to the Division Office that demonstrates that the HPP funds cannot be fully utilized except through deobligation of apportioned funds and the reobligation with the HPP funds. Acceptable documentation includes information that there is not another eligible project that would satisfy the scope of work as described in the project description. Additionally, adequate documentation should be provided to that demonstrate that the deobligation of apportioned funds, and the reobligation of HPP funds occurred with funding that was obligated no earlier than August 10, 2005.
The project descriptions, as shown in section 1702 of SAFETEA-LU, define the scope of work for the project on which the funds may be legally expended. Funding for a project can only be used for the activities within the scope and the physical limits as defined by the project description. Project descriptions that list recipients, not projects, will require that the recipients utilize the funds for projects that are eligible for Federal-aid funding.
If the HPP, as described in section 1702, would be eligible under one of the FHWA's regular Federal-aid programs, then it is eligible for funding with HPP funds (following the eligibility rules of the applicable Federal-aid program). For example, if a project is eligible under the Transportation Enhancement Program, it must follow the eligibility rules that would apply to an enhancement project funded with Surface Transportation Program (STP) funds in order to be eligible for the HPP funds. In the case of a HPP that would be otherwise eligible as a CMAQ project (including any process that must be undertaken to justify the use of CMAQ funds), then the HPP is advanced under the eligibility rules that would apply to a CMAQ project in order to be eligible for the HPP funds.
If, however, the HPP, as described in section 1702, would not normally be eligible under one of FHWA's regular Federal-aid programs, then the project description in section 1702 should specifically identify those activities to be funded. In order to fund projects or activities not otherwise eligible for Federal-aid funding under title 23, U.S.C., a statutory designation of Federal-aid funds must explicitly describe the project to be funded. An explicit project description serves as statutory authority to fund the activity or project with title 23, U.S.C., funds consistent with "the purpose" of the statutory designation. See 31 U.S.C. §1301(a), "the purpose" statute.
In cases where generally stated HPPs are obviously not normally eligible Federal-aid highway projects, an effort to obtain congressional intent of the project should be made by entities other than FHWA. Please note that a letter from a congressperson or their staff cannot establish congressional intent.
Unlike appropriation act provisions that contain savings provisions, which permit funding to be shifted to otherwise eligible title 23 projects, the authorization act does not provide the Secretary the discretion to shift funding to otherwise eligible title 23 projects. Thus, any changes to project descriptions have to be accomplished through legislation.
Projects transferred in this manner shall adhere to the Federal share requirements established for the projects in title 23, U.S.C. In accordance with the established procedures, the FTA will certify annually that the transferred funds are being used for the intended purpose, which, for an HPP project, is the project description in section 1702 of SAFETEA-LU.
To initiate transfers for HPPs that are to be transferred to FTA, the State should submit a request to the FHWA Division Office indicating the amount of CA and an equal amount of OA to be transferred. The request should include how the non-Federal share match requirement will be satisfied. The Division Office will forward the request via e-mail to the Finance Division (HCF-20) of the Office of the Chief Financial Officer, with a copy to the Office of Program Administration. The Finance Division will process the withdrawal of funds and OA from the State in FMIS and will send an e-mail confirmation to the Budget Division. The Budget Division will then issue allotments to the appropriate Federal agencies and send e-mail confirmation to the FHWA Division Office, with a copy to the Office of Program Administration, when the transaction has been completed.
Under the provision of 23 U.S.C. §104(k)(3), as amended by section 1108 of SAFETEA-LU, funds apportioned or allocated to a State under title 23, U.S.C., may be transferred to another State or to the FHWA, Office of Federal Lands Highway (FLH) for eligible projects, at the State's request. Since the HPP funds are allocated under title 23, U.S.C., the HPP may be transferred under the provisions of 23 U.S.C. §104(k).
For transfers from State to State, the State transferring the project should submit requests to the FHWA Division Office indicating the amount of CA and OA to be transferred to another State. Additionally, the State receiving the transferred CA and OA must submit a letter acknowledging the project that will utilize the funds. The Division Office will forward the transfer request and acknowledgement, via e-mail, to the Office of Program Administration. The Office of Program Administration will assign a new Demo ID for the acknowledging State and issue a memo requesting that the Finance Division (HCF-20) of the Office of the Chief Financial Officer withdraw CA and OA from the State transferring the project and allocate the same to the State acknowledging the transfer. The Finance Division will process the transfer of CA and OA in FMIS and send an e-mail confirmation to the FHWA Division Office, with a copy to the Office of Program Administration, when the transaction has been completed.
A Federal-aid highway project may be transferred to another Federal agency, but the project must meet the eligibility requirements of the FHWA prior to being transferred. Under the provisions of 23 U.S.C. §132, as amended by section 1119 of SAFETEA-LU, a State may enter into an agreement with a Federal agency to have a Federal-aid project "undertaken" by the Federal agency. The term "undertaken" is interpreted to mean that the Federal agency must actually administer the project or carry out an activity necessary to the project, either with its own forces or through a contract with the appropriate private company. The State may request a direct transfer of funds for the Federal share of the project to the Federal agency [23 U.S.C. §132(a)(1)] or make a deposit or payment to the Federal agency as is required under the agreement for the work to be undertaken by the Federal agency [23 U.S.C. §132(a)(1)] and be reimbursed. In cases where State Law prohibits a direct transfer to a FLMA, FLH will continue the practice of administering the project with the FLMA.
For non-traditional projects unrelated to highway improvements or other eligible activities under title 23, the receiving Federal agency can administer the project in accordance with their own appropriate Federal requirements with the following exceptions:
The funds for these projects may be only used for the purposes specified in the project description in section 1702 of SAFETEA-LU. These funds may not be used for the Federal agency's administrative expenses and require a 20 percent match that must come from non-Federal sources. In general, it is expected that the Federal agency will administer the project in accordance with their appropriate Federal requirements.