1. PURPOSE. To advise of the limitation on Federal-aid highway program obligations for FY 1999 and the distribution among the States.
2. LIMITATION - LEGISLATIVE PROVISIONS
   1. The Omnibus Consolidated and Emergency Supplemental Appropriations Act for Fiscal Year 1999, and the Transportation Equity Act for the 21st Century (TEA-21), as amended, provide for the limitation on obligations.
   2. The total obligations for Federal-aid highway and highway safety construction programs shall not exceed $25,511,000,000 for FY 1999.
   3. The limitation under subsection (b) shall not apply to obligations under:

      (1) Section 125 of Title 23, United States Code (U.S.C.);

      (2) Section 147 of the Surface Transportation Assistance Act of 1981;

      (3) Section 9 of the Federal-Aid Highway Act of 1981;

      (4) Sections 131(b) and 131(j) of the Surface Transportation Assistance Act of 1982;

      (5) Sections 149(b) and 149(c) of the Surface Transportation Relocation Assistance Act of 1987;

      (6) Sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA);

      (7) Section 157 of Title 23, U.S.C., as in effect on the day before the date of enactment of TEA-21;

      (8) Section 105 of Title 23, U.S.C. (but, for each of the fiscal years 1998 through 2007), only in an amount equal to $639,000,000 per fiscal year; and

      (9) Section 218, Title 23, U.S.C.
3. ALLOCATED ACCOUNTS
   1. Amounts authorized for administrative expenses and funded from the administrative takedown authorized by Section 104(a) of Title 23, U.S.C., the amount authorized for the highway use tax evasion program and for the Bureau of Transportation Statistics are subject to the limitation on obligations, but are excluded from the State-by-State distribution.
   2. Unobligated balances of funds from previous fiscal years that are allocated by the Secretary are subject to the limitation on obligations, but are excluded from the State-by-State distribution.
   3. Pursuant to provisions in the Omnibus Consolidated and Emergency Supplemental Appropriations Act for FY 1999, the obligation of funds authorized for Intelligent Transportation Systems for FY 1999 shall not exceed $200,000,000 and the obligation of funds authorized for Transportation Research programs for FY 1999 shall not exceed $178,150,000 within the overall obligation limitation of $25,511,000,000. Amounts remaining available for obligation which were authorized for such programs in FY 1998 shall be in addition to the overall obligation limitation for FY 1999.
   4. Amounts that are allocated to the States will be covered by an equal amount of obligation limitation, which will be distributed with the allocation of the funds, except for allocations under the Ferry Boat and Ferry Terminal Facility Program. Obligation limitation under this program will be controlled centrally and distributed on an "as needed" basis.
4. REDISTRIBUTION OF CERTAIN AUTHORIZED FUNDS
   1. Pursuant to Section 1102(f) of TEA-21 and 310(e) of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, the Secretary shall distribute to the States any funds authorized to be appropriated for such fiscal year for Federal-aid highway programs that are allocated by the Secretary, that the Secretary determines will not be allocated to the States and will not be available for obligation due to the imposition of any obligation limitation for FY 1999.
   2. Such distribution to the States shall be accomplished within 30 days of the date of this Notice. The funds so distributed shall be available for any purposes described in Section 133(b) of Title 23, U.S.C.
   3. Headquarters' program offices will be notified by the Office of Budget and Finance of the reduction in contract authority for programs they administer due to the imposition of the obligation limitation for FY 1999.
5. OBLIGATION LIMITATION DISTRIBUTED TO THE STATES
   1. The Attachment shows the amount of formula obligation limitation distributed to each State for FY 1999. Each State receives a proportional amount of obligation limitation available to be distributed to the States based on the ratio that each State's total apportionments subject to the limitation on obligations bears to the total of such apportionments to all States.
   2. After August 1, 1999, the Secretary will revise the distribution of limitation made available if a State does not plan to obligate the amount distributed during FY 1999 and redistribute such amount to those States able to obligate amounts, in addition to those previously distributed during FY 1999. The redistribution will give priority to those States having large unobligated balances of funds apportioned under Title 23, U.S.C., Sections 104 and 144; Section 160 of Title 23 (as in effect on the day before enactment of TEA-21; and Section 1015 of ISTEA.
6. SPECIAL LIMITATION
   1. Section 1102(c)(4) of TEA-21 and Section 310(a)(4) of the Omnibus Consolidated and Emergency Supplemental Appropriations Act for FY 1999, provides for an obligation limitation within the overall obligation ceiling of $25,511,000,000 for the funds authorized under the following:

      (1) Section 117 of Title 23, U.S.C. (relating to high priority projects program);

      (2) Section 201 of the Appalachian Regional Development Act of 1965;

      (3) the Woodrow Wilson Memorial Bridge Authority Act of 1995; and

      (4) $2,000,000,000 for Section 105 of Title 23, U.S.C., (relating to minimum guarantee).

   2. This special limitation associated with the programs listed above shall remain available until used for the obligation of funds for which distributed and shall be in addition to any amount of any limitation imposed for future fiscal years.
   3. The State-by-State distribution of the special limitation associated with minimum guarantee and the Appalachian Regional Development Act of 1965 for FY 1999 is also shown on the Attachment. The special limitation associated with High Priority Projects, and the Woodrow Wilson Memorial Bridge Authority Act, will be distributed at the time funds are allocated to the States.
7. ACTION. Division Administrators should ensure that copies of this Notice are provided to State Transportation Agencies.

Original signed by,

Kenneth R. Wykle
Administrator