[Federal Register Volume 60, Number 138 (Wednesday, July 19, 1995)]
[Rules and Regulations]
[Pages 36991-36993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17567]
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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
23 CFR Part 630
[FHWA Docket No. 95-10]
RIN 2125-AD59
Advance Construction of Federal-Aid Projects
AGENCY: Federal Highway Administration (FHWA), DOT.
ACTION: Interim final rule with request for comments.
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SUMMARY: The FHWA is amending its regulation on advance construction of
Federal-aid highway projects to incorporate changes made by the Dire
Emergency Supplemental Appropriations Act, 1992, Pub. L. 102-302, 106
Stat. 248, and to provide more flexible funding arrangements for the
States.
DATES: This interim final rule is effective July 19, 1995. Comments
must be received by September 18, 1995.
ADDRESSES: All written, signed comments should refer to FHWA Docket No.
95-10, Room 4232, HCC-10, Office of the Chief Counsel, Federal Highway
Administration, 400 Seventh Street SW., Washington, D.C. 20590. All
comments received will be available for examination at the above
address between 8:30 a.m. and 3:30 p.m., e.t., Monday through Friday,
except Federal holidays. Those desiring notification of receipt of
comments must include a self-addressed, stamped postcard.
FOR FURTHER INFORMATION CONTACT:
Max I. Inman, Office of Fiscal Services, (202) 366-2853, or Steve M.
Rochlis, Office of the Chief Counsel, (202) 366-0761, Federal Highway
Administration, 400 Seventh Street SW., Washington, D.C. 20590. Office
hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday through Friday,
except Federal holidays.
SUPPLEMENTARY INFORMATION: The Dire Emergency Supplemental
Appropriations Act, 1992, Pub. L. 102-302, 106 Stat. 248, included a
revision to section 115 of title 23, U.S.C., to authorize advance
construction on surface transportation program projects and other
technical changes.
Section 115 allows States to advance the construction of Federal-
aid highway projects without requiring that Federal funds be obligated
at the time the FHWA approves the project. States may proceed with
projects using only State funds and then request that Federal funds be
made available at a later time.
The Dire Emergency Supplemental Appropriations Act, 1992, made the
following changes to 23 U.S.C. 115:
(a) Authorized advance construction on the surface transportation
program, the national highway system, and congestion mitigation and air
quality improvement program projects.
(b) Limited the amount which may be approved for advance
construction to a State's expected apportionments.
In addition to the changes made by the Dire Emergency Supplemental
Appropriations Act, 1992, the regulation is being revised to provide
additional flexibility to the States by allowing partial conversions of
advance construction instead of requiring the full amount to be
converted at one time.
Section-by-Section Analysis
Section 630.701 Purpose
There are no changes to this section.
Section 630.703 Eligibility
This section is revised to authorize advance construction on the
surface transportation program, the national highway system, congestion
mitigation and air quality improvement programs, and delete references
to the secondary, urban, rail-highway crossing, and hazard elimination
programs which are no longer eligible for advance construction
projects.
Section 630.705 Procedures
There are no changes to this section.
Section 630.707 Limitation
This section is revised to remove the previous limitation which
provided States with a window (January 1, 1987 to September 30, 1990)
in which advance construction projects could be approved for a State up
to its expected apportionments plus an amount equal to one additional
year of apportionment (except for Interstate construction), and to add
the new limitation on advance construction approvals.
Section 630.709 Conversion to a Regular Federal-Aid Project
This section is revised to remove paragraph (b) and to redesignate
paragraph (c) as (b). Removing paragraph (b) provides flexibility to
the States when converting projects to regular funding by allowing
partial conversions instead of requiring the full amount to be
converted at one time, as paragraph (b) provided.
[[Page 36992]]
Section 630.711 Payment of Bond Interest
There are no changes to this section.
Rulemaking Notices and Analyses
With regard to the amendments made by this interim final rule in
accordance with the Dire Emergency Supplemental Appropriations Act, the
FHWA finds that prior notice and opportunity for comment are
unnecessary under 5 U.S.C. 553(b)(3)(B) and that good cause exists to
dispense with the 30-day delayed effective date ordinarily required
under 5 U.S.C. 553(d) because these changes are statutorily mandated.
Therefore, the FHWA is not exercising discretion in a way that could be
meaningfully affected by public comment.
In addition, the amendment allowing States to partially convert
advance construction projects to regular Federal-aid projects removes
the restriction on such conversions which required the full Federal
share of project costs to be converted at one time. Thus, this action
``grants or recognizes an exemption or relieves a restriction'' in
accordance with 5 U.S.C. 553(d)(1) and therefore is exempted from the
30-day delayed effective date requirement.
In an April 8, 1994, Federal Register notice, the FHWA announced
its Innovative Financing Test and Evaluation Project to provide
incentives to encourage States, private investors, and the financial
community to increase investment in surface transportation projects, 59
FR 16889. The modification to the advance construction conversion
provision included in this interim final rule has been made at the
request of several States in response to this project, and will provide
States with the option of partially converting advance construction
projects to regular Federal-aid projects; States may continue to fully
convert projects if they would like to do so. Therefore, the FHWA has
concluded that prior notice and opportunity for comment on this effort
to provide more flexible funding arrangements for the States, at their
request, are unnecessary under 5 U.S.C. 553(b)(3)(B).
For these reasons, the FHWA has also determined that prior notice
and opportunity for comment are not required under the Department of
Transportation's regulatory policies and procedures, as it is not
anticipated that such action would result in the receipt of useful
information. Therefore, the FHWA is proceeding directly to an interim
final rule which is effective upon its date of publication.
Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures
The FHWA has determined that this action is not a significant
action within the meaning of Executive Order 12866 or significant
within the meaning of Department of Transportation regulatory policies
and procedures. This rule affects the manner in which State highway
agencies financially administer project obligations. This interim final
rule will permit States to proceed with projects using only State funds
and then request that Federal funds be made available at a later time.
This amendment will provide States with an additional financing option
which they may choose to use to more effectively manage their Federal
apportionments. This rule will not result in a major increase in costs
or prices for State or local governments and will not have an adverse
effect on competition, employment, investment, productivity, innovation
or on the ability to compete with foreign enterprises. It is
anticipated that the economic impact of this rulemaking will be
minimal; therefore, a full regulatory evaluation is not required.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the FHWA has evaluated the effects of this rule on small
entities.
This rulemaking is directed toward State governments, and it is
initiated in order to implement a statutory mandate. The primary impact
of this action will be to provide the States with additional
flexibility in using advance construction procedures. Based on this
evaluation, the FHWA hereby certifies that this action will not have a
significant economic impact on a substantial number of small entities.
Executive Order 12612 (Federalism Assessment)
This action has been analyzed in accordance with the principles and
criteria contained in Executive Order 12612, and it has been determined
that this action does not have sufficient federalism implications to
warrant the preparation of a federalism assessment. This rule does not
impose additional costs or burdens on the States, including the likely
source of funding for the States nor does it affect the ability of the
States to discharge traditional State governmental functions. The
primary intent of this rule is to provide the States with additional
flexibility in using advance construction procedures.
Executive Order 12372 (Intergovernmental Review)
Catalog of Federal Domestic Assistance Program Number 20.205,
Highway Planning and Construction. The regulations implementing
Executive Order 12372 regarding intergovernmental consultation on
Federal programs and activities apply to this program.
Paperwork Reduction Act
This action does not contain a collection of information
requirement for the purpose of the Paperwork Reduction Act of 1980, 44
U.S.C. 3501-3520.
National Environmental Policy Act
The agency has analyzed this section for the purpose of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and
has determined that this action would not have any effect on the
quality of the environment.
Regulation Identification Number
A regulation identification number (RIN) is assigned to each
regulatory action listed in the Unified Agenda of Federal Regulations.
The Regulatory Information Service Center publishes the Unified Agenda
in April and October of each year. The RIN contained in the heading of
this document can be used to cross reference this action with the
Unified Agenda.
List of Subjects in 23 CFR Part 630
Bonds, Government contracts, Grant programs--transportation,
Highways and roads, Reporting and recordkeeping requirements.
Issued on: July 11, 1995.
Rodney E. Slater,
Federal Highway Administrator.
In consideration of the foregoing, the FHWA is amending title 23,
Code of Federal Regulations, chapter I, part 630 as set forth below.
PART 630--PRECONSTRUCTION PROCEDURES
1. The authority citation for part 630 is revised to read as
follows and all other authority citations which appear throughout part
630 are removed:
Authority: 23 U.S.C. 101(a), 104, 105, 106, 109, 110, 113, 115,
118, 120(e), 121(c), 125, 134, 315, 320, and 402(a); 23 CFR 1.32,
630; and 49 CFR 1.48(b).
SUBPART G--[REVISED]
2. Subpart G of part 630 is revised to read as follows:
[[Page 36993]]
Subpart G--Advance Construction of Federal-Aid Projects
Sec.
630.701 Purpose.
630.703 Eligibility.
630.705 Procedures.
630.707 Limitation.
630.709 Conversion to a regular Federal-aid project.
630.711 Payment of bond interest.
Subpart G--Advance Construction of Federal-Aid Projects
Sec. 630.701 Purpose.
The purpose of this subpart is to prescribe procedures for
advancing the construction of Federal-aid highway projects without
obligating Federal funds apportioned or allocated to the State.
Sec. 630.703 Eligibility.
(a) The State Highway Agency (SHA) may proceed with a highway
substitute, congestion mitigation and air quality improvement program,
surface transportation program, bridge replacement and rehabilitation,
or planning and research project in accordance with this subpart,
provided the SHA:
(1) Has obligated all funds apportioned or allocated to it under 23
U.S.C. 103(e)(4)(H), 104(b)(2), 104(b)(3), 104(f), 144, or 307, as the
case may be for the proposed project, or
(2) Has used all obligation authority distributed to it, or
(3) Demonstrates that it will use all obligation authority
distributed to it.
(b) The SHA may proceed with a National Highway System (NHS) or
Interstate project in accordance with this subpart without regard to
apportionment or obligation authority balances. Interstate projects
include Interstate construction and Interstate maintenance.
Sec. 630.705 Procedures.
(a) An advance construction project shall meet the same
requirements and be processed in the same manner as a regular Federal-
aid project, except,
(1) The FHWA authorization does not constitute any commitment of
Federal funds on the project, and
(2) The FHWA shall not reimburse the State until the project is
converted under Sec. 630.709.
(b) Project numbers shall be identified by the letters ``AC''
preceding the regular project number prefix.
(c) If the SHA plans to claim bond interest costs under
Sec. 630.711, it shall include in its request for authorization the
estimated federally participating bond interest cost.
(d) The SHA shall submit a final voucher to the FHWA upon
completion of the project even though the project has not been
converted. If the SHA is claiming bond interest costs under
Sec. 630.711, it shall certify on the final voucher that the bond
proceeds were expended in the construction of the project and shall
include a computation of the eligible interest costs.
Sec. 630.707 Limitation.
A request to approve an advance construction project is limited to
a State's expected apportionment of authorized funds which are eligible
to finance the project.
Sec. 630.709 Conversion to a regular Federal-aid project.
(a) The SHA may submit a written request to the FHWA that a project
be converted to a regular Federal-aid project at any time provided that
sufficient Federal-aid funds and obligation authority are available.
(b) Subsequent to FHWA approval the SHA may claim reimbursement for
the Federal share of project costs incurred, provided the project
agreement has been executed. If the SHA has previously submitted a
final voucher, the FHWA will process the voucher for payment.
Sec. 630.711 Payment of bond interest.
(a) For Interstate projects authorized by the FHWA after January 6,
1983, and for Interstate 4R, Interstate maintenance, primary and NHS
projects authorized by the FHWA after April 2, 1987, interest earned
and payable on bonds issued by a State is an eligible cost of
construction as follows:
(1) Participating interest cost is based on the actual expenditure
of bond proceeds on the Federal-aid project. The interest on the bonds
is applied to the amount of bond proceeds expended on the project from
the date of expenditure.
(2) The amount of interest determined in paragraph (a)(1) of this
section shall not exceed the estimated increase in the physical
construction cost of the project which would have occurred had the
project been authorized on the date of conversion. The estimated
increase in the physical construction cost is determined by applying
the increase, if any, in the national construction cost index in effect
on the date of conversion over the index in effect on the date of the
FHWA authorization, to the actual cost of physical construction.
(b) For Interstate projects under physical construction on January
1, 1983, and converted to a regular Federal-aid project after January
1, 1983, bond interest is eligible in accordance with paragraph (a)(1)
of this section. The restriction in paragraph (a)(2) of this section
does not apply.
[FR Doc. 95-17567 Filed 7-18-95; 8:45 am]
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