[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR630.106]

[Page 146-147]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 630--PRECONSTRUCTION PROCEDURES--Table of Contents
 
              Subpart A--Federal-Aid Project Authorization
 
Sec. 630.106  Authorization to proceed.

    (a) The FHWA issuance of an authorization to proceed with a Federal-
aid project shall be in response to a written request from the State 
highway agency (SHA). Authorization can be given only after applicable 
prerequisite requirements of Federal laws and implementing regulations 
and directives have been satisfied.
    (b) Federal funds shall not participate in costs incurred prior to 
the date of authorization to proceed except as provided by 23 CFR 
1.9(b).
    (c) Authorization of a Federal-aid project shall be deemed a 
contractual obligation of the Federal government under 23 U.S.C. 106 and 
shall require that appropriate funds be available at the time of 
authorization for the total agreed Federal share, either pro rata or 
lump sum, of the cost of eligible work to be incurred by the State, 
except as follows:
    (1) Advance construction projects authorized under 23 U.S.C. 115.
    (2) Projects for preliminary studies for the portion of the 
preliminary engineering and right-of-way (ROW) phase(s) through the 
selection of a location.
    (3) Projects for ROW acquisition in hardship and protective buying 
situations through the selection of a particular location. This includes 
ROW acquisitions within a potential highway corridor under consideration 
where necessary to preserve the corridor for future highway purposes. 
Authorization of work under this paragraph shall be in accordance with 
the provisions of 23 CFR part 710.
    (4) In special cases where the Federal Highway Administrator 
determines it to be in the best interest of the Federal-aid highway 
program.
    (d) The authorization to proceed with a project under 23 CFR 
630.106(c)(1) through (c)(4) shall contain the following statement: 
``Authorization to proceed shall not constitute any commitment of 
Federal funds, nor shall it be construed as creating in any manner any 
obligation on the part of the Federal government to provide Federal 
funds for that portion of the undertaking not fully funded herein.''
    (e) When a project has received an authorization under 23 CFR 
630.106(c)(2) and (c)(3), subsequent authorizations beyond the location 
stage shall not be given until appropriate available funds have been 
obligated to cover eligible costs of the work covered by the previous 
authorization.
    (f)(1) The Federal-aid share of eligible project costs shall be 
established at the time of project authorization in one of the following 
manners:

[[Page 147]]

    (i) Pro rata, with the authorization stating the Federal share as a 
specified percentage, or
    (ii) Lump sum, with the authorization stating that Federal funds are 
limited to a specified dollar amount not to exceed the legal pro rata.
    (2) The pro-rata or lump sum share may be adjusted before or shortly 
after contract award to reflect any substantive change in the bids 
received as compared to the SHA's estimated cost of the project at the 
time of FHWA authorization, provided that Federal funds are available.
    (3) Federal participation is limited to the agreed Federal share of 
eligible costs incurred by the State, not to exceed the maximum 
permitted by enabling legislation.
    (g) The State may contribute more than the normal non-Federal share 
of title 23, U.S.C., projects. In general, financing proposals that 
result in only minimal amounts of Federal funds in projects should be 
avoided unless they are based on sound project management decisions.

[61 FR 35632, July 8, 1996, as amended at 64 FR 71289, Dec. 21, 1999]