[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR420.107]

[Page 80]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 420_PLANNING AND RESEARCH PROGRAM ADMINISTRATION--Table of Contents
 
      Subpart A_Administration of FHWA Planning and Research Funds
 
Sec. 420.107  What is the minimum required expenditure of State planning 
and research funds for research development and technology transfer?

    (a) A State DOT must expend no less than 25 percent of its annual 
SPR funds on RD&T activities relating to highway, public transportation, 
and intermodal transportation systems in accordance with the provisions 
of 23 U.S.C. 505(b), unless a State DOT certifies, and the FHWA accepts 
the State DOT's certification, that total expenditures by the State DOT 
during the fiscal year for transportation planning under 23 U.S.C. 134 
and 135 will exceed 75 percent of the amount apportioned for the fiscal 
year.
    (b) Prior to submitting a request for an exception to the 25 percent 
requirement, the State DOT must ensure that:
    (1) The additional planning activities are essential, and there are 
no other reasonable options available for funding these planning 
activities (including the use of NHS, STP, MG, or FTA State planning and 
research funds (49 U.S.C. 5313(b)) or by deferment of lower priority 
planning activities);
    (2) The planning activities have a higher priority than RD&T 
activities in the overall needs of the State DOT for a given fiscal 
year; and
    (3) The total level of effort by the State DOT in RD&T (using both 
Federal and State funds) is adequate.
    (c) If the State DOT chooses to pursue an exception, it must send 
the request, along with supporting justification, to the FHWA Division 
Administrator for action by the FHWA Associate Administrator for 
Research, Development, and Technology. The Associate Administrator's 
decision will be based upon the following considerations:
    (1) Whether the State DOT has a process for identifying RD&T needs 
and for implementing a viable RD&T program.
    (2) Whether the State DOT is contributing to cooperative RD&T 
programs or activities, such as the National Cooperative Highway 
Research Program, the Transportation Research Board, and transportation 
pooled fund studies.
    (3) Whether the State DOT is using SPR funds for technology transfer 
and for transit or intermodal research and development to help meet the 
25 percent minimum requirement.
    (4) Whether the State DOT can demonstrate that it will meet the 
requirement or substantially increase its RD&T expenditures over a 
multi-year period, if an exception is granted for the fiscal year.
    (5) Whether Federal funds needed for planning exceed the 75 percent 
limit for the fiscal year and whether any unused planning funds are 
available from previous fiscal years.
    (d) If the FHWA Associate Administrator for Research, Development, 
and Technology approves the State DOT's request for an exception, the 
exception is valid only for that fiscal year's funds. A new request must 
be submitted and approved for subsequent fiscal year funds.

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