MC-ESS-0102-212-0002

January 24, 2002
ACTION: Motor Carrier Safety Assistance
Program (MCSAP) FY 2002 Basic Program
and Incentive Formula Distribution
/S/
MC-ESS
F. Daniel Hartman
Chief, Safety Programs Division

Division Administrators/State Directors, FMCSA

The DOT Appropriations Bill for FY 2002, signed by President Bush on December 18,
2001, includes a limitation on obligations for the MCSAP of $160,000,000. While the
$160 million appropriation is consistent with the MCSAP authorization level, the
distribution of funding to the various categories within MCSAP was modified by
Congress. FY 2002 MCSAP funding has been provided in the following manner:

Basic program funds $129,111,000
Incentive funds $ 9,000,000
Border assistance $ 10,000,000
High priority funds $ 10,000,000
State training and administration $ 1,889,000

Basic program grants are available to the MCSAP States (by formula, as defined in 49
CFR Part 350.323) to implement approved CVSPs that address State-specific problems
and support the national program elements ('350.109). The formula statistics have
been updated to reflect the most current available data. A 50 percent reduction has
been made for those States with incompatible intrastate regulations (Florida, Maine, and
South Dakota).

Incentive grant funds are awarded to the MCSAP States that meet the incentive
performance factors defined in '350.327. Incentive funds may be used for any MCSAP-
eligible commercial motor vehicle safety purpose, as justified by a problem statement
with supporting program plan and approved by the Division Administrator/State Director
(DA/SD).

Border assistance funding is available to the U.S. Border States to ensure the continued
improvement of commercial motor vehicle safety as we work to implement the cross-
border provisions of the North American Free Trade Agreement (NAFTA). The grants
are available to both the Southern and Northern border States and will be allocated
based on needs documented in the States' proposals. In addition, the FY 2002

Appropriations Act provides $18 million for Arizona, California, New Mexico, and Texas
to hire border truck safety inspectors and $54 million for State border infrastructure
improvements. Requests for these border-related funding categories are being
coordinated to ensure that all activities are consistent with the States' overall
enforcement programs and our national goals. Grants under these three categories are
awarded separately and will be allocated shortly.

High priority activity funds are used for national commercial motor vehicle safety
initiatives. States may submit high priority-funding proposals through their DA/SDs for
consideration should funds become available.

State training and administration funding is provided for administration of the MCSAP.
At least 75 percent of the funding is provided to the FMCSA National Training Center to
support State training needs.

Grant Administration Procedures:

Attachment A provides project numbers and amounts allocated for MCSAP basic
program and incentive grant funding for each eligible State. Through a copy of this
memo to the headquarters FMIS team, we are requesting that these amounts be
allocated from appropriation code/accounting string X212 A50 900 212050.

Please complete negotiations and execute a MCSAP-2 grant agreement in the amount
not to exceed that listed in the TOTAL ALLOCATION column on Attachment A. The
grant agreement effective date is retroactive to October 1, 2001, with an expiration date
of September 30, 2002. After executing the grant agreement, please provide a copy of
this memorandum and the MCSAP-2 grant agreement to the FHWA Division Finance
Office for the recording of the obligation into the Fiscal Management Information System
(FMIS) on appropriation X212 A50 900 212050. A copy of the executed MCSAP-2 and
any negotiation documents and/or revised budget pages are to be forwarded to Christine
Jennings, MC-ESS, within 15 days of execution.

You may notice that the MCSAP project numbers are somewhat different than in
previous years. The revised project numbering system is necessary to meet new
requirements of the FHWA's FMIS 4.0. State program policy directive SP-02-002-FI,
issued concurrently with this allocation memo, provides detailed information about the
revised project numbering system.

You are reminded that fiscal year 2001 basic program grant final vouchers are due 90
days after the end of the fiscal year, which would be December 30, 2001. However, as
a result of the delay in FY 2002 allocations, many States with remaining funds extended
the FY 2001 MCSAP grant period to December 31, 2001. For those States, final
vouchers are due by the end of March 2002. As usual in the unlikely event a State has
remaining FY 2001 funds, those funds may be rolled to the FY 2002 basic program grant
by executing a MCSAP-2A form, provided a justification, including a problem statement,
supporting program plan, and a revised budget, has been approved by the DA/SD.

If you have any questions, please contact your Headquarters Coordinator in the State
Programs Division at (202) 366-9579.

Attachment

FMCSA:MC-ESS:dsnider:62941:1/8/02
cc: Reader, 1-for each in the division,
1-each Service Center, LFloyd
H:/dsnider/2002mcsap/02allocationmemo