You asked for a brief explanation of how federal funds transferred from construction program apportionment, to safety grants due to the “penalty transfer” required under federal law if a state has not passed a law prohibiting open containers of alcohol in motor vehicles could be used for a Safe Routes initiative similar to programs in California and Oregon.

Under federal law, states must pass and enforce a law prohibiting possession of open containers of alcohol by occupants of a motor vehicle that meets federal specifications or face a “penalty transfer” of federal funds. If a transfer is imposed, 3% of the annual apportionment of federal funds in three highway construction programs (Interstate Maintenance, National Highway System, and Surface Transportation Program) must be transferred to the state’s Section 402 Highway Safety Grant Program. These funds are not lost to the state.

Currently, Connecticut is under the open container penalty transfer. Approximately $ 5. 8 million, estimated by the Department of Transportation (DOT), has been transferred to the Section 402 program for federal FY 2003-04. Funds transferred to the Section 402 program under this penalty provision may be (1) used for alcohol-impaired driving countermeasures or directed to state and local law enforcement agencies for enforcement of laws prohibiting driving while intoxicated or other related laws, including the purchase of equipment, officer training, and the use of additional personnel for specific alcohol-impaired driving countermeasures or (2) spent on activities that are eligible expenditures under the hazard elimination program. To be spent on the latter, the DOT must reallocate all or any part of the transferred funds to hazard elimination construction activities in its annual safety plan submitted to federal authorities.

Federal law governing hazard elimination expenditures is broadly worded. It states that the federal transportation secretary “may approve as a project under this section any safety improvement project…” including projects that resolve problems that constitute a danger to motorists, bicyclists, and pedestrians (23 U. S. C. § 152). Funds may be spent on any (1) public road, (2) public surface transportation facility or publicly owned bicycle or pedestrian pathway or trail, or (3) traffic calming procedure.

Transferred funds used for hazard elimination activities are 100% federal, that is, no state matching amount is required (23 CFR Sec. 1270. 7(d)). Up to 10% of the transferred funds may be used for planning and administrative activities.

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