EP 1130-2-500
27 Dec 96
based upon Corps regulations and 40 CFR Parts 1500-1508. All NEPA documents should be
submitted with the Major Rehabilitation Report.
(5) Preparers. List who prepared which parts of the document report and their role.
h. Assessment of Alternatives.
(1) Critical Assumptions and Key Variables. For the Base Condition and each
alternative considered, there are critical assumptions and key variables that are influential in
estimating rehabilitation benefits and costs. In most instances these fall into the following
categories:
(a) the initial risk (base condition and other
alternatives),
(b) the annual rate of change in risk (base condition and
other alternatives),
(c) the risk after repair,
(d) the cost of repair,
(e) the opportunity costs during repair and rehabilitation,
(f) the change in annual O&M cost with rehabilitation or
other strategies, and
(g) the cost of each alternative.
The assessment should identify which of these variables is critical to reported economic
evaluation of each rehabilitation alternative. The assessment should display the reasonable range
for each of the critical variables identified and the sensitivity of the benefit-cost ratio and net
benefits over these possible values.
(2) Reporting of Statistical Results. The output from the analysis of reliability based
costs and benefits are statistics generated by analytical procedures or simulations involving
probabilities. The resulting estimated benefits (and costs), therefore, are statistics in the form of
means, variances, skews, etc. The reporting of the results of all alternatives should include a
tabular display of the mean net benefits and standard errors. In addition, the display should
provide a 90% confidence interval for the mean net benefits (mean+ 1.64x standard error)
assuming that net benefits are normally distributed. Appendix F provides displays for a
simplified example that can assist in developing the display of results for decision purposes.
i. Recommended Plan. Provide a recommendation supported by the engineering,
economic and environmental analysis. Present the benefit to cost ratio and net benefits using the
current Federal discount rate.
j. Major Rehabilitation Classification. Describe how the proposed project meets the
requirements for Major Rehabilitation funding and the Reliability and Efficiency Improvement
classification(s). Display benefits attributable to each classification and how costs are allocated
to each classification.
k. Project Cost Estimate. Show a schedule of fully funded project costs and a breakdown
of the Federal and non-Federal cost share, if applicable.
B-9
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