EP 1165-2-1
30 Jul 99
limitations. Essentially the same principles and standards apply for
these other purposes.
(4) Allocation of actual operation and ordinary maintenance
expenses is consistent with the basic allocation.
5-12. Identification of Non-Federal Sponsor Responsibilities in
Planning Reports. Section 221 of the Flood Control Act of 1970
requires that a written agreement be executed between the Secretary of
the Army and the non-Federal sponsor to identify the "items of local
cooperation" for Corps projects. Section 102 of WRDA 1986 added the
requirement for feasibility study cost sharing. The purpose of this
paragraph is to define what different types of planning reports must
say regarding general and specific responsibilities of the non-Federal
sponsor. This paragraph identifies those responsibilities in general
terms. The specific requirements of non-Federal sponsorship vary
according to the purpose(s) of the project. For definition of what
those specific requirements are, refer to the appropriate project
purpose chapter(s) (Chapters 12-20), presented later in this pamphlet.
a. Legal Basis. It is important to identify general and
specific responsibilities of the non-Federal sponsor in the
recommendations of the planning report because that document will
serve as the basis of understanding among the Federal Government, the
non-Federal sponsor and third parties who have an interest in or are
affected by the project. It is a general principle that the
requirements specified in the law or document prevail despite any
administrative direction or guidelines issued previously or
thereafter.
b.
Preauthorization Studies.
(1) Feasibility Studies. Feasibility studies, irrespective of
funding source, will identify the extent of non-Federal sponsor
responsibilities and the ability of the non-Federal sponsor to fulfill
its responsibilities. In the reconnaissance phase of the feasibility
study, the sponsor will provide a letter of intent (LOI) stating both
that the sponsor intends to sign the Feasibility Study Cost Sharing
Agreement (FCSA) and understands the cost sharing requirements and
financing options for project implementation. Prior to initiating the
feasibility phase of the study, the Federal Government and the non-
Federal sponsor will execute the FCSA, based on the Management Plan
which delineates the Federal and non-Federal responsibilities for the
study and prospective project. During the feasibility phase study,
and prior to the Feasibility Review Conference (FRC), a preliminary
draft PCA, a preliminary financial capability statement and supporting
financial information will be developed to establish implementability
of the project, as prescribed by the P&G. The process of developing
the draft PCA will ensure that the non-Federal sponsor has a clear
understanding of the type of agreement that they will be expected to
sign and its requirements prior to the start of construction. The
draft PCA will not be included in the draft feasibility report or
provided with it; rather, the PCA will be a subject for the FRC. In
addition, if flood control or agricultural water supply purposes are
to be included in the recommendations of the study, the report will
include an ability to pay analysis.
5-15
Previous Page
