EP 1165-2-1
30 Jul 99
CHAPTER 6
PROJECT COST SHARING AND REPAYMENT
6-1. Principles and Objectives of Cost Sharing. A fundamental
objective of the Congress in authorizing Federal participation in
water resources development is to insure that such action makes an
optimum contribution to the public good. At the same time, Congress
has sought to maintain a reasonable balance between the
responsibilities assumed by the Federal Government and those left with
the states and other non-Federal entities. A planning agency,
accordingly, must carefully consider all available specific
indications in law as well as those principles and policies defined by
Congress. As reflected in existing Federal water resources
legislation, Congress has established generally that the Federal
Government:
a. Should undertake only those activities which local levels of
government or private enterprise cannot do as readily or as well from
the standpoint of the national interest;
b. May bear a part of the costs of projects and programs that
benefit the Nation as a whole, or are deemed necessary to protect the
interest of future generations, particularly in those fields in which
profit-making organizations do not operate;
c. Should provide for mitigation of any damaging effects of
Federal projects, or carry out measures to compensate for such
effects;
d. May, where special circumstances make such action necessary
or desirable in the National interest, provide services which normally
would be provided by private enterprise or non-Federal public
entities. (Examples are when long-range financial returns are not
sufficiently attractive in the short-range view of private enterprise;
or when costs are included for purposes not readily marketable; or
when problems of comprehensive and coordinated development cannot be
readily resolved below the Federal level);
e. May construct certain works for which local interests will
be willing to pay, or may provide subsidies, as by permitting
repayment at low Federal interest rates;
f. May develop comprehensive plans embracing even those
purposes for which a high degree of responsibility remains with
non-Federal entities;
g. Should not consider all purposes to warrant equal or maximum
Federal participation.
The costs of establishing and maintaining resource programs must be
borne, in one way or another, by the primary beneficiaries, secondary
beneficiaries, state or other non-Federal public entities, or the
Nation.
6-2. Formulas, Legislative, and Administrative Rules. The costs of
water resources projects under the jurisdiction of the Corps of
Engineers are shared between Federal and non-Federal interests in
accordance with: (1) the provisions of water resource development,
flood control, and other laws; (2) the specific requirements of acts
authorizing the projects in some cases; and (3) administrative
6-1
Previous Page
