EP 1165-2-1
30 Jul 99
instructions. Legislative authorizations have defined general rules
for cost sharing, or have prescribed percentages of costs required by
non-Federal entities. Prescribed percentages were traditionally
developed on the basis of analogous precedents or from a sense of
equity. With Congressional acceptance and approval of recommendations
for projects proposed on such basis, these rules became established
policy. Enactment of the Water Resources Development Act of 1986
(WRDA 1986), Public Law 99-662, produced the first comprehensive
treatment of cost sharing, with formulas for all water resources
purposes. Arrangements for cost sharing may include one or a
combination of several aspects of the program, such as planning,
design, construction, operation, maintenance and management, or an
interest therein such as through provision of advice, data, materials,
labor, cash, or other contributions. The amount of the local
(non-Federal) cooperation involved, both monetary and non-monetary, is
thus dependent upon the nature of the project under consideration and
the general and specific laws pertinent thereto. The new cost sharing
rules for project construction and repayment are summarized in this
chapter and discussed further in subsequent chapters devoted to the
individual water resources purposes.
6-3.
Applicability of Cost Sharing.
a. General. Unless otherwise specified, the cost sharing
provisions of Title I of WRDA 1986, as amended, apply to all projects
and separable elements authorized in the Act, or in subsequent Acts,
as well as to previously authorized projects, depending on the date
when physical construction is started, and the type of project. For
harbor projects under Section 101 of WRDA 1986, the new cost sharing
applies to any project or separable element thereof, on which a
contract for physical construction was not awarded before 17 November
1986. On projects for flood control and other purposes, under Section
103 of WRDA 1986, new cost sharing applies to any project (including
any small project which is not specifically authorized by Congress and
for which the Secretary has not approved funding before 17 November
1986), or separable element thereof, on which physical construction
was initiated after 30 April 1986. Under Section 202(a)(2) of WRDA
1996, physical construction is defined to be initiated on the date of
award of a construction contract. Physical construction is
distinguished from the acquisition of land which is accomplished
before physical construction can begin. Title I cost sharing is also
applicable to the small projects not specifically authorized by
Congress. When the Federal share of any project authorized in WRDA
1986 is not established in Title I, the Federal share is as otherwise
provided by law (Section 108 of WRDA 1986).
b. Definition of Separable Element. The concept of "separable
element" was intended as an equitable way of phasing new cost sharing
policy into an ongoing program, by applying the new rules to work that
represents new commitments. Section 103(f) of WRDA 1986 defines
"separable element" as a portion of a project which is physically
separable from other portions of the project and which achieves
hydrologic effects, or produces physical or economic benefits, which
are separately identifiable from those produced by other portions of
the project. For separability, operational, environmental, and
economic impacts must be directly related to, and only associated
with, the individual project element. In the case of environmental
impact, the environmental treatment for the element must be capable of
passing the legal test for adequacy of coverage. Independent
hydrologic effects connote a hydrologic and hydraulic independence
from the output and benefits of other projects and separable elements.
6-2
Previous Page
