EP 1165-2-1
30 Jul 99
6-5.
Flood Damage Reduction.
a. Single Purpose Structural Flood Control (Section 103(a) of
WRDA 1986, as amended by Section 202(a) of WRDA 1996).
(1) Before construction, non-Federal sponsors must agree to:
pay 5 percent of the project first costs assigned to structural flood
control, in cash, during the construction of the project, proportional
to the rate of Federal expenditures; and to provide all lands,
easements, rights-of-way, including suitable borrow and dredged
material disposal areas, and perform all related necessary relocations
(LERRD), including LERRD required for fish and wildlife mitigation.
All costs for relocations are part of LERRD, including costs for
measures needed to prevent serious adverse effects to the flood
control project structures, in the event of failure/rupture (e.g.,
stronger pipe requirements, special compacting or cementing to provide
for added strength or to prevent piping, mechanical bolt joints to
prevent leakage, new valves, relocated structures, etc.).
(2) Minimum and Maximum Contributions. If the value of the
contributions in paragraph 6-5.a(1) is less than 25 percent of the
costs of the project (35 percent for projects authorized, or
reauthorized after formal deauthorization, after 12 October 1996)
assigned to structural flood control, the non-Federal interest shall
pay during construction of the project any additional amounts
necessary for the total non-Federal contribution to equal 25 percent
(35 percent for projects authorized, or reauthorized after formal
deauthorization, after 12 October 1996). Pursuant to Section
103(a)(3) of WRDA 1986, the total non-Federal contribution cannot
exceed 50 percent of the first costs assigned to structural flood
control (5 percent cash contribution is required, with the remaining
contribution consisting of LERRD limited to 45 percent). Guidance on
funding the value of LERRD that exceeds the 45 percent is contained in
ER 1165-2-131 and its successor regulation. Regarding project
modifications, new cost sharing (i.e., post 12 October 1996) will not
be required for project authorizations necessitated by increases in
project costs in accordance with Section 902 of WRDA 1986, i.e., the
basic project has not changed. However, the increased/new cost
sharing (i.e., post 12 October 1996) will apply to all projects where
reevaluation studies have indicated a significant change in project
scope or purpose has occurred necessitating the need for a new
congressional authorization. The increased/new non-Federal cost share
also applies to those Section 205 projects whose Detailed Project
Reports are approved after 12 October 1996, and to those Section 14
and 208 projects which are approved for construction by the division
commander after 12 October 1996 unless these projects have been
specifically authorized in or prior to WRDA 1996.
(3) Deferred Payment. Section 103(a)(4) of WRDA 1986 permits
non-Federal sponsors to defer payment of contributions in excess of 30
percent of the costs assigned to structural flood control (5 percent
cash plus 25 percent LERRD). The excess costs may be paid over a
15-year period, or shorter period, if agreed to by the ASA(CW) and
non-Federal sponsors. Repayment shall begin on the date construction
of the project or separable element is completed, and must include
interest from the date payments would otherwise have been made, at the
interest rate determined pursuant to Section 106 of WRDA 1986.
However, full payment during construction is preferred.
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