EP 1165-2-1
30 Jul 99
b. Nonstructural Flood Control (Section 103(b) of WRDA 1986, as
amended by Section 202(a) of WRDA 1996).
(1) Before construction, non-Federal sponsors must agree to
provide the LERRD, with that necessary for construction to be
furnished the Federal Government prior to the advertisement of any
construction contract. Demolition and removal of structures is
usually performed by the Government, and costs associate therewith are
considered construction, not LERRD, costs.
(2) Minimum and Maximum Contributions. If the value of the
LERRD contributions is less than 25 percent of the costs of the
nonstructural flood control features/project (35 percent for
features/projects authorized, or reauthorized after formal
deauthorization, after 12 October 1996), the non-Federal sponsor shall
pay upon completion of construction, such additional amounts as are
necessary for its share to be equal to 25 percent (35 percent for
features/projects authorized, or reauthorized after formal
deauthorization, after 12 October 1996). The value of non-Federal
contributions shall not exceed 25 percent of the costs of the
nonstructural flood control features/project (35 percent for
features/projects authorized, or reauthorized after formal
deauthorization, after 12 October 1996). When the value of LERRD is
more than 25 percent (35 percent for features/projects authorized, or
reauthorized after formal deauthorization, after 12 October 1996),
agreement must be reached with the non-Federal sponsor on the most
efficient and practical means for acquisition of the portion of the
LERRD over 25 percent (35 percent for features/projects authorized, or
reauthorized after formal deauthorization, after 12 October 1996)(see
ER 1165-2-131, paragraph 12.c(8)). 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, unless these projects have been specifically authorized
in or prior to WRDA 1996.
(3) Deferred Payment. Additional funds needed to bring
non-Federal contributions up to 25 percent of the cost of the
nonstructural flood control features, may be paid over a 15-year
period, or shorter period if agreed to by the ASA(CW) and non-Federal
sponsor. Repayment shall begin on the date construction of the
project or separable element is completed, and must include interest
at the rate determined pursuant to Section 106 of WRDA 1986. However,
full payment upon completion of construction is preferred.
c. Application to Projects Containing Both Structural and
Nonstructural Elements. Costs will be allocated and shared in
accordance with the formulas applicable to each element.
d.
Special Cost Sharing Considerations.
(1) Betterments. Betterments are defined as changes in the
design and construction of an element of a project resulting from the
application of standards that the government determines exceed those
that the government would otherwise apply for accomplishing the design
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