EP 1165-2-1
30 Jul 99
b. When enhancement benefits do not qualify as above,
non-Federal sponsors are responsible for 25 percent of the first costs
associated with these benefits, paid during implementation.
c. In all cases, the cost of operation and maintenance is the
responsibility of the agency that manages the land for fish and
wildlife purposes. (ER 1105-2-100, Chapter 4, Section VIII, Fish and
Wildlife Enhancement, Paragraph 4-37, Federal and Non-Federal
Participation)
6-15. Deferred Payments by Non-Federal Sponsors. The cost sharing
established by WRDA 1986 specifies: (1) non-Federal payments to the
Federal Government for its share of the cost of works accomplished
under Federal control; and (2) non-Federal accomplishment of certain
activities such as provision of LERRD. The general concept to be
followed is for each party to provide its share of cost shared work
prior to initiation of that work and for each party to produce its
separate work activities in a time frame that permits efficient
accomplishment of the overall effort (pay-as-you-go). The legislation
does, however, make provision for deferral of certain non-Federal
payments, most of which are at the discretion of the ASA(CW). Certain
conventions have been adopted for computing interest charges for
non-Federal payments made later than they would have been made under
the "pay-as-you-go" concept described above. (ER 1165-2-131)
6-16. Environmental Protection (Environmental/Ecosystem Restoration).
Section 306 of WRDA 1990 authorizes the Secretary of the Army to
include environmental protection as one of the primary missions of the
Corps. Section 307(a), WRDA 1990, establishes "no net loss of
wetlands" and an "increase in the quality and quantity of the nations
wetlands" as goals of the water resources development program.
However, neither section provides a specific new authority to study,
construct or implement specific measures. Section 210 of WRDA 1996
establishes the cost sharing for ecosystem (environmental) protection
and restoration projects by amending Section 103(c) of WRDA 1986 to
add environmental protection and restoration to the list of project
purposes and establishes the the non-Federal share as 35 percent.
Current Corps policy on cost sharing for ecosystem restoration
improvements proposed for congressional authorization (i.e., projects
authorized after 12 October 1996) is 50 Federal/50 percent non-Federal
for feasibility study, 65 percent Federal/35 percent non-Federal for
implementation (preconstruction engineering and design, construction)
including separable elements, and 100 percent non-Federal for
operation, maintenance, repair, rehabilitation, and replacement
(OMRR&R). The non-Federal sponsor provides all LERRDs and the value
of the LERRDs are included in the non-Federal 35-percent share. Where
the LERRDs exceed the non-Federal sponsor's 35-percent share, the
sponsor will be reimbursed for the value of the the LERRDs that exceed
the 35-percent non-Federal share. Section 103 of WRDA 1986, as
amended, makes no provision for work-in-kind and the non-Federal
sponsor 35-percent share, after appropriate accounting for LERRD and
required non-Federal sponsor project coordination activities under the
terms of the Preconstruction Engineering and Design Agreement and
PCA, will be provided in cash during construction. Section 206 (of
WRDA 1996) Aquatic Ecosystem Restoration projects (with Federal costs
limited to million per project) are also cost shared 65 percent
Federal/35 percent non-Federal for implementation costs and 100
percent non-Federal for LERRDs and OMRR&R costs. However, Section
1135 (of WRDA 1986) and Section 204 (of WRDA 1992) projects are cost
shared 75 percent Federal/25 percent non-Federal for both feasibility
study costs and implementation costs, and 100 percent non-Federal for
6-13
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