EP 1165-2-1
30 Jul 99
requirement to analyze risk and uncertainty (Chapter I) and specify
certain sensitivity analyses for inland and deep-draft navigation
(Chapter II). The general requirement is to identify all assumptions,
predicted variables, estimated values, and parameter values which are
critical to the report recommendation, and the value of each critical
factor where the recommendation would change or feasibility would be
questioned. The specific analyses which are or may be required
address assumptions as to traffic projections, rates or vessel
operating costs, and vessel fleet composition or characteristics.
Waterway studies are also required to address modal shift, alternate
discount rates, and cost recovery fees. Whenever benefits are
dependent on the size and life of a resource, as in commercial
fishing, sensitivity analyses may be needed.
g. System Analysis. Systems analysis is required in almost
all navigation studies. The P&G emphasizes systems considerations and
requires evaluation of all reasonable alternatives. P&G procedures
specifically require system analysis for inland waterways, and the
requirement is implicit in the deep-draft requirement for multiport
analysis.
h. Identification of Alternatives. The P&G have a general
requirement that all studies formulate and evaluate alternative
improvement plans; the aim is to provide a basis for determining the
completeness, effectiveness, acceptability, and especially the
efficiency of the recommended plan.
12-4. Priority Outputs, Cost Sharing, and Certain Kinds of Fishing
Activities. Certain types of fishing have been legislatively or
administratively defined as commercial fishing for project cost
sharing purposes. These may or may not be commercial navigation for
priority output purposes. These special cases are as follows:
a. Charter Fishing Craft, Head Boats, and Similar
Recreation-Oriented Commercial Activities. Section 119 of the River
and Harbor Act of 1970 (Public Law 91-611), states, "The Chief of
Engineers, for the purpose of determining Federal and non-Federal
cost-sharing, relating to proposed construction of small-boat
navigation projects, shall consider charter fishing craft as
commercial vessels." This Act applies only to cost allocation and
cost apportionment and does not involve project formulation or
evaluation. Evaluation of charter fishing benefits must be based on
change in net income of the operator for commercial navigation
benefits to be claimed. This change in net income measure of benefits
is appropriate only for existing vessels using harbor facilities.
Benefits may be evaluated in accordance with procedures for
recreational boats, but such benefits are then recreation benefits. A
combination of commercial and recreation benefits may apply if the
boat operator's income does not capture all increase in value of the
recreation opportunity.
b. Subsistence Fishing. Subsistence fishing is not a high
priority output. When allocating costs, subsistence fishing is placed
in the commercial fishing category, however. Subsistence fishing is
defined as fishing activity carried out by those at or below the
minimum subsistence level to obtain food. The minimum subsistence
level is as defined by the Department of Commerce. The appropriate
evaluation procedure depends on site-specific conditions. The basic
requirement is to identify benefits based on willingness to pay.
12-4
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