EP 1165-2-1
30 Jul 99
Evaluation based on changes in net income is preferable since
subsistence fishing is not recreation.
c. Cruise Ships. Section 230 of WRDA 1996 directs the Corps of
Engineers to categorize all benefits generated by cruise ships as
commercial navigation benefits. Benefits of navigation improvements
affecting cruise ships arise from more efficient ship operations and
increased tourism or enhanced tourism experience. Prior to WRDA 1996,
efficiency improvement was classified as commercial navigation and
improved tourism was classified as recreation. Consistent with
Section 230 of WRDA 1996, economic benefits generated by cruise ships
are to be categorized as commercial navigation benefits for project
justification and cost sharing purposes.
12-5. Cost Sharing and Project Cooperation for Navigation. For
waterway projects included within the definition of the "Inland
Waterway System," all requirements for project development are
Federal. Federal participation in other navigation projects, based on
the cost sharing provisions of WRDA 1986, as amended, is limited to
sharing costs for design and construction of the general navigation
features (GNF) consisting of breakwaters and jetties, entrance and
primary access channels, turning basins, anchorage areas, structures
designed to protect the channel from shoreline erosion, locks, and
land-based and aquatic dredged material disposal areas. Non-Federal
interests are responsible for and bear all costs for: provision of
the necessary lands, easements, rights-of-way, and relocations
(LERRs); and, local service facilities (LSF) such as terminal
facilities, dredging in berthing areas and interior access channels
thereto. They must agree to hold and save the United States free from
damages due to project construction and maintenance. For relocations
of utilities within the navigation servitude in projects greater than
45 feet (deep draft utility relocations), one-half of the cost of the
relocation shall be borne by the utility owner and one-half shall be
borne by the non-Federal sponsor. Non-Federal sponsors may also be
required to provide at least one public terminal open to the use of
all on equal terms and compel the removal of obstructions to the
project when they have the authority to compel the removal at owner
cost. Additional local cooperation may be required because of special
benefits such as land enhancement from placement of dredged material,
betterment in bridge changes, and special limited-interest facilities.
a. Studies. The cost sharing provisions of WRDA 1986 require
non-Federal participation (50 percent) in the costs for
preauthorization feasibility studies, except for studies of waterways
included within the definition of the "Inland Waterways System."
Studies of waterways not so exempted (because not clearly included in
that definition), may be accomplished at 100 percent Federal cost if
approved, in each case, by HQUSACE, based on recommendations and
rationale submitted by the division commander. In any such instance,
the resulting feasibility report, based on the reasons accepted for
exempting the study from cost sharing, will recommend inclusion of the
waterway in the system subject to fuel tax. For cost shared studies,
the non-Federal share is to be paid during the period of study.
b. Preconstruction Engineering and Design (PED). PED is cost
shared at the same percentage as applies to construction of the GNF.
The Federal Government finances the non-Federal share, with
adjustments in funding arrangements for the first year of project
construction providing for non-Federal reimbursement.
12-5
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