EP 1165-2-1
30 Jul 99
the alternative plans under consideration for recommendation as a
Federal project; in evaluation of the alternatives, such non-Federal
works, whether completed or not, will not be assumed part of the
"without" project condition.
e. Proposed crediting will be addressed in feasibility report
recommendations.
f. Credit for completed compatible work may be given after
the PCA is approved against all requirements of local cooperation for
the Federal project, except against the basic 5 percent cash
contribution; the creditable work will be valued as the lesser of the
actual non-Federal costs or the estimated cost for the work if
accomplished as part of Federal project construction; if such value
exceeds the final value of the local cooperation requirements against
which credit can be given, non-Federal sponsor is not entitled to
reimbursement for any such excess.
13-13. Flood Insurance. The National Flood Insurance Program (NFIP)
is available to protect the individual in participating communities
from extreme financial loss in the event of a disasterous flood.
Under the NFIP (Public Law 90-448, as amended) insurance is
subsidized, up to an amount specified, on properties in areas
designated as hazardous by the Federal Emergency Management Agency
(FEMA). The land use control measures required of communities to gain
and maintain eligibility for flood insurance are complementary to
other flood plain management efforts. Section 202 of Public Law
93-234 states that no Federal officer or agency shall approve any
financial assistance for acquisition or construction purposes after
July 1, 1975, for use in any area identified by FEMA as an area having
special flood hazards unless the community in which such area is
situated is then participating in the NFIP. Section 402 of WRDA 1986
expands the prohibition against Federal participation in flood hazard
areas by including "Federal participation in construction of local
flood control projects"; and Section 14 of WRDA 1988 amended Section
402 to extend prohibition to "hurricane and storm damage reduction
projects." Throughout the planning, engineering, and construction
process, coordination, investigations and responsibilities of the
parties involved must be identified to ensure that the necessary
technical data is developed and available for the community to
maintain active participation in the NFIP.
13-14. Evaluation of Economic Benefits for Flood Damage Reduction.
Flood plain management, including flood control and prevention, can
contribute to the NED objective by improving the net productivity of
flood prone land resources. This occurs either by an increase in
output of goods and services and/or by reducing the cost of using the
land resources (improvement in economic efficiency). The benefit
standard is the willingness of users (benefiting activities) to pay
for each increment of output from a plan. (P&G, Chapter II)
a. Evaluation Procedure. Each flood plain management plan
under consideration is evaluated on a with and without basis. The
without condition is that most likely to occur without the specific
plan and gives proper recognition of the effect of existing and
authorized plans, laws, policies and the flood hazard on the probable
course of development. The adoption and enforcement of appropriate
land use regulations pursuant to the Flood Disaster Protection Act of
1973 (Public Law 93-234) and compliance with EO 11988 and EO 11990 are
assumed, both with and without a Corps plan. For purposes of
evaluating structural components of a plan, rational economic use of
the flood plain is assumed. Economic rationality assumes that users
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