EP 1165-2-1
30 Jul 99
c. Since the purpose of any proposed modification is ecosystem
restoration and protection, proposals should be designed to avoid any
need for a mitigation requirement. Further, Section 1135 proposals
should not be used to fulfill the mitigation requirements of the basic
project or any mitigation requirements that have been incurred by the
local sponsor including their use as part of a mitigation bank.
d. The proposed modification must be justified on the basis of
its monetary and nonmonetary benefits exceeding the monetary and
nonmonetary costs, in a manner consistent with the justification
process described for mitigation in paragraph 19-21a above.
e. Modifications designed primarily to halt erosion, to
control sedimentation, to add a new project purpose such as water
supply, or the addition of waterborne recreation at an existing dry
reservoir should not be pursued using Section 1135 authority.
19-32. Program Cost Sharing for Section 1135 Projects. The planning
and design phase(s) will initially be fully funded by the Government.
However, these costs shall be included as part of the total project
modification costs to be shared 75 percent Federal and 25 percent non-
Federal.
a. In meeting its responsibility, the non-Federal sponsor
shall provide all lands, easements, rights-of-way, suitable borrow and
dredged or excavated material disposal areas, and perform or ensure
performance of all relocations (LERRD), required for the project
modification which are not otherwise available due to the construction
or operation of the existing project.
b. The value and credit for LERRD provided for the project
modification by the non-Federal sponsor shall be determined as
described in ER 405-1-12 and the Section 1135 program guidance. If
the value of the identified LERRD represents less than 25 percent of
the total project modification costs, the non-Federal sponsor shall
provide, during the period of implementation, a cash contribution in
the amount necessary to make its total contribution equal to 25
percent.
c. If the value of LERRD contributions exceeds 25 percent of
the total project modification costs, the Government shall refund the
excess to the non-Federal sponsor. However, the non-Federal sponsor
shall not receive any credit for LERRD previously provided as an item
of cooperation for another Federal project nor shall the value thereof
be included in the total project modification costs.
d. Credit will be allowed for work-in-kind provided that these
services do not result in a reimbursement by the Government and their
combination with the LERRD does not exceed 25 percent of project
costs.
e. Federal Aid in Wildlife Restoration Act (Pittman-Robertson)
and Federal Aid in Sport Fisheries Restoration Act (Dingel-Johnson)
funds, and North American Wetlands Conservation Act funds (Mitchell
Bill) may not be used by states as the non-Federal share of a Section
1135 project modification.
19-33. Operation and Maintenance for Section 1135 Projects. Usually,
the non-Federal sponsor shall be responsible for 100 percent of the
incremental OMRR&R costs associated with the project modification.
The non-Federal sponsor shall OMRR&R the project modification in a
manner so that liability will not arise under the Comprehensive
19-21
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