[Federal Register Volume 59, Number 121 (Friday, June 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15197]
[[Page Unknown]]
[Federal Register: June 24, 1994]
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DEPARTMENT OF DEFENSE
Department of the Army
32 CFR Part 241
Flood Control Cost-Sharing Requirements Under the Ability to Pay
Provision
AGENCY: U.S. Army Corps of Engineers, DOD.
ACTION: Proposed Rule.
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SUMMARY: The Department of the army is proposing to amend the
procedures contained in 32 CFR Part 241 for ability to pay
determinations for flood control projects. The proposed amendment will
establish an eligibility for reductions in the non-Federal cost share
using high cost criteria. A final rule for flood control projects
implementing Section 103(m) of Public Law 99-662, 33 U.S.C. 2213m, was
published in the Federal Register on October 2, 1989 (54 FR 40578).
This proposal will amend these guidelines in accordance with the
discretionary language in Section 201 of Public Law 102-580. The
proposed rule modifies the ability to pay determination for flood
control project to include consideration for projects with a
combination of high local sponsor cost shares and high local sponsor
per capita project costs.
DATES: August 23, 1994.
ADDRESSES: HQUSACE, Director of Civil Works, ATTN: CECW-AA, Washington,
DC 20314-1000.
FOR FURTHER INFORMATION CONTACT: Donald L. Barnes (202) 272-0120.
SUPPLEMENTARY INFORMATION: The proposed amendment will establish an
eligibility for reductions in the non-Federal cost share using high
cost criteria. In accordance with direction prescribed by Section 201
of the Water Resources Development Act of 1992, the Department of the
Army conducted a study of the current ability to pay regulations for
flood control projects. This study found, that while non-Federal cost
shares for most structural flood control projects were less than 35
percent, in some cases (16 percent of the projects in a sample group
studied), the non-Federal shares exceeded 35 percent, due to the high
costs for lands, easements, rights-of-way, relocations, and disposal
areas (LERRD). In addition, while for a majority of projects, the non-
Federal per capita cost of construction (total non-Federal share of
construction costs divided by the population included within the
geographic jurisdiction of the non-Federal project sponsor) was less
than $300, a significant number (34 percent of the sample studied) had
per capita non-Federal costs that exceeded that amount. Given these
circumstances, it is proposed that when the normal non-Federal share is
high (i.e. exceeding 35 percent) and when the normal per capita non-
Federal cost of construction exceeds $300, adjustments should be made
to the standard non-Federal share based on ``ability to pay''
considerations. Specifically, when both criteria are exceeded, the non-
Federal share under the ability to pay provision will be either LERD's
(i.e., no cash requirement) or 35 percent, whichever is greater. If
LERRD's exceed 50 percent, the non-Federal share remains at 50 percent.
This procedure does not change the benefits and income tests of the
existing rule. Projects which would qualify for a reduction under the
existing final rule, will receive a reduction from the high cost
criteria, only if it provides a greater reduction than the benefits and
income tests.
E.O. 12866 and Regulatory Flexibility Act
This rule is not a major rule within the meaning of Executive Order
12866, because it is not likely to result in: (1) An annual effect on
the economy of $100 million or more: (2) a major increase in costs or
prices for consumers, individual industries, Federal, State, or local
government agencies, or geographic regions: or (3) significant adverse
effects on competition, employment, investment, productivity,
innovation, or on the ability of United States based enterprises to
compete with foreign based enterprises in domestic or export markets.
Pursuant to 5 U.S.C. Section 605(b) I hereby certify that this rule
will not have a significant economic impact on a substantial number of
small entities. Furthermore, the number of entities affected by this
rule is small, and it imposes few, if any, administrative burdens of
any sort on small entities.
List of Subjects in 33 CFR 241
Community facilities, Flood control, Intergovernmental relations,
Water resources.
For reasons set out in the preamble, 33 CFR part 241 is proposed to
be amended as follows:
PART 241 FLOOD CONTROL COST SHARING REQUIREMENTS UNDER THE ABILITY
TO PAY PROVISION
1. The authority for part 241 is revised to read as follows:
Authority: Sec. 103(m), Water Resources Development Act of 1986
Pub. L. 99-662, 100 Stat. 4082, 33 U.S.C. 2201 et seq., as amended
by Sec. 201, Water Resources Development Act of 1992 Pub. L. 102-
580, 106 Stat. 4797, U.S.C. 2201 et seq.
2. Sections 241.1 through 241.3 are revised to read as follows:
Sec. 241.1 Purpose.
This regulation gives general instructions on the implementation of
section 103(m) of Public Law 99-662, as amended by section 201 of
Public Law 102-588, for application to flood control projects.
Sec. 241.2 Applicability.
This regulation applies to all U.S. Army Corps of Engineers
Headquarters (HQUSACE) elements and Major Subordinate Commands and
District Commands of the Corps of Engineers having Civil Works
responsibilities.
Sec. 241.3 References.
(a) Water Resources Development Act, 1986, Public Law 99-662, 100
Stat. 4082 33 U.S.C. 2201 et seq.
(b) Water Resources Development Act, 1992, Public law 102-580, 106
Stat. 4797, 33 U.S.C. 2201 et seq.
(c) U.S. Water Resources Council, Economic and Environmental
Principles and Guidelines for Water and Related Land Resources
Implementation Studies, March 10, 1983.
(d) Office of Personnel Management, FPM Bulletin 591-30.
(e) Office of Personnel Management, FPM Bulletin 591-32.
(f) U.S. Army Corps of Engineers, Engineer Regulation 1165-2-29.
(g) U.S. Army Corps of Engineers, Engineer Regulation 1165-2-121.
(h) U.S. Army Corps of Engineers, Engineer Regulation 1165-2-131.
(i) U.S. Army Corps of Engineers, Engineer Regulation 405-1-12.
Sec. 241.5 Procedures for estimating the alternative cost share.
3. Section 241.5 is amended by adding paragraph (d):
* * * * *
(d) Additional consideration for high cost projects. For any
project where the normal non-Federal share exceeds 35 percent, and the
per capita non-Federal cost (i.e., normal non-Federal share of total
construction costs divided by the population in the sponsor's
geographic jurisdiction) exceeds $300, the non-Federal share under the
ability to pay provision will be either LERRD's (i.e., no cash
requirement) or 35 percent, whichever is greater. If LERRD's exceed 50
percent, the non-Federal share remains at 50 percent. Projects which
qualify under the benefits and income tests will receive the reduction
under the high cost criteria, if it results in a greater reduction in
the non-Federal cost share.
Sec. 241.6 [Amended]
4. In Sec. 241.6(a), the term ``LCA'' is revised to read ``Project
Cooperation Agreement (PCA).''
5. All references in Sec. 241.7 to the term ``LCA'' are revised to
read ``PCA''. In addition this section is amended by revising paragraph
(c)(2) and the first sentence of paragraph (e)(2), as follows:
Sec. 241.7 Application of test.
* * * * *
(c) * * *
(2) An exhibit attached to the PCA will include the Benefits Based
Floor (BBF) determined in Sec. 241.5(a), the Eligibility Factor (EF)
determined in Sec. 241.5(b), if the Eligibility Factor is greater than
zero but less than one, the estimated standard non-Federal share, the
formula used in determining the ability to pay share as described in
Sec. 241.5 (c)(1) through (c)(4), and a display of the non-Federal cost
share under the high cost criteria described in Sec. 241.5(d).
* * * * *
(e) * * *
(2) The non-Federal sponsor will be required to provide a cash
payment equal to the minimum of five percent of estimated project
costs, regardless of the outcome of the ability to pay test, unless any
or all of the five percent cash requirement is waived by application of
the high cost criteria described in Sec. 241.5(d).
* * * * *
Dated: June 17, 1994.
John A. Mills,
COL, General Staff, Executive Officer, Office of the Assistant
Secretary of the Army (Civil Works).
[FR Doc. 94-15197 Filed 6-27-94; 8:45 am]
BILLING CODE 3710-92-M
