[Federal Register Volume 73, Number 178 (Friday, September 12, 2008)]
[Notices]
[Pages 52960-52964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-21294]
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DEPARTMENT OF DEFENSE
Department of the Army; Corps of Engineers
Economic and Environmental Principles and Guidelines for Water
and Related Land Resources Implementation Studies; Availability of
Proposed Principles and Request for Comments
AGENCY: Department of the Army, U.S. Army Corps of Engineers, DoD.
ACTION: Announcement of availability of proposed Principles and request
for comments.
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SUMMARY: Section 2031 of the Water Resources Development Act of 2007
(Pub. L. 110-114) directs the Secretary of the Army to revise the
Economic and Environmental Principles and Guidelines for Water and
Related Land Resources Implementation Studies (P&G), which the Water
Resources Council issued on March 10, 1983. The Army Corps of Engineers
(``Corps'') proposes to craft the revision in phases. The first phase
would address the basic principles of water resources planning
(``Principles'') and the next phase or phases would provide more
detailed implementing guidance.
This notice includes a copy of the proposed Principles (see
SUPPLEMENTARY INFORMATION), which would replace the first two pages of
the P&G. The proposed Principles may also be found at: http://www.usace.army.mil/cw/hot_topics/ht_2008/pandg_rev.htm.
DATES: Written comments are invited and will be accepted through
October 15, 2008.
ADDRESSES: Comments should be submitted in writing to HQUSACE, Attn:
P&G Revision, CECW-ZA, 441 G Street, NW., Washington, DC 20314-1000, by
e-mail to: [email protected] or FAX: 202-761-5649.
FOR FURTHER INFORMATION CONTACT: Larry J. Prather, Assistant Director
of Civil Works, at 202-761-0106.
SUPPLEMENTARY INFORMATION: Section 2031 of the Water Resources
Development Act of 2007 (Pub. L. 110-114) directs the Secretary of the
Army to revise the Economic and Environmental Principles and Guidelines
for Water and Related Land Resources Implementation Studies, dated
March 10, 1983, and to apply the revisions to all water resources
projects carried out by the Secretary, other than projects for which
the Secretary has already commenced a feasibility study.
The Corps requested interested individuals and organizations to
submit suggestions for revision of the P&G in a notice published in the
Federal Register (73 FR 26086) on Thursday, May 8, 2008. As announced
in that notice, the Corps also held a public meeting to hear oral
suggestions for proposed revisions on June 5, 2008. Several major
issues were discussed in the oral or written comments, including
watershed planning, collaborative planning, the reliance on benefit
cost ratios, giving more standing to environmental values, and non-
structural flood damage reduction projects.
The Corps is now asking interested individuals and organizations to
submit comments on the proposed Principles. Comments on any aspect of
the proposal are welcome.
The issues on which the public may want to comment include: actions
covered by the Principles (section 1), the language used to describe
the national planning objective (section 2), the role of public safety
in project formulation (sections 2, 7, and 9), the role of watershed
analysis (section 4), the response to uncertainty (sections 5, 6, and
9), ensuring consideration of all reasonable alternatives (sections 6
and 7), the definition of and preference for non-structural plans
(sections 7 and 9), and the plan selection criteria (section 9).
Comments are also specifically invited on the appropriate discount rate
to use in formulating proposed water resources projects.
[[Page 52961]]
Section 9 of the proposed Principles includes use of a higher
economic standard for projects, project features, and increments of
work whose primary purpose is to achieve economic benefits. A benefit-
cost ratio (BCR) of 1.5, rather than the current 1.0 BCR threshold in
the 1983 P&G, is proposed. This would result in projects that are more
likely to provide a positive net economic return, and would provide
better value from the available Federal and local resources. The
proposed new standard would exclude projects, project features, and
increments of work that provide a low return to the Nation.
While section 2031 of the Water Resources Development Act applies
to water resources projects of the Corps, the proposed Principles are
drafted more broadly to allow for the possibility that they can be
applied to the other Federal water resource agencies currently covered
by the P&G. Comments are invited on suggested changes in language that
might be desirable to enable other water resources agencies to use
these Principles as well.
Written comments (by mail, fax, or e-mail) should be submitted to
(see ADDRESSES). Comments will be posted on the U.S. Army Corps of
Engineers Web site (http://www.usace.army.mil/cw/hot_topics/ht_2008/pandg_rev.htm). Interested individuals and organizations may access
copies of the following documents at this Internet site: the Economic
and Environmental Principles and Guidelines for Water and Related Land
Resources Implementation Studies, dated March 10, 1983; the Water
Resources Development Act of 2007 (Pub. L. 110-114); and the proposed
Principles. Copies of these three documents may also be requested by
mail or e-mail (see ADDRESSES). Other relevant documents, including the
written suggestions received earlier, are also available at this
Internet site.
Proposed Principles. 1. Purpose and Scope. These principles and the
associated guidelines are intended to ensure proper, consistent and
transparent planning in the formulation, evaluation, and selection of
proposed Federal water and related land resources projects.
These principles establish the process for such planning studies
and how each phase of the process functions. In addition, these
principles provide the analytical framework to be followed for proposed
further investments in, extensive modifications to, and expanded
changes in operation of existing Federal water resources projects and
systems.
2. National Planning Objective. The national objective of water and
related land resources planning is to foster environmentally sound,
efficient use of the Nation's resources consistent with public safety.
This can be accomplished through watershed analyses that recognize the
interdependency of water uses. This is strengthened by capitalizing on
a collaborative planning and implementation process which incorporates
fully informed participation from Federal agencies, non-Federal
interests, non-governmental organizations, State and local and Tribal
governments, and a full range of water users and stakeholders.
Water and related land resources planning that is consistent with
the national planning objective seeks to incorporate some or all of
these elements: facilitate sustainable national economic development,
encourage wise use of water and related land resources--including
floodplains and flood-prone coastal areas, support the protection and
restoration of significant aquatic ecosystems, promote the integration
and improvement of how the Nation's water resources are managed; and
reduce vulnerabilities and losses due to natural disasters.
3. Overview. The basic planning process consists of the following
major steps:
(1) Specification of the water and water related land resources
problems and opportunities in the planning setting and their
relationship to the national planning objective;
(2) Inventory and analysis of the current condition of the water
and related land resources relevant to the identified problems and
opportunities;
(3) Identification of study objectives with respect to the problems
and opportunities, after taking into account current and potential
future uses of the water resources;
(4) Formulation of a full range of alternative plans reflecting
those study objectives;
(5) Evaluation of the potential effects of the alternative plans;
(6) Comparison of the alternative plans; and
(7) Selection of a proposed plan, which best meets both the study
objectives and the national planning objective.
The planning process is dynamic with various steps that should be
iterated as new data are obtained, or as the understanding of the
problems, opportunities, and study objectives or their significance
changes or is better defined. These iterations, which may occur at any
step, may sharpen the planning focus or change its direction or
emphasis.
4. Watersheds. Water and related land resources have many, and at
times competing, alternative uses. Water resources planning can
identify and address the synergies and trade-offs associated with these
multiple uses within the watershed.
Water and related land resources planning should commence from the
watershed level to determine how the problems and opportunities being
examined in a study fits into the current and expected watershed needs.
The planning effort is primarily informed by such watershed analysis
wherein proposed projects are considered in the full light of upstream
and downstream conditions and needs that ensures project
recommendations are part of a complementary systems solution. This
highlights the importance that planning proceed, in a coordinated
systems context, with the interactions of other programs, projects, and
plans that are relevant within the related watershed being understood.
Water resources planning is collaborative and may consider
alternatives and strategies for implementation by other Federal
agencies, state and local agencies, Native American tribes, non-Federal
interests, non-governmental organizations, affected groups and
individuals, and/or the public at large. The focus should be on
developing plans that are consistent with the national planning
objective and are efficient, complete, and effective.
5. Science Based Analysis. Harnessing accurate and high quality
data, using expert knowledge, and taking an interdisciplinary approach
to incorporating the information into the planning process is critical
to effective and well executed planning.
Knowledge. Water and related land resources planning can only be
successful when using knowledge and expertise effectively, as well as,
the best information available in each step of the process. Objectivity
and the elimination of sources of potential bias are critical in the
planning process.
Accuracy and Quality of Data. Decision-making can be of the highest
quality when it is founded on the best available data and models with
high degrees of accuracy in hydrology, engineering, geology, ecology,
other physical and life sciences, economics and other relevant social
sciences.
Interdisciplinary Planning. Due to the complicated nature of water
and related land resources planning, an interdisciplinary team approach
to planning will ensure the proper
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integration of engineering, physical and life sciences, social
sciences, economics, and environmental design. Success in planning is
best achieved by matching appropriate planning disciplines to the
planning issues to be addressed.
Peer Review. Peer review by experts from within the agency is an
important element of successful planning. It can add to the knowledge
available to planners and is best integrated into the planning process
on an ongoing basis. Where appropriate, outside independent experts
should be brought into the planning process to confirm the agency's
analytical methods and analysis, the conclusions of the report based on
these methods and analysis, or the way in which the agency conducted
the planning process.
Risk and Uncertainty. Water and related land resources planning,
even with the best engineering, science, economics and other knowledge
possible, will still have elements of risk (probability of occurrence)
and uncertainty (imprecision of measurements and analysis). It is
important to explicitly identify, characterize, and document the risks
and uncertainty throughout the planning process. A clear description of
the risks and uncertainties adds important value to the planning
process by allowing decisions to be made with full knowledge of the
degree of reliability and the limits of the data and information used.
6. Conditions. Gathering information on the conditions in an area
that is relevant to the planning issues under study is essential before
defining a series of alternatives. Though conditions may change or
become better defined during the planning process, it is essential to
understand the conditions that are important to the planning issue and
developing the assumptions based on those conditions in a logical,
clear and transparent manner.
Inclusion of Other Parties. Other interested Federal agencies,
state and local agencies, affected groups and individuals, Native
American tribes with an interest, and the public at large are to be
provided a full opportunity to inform decisions throughout the planning
process, including providing data and evidence necessary for plan
formulation and evaluation.
Inventory of Current Conditions. An inventory of current water and
related land resources conditions in the area of the watershed that
either is contributory to or affected by the planning effort is an
integral part of being able to describe the existing conditions. An
inventory, sufficiently broad in scale to encompass all significant
causes and effects is integral to the planning process. Significant
physical, economic, ecological, safety, cultural, social, aesthetic,
and other relevant conditions that are part of this inventory provide a
snapshot of the present, and are a consequence of the past. Therefore,
the inventory is likely to include the relevant geologic,
geomorphologic, hydrologic, climatic, economic, cultural, social, land
use, and other historic data necessary to build the picture of the
present.
An inventory, which is expanded as needed to assist the planning
process, can be used throughout the process to advance the national
planning objective--for example, to revise the statement of problems
and opportunities or further define them; to identify or revise the
study objectives; to sharpen the planning focus or change its direction
or emphasis; and to inform the formulation and refinement of
alternative plans and the evaluation of those plans.
Projection of with and without Plan Conditions. The world is
dynamic and planning for the uncertain future requires a reasonable
forecast of future events and outcomes. The inventory and analysis of
current conditions provides the baseline data for use in forecasting
future conditions.
A specific set of assumed future conditions, based on the best
estimate of the conditions that are likely to prevail in the presence
and in the absence of a proposed action, is one approach to look at
future conditions. The with and without plan condition is an
objectively based, extrapolation of current conditions into the future
which serves as one basis for estimating and evaluating the cost,
effectiveness, and beneficial and adverse effects of the alternative
plans.
The development of the with and without plan condition is guided
primarily by what is known and is the key part of the planning process
that drives justification of recommended projects. Assumed changes from
the present to the future are based on a series of observed past events
that provide a reasonable basis to quantify the probability of
occurrence of a similar trend into the future.
The future conditions also reflect any such changes that are likely
to occur under current government policy. As these are the basis for
future analyses, it is important that the rationale for development of
these conditions be clearly documented.
7. Plan Formulation. Plan formulation is undertaken to determine
the Federal interest in solving identified water resources problems.
This is accomplished by creating a full range of alternative plans
meeting the national planning objective while reflecting the study
objectives for water and related land resources projects. While
development of alternatives is generally unconstrained, the development
of alternatives must take into account the ability to implement that
plan in consideration of Federal and non-Federal resources considering
their availability for water resources purposes nationwide is finite--
both at any point in time and over the long-term.
7.1 General Considerations.
Structural Plans. Structural plans are those that intentionally
modify existing hydrologic and geomorphic processes, including most
aquatic ecosystem restoration plans.
Non-Structural Plans. Non-structural plans are those that avoid or
minimize changes to the existing hydrologic and geomorphic processes by
changed management or use of existing infrastructure or by emphasizing
alternatives that manage human activity and development. Nonstructural
alternatives also often avoid or minimize adverse impacts in the
aquatic environment.
Public Safety. Addressing concerns over public safety is achieved
by assuring infrastructure is reliable, and that risks posed to human
life and security are avoided, reduced, or mitigated consistent with
current engineering standards and are a component of both structural
and nonstructural plans. Additionally, plans that clearly describe any
residual risk, the measures to address or manage that risk, its
resiliency, and the associated components of cooperation needed to
assure public safety stand to add value and understanding to the
planning process.
Environmental. Addressing concerns over adverse environmental
impact and how to avoid, minimize, and mitigate these impacts on the
environment are a component of both structural and nonstructural plans.
Key Assumptions. Important to the planning process is understanding
and explicitly stating the key assumptions, the supporting rationale
for these assumptions, and the predicted and achieved outcomes based on
similar approaches used in the past that have relied heavily on these
assumptions.
Lifecycle Considerations. An ongoing evaluation of the lifecycle
and ability of current systems to meet contemporary needs is especially
valuable during the planning process. The planning process provides an
opportunity to evaluate and examine whether extensively modifying
operations, adding features, or
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discontinuing features would contribute to the national planning
objective.
Wide Range of Plans. A range of alternative plans, significantly
differentiated from each other in terms of their composition of
measures, the extent to which they comport with the national planning
objective, and their scale and features, are necessary to have the
greatest chance of identifying the best plan for addressing the
planning issues.
Integration with Other Plans. Alternative plans that are consistent
with other established Federal, State, local and Tribal plans can add
value to the alternatives. This includes any synergy with other
entities watershed plans, aquatic ecosystem plans, and integrated water
resource management plans or any elements contained within them. The
inclusion of clear and explicit descriptions and consideration of these
other entities' plans as well as describing the similarities and
differences, synergies and discrepancies, potential implementation
coordination, and other relevant explanations of their plans adds
clarity to the planning process.
Consistency with Existing Statutes, Regulations & Policies.
Addressing concerns over the implementability of plans is best
addressed by including plans that are consistent with existing
statutes, regulations and policies along with describing explicitly how
they influence the planning process. Statutory, regulatory, and/or
policy changes necessary to facilitate a plan should be described in
detail.
7.2 Alternative Plans. Plans are formulated from combinations of
structural and nonstructural measures that address the planning
problems and opportunities.
Required Alternatives. In order to facilitate the development of
the widest range of practical alternative plans, the following required
alternatives constitute the minimum series of plans necessary. The
concept of a practical alternative plan means that any of the required
alternatives below can and often will include elements that meet the
other objectives.
National Economic Development (NED) Plan: A plan that primarily
maximizes the net contributions to the NED objective as part of the
national planning objective.
Environmental Quality (EQ) Plan: A plan that primarily maximizes
the net quantity or quality of the environmental quality objective as
part of the national planning objective.
Primarily Nonstructural Plan: A plan which primarily employs
nonstructural elements, and as a secondary consideration adds
structural features to address the planning issues.
8. Evaluation of Plans. All plans should be well characterized,
explained, and justified. The thorough evaluation of the range of plans
developed requires an open assessment of the plans ability to meet the
evaluative criteria that begins with, but is not limited to, the
national planning objective. Additionally, evaluating the effects of
each alternative plan includes, but is not limited to, its impacts on
current and potential future uses of the water resources and related
land uses throughout the watershed, impacts and potential effects of
climate change, the relationship of each alternative plan to other
relevant water and related land resources projects, and the
relationship of each alternative plan to other existing plans.
8.1 General Considerations.
Interdisciplinary Team Evaluation. An interdisciplinary team
approach to the plan evaluation process can ensure the integration of
engineering, economics, natural and social sciences, and the
environment in a balanced manner based on the planning issues to be
addressed. The disciplines of the planners are to be appropriately
matched to the planning issues, and appropriate consultation and
inclusion of those with specialized expertise is integral to develop a
balanced plan that addresses the issues of concern.
Multi-Criterion Evaluation, Consistency & Transparency. Evaluating
each plan against each criterion in a comparative manner (e.g., matrix)
facilitates the planning process. Effects accounted for in one account
should only be used once in order to maintain the consistency of the
evaluation methodology. Not all criteria can be quantified in a similar
manner, therefore clearly describing the quantified value, the range of
the scale, including any weighting factor, justification for the
weighting factor, and the value used, along with how the weighting
factor affected the overall plan, will produce multi-criterion
evaluation for each alternative plan.
8.2 Required Accounts. In order to facilitate the evaluation of the
range of alternative plans, the following required accounts constitute
the minimum evaluative framework necessary.
The following five accounts are used to catalogue the significant
effects of an alternative on the human environment.
Public Safety (PS): The safety of populations at risk.
National Economic Development (NED): The effects on the national
economy.
Environmental Quality (EQ): The effects on the ecological,
cultural, aesthetic and other attributes of natural and cultural
resources.
Regional Economic Development (RED): The effects on the regional
economy, including income effects, income transfers, and employment
effects not addressed in the NED account.
Other Social Effects (OSE): The effects on the urban or communities
quality of life and health.
9. Plan Selection. The planning process leads to the identification
of alternative plans that could be recommended or selected. These plans
are referred to as the final array of plans including the required
plans. The culmination of the planning process is the selection of the
recommended plan from among the final array of plans, including a
potential decision to take no action. The selection of the recommended
plan, as with the development of alternatives, must be cognizant of the
national planning objective, national mission authorities and of the
availability of Federal and non-Federal resources available for water
and water related resources.
9.1 Selection Criteria.
National Planning Objective Criterion. The Chief of Engineers may
propose a water and related land resources plan that involves Federal
action only if that plan would advance the national planning objective.
The goal is to formulate and propose a series of projects over time
across the Nation, which together will amount in effect to an
implementable national water resources plan.
Net Beneficial Effects Criterion. A recommended plan (when
considered on the basis of the with-plan versus without-plan
comparison) must have combined NED and beneficial EQ effects that
outweigh the combined NED and adverse EQ effects. Where both benefits
and costs of the plans can be quantified and expressed in monetary
terms, then these values will be produced to provide information on the
net beneficial effects of the plan. Where benefits cannot be monetized
with reasonable accuracy, or when statutes or other authorities require
non-monetary values, water and related land resource plans should
present the results of an incremental cost-effectiveness analysis and
otherwise continue to provide the information called for in the multi-
criterion evaluation process.
Uncertainty Criterion. Where significant uncertainty regarding a
future trend exists, both the option of no action and an alternative
plan based on proceeding in steps, using an
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incremental adaptive management approach should be compared to one
another, and the better of these two options should be pursued.
9.2 Project Types.
Commercial Navigation & Hydropower. For commercial navigation and
hydropower features, the plan with high net economic return (benefit
cost ratio of at least 1.5) to the Nation for each increment of such
work, consistent with protecting the environment, will be considered
minimally acceptable. Plans that address the most critical needs and
have an increasingly higher benefit cost ratio should be more heavily
weighted in the selection process.
Flood and Storm Damage Reduction. Flood and storm damage reduction
features could include structural and non-structural components. As
both monetary and non-monetary values are likely to be part of the
decision process when non-structural components are included, a
comparative approach as identified in the Multi-Criterion Evaluation,
Consistency & Transparency section will provide the clarity in these
situations for decision making. Where benefits are measured in monetary
values only, the plan with high net economic return (benefit cost ratio
of at least 1.5) to the Nation for each increment of such work,
consistent with protecting the environment, will be considered
minimally acceptable. Plans that address the most critical needs and
have an increasingly higher benefit cost ratio should be more heavily
weighted in the selection process. Generally, when structural and non-
structural components provide viable options when considering all
evaluation criteria, including benefits, costs and adverse effects,
preference should be given to non-structural components so long as the
monetary benefits are at least at unity. If the non-monetary benefits
represent a majority of the total benefits and are of National
significance, then consideration can be given to selecting a plan with
monetary benefits less than unity.
Aquatic Ecosystem Restoration. For aquatic ecosystem restoration
features, the plan that is cost-effective, sustainable, and is the
alternative plan that best reflects an appropriate level to invest for
that ecosystem from a national perspective, after considering the
national or regional significance and cost of protecting or restoring
that ecosystem compared to others will be considered as minimally
acceptable for selection. Plans that address the most critical
ecological needs using the minimum action needed to substantially
improve the natural functions or services with increasingly higher cost
effectiveness should be more heavily weighted in the selection process.
Multiple Objectives. For multiple objective projects with features
and increments of work whose benefits and costs are jointly distributed
among more than one objective, each such feature or increment of work
should yield a net overall return to the Nation after considering its
cost, effectiveness, and other beneficial and adverse effects. Where
the benefits are measured in monetary values only; those with high net
economic return (benefit cost ratio of at least 1.5) to the Nation for
each increment of such work, consistent with protecting the
environment, will be considered minimally acceptable. Plans that
address the most critical needs and have an increasingly higher benefit
cost ratio should be more heavily weighted in the selection process.
Where plans have both monetary and non-monetary values, a comparative
approach as identified in the Multi-Criterion Evaluation, Consistency &
Transparency section is to be used to inform a decision. The monetary
benefits of a multi-criteria plan must at least be unity. If the non-
monetary benefits represent a majority of the total benefits and are of
national significance, then consideration can be given to selecting a
plan with monetary benefits less than unity.
9.3 Agency Exception. The Secretary will ordinarily consider
exceptions to the selection criteria under the following circumstances:
where there are overriding reasons for doing so, including safety and
other Federal, State, local, Tribal, and international concerns. The
reasons for an exception are to be given in a request from the Chief of
Engineers and must be appropriately documented. The full planning
process carried forth through the study must be documented, completed
and submitted along with the documented exception in order to uphold
the ideal of a transparent process.
Brenda S. Bowen,
Army Federal Register Liaison Officer.
[FR Doc. E8-21294 Filed 9-11-08; 8:45 am]
BILLING CODE 3710-92-P