80_FR_52425 80 FR 52258 - Guidelines for Carrying Out Section 221(a)(4) of the Flood Control Act of 1970, as Amended

80 FR 52258 - Guidelines for Carrying Out Section 221(a)(4) of the Flood Control Act of 1970, as Amended

DEPARTMENT OF DEFENSE
Department of the Army, Corps of Engineers

Federal Register Volume 80, Issue 167 (August 28, 2015)

Page Range52258-52264
FR Document2015-21355

The U.S. Army Corps of Engineers (Corps) has updated the existing guidance for providing in-kind credit under Section 221(a)(4) of the Flood Control Act of 1970, as further amended by Section 1018 of the Water Resources Reform and Development Act of 2014.

Federal Register, Volume 80 Issue 167 (Friday, August 28, 2015)
[Federal Register Volume 80, Number 167 (Friday, August 28, 2015)]
[Notices]
[Pages 52258-52264]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21355]


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DEPARTMENT OF DEFENSE

Department of the Army, Corps of Engineers


Guidelines for Carrying Out Section 221(a)(4) of the Flood 
Control Act of 1970, as Amended

AGENCY: United States Army Corps of Engineers, Department of Defense.

ACTION: Notice.

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SUMMARY: The U.S. Army Corps of Engineers (Corps) has updated the 
existing guidance for providing in-kind credit under Section 221(a)(4) 
of the Flood Control Act of 1970, as further amended by Section 1018 of 
the Water Resources Reform and Development Act of 2014.

DATES: Written comments must be submitted on or before September 28, 
2015.

ADDRESSES: You may submit comments, identified by docket number COE-
2015-0013 by any of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov . Follow the 
instructions for submitting comments.
    Email: [email protected]. Include the docket number, 
COE-2015-0013, in the subject line of the message.
    Mail: U.S. Army Corps of Engineers, Attn: CECW-CE, Janice E. 
Rasgus, 441 G Street NW., Washington, DC 20314-1000.
    Hand Delivery/Courier: Due to security requirements, we cannot 
receive comments by hand delivery or courier.
    Instructions: Direct your comments to docket number COE-2015-0013. 
All comments received will be included in the public docket without 
change and may be made available on-line at http://www.regulations.gov, 
including any personal information provided, unless the commenter 
indicates that the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI, or otherwise protected, through regulations.gov or 
email. The regulations.gov Web site is an anonymous access system, 
which means we will not know your identity or contact information 
unless you provide it in the body of your comment. If you send an email 
directly to the Corps without going through regulations.gov, your email 
address will be automatically captured and included as part of the 
comment that is placed in the public docket and made available on the 
Internet. If you submit an electronic comment, we recommend that you 
include your name and other contact information in the body of your 
comment and with any disk or CD-ROM you submit. If we cannot read your 
comment because of technical difficulties and cannot contact you for 
clarification, we may not be able to consider your comment. Electronic 
comments should avoid the use of any special characters, any form of 
encryption, and be free of any defects or viruses.
    Docket: For access to the docket to read background documents or 
comments received, go to www.regulations.gov. All documents in the 
docket are listed. Although listed in the index, some information is 
not publicly available, such as CBI or other information whose 
disclosure is restricted by statute. Certain other material, such as 
copyrighted material, is not placed on the Internet and will be 
publicly available only in hard copy form.

FOR FURTHER INFORMATION CONTACT: Janice E. Rasgus, Planning and Policy 
Division, Washington, DC at 202-761-7674.

SUPPLEMENTARY INFORMATION: Section 1018(d) of WRRDA 2014 requires the 
Corps to update and publish this draft of ER 1165-2-208 in the Federal 
Register and offer the public an opportunity to comment on the proposed 
guidelines. The Corps will review all comments received by the deadline 
and will make its response to those comments available when then ER is 
finalized and published on the Corps Web site.
    Authority: We are proposing to issue this Engineering Regulation 
under the authority of Section 221 (a)(4) of the Flood Control Act of 
1970, as amended.

    Dated: August 24, 2015.
Theodore A. Brown,
Chief, Planning and Policy Division, Directorate of Civil Works.

Engineering Regulation, ER 1165-2-208, In-Kind Contribution Credit 
Provisions of Section 221(a)(4) of the Flood Control Act of 1970, as 
amended.

    1. Purpose. This regulation provides guidance on the implementation 
of the in-kind contribution credit provisions of Section 221(a)(4) of 
the Flood Control Act of 1970, as further amended by Section 1018 of 
the Water Resources Reform and Development Act of 2014 (WRRDA 2014) (42 
U.S.C. 1962d-5b(a)(4)) (hereinafter referred to as ``Section 221''). 
Section 221(a)(4) of the Flood Control Act of 1970, as amended, and 
Section 1018 of WRRDA 2014 are provided in Appendix A. This regulation 
supersedes ER 1165-2-208 dated 17 February 2012.
    2. Distribution Statement. Approved for public release. 
Distribution is unlimited.
    3. Applicability. This regulation applies to all HQUSACE elements, 
Major Subordinate Commands (MSCs), and district commands having Civil 
Works responsibility and is effective immediately.
    a. The Section 221 crediting provisions apply to the study, design, 
and construction of water resources development projects authorized in 
the Water Resources Development Act of 1986 or later laws, including 
projects initiated after November 16, 1986 without specific 
authorization in law. In addition, the crediting provisions apply to 
the correction of design deficiencies for projects authorized prior to 
the Water Resources Development Act of 1986. Finally, these provisions 
are also applicable to a project under the an environmental 
infrastructure assistance program.
    (1) For a project with a project partnership agreement (PPA) that 
was executed on or after November 8, 2007, such PPA may be amended to 
include work by the non-Federal sponsor that

[[Page 52259]]

has not yet been initiated for credit toward any remaining non-Federal 
cost share under that agreement.
    (2) Furthermore, in general, the crediting provisions of Section 
221 will be used in lieu of Section 104 of WRDA 1986 and Section 215 of 
the Flood Control Act of 1968. However, any eligibility for credit 
under Section 104 of WRDA 1986 that was approved previously by the 
Secretary will be honored.
    b. The authority for credit under Section 221 credit is in addition 
to any other authority to provide credit for in-kind contributions. 
Section 221 credit may be applied in lieu of other crediting provisions 
if requested by the non-federal sponsor.
    4. Key Principles.
    a. In General. Section 221 is a comprehensive authority that 
addresses the affording of credit for the value of in-kind 
contributions provided by a non-Federal sponsor toward its required 
cost share (excluding the required 5 percent cash for structural flood 
damage reduction projects and the additional 10 percent cash payment 
over 30 years for navigation projects) if those in-kind contributions 
are determined to be integral to a study or project.
    b. Types of In-Kind Contributions. The types of in-kind 
contributions eligible for credit include planning activities 
(including data collection and other services needed for a feasibility 
study); design related to construction; and construction (including 
management; mitigation; and construction materials and services).
    c. Compliance with Applicable Federal Laws, Regulations, and 
Policies. Eligibility for credit is subject to the non-Federal sponsor 
complying with all applicable Federal laws and implementing 
regulations, including, but not limited to Section 601 of the Civil 
Rights Act of 1964, as amended (42 U.S.C. 2000d), and Department of 
Defense Directive 5500.11 issued pursuant thereto; the Age 
Discrimination Act of 1975 (42 U.S.C. 6102); the Rehabilitation Act of 
1973, as amended (29 U.S.C. 794), and Army Regulation 600-7 issued 
pursuant thereto; and 40 U.S.C. 3141-3148 and 40 U.S.C. 3701-3708 
(labor standards originally enacted as the Davis-Bacon Act, the 
Contract Work Hours and Safety Standards Act, the Copeland Anti-
Kickback Act); and the National Environmental Policy Act and other 
environmental laws and regulations.
    d. In-Kind Memorandum of Understanding (MOU).
    (1) Construction. Section 221 provides that any construction work 
that has not been carried out as of November 8, 2007 is eligible for 
credit only if the non-Federal sponsor executes an agreement with the 
Secretary prior to carrying out such work. For purposes of section 221 
crediting only, ``carrying out'' construction work means initiation of 
construction using the non-Federal sponsor's labor force or issuance of 
the notice to proceed for such construction if undertaken by contract. 
Therefore, in those cases where there is not yet an executed PPA, the 
non-Federal sponsor must execute an in-kind MOU with the Corps of 
Engineers prior to initiating construction or issuing the notice to 
proceed. Design work associated with that construction is eligible for 
credit as long as an in-kind MOU or PPA is executed prior to the 
construction being carried out. In addition, the construction carried 
out by the non-Federal sponsor is not considered as part of the future 
without project condition.
    (a) Projects Specifically Authorized. For projects that are or will 
be specifically authorized for construction, an In-Kind MOU for 
construction may be executed once there is vertical team concurrence 
with the Tentatively Selected Plan (TSP Milestone). The TSP milestone 
is the point at which there is vertical team concurrence on the plan 
that will be released in the draft study report for public and agency 
review. Given the new SMART Planning Process, the TSP Milestone should 
occur much earlier in the planning process than what was previously 
achieved. Requests from non-Federal sponsors to execute an in-kind MOU 
for construction prior to the TSP Milestone will be considered on a 
case-by- case basis and must be approved by the Assistant Secretary of 
the Army (Civil Works). Since each project presents its own unique 
combination of circumstances, each request will require an individual 
evaluation that will include consideration of, but not limited to, the 
following criteria:
    (i) Whether the proposed work is a modification of an existing 
Federal project;
    (ii) Whether the proposed work will follow an existing levee 
alignment in the case of a flood risk management project;
    (iii) Whether the proposed work balances and integrates the wise 
use of flood plains to ensure public safety;
    (iv) Whether the proposed work significantly reduces flood damage 
risk to human life, property or critical infrastructure; and
    (iv) Whether the proposed work will likely be included in the final 
project recommendation.
    (b) Continuing Authority Program. For projects implemented under 
the Continuing Authority Program or a regional authority that does not 
require additional authorization to implement the project, an In-Kind 
MOU for design and implementation may be executed after the MSC 
Commander approves the decision document for the project.
    (2) Design. For projects that are or will be specifically 
authorized for construction, an In-Kind MOU for design may be executed 
after the TSP milestone, i.e., the point at which there is vertical 
team concurrence on the tentatively selected plan that will be released 
in the draft study report for public and agency review.
    (3) Planning.
    (a) Projects Specifically Authorized. For projects that are or will 
be specifically authorized for construction, Section 1002 of WRRDA 2014 
eliminated the full Federal reconnaissance phase that used to be 
undertaken prior to execution of a feasibility cost sharing agreement. 
In the past, a project management plan, which established the scope of 
the planning, including activities needed to carry out the study, was 
developed during this reconnaissance phase. Under the new single phase 
study process mandated by WRRDA 2014, the project management plan will 
not be developed until after execution of feasibility cost sharing 
agreement. Therefore, an In-Kind MOU for planning is not permitted as 
the project management plan, including a determination of the scope of 
the study, will not be developed until after execution of a feasibility 
cost sharing agreement.
    (b) Continuing Authority Program. For projects implemented under 
the Continuing Authority Program or a regional authority that does not 
require additional authorization to implement the project, sections 
905(c) and 105(a)(3) of WRDA 1986, as amended, provide that the first 
$100,000 of these studies is a Federal expense. Therefore, once a PMP 
has been developed and the MSC Commander has approved initiation of the 
feasibility study, an In-Kind MOU for planning may be executed.
    (4) Any work undertaken by a non-Federal sponsor pursuant to an In-
Kind MOU is at its own risk and responsibility. An In-Kind MOU provides 
no assurance that the non-Federal sponsor's work will be determined to 
be integral to the Federal project or that any construction undertaken 
by the non-Federal sponsor will be included as part of any ultimately 
recommended Federal project. Execution of an In-Kind MOU in no way 
obligates the Corps to enter

[[Page 52260]]

into any future agreement for the project.
    (5) MSC Commanders may approve a District Engineer's execution of 
Model In-Kind MOUs for Construction or for Design, provided that the 
MOUs do not include any deviations. Any proposed deviations must be 
submitted to HQUSACE for approval prior to execution. Models for the 
In-kind MOU for construction, including design work, and for design 
work only are available at www.Corpsplanning.us.
    e. Integral Determinations.
    (1) Section 221 provides that credit may be afforded only if the 
Secretary determines that the material or service provided as an in-
kind contribution by a non-Federal sponsor is integral to the study or 
project.\1\ To be integral to the study or project, the material or 
service must be part of the work that the Federal Government would 
otherwise have undertaken for the study or for construction of what is 
ultimately determined to be the Federal project. See Appendix B for 
additional guidance on criteria and procedures for processing integral 
determinations.
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    \1\ The costs of Coordination Team participation and audits are 
not in-kind contributions and are not included in ``shared costs'' 
for cost sharing purposes. The costs of the non-Federal Sponsor's 
performance of investigations for hazardous substances are eligible 
for inclusion as a shared costs and for credit as an in-kind 
contribution and do not require a separate integral determination.
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    (2) The approval of integral determinations is delegated to the MSC 
Commander. The approval authority delegated to the MSC Commander is 
subject to the full compliance of each integral determination to law 
and policy and may not be further delegated within the MSC or to the 
District Commander. A separate integral determination is not required 
for planning activities included in the project management plan, 
approved by the MSC Commander, as required for the study effort.
    f. Determining the Amount of Credit.
    (1) The amount of in-kind contributions that may be eligible for 
inclusion in shared costs for cost sharing purposes under the 
applicable cost sharing agreement will be subject to an audit by the 
Government to determine the reasonableness, allocability, and 
allowability of such amount.
    (2) The creditable amount is the lesser of the costs incurred by 
the non-Federal sponsor to obtain such materials or services; the 
market value of such materials or services as of the date that the non-
Federal sponsor provides such materials or services for use in the 
study or project; or the Government's estimate of the cost for such 
work if it had been accomplished by the Government. This amount is not 
subject to interest charges or to adjustment to reflect changes in 
price levels between the time the in-kind contributions were completed 
and the time the amount is credited.
    (3) Any in-kind contributions performed or paid for by the non-
Federal sponsor using funds provided by another Federal agency (as well 
as any non-Federal matching share or contribution that was required by 
such Federal agency for such program or grant) are not eligible for 
credit unless the Federal agency providing the Federal portion of such 
funds verifies in writing that the funds are authorized to be used to 
carry out the study or project.
    (4) After execution of the applicable FCSA, DA, or PPA, the non-
Federal sponsor will submit to the Government (not less frequently than 
every 6 months) credit request(s) for eligible in-kind contributions 
under that agreement. The credit requests will contain the following: 
(a) Written certification by the non-Federal sponsor of the payments 
made to contractors, suppliers, or employees for in-kind contributions; 
(b) copies of all relevant invoices and evidence of such payments; (c) 
written identification of costs that have been paid with funds or 
grants provided by a Federal agency as well as any non-Federal matching 
share or contribution that was required by such Federal agency for such 
program or grant; and (d) a written request for credit of a specific 
amount not in excess of such specified payments. Failure to provide 
sufficient documentation supporting the credit request will result in a 
denial of credit in accordance with the terms of the applicable cost 
sharing agreement.
    (5) In-kind contributions are subject to a review (for feasibility 
level and design activities) or on-site inspection (construction), as 
applicable, and certification by the Government that the work was 
accomplished in a satisfactory manner and in accordance with applicable 
Federal laws, regulations, and policies. The Government will not 
include in the costs to be shared under the applicable cost sharing 
agreement or afford credit for any work the Government determines was 
not accomplished in a satisfactory manner or in accordance with 
applicable Federal laws, regulations, and policies.
    (6) In general, the amount of credit for in-kind contributions that 
can be afforded under a FCSA or a PPA is limited to the amount of the 
non-Federal sponsor's cost share under that agreement. As the costs of 
design under a Design Agreement (DA) are included in total project 
costs under a PPA, credit for in-kind contributions under a DA is 
carried over to the PPA, and the maximum of amount of credit for in-
kind contributions under a PPA is limited to the non-Federal sponsor's 
required cost share under the PPA. Credit for in-kind contributions may 
not be afforded toward the required 5 percent cash payment for 
structural flood damage reduction projects or the additional 10 percent 
cash payment for navigation projects.
    (7) Credit for in-kind contributions for planning is limited to 
credit that can be afforded under a specific FCSA. In other words, 
excess credit may not be carried over to design or construction of the 
project. Credit for planning work by the non-Federal sponsor is limited 
to its 50 percent of planning costs and will be done in accordance with 
the PMP, under the terms and conditions in the FCSA.
    (8) Credit for in-kind contributions provided by a non-Federal 
sponsor for the construction of a project, or separable element 
thereof, that are in excess of the non-Federal cost share for an 
authorized separable element of a project may be applied toward the 
non-federal cost share for a different authorized separable element of 
the same project. Additional Federal appropriations will be required to 
offset the application of any excess credit to another separable 
element.
    (9) If the value of eligible in-kind contributions exceeds the 
amount of credit that can be afforded pursuant to the provisions of a 
PPA (i.e., exceeds the required non-Federal cost share for all features 
covered by that PPA), only the amount of credit afforded should be 
included in total project costs. Recalculation of total project costs 
will be required to exclude from total project costs the value of in-
kind contributions that exceed the amount of credit that can be 
afforded. In addition, the amount excluded will not be considered part 
of total costs for the purposes of Section 902 of WRDA 1986 
calculations.
    (10) No reimbursements are authorized for in-kind contributions 
under Section 221 except as provided in paragraph 4 g., below.
    g. Lands, Easements, Relocations, Rights-of-Way, and Areas for 
Disposal of Dredged Material (LERRDs). Section 221 does not alter any 
other requirement for the non-Federal sponsor to provide LERRDs for a 
project. Any LERRDs associated with in-kind contributions determined to 
be integral to the project will be credited to the project as LERRDs. 
For a navigation project, LERRs are creditable only toward the 
requirement for the non-Federal sponsor

[[Page 52261]]

to pay an additional 10 percent of the cost of the general navigation 
features.
    (1) Previously, credit for in-kind contributions was afforded only 
toward the non-Federal sponsor's required cash contribution after 
consideration of the value of LERRDs provided by the non-Federal 
sponsor. WRRDA 2014 changes how credit for in-kind contributions is 
calculated. For projects other than navigation projects, to the extent 
that credit for LERRDs combined with credit for the value of in-kind 
contributions exceed the non-Federal share of the cost of a project, 
WRRDA 2014 provides that the Secretary, subject to the availability of 
funds, shall enter into a separate reimbursement agreement to reimburse 
the non-Federal sponsor for the difference between creditable LERRDs 
and in-kind contributions and the non-Federal cost share. Therefore, at 
the final accounting for the project, to the extent funds for the 
project remain available, the Secretary shall execute an agreement with 
the non-Federal sponsor for reimbursement of the difference.
    (2) If funds remaining on a project are insufficient to provide 
full reimbursement under paragraph f.(1), the non-Federal sponsor may 
request reimbursement. The Secretary shall prioritize such requests, 
and enter into reimbursements agreements, in the order the requests 
were received, as funds become available for reimbursements.
    5. Design. Design by the non-Federal sponsor must be performed in 
accordance with the requirements in ER 1110-2-1150, reviewed in 
accordance with ER 1110-1-12, and subject to the applicable peer review 
guidance. In accordance with section 105(c) of WRDA 1986, the costs of 
design shall be shared in the same percentages as the purposes of such 
project.
    a. If the value of eligible in-kind contributions is less than the 
non-Federal sponsor's share of design costs, the non-Federal sponsor 
must contribute sufficient funds to equal its share of total design 
costs.
    b. If the value of eligible in-kind contributions is greater than 
the non-Federal sponsor's share of total design costs, then no cash 
payment from the non-Federal sponsor is required. The value of all of 
the non-Federal sponsor's eligible in-kind contributions (including 
those in excess of its share of total design costs) will be included in 
total project costs in the PPA. The maximum amount of credit that may 
be afforded pursuant to the PPA is limited to the non-Federal sponsor's 
cost share under that agreement.
    6. Construction.
    a. To be eligible for credit, in-kind contributions prior to 
execution of the PPA must have been provided or performed after 
execution of an In-Kind MOU. Credit for in-kind contributions will not 
be afforded toward the non-Federal sponsor's requirement to provide in 
cash 5 percent of the costs for structural flood damage reduction 
projects (either specifically authorized or implemented pursuant to 
Continuing Authority Program Sections 14, 205, or 208 projects); the 
non-Federal sponsor's requirement to pay for betterments or any other 
work performed by the Government on behalf of the non-Federal sponsor; 
the non-Federal sponsor's requirement to provide lands, easements, 
rights-of-way, relocations, or improvements to enable the disposal of 
dredged or excavated material required for the project or separable 
element of the project; or the non-Federal sponsor's additional payment 
of 10 percent of the cost of general navigation features for a 
navigation project.
    b. The non-Federal sponsor may not initiate construction following 
execution of a PPA until the designs, detailed plans and 
specifications, and arrangements for the prosecution of such work have 
been approved by the Government. In addition, any proposed changes to 
approved designs and plans and specifications must be approved by the 
Government in advance of such construction. Upon completion of 
construction, the non-Federal sponsor will furnish to the Government a 
copy of all final as-built drawings.
    c. For CAP authorities and regional authorities that are 
implemented with a single agreement covering design and implementation, 
if a non-Federal sponsor proposes to provide or perform all or a 
portion of the design for a project as in-kind contributions, a PPA 
addressing both design and construction is required.

FOR THE COMMANDER:
Colonel, Corps of Engineers
Chief of Staff

Enclosures: 2 Appendices
Appendix A--Section 221(a)(4) of the Flood Control Act of 1970, as 
amended (42 U.S.C. 1962d-5b(a)(4) Section 221(a)(4) of the Flood 
Control Act of 1970, as amended, and Section 1018 of WRRDA 2014
Appendix B--Criteria for In-Kind Contribution Integral Determinations

APPENDIX A

Section 221(a)(4) of the Flood Control Act of 1970, as amended (42 
U.S.C. 1962d-5b(a)(4))

SEC. 221. WRITTEN AGREEMENT REQUIREMENT FOR WATER RESOURCES PROJECTS.

COOPERATION OF NON-FEDERAL INTEREST.

    (4) Credit for in-kind contributions.
    (A) In general. A partnership agreement described in paragraph (1) 
may provide with respect to a project that the Secretary shall credit 
toward the non-Federal share of the cost of the project, including a 
project implemented without specific authorization in law or a project 
under an environmental infrastructure assistance program, the value of 
in-kind contributions made by the non-Federal interest, including--
    (i) the costs of planning (including data collection), design, 
management, mitigation, construction, and construction services that 
are provided by the non-Federal interest for implementation of the 
project;
    (ii) the value of materials or services provided before execution 
of the partnership agreement, including efforts on constructed elements 
incorporated into the project; and
    (iii) the value of materials and services provided after execution 
of the partnership agreement.
    (B) Condition. The Secretary may credit an in-kind contribution 
under subparagraph (A) only if the Secretary determines that the 
material or service provided as an in-kind contribution is integral to 
the project.
    (C) Work performed before partnership agreement.
    (i) Construction.
    (I) In general. In any case in which the non-Federal interest is to 
receive credit under subparagraph (A) for the cost of construction 
carried out by the non-Federal interest before execution of a 
partnership agreement and that construction has not been carried out as 
of November 8, 2007, the Secretary and the non-Federal interest shall 
enter into an agreement under which the non-Federal interest shall 
carry out such work and shall do so prior to the non-Federal interest 
initiating construction or issuing a written notice to proceed for the 
construction.
    (II) Eligibility. Construction that is carried out after the 
execution of an agreement to carry out work described in subclause (I) 
and any design activities that are required for that construction, even 
if the design activity is carried out prior to the execution of the 
agreement to carry out work, shall be eligible for credit.
    (ii) Planning.
    (I) In general. In any case in which the non-Federal interest is to 
receive credit

[[Page 52262]]

under subparagraph (A) for the cost of planning carried out by the non-
Federal interest before execution of a feasibility cost-sharing 
agreement, the Secretary and the non-Federal interest shall enter into 
an agreement under which the non-Federal interest shall carry out such 
work and shall do so prior to the non-Federal interest initiating that 
planning.
    (II) Eligibility. Planning that is carried out by the non-Federal 
interest after the execution of an agreement to carry out work 
described in subclause (I) shall be eligible for credit.
    (D) Limitations. Credit authorized under this paragraph for a 
project--
    (i) shall not exceed the non-Federal share of the cost of the 
project;
    (ii) shall not alter any other requirement that a non-Federal 
interest provide lands, easements, relocations, rights-of-way, or areas 
for disposal of dredged material for the project;
    (iii) shall not alter any requirement that a non-Federal interest 
pay a portion of the costs of construction of the project under 
sections 101(a)(2) and 103(a)(1)(A) of the Water Resources Development 
Act of 1986 (33 U.S.C. 2211(a)(2); 33 U.S.C. 2213(a)(1)(A)) of the 
Water Resources Development Act of 1986 (33 U.S.C. 2211; 33 U.S.C. 
2213); and
    (iv) shall not exceed the actual and reasonable costs of the 
materials, services, or other things provided by the non-Federal 
interest, as determined by the Secretary.
    (E) Analysis of costs and benefits. In the evaluation of the costs 
and benefits of a project, the Secretary shall not consider 
construction carried out by a non-Federal interest under this 
subsection as part of the future without project condition.
    (F) Transfer of credit between separable elements of a project. 
Credit for in-kind contributions provided by a non-Federal interest 
that are in excess of the non-Federal cost share for an authorized 
separable element of a project may be applied toward the non-Federal 
cost share for a different authorized separable element of the same 
project.
    (G) Application of credit.
    (i) In general. To the extent that credit for in-kind 
contributions, as limited by subparagraph (D), and credit for required 
land, easements, rights-of-way, dredged material disposal areas, and 
relocations provided by the non-Federal interest exceed the non-Federal 
share of the cost of construction of a project other than a navigation 
project, the Secretary, subject to the availability of funds, shall 
enter into a reimbursement agreement with the non-Federal interest, 
which shall be in addition to a partnership agreement under 
subparagraph (A), to reimburse the difference to the non-Federal 
interest.
    (ii) Priority. If appropriated funds are insufficient to cover the 
full cost of all requested reimbursement agreements under clause (i), 
the Secretary shall enter into reimbursement agreements in the order in 
which requests for such agreements are received.''; and
    (H) Applicability.
    (i) In general. This paragraph shall apply to water resources 
projects authorized after November 16, 1986, including projects 
initiated after November 16, 1986, without specific authorization in 
law, and to water resources projects authorized prior to the date of 
enactment of the Water Resources Development Act of 1986 (Public Law 
99-662) [enacted June 10, 2014], if correction of design deficiencies 
is necessary.
    (ii) Authorization as addition to other authorizations. The 
authority of the Secretary to provide credit for in-kind contributions 
pursuant to this paragraph shall be in addition to any other 
authorization to provide credit for in-kind contributions and shall not 
be construed as a limitation on such other authorization. The Secretary 
shall apply the provisions of this paragraph, in lieu of provisions 
under other crediting authority, only if so requested by the non-
Federal interest.
Section 1018 of the Water Resources Reform and Development Act of 2014

Sec. 1018. CREDIT FOR IN-KIND CONTRIBUTIONS.

    (a) In General.--Section 221(a)(4) of the Flood Control Act of 1970 
(42 U.S.C. 1962d-5b(a)(4)) is amended--
    (1) in subparagraph (A), in the matter preceding clause (i), by 
inserting ``or a project under an environmental infrastructure 
assistance program'' after ``law'';
    (2) in subparagraph (C) by striking ``In any case'' and all that 
follows through the period at the end and inserting the following:
    ``(i) CONSTRUCTION.--
    ``(I) In General.--In any case in which the non-Federal interest is 
to receive credit under subparagraph (A) for the cost of construction 
carried out by the non-Federal interest before execution of a 
partnership agreement and that construction has not been carried out as 
of November 8, 2007, the Secretary and the non-Federal interest shall 
enter into an agreement under which the non-Federal interest shall 
carry out such work and shall do so prior to the non-Federal interest 
initiating construction or issuing a written notice to proceed for the 
construction.
    ``(II) Eligibility.--Construction that is carried out after the 
execution of an agreement to carry out work described in subclause (I) 
and any design activities that are required for that construction, even 
if the design activity is carried out prior to the execution of the 
agreement to carry out work, shall be eligible for credit.
    ``(ii) PLANNING.--
    ``(I) In General.--In any case in which the non-Federal interest is 
to receive credit under subparagraph (A) for the cost of planning 
carried out by the non-Federal interest before execution of a 
feasibility cost-sharing agreement, the Secretary and the non-Federal 
interest shall enter into an agreement under which the non-Federal 
interest shall carry out such work and shall do so prior to the non-
Federal interest initiating that planning.
    ``(II) Eligibility.--Planning that is carried out by the non-
Federal interest after the execution of an agreement to carry out work 
described in subclause (I) shall be eligible for credit.'';
    (3) in subparagraph (D)(iii) by striking ``sections 101 and 103'' 
and inserting ``sections 101(a)(2) and 103(a)(1)(A) of the Water 
Resources Development Act of 1986 (33 U.S.C. 2211(a)(2); 33 U.S.C. 
2213(a)(1)(A))'';
    (4) by redesignating subparagraph (E) as subparagraph (H);
    (5) by inserting after subparagraph (D) the following:
    ``(E) Analysis of Costs and Benefits.--In the evaluation of the 
costs and benefits of a project, the Secretary shall not consider 
construction carried out by a non-Federal interest under this 
subsection as part of the future without project condition.
    ``(F) Transfer of Credit Between Separable Elements of a Project.--
Credit for in-kind contributions provided by a non-Federal interest 
that are in excess of the non-Federal cost share for an authorized 
separable element of a project may be applied toward the non-Federal 
cost share for a different authorized separable element of the same 
project.
    ``(G) APPLICATION OF CREDIT.--
    ``(i) In General.--To the extent that credit for in-kind 
contributions, as limited by subparagraph (D), and credit for required 
land, easements, rights-of-way, dredged material disposal areas, and 
relocations provided by the non-Federal interest exceed the non-Federal 
share of the cost of construction of a project other than a navigation 
project, the Secretary, subject to the availability of funds, shall 
enter into a reimbursement agreement with the non-Federal interest, 
which shall be in addition to a partnership agreement

[[Page 52263]]

under subparagraph (A), to reimburse the difference to the non-Federal 
interest.
    ``(ii) Priority.--If appropriated funds are insufficient to cover 
the full cost of all requested reimbursement agreements under clause 
(i), the Secretary shall enter into reimbursement agreements in the 
order in which requests for such agreements are received.''; and
    (6) in subparagraph (H) (as redesignated by paragraph (4))--
    (A) in clause (i) by inserting ``, and to water resources projects 
authorized prior to the date of enactment of the Water Resources 
Development Act of 1986 (Public Law 99-662), if correction of design 
deficiencies is necessary'' before the period at the end; and
    (B) by striking clause (ii) and inserting the following:
    ``(ii) Authorization As Addition to Other Authorizations.--The 
authority of the Secretary to provide credit for in-kind contributions 
pursuant to this paragraph shall be in addition to any other 
authorization to provide credit for in-kind contributions and shall not 
be construed as a limitation on such other authorization. The Secretary 
shall apply the provisions of this paragraph, in lieu of provisions 
under other crediting authority, only if so requested by the non-
Federal interest.''.
    (b) Applicability.--Section 2003(e) of the Water Resources 
Development Act of 2007 (42 U.S.C. 1962d-5b note) is amended--
    (1) by inserting ``, or construction of design deficiency 
corrections on the project,'' after ``construction on the project''; 
and
    (2) by inserting ``, or under which construction of the project has 
not been completed and the work to be performed by the non-Federal 
interests has not been carried out and is creditable only toward any 
remaining non-Federal cost share,'' after ``has not been initiated''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
take effect on November 8, 2007.
    (d) Guidelines.--
    (1) In General.-- Not later than 1 year after the date of enactment 
of this Act, the Secretary shall update any guidance or regulations for 
carrying out section 221(a)(4) of the Flood Control Act of 1970 (42 
U.S.C. 1962d-5b(a)(4)) (as amended by subsection (a)) that are in 
existence on the date of enactment of this Act or issue new guidelines, 
as determined to be appropriate by the Secretary.
    (2) Inclusions.-- Any guidance, regulations, or guidelines updated 
or issued under paragraph (1) shall include, at a minimum--
    (A) the milestone for executing an in-kind memorandum of 
understanding for construction by a non-Federal interest;
    (B) criteria and procedures for evaluating a request to execute an 
in-kind memorandum of understanding for construction by a non-Federal 
interest that is earlier than the milestone under subparagraph (A) for 
that execution; and
    (C) criteria and procedures for determining whether work carried 
out by a non-Federal interest is integral to a project.
    (3) Public and Stakeholder Participation.-- Before issuing any new 
or revised guidance, regulations, or guidelines or any subsequent 
updates to those documents, the Secretary shall--
    (A) consult with affected non-Federal interests;
    (B) publish the proposed guidelines developed under this subsection 
in the Federal Register; and
    (C) provide the public with an opportunity to comment on the 
proposed guidelines.
    (e) Other Credit.--Nothing in section 221(a)(4) of the Flood 
Control Act of 1970 (42 U.S.C. 1962d-5b(a)(4)) (as amended by 
subsection (a)) affects any eligibility for credit under section 104 of 
the Water Resources Development of 1986 (33 U.S.C. 2214) that was 
approved by the Secretary prior to the date of enactment of this Act.

APPENDIX B

Criteria and Procedures for In-Kind Contribution Integral 
Determinations
    C-1. Determining if In-Kind Contributions Are Integral to the 
Study/Project. Establishing and allowing credit is a two step process 
whereby: 1) eligibility is determined by performing the integral 
determination, and 2) actual affording of credit is accomplished by 
audit of the non-Federal work by the District Engineer under the terms 
of the FCSA, DA, or PPA, as appropriate. The Government must determine 
that the in-kind contributions are integral to the study or project for 
those contributions to be considered eligible for credit.
    a. Approval Level of Integral Determinations. Under the terms of 
Paragraph 4.e.. of this regulation, approval of integral determinations 
is delegated to the MSC Commander. This authority may not be further 
delegated.
    b. Timing of Integral Determinations.
    (1) The integral determination must be completed immediately prior 
to review and approval of a DA or PPA, or amendment as applicable, that 
provides for the affording of credit. The integral determination for 
planning efforts is accomplished as part of the development of the PMP. 
An integral determination is not required prior to execution of an In-
Kind MOU for design or construction.
    (2) Include at least 30 days in the project schedule for processing 
at the MSC of the Integral Determinations by the MSC Commander. These 
times are recommended for scheduling purposes and should be extended if 
processing identifies significant issues requiring resolution.
    c. Procedures for Processing.
    (1) For a feasibility study, planning activities, including data 
collection, must be included in the approved Project Management Plan in 
order for those contributions to be eligible for credit.
    (2) The District will prepare an Integral Determination Report 
(IDR) for design and construction work that includes at a minimum the 
information contained in the following paragraphs. A suggested format 
for an IDR can be found at www.Corpsplanning.us. The IDR shall contain 
a description of the activities required to perform the design or 
construction, as applicable, of the Federal project or separable 
element in sufficient detail to allow a comparison with the description 
of the proposed in-kind contributions; a detailed description of the 
work items proposed to be provided or performed as in-kind 
contributions; a discussion of how each work item proposed to be 
provided or performed as an in-kind contribution is integral to the 
project; an estimate of the costs of each work item proposed to be 
provided or performed as an in-kind contribution; the estimated amount 
of credit to be afforded for each work item proposed to be provided or 
performed as an in-kind contribution; and a District Commander 
recommendation identifying which of the proposed in-kind contributions 
should be considered integral to the project. If the in-kind 
contributions were provided or performed prior to execution of the 
applicable cost sharing agreement, then also include in the IDR the 
results of the review or inspection, as applicable, and certification 
by the District Commander on whether the work was accomplished in a 
satisfactory manner and in accordance with applicable Federal laws, 
regulations, and policies; and documentation of satisfactory 
environmental compliance for the construction portion of the in-kind 
contributions.
    (3) The district will submit the IDR to the MSC District Support 
Team for action. The MSC District Support Team will perform the MSC 
review of the IDR. The MSC review team also will include members from 
the MSC Office of Counsel and from the MSC Planning Community of 
Practice (CoP), MSC

[[Page 52264]]

Engineering and Construction CoP, MSC Real Estate CoP, and other CoPs, 
as needed. In addition, if the proposed in-kind contributions consist 
of design or construction of dams, levees, or bridges, the MSC review 
team must include the MSC Dam, Levee, or Bridge Safety Officer. After 
satisfactory resolution of all comments on the IDR and a determination 
that the IDR complies with all applicable law and policy, the MSC 
District Support Team shall prepare an Integral Determination memo for 
approval and signature by the MSC Commander. If the IDR does not or 
cannot be modified to comply with law and policy, then the MSC should 
contact the HQUSACE RIT to facilitate the resolution of the concerns.
    (4) The Integral Determination approval memo will state whether the 
work identified in the IDR, or a portion thereof, has been determined 
to be integral to the project. In addition, the memo should state that 
determination of the actual value of the in-kind contributions and 
affording credit for such amount will be accomplished by the Government 
in accordance with the limitations, conditions, and terms of the 
applicable cost sharing agreement.
    C-2. The following may be accepted as integral:
    The proposed in-kind contributions are a part of the Federal 
project.
    b. The proposed in-kind contributions consist of work that the 
Government would have otherwise provided or performed for the project, 
except for performance of activities that are inherently Governmental 
responsibilities (see paragraph C-3 below). Examples of activities that 
are acceptable in-kind contributions: performance of design of all or a 
portion of the Federal project, including data collection related to 
design work; demolition of buildings on lands required for the project; 
performance of design or construction related studies for historic 
preservation activities; performance of cost shared monitoring and 
adaptive management; and construction of a portion of the project.
    c. For proposed in-kind contributions performed prior to execution 
of the applicable cost sharing agreement, the in-kind contributions 
have been reviewed or inspected, as applicable, and certified by the 
Government that the work was accomplished in a satisfactory manner and 
in accordance with applicable Federal laws, regulations, and policies.
    d. For any proposed in-kind contributions proposed to be performed 
after execution of the PPA, the plans and specifications will be 
approved by the District Commander prior to initiation of the 
construction work.
    e. For materials provided for use in construction work managed by 
the Government, the materials meet the minimum Government requirements 
for materials and any substitute materials have been determined to be a 
functional equivalent in accordance with policies governing contractor 
substitution of materials.
    C-3. The following will not be accepted as integral:
    a. The proposed in-kind contributions are not part of the Federal 
project.
    b. The proposed in-kind contributions consist of performance of 
activities that are inherently Governmental responsibilities (e.g., 
management of Government contracts; performance of District Quality 
Review, Agency Technical Review, Independent External Peer Review, or 
Policy Compliance Review; determining if Value Engineering evaluations 
are acceptable; determining the LERRD required for the project or 
separable element of the project; determining the value of LERRD for 
crediting purposes; or making determinations as to compliance with 
applicable environmental laws and regulations).
    c. The proposed in-kind contributions are features or obligations 
that are a 100 percent non-Federal sponsor responsibility (e.g., 
purposes of land reclamation, local drainage, to protect against land 
or bank erosion, and/or the removal of hazardous, toxic, or radioactive 
wastes; local service facilities; betterments; acquisition and 
performance of LERRD, except for the provision of dredged or excavated 
material disposal facilities for commercial navigation projects; and 
performance of OMRR&R);
    d. The proposed in-kind contributions have or will create a hazard 
to human life or property.
    e. The proposed in-kind contributions have been determined to be 
environmentally unacceptable.
    f. For proposed in-kind contributions performed prior to execution 
of the applicable cost sharing agreement, after review or inspection, 
as applicable, the Government cannot certify the proposed in-kind 
contributions were accomplished in a satisfactory manner and in 
accordance with applicable Federal laws, regulations, and policies.
    g. For proposed in-kind contributions performed prior to execution 
of the applicable cost sharing agreement, the non-Federal sponsor has 
not performed the necessary operation, maintenance, repair, 
rehabilitation, or replacement.

[FR Doc. 2015-21355 Filed 8-27-15; 8:45 am]
 BILLING CODE 3720-58-P



                                             52258                         Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Notices

                                             NSN(s)—Product Name(s): 8105–00–NIB–                       Mail: U.S. Army Corps of Engineers,                of ER 1165–2–208 in the Federal
                                                 1412—Aquapad Sand-less Sandbag                      Attn: CECW–CE, Janice E. Rasgus, 441 G                Register and offer the public an
                                             Mandatory Source of Supply: Envision                    Street NW., Washington, DC 20314–                     opportunity to comment on the
                                                 Industries, Inc., Wichita, KS
                                                                                                     1000.                                                 proposed guidelines. The Corps will
                                             Mandatory Purchase For: Total Government
                                                 Requirement
                                                                                                        Hand Delivery/Courier: Due to                      review all comments received by the
                                             Contracting Activity: Defense Logistics                 security requirements, we cannot                      deadline and will make its response to
                                                 Agency Troop Support, Construction &                receive comments by hand delivery or                  those comments available when then ER
                                                 Equipment                                           courier.                                              is finalized and published on the Corps
                                             Distribution: B-List                                       Instructions: Direct your comments to              Web site.
                                             NSN(s)—Product Name(s): 8540–00–262–                    docket number COE–2015–0013. All                         Authority: We are proposing to issue
                                                 7178—Towel, Paper, Single-Fold,                     comments received will be included in                 this Engineering Regulation under the
                                                 Natural, 9–1/4’’ W                                  the public docket without change and
                                             Mandatory Purchase For: Total Government                                                                      authority of Section 221 (a)(4) of the
                                                                                                     may be made available on-line at                      Flood Control Act of 1970, as amended.
                                                 Requirement
                                             Mandatory Source of Supply: The Lighthouse              http://www.regulations.gov, including
                                                                                                                                                             Dated: August 24, 2015.
                                                 for the Blind in New Orleans, Inc., New             any personal information provided,
                                                                                                     unless the commenter indicates that the               Theodore A. Brown,
                                                 Orleans, LA
                                             Contracting Activity: General Services                  comment includes information claimed                  Chief, Planning and Policy Division,
                                                 Administration, New York, NY                        to be Confidential Business Information               Directorate of Civil Works.
                                             Distribution: A-List                                    (CBI) or other information whose                      Engineering Regulation, ER 1165–2–208,
                                             Service:                                                disclosure is restricted by statute. Do                 In-Kind Contribution Credit
                                             Service Type: Laundry and Linen Service
                                                                                                     not submit information that you                         Provisions of Section 221(a)(4) of the
                                             Service Mandatory For: US Air Force, 2610               consider to be CBI, or otherwise                        Flood Control Act of 1970, as
                                                 Pink Flamingo Avenue, MacDill AFB, FL               protected, through regulations.gov or                   amended.
                                             Mandatory Source of Supply: Goodwill                    email. The regulations.gov Web site is
                                                 Industries of South Florida, Inc., Miami,           an anonymous access system, which                        1. Purpose. This regulation provides
                                                 FL                                                  means we will not know your identity                  guidance on the implementation of the
                                             Contracting Activity: Dept of the Air Force,            or contact information unless you                     in-kind contribution credit provisions of
                                                 FA4814 6 CONS LGCP, Tampa, FL
                                                                                                     provide it in the body of your comment.               Section 221(a)(4) of the Flood Control
                                                                                                     If you send an email directly to the                  Act of 1970, as further amended by
                                             Barry S. Lineback,
                                                                                                     Corps without going through                           Section 1018 of the Water Resources
                                             Director, Business Operations.
                                                                                                     regulations.gov, your email address will              Reform and Development Act of 2014
                                             [FR Doc. 2015–21363 Filed 8–27–15; 8:45 am]                                                                   (WRRDA 2014) (42 U.S.C. 1962d–
                                                                                                     be automatically captured and included
                                             BILLING CODE 6353–01–P
                                                                                                     as part of the comment that is placed in              5b(a)(4)) (hereinafter referred to as
                                                                                                     the public docket and made available on               ‘‘Section 221’’). Section 221(a)(4) of the
                                                                                                     the Internet. If you submit an electronic             Flood Control Act of 1970, as amended,
                                             DEPARTMENT OF DEFENSE                                                                                         and Section 1018 of WRRDA 2014 are
                                                                                                     comment, we recommend that you
                                                                                                     include your name and other contact                   provided in Appendix A. This
                                             Department of the Army, Corps of                                                                              regulation supersedes ER 1165–2–208
                                             Engineers                                               information in the body of your
                                                                                                     comment and with any disk or CD–ROM                   dated 17 February 2012.
                                             Guidelines for Carrying Out Section                     you submit. If we cannot read your                       2. Distribution Statement. Approved
                                             221(a)(4) of the Flood Control Act of                   comment because of technical                          for public release. Distribution is
                                             1970, as Amended                                        difficulties and cannot contact you for               unlimited.
                                                                                                     clarification, we may not be able to                     3. Applicability. This regulation
                                             AGENCY: United States Army Corps of                                                                           applies to all HQUSACE elements,
                                                                                                     consider your comment. Electronic
                                             Engineers, Department of Defense.                                                                             Major Subordinate Commands (MSCs),
                                                                                                     comments should avoid the use of any
                                             ACTION: Notice.                                         special characters, any form of                       and district commands having Civil
                                                                                                     encryption, and be free of any defects or             Works responsibility and is effective
                                             SUMMARY:   The U.S. Army Corps of                                                                             immediately.
                                             Engineers (Corps) has updated the                       viruses.
                                                                                                        Docket: For access to the docket to                   a. The Section 221 crediting
                                             existing guidance for providing in-kind                                                                       provisions apply to the study, design,
                                             credit under Section 221(a)(4) of the                   read background documents or
                                                                                                     comments received, go to                              and construction of water resources
                                             Flood Control Act of 1970, as further                                                                         development projects authorized in the
                                             amended by Section 1018 of the Water                    www.regulations.gov. All documents in
                                                                                                     the docket are listed. Although listed in             Water Resources Development Act of
                                             Resources Reform and Development Act                                                                          1986 or later laws, including projects
                                             of 2014.                                                the index, some information is not
                                                                                                     publicly available, such as CBI or other              initiated after November 16, 1986
                                             DATES: Written comments must be                                                                               without specific authorization in law. In
                                                                                                     information whose disclosure is
                                             submitted on or before September 28,                                                                          addition, the crediting provisions apply
                                                                                                     restricted by statute. Certain other
                                             2015.                                                                                                         to the correction of design deficiencies
                                                                                                     material, such as copyrighted material,
                                             ADDRESSES: You may submit comments,                     is not placed on the Internet and will be             for projects authorized prior to the
                                             identified by docket number COE–                        publicly available only in hard copy                  Water Resources Development Act of
                                             2015–0013 by any of the following                       form.                                                 1986. Finally, these provisions are also
                                             methods:                                                                                                      applicable to a project under the an
                                                                                                     FOR FURTHER INFORMATION CONTACT:
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                                                Federal eRulemaking Portal: http://                                                                        environmental infrastructure assistance
                                             www.regulations.gov . Follow the                        Janice E. Rasgus, Planning and Policy                 program.
                                             instructions for submitting comments.                   Division, Washington, DC at 202–761–                     (1) For a project with a project
                                                Email: Janice.E.Rasgus@                              7674.                                                 partnership agreement (PPA) that was
                                             usace.army.mil. Include the docket                      SUPPLEMENTARY INFORMATION: Section                    executed on or after November 8, 2007,
                                             number, COE–2015–0013, in the subject                   1018(d) of WRRDA 2014 requires the                    such PPA may be amended to include
                                             line of the message.                                    Corps to update and publish this draft                work by the non-Federal sponsor that


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                                                                           Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Notices                                             52259

                                             has not yet been initiated for credit                   is eligible for credit only if the non-                  (b) Continuing Authority Program. For
                                             toward any remaining non-Federal cost                   Federal sponsor executes an agreement                 projects implemented under the
                                             share under that agreement.                             with the Secretary prior to carrying out              Continuing Authority Program or a
                                                (2) Furthermore, in general, the                     such work. For purposes of section 221                regional authority that does not require
                                             crediting provisions of Section 221 will                crediting only, ‘‘carrying out’’                      additional authorization to implement
                                             be used in lieu of Section 104 of WRDA                  construction work means initiation of                 the project, an In-Kind MOU for design
                                             1986 and Section 215 of the Flood                       construction using the non-Federal                    and implementation may be executed
                                             Control Act of 1968. However, any                       sponsor’s labor force or issuance of the              after the MSC Commander approves the
                                             eligibility for credit under Section 104                notice to proceed for such construction               decision document for the project.
                                             of WRDA 1986 that was approved                          if undertaken by contract. Therefore, in                 (2) Design. For projects that are or will
                                             previously by the Secretary will be                     those cases where there is not yet an                 be specifically authorized for
                                             honored.                                                executed PPA, the non-Federal sponsor                 construction, an In-Kind MOU for
                                                b. The authority for credit under                    must execute an in-kind MOU with the                  design may be executed after the TSP
                                             Section 221 credit is in addition to any                Corps of Engineers prior to initiating                milestone, i.e., the point at which there
                                             other authority to provide credit for in-               construction or issuing the notice to                 is vertical team concurrence on the
                                             kind contributions. Section 221 credit                  proceed. Design work associated with                  tentatively selected plan that will be
                                             may be applied in lieu of other crediting               that construction is eligible for credit as           released in the draft study report for
                                             provisions if requested by the non-                     long as an in-kind MOU or PPA is                      public and agency review.
                                             federal sponsor.                                        executed prior to the construction being                 (3) Planning.
                                                4. Key Principles.                                   carried out. In addition, the                            (a) Projects Specifically Authorized.
                                                a. In General. Section 221 is a                                                                            For projects that are or will be
                                                                                                     construction carried out by the non-
                                             comprehensive authority that addresses                                                                        specifically authorized for construction,
                                                                                                     Federal sponsor is not considered as
                                             the affording of credit for the value of                                                                      Section 1002 of WRRDA 2014
                                                                                                     part of the future without project
                                             in-kind contributions provided by a                                                                           eliminated the full Federal
                                                                                                     condition.
                                             non-Federal sponsor toward its required                                                                       reconnaissance phase that used to be
                                                                                                        (a) Projects Specifically Authorized.
                                             cost share (excluding the required 5                                                                          undertaken prior to execution of a
                                                                                                     For projects that are or will be
                                             percent cash for structural flood damage                                                                      feasibility cost sharing agreement. In the
                                                                                                     specifically authorized for construction,
                                             reduction projects and the additional 10                                                                      past, a project management plan, which
                                                                                                     an In-Kind MOU for construction may
                                             percent cash payment over 30 years for                                                                        established the scope of the planning,
                                                                                                     be executed once there is vertical team
                                             navigation projects) if those in-kind                                                                         including activities needed to carry out
                                                                                                     concurrence with the Tentatively                      the study, was developed during this
                                             contributions are determined to be
                                                                                                     Selected Plan (TSP Milestone). The TSP                reconnaissance phase. Under the new
                                             integral to a study or project.
                                                b. Types of In-Kind Contributions. The               milestone is the point at which there is              single phase study process mandated by
                                             types of in-kind contributions eligible                 vertical team concurrence on the plan                 WRRDA 2014, the project management
                                             for credit include planning activities                  that will be released in the draft study              plan will not be developed until after
                                             (including data collection and other                    report for public and agency review.                  execution of feasibility cost sharing
                                             services needed for a feasibility study);               Given the new SMART Planning                          agreement. Therefore, an In-Kind MOU
                                             design related to construction; and                     Process, the TSP Milestone should                     for planning is not permitted as the
                                             construction (including management;                     occur much earlier in the planning                    project management plan, including a
                                             mitigation; and construction materials                  process than what was previously                      determination of the scope of the study,
                                             and services).                                          achieved. Requests from non-Federal                   will not be developed until after
                                                c. Compliance with Applicable                        sponsors to execute an in-kind MOU for                execution of a feasibility cost sharing
                                             Federal Laws, Regulations, and Policies.                construction prior to the TSP Milestone               agreement.
                                             Eligibility for credit is subject to the                will be considered on a case-by- case                    (b) Continuing Authority Program. For
                                             non-Federal sponsor complying with all                  basis and must be approved by the                     projects implemented under the
                                             applicable Federal laws and                             Assistant Secretary of the Army (Civil                Continuing Authority Program or a
                                             implementing regulations, including,                    Works). Since each project presents its               regional authority that does not require
                                             but not limited to Section 601 of the                   own unique combination of                             additional authorization to implement
                                             Civil Rights Act of 1964, as amended (42                circumstances, each request will require              the project, sections 905(c) and 105(a)(3)
                                             U.S.C. 2000d), and Department of                        an individual evaluation that will                    of WRDA 1986, as amended, provide
                                             Defense Directive 5500.11 issued                        include consideration of, but not limited             that the first $100,000 of these studies
                                             pursuant thereto; the Age                               to, the following criteria:                           is a Federal expense. Therefore, once a
                                             Discrimination Act of 1975 (42 U.S.C.                      (i) Whether the proposed work is a                 PMP has been developed and the MSC
                                             6102); the Rehabilitation Act of 1973, as               modification of an existing Federal                   Commander has approved initiation of
                                             amended (29 U.S.C. 794), and Army                       project;                                              the feasibility study, an In-Kind MOU
                                             Regulation 600–7 issued pursuant                           (ii) Whether the proposed work will                for planning may be executed.
                                             thereto; and 40 U.S.C. 3141–3148 and                    follow an existing levee alignment in                    (4) Any work undertaken by a non-
                                             40 U.S.C. 3701–3708 (labor standards                    the case of a flood risk management                   Federal sponsor pursuant to an In-Kind
                                             originally enacted as the Davis-Bacon                   project;                                              MOU is at its own risk and
                                             Act, the Contract Work Hours and                           (iii) Whether the proposed work                    responsibility. An In-Kind MOU
                                             Safety Standards Act, the Copeland                      balances and integrates the wise use of               provides no assurance that the non-
                                             Anti-Kickback Act); and the National                    flood plains to ensure public safety;                 Federal sponsor’s work will be
Lhorne on DSK5TPTVN1PROD with NOTICES




                                             Environmental Policy Act and other                         (iv) Whether the proposed work                     determined to be integral to the Federal
                                             environmental laws and regulations.                     significantly reduces flood damage risk               project or that any construction
                                                d. In-Kind Memorandum of                             to human life, property or critical                   undertaken by the non-Federal sponsor
                                             Understanding (MOU).                                    infrastructure; and                                   will be included as part of any
                                                (1) Construction. Section 221 provides                  (iv) Whether the proposed work will                ultimately recommended Federal
                                             that any construction work that has not                 likely be included in the final project               project. Execution of an In-Kind MOU
                                             been carried out as of November 8, 2007                 recommendation.                                       in no way obligates the Corps to enter


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                                             52260                         Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Notices

                                             into any future agreement for the                       accomplished by the Government. This                  for in-kind contributions under a DA is
                                             project.                                                amount is not subject to interest charges             carried over to the PPA, and the
                                                (5) MSC Commanders may approve a                     or to adjustment to reflect changes in                maximum of amount of credit for in-
                                             District Engineer’s execution of Model                  price levels between the time the in-                 kind contributions under a PPA is
                                             In-Kind MOUs for Construction or for                    kind contributions were completed and                 limited to the non-Federal sponsor’s
                                             Design, provided that the MOUs do not                   the time the amount is credited.                      required cost share under the PPA.
                                             include any deviations. Any proposed                       (3) Any in-kind contributions                      Credit for in-kind contributions may not
                                             deviations must be submitted to                         performed or paid for by the non-                     be afforded toward the required 5
                                             HQUSACE for approval prior to                           Federal sponsor using funds provided                  percent cash payment for structural
                                             execution. Models for the In-kind MOU                   by another Federal agency (as well as                 flood damage reduction projects or the
                                             for construction, including design work,                any non-Federal matching share or                     additional 10 percent cash payment for
                                             and for design work only are available                  contribution that was required by such                navigation projects.
                                             at www.Corpsplanning.us.                                Federal agency for such program or                       (7) Credit for in-kind contributions for
                                                e. Integral Determinations.                          grant) are not eligible for credit unless             planning is limited to credit that can be
                                                (1) Section 221 provides that credit                 the Federal agency providing the                      afforded under a specific FCSA. In other
                                             may be afforded only if the Secretary                   Federal portion of such funds verifies in             words, excess credit may not be carried
                                             determines that the material or service                 writing that the funds are authorized to              over to design or construction of the
                                             provided as an in-kind contribution by                  be used to carry out the study or project.            project. Credit for planning work by the
                                             a non-Federal sponsor is integral to the                   (4) After execution of the applicable              non-Federal sponsor is limited to its 50
                                             study or project.1 To be integral to the                FCSA, DA, or PPA, the non-Federal                     percent of planning costs and will be
                                             study or project, the material or service               sponsor will submit to the Government                 done in accordance with the PMP,
                                             must be part of the work that the                       (not less frequently than every 6                     under the terms and conditions in the
                                             Federal Government would otherwise                      months) credit request(s) for eligible in-            FCSA.
                                             have undertaken for the study or for                    kind contributions under that                            (8) Credit for in-kind contributions
                                             construction of what is ultimately                      agreement. The credit requests will
                                                                                                                                                           provided by a non-Federal sponsor for
                                             determined to be the Federal project.                   contain the following: (a) Written
                                                                                                                                                           the construction of a project, or
                                             See Appendix B for additional guidance                  certification by the non-Federal sponsor
                                                                                                                                                           separable element thereof, that are in
                                             on criteria and procedures for                          of the payments made to contractors,
                                                                                                                                                           excess of the non-Federal cost share for
                                             processing integral determinations.                     suppliers, or employees for in-kind
                                                                                                                                                           an authorized separable element of a
                                                (2) The approval of integral                         contributions; (b) copies of all relevant
                                                                                                                                                           project may be applied toward the non-
                                             determinations is delegated to the MSC                  invoices and evidence of such
                                                                                                                                                           federal cost share for a different
                                             Commander. The approval authority                       payments; (c) written identification of
                                                                                                                                                           authorized separable element of the
                                             delegated to the MSC Commander is                       costs that have been paid with funds or
                                                                                                                                                           same project. Additional Federal
                                             subject to the full compliance of each                  grants provided by a Federal agency as
                                                                                                     well as any non-Federal matching share                appropriations will be required to offset
                                             integral determination to law and policy                                                                      the application of any excess credit to
                                             and may not be further delegated within                 or contribution that was required by
                                                                                                     such Federal agency for such program or               another separable element.
                                             the MSC or to the District Commander.                                                                            (9) If the value of eligible in-kind
                                             A separate integral determination is not                grant; and (d) a written request for credit
                                                                                                     of a specific amount not in excess of                 contributions exceeds the amount of
                                             required for planning activities included                                                                     credit that can be afforded pursuant to
                                             in the project management plan,                         such specified payments. Failure to
                                                                                                     provide sufficient documentation                      the provisions of a PPA (i.e., exceeds the
                                             approved by the MSC Commander, as                                                                             required non-Federal cost share for all
                                             required for the study effort.                          supporting the credit request will result
                                                                                                     in a denial of credit in accordance with              features covered by that PPA), only the
                                                f. Determining the Amount of Credit.                                                                       amount of credit afforded should be
                                                (1) The amount of in-kind                            the terms of the applicable cost sharing
                                                                                                     agreement.                                            included in total project costs.
                                             contributions that may be eligible for                                                                        Recalculation of total project costs will
                                             inclusion in shared costs for cost                         (5) In-kind contributions are subject to
                                                                                                     a review (for feasibility level and design            be required to exclude from total project
                                             sharing purposes under the applicable                                                                         costs the value of in-kind contributions
                                             cost sharing agreement will be subject to               activities) or on-site inspection
                                                                                                     (construction), as applicable, and                    that exceed the amount of credit that
                                             an audit by the Government to                                                                                 can be afforded. In addition, the amount
                                             determine the reasonableness,                           certification by the Government that the
                                                                                                     work was accomplished in a satisfactory               excluded will not be considered part of
                                             allocability, and allowability of such                                                                        total costs for the purposes of Section
                                             amount.                                                 manner and in accordance with
                                                                                                     applicable Federal laws, regulations,                 902 of WRDA 1986 calculations.
                                                (2) The creditable amount is the lesser
                                                                                                     and policies. The Government will not                    (10) No reimbursements are
                                             of the costs incurred by the non-Federal
                                                                                                     include in the costs to be shared under               authorized for in-kind contributions
                                             sponsor to obtain such materials or
                                                                                                     the applicable cost sharing agreement or              under Section 221 except as provided in
                                             services; the market value of such
                                                                                                     afford credit for any work the                        paragraph 4 g., below.
                                             materials or services as of the date that
                                                                                                     Government determines was not                            g. Lands, Easements, Relocations,
                                             the non-Federal sponsor provides such
                                                                                                     accomplished in a satisfactory manner                 Rights-of-Way, and Areas for Disposal of
                                             materials or services for use in the study
                                                                                                     or in accordance with applicable                      Dredged Material (LERRDs). Section 221
                                             or project; or the Government’s estimate
                                                                                                     Federal laws, regulations, and policies.              does not alter any other requirement for
                                             of the cost for such work if it had been
                                                                                                        (6) In general, the amount of credit for           the non-Federal sponsor to provide
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                                               1 The costs of Coordination Team participation        in-kind contributions that can be                     LERRDs for a project. Any LERRDs
                                             and audits are not in-kind contributions and are not    afforded under a FCSA or a PPA is                     associated with in-kind contributions
                                             included in ‘‘shared costs’’ for cost sharing           limited to the amount of the non-                     determined to be integral to the project
                                             purposes. The costs of the non-Federal Sponsor’s        Federal sponsor’s cost share under that               will be credited to the project as
                                             performance of investigations for hazardous
                                             substances are eligible for inclusion as a shared
                                                                                                     agreement. As the costs of design under               LERRDs. For a navigation project,
                                             costs and for credit as an in-kind contribution and     a Design Agreement (DA) are included                  LERRs are creditable only toward the
                                             do not require a separate integral determination.       in total project costs under a PPA, credit            requirement for the non-Federal sponsor


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                                                                           Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Notices                                           52261

                                             to pay an additional 10 percent of the                     a. To be eligible for credit, in-kind              SEC. 221. WRITTEN AGREEMENT
                                             cost of the general navigation features.                contributions prior to execution of the               REQUIREMENT FOR WATER
                                                (1) Previously, credit for in-kind                   PPA must have been provided or                        RESOURCES PROJECTS.
                                             contributions was afforded only toward                  performed after execution of an In-Kind               COOPERATION OF NON-FEDERAL
                                             the non-Federal sponsor’s required cash                 MOU. Credit for in-kind contributions                 INTEREST.
                                             contribution after consideration of the                 will not be afforded toward the non-
                                             value of LERRDs provided by the non-                    Federal sponsor’s requirement to                        (4) Credit for in-kind contributions.
                                             Federal sponsor. WRRDA 2014 changes                     provide in cash 5 percent of the costs for              (A) In general. A partnership
                                             how credit for in-kind contributions is                 structural flood damage reduction                     agreement described in paragraph (1)
                                             calculated. For projects other than                     projects (either specifically authorized              may provide with respect to a project
                                             navigation projects, to the extent that                 or implemented pursuant to Continuing                 that the Secretary shall credit toward
                                             credit for LERRDs combined with credit                  Authority Program Sections 14, 205, or                the non-Federal share of the cost of the
                                             for the value of in-kind contributions                  208 projects); the non-Federal sponsor’s              project, including a project
                                             exceed the non-Federal share of the cost                requirement to pay for betterments or                 implemented without specific
                                             of a project, WRRDA 2014 provides that                  any other work performed by the                       authorization in law or a project under
                                             the Secretary, subject to the availability              Government on behalf of the non-                      an environmental infrastructure
                                             of funds, shall enter into a separate                   Federal sponsor; the non-Federal                      assistance program, the value of in-kind
                                             reimbursement agreement to reimburse                    sponsor’s requirement to provide lands,               contributions made by the non-Federal
                                             the non-Federal sponsor for the                         easements, rights-of-way, relocations, or             interest, including—
                                             difference between creditable LERRDs                    improvements to enable the disposal of                  (i) the costs of planning (including
                                             and in-kind contributions and the non-                  dredged or excavated material required                data collection), design, management,
                                             Federal cost share. Therefore, at the                   for the project or separable element of               mitigation, construction, and
                                             final accounting for the project, to the                the project; or the non-Federal sponsor’s             construction services that are provided
                                             extent funds for the project remain                     additional payment of 10 percent of the               by the non-Federal interest for
                                             available, the Secretary shall execute an               cost of general navigation features for a             implementation of the project;
                                                                                                     navigation project.                                     (ii) the value of materials or services
                                             agreement with the non-Federal sponsor
                                                                                                                                                           provided before execution of the
                                             for reimbursement of the difference.                       b. The non-Federal sponsor may not                 partnership agreement, including efforts
                                                (2) If funds remaining on a project are              initiate construction following                       on constructed elements incorporated
                                             insufficient to provide full                            execution of a PPA until the designs,                 into the project; and
                                             reimbursement under paragraph f.(1),                    detailed plans and specifications, and                  (iii) the value of materials and
                                             the non-Federal sponsor may request                     arrangements for the prosecution of                   services provided after execution of the
                                             reimbursement. The Secretary shall                      such work have been approved by the                   partnership agreement.
                                             prioritize such requests, and enter into                Government. In addition, any proposed                   (B) Condition. The Secretary may
                                             reimbursements agreements, in the                       changes to approved designs and plans                 credit an in-kind contribution under
                                             order the requests were received, as                    and specifications must be approved by                subparagraph (A) only if the Secretary
                                             funds become available for                              the Government in advance of such                     determines that the material or service
                                             reimbursements.                                         construction. Upon completion of                      provided as an in-kind contribution is
                                                5. Design. Design by the non-Federal                 construction, the non-Federal sponsor                 integral to the project.
                                             sponsor must be performed in                            will furnish to the Government a copy                   (C) Work performed before
                                             accordance with the requirements in ER                  of all final as-built drawings.                       partnership agreement.
                                             1110–2–1150, reviewed in accordance                        c. For CAP authorities and regional                  (i) Construction.
                                             with ER 1110–1–12, and subject to the                   authorities that are implemented with a                 (I) In general. In any case in which the
                                             applicable peer review guidance. In                     single agreement covering design and                  non-Federal interest is to receive credit
                                             accordance with section 105(c) of                       implementation, if a non-Federal                      under subparagraph (A) for the cost of
                                             WRDA 1986, the costs of design shall be                 sponsor proposes to provide or perform                construction carried out by the non-
                                             shared in the same percentages as the                   all or a portion of the design for a                  Federal interest before execution of a
                                             purposes of such project.                               project as in-kind contributions, a PPA               partnership agreement and that
                                                a. If the value of eligible in-kind                  addressing both design and construction               construction has not been carried out as
                                             contributions is less than the non-                     is required.                                          of November 8, 2007, the Secretary and
                                             Federal sponsor’s share of design costs,                                                                      the non-Federal interest shall enter into
                                             the non-Federal sponsor must                            FOR THE COMMANDER:
                                                                                                                                                           an agreement under which the non-
                                             contribute sufficient funds to equal its                Colonel, Corps of Engineers                           Federal interest shall carry out such
                                             share of total design costs.                            Chief of Staff                                        work and shall do so prior to the non-
                                                b. If the value of eligible in-kind                                                                        Federal interest initiating construction
                                                                                                     Enclosures: 2 Appendices
                                             contributions is greater than the non-                                                                        or issuing a written notice to proceed for
                                             Federal sponsor’s share of total design                 Appendix A—Section 221(a)(4) of the
                                                                                                                                                           the construction.
                                             costs, then no cash payment from the                      Flood Control Act of 1970, as                         (II) Eligibility. Construction that is
                                             non-Federal sponsor is required. The                      amended (42 U.S.C. 1962d–5b(a)(4)                   carried out after the execution of an
                                             value of all of the non-Federal sponsor’s                 Section 221(a)(4) of the Flood Control              agreement to carry out work described
                                             eligible in-kind contributions (including                 Act of 1970, as amended, and Section                in subclause (I) and any design activities
                                             those in excess of its share of total                     1018 of WRRDA 2014                                  that are required for that construction,
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                                             design costs) will be included in total                 Appendix B—Criteria for In-Kind                       even if the design activity is carried out
                                             project costs in the PPA. The maximum                     Contribution Integral Determinations                prior to the execution of the agreement
                                             amount of credit that may be afforded                   APPENDIX A                                            to carry out work, shall be eligible for
                                             pursuant to the PPA is limited to the                                                                         credit.
                                             non-Federal sponsor’s cost share under                  Section 221(a)(4) of the Flood Control                  (ii) Planning.
                                             that agreement.                                           Act of 1970, as amended (42 U.S.C.                    (I) In general. In any case in which the
                                                6. Construction.                                       1962d–5b(a)(4))                                     non-Federal interest is to receive credit


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                                             52262                         Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Notices

                                             under subparagraph (A) for the cost of                  partnership agreement under                              ‘‘(II) Eligibility.—Construction that is
                                             planning carried out by the non-Federal                 subparagraph (A), to reimburse the                    carried out after the execution of an
                                             interest before execution of a feasibility              difference to the non-Federal interest.               agreement to carry out work described
                                             cost-sharing agreement, the Secretary                     (ii) Priority. If appropriated funds are            in subclause (I) and any design activities
                                             and the non-Federal interest shall enter                insufficient to cover the full cost of all            that are required for that construction,
                                             into an agreement under which the non-                  requested reimbursement agreements                    even if the design activity is carried out
                                             Federal interest shall carry out such                   under clause (i), the Secretary shall                 prior to the execution of the agreement
                                             work and shall do so prior to the non-                  enter into reimbursement agreements in                to carry out work, shall be eligible for
                                             Federal interest initiating that planning.              the order in which requests for such                  credit.
                                                (II) Eligibility. Planning that is carried           agreements are received.’’; and                          ‘‘(ii) PLANNING.—
                                             out by the non-Federal interest after the                 (H) Applicability.                                     ‘‘(I) In General.—In any case in which
                                             execution of an agreement to carry out                    (i) In general. This paragraph shall                the non-Federal interest is to receive
                                             work described in subclause (I) shall be                apply to water resources projects                     credit under subparagraph (A) for the
                                             eligible for credit.                                    authorized after November 16, 1986,                   cost of planning carried out by the non-
                                                (D) Limitations. Credit authorized                   including projects initiated after                    Federal interest before execution of a
                                             under this paragraph for a project—                     November 16, 1986, without specific                   feasibility cost-sharing agreement, the
                                                (i) shall not exceed the non-Federal                 authorization in law, and to water                    Secretary and the non-Federal interest
                                             share of the cost of the project;                       resources projects authorized prior to                shall enter into an agreement under
                                                (ii) shall not alter any other                       the date of enactment of the Water                    which the non-Federal interest shall
                                             requirement that a non-Federal interest                 Resources Development Act of 1986                     carry out such work and shall do so
                                             provide lands, easements, relocations,                  (Public Law 99–662) [enacted June 10,                 prior to the non-Federal interest
                                             rights-of-way, or areas for disposal of                 2014], if correction of design                        initiating that planning.
                                             dredged material for the project;                       deficiencies is necessary.                               ‘‘(II) Eligibility.—Planning that is
                                                (iii) shall not alter any requirement                  (ii) Authorization as addition to other             carried out by the non-Federal interest
                                             that a non-Federal interest pay a portion               authorizations. The authority of the                  after the execution of an agreement to
                                             of the costs of construction of the                     Secretary to provide credit for in-kind               carry out work described in subclause
                                             project under sections 101(a)(2) and                    contributions pursuant to this paragraph              (I) shall be eligible for credit.’’;
                                             103(a)(1)(A) of the Water Resources                     shall be in addition to any other                        (3) in subparagraph (D)(iii) by striking
                                             Development Act of 1986 (33 U.S.C.                      authorization to provide credit for in-               ‘‘sections 101 and 103’’ and inserting
                                             2211(a)(2); 33 U.S.C. 2213(a)(1)(A)) of                 kind contributions and shall not be                   ‘‘sections 101(a)(2) and 103(a)(1)(A) of
                                             the Water Resources Development Act                     construed as a limitation on such other               the Water Resources Development Act
                                             of 1986 (33 U.S.C. 2211; 33 U.S.C.                      authorization. The Secretary shall apply              of 1986 (33 U.S.C. 2211(a)(2); 33 U.S.C.
                                             2213); and                                              the provisions of this paragraph, in lieu             2213(a)(1)(A))’’;
                                                (iv) shall not exceed the actual and                 of provisions under other crediting                      (4) by redesignating subparagraph (E)
                                             reasonable costs of the materials,                      authority, only if so requested by the                as subparagraph (H);
                                             services, or other things provided by the               non-Federal interest.                                    (5) by inserting after subparagraph (D)
                                             non-Federal interest, as determined by                  Section 1018 of the Water Resources                   the following:
                                             the Secretary.                                          Reform and Development Act of 2014                       ‘‘(E) Analysis of Costs and Benefits.—
                                                (E) Analysis of costs and benefits. In                                                                     In the evaluation of the costs and
                                             the evaluation of the costs and benefits                Sec. 1018. CREDIT FOR IN-KIND                         benefits of a project, the Secretary shall
                                             of a project, the Secretary shall not                   CONTRIBUTIONS.                                        not consider construction carried out by
                                             consider construction carried out by a                     (a) In General.—Section 221(a)(4) of               a non-Federal interest under this
                                             non-Federal interest under this                         the Flood Control Act of 1970 (42 U.S.C.              subsection as part of the future without
                                             subsection as part of the future without                1962d–5b(a)(4)) is amended—                           project condition.
                                             project condition.                                         (1) in subparagraph (A), in the matter                ‘‘(F) Transfer of Credit Between
                                                (F) Transfer of credit between                       preceding clause (i), by inserting ‘‘or a             Separable Elements of a Project.—Credit
                                             separable elements of a project. Credit                 project under an environmental                        for in-kind contributions provided by a
                                             for in-kind contributions provided by a                 infrastructure assistance program’’ after             non-Federal interest that are in excess of
                                             non-Federal interest that are in excess of              ‘‘law’’;                                              the non-Federal cost share for an
                                             the non-Federal cost share for an                          (2) in subparagraph (C) by striking ‘‘In           authorized separable element of a
                                             authorized separable element of a                       any case’’ and all that follows through               project may be applied toward the non-
                                             project may be applied toward the non-                  the period at the end and inserting the               Federal cost share for a different
                                             Federal cost share for a different                      following:                                            authorized separable element of the
                                             authorized separable element of the                        ‘‘(i) CONSTRUCTION.—                               same project.
                                             same project.                                              ‘‘(I) In General.—In any case in which                ‘‘(G) APPLICATION OF CREDIT.—
                                                (G) Application of credit.                           the non-Federal interest is to receive                   ‘‘(i) In General.—To the extent that
                                                (i) In general. To the extent that credit            credit under subparagraph (A) for the                 credit for in-kind contributions, as
                                             for in-kind contributions, as limited by                cost of construction carried out by the               limited by subparagraph (D), and credit
                                             subparagraph (D), and credit for                        non-Federal interest before execution of              for required land, easements, rights-of-
                                             required land, easements, rights-of-way,                a partnership agreement and that                      way, dredged material disposal areas,
                                             dredged material disposal areas, and                    construction has not been carried out as              and relocations provided by the non-
                                             relocations provided by the non-Federal                 of November 8, 2007, the Secretary and                Federal interest exceed the non-Federal
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                                             interest exceed the non-Federal share of                the non-Federal interest shall enter into             share of the cost of construction of a
                                             the cost of construction of a project                   an agreement under which the non-                     project other than a navigation project,
                                             other than a navigation project, the                    Federal interest shall carry out such                 the Secretary, subject to the availability
                                             Secretary, subject to the availability of               work and shall do so prior to the non-                of funds, shall enter into a
                                             funds, shall enter into a reimbursement                 Federal interest initiating construction              reimbursement agreement with the non-
                                             agreement with the non-Federal interest,                or issuing a written notice to proceed for            Federal interest, which shall be in
                                             which shall be in addition to a                         the construction.                                     addition to a partnership agreement


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                                                                           Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Notices                                            52263

                                             under subparagraph (A), to reimburse                       (A) the milestone for executing an in-             execution of an In-Kind MOU for design
                                             the difference to the non-Federal                       kind memorandum of understanding for                  or construction.
                                             interest.                                               construction by a non-Federal interest;                 (2) Include at least 30 days in the
                                                ‘‘(ii) Priority.—If appropriated funds                  (B) criteria and procedures for                    project schedule for processing at the
                                             are insufficient to cover the full cost of              evaluating a request to execute an in-                MSC of the Integral Determinations by
                                             all requested reimbursement agreements                  kind memorandum of understanding for                  the MSC Commander. These times are
                                             under clause (i), the Secretary shall                   construction by a non-Federal interest                recommended for scheduling purposes
                                             enter into reimbursement agreements in                  that is earlier than the milestone under              and should be extended if processing
                                             the order in which requests for such                    subparagraph (A) for that execution; and              identifies significant issues requiring
                                             agreements are received.’’; and                            (C) criteria and procedures for                    resolution.
                                                (6) in subparagraph (H) (as                          determining whether work carried out                    c. Procedures for Processing.
                                             redesignated by paragraph (4))—                         by a non-Federal interest is integral to                (1) For a feasibility study, planning
                                                (A) in clause (i) by inserting ‘‘, and to            a project.                                            activities, including data collection,
                                             water resources projects authorized                        (3) Public and Stakeholder                         must be included in the approved
                                             prior to the date of enactment of the                   Participation.— Before issuing any new                Project Management Plan in order for
                                             Water Resources Development Act of                      or revised guidance, regulations, or                  those contributions to be eligible for
                                             1986 (Public Law 99–662), if correction                 guidelines or any subsequent updates to               credit.
                                             of design deficiencies is necessary’’                   those documents, the Secretary shall—                   (2) The District will prepare an
                                             before the period at the end; and                          (A) consult with affected non-Federal              Integral Determination Report (IDR) for
                                                (B) by striking clause (ii) and inserting            interests;                                            design and construction work that
                                             the following:                                             (B) publish the proposed guidelines                includes at a minimum the information
                                                ‘‘(ii) Authorization As Addition to                  developed under this subsection in the                contained in the following paragraphs.
                                             Other Authorizations.—The authority of                  Federal Register; and                                 A suggested format for an IDR can be
                                             the Secretary to provide credit for in-                    (C) provide the public with an                     found at www.Corpsplanning.us. The
                                             kind contributions pursuant to this                     opportunity to comment on the                         IDR shall contain a description of the
                                             paragraph shall be in addition to any                   proposed guidelines.                                  activities required to perform the design
                                             other authorization to provide credit for                  (e) Other Credit.—Nothing in section               or construction, as applicable, of the
                                             in-kind contributions and shall not be                  221(a)(4) of the Flood Control Act of                 Federal project or separable element in
                                             construed as a limitation on such other                 1970 (42 U.S.C. 1962d-5b(a)(4)) (as                   sufficient detail to allow a comparison
                                             authorization. The Secretary shall apply                amended by subsection (a)) affects any                with the description of the proposed in-
                                             the provisions of this paragraph, in lieu               eligibility for credit under section 104 of           kind contributions; a detailed
                                             of provisions under other crediting                     the Water Resources Development of                    description of the work items proposed
                                             authority, only if so requested by the                  1986 (33 U.S.C. 2214) that was approved               to be provided or performed as in-kind
                                             non-Federal interest.’’.                                by the Secretary prior to the date of                 contributions; a discussion of how each
                                                (b) Applicability.—Section 2003(e) of                enactment of this Act.                                work item proposed to be provided or
                                             the Water Resources Development Act                                                                           performed as an in-kind contribution is
                                                                                                     APPENDIX B                                            integral to the project; an estimate of the
                                             of 2007 (42 U.S.C. 1962d–5b note) is
                                             amended—                                                Criteria and Procedures for In-Kind                   costs of each work item proposed to be
                                                (1) by inserting ‘‘, or construction of                 Contribution Integral Determinations               provided or performed as an in-kind
                                             design deficiency corrections on the                       C–1. Determining if In-Kind                        contribution; the estimated amount of
                                             project,’’ after ‘‘construction on the                  Contributions Are Integral to the Study/              credit to be afforded for each work item
                                             project’’; and                                          Project. Establishing and allowing credit             proposed to be provided or performed
                                                (2) by inserting ‘‘, or under which                  is a two step process whereby: 1)                     as an in-kind contribution; and a
                                             construction of the project has not been                eligibility is determined by performing               District Commander recommendation
                                             completed and the work to be                            the integral determination, and 2) actual             identifying which of the proposed in-
                                             performed by the non-Federal interests                  affording of credit is accomplished by                kind contributions should be considered
                                             has not been carried out and is                         audit of the non-Federal work by the                  integral to the project. If the in-kind
                                             creditable only toward any remaining                    District Engineer under the terms of the              contributions were provided or
                                             non-Federal cost share,’’ after ‘‘has not               FCSA, DA, or PPA, as appropriate. The                 performed prior to execution of the
                                             been initiated’’.                                       Government must determine that the in-                applicable cost sharing agreement, then
                                                (c) Effective Date.—The amendments                   kind contributions are integral to the                also include in the IDR the results of the
                                             made by subsections (a) and (b) take                    study or project for those contributions              review or inspection, as applicable, and
                                             effect on November 8, 2007.                             to be considered eligible for credit.                 certification by the District Commander
                                                (d) Guidelines.—                                        a. Approval Level of Integral                      on whether the work was accomplished
                                                (1) In General.— Not later than 1 year               Determinations. Under the terms of                    in a satisfactory manner and in
                                             after the date of enactment of this Act,                Paragraph 4.e.. of this regulation,                   accordance with applicable Federal
                                             the Secretary shall update any guidance                 approval of integral determinations is                laws, regulations, and policies; and
                                             or regulations for carrying out section                 delegated to the MSC Commander. This                  documentation of satisfactory
                                             221(a)(4) of the Flood Control Act of                   authority may not be further delegated.               environmental compliance for the
                                             1970 (42 U.S.C. 1962d–5b(a)(4)) (as                        b. Timing of Integral Determinations.              construction portion of the in-kind
                                             amended by subsection (a)) that are in                     (1) The integral determination must                contributions.
                                             existence on the date of enactment of                   be completed immediately prior to                       (3) The district will submit the IDR to
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                                             this Act or issue new guidelines, as                    review and approval of a DA or PPA, or                the MSC District Support Team for
                                             determined to be appropriate by the                     amendment as applicable, that provides                action. The MSC District Support Team
                                             Secretary.                                              for the affording of credit. The integral             will perform the MSC review of the IDR.
                                                (2) Inclusions.— Any guidance,                       determination for planning efforts is                 The MSC review team also will include
                                             regulations, or guidelines updated or                   accomplished as part of the                           members from the MSC Office of
                                             issued under paragraph (1) shall                        development of the PMP. An integral                   Counsel and from the MSC Planning
                                             include, at a minimum—                                  determination is not required prior to                Community of Practice (CoP), MSC


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                                             52264                         Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Notices

                                             Engineering and Construction CoP, MSC                   the District Commander prior to                       DEPARTMENT OF DEFENSE
                                             Real Estate CoP, and other CoPs, as                     initiation of the construction work.
                                             needed. In addition, if the proposed in-                   e. For materials provided for use in               Department of the Army, Corps of
                                             kind contributions consist of design or                 construction work managed by the                      Engineers
                                             construction of dams, levees, or bridges,               Government, the materials meet the
                                             the MSC review team must include the                    minimum Government requirements for                   Notice of Availability (NOA) of the Draft
                                             MSC Dam, Levee, or Bridge Safety                        materials and any substitute materials                Environmental Impact Statement
                                             Officer. After satisfactory resolution of               have been determined to be a functional               (DEIS) and the Announcement of a
                                             all comments on the IDR and a                           equivalent in accordance with policies                Public Hearing for the Installation of a
                                             determination that the IDR complies                     governing contractor substitution of                  Terminal Groin Structure at the
                                             with all applicable law and policy, the                 materials.                                            Eastern End of Holden Beach,
                                             MSC District Support Team shall                            C–3. The following will not be                     Extending into the Atlantic Ocean,
                                             prepare an Integral Determination memo                  accepted as integral:                                 West of Lockwood Folly Inlet
                                             for approval and signature by the MSC                      a. The proposed in-kind contributions              (Brunswick County, NC)
                                             Commander. If the IDR does not or                       are not part of the Federal project.
                                                                                                        b. The proposed in-kind contributions              AGENCY: Department of the Army, U.S.
                                             cannot be modified to comply with law                                                                         Army Corps of Engineers, DoD.
                                             and policy, then the MSC should                         consist of performance of activities that
                                                                                                     are inherently Governmental                           ACTION: Notice of availability.
                                             contact the HQUSACE RIT to facilitate
                                                                                                     responsibilities (e.g., management of
                                             the resolution of the concerns.                                                                               SUMMARY:   The U.S. Army Corps of
                                                                                                     Government contracts; performance of
                                                (4) The Integral Determination                                                                             Engineers (USACE), Wilmington
                                                                                                     District Quality Review, Agency
                                             approval memo will state whether the                                                                          District, Wilmington Regulatory Field
                                                                                                     Technical Review, Independent
                                             work identified in the IDR, or a portion                                                                      Office has received a request for
                                                                                                     External Peer Review, or Policy
                                             thereof, has been determined to be                      Compliance Review; determining if                     Department of the Army authorization,
                                             integral to the project. In addition, the               Value Engineering evaluations are                     pursuant to Section 404 of the Clean
                                             memo should state that determination of                 acceptable; determining the LERRD                     Water Act and Section 10 of the Rivers
                                             the actual value of the in-kind                         required for the project or separable                 and Harbor Act, from the Town of
                                             contributions and affording credit for                  element of the project; determining the               Holden Beach to install a terminal groin
                                             such amount will be accomplished by                     value of LERRD for crediting purposes;                structure on the east end of Holden
                                             the Government in accordance with the                   or making determinations as to                        Beach, extending into the Atlantic
                                             limitations, conditions, and terms of the               compliance with applicable                            Ocean, just west of Lockwood Folly
                                             applicable cost sharing agreement.                      environmental laws and regulations).                  Inlet.
                                                C–2. The following may be accepted                      c. The proposed in-kind contributions              DATES:  Written comments on the DEIS
                                             as integral:                                            are features or obligations that are a 100            will be received until 5 p.m., October
                                                The proposed in-kind contributions                   percent non-Federal sponsor                           13, 2015.
                                             are a part of the Federal project.                      responsibility (e.g., purposes of land
                                                b. The proposed in-kind contributions                                                                      ADDRESSES: Copies of comments and
                                                                                                     reclamation, local drainage, to protect
                                             consist of work that the Government                                                                           questions regarding the DEIS may be
                                                                                                     against land or bank erosion, and/or the
                                             would have otherwise provided or                                                                              submitted to: U.S. Army Corps of
                                                                                                     removal of hazardous, toxic, or
                                             performed for the project, except for                                                                         Engineers (Corps), Wilmington District,
                                                                                                     radioactive wastes; local service
                                             performance of activities that are                                                                            Regulatory Division, c/o Mrs. Emily
                                                                                                     facilities; betterments; acquisition and
                                             inherently Governmental                                                                                       Hughes. ATTN: File Number SAW–
                                                                                                     performance of LERRD, except for the
                                             responsibilities (see paragraph C–3                                                                           2011–01914, 69 Darlington Avenue,
                                                                                                     provision of dredged or excavated
                                             below). Examples of activities that are                                                                       Wilmington, NC 28403.
                                                                                                     material disposal facilities for
                                             acceptable in-kind contributions:                       commercial navigation projects; and                   FOR FURTHER INFORMATION CONTACT:
                                             performance of design of all or a portion               performance of OMRR&R);                               Questions about the proposed action
                                             of the Federal project, including data                     d. The proposed in-kind contributions              and DEIS can be directed to Mrs. Emily
                                             collection related to design work;                      have or will create a hazard to human                 Hughes, Wilmington Regulatory Field
                                             demolition of buildings on lands                        life or property.                                     Office, telephone: (910) 251–4635,
                                             required for the project; performance of                   e. The proposed in-kind contributions              facsimile (910) 251–4025, or email at
                                             design or construction related studies                  have been determined to be                            emily.b.hughes@usace.army.mil.
                                             for historic preservation activities;                   environmentally unacceptable.                         SUPPLEMENTARY INFORMATION:
                                             performance of cost shared monitoring                      f. For proposed in-kind contributions                 1. Project Description. The Town of
                                             and adaptive management; and                            performed prior to execution of the                   Holden Beach is seeking Federal and
                                             construction of a portion of the project.               applicable cost sharing agreement, after              State authorization for construction of a
                                                c. For proposed in-kind contributions                review or inspection, as applicable, the              terminal groin, and associated beach
                                             performed prior to execution of the                     Government cannot certify the proposed                fillet with required long-term
                                             applicable cost sharing agreement, the                  in-kind contributions were                            maintenance, to be located at the eastern
                                             in-kind contributions have been                         accomplished in a satisfactory manner                 end of Holden Beach. The proposed
                                             reviewed or inspected, as applicable,                   and in accordance with applicable                     terminal groin and beach fillet is the
                                             and certified by the Government that the                Federal laws, regulations, and policies.              Town’s Applicant Preferred alternative
                                             work was accomplished in a satisfactory                    g. For proposed in-kind contributions              (Alternative 6—Intermediate Terminal
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                                             manner and in accordance with                           performed prior to execution of the                   Groin and Beach Nourishment) of six
                                             applicable Federal laws, regulations,                   applicable cost sharing agreement, the                alternatives considered in this
                                             and policies.                                           non-Federal sponsor has not performed                 document. Under the Applicant’s
                                                d. For any proposed in-kind                          the necessary operation, maintenance,                 preferred alternative, the main stem of
                                             contributions proposed to be performed                  repair, rehabilitation, or replacement.               the terminal groin would include a 700-
                                             after execution of the PPA, the plans                   [FR Doc. 2015–21355 Filed 8–27–15; 8:45 am]           foot long segment extending seaward
                                             and specifications will be approved by                  BILLING CODE 3720–58–P                                from the toe of the primary dune and a


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Document Created: 2015-12-15 11:04:13
Document Modified: 2015-12-15 11:04:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesWritten comments must be submitted on or before September 28, 2015.
ContactJanice E. Rasgus, Planning and Policy Division, Washington, DC at 202-761-7674.
FR Citation80 FR 52258 

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