News Release 02-08 US Army Corps Of Engineers June 17, 2002 Immediate
Dr. Fred-Otto Egeler Telephone: (213) 452-3921 Email:
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Los Angeles District will re-validate the economic benefits of approved projects before construction is allowed to begin.
LOS ANGELES --The Corps of Engineers has initiated a program to ensure that project already approved for construction are still expected to provide the economic benefits to the nation that were envisioned at the time that Congress authorized those projects.
The Corps is taking this comprehensive initiative to ensure that projects are a sound investment for the nation and are proposed in an environmentally sustainable way to keep up with pace of change. As part of its project development process, the Corps of Engineers quantifies the dollar value of the benefits that a project provides to the nation. These benefits are then compared to the cost of accomplishing the project. This “benefit/cost” (B/C) ratio is provided to Congress to be included in their decision-making process to determine if the project will be authorized for construction. A B/C-ratio of greater than 1.0 means that the benefit that the project provides to the nation is greater than the cost to create that project, and would be considered a sound investment for the nation. There are occasions when an extended period of time elapses between when Congress authorizes a project and when construction begins. This may occur for a variety of reasons ranging from budget constraints to new environmental concerns. The Corps of Engineers is concerned that on some of these delayed projects, changes in the project area may have changed the B/C-ratio of the project. At the direction of its headquarters in Washington, DC, the Los Angeles District of the U. S. Army Corps of Engineers has been asked to review its congressionally authorized projects to determine if the economic analysis used to justify them are still valid. The district was directed to stop work on any civil works projects that were not yet under construction and to review any project with an economic analysis that was prepared before 1999 or whose B/C-ratio is less than 1.5.
The district is also reviewing newer projects where questions about economics, engineering or the environment may have resulted in significant changes since 1999 in project justification or support by the local governmental authority that serves as the proponent for the project. The Los Angeles District has initially determined that 11 projects within its 226,000 square mile area of responsibility in the southwest fall within the requirements. Nine are in California and three in Arizona. As we confirm that these projects will be reviewed, we will make the list available on our Internet site. The Corps’ projects protect lives and property, improve quality of life, ensure and enhance the nation’s environment, ensure economic prosperity, promote safe navigation, preserve the nation’s wetlands and national defense. |