PRINCIPLES & GUIDELINES 1/5/00 PRINCIPLES & GUIDELINES 3 February 1983 Fundamental planning framework Resulted from the need to have a common set of rules for all agencies involved in water resources planning and Congress. General overview of the course. Concepts and principles presented will be discussed in detail during the week. 1/5/00

OBJECTIVES Understand role of P&G in Corps planning process. 1/5/00 OBJECTIVES Understand role of P&G in Corps planning process. Define NED Plan Identify steps in planning process. 1/5/00

EVOLUTION OF NATIONAL PLANNING POLICY 1/5/00 EVOLUTION OF NATIONAL PLANNING POLICY 1936-Flood Control Act 1950-Green Book (Revised 1958) 1962-Senate Document 97 1965-Water Resources Planning Act 1969-National Environmental Policy Act (NEPA) Chapter 3 Planning manual - brief history of water resources planning. Page 43 - Suggested readings Process to define planning process - last 200 years Guidance at a time reflects political and social values. Significant legislation dates back to the 1800’s. Start in 1936 for time’s sake. 1936 FCA - Feds do flood control. B>C. Two step process: preliminary examination and survey report. 1950 GB - Proposed practices for economic analysis of river basin projects. B/C analysis. Maximize net benefits. PP’s for formulation. Benefit and cost measurements. Multi-purpose project. Cost allocation SD 97 - Inter-department agreement. 3 objectives: Development (NED & RED), Preservation (1st time mentioned as objective) and well being of people. 65 WRPA - WRC to review planning procedures. Orange Books (65 & 68)- 4 objectives. All equal. Never adopted. 69 NEPA - Separate legislation that affects planning process. 1/5/00

EVOLUTION OF NATIONAL PLANNING POLICY 1/5/00 EVOLUTION OF NATIONAL PLANNING POLICY 1970 - Flood Control Act 1973 - Principles and Standards 1983 - PRINCIPLES AND GUIDELINES 1986 - Water Resources Development Act 1970 FCA - All four objectives are equally important 1971 - WRC “Proposed Principles and Standards” to replace Orange Books. Drop SWB. RED only after previous approval. Required plans: NED and EQ 2-years of debate ensued, in 73 WRC publishes “Principles and Standads” Two objectives: NED and EQ. Both equally important. Four accounts. No EQ plan required. Six steps planning process. 1978 - Water Policy Initiatives. Procedures for NED benefits (1st standard procedures). Revised P&S. Approved in 1980. 2 objectives, 6 step planning process, four criteria for formulation and evaluation. Non-structural plan required. Water conservation. Two plans: NED & EQ Repealed in 1982 1983 - Principles and Guidelines. One Fed objective:NED. 1986 WRDA - First in a decade. New cost sharing. IWUB. F&W enhancement. Section 1135. 1/5/00

PRINCIPLES 1. Purpose and Objective 2. FEDERAL OBJECTIVE 1/5/00 PRINCIPLES 1. Purpose and Objective 2. FEDERAL OBJECTIVE 3. State and local concerns 4. International Concerns 5. ALTERNATIVE PLANS 6. PLAN SELECTION 7. Accounts Planning Manual, back front cover. Purpose of P&G is to ensure consistent planning, formulation and evaluation by all Federal agencies. Apply to USACE, BuRec, TVA, And NRCS Apply to all decision documents. 1/5/00

PRINCIPLES 8. Discount Rate 9. Period of Analysis 1/5/00 PRINCIPLES 8. Discount Rate 9. Period of Analysis 10. Risk and Uncertainty 11. Cost Allocation 12. Planning Guidance 13. Effective Date 1/5/00

PRINCIPLES: FEDERAL OBJECTIVE 1/5/00 PRINCIPLES: FEDERAL OBJECTIVE Contribute to National Economic Development consistent with protecting the Nation’s environment pursuant to national environmental statutes, applicable executive orders and other Federal planning requirements. Formulate plans to alleviate problems and take advantage of opportunities while contributing to this objective. Different to study objectives. Applies to all type of studies, exception: Ecosystem Restoration. NED Benefits = increases in the net value of the Nation’s output of goods and services Single Federal objective Economic development is primary factor in determining Federal interest. 1/5/00

PRINCIPLES: ALTERNATIVE PLANS 1/5/00 PRINCIPLES: ALTERNATIVE PLANS Consider all reasonable alternatives Four Criteria: Completeness Effectiveness Efficiency Acceptability Mitigate for adverse impacts NED Plan - required Plans of others - Consider and evaluate and sometimes recommend. Watershed planning. Include all measures and plans, Corps and non-Corps. Formulate plans considering four criteria Mitigation - integral component of plans Consistent with protecting the Nation’s environment If not included and required, plan is incomplete and unacceptable 1/5/00

PRINCIPLES: PLAN SELECTION 1/5/00 PRINCIPLES: PLAN SELECTION 1/5/00

PRINCIPLES: PLAN SELECTION 1/5/00 PRINCIPLES: PLAN SELECTION NED PLAN Reasonably maximizes net benefits Required to recommend Is not the plan with highest BCR Is not the plan with most benefits Recommend NED Plan unless…. 1/5/00

PRINCIPLES: PLAN SELECTION 1/5/00 PRINCIPLES: PLAN SELECTION EXCEPTIONS TO NED: Locally Preferred Plan National Ecosystem Restoration Plan (NER) Locally preferred plan - Usually driven by budgetary constraints. Smaller plan - No ASA(CW) prior approval. Larger plan - Requires ASA(CW) approval prior to recommending. Cost sharing - sponsor pays all costs above Fed contribution for NED Plan. Ecosystem Restoration Not in P&G Benefits not in $$$ Not possible to identify NED Plan Most cost-effective plan for given level of output or rationale for other. 1/5/00

GUIDELINES - STANDARDS 1/5/00 GUIDELINES - STANDARDS 1. Introduction 2. The Federal Objective 3. Summary of Planning Process 4. General Planning Considerations 5. Inventory and Forecast of Without Plan Conditions 6. Alternative Plans Principles are summary of requirements. Discussed in more detail in the Guidelines Chapter 1 of Guidelines is Standards Chapter 2 - NED Benefit Evaluation Procedures Chapter 3 - EQ Evaluation Procedures 1/5/00

GUIDELINES - STANDARDS 1/5/00 GUIDELINES - STANDARDS 7. Accounts 8. Displays 9. Cost Allocation 10. Plan Selection 11. Risk and Uncertainty Principles were like summary of requirements. Discussed in more detail in the Guidelines Chapter 1 of Guidelines is Standards Chapter 2 - NED Benefit Evaluation Procedures Chapter 3 - EQ Evaluation Procedures Will discuss now chapter 1, chapters 2 and 3 under next session - Planning Guidance 1/5/00

GUIDELINES - STANDARDS The Federal Objective 1/5/00 GUIDELINES - STANDARDS The Federal Objective NED Plan NED Benefits = Increases in value of national output of goods and services expressed in monetary units. Federal objective stressed. Consider in plan formulation and evaluation. 1/5/00

GUIDELINES - STANDARDS Summary of Planning Process 1/5/00 GUIDELINES - STANDARDS Summary of Planning Process Six steps for Planning: 1. Specify problems and opportunities 2. Inventory, forecast and analysis 3. Formulate alternative plans 4. Evaluate effects of alternative plans 5. Compare alternative plans 6. Select recommended plan 1/5/00

GUIDELINES - STANDARDS General Planning Considerations 1/5/00 GUIDELINES - STANDARDS General Planning Considerations Federal, State, Local, International General Public Review and Consultation (NEPA) Interdisciplinary Planning Forecasting - Future without plan Respond to concerns of others. Encourage participation. Avoid international issues. Priority to sponsors and stakeholders. Principles 3 and 4. Provide opportunities for participation of general public throughout planning process. CEQ NEPA and planning process are complementary Use inter-disciplinary team. Future without condition- expected to prevail if no action is taken. Most important forecast. 1/5/00

GUIDELINES - STANDARDS General Planning Considerations 1/5/00 GUIDELINES - STANDARDS General Planning Considerations Price levels Discount Rate Period of Analysis Risk and Uncertainty Price levels - prevailing during the period immediately preceding the period of planning is to be used for entire period of analysis. Discount rate - Use rate established annually. Period of analysis - same for all plans. Lesser of period for benefits or 100 years. Risk and uncertainty - Identify areas of sensitivity and describe them for decisions based on knowledge of degree of reliability of info. Methods to deal with R&U: collect more data; use refined anal techniques; increase safety factors; select measures with better performance characteristics; reduce irreversible comm of resources; perform sensitivity anal of cost and benefits. 1/5/00

GUIDELINES - STANDARDS Inventory and Forecast of W/O Plan Conditions 1/5/00 GUIDELINES - STANDARDS Inventory and Forecast of W/O Plan Conditions Define existing conditions Forecast future without project problems and opportunities. 1/5/00

GUIDELINES - STANDARDS Alternative Plans 1/5/00 GUIDELINES - STANDARDS Alternative Plans Structural and non-structural measures OK to consider plans of others Mitigation for adverse effects Staged construction Four criteria Plans = measures, strategies or programs Different from each other. Nonstructural measures = modifications in public policy, management practices, regulatory policy and pricing policy. Consider alone or combined with structural. Appropriate mitigation = consult with Fed and State F&W agencies (F&W Act of 1958). Also follow other laws, regulations and Exec Orders. Staged construction = mostly done through incremental construction, not properly analyzed. Four criteria for formulation = completeness, effectiveness, efficiency, acceptability. 1/5/00

GUIDELINES - STANDARDS Accounts 1/5/00 GUIDELINES - STANDARDS Accounts Four Accounts: NED - National Economic Development EQ - Environmental Quality RED - Regional Economic Development SWB - Social Well Being To make evaluation and display easier. Summarize all impacts on the human environment. Table 34, Page 161 of Planning Manual = Example display. Don’t have to include everything, except for NED. Only significant impacts. Definitions: NED = beneficial and adverse effects on the economy. EQ = effects of plans on significant EQ resources and attributes of the NEPA human environment, essential to a reasoned choice among alternatives. RED = changes in distribution of regional econ activity, mainly income and employment. OSE = effects not reflected in others, urban and comm impacts, life, health and safety; displacement; etc. 1/5/00

GUIDELINES - STANDARDS Cost Allocation 1/5/00 GUIDELINES - STANDARDS Cost Allocation Multi-purpose projects Allocate costs among purposes Use separable costs/remaining benefits method Cost allocation - distribute financial costs among purposes in a multi-purpose project. Separable cost/remaining benefits method approved by all agencies. Use of facilities method sometimes. Complex procedures. Use team approach. Economist key. 1/5/00

GUIDELINES - STANDARDS Plan Selection 1/5/00 GUIDELINES - STANDARDS Plan Selection NED PLAN Reasonably maximizes net benefits Required to recommend Is not plan with highest BCR Is not plan with most benefits Exceptions: Locally Preferred Plan Ecosystem Restoration 1/5/00

GUIDELINES - STANDARDS Risk and Uncertainty 1/5/00 GUIDELINES - STANDARDS Risk and Uncertainty Uncertainty and variability Sources Characterize degrees of R&U Quantify as possible Do sensitivity analysis Uncertainty in all forecasts. Defines risk and uncertainty. Sources: measurement errors and variability of complex natural, social and economic parameters. Degrees of uncertainty - vary among aspects of project, over time and at different stages of the analysis. Planner’s role = characterize,,,,Quantify…. Sensitivity analysis. 1/5/00

1/5/00 SUMMARY P&G - basic framework for Corps water resources planning process. NED Plan - plan that reasonably maximizes net NED benefits. Planning process = six steps. 1/5/00