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<br /> <br />. <br /> <br />. <br /> <br />o <br />('-,.:) <br />-) <br />'" <br />N <br />C.1t <br /> <br />NON FEDERAL COST SHARING <br /> <br />The President of the United States and the office of Management and Budget <br />have directed the Department of the Army's Corps of Engineers to obtain <br />cost-sharing agreements with non-Federal sponsors for (1) fifty percent of <br />the total cost of the feasibility phase of studies conducted by the Corps and <br />for (2) up-front financing of the construction cost in the following amounts: <br />100 percent of the municipal and industrial water supply cost, 100 percent of <br />the hydropower cost, 75 percent of navigation cost, 35 percent of the flood <br />control cost, Unless such agreements are obtained between the Corps and <br />non-Federal sponsors on a new project, the President and Office of Management <br />and Budget have refused to include the project as a new start in the budget; <br />although these cost-sharing requirements have never been approved by Congress <br />and differ greatly from current cost-sharing requirements enacted by previous <br />legislation. <br /> <br />The ABDA believes that the application of these unauthorized cost-sharing <br />requirements by the Administration is improper. The Association believes <br />that such up-front cost-sharing requirements as those being implemented by <br />the Administration are inappropriate and contrary to the national interest in <br />the development of our nation's most vital national resource, our water. We <br />are convinced that the long term impact of such requirements will be <br />devastating to water resources development in our country and will accelerate <br />a national water crisis. <br /> <br />Therefore, the ABDA requests that Congress (1) recognize the existing danger <br />of a national water crisis and take all actions necessary to avoid such a <br />crisis; (2) establish a national water policy which recognizes the importance <br />of water in the development of all aspects of our economy; (3) develop a <br />cost-sharing program which will encourage the development of the water <br />resources in all areas of our country, not just in those parts of the nation <br />which can afford up-front financing; and (4) continue to resist pressure from <br />the Administration to give a higher priority to projects whose sponsors have <br />agreed to the Administration's cost-sharing requirements, and continue to <br />authorize and appropriate funds based only on policies which have been <br />enacted by Congress and signed into law by the President. <br /> <br />3 <br />