33 U.S. Code § 2280 - Maximum cost of projects

(a) In general

In order to insure against cost overruns, each total cost set forth with respect to a project for water resources development and conservation and related purposes authorized to be carried out by the Secretary in this Act or in a law enacted after the date of the enactment of this Act, including the Water Resources Development Act of 1988, or in an amendment made by this Act or any later law with respect to such a project shall be the maximum cost of that project, except that such maximum amount—

(1) may be increased by the Secretary for modifications which do not materially alter the scope or functions of the project as authorized, but not by more than 20 percent of the total cost stated for the project in this Act, in any later law, or in an amendment made by this Act or any later law; and

(2) shall be automatically increased for—

(A) changes in construction costs applied to unconstructed features (including real property acquisitions, preconstruction studies, planning, engineering, and design) from the date of enactment of this Act or any later law (unless otherwise specified) as indicated by engineering and other appropriate cost indexes; and

(B) additional studies, modifications, and actions (including mitigation and other environmental actions) authorized by this Act or any later law or required by changes in Federal law.

(b) Contributions by non-Federal interests

Notwithstanding subsection (a), in accordance with section 701h of this title, the Secretary may accept funds from a non-Federal interest for any authorized water resources development project that has exceeded its maximum cost under subsection (a), and use such funds to carry out such project, if the use of such funds does not increase the Federal share of the cost of such project.

(Pub. L. 99–662, title IX, § 902, Nov. 17, 1986, 100 Stat. 4183; Pub. L. 100–676, § 3(b), Nov. 17, 1988, 102 Stat. 4014; Pub. L. 113–121, title I, § 1023, June 10, 2014, 128 Stat. 1228.)

Editorial Notes

References in Text

This Act, referred to in subsec. (a), is Pub. L. 99–662, Nov. 17, 1986, 100 Stat. 4082, known as the Water Resources Development Act of 1986. For complete classification of this Act to the Code, see Short Title note set out under section 2201 of this title and Tables.

The date of enactment of this Act, referred to in subsec. (a), is the date of enactment of Pub. L. 99–662, which was approved Nov. 17, 1986.

The Water Resources Development Act of 1988, referred to in subsec. (a), is Pub. L. 100–676, Nov. 17, 1988, 102 Stat. 4012. For complete classification of this Act to the Code, see Short Title of 1988 Amendment note set out under section 2201 of this title and Tables.

Amendments

2014—Pub. L. 113–121 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

1988—Pub. L. 100–676, § 3(b)(1), substituted “with respect to a project for water resources development and conservation and related purposes authorized to be carried out by the Secretary in this Act or in a law enacted after the date of the enactment of this Act, including the Water Resources Development Act of 1988, or in an amendment made by this Act or any later law with respect to such a project” for “in this Act, or an amendment made by this Act, for a project”.

Par. (1). Pub. L. 100–676, § 3(b)(2), inserted “, in any later law,” after “in this Act”, and “or any later law” after “by this Act”.

Par. (2). Pub. L. 100–676, § 3(b)(3), (4), inserted “or any later law” after “of this Act” in subpars. (A) and (B).

Statutory Notes and Related Subsidiaries

Continuation of Construction

Pub. L. 117–263, div. H, title LXXXI, § 8155, Dec. 23, 2022, 136 Stat. 3736, provided that:

“(a) Continuation of Construction.—

“(1) In general.—

Upon the transmittal of an initial notification pursuant to subsection (b)(1) with respect to a water resources development project, the Secretary [of the Army] shall not, solely on the basis of the maximum cost requirements under section 902 of the Water Resources Development Act of 1986 (33 U.S.C. 2280)—

“(A) defer the initiation or continuation of construction of the water resources development project during the covered period; or

“(B) terminate during or after the covered period, a contract for design or construction of the water resources development project that was entered into prior to or during the covered period.

“(2) Resumption of construction.—

The Secretary shall, upon the transmittal of an initial notification pursuant to subsection (b)(1) with respect to a water resources development project for which construction was deferred, during the period beginning on October 1, 2021, and ending on the date of enactment of this Act [Dec. 23, 2022], because the cost of such project exceeded the maximum cost permitted under section 902 of the Water Resources Development Act of 1986 (33 U.S.C. 2280), resume construction of the project.

“(b) Notification.—

“(1) Initial notification.—

Not later than 30 days after the Chief of Engineers makes a determination that a water resources development project exceeds, or is expected to exceed, the maximum cost of the project permitted under section 902 of the Water Resources Development Act of 1986 (33 U.S.C. 2280), the Chief of Engineers shall transmit a written notification concurrently to the Secretary and to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives for each such determination.

“(2) Supplemental notification.—

Not later than 60 days after the Chief of Engineers transmits an initial notification required under paragraph (1), the Chief shall transmit concurrently to the Secretary and to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a supplemental notification that includes, based on information available to the Corps of Engineers on the date of the supplemental notification—

“(A) an estimate of the expected increase in the cost of the project that is in excess of the authorized maximum cost for the project;

“(B) a description of the reason for the increased cost of the project; and

“(C) the expected timeline for submission of a post-authorization change report for the project in accordance with section 1132 of the Water Resources Development Act of 2016 (33 U.S.C. 2282e).

“(3) Transmittal.—

The notifications described in paragraphs (1) and (2) may not be delayed as a result of consideration being given to changes in policy or priority with respect to project consideration.

“(c) Deferral of Construction.—

After expiration of the covered period, the Secretary shall not enter into any new contract, or exercise any option in a contract, for construction of a water resources development project if the project exceeds the maximum cost of the project permitted under section 902 of the Water Resources Development Act of 1986 (33 U.S.C. 2280), until the date on which Congress authorizes an increase in the cost of the project.

“(d) Statutory Construction.—

Nothing in this section waives the obligation of the Secretary to submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a post-authorization change report recommending an increase in the authorized cost of a project if the project otherwise would exceed the maximum cost of the project permitted under section 902 of the Water Resources Development Act of 1986 (33 U.S.C. 2280).

“(e) Definition of Covered Period.—

In this section, the term ‘covered period’ means the period beginning on the date of enactment of this Act [Dec. 23, 2022] and ending on December 31, 2024.”