Dodge County, NE, Elkhorn River Bank Reconstruction and Stabilization
|Applicant||Nebraska Emergency Management Agency|
o Dodge County, Nebraska, submitted an application through Nebraska Emergency Management Agency for HMGP funding of a river bank reconstruction and stabilization project on the west side of the Elkhorn River. The project was not approved, and a 1st level appeal was denied by Region VII.
• Reason for Denial
o Region VII found that the proposed project did not meet the cost-effectiveness requirement of the HMGP.
o 44 CFR 206.434 HMGP Eligibility; 44 CFR 206.440 Appeals
o Dodge County submitted a 2nd appeal to overturn the Region VII 1st appeal denial. The applicant had provided a benefit-cost analysis that did not address essential elements of benefit-cost analysis, such as flooding recurrence probabilities and present value calculations. An upper bound benefit cost analysis was done by FEMA, generating a benefit-cost ratio of 0.57, indicating that the project was not cost effective.
• FEMA Findings
o The 2nd appeal decision upheld the 1st appeal denial.
o The rationale for the 2nd appeal decision was that the grant application did not meet the cost-effectiveness eligibility requirement of the HMGP.
o Reference(s): 44 CFR 206.434 HMGP Eligibility; 44 CFR 206.440 Appeals
Governor's Authorized Representative
State of Nebraska
State Civil Defense Agency
1300 Military Road
Lincoln, NE 68508-1090
Dear Mr. Whitney:
Unfortunately, I must deny the grant because it does not meet the cost-effectiveness eligibility requirement of the HMGP, found at 44 CFR 206.434(b)(5). Under this requirement, a project's future benefits must exceed its costs, as computed on a net present value basis. FEMA has assessed the cost-effectiveness of this proposed project, and found that it does not meet this criterion.
Nonetheless, funding under the HMGP still remains available. The project can proceed using Nebraska's 5% initiative funding at your discretion.
In closing, should you choose not to use the 5% initiative, FEMA Region VII is available to assist you and Dodge County in identifying suitable alternatives towards reducing flood losses to its inhabitants. We look forward to working with you in this matter.
effectiveness of the project would be diminished, as would the benefit-cost ratio.