Using Benefit-Cost Review in Mitigation Planning
Mitigation Planning How-To Guide #5 (FEMA 386-5) helps local jurisdictions apply the concepts of Benefit-Cost Review to prioritize mitigation actions to meet FEMA requirements. The purpose of a mitigation plan is to reduce the community’s vulnerability to hazards. After assessing a community may consider many options. Due to monetary and other limitations, it is often impossible to implement all actions. The Planning team should select the most cost-effective actions to implement first, not only to use resources efficiently, but to make a realistic start toward mitigation. FEMA regulations support cost-effectiveness by requiring mitigation plans to have a plan including prioritization with special emphasis on maximization of benefits over costs. NOTE: The Benefit-Cost Review for mitigation planning differs from the benefit-cost analysis (BCA) used in grant applications. Refer to the mitigation grant program guidance for specific instructions on how to complete BCA requirements for grant applications.