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Denial of Funding: Overview

If the proposed Betterment does not clearly meet the economic justification requirements of the ER Program to the satisfaction of the Federal Highway Administration, and Betterment funding is denied, the following options are available:

  • The facility owner may supplement the available ER funds (to Repair In-Kind) with non-ER funds. This option may be economically justified to the road owner when non-ER factors such as road maintenance, user costs or economic impacts are considered.
  • Recognizing that this training presents a simplified approach to meeting the economic justification requirement of the ER Program, it may be beneficial to use a probabilistic-based risk analysis such as a Monte Carlo Simulation for high-cost critical infrastructure. For example, an analysis that considers hydrodynamic factors such as tides, storm surge, wind, waves, river discharge, coastal geometry, bathymetric effects, and possibly future climate scenarios can be developed. Each of the factors are assigned an appropriate probability distribution that is randomly sampled to create a discrete economic result and then the process is repeated over and over again.
  • Sometimes the most economical alternative may be to apply for ER funding periodically as needed after future events.

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