### Economic Analysis for 2012 Nationwide Permits

SUMMARY:

NWPs cost less than standard permits, and the 2012 NWPs will result in more activities qualifying for NWP authorization. There are only four 2012 NWPs that are considered to be substantial changes to the NWP Program: NW Ps 21, 48, 51, and 52. Only NWP 21 is expected to result in increased costs to permit applicants and the Corps. The remaining NWPs are expected to result in little or no change from the 2007 NWPs. NWPs 48, 51, and 52 will result in decreased costs to permit applicants and the Corp s because they provide NWP authorization for a number of activities that prev iously required standard permits . Therefore, even with the increased costs predicted because of the change s to NWP 21, there are no “significant economic
costs” associated with the 2012 NWPs.

ANALYSIS:

 Nationwide permits (NWPs) help relieve regu latory burdens on applicants who need to obtain Department of the Army (DA) permits; an expedited form of authorization, as long as the project proponent meets all terms and conditions of the NWPs.

 In FY 2010, the Corps issued approximatel y 32,200 NWP verifications, with an average processing time of 32 days.

 In FY 2010, the Corps issued approximatel y 2,100 standard permits, with an average processing time of 221 days.

 The 2012 NWPs are expected to result in a sl ight increase in the number of activities potentially qualifying for NWP authorization, allowing for more activ ities having shorter processing times.

 NWPs do not require a public notice, or a site-specific 404( b)(1) guidelines analysis, and NWPs encourage applicants to use low-cost, common sense practices in project design to avoid and minimize impacts in order to qua lify for NWP authorization instead of applying for standards permits wh ich take longer to obtain.

 The reauthorization of the NWPs is essentiall y a rollover of the existing NWPs, with little change from the 2007 NWPs. Therefore, the 2012 NWPs will have no “significant economic impacts.”

 Forty-six of the 48 existing NWPs proposed for reissuance in 2012 have no or minor changes.

 Two of the 48 NWPs (NWPs 21 and 48) propos ed for reissuance have substantial changes.

 One of the 49 existing NWPs (NWP 47) was not proposed for reissuance, because the reporting system developed for its use was not completed.

 Two new NWPs (NWPs 51 and 52) are being is sued to authorize land-based and waterbased renewable energy generati on facilities. Some of these activities required individual permits because there were no applicable NWPs available.

 The costs for obtaining coverage under an NWP are low compared to the standard permit. The costs for permit applicants range from $13,100 to $22,079 for an NWP and $31,400 to $57,180 for a standard individual permit (T able 1). The administrative costs for theCorps range from $1,800 to $3,275 for an NWP and $4,400 to $22,240 for a standard permit (without Endangered Sp ecies Act or National Historic Preservation Act consultations) (Table 2).

 NWP 21: Since June 2010, NWP 21 has been suspended in six states within the Appalachian region of the United States. Theref ore, the highest-cost scenario is that the current practice in six-state A ppalachia region will continue , which requires processing permit applications for these activities through the standard permit procedures. In other areas, the highest-cost scenario would be th at none of the projects qualify for the 2012 NWP 21 as they would exceed the 1/2-acre a nd 300 linear foot limits (unless a written waiver of the 300 linear foot lim it is issued by the district engineer) , which would result in an increased costs to the Corps and permit applicants.

 NWP 48: Approximately 40 standard individu al permits were issued for aquaculture activities in FY 2011. These activities coul d potentially qualify for the 2012 NWP 48, which would result in reduced costs fo r both permit applicants and the Corps.

 NWPs 51 and 52: These are new NWPs. Ther e is some overlap between NWP 51 and some of the existing NWPs, so there may not be substantial change s in the numbers of land-based renewable energy projects authori zed by NWP. A large majority of waterbased renewable energy generation pilot pr ojects do not currently qualify for NWP authorization, so more activities that prev iously required individual permits may be authorized by NWP. The two new NWPs will re sult in a reduction in cost for both permit applicants and the Corps.

TABLE 1: Total Nationwide Estimated Annual Cost for Permit Applicants

Nationwide Permit Prediction of Highest Cost Scenario Cost Differential Comments
NWP 21 Increased cost Cost of $702,000 in the rest of the country outside six-state Appalachian region All NWP 21 activities currently require standard permits in six-state Appalachian region, so no change would be expected. Greater costs in the rest of the country if they exceed the 1/2- acre or 300 linear foot limits and did not receive a waiver of 300 linear foot limit. NWP 48 Decreased cost Savings of $1 ,404,000 New aquaculture activities are primarily currently processed as standard permits and may now qualify for NWP 48. NWPs 51 and 52 Decreased cost Savi ngs of $351,000 Many NWP 51 activities processed under other NWPs; those that do not may qualify for NWP 51 and will no longer require standard permits. Most NWP 52 activities previously required standard permits.TABLE 2: Total Nationwide Estima ted Annual Cost for the Corps

Nationwide Permit Prediction of Highest Cost Scenario Cost Differential Comments
NWP 21 Increased cost Cost of $379,000 in the rest of the country outside the six-state Appalachian region All NWP 21 activities currently require standard permits in the six-state Appalachian region, so no change would be expected. Cost in the rest of the country if they exceed the 1/2-acre or 300 linear foot limits and did not receive a waiver of the 300 linear foot limit. NWP 48 Decreased cost Savings of $103,000 New aquaculture activities are primarily currently processed as standard permits and may now qualify for NWP 48. NWPs 51 and 52 Decreased cost Savi ngs of $26,000 Many NWP 51 activities processed under other NWPs; those that do not may qualify for NWP 51 and will no longer require standard permits. Most NWP 52 activities previously required standard permits.