Has design work started on the Charleston Peninsula Project?

Formal design work on the federal project has not started. Some initial design work was completed by the U.S. Army Corps of Engineers (USACE) as part of the feasibility study completed in 2022 in order to provide sufficient detail for the project to proceed to Congressional authorization. Prerequisites to starting formal Preconstruction, Engineering and Design (PED) are Congressional funding (provided in December 2022) and an executed Design Agreement (DA). Negotiations regarding a DA between USACE and the city have been ongoing since May 2023. The city has independently contracted firms to explore preliminary design concepts. The city and USACE entered into an MOU which will enable the eventual federal review, and if appropriate, approval of work performed by the City for incorporation into the cost-shared federal project. In order for the City’s work to be incorporated into the federal project, it must be work that would otherwise have been performed by USACE, and must meet applicable federal standards. Once the DA is executed, that agreement will govern the inclusion of any city-performed work (though the same standards will apply). Elements of design which exceed federal standards will be entirely funded by the city. The DA currently under negotiation is for a portion of the overall federal project (primarily phase 1). Significant engineering work remains to be accomplished, including extensive geotechnical and structural analysis, along with additional environmental consultation required to accompany design.

What is the current timeline for design and construction?

Once the DA for phase 1 is signed, the design (PED) phase for that portion of the project is expected to take 24–30 months. Upon completion of phase 1 design, if federal construction funding is appropriated and the city signs a Project Partnership Agreement (PPA), construction could begin along the western side of the Peninsula. The PPA will cover the remaining design after phase 1 and all phases of construction. The project would be designed and constructed in phases, starting with the western side of the Peninsula (Medical District), integrating surge protection with appropriate historic and aesthetic mitigation, as well as city-proposed enhancements (known as betterments). The 2^nd phase would encompass the entire eastside from the High Battery Wall with a tie in around New Market Creek. The 3^rd phase would be the existing Battery Wall and 4^th phase would be Wagner Terrace.

What is the relationship between the city’s Battery Extension proposal and the federal project?

The city’s Battery Extension concept is a locally driven vision that is exploring potentially alternative designs for the Charleston Peninsula Project. While the city’s initiative provides valuable input, USACE must independently evaluate all components for consistency with the authorized federal project, compliance with federal standards, and funding requirements. Proposed features that exceed federal standards are considered “betterments” and cannot be cost-shared with federal dollars. Final project design will be developed collaboratively after DA execution and is subject to USACE's formal engineering and environmental review processes. In the event that substantial changes are proposed to the federal project authorized by Congress, additional approvals to proceed may be required.

Will the project take 20 years to build?

No - assuming full Federal and city funding is available, and the parties are able to execute the PPA in a timely manner, the project is estimated to take ten (10) years to complete design and construction for all phases. Large-scale federal projects require extensive coordination, legal agreements and technical alignment. Over the past two years, the city and USACE have been negotiating the Design Agreement, which is required before PED can begin. The necessary federal funding to commence formal PED was appropriated in FY23. The project’s estimated cost—over $1 billion—demands rigorous planning to ensure long-term resilience, public support and compatibility with Charleston’s historic character.

How does this project relate to the Charleston Tidal and Inland (CTI) Study?

The Charleston Peninsula Project (CPP) focuses on reducing storm surge risks on the Peninsula. The CTI Study is based upon a separate study authorization from that on which the CPP study was based. The CTI Study was authorized in WRDA 2020 to address flooding from rainfall and tidal events on the Peninsula, as well as across broader areas of the city such as West Ashley and James Island. While based upon separate study authorizations and proceeding on somewhat differing timelines, the studies are intended to be complementary. Where appropriate, CTI measures that are approved for design and construction may be integrated into future CPP phases to provide more holistic flood risk management. Both CPP and CTI are key to accomplishing federally authorized goals for the reduction of coastal storm and flood risk, and are expected to mesh with the goals laid out in the city’s comprehensive water plan.

In-Kind Memorandum of Understanding for Design Work Performed Prior to Execution of a Design Agreement

What is an In-Kind Memorandum of Understanding (MOU)?

An In-Kind MOU is a document executed by the Corps and a non-federal sponsor (such as the City) which allows for eventual credit for the value of materials or services provided by the non-federal sponsor prior to execution of a formal project agreement (such as a design agreement).  In this case, credit for eligible in-kind contributions would go toward the City’s required non-federal cash contribution should a design agreement subsequently be executed.  The statutory authority for an In-Kind MOU is found in Section 221(a)(4) of the Flood Control Act of 1970, as amended (42 U.S.C. 1962d-5b(a)(4)).

What led to the execution of an In-Kind MOU between the Corps and the City?

By letter dated June 11, 2024, the City requested to enter into an In-Kind MOU to carry out certain proposed design work prior to the execution of a design agreement for the Charleston Peninsula CSRM project.  After some discussion regarding the scope of in-kind design work, the Corps and City executed an In-Kind MOU on October 24, 2024.  The MOU does not deviate from the standard provisions of the model MOU developed by the Corps for in-kind work prior to execution of a design agreement.

What design work is covered by the MOU?

The design work contemplated in the MOU generally consists of preliminary preconstruction engineering and design (PED) work and design-related studies regarding storm surge structure alignment and form, along with supporting data collection and assessments, as well as public engagement.

Are there requirements that the City’s design work has to meet in order to be eligible for credit?

Yes.  First, the Corps must determine that the City’s design work is integral to the Project prior to the execution of a design agreement.  The non-federal design work must constitute work that the Government would otherwise have undertaken for design of the Project in order for it to be deemed integral, and must be consistent with the general parameters of PED work outlined during the feasibility phase of the Project.  Second, creditable non-federal design work does not include activities which the City would be obligated to perform as part of a design agreement (such as serving on a design coordination team).  Third, the Corps must verify that the City’s design work was accomplished in a satisfactory manner, and in accordance with applicable Federal laws, regulations, and policies.  Fourth, after the design work is performed by the City pursuant to the In-Kind MOU, the Corps will conduct an audit to determine the reasonableness, allocability, and allowability of the City’s costs.

What if the City wants to achieve more with its design work than the Corps would otherwise do for design of the Project?

The City is not prevented from achieving complementary goals which are in addition to or which exceed those that the Corps would otherwise apply to design of the Project.  Where non-federal design work exceeds the standards that the Corps would otherwise apply to design of the Project, it is considered a “betterment”.  Design work associated with additional work or betterments is not eligible for credit under the In-Kind MOU.

Does the MOU provide a guarantee that covered design work will receive credit if a design agreement is executed?

No.  In addition to the conditions for eligibility noted above, credit for in-kind design work may be impacted by such things as project authority and funding, or by future modification of the project which could result in certain in-kind design work no longer being an integral part of the Project.

Click here for the City of Charleston's Peninsula Coastal Storm Risk Management project FAQ site.

Memorandum of Understanding Charleston Peninsula Aesthetic Assessment

Charleston Peninsula Programmatic Agreement

Send the Charleston Peninsula Coastal Storm Risk Management Project team an email at chs-peninsula-study@usace.army.mil