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000323 17 "It must include comprehensive planning unimpeded by a required conformity to an impersonal, mechanical. preprogrammed formula. The opportunity cost of money or discount rate is part of such a formula. "The cost-benefit ratio should be regarded as a valuable source of comparative information, but it should not be used as the only criterion in judging the worth of water resource projects. And to interject an even higher discount rate in cost- benefit com- putation is to compound the inadequacy of the cost-benefit ratio itself. "The use of the high discount rate to determine the worth of a federal project is comparable to the use of a crowbar to adjust the mechanism of a fine watch. "Our nation must shape our resource development or deny development based on a comprehensive study of the merits of each case. We should not seek to stifle consideration of com- prehensive merits of a project or the debate over such a project by an arbitrarily selected high discount rate designed to defeat projects rather than to illuminate their worth. " Dr. Leo M. Eisel, Environmental Defense Fund "We believe that while the proposed principles and stand- ards are, in general, firmly grounded in benefit-cost and welfare economic theory, adequate concern has not been given to methods for their practical application. If the proposed principles and standards are to result in more socially, economically and en- vironmentally desirable policies and programs, additional attention must be given to application methods. " ~:=:**** "Estimation of project cost is always easier than measure- ment of benefits to society from providing municipal and indus- trial water supply, flood control, hydropower, recreation, and so forth. The proposed principles and standards indicate will- ingness to pay' will be the 'general measurement standard' for evaluating increases in the national output of goods and services as sociated with a water resource project.