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<br />Implementation Plan <br /> <br />thus, were not included in the benefit valuation. We now estimate the <br />value ofsalinity control in the United States portion of the Basin at <br />$340 per ton, <br /> <br />tv <br />;&::. <br />00 <br />CO <br /> <br />Out of necessity, early program managers had to develop a way to rank <br />projects that accounted for this uncertainty in the benefit. Because the <br />dollar b~nefits are directly related to the tons controlled, program managers <br />ranked projects based on the cost to control a ton of salt. Thus, cost <br />effectiveness-the cost to control a ton of salt-became the standard used by <br />all agencies to rank the effectiveness of their projects, It was understood <br />that altnough the benefits of a ton of salt removal were not precisely known <br />at the titne,' they would be the same from project to project. For the most <br />part, a tEln removed from anyone project in the Upper Basin has the same <br />benefit in the Lower Basin. <br /> <br />Cost effeptiveness can be directly related to a benefit/cost ratio where the <br />cost is the cost to prevent each ton of salt from entering the river and the <br />benefit is the value of each ton of salinity controlled, The current estimate <br />for the blmefit of salinity control is $340 per ton" while the cost of salinity <br />control has ranged between $5 per ton and $138 per ton2. Reclamation's <br />average \:ost has been $70 per ton, Thus, the benefit/cost ratio is nearly $5 <br />in benefi~s for each dollar spent on salinity controL <br /> <br />Reclamation's basinwide approach to salinity control was authorized by <br />P,L, 104~20 and will continue to use cost effectiveness (dollars per ton) as its <br />main cri~eria for ranking projects and alternatives. Since actual implemen- <br />tation costs and effectiveness may vary significantly, sometimes to the <br />advantage or disadvantage of the basinwide program, these risks will be <br />considerEld in ranking projects, <br /> <br />Ranking Process and Criteria <br /> <br />Reclamation's basinwide program will be administered through existing <br />contracti~g techniques and regulations rather than adopting new <br />regulations. Reclamation will solicit proposals through a formal "Request <br />for Prop6,sals" (RFP) process, The major advantage of the RFP process is <br />that it allows the ranking criteria and mix of projects removing salt from <br />the river ito evolve as we continue to gain experience in implementing the <br />basinwid~ program, Supplemental guidance on the program will be <br />included in the RFP process as needed. <br /> <br />1 Based on Milliken Chapman Research Group report and model, Estimating Economic <br />Impacts of Salinity of the Colorado River, February 1988, indexed to current dollar values. <br /> <br />2 Based on total costs and'tons reported by GAO, Information on Salinity Control Projects <br />in the Colorado, River Basin, GAPIRCEP-95-58, March 1995. <br /> <br />, <br />, <br /> <br />-,.-;.- <br /> <br />-,: <br /> <br />~, <br /> <br />9 <br /> <br />j;j <br /> <br />"'j <br />,'I ~_ ~."- :ii.~' , <br />