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<br /> <br />SECTION C <br />EVALUATION CRITERIA <br /> <br />tV <br />CJl <br />tv <br />00 <br /> <br />Cost-effectiyeness (the cost to control each ton of salt) is Reclamation's <br />primary criteria for ranking its implementation priorities, In implementing <br />its new program, Reclamation will adjust the ranking (not cost effective- <br />ness) to consider a variety of performance risk factors, These will include <br />the uncertainty in both program costs and tonnage reductions, <br /> <br />In 1984, the Act was amended to direct the Secretary to give preference to <br />units that reduce salinity at the least cost per unit of salinity reduction (or <br />cost effectiveness), Cost effectiveness is defined as the salinity program's <br />cost per ton to prevent salt from entering the Colorado River System, <br />Conceptually, cost effectiveness is analogous to determining the cost per <br />mile to own and operate a car, That computation combines the annual <br />expenses (loan payments, gas, maintenance, etc,) and divides by the miles <br />travelled each year, A key to understanding this approach is to appreciate <br />that even though the Government may not necessarily borrow money to <br />construct facilities, the Government evaluates all projects as if the money is <br />borrowed from a loan institution and repaid in annual installments over the <br />life of the project, This process yields an annual cost to match the annual <br />salt removal, or cost per ton, This economic evaluation principle is required <br />by the Economic and Environmental Principles and Guidelines for Water <br />and Related Land Resources lmplementation Studies, March 1983, This <br />analysis lends consistency in the comparison of non-federally financed <br />alternatives (which must borrow funds) to federally financed projects, <br /> <br />C.1 General <br /> <br />Each proposal will be evaluated using the following selection factors: <br /> <br />(a) Cost effectiveness, or the annual cost for each ton of salt load <br />reduction, expressed in dollars per ton, <br /> <br />(b) Performance risk, Performance risk will evaluate the cost and <br />effectiveness risks of the proposal. <br /> <br />C.2 Cost Effectiveness <br /> <br />The objective of the salinity control program is to maintain the Colorado <br />River Basin water quality standards, To be effective at meeting this goal, <br />projects must be located above all three of the gauging stations used to <br />monitor compliance with the standards, The most upstream gauge is <br />located just below Hoover Dam on the Nevada/Arizona border, <br /> <br />, C-10 <br />