FLOOD02879

• County: Statewide
• Basin: Statewide
• Title: Water Project Construction Loan Program
• Date: 8/1/1994
• Prepared By: CWCB
• Floodplain - Doc Type: Educational/Technical/Reference Information

In those cases where capital costs for alternatives are spread out over a long period of
time, the present value of the costs should be calculated before calculating annual costs.
The present value of the costs should be calculated to the same time base (year) for each
alternative.

For example, an alternative may involve an ir.umediate capital expenditure for the
construction of a pumping plant and a major expansion of the pumping plant ten years
from now. The present value of the plant expansion scheduled ten years in the future
must be calculated before it is added to the cost of the initial plant construction for
purposes of cost comparisons.

The cost per unit of output for each alternative should be calculated by dividing the
annual cost by the estimated annual output. For water supply projects (both agricultural
and municipal), the unit costs should be expressed in terms of dollars per acre-foot of
yield per year. For hydropower projects, unit costs should be given in terms of cents or
mills per kilowatt-hour of energy produced.

Multi-purpose projects will require a cost allocation to each project purpose. The cost
per unit of output is then calculated separately for each project purpose using the results
of the cost allocation. The assumptions and methodology used for the cost allocation
should be provided in the study report

3. Impacts

For each alternative considered, three categories of potential impacts should be analyzed:
impacts on the man-made environment; impacts on the natural environment; and impacts
on the existing social structure.

The level of detail for these analyses will depend upon the scope of the study and the size
and location of the proposed project. In general, more detailed analyses will be required
for feasibility studies while reconnaissance studies will utilize mostly existing data.

Where federal lands or federal permits are involved, an environmental assessment (EA)
or environmental impact statement (EIS) may be required. In these cases, the scope of
the EA or EIS will be prepared in consultation with the appropriate federal agency.

Studies for proposed projects which do not require an EA or EIS will utilize the follow:ing
outline for the assessment of both long-term and short-term impacts:

a. Impacts on the Man-Made Environment

. Number of dwelling units, commercial facilities, and other
structures to be removed or relocated,

. Miles of utilities and miles of roadway to be relocated,

B-3