WSP01328

• File Number: 8030
• Description: Section "D" General Correspondence - Other Organizations/Agencies ‎(Alpha, not Basin Related)‎
• Date: 12/21/1971
• Author: WRC
• Title: Proposed Principles and Standards for Planning Water and Related Land Resources-Notice of Public Hearing, Water Resources Council
• Water Supply Pro - Doc Type: Publication

24156

NOTICES

of 1ncr~es in output of electric power. tribuUon of goodB and serv1ce6. and are
it is emphasized that where appropriate. measured as:
these should be viewed and evaluated as a.. The savings in the_ movement of
Increments to planned or exlstlng sys- cOmmodities on tile waterway when
tems.1 Power supplied for generaJ. com- compared with movement via existing
munity and residenttal use ca.n be eon- alternative modes; "and . I
sidered as a flna1 eonsumer good. Its b. The expressed willingness to pay by
vo.ltie 8B a :flna.l good 18 gene~ re- the shippers (producers) of conunodltY'
fleeted by the satlsfaction or individual or tramc flow newly induced by a nav1-
res1dent6 or in terms of bnproved com- gatlon improvement as reflected in the
munity services and fa.c1littes. Electric change in their net income.
power provided to industrial, commer- (2) Where tra!/ic wiZZ move in the
claJ.. and agricultural uses is vie'Yed as absence of the waterwa1l improvement.'
an energy 1n:Put to the productIon of In this situation, navigation studies
goods and services from these activities. would include an estimate of the
resulting in an increase..in the output. savings to shippers via the considered
reduction in the cost of production, or navigation improvement, measured as
a combination thereof. The total value the product of the est1me:ted traffic and
of eleclric(power to the producers using the estimated unit savings to shippers
such power is reflected in their wUling- trom the movement of that traffic via the
ness to pay. Where the identification e.nd proposed navigation improvement. The
measurement of willingness to pay e.nd unit savings would be measured as the
satisfactions accruing to. activities using ditrerence between the charges ShiPpeTS
electric power for industrial, mwlicipsJ, actually incur for transportation at the
and residential purposes are not possible, time of the study and the charges they
totaJ. value to the users will be .a.pproxi- would likely incur for transportation via
mated by taking account of the cost of\ the improvement.
power from the most likely alternative The traffic that Is estimated to move
source and using this as the measure of
the value of the power creditable to the via the proposed waterway will be based
plan. The alternative selected must be on a thorough analysis of the existing
e. viable one in terms o[ engineering, and traffic movements in the trlbuta.ry area.
I The poteD.tial traffic will be carefullY
the financing should be that moot like y screened to eliminate those movements
to the constructing entity. The costs
should include any reqUired provisions that are not, for a variety of reasons,
for protection of the environment. How- susceptible to movement on the water-.
ever, since the addition of a hydroelectric way. The traffic available for water
project to an electric system 1n lleu of movement after the screening process
a.n alternative power source usually will is completed will be subject to an analysis
either increase 'or decrease the unit cost of savings as discussed immediatelY
of producing power by existing generat- below, and, based on the magnitude of
the indicated savings, a decision will be
1Dg facllities of the system. this cost dif - made as to whether or Dot the movement
ferentiaJ must be taken into a.ccormt in would be directed to the waterway. Only
determ.1ning the power value ..of the hy- traffic for which the ditrerences in sav-
droelectrle project, Ings Is Judged imlliclently large to dlven'
Nonnally, electric power is evaluated the tra.t1ic to the waterway will be in-
In tenns of two components--capaclty
and energy. The capacity value is de. eluded in the estimated waterway traffic.
rived from a determination of the fixed. M;oreover, as a practical matter, it wlli
costs of the selected al ternati ve source be deemed realistic to assume a sharing
of supply. The energy value is determined of the total tra.1Il.c movement among aJ.-
from those costs of the alternative which ternatlve modes rather than to assume
relate to and vary with the energy output complete diversion to the lower cost
of the alternative plan. These capacity mode. -
and energy components of power value The estimate of savings wID ordinarilY
are usua.1ly expressed in terms of dollars be developed by comparing the full
per kilowatt per yea.r of. dependable charges for movement from orig1n to
capacity and mJIls per kilowatt-hour of destination via the prevailing mode of
average BJlIlual energy. t.ransportation with the charges via the
d. Transportation. (navigation). Plans waterway be1ng studied. where these
for the provislon_ of transportation charges encompass all appUca.ble han-
through tnland waterways and harbors dllng, switching assessorial charges, and
are establlshed to complement or extend net differences in inventory, storage, or
the overall national transportation sys_ other charges due to the change in t.ra.ns-
tern wtthin and among regions to e.cl11eve portation mode. The alternative modes
an improved movement of goods from of transportation to be' used in est1.ma.t-
the producer to the consumer. 1ng savings to shippers are those actually
(1) Movement 0/ intennediate or final i1n use at the time of the study for moving
goods. Transporta.tion as applied to 10- the traffic ill question, or, where there are
dustr1aJ, commerclBJ., and agricultural 00- no existing movements, those modes thB.t
tivittes is viewed 80S an eesentlal service would most likely be used for such move-
:Input resulting in savings and creation ments. In the latter ~, the alternative
of utilities in the d1str:lbutton of tnter- mode will be chosen on the basts that the
mediate and ftna1 goods and services. shipper would take advan'tla.ee of the
The beneficial e1rectB from the move- mode affordlng him the lowest total
ment of tramc are related to the improve- Charges. The competitive, or complemen-
meats In the transport>lItlon servlceB"tary, elfecbl of existing and authorized
provided. eIl<Lbllng the widespread d1s- waterways not yet constructed. Includ-

Ing joint land-waterway routes, should
also be taken Into account.
(3) Where additional floID of traffic is
~nduced b1J the plan. By making new
sources of- supply, or by increasing the
net demand for a commodity, thenaviga-
tioD improvement may induce more
traffic movement than would be the QUie
1i1 the absence of such improvement.
Beneficial elfecbl creditable to the plan
for such new tre.ffic are the differences
between the cost of transpor1:le.tion by
the waterway and the value to shippers,
that is, the maximum C05t they would be
willing to pay for. moving the various
Wlits of tmfiic involved.
Where data. are available for estimat-
ing the value at whJch various incre-
ments of the new trafDc could be moved
econ'OmicallY, the difference between
such values and the charges for trans-
portation by the waterway provides a
measure of the estimated beneficial
effects attributable to the plan.
In the absence of such data., the prob-
able average charge that could be borne
by the induced itramc may be assumed to
be half way between the highest and the
lowest charges at which any part of it
would move. On this basis, the difference
between this average and the cost by the
waterway applied to the volume of new
traffic 18 the beneficial etrect of the plan.
(4) Basis fOT evaluation. Congress has
provided the standard for computing the
beneficial eff~ of navigation in section
7(8) of the Department of Transporta-
tion Act of 1986, as follows:
. . . the primary direct n-avlgn.tlon bene.
fits of a. water l"ElIEiource project a.re defl.noo t\8
the product or the sa.v1ngs to shippers uslng
the we.terway and the estimated tre.m.c that
would uso the wate:nva.y; where the savtngs
to shippers shall be construed to mean the
difference betweeh (6) the. freight rs.tea or
charges pre'VBll1ng at the tlme of the study
for the movement by the alternative means
8lD.d (,b) tlb.ose wbl.oh would be chuged on the
proposed waterway; a.nd where the estImate
of traMc tba.t would use tbe waterway will be
based otL such fre1ght rates, taking Into ac-
count proJecUona of tge eoo;a.omlc growth of
the -aree..
Consistent with the approach above
outlined, these criteria are the basis on
which benefl.ciaJ. etrects f'Or waterway
plans will be evaluated.
e. Recreation. As national living
standards continue to rise. the average
person, wlth basic needs provided for,
uses an increasln.g percentage of rising
real income to sat1sfy a demand for
leisure time and outdoor recreational ac.
tiv1t1es such as swimming, picnicking,
boating, hunting, and 1lshIng, With gen-
eral ownershIp of a.utomoblles and im-
provement in highways, travel to distant
public recreational areas has become
commonplace. ConsequentJy, a large and
increastng portion of recreational de-
mand. especially that JX)rtlon which is
wa.ter~or1en:bed. 18 accommodated by de-
velopment at Federal lands and multi-
purpose reservoirs which Include specific
provis1cm for enhancing recreation ac-
tlvltles, ThJs Is consistent wlth the re-
quirements at the Federal Water ProJ-
ects Recreation' Act at 1965 a>ul>lJc

FEDERAL REGISTER, VOL. 36, NO. 24S_TUESDAY, DECEMBER 21, 1971