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24182 b. Cost allocation among compo- nents-(1) OJ the national economic development objective. National ,eco- nomic development costs allocated to the national economic development objective tmder the procedures discussed above for stage 1 shall be further allocated among components of that objective in the fol- lowing manner: Each component of the national eco- nomic development objective served by a plan shall be allocated- Not less than the separable national economic development costs of achieving the beneficial e:llects attributable to each component determined under the as- sumption that each component Is in turn omitted last from the plan, adjusted downward by an amount equivalent to the national economic development costs allocated to the environmental quality or regional development objective in the first stage of the cost allocation method in cases when a desired contribution to such objective stems directly from the provision of service to a national eco- nomic development component, Nor more th'an the lesser of the bene- flciaJ. effects or the costs, comparably evaluated, of the alternative means most likely to be Wldertaken In the absence NOTICES of the plan of obtaInIng the beneficial effects atributable to each component. Remaining joint national economic de- velopment costs <the total national eco- nomic development costs allocated to the national economic development objective in stage 1 less the sum of the separable national economic development costs de.. termined for each component of that ob- jective) shall be allocated among all components in proportion to the lesser of beneficial effects or altern-sUve costs less any separable costs previously allocated to each component -of the national eco- nomic development objective. (2) 01 other ob1ectives. W"hen required for establishing reimbursement levels, pricing pollc1es, or cost sharing, the costs aJIocated to the environmental quality or the regional development objective in stage 1 will be further allocated among components of each objective in pro- portion to the costs, comparably evalu- ated, of the alternative means most likely to be undertaken in the absence of the plan of obtaining the beneficial effects attributable to each component. Following is an example table mus- trat1ng how the national economic de- velopment costs allocated to the compo- nents .of the multlobJecttves may be dis: played for the major alternative plana. '!'.i.Bl.. 2.-.& DT6PLAT OJ' NATIONAL ECON01UC DEVELOPll.EN" Cosu ALLOCATKD 'I'Q THlI: MULTJOB'XC1TVES AND THEm COlHONENT!I rOR mE MAJOR ALTKRN.i.Trv. PUNS Allocat.edto NED EQ RD Plan A,; Plan element 1"00_.._______________ Water ~llprJy. - Power. Flood control Rocflllltion. Extunal economlell_ Etcetera.. Total Plan element: 2_____..___._____.__________ a... _d______________._______ Nd_____U.______ -------.----- J'1anB: Plan element: 1-_.____________..___._________ 2_______._______________._______ a___~_..__u_____________._____ Nu__._n___________________ PIan c: Plan element: 1_______.__________.______.____. 2-_____________________________ 3.___._____~_____________________ N_h_____..__h______.______.___ Water quality. . Open and groon ~p(l.Cl'l. Wlldrlvers. Wetlands_ ArcbllOlogicallee.tlltell. Etcetera. Total R~ono.l output. Employment_ Economic 8tablllty. g~~~I~J~ft~nn1tillll. Eteetera.. TotlU 4. Definitions-a. Components. Com- ponents pf the environmental quality and 'regional development objectives comprise the specific beneficial contributions to- wa.rd these objecUves desired in a par- ticular planning setting. For purposes of cost allocation, components of the national economic development objective include the more tra.ditional purposes such as power, water supply, flood con- trol, recreation, irrigation, etc., and one new component which encompasses the category of beneficial effects for external economics. b. Alternatives. The costs of selected alternative means of obtaining the con- trtbutions to an objective or component of an objective provide a llmlt on the costs to be allocated to an objective or component of an objective. The costs of selected alternative means of obtaining the contributions to one or more obJec- tives or components are also detennined to identify the incremental costS for the environmental quality or the regional de- velopment objective or tJheir components and the separable costs for the compo~ nents of the national economic develoD- ment objective. A range of possible alternatives to meet needs and problems, including types of measures and alternatives capa- ble of application by various levels of government and by nongovernmental interests, should be considered. The al~ t.ernatlve means of obtaining the rele- vant contributions to the multiobJectives to be selected for the above determina- tloDs should be those which would be . physically displaced or economically pre- cluded by the proposed plan and those wWch would likely be Wldertaken in" the absence of the proposed plan. The alternative means selected for the above determinations which would likely be physically displaced or eco- nomically precluded with implementa- tion of the proposed plan. or increments thereto, will be evaluated on a compa- ra.ble basis with the proposed plan with respect to their beneficial and adverse effects on the several objectlves, includ- ing the .treatment of national economic development costs and the discount rate . used in the evaluation. Taxes foregone on Federal alterna- tives and taxes paid on non-Federal al- ternatives will be excluded from such evaluations for the national economic development objective. c. Incremental costs. For purposes of cost allocation, incremental costs are de- fined as the national economic develop- ment costs of including features in B plan intended primarily. to serve an ob- jective oUler than the national economic development objective. Such incremen- tal costs wtll be determined nnder the asswnption that each such objective ls served in turn last. Gross incremental. costs for the environmental Quality or the regional development objective are the total incremental costs of features included in 6 plan prtmarily for that objective. Net incremental costs repre- sent the gross incremental cost for one of these objectives less any incidental incremental national economic develop- ment beneficial effects that accrue as a result of including features 1n a plan for the same objective. d. Separable costs. Separable C06ts are defined as the differences between the national economic development costs of a plan and the national economic devel- opment costs of the plan with each com- ponent of the naUonal economic develop- ment objective in turn omitted, adjusted downward by an amount equivalent to the national economic development costs allocated to the environmental quality or regional development objective in the first stage of the cost allocation method in cases when a desired. contribution to such objective stems directly from the provisiOns of service to a national eco- nomic development component. ~. Remaining taint costs. Remain1ng Joint costs are defined below as they ap~ plY to stage 1 and stage 2 of the cost allocation method described herein. For allocation of costs among objec- tives, remaining joint costs are defined as the difference between the total na- tional ecomonlc development costs of a mult10bjective plan and the sum of the net incremental costs detennined for the environmental Quality and regional development objectives. For allocation of costs among com- ponents of the national economic devel- opment objective. remaining joint costs are deflned as the difference between the total national economic develop- ment costs allocated to the national eco- nomic development objective in the first FEDERAL REGISTER, VOL 36, NO. 24S_TUESDAY, DECEMBER 21, 1971