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stage of the cost allocation method and the sum of the separable costs deter- mined for the components of the na- tional economic development objective. 5. Appiication 01 the cost allocation method. The cost allocation method de- scribed herein shall be 8pplled to all multiobjective reservoir projects or plans. In the case of other types of proJ- ects or plans where currently some va.riation of the separable costs- remaining benefits method of cost alloca- tion is used. 01' another procedure to allocate project economic costs among project purposes is used, national eco- nomic development coSts allocated to the na.tional economic development objective under stage 1 of the method described hereIn. may continue to be allocated among components of the national eco- nomic development objective following those procedures. 6. Review of cost allocations. Cost al- locations will be reviewed to the extent appropriate when new contributions are made to objectives or their contributions cease, or when there is a material change in the level of contributions made to- ward the objectives and their compo- nents served by a project or plan. A re- vised cost allocation or a modiflcation of the existing allocation will be made 11. as the result of such review, it ap- pears that a Significant inequity may result if the existing allocation is not revised or modified. Due consideration will be given, in the event of a revision or modification of an existing allocation, to the relative periods of time over which contributions are made to the various objectives and their components. The standards followed for the exist- ing a.Ilocation w1ll generally be followed. in the revised, allocation. In the case of minor mod11lcations, such as the withdra.wal of water for municipal water supply from existing storage space, costs may be assigned to the new component in proportion to 50me comparable measure of use such as storage capacity. or on the basis of the value of the contributions made. I:f contributions to the new component re- sult in a reduction in the contributions made to an existing reilhbursable com~ ponent. the cost assigned to the new component should be no less than the 1058 in revenues for the existing component. ,-I 7. Case examples. Attached to this section are five case examples lllustrat- ing the use of the cost allocation method described herein. B. REIMBURSEMENT AND cosr SHARING 1. General. Current reimbursement and cost-sharing policies will be re- viewed in their entirety at an early date in light of experience gained from ac- tual application of the new planning principles and standards. At that time, the basis for reimbursement and cost sharing now required, the need for ad- Justment of these policies, the need for new reimbursement and cost-sharing policies for other objectives and their components or entirely.new approaches and appro~r1ate repayment arrange- NOTICES 24183 ments and interest rates for repayment tion of the following methods as may be wlll be extensively reviewed. Until this determined appropriate by the head of comprehensive review is completed, all the Federal agency baving jw1sdfction current reimbursement and cost-sharing over the plan: (1) Cash payment upon pOlicies are consIdered to be in full force completion of construction of major fea- and effect. tures of a project. or plan providing Until such a review is completed in- streamflow augmentation, in an a.mount terim reimbursement and cost-sharing equivalent to the present worth of such arrangements may be recommended for costs discounted as appropriate using the consideration in individuall authoriza- interest rate in efrect under the provi- Uon reports when the plan involves an sions of these Standards for the fiscal objective or component for which no year in which the cash payment is made; reimbursement or cost-sharing policy (2) 'repayment in kind by provision of has yet been established. goods or services needed for the plan 2. Cost sharing for enhancement of valued at fair market value under the water quality. A cost:;Bharlng policy-for- same-terms-and-conditions as-discussed -- enhancement of water Quellty is hereby above for a oash payment; or (3) re- adopted for Federal and federally as- payment within a 50-year repayment sisted projects or plans. Until general periOd of an amOWlt equivalent to the legislation as necessary is approved to present worth of such costs discounted as implement this policy, authorization re- above, with interest based .upon the in- ports when appropriate wtll make recom- terest rate in effect under the provisions _ mendations consistent with this pollcy. of these standards for the mcal year in When storage or facilities to augment, which the repayment contract is signed. divert, retain, or otherwise regulate The non-Federal share of the plan streamflow in addition to those prOvided opemtioIl, maintenance, 'and replace- for water supply, recreation, and other ment costs allocated to the environ- uses, are Included in a plan for the pur- .mental quality objective for this com- pose of meeting water Qual1ty standards, penent sha.ll be borne by non-Federal the value of the provision of such stor- interests under either or both of the fol- age or fac1l1ties for this purpose shall be lowing ~ethods as may be determined taken into accoWlt in determining the appropriate by the head at the Federal total beneficial effects of the entire plan agency having jurisdiction over the plan: of which they may be a part. (1) Cash paymen.t annually to the Fed- The tota.linvestment costs of the plan . eraI Government, or (2) operate and ad- allocated to the environmental quality minister storage or facilities provided for objective for such streamflow regulation the purpose of meeting water Quality to meet water quality standards shall be standards and bear all the costs C1! oper- borne equally by the Federal Govem- ation. maintenance, and replacement m- ment and non-Federal entitles. The total curred therefor but not to exceed the operation, maintenance, and replace- total of such casU; allocated to the en- ment costs of the plan allocated to the .. environmental quality objective tor this vlronmental quality objective for this purpose shall be a non-Federal component. responsibility. ILLUsrRATION OJ' COST ALLOCATION METHOD The non-Federal share of the tnvest- . ment costs of the plan allocated to the environmental quality objective for this component shall be borne by non-Federal interests, under any one or a oombina.- '- ~ f t Ii ~ 11 u I, Case I-Incremental scale Included In plan IIntend&d. pr1.m&rlly to 6eI"Ve only one ObJec- tive ather than the nat:1onal ecoIlOJD01c deve1- opmeDlt; objective. A. Project Dtda.: NED Plan A Recommended Plan B " NED obJective: Benellc1al effects: FC..___________.___....h....h... RllCrtQtloli...nn____.__.___.___._. Power._..________n__n___.______. .,. 20 ao '00 SO' 30 " '20 Total.____ ______.___h_U.h__. AdverseeffecLll: . Project COll!ltmctlOl1 and OM&: Rn. liO lXl Net beneftclal ef!'ecLll_______h__h__h. liO SO EQ obJective: Beneflclal and adveI'3e effecl.ll.._hhh' In___________h_d__nh__h__h_ 1. Moot State watllJ' qua.llty etandards over lOO-mJIe stcEllWU 2. 8.000acre5 fblt wBtlll"__________n 2.. a,liOO aerm flat water. B. Inundate 10 mlles tree flow1n&' a. Inundate II miles tree flowl.ug stream. Itream. RDobJllCtlve: Income: Beneliciale.llects: FC.____n__u__..._n___...n SliO Recreatlon....._h..h.___.._. 15 Power..______________________. 80 Additional net Income aec.ru. 10 ing tl:!reg:lon.. To1al....__.___n___hhu. 105 Adverseetl'ectB: Re1mbursament. _____________ 26 Net beneflelal e1Jects.._.....nn____ 80 :&m~~~~I: and BdvEllM ef!'ecbl..._._ 1. Create 300 Jobs. Reg\oaal eoonomlc base llDd at:abIl1ty: Benefl.clnl aud adverse a1rect.!L_n_. 1. Create 3DO low paid 15e8sona lobo. $'" " " .. ." " '00 1. Create300Joba; 1. Create 300 low pBtd Ilea.sonal lobo. llO, 245-pt, II--8 FEDERAL REGISTER, VOL 36, NO. 245-TUESDAY. DECEMBER 21, 1911