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. 215.j Chapter III.--Cost allocations: Initial Development . The allocation of construction oosts and the apportionment of annual expenses for operation, maintenanoe, and replacmnent have been made to the followi ng project pUXlloses: irrigation. power, munioipal water supply, flood control and recreation. Flood control provides national benefits, and is not revenue producing. Construotion costs applicable to this purpose are nonreimbursable under provisions of the law. Likewise, recreation benefits are considered to be of national nature. Existing law, however, does not authorize an allocation of cost to this purpose as a nonreimbursable item without special consent or approval by Congress. Allocations to each of the other purposes are reimbursable. All project operation, maintenanoe, and replace- ment oosts attributable to the purposes of irrigation, munioipal water, and power are repayable by these revenue producing functions. An estimated total of $166,000 in General Investigation funds has been spent for investigations on the Gunnison-Arkansas Project as of July 1, 1948. This expenditure has been made for investigating all stages of development and the portion attributable to the Initial Development has not been segregated. 'Ilhen studies are completed, the total cost of investigations, will be included in the final repayment study for the entire project to be submitted upon con~letion of in- vestigations for the Yaximum Gravity Diversion. ALTERNATIVE JUSTIFIABLE EXPENDITURES Allocation of joint costs were made according to the alternative justifiable expenditure method. This method is based upon the esti- mated cost of a possible substitute single-purpose facility in the area which may provide benefits equivalent to those offered in a multiple-purpose structure for a partioular purpose, such as power, irrigation, municipal water, or flood oontrol. The alternative costs of substiture single-purpose facilities, or justifiable investments based on benefits, whichever are less are taken as alternative justi- fiable expenditures. The joint costs of the multiFle-purpose facili- ties are apportioned on the basis of the differenoes between the total alternative justifiable expenditures for single-use facilities and the specifio oosts of faoilities provided solely for that use in the multiple-purpose project. The segregation of specifio and joint oosts and the alternate justifiable expenditures by functions are disoussed in sucoeeding paragrauhs. . 20 \