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Show 54 BUDGET BUREAU CIRCULAR A-4 7 AND POWER PARTNERSHIP nomic life of the new project or portion thereof but in not to exceed 50 years, provided that the system to which the new project is to be added has a remaining useful economic life at least equal to that of the proposed new project. For each proposed addition to an existing system, there should be a separate estimate of the benefits, economic and financial costs, and the revenues from or attributable to the new project or portion thereof. 15. Determination of interest rate on Federal investment Interest for purposes of estimating reimbursements shall be calculated at a rate based upon the average rate of interest payable by the Treasury on interest-bearing marketable securities of the United States outstanding at the end of the fiscal year preceding such computation which, upon original issue, had terms to maturity not more than 12 months longer or 12 months shorter than the economically useful life of the project or part thereof in which Federal investment is to be made. Where the economically useful life of the project is expected to be longer than 15 years, the rate of interest shall be calculated at a rate based upon the average rate of interest payable by the Treasury on obligations, if any, outstanding at the end of the fiscal year preceding such computation, which, upon original issue, had terms to maturity of 15 years or more. If there are no such outstanding interest-bearing marketable securities of the United States with orierinal terms to maturity not more than 12 months longer or 12 months shorter than the economically useful life of the project, or with original terms to maturity of 15 years or more, interest shall be calculated at a rate equal to the rate of interest payable by the Treasury on the issue of interest-bearing marketable securities of the United States outstanding at the end of the fiscal year preceding such computation which, upon original issue, had terms to maturity shorter than, but most nearly equal to, the economically useful life of the project. Where the averasre rate calculated by the methods prescribed above is not a multiple of one-eighth of 1 percent, the rate of interest shall be the multiple of one-eighth of 1 percent next lower than such average rate. 16. Additional standards relating to power (a) Proposals for the incorporation in a program or project of power features will be reviewed in accordance with the criterion that total financial costs allocated to power shall be fuily reimbursable. For this purpose, the project report shall include an estimate of the revenues to be obtained from the sale and disposition of the program or project power and any other funds which may be derived from the generation, transmission, sale, and disposition of such power, or activities incidental thereto. (6) Where a program or project contemplating immediate or eventual construction of power facilities is proposed for legislative authorization, the report on such program or project shall include a statement of the views thereon of the Federal Power Commission, the agencies concerned with marketing power produced at Federal plants in the region, and other appropriate agencies. Agencies submitting such views shall be given reasonable notice by the agency proposing a program or project involving power facilities of the latter agency's intention to complete the evaluation of the program or project. If the views of the agencies referred to above are not make known to the agency proposing the project within 90 days after completion of the main program or project report, the head of the agency proposing the program or project may submit the report thereon to the Bureau of the Budget without an accompanying statement of the views of these agencies. Such statements will be used in determining (1) the need for the additional power which such program or project would make available, (2) the cost of such additional power at load centers, compared with the cost of equivalent power from alternative sources in the same region, (3) the revenues which would be derived from the sale of the additional power, (4) the effect of the program or project on the rate of depletion of the fuel resources of the region or Nation, and (5) recommendations as to the timing of the installation of generating and other power facilities as part of, or incidental to, the program or project. 17. Additional standards relating to flood control (a) In the preparation of any program or project report concerned with flood control, the head of the agency proposing such program or project shall give consideration in the report to all methods of preventing or reducing flood damage in each particular instance and shall include a report on the most effective and |
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Original book: [State of Arizona, complainant v. State of California, Palo Verde Irrigation District, Coachella Valley County Water District, Metropolitan Water District of Southern California, City of Los Angeles, California, City of San Diego, California, and County of San Diego, California, defendants, United States of America, State of Nevada, State of New Mexico, State of Utah, interveners] : |