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Show The remaining investment cost should be borne by the Federal Government as a measure of the national interest. Payments recommended here should apply to water furnished to recharge ground water supplies as well as to water from surface storage, arrangements to be worked out by the States in accordance with State law. 3. Navigation Improvement.-On the condi- tion that railroad rates cannot be set below costs in order to meet rates of water carriers, considera- tion should be given to establishing a system of waterway tolls designed to recover from the bene- ficiaries of waterway transportation a substantial portion of the costs incurred for the development of waterways. 4. Flood Control.-In the case of local flood control works the local communities directly af- fected should assume an appropriate share of the cost, which could be apportioned on the basis of property values either by general taxation or by special assessment. In the case of extensive flood control works, involving large-scale upstream storage and land management programs, the States should estab- lish special districts with adequate powers to as- sume an appropriate share of the cost of provid- ing protection against floods. 5. Watershed Protection and Scientific Land- use Measures.-Where comprehensive watershed protection and scientific land use measures are adopted, districts with adequate powers should be established by the States. Participation and contribution should be required of the individual owners and operators of farms and forests who receive private benefits from the measures. The district should assume an appropriate share of the cost of the measures. The remaining costs should be borne by the Federal Government. This should be accounted for as current rather than as capital expenditure. 6. Pollution Abatement.-The principal costs should be borne by the local communities and in- dustrial firms, through the provision of adequate sewage treatment facilities. In order to hasten the construction of sewage and waste treatment works, the Federal Government should lend money at low rates and for reasonable terms to both communities and industrial firms. The pos- sibility of a combination Federal loan-grant ar- rangement to communities should be considered. 7. Recreation, Fish, and Wildlife.-The cost of prevention of damage to fish and wildlife re- sources considered worthy of preservation should be included in the cost of providing the major benefits of water resources development. The basic features for improvement of recreation and fish and wildlife should be a Federal cost. With the exception of areas of national significance, operation and maintenance should be paid for by State and local governments. Fees for opera- tion and maintenance purposes should be charged where collection is feasible and where the imposition of reasonable fees will not reduce the public use of the recreational facilities. Reimbursement Procedure The Commission has attempted to work out a procedure which, subject to such modifications as required in the future, will meet the require- ments of its recommendations. It believes that the elements outlined below constitute the foun- dations of a sucessful reimbursement policy and that the Federal Government in its operations should seek to apply this policy. 1. Multipurpose program accounts would be set up for each river basin or regional program through which all costs and receipts would be cleared. This would include a detailed invest- ment balance sheet, and an annual income and expense statement. These accounts would also be classified according to project and function. Annual costs would include operation and main- tenance, reimbursement to local and State govern- ments for any tax losses resulting from the devel- opment, and also amortization of the reimbursa- ble investment over a period ordinarily not to exceed 50 years, with or without interest, as pro- vided in the reimbursement principles set forth above at the Federal long-term borrowing rate. 2. Electric energy and water supply would be sold to public, cooperative, and private distribu- tion agencies and, in special instances, to indus- trial plants, at not less than full cost, including amortization of an allocated portion of the total 85 |
