Section 261-2-005 - ECONOMIC FEASIBILITYExcept as otherwise specified by subsection 005.04 of this section, a proposal is economically feasible if primary tangible benefits exceed project costs. All costs and benefit data reported by the applicant will be based upon current data and sources for all data must be documented. Certain commodity prices, recreation benefit prices, and wildlife prices will be prescribed by the Director. The Director may also prescribe other cost and benefit information necessary for completion of the report. The period of analysis for economic feasibility studies will be the life of the proposal.
005.01.Cost Information. The application must Include all relevant cost information including, but not limited to the engineering and inspection costs, capital construction costs, annual operation and maintenance costs, and replacement costs. Cost information must also include the estimated construction period as well as the estimated proposal life.005.02.Benefit Information. Only primary tangible benefits may be counted in providing the monetary benefit information. In a multi-purpose proposal, the benefits will be estimated for each purpose and displayed by year for the proposal life. The application must not include benefits derived from a previously constructed project or portion of a project. Intangible and secondary benefits of the proposal should be described for consideration and evaluation by the Director and the Commission. Benefit measurement techniques and criteria must be provided to the applicant by the Director.005.03.Cash Flow Stream. All benefit and cost data will also be presented in a table form to indicate the annual cash flow for the life of the proposal. A form for so indicating the annual cash flow must be supplied by the Director.005.04.Other Methods. In the case of proposals for which there is no generally accepted method for calculation of primary tangible benefits and if the proposal will increase water sustainability, the economic feasibility of such proposal must be demonstrated by such method as the Director and the Commission deem appropriate.261 Neb. Admin. Code, ch. 2, § 005
Adopted effective 5/21/2018Amended effective 12/27/2022