Nebraska Administrative Code › Topic - NATURAL RESOURCE COMMISSION › Title 256 - RULES AND REGULATIONS GOVERNING THE ADMINISTRATION OF THE RESOURCES DEVELOPMENT FUND › Chapter 2 - APPLICATION PROCEDURES AND REQUIREMENTS › Section 256-2-014 - Economic Feasibility

Current through June 17, 2024
Except as otherwise specified by subsection 014.04 or
				  subsection 014.05 of this section, a project is economically feasible if
				  primary, tangible benefits exceed project costs. In addition, for projects for
				  which $100,000 or more is requested from the Fund, each project's purpose in a
				  multi-purpose project must provide benefits equal to or greater than its
				  separable or specific cost as specified by the Director and there must be no
				  known means of accomplishing the same purpose or purposes more economically.
				  The Director and the Commission may also require that separable project
				  features or increments have benefits which equal or exceed their 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 feasibility report. The period of analysis for
				  economic feasibility studies shall be fifty (50) years or the life of the
				  project, whichever is less.
014.01
				Cost Information
The report shall include all relevant cost information
				  including, but not limited to, all actual or anticipated costs for the
				  feasibility study, the engineering and inspection costs, capital construction
				  costs, annual operation and maintenance costs, and annual replacement costs.
				  Cost information shall also include the estimated construction period as well
				  as the estimated project life.
014.02 Benefit Information
Only primary tangible benefits may be counted in providing
				  the monetary benefit information. In a multi-purpose project, the benefits will
				  be estimated for each purpose and displayed by year for the project life.
				  Intangible and secondary benefits of the proposed project or program should be
				  described for consideration and evaluation by the Director and the Commission.
				  Benefit measurement techniques and criteria shall be provided to the applicant
				  by the Director.
014.03 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 project, not to
				  exceed 50 years. A form for so indicating the annual cash flow shall be
				  supplied by the Director.
014.04 Rate-of-Return on Investment
The cost and benefit data expressed in the cash flow stream
				  will be utilized by the Director to calculate the rate-of-return on the
				  investment. The rate-of-return on the investment is the discount rate applied
				  to future benefits and costs at which costs and benefits become equal and the
				  net present worth of the project cash flow is zero. The Commission may
				  prescribe a minimum rate-of-return for a project to be considered economically
				  feasible.
014.05 Other
				Methods
In the case of proposed programs or projects for which there
				  is no generally accepted method for calculation of primary, tangible benefits,
				  the economic feasibility of such program or project shall be demonstrated by
				  such method as the Director and the Commission deem
				  appropriate.