the employment increase to each sector should be 

 classified as to the level of skill required — unskilled, 

 semiskilled, and highly skilled. 



(c) Negative effects on regional economic devel- 

 opment. 



(1) Regional income. The negative effects of a 

 plan on a region's net income are equal to the sum 

 of the NED costs of the plan that are borne by the 

 region, plus transfers of income from the region to 

 the rest of the Nation. 



(i) Regional incidence of NED costs. The NED 

 costs of a plan that are borne by a region should 

 be organized in the same categories used in the 

 cost section of the NED account. Information from 

 the cost allocation and cost sharing analysis under- 

 taken as a part of the planning process will be 

 needtid to estimate these direct expenditures. 



(ii) Transfers. Income transfers from the region 

 include net income losses from plan-induced shifts 

 of economic activity from the region to the rest of 

 the Nation and losses in existing transfer payments, 

 plus any impacts that may affect the region as a 

 result of NED costs or transfers from the region. 



(2) Regional employment 



(i) The negative effects of a plan on regional em- 

 ployment should be organized and analyzed using 

 the same categories and conceptual bases used 

 for negative regional income effects (paragraph 

 (c)(1) of this section). 



(11) The incidence of negative regional employ- 

 ment effects should be shown in a manner similar 

 to that required for the positive regional employ- 

 ment effects. 



(d) Relationship between RED and NED effects. 

 Income information in the RED account should be 

 organized in the same categories as the NED ef- 

 fects. The relationship between the affected region- 

 al economies and the national economy should be 

 recognized. Since the NED account registers all ef- 

 fects on the national economy, any differences be- 

 tween the regional and national economic effects 

 of a plan take the form of transfers from the rest of 

 Nation. The effects of these transfers should be 

 listed in a "rest of Nation" category. The effects in 

 the rest of Nation category are equal to the differ- 

 ence between the RED effects and NED effects of 

 a plan. This rest of nation category should be dis- 

 played in the RED account together with the RED 

 and NED effects. 



1.7.5 Other Social Effects Account. 



(a) General 



(1) The OSE account is a means of displaying 

 and integrating into water resource planning infor- 

 mation on alternative plan effects from perspec- 

 tives that are not reflected in the other three ac- 

 counts. The categories of effects in the OSE ac- 

 count include the following: Urban and community 

 impacts; life, health, and safety factors; displace- 

 ment; long-term productivity; and energy require- 

 ments and energy conservation. 



(2) Effects may be evaluated in terms of their im- 

 pacts on the separate regions and communities af- 

 fected. 



(3) Effects on income, employment, and popula- 

 tion distribution, fiscal condition, energy require- 

 ments, and energy conservation may be reported 

 on a positive or negative basis. Effects on life, 

 health, and safety may be reported as either bene- 

 ficial or adverse. Other effects may be reported on 

 either a positive/negative basis or a beneficial/ad- 

 verse basis. 



(4) Effects that cannot be satisfactorily quantified 

 or described with available methods, data, and in- 

 formation or that will not have a material bearing on 

 the decisionmaking process may be excluded from 

 the OSE account. 



(b) Urban and community impacts. 



(1 ) A formal treatment of urban related impacts is 

 not required for implementation studies. However, 

 types and locations of significant impacts, broken 

 down by salient population groups and geographic 

 areas, may be reported in the OSE account. 



(2) The principal types of urban and community 

 impacts are — 



(i) Income distribution; 



(ii) Employment distribution, especially the share 

 to minorities; 



(iii) Population distribution and composition; 



(iv) The fiscal condition of the State and local 

 governments; and 



(v) The quality of community life. 



(c) Life, tiealth, and safety. Effects in this catego- 

 ry include such items as risk of flood, drought, or 

 other disaster affecting the secuity of life, health, 

 and safety; potential loss of life, property, and es- 

 sential public services due to structural failure; and 

 other environmental effects such as changes in air 

 or water quality not reported in the NED and EQ 

 accounts. 



(d) Displacement. Effects in this category include 

 the displacement of people, businesses, and farms. 



(e) Long-term productivity. Effects in this catego- 

 ry include maintenance and enhancement of the 



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