(6) Performing a sensitivity analysis of the esti- 

 mated benefits and costs of alternative plans. 



(e) Reducing risk and uncertainty may involve in- 

 creased costs or loss of benefits. The advantages 

 and costs of reducing risk and uncertainty should 

 be considered in the planning process. Additional 

 information on risk and uncertainty can be found in 

 Supplement I to this chapter. 



1.4.14 Documentation. 



Planning studies are to be documented in a 

 clear, concise manner that explains the basic as- 

 sumptions and decisions that were made and the 

 reasons for them. The documentation should be 

 prepared in a manner to expedite review and deci- 

 sionmaking. 



(b) Based on this analysis, an appraisal should 

 be made of the potential for alleviating the prob- 

 lems and realizing the opportunities. The appraisal 

 provides guidance on the possible scope and mag- 

 nitude of actions needed to address each problem 

 or opportunity. This appraisal should identify possi- 

 bilities for management, development, preservation, 

 and other opportunities for action. Resource inven- 

 tories and forecasts may suggest additional prob- 

 lems or opportunities. These possibilities will indi- 

 cate the resource capabilities relative to specific 

 commodities, services, or environmental amenities 

 desired by the public. By proper selection of these 

 development or management possibilities, alterna- 

 tives may be formulated for each problem or oppor- 

 tunity. 



Section VI— Alternative Plans 



Section V— Inventory and Forecast of 

 Conditions Without a Plan 



1.5.1 Resource Conditions. 



(a) An inventory should be made to determine 

 the quantity and quality of water and related land 

 resources of the planning area and to identify op- 

 portunities for protection and enhancement of 

 those resources. The inventory should include data 

 appropriate to the identified problems and opportu- 

 nities, as determined by scoping, and the potential 

 for formulating and evaluating alternative plans. 

 The inventory does not necessarily include an ex- 

 haustive listing of resources of the area. This inven- 

 tory should describe the existing conditions and 

 should be the baseline for forecasting with- and 

 without-plan conditions. 



(b) The most likely future condition without a plan 

 should be used for evaluating the effects of alterna- 

 tive plans. 



1.5.2 Problems and Opportunities. 



(a) Inventory and forecasting should include an 

 analysis of the identified problems and opportuni- 

 ties and their implications for the planning setting. 

 Resource inventories should be limited to resources 

 affecting the problems and opportunities or likely to 

 be affected by the alternative plans. As alternative 

 plans are developed or refined, the adequacy of 

 these resource inventories should be reassessed. 

 This analysis should be used to redefine the specif- 

 ic problems and opportunities associated with the 

 Federal objective and other State and local con- 

 cerns. 



1.6.1 General. 



(a) An alternative plan consists of a system of 

 structural and/or nonstructural measures, strate- 

 gies, or programs formulated to alleviate specific 

 problems or take advantage of specific opportuni- 

 ties associated with water and related land re- 

 sources in the planning area. 



(b) Alternative plans should be significantly differ- 

 entiated from each other. 



(c) Alternative plans should not be limited to 

 those the Federal planning agency could implement 

 directly under current authorities. Plans that could 

 be implemented under the authorities of other Fed- 

 eral agencies. State and local entities, and nongo- 

 vernment interests should also be considered. 



(d) Alternative plans may either— 



(1) Be in compliance with existing statutes, ad- 

 ministrative regulations, and established common 

 law; or 



(2) Propose necessary changes in such statutes, 

 regulations, or common law. 



(e) A range of measures that can, over time, bal- 

 ance water demand for various purposes with water 

 availability should be considered, including meas- 

 ures that will — 



(1) Reduce the demand for water; 



(2) Improve efficiency in use and reduce losses 

 and waste; 



(3) Improve land management practices to con- 

 serve water; and/or 



(4) Increase the available supply of water. 



