2.5.4 Evaluation procedure: General. 



(a) Follow these steps to estimate NED benefits 

 that would accrue whenever the plan would not be 

 100 percent nonfederally financed. When single- 

 purpose hydropower alternatives being studied 

 would be 100 percent nonfederally financed, the 

 market-based procedure specified in Section 2.5.10 

 may be used. Nonfederally financed means that all 

 construction and operation costs would be financed 

 entirely from sources other than federally appropri- 

 ated funds. The level of effort expended on each 

 step depends upon the nature of the proposed de- 

 velopment, the state of the art for accurately refin- 



ing the estimate, and the likely effect of further re- 

 finement on project formulation and justification. 



(b) For the purpose of ensuring efficiency in the 

 use of planning resources, simplifications of the 

 procedures set forth in this section are encouraged 

 in the case of single-purpose, small scale hydro- 

 power projects (25 MW or less), if these simplifica- 

 tions lead to reasonable approximations of NED 

 benefits and costs. In addition, an analysis of mar- 

 ketability may be substituted for determination of 

 need for future generation for hydropower projects 

 up to 80 MW at existing Federal facilities. 



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