Bureau of Reclamation: Central Valley Project Cost Allocation Overdue and New Method Needed
RCED-92-74
Published: Mar 31, 1992. Publicly Released: Apr 30, 1992.
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Highlights
Pursuant to a congressional request, GAO reviewed how the Bureau of Reclamation allocates construction costs for the Central Valley Project (CVP), the Bureau's largest water resource project.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Interior | To complete the CVP cost allocation expeditiously, the Secretary of the Interior should direct the Commissioner of the Bureau of Reclamation to use less costly and more timely methodologies to update the CVP cost allocation study. GAO has suggested two approaches: (1) allocating joint costs in direct proportion to specific costs; or (2) allocating joint costs on the basis of use. |
Closed – Not Implemented
Interior concurs with the recommendation. The Bureau of Reclamation contracted for an evaluation of the methodologies to update Central Valley Project's (CVP) cost allocations. This involved review and potential revision for each cell of a large spreadsheet of cost allocations with documentation of authority, allocation procedure, and result. The draft product is now undergoing public review and comment, after which a final report will be prepared recommending the use of the most appropriate methodology. Depending on the methodologies recommended, legislation may or may not be recommended. This process is expected to culminate in promulgation of an allocation or a recommendation for legislative action by June of 2000.
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Topics
Construction costsCost analysisFloodsFacility constructionFederal legislationFuture budget projectionsUtility ratesWater resources developmentWater supply managementCost allocation