ACM definitions are useful when reviewing the detailed calculations for each location rate area.
Actual Cost Rate
The nutrient offset rate for nitrogen or phosphorus in a given rate area. The rate is calculated using actual cost data from EEP projects and adjusted if the total costs of the program exceed the total receipts collected to date. Represents the true cost of implementing new projects. Ensures rates will never be below actual cost.
Actual Costs Present Day
The current cost per pound of implementing nutrient offsets measured in today's dollars - includes both project related costs and administrative costs (all other costs).
Project Costs Present Day
The current cost per pound associated only with the implementation of projects. Includes all costs associated with projects including completed projects, terminated projects, and existing projects in process, each adjusted for inflation. Non-project related program costs are not included in this calculation.
Administrative Costs Present Day
Includes all costs of the program not related to projects. Administrative costs typically included the costs of staff, supplies, rent, watershed planning, research, each adjusted for inflation.
A period of 1 to 4 years, depending on magnitude of difference between Actual Costs and Actual Receipts. The period is 1 year if Actual costs exceed Actual Receipts by less than 5%; the period is 2 years if Actual Costs exceed Actual Receipts by between 5 and 15%; the period is 3 years if Actual Costs exceed Actual Receipts more than 15% but less than 25%; and the period is 4 years if Actual Costs exceed Actual Receipts by 25% or more.
Total Pounds Offset Present Day
Total Pounds of Nutrients that will be offset by projects in the rate area, adjusted to the current regulations that determine credits.
A per pound adjustment to the rate utilized only when the Actual Costs exceed the Actual Receipts in a given rate area. If Actual Costs are greater than Actual Receipts, the difference is distributed to future pounds paid into the program over a 1 to 4 year period. Ensures additional collections are made if historical receipts were below costs.
Number of Pounds Paid During Adjustment Period
Also called Adjustment Pounds, the average number of pounds paid over last 3 years in a given rate area, multiplied by the adjustment period.
Projects for which construction and monitoring are completed, and which are now in stewardship.
Projects that were initiated and incurred some costs but which were stopped and will not be completed.
Existing Projects in Process
Projects that are currently in development but have not been completed.
The ACM utilized inflation indices to convert historical costs into present day values. The US Army Corps of Engineers Civil Works Construction Cost Index System is used for all costs except land costs, which are adjusted using farm real estate value statistics published by the US Department of Agriculture.
The payments made to the program.
General River Basin Rates
Each river basin has its own rate.
Neuse 03020201, Jordan Lake, and Falls Lake watersheds have special rates. Special rates are developed in any 8-digit Cataloging Unit for which costs are 40% greater than they are in the river basin.
8-digit Cataloging Unit (CU)
A specific watershed size designated by the United States Geological Survey, which may be the whole river basin or a sub-basin of a larger river basin.
Hydrologic Unit Code. A watershed designated by the United States Geological Survey (USGS). The 8-digit CU code number is an example of a HUC. There are many multiple HUC sizes utilized by the USGS.