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N.C. Department of Environment and Natural Resources

NC Department of Environment and Natural Resources
Ecosystem Enhancement Program - Nutrient ACM

Ecosystem Enhancement Program

 

EEP

 

 NUTRIENT ACTUAL COST METHOD

 

 

Simple Premise

The ACM accounts for all EEP costs associated with achieving nutrient reductions inclusive of contracts with private entities to design and build restoration projects, expenditures for land acquisition and program administrative costs. The method will ensure that revenues and expenditures are in balance.
 
The ACM begins with a simple equation:
 
Actual Costs / Total Pounds = Actual Cost per pound
 
Actual Costs include: completed projects, terminated projects, existing projects in process, and administrative costs (staff, supplies, rent) and all costs are adjusted to present day values.
 
Total Pounds is also determined using present day values to represent the true cost of implementing a new project, factor in changes in regulations and ensure the rates will never be below actual cost.
 
In addition, if EEP’s Nutrient Program’s total costs are greater than the Program’s receipts, an Adjustment Factor is applied to the fee calculation. This ensures that fees are commensurate with the actual costs of the program.
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