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 include completed nutrient-offset projects, terminated projects, existing projects in process and administrative costs (staff, supplies, rent); all costs are adjusted to present-day values.
Total pounds is determined using present-day values to represent the true cost of implementing a new project, to factor in changes in regulations and to ensure the rates will not be below actual cost.
In addition, if the EEP Nutrient Offset Program’s total costs are greater than receipts, an adjustment factor ensures that sufficient receipts are collected to pay for the full cost of the program.