The North Dakota Legislature's Water Topics Overview Committee has made significant strides in enhancing the economic analysis of water-related projects, as highlighted in their recent meeting on September 18, 2025. A key development was the implementation of an economic analysis tool aimed at ensuring state tax dollars yield a return on investment for water conveyance and flood-related projects.

This initiative stems from House Bill 1020, passed during the 65th Legislative Assembly, which mandated the state engineer to create a process for evaluating the economic viability of such projects. Following extensive public engagement and feedback, the guidelines for this analysis were established and integrated into the application process for the 2019-2020 biennium.

Initially, the economic analysis tool applied to projects with costs of $1 million or more. However, recognizing its value in assessing project scope and potential benefits, the State Water Commission, in collaboration with the interim Water Topics Committee, decided to lower the threshold to $200,000. This adjustment aligns with the statutory requirements for public improvement construction projects and was unanimously adopted by the commission in December 2019.

The economic analysis tool has proven beneficial across various cost-sharing categories, providing essential data for life cycle cost analysis and asset inventory. The North Dakota Department of Environmental Quality has also begun utilizing this data in their evaluations, further emphasizing the tool's importance in promoting effective and efficient water management practices.

As North Dakota continues to prioritize responsible investment in water infrastructure, the ongoing refinement of these economic analysis processes will play a crucial role in maximizing the benefits of taxpayer-funded projects. The committee's commitment to transparency and accountability in water resource management is set to enhance community engagement and ensure that local projects deliver tangible returns for residents across the state.