DWR proposes operational changes to economic analysis tool to better weigh aging drainage projects
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Summary
Department of Water Resources Director of Planning Duane Poole proposed guidance changes to North Dakota's economic analysis tool so projects nearing end of useful life or affected by changing hydrology will more accurately capture benefits, seeking local stakeholder input and emphasizing procedural (not statutory) changes.
Duane Poole, director of planning and education at the Department of Water Resources, told the Agriculture and Water Management Committee that the state’s economic analysis (EA) tool — used to review water conveyance and flood projects expected to cost $1 million or more — needs operational adjustments to reflect two realities: (1) many drains and drainage structures experience diminished capacity as they near end of useful life, and (2) hydrologic design data may no longer be stationary due to changing climate patterns.
Poole said the department proposes to adapt guidance and operating procedures so engineers and local water resource districts can capture demonstrable benefits that arise when a degraded structure is redesigned or restored. Under the current approach, an end‑of‑life designation could reduce ‘benefiting acres’ to zero; Poole argued a more nuanced approach that models reduced capacity and the potential gains from restoration would give some projects a more realistic economic score.
On non‑stationary hydrology, Poole cited federal and USGS reevaluations that altered frequency estimates for storm events; he proposed using updated data sources (USGS, NOAA, FEMA StreamStats) in the EA baseline where appropriate. He emphasized that the suggested changes require no statutory revision and could be implemented via agency guidance and changes to DWR’s review procedures.
Committee members raised concerns about the balance between clinical model inputs and local ‘common sense’ and urged written language and outreach with water resource districts. Poole said he and staff have been meeting with stakeholders and intend to present draft language for committee review; he provided summary statistics showing roughly 39 conveyance projects reviewed under the EA, with about $69 million in costs and $86 million in net benefits, and noted around one in four projects reviewed had benefit‑cost ratios below 1.0 under current inputs.
Why it matters: the proposed operational changes could alter which local drainage and flood projects qualify for cost‑share funding by changing how benefits are counted and the baseline hydrology used in analyses. The department framed the changes as a transparency and consistency effort to reduce unintended penalization of older infrastructure while maintaining statewide accountability for taxpayer dollars.
Next steps: Poole asked for committee feedback and pledged to circulate draft guidance and examples, and to work with the Water Resource District Association on pilot scenarios before formal adoption.
