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State water officials warn of multibillion-dollar funding gap, urge bonding and governance changes
Summary
The director of North Dakota's Department of Water Resources told the Lake Agassiz Water Authority that projected extraction-tax declines create a near-term funding shortfall of about $2.1 billion and longer-term gap of $1.7 billion, and consultants recommend bonding and governance options including state ownership for further due diligence.
Reese Haas, director of the North Dakota Department of Water Resources, told the Lake Agassiz Water Authority that long-term revenue tied to extraction taxes is declining and the state's projected available funding cannot cover the pipeline and water-supply projects on the horizon. "Deloitte found ... 2,100,000,000 in near term shortfall and 1,700,000,000 in longer term shortfall over the next decade," Haas said, summarizing a consultant analysis of statewide demand and revenue.
Haas described three governance options Deloitte proposed for the Red River Valley Water Supply Project and related systems, including an Option 3 that would transfer ownership and operation to the State Water Commission. He told the board bonding could close a portion of the gap but would be a "heavy lift" requiring legislative support and careful structuring. The DWR said it is drafting implementation recommendations for presentation at the September Water Topics Overview Committee meeting.
