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The Economists Role:The Economists Role:Water Resource ProgramsWater Resource Programs
Watershed Protection & Flood PreventionWatershed Protection & Flood PreventionWatershed PlanningWatershed PlanningWatershed OperationsWatershed OperationsWatershed RehabilitationWatershed Rehabilitation
Emergency Watershed ProtectionEmergency Watershed Protection
Economist Role: Water Economist Role: Water ResourcesResources
• Fully integrated participant in Fully integrated participant in allall state state watershed planning and operations watershed planning and operations activitiesactivities
• Principal member of the Principal member of the interdisciplinary team for interdisciplinary team for allall watershed watershed projectsprojects
• Responsible for quality and Responsible for quality and defensibility of defensibility of allall watershed project watershed project economic data, evaluation and analysiseconomic data, evaluation and analysis
Economist Role: Water Economist Role: Water ResourcesResources
• Assures compliance with all economic aspects Assures compliance with all economic aspects of statutes, Executive Orders and codified of statutes, Executive Orders and codified rules including applicable state and local rules including applicable state and local regulations. regulations.
• Assures compliance with US Water Resources Assures compliance with US Water Resources Council, Council, Economic and Environmental Economic and Environmental Principles and Guidelines…Principles and Guidelines…..
• Assure compliance with Department and Assure compliance with Department and NRCS policies regarding economic evaluations NRCS policies regarding economic evaluations (NWSM, GM, etc)(NWSM, GM, etc)
Economist Role: Water Economist Role: Water ResourcesResources
• Develops/contributes economic Develops/contributes economic sections of project reports, including sections of project reports, including tables and graphics:tables and graphics:– preliminary investigation reportspreliminary investigation reports– floodplain management studiesfloodplain management studies– watershed planswatershed plans– investigation and analysis reportsinvestigation and analysis reports– environmental assessmentsenvironmental assessments– environmental impact statementsenvironmental impact statements
Economist Role: Water Economist Role: Water ResourcesResources
• Full participant in project related public Full participant in project related public participation activitiesparticipation activities
• Keeps current on water resource issues Keeps current on water resource issues and policies and economic proceduresand policies and economic procedures
• In several states, also responsible for In several states, also responsible for all social science aspects of watershed all social science aspects of watershed planning.planning.
Economist Role:Economist Role:Watershed Surveys and Watershed Surveys and PlanningPlanning• Assists with Plan of Work developmentAssists with Plan of Work development
• Develops economic present and future Develops economic present and future conditioncondition
• Assists in determining project period of Assists in determining project period of analysisanalysis
• Quantifies economic problems and Quantifies economic problems and opportunitiesopportunities
• Assists with formulation of alternativesAssists with formulation of alternatives
Economist Role:Economist Role:Watershed Surveys and Watershed Surveys and PlanningPlanning• Quantifies economic effects of Quantifies economic effects of
alternatives, including:alternatives, including:– Cumulative EffectsCumulative Effects– National Economic Development accountNational Economic Development account– Regional Economic Development account. Regional Economic Development account.
• Assists with public participation and Assists with public participation and interagency coordination interagency coordination
Economist Role:Economist Role:Watershed Surveys and Watershed Surveys and PlanningPlanning• Evaluates socio-economic Evaluates socio-economic
considerationsconsiderations
• Develops economic sections of Develops economic sections of watershed documentswatershed documents
• Assists in the development of the Assists in the development of the Watershed Surveys and Planning Watershed Surveys and Planning databasedatabase
Economist Role:Economist Role:Watershed OperationsWatershed Operations
• Assists in development of Assists in development of conservation practice average costsconservation practice average costs
• Assists with economic aspects of all Assists with economic aspects of all supplemental and revised planssupplemental and revised plans
• Assists with develop and Assists with develop and maintenance of Future maintenance of Future OObligations bligations and Watersheds Benefits databasesand Watersheds Benefits databases
Economist Role:Economist Role:Watershed OperationsWatershed Operations
• Conducts economic evaluations to Conducts economic evaluations to reaffirm project feasibilityreaffirm project feasibility
• Develops revised economic tables for Develops revised economic tables for Completion ReportsCompletion Reports
• Provides economic inputs for Provides economic inputs for remedial work, “additional work,” remedial work, “additional work,” rehabilitation and decommissioning rehabilitation and decommissioning activityactivity
Watershed Program:Authorized Projects by State
PL-566
0102030405060708090
100
AK
AL
AR
AZ
CA
CO CT DE
FL GA HI
IA ID IL IN KS
KY
LA MA
MD
ME MI
MN
MO
MS
MT NC ND NE
NH NJ
NM NV NY
OH
OK
OR
PA PB PR RI
SC SD TN TX UT
VA VT WA WI
WV
WY
STATE
Watershed Program:Watershed Program:Eligible PurposesEligible Purposes
• Flood ControlFlood Control
• Agricultural Water ManagementAgricultural Water Management
• Water SupplyWater Supply
• Water ConservationWater Conservation
• Fish and Wildlife DevelopmentFish and Wildlife Development
• Public RecreationPublic Recreation
• Groundwater RechargeGroundwater Recharge
• Animal Waste ManagementAnimal Waste Management
• Watershed ProtectionWatershed Protection
USDA Watershed Program
NRCS has assistedcommunities address natural resource needs in 2000 Watershed Projects since 1948
Watershed Program Monetary Benefits - 2000
Nation - $ 2 Billion
151
259.2
230.5
576.4
643.2
237.6 Ag flood
Non-Ag flood
Ag benefits
Non-Ag benefits
Off-Site
On-Site
Millions
Watershed Program Congressional Appropriations
0
100000000
200000000
300000000
400000000
500000000
600000000
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
Actual2001
1976 includes transition quarter 1995 deficit reduction (downsizing) 1983 includes $100 million jobs bill 2000 $7.8 million rescission of FA
Watershed ProgramWatershed Program (PL-566 & PL-534)(PL-566 & PL-534)
• The unfunded federal commitment The unfunded federal commitment for the Watershed Program is for the Watershed Program is approximately $ 1.4approximately $ 1.4 billion dollars billion dollars (not including Rehab)(not including Rehab)
Watershed Program Unfunded Federal Commitment
by State (PL-566)(States larger than $5 million Shown)
0
50
100
150
200
Mill
ions
AR AZ
CA
CO CT FL GA HI
IA ID IL IN KS
KY
LA MN
MO
MS
MT
NC
ND
NE
NM NY
OH
OK PA
TN TX VA
WA
WV
WY
STATE
Natural Resources Conservation ServiceNatural Resources Conservation Service
Dams Constructed by Year
0
100
200
300
400
500
600
700
48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99
Year
Nu
mb
er
of
Da
ms
PL-566Pilot/RC&DPL-534
Watershed Rehab:Watershed Rehab:FY 2002 AllocationsFY 2002 Allocations• $10 million $10 million “ “...priority be given only to those structures...priority be given only to those structures
which pose the highest risk to life and which pose the highest risk to life and property”property”
• 80 sponsor applications received & 80 sponsor applications received & rankedranked
$10.9 million; 17 states$10.9 million; 17 states
42 projects involved potential for loss of life42 projects involved potential for loss of life
Watershed Rehab:Watershed Rehab:FY 2002 ProjectsFY 2002 Projects• 43 projects funded43 projects funded• $7.9 million $7.9 million ($4.6 mil. TA; $3.3 mil. FA)($4.6 mil. TA; $3.3 mil. FA)
• 17 states17 states
• FY 2002 deliverables:FY 2002 deliverables:•30 rehabilitation plans initiated (17 states)30 rehabilitation plans initiated (17 states)
•10 rehabilitation plans completed (7 states)10 rehabilitation plans completed (7 states)
•11 rehabilitation designs completed (5 states)11 rehabilitation designs completed (5 states)
•8 rehabilitation projects implemented (4 states)8 rehabilitation projects implemented (4 states)
(Tab 3)(Tab 3)
Rehab Projects To DateRehab Projects To Date
No. DamsNo. Dams
OK (Pilot) FY 1998 2OK (Pilot) FY 1998 2
NM, MS, OH, WI (Pilots)NM, MS, OH, WI (Pilots)
FY 2000 15FY 2000 15
FY2001 19FY2001 19
FY 2002 FY 2002 4343
Total Total 7979
Only 10,853 to go !!!Only 10,853 to go !!!
Rehab Future FundingRehab Future Funding
FY 2002 Farm Bill FY 2002 Farm Bill (millions)(millions)
CCC DiscretionaryCCC Discretionary FundingFunding AuthorityAuthority TotalTotalFY 02 $ 0 $ 0 $ 0FY 02 $ 0 $ 0 $ 0
FY 03 45 FY 03 45 45 90 45 90
FY 04 50 55 105FY 04 50 55 105
FY 05 55 65 120FY 05 55 65 120
FY 06 60 75 135FY 06 60 75 135
FY 07FY 07 6565 85 85 150150
Total 275 325 600Total 275 325 600
Rehab Authorized Funding
0
2040
6080
100
120140
160
2002 2003 2004 2005 2006 2007
Fiscal Year
Aut
horiz
ed F
undi
ng (
$ M
il.)
Mandatory Discretionary
Rehab FY 2003 Funding?Rehab FY 2003 Funding?
• House: $45 million mandatoryHouse: $45 million mandatory
• Senate: $30 million discretionarySenate: $30 million discretionary
• Final: ??? Conference Committee ???Final: ??? Conference Committee ???
CR?? How Long??CR?? How Long??
Watershed Rehab PlanningWatershed Rehab Planning
• Public inputPublic input
• Use NRCS planning process and P & G Use NRCS planning process and P & G procedures (to detail appropriate for procedures (to detail appropriate for project)project)
•NEPA processNEPA process
•Cultural resourcesCultural resources
•Historic preservationHistoric preservation
•Threatened and endangered speciesThreatened and endangered species
•Tribal consultation complianceTribal consultation compliance
Watershed Rehab PlanningWatershed Rehab Planning
• Evaluate alternatives:Evaluate alternatives:•No actionNo action
•Decommissioning (removal)Decommissioning (removal)
•Rehabilitate to current criteriaRehabilitate to current criteria
•NED alternativeNED alternative
•Non-structural (optional)Non-structural (optional)RelocationRelocationFlood proofingFlood proofingEasements/controls on downstream Easements/controls on downstream
developmentdevelopment
Watershed Rehab PlanningWatershed Rehab Planning
• Economists role is critical as a member Economists role is critical as a member of an interdisciplinary planning teamof an interdisciplinary planning team
• Engineers, biologists, planners, and Engineers, biologists, planners, and other specialists must provide the other specialists must provide the economists with the basic data before economists with the basic data before an economic analysis can be completedan economic analysis can be completed
Rehab: Other ActivitiesRehab: Other Activities
• Web pages Web pages •Watershed Operations & Rehabilitation Watershed Operations & Rehabilitation (under “Programs” tab on NRCS webpage)(under “Programs” tab on NRCS webpage)
•Rehab Program Leaders DocumentsRehab Program Leaders Documents
• Rehabilitation of Aging Dams Rehabilitation of Aging Dams (CD Training)(CD Training)
•2000 CD’s distributed2000 CD’s distributed
Watershed Program:Watershed Program:Other ActivitiesOther Activities
• O&M Manual RevisionO&M Manual Revision•Finalize by November, 2002Finalize by November, 2002
• National Watershed Manual RevisionNational Watershed Manual Revision•Next draft by first of 2003Next draft by first of 2003
• National Watershed Coalition Web National Watershed Coalition Web PagePage
•www.watershedcoalition.orgwww.watershedcoalition.org
EMERGENCY WATERSHED EMERGENCY WATERSHED PROTECTION PROGRAMPROTECTION PROGRAM
• Economics: integral part of EWPEconomics: integral part of EWP– Planning considerationsPlanning considerations– Economic DefensibilityEconomic Defensibility– Damage Survey ReportsDamage Survey Reports
EMERGENCY WATERSHED EMERGENCY WATERSHED PROTECTION PROGRAMPROTECTION PROGRAM
Damage Survey ReportDamage Survey Report– Summarizes the planning considerations for Summarizes the planning considerations for
economic, social, and environmental economic, social, and environmental evaluationsevaluations
– Documents the site assessment and evaluation Documents the site assessment and evaluation decisionsdecisions
– One DSR for each EWP treatment siteOne DSR for each EWP treatment site
Approach to complete DSR’s should be Approach to complete DSR’s should be interdisciplinary, interdisciplinary, including including an Economistan Economist
Discussion/Questions?Discussion/Questions?
Bruce A. JulianBruce A. Julian
National Policy Coordinator—Water ResourcesNational Policy Coordinator—Water Resources
202.720.3042202.720.3042
[email protected]@usda.gov