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P.L. 566 Watershed Benefits. State Association of Kansas Watersheds 57 th Annual Meeting January 24-25, 2008. Paul J. Gallagher Agricultural Economist Salina, Kansas www.ks.nrcs.usda.gov paul.gallagher@ks.usda.gov. USDA is an equal opportunity provider and employer. Discussion Items.
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P.L. 566 Watershed Benefits State Association of Kansas Watersheds 57th Annual Meeting January 24-25, 2008 Paul J. Gallagher Agricultural Economist Salina, Kansas www.ks.nrcs.usda.gov paul.gallagher@ks.usda.gov USDA is an equal opportunity provider and employer.
Discussion Items • P.L. 566 Watershed Planning • Federal Objective • Purpose • Two Main Points • Benefits & Costs • Guidelines • Measuring Benefits • Costs • Plan Selection • Kansas Watersheds • PL-566 Projects • Benefits & Costs • Kansas Funding
P.L. 566 Watershed PlanningFederal Objective To contribute to national economic development consistent with protecting the nation’s environment • Requires the development of physically, environmentally, socially and economically sound plan of improvements
P.L. 566 Watershed PlanningPlan Purposes • Preventing damage from erosion, floodwater, and sediment • Furthering the conservation, development, utilization, and disposal of water • Furthering the conservation and proper utilization of land
P.L. 566 Watershed PlanningTwo Main Points • Locally Led Process: • Identify resource concerns/problems and specify opportunities • Identify goals and objectives of the plan • Formulate alternatives (with NRCS assistance) • Accept or reject the final plan • Implement approved plan (with NRCS assistance)
P.L. 566 Watershed PlanningTwo Main Points • Alternatives formulated in consideration of four criteria: • Completeness • Meets goals and objectives and is consistent with NRCS conservation policy • Effectiveness • Alleviates specified problems & achieves specified opportunities • Efficiency • Most cost-efficient way to alleviate problems & achieve specified opportunities • Acceptability • By state and local entities and the public • Compatible with existing laws, regulations and public policy
P.L. 566 Watershed Planning Evaluating Alternatives Benefits & Costs
P.L. 566 Watershed PlanningBenefit & Costs Required Guidance • The 1954 Statute (and Amendments) • NRCS National Watershed Manual • Economic and Environmental Principles and Guidelines for Water and Related Land Resources • NRCS Water Resources Handbook for Economics
P.L. 566 Watershed PlanningMeasuring Benefits 2 Basic Benefit Categories • Flood Reduction Benefits • Agricultural e.g. crop & pasture; erosion • Non-Agricultural e.g. road & bridge; urban • Non-Flood Related Benefits • Agricultural e.g. stock water • Non-Agricultural e.g. recreation; municipal & industrial water supply
P.L. 566 Watershed PlanningMeasuring Benefits • Without Project Condition • Most likely condition expected to exist over the planning period • Provides the baseline for estimating benefits associated with each alternative • With Project Condition • Condition expected to exist with each alternative plan under consideration • Difference Between the Two Conditions = Benefits
P.L. 566 Watershed PlanningMeasuring Benefits People Needed • Economist • Hydrologist • Resource Conservationist • Agronomist • Engineer • Geologist • Biologist • Soil Scientist • Other Professionals
P.L. 566 Watershed PlanningMeasuring Benefits Identifying Beneficiaries • Flood reduction area • Non-flood beneficiaries
P.L. 566 Watershed PlanningMeasuring Benefits Data Sources • Land use inventories • Sediment/erosion surveys • Research past flood damages • Field interviews (producers, county officials, etc.) • Universities • Other Gov. Agencies • Water Supply/ Recreation studies
P.L. 566 Watershed PlanningBenefit Categories Some benefit categories in existing Kansas P.L. 566 Plans:
P.L. 566 Watershed PlanningBenefit Categories Crop & Pasture Kinds of Benefits • Increased crop yields • Reduction in production costs Evaluation Components • Cropping patterns • Prices • Seasonal occurrence of floods • Crop yields • Livestock production • etc.
P.L. 566 Watershed PlanningRecent Trends Surge in Crop Prices Bolster Crop & Pasture Benefits Price Index (1978=100) /a /a Index of annual wheat, corn, soybean prices received by Kansas farmers Price source: Kansas Agricultural Statistics
P.L. 566 Watershed PlanningBenefit Categories Road Kinds of Benefits • Reduced: • Debris/sediment removal • Erosion of shoulders and embankment • Washout of road surface • Damage to fill, culverts, etc. Evaluation Components • Location & classification roads • Flood stage at which damage begins • Damage information from past flood events • Estimates of flood damage from engineers and geologists
P.L. 566 Watershed PlanningBenefit Categories Bridge Kinds of Benefits • Prevent bridge washout • Prot. abutments, etc • Reduced debris and sediment removal Evaluation Components • Location & classification • Flood stage when damage begins • Stage when failure is likely • Value of bridge • Damage caused by past floods • Est. of damage from engineers/geologists
P.L. 566 Watershed PlanningBenefit Categories Recreation Kinds of Benefits • Public’s willingness to pay for outdoor recreation and associated fish and wildlife enhancement created (as a purpose) by the project Evaluation Components • Estimate recreation resource • Forecast potential recreation use without project • Forecast recreation use with project • Estimate value of use with project
P.L. 566 Watershed PlanningBenefit Categories Municipal & Industrial Water Supply Kinds of Benefits • Value of the water Evaluation Components • Identify existing water supply needs • Forecast future waters supply needs • Identify most likely alternatives to meet those needs
P.L. 566 Watershed PlanningBenefit Categories • Other Agriculture • e.g. fences; stored grain • Other Direct • e.g. utilities • Indirect • e.g. closed roads • Erosion • e.g. scour; gully, sheet/rill; ephemeral • Deposition • Urban
P.L. 566 Watershed PlanningMeasuring Benefits Benefits • Average Annual Basis • 10 Storm Frequencies
P.L. 566 Watershed PlanningCosts • Construction • Design/Engineering • Project Administration • Land Acquisition
P.L. 566 Watershed PlanningCosts Annualized Costs • Total installation cost (amortized) plus annual operation and maintenance cost Example: A project with a design life of 100 years costs $3 million to install. Interest rate at 4 7/8%. ($3 million)(.049)+($3,000 O&M) = $150,000 Annualized Cost
P.L. 566 Watershed PlanningPlan Selection Alternative Selected Will Be: • The National Economic Development (NED) Alternative • Maximizes net national economic development benefits, consistent with the federal objective • Net benefits equal to, or greater than zero
P.L. 566 Watershed PlanningPlan Selection National Economic Development (NED) Plan
Kansas P.L. 566 Watersheds • 63 authorized projects • 44 completed • 19 active • 969 dams planned • 783 completed • 186 remaining • 517 long term contracts • 356 completed • 161 remaining
Kansas P.L. 566 WatershedsAnnual Benefits - $44.6 Million 39% e.g.: Road & Bridge 19% e.g.: Crop & Pasture; Fences; Floodplain scour 22% 20% e.g.: Water Supply; Recreation e.g.: Stock water; Gully erosion
Installed P.L. 566 Watershed DamsEstimated Annual Benefits & Costs* Millions Dams: 266 Dams: 214 Dams: 303 * 2007 dollars ** Includes 6 dams in Cong. Dist. 3
Planned P.L. 566 Watershed DamsEstimated Annual Benefits & Costs* Millions Dams: 4 Dams: 44 Dams: 138 * 2007 dollars
Kansas P.L. 566 Watersheds Congressional Funding Millions * Prior year funds provided to close-out existing projects
Paul Gallagher Economist, Water Resources Planning Staff Natural Resources Conservation Service 760 South Broadway Salina, Kansas 67401 785-823-4517 email: paul.gallagher@ks.usda.gov
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