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P.L. 566 Watershed Benefits

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

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  1. 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.

  2. 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

  3. 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

  4. 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

  5. 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)

  6. 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

  7. P.L. 566 Watershed Planning Evaluating Alternatives Benefits & Costs

  8. 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

  9. 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

  10. 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

  11. P.L. 566 Watershed PlanningMeasuring Benefits People Needed • Economist • Hydrologist • Resource Conservationist • Agronomist • Engineer • Geologist • Biologist • Soil Scientist • Other Professionals

  12. P.L. 566 Watershed PlanningMeasuring Benefits Identifying Beneficiaries • Flood reduction area • Non-flood beneficiaries

  13. 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

  14. P.L. 566 Watershed PlanningBenefit Categories Some benefit categories in existing Kansas P.L. 566 Plans:

  15. 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.

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. P.L. 566 Watershed PlanningMeasuring Benefits Benefits • Average Annual Basis • 10 Storm Frequencies

  23. P.L. 566 Watershed PlanningCosts • Construction • Design/Engineering • Project Administration • Land Acquisition

  24. 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

  25. 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

  26. P.L. 566 Watershed PlanningPlan Selection National Economic Development (NED) Plan

  27. 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

  28. Kansas Watersheds Dams Constructed by Year No.

  29. 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

  30. 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

  31. Planned P.L. 566 Watershed DamsEstimated Annual Benefits & Costs* Millions Dams: 4 Dams: 44 Dams: 138 * 2007 dollars

  32. Kansas P.L. 566 Watersheds Congressional Funding Millions * Prior year funds provided to close-out existing projects

  33. 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

  34. Equal Opportunity "The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer."

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