State water officials warn of multibillion-dollar funding gap, urge bonding and governance changes

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.