Life Cycle Cost Analysis
Legislation passed by the North Dakota Legislature in 2017 created NDCC 61-03-21.4 - requiring the State Engineer to: “develop an economic analysis process for water conveyance projects and flood-related projects expected to cost more than one million dollars, and a life cycle analysis process for municipal water supply projects. When the State Water Commission is considering whether to fund a water conveyance project, flood-related project, or water supply project, the State Engineer shall review the economic analysis or life cycle analysis, and inform the State Water Commission of the findings from the analysis and review.”
To comply with the 2017 legislation, the Water Commission contracted with HDR Inc. to assist the agency in drafting Life Cycle Cost Analysis (LCCA) guidelines/processes. This document provides guidance and a process to project sponsors who are pursuing water supply projects that are subject to the completion of LCCA per policy requirements
On December 6, 2019, the Commission adopted policy requiring LCCA on all water supply projects.
Please note – any project sponsors seeking SWC cost-share assistance for water supply projects must complete and submit a LCCA before their cost-share application can be considered.
In addition to the guidance document, the agency and HDR Inc. developed an electronic fillable platform that project sponsors and the agency can use to assist with more efficient assessments of projects. Sponsors are responsible for downloading the most current version of the worksheet for submission of results with their application.