October 2009 - South Tahoe Public Utility District

has been performed for future projects of this Master Plan, therefore an estimate of the potential
revenue is not provided. No regulatory permit issues are anticipated with the implementation of
this future project.
Implementation of this project may compromise the system‟s reliability with regard to distribution
of a known volume of recycled water if users refuse to pay. Additionally, the District‟s flexibility
with regard to maintaining a consumer base of multiple users could be impacted. On the other
hand, by receiving income for the use of recycled water, the District would have increased
flexibility with regard to selecting and implementing system improvements.
13.5.2 Biosolids Composting
This project could include a future facility on the Diamond Valley Ranch that could enable the
District to compost the biosoilds generated from its South Lake Tahoe wastewater treatment
plant. The application of biosoilds to land is subject to environmental regulations. The long
term disposal of the District‟s biosoilds is primarily an issue related to treatment plant
operations. By including this project as a portion of the Master Plan the District reserves the
opportunity to implement it; however, additional CEQA environmental documentation will be
required.
13.5.3 Become a Water Rights Buyer/Broker
In this project the District could assume the role of a water rights buyer/broker with the ability to
acquire surface water right entitlements for support of Indian Creek Reservoir, and remove or
maintain land in production. The District already owns considerable freshwater rights that
represent real value. The District could also become a water rights seller or leaser to receive
benefit from the inherent value of the water rights it owns.
13.5.4 Power Generation
Electrical power generation was raised as a potential concept for evaluation during the initial
phase of Master Plan development. Analysis was conducted to establish and evaluate potential
sites for power generation facilities, the use of the electrical power supply generated, and the
methods, feasibility, usefulness, overall cost and payback period for implementation.
Two general alternatives were developed regarding the site for power generation. One
alternative included multiple power stations along the length of the C-Line located such that
pipeline pressures remained less than 150 psi. The second alternative consisted of a single
power generation station located near the terminus of the C-Line. This alternative resulted in
pipeline pressures exceeding 900 psi. Both alternatives were based on the use of turbines for
power generation.
Two general alternatives were developed regarding the use of the power generated. The first
called for selling the power generated to the Sierra Pacific Power Company and feeding the
generated power into the local electrical power supply grid. The other alternative called for
District self-use of the power generated. In the second alternative electrical power conductors
could be installed with C-Line replacement construction. The conductors could carry the
generated power back to the Tahoe Basin for District use to offset electrical power costs for
operation of the pump stations for the A-Line and B-Line.
An economic analysis was conducted of the alternatives developed. The power generation
alternative was rejected because of numerous factors. The primary reason for the rejection was
that the payback period exceeded 30 years. That is, it would require more than 30 years for the
South Tahoe Public Utility District
Recycled Water Facilities Master Plan - October 2009 Page 13-96