Friday, September 3, 2010

Sacramento Wastewater Economic Impact Could Be 3 Times Higher

According to the Sac Bee, the Central Valley Regional Water Quality Control Board draft permit requires both microfiltration and the nutrient reduction program.

We knew this was possible, but we did not analyze this scenario in our earlier report since we wanted to stay focused on the ammonia issue and did not want to be accused of exagerrating.  We will update that analysis to fit this draft permit in the next few weeks.  The costs of the microfiltration process are actually higher than the nutrient reduction process, so the total impact will be nearly 3 times what we estimated in our earlier report.

The Bee quotes the SRCSD saying monthly residential rates could go from $20 per month to $62.  Our more conservative estimate would be about $50 per month, but SRCSD is planning on a lot of reserves being required and for this to keep growth very low (thus keeping impact fee revenues way down).  They may be right, I've never tried to sell $2 billion in bonds.  That's a lot of debt, especially for an agency whose current revenues are only about $150 million per year.


  1. What should be scary to MOST people in the Capitol Region is that these regulators seem perfectly content to impose unnecessary treatment on Regional Sanitation, "just because"... Here's what the Regional Board guy said: "We believe it was appropriate to require reductions in ammonia now, as opposed to waiting perhaps years until there is scientific consensus," said Kenneth Landau, assistant executive director of the regional water board. Are you kidding me??? Has anyone looked at the regional economic impacts associated with hook-up fees of $35,000 per new house, and $70,000 per new business; there won't BE any new development for decades. Is this all just subterfuge for the enviros' efforts to stop growth?

  2. It could have been prevented if the government have given importance providing necessary acts to this matter, prior to its current state. However, there are companies that might be able to help on wastewater treatment systems without harming the whole economy.