AWWA SOURCES55682

The City of San Diego's Beneficial Reuse Project has developed a plan to better utilize recycled water by expanding the existing recycled water system and serving large, cost effective customers. A new approach was needed to significantly increase recycled water demands to meet aggressive EPA reuse goals. A key challenge was providing new economic incentives for recycled water use, while at the same time investing in the significant infrastructure needed to deliver this valuable resource. In addition, stakeholder opinions needed to be factored into the approach. This paper presents the innovative free market approach used by the City of San Diego (City) and Powell/PBS&J team to expand the North City Reclamation Distribution System. The paper includes a background of the City's System, a summary of the market assessment, the development of the 2003 and 2010 Systems, and the cost of service study analysis performed. The paper concludes with an update on the successes and challenges of implementing the Beneficial Reuse Study. The Beneficial Reuse Project evolved into a timely free market approach to expanding the City's recycled water system. The first step was to analyze the existing recycled water system, to assess the effort required to connect new customers, and to perform a simplified market assessment update (a study to locate new customers). In the past, the system expansion approaches were directed at connecting every potential customer, regardless of size or cost. Connecting every potential customer requires a significant investment in transmission and distribution systems, and in existing areas - retrofitting irrigation systems. This results in great expense since most agencies currently have limited recycled water infrastructure. The Beneficial Reuse Project altered this approach for the City by focusing on large, single connection customers such as golf courses, large parks, and connections to new developments where the irrigation systems can be designed for recycled water from the start. In effect, a transmission system was laid out to connect the large usage customers. The plan resulted in a significant increase in recycled water usage, in a short time frame, with reduced capital expenditures, and for uses more acceptable to the public. Includes figure.