Treatment Capacity Bank

In May 2000, Regional San formed the Economic Development Treatment Capacity Bank to provide reduced sewer impact fees for local jurisdictions to encourage economic development for industrial, commercial, residential, infill and transit-oriented projects.

The “Bank” was formed from $12.3 million of unused industrial wastewater capacity that Regional San purchased from Lodi Mission Partners (Tri Valley Growers), Campbell Soup, Chinet and Proctor & Gamble in October 1999. This purchase converted to 16,606 equivalent single-family dwellings (ESDs) of credit. Rather than the current rate for an ESD, each “bank” credit costs only $923 per ESD. In April 2001, local jurisdictions began using the reduced Bank credits, which are expected to last 10 years.

The Bank’s goals and objectives include:

• Encouraging economic development within Regional San’s service area by attracting new or expanding existing industrial, commercial or residential development (such as septic tank conversions or low/moderate-income housing with reduced sewer impact fees).
• Allowing jurisdictions to control their own credits, rather than Regional San controlling the credits.
• Recovering Regional San’s $12.3 million cost of purchasing the unused industrial capacity through the sale of the discounted Bank credits.

Jurisdictions must follow these rules:

• Each Bank ESD will cost $923.
• Each jurisdiction may use 15 percent of their total allocation of credits for residential use.
• Each jurisdiction may offer varying discounts; however, each jurisdiction is responsible for ensuring that Regional San receives full payment ($923) per ESD.
• Each jurisdiction may decide how to use credits for public facilities and non-profit agencies.
• Jurisdictions must continue Regional San’s policy and ordinance that state that credits remain with the parcel should the business go bankrupt or leave the jurisdiction.
• Selling and buying of credits is not allowed.
• Jurisdictions cannot “steal” business from another jurisdiction by offering “Bank” credits.
• The Bank will be reconciled yearly.

Economic Development Treatment Capacity Bank

Distribution of Credits (as of March 2005)

Economic Development Bank Contact List