Memorandum
Date: November 18, 2025
To: The Honorable Eddie Crandell, Chair, Lake County Sanitation Board of Directors
From: Robin Borre, Special Districts Administrator
Subject: (Sitting as the Lake County Sanitation District Board of Directors) Approve Amendment No. 4 to the Joint Operating Agreement Southeast Geysers Effluent Pipeline Project and the Clear Lake Water Supply Agreement and authorize the Chair to sign
Executive Summary:
Lake County Special Districts (LCSD) has partnered with Geysers Power Company, L.L.C. and Northern California Power Agency (collectively the Steam Suppliers) since 1995. Together we have built major infrastructure that includes reservoirs at both the Northwest (NWWTP) and Southeast (SEWWTP) Wastewater Treatment Plants, pump stations, a lake intake structure and miles of pipelines that run from NWWTP to SEWWTP to the Middletown Wastewater Treatment Plant and up to The Geysers steamfields in Lake and Sonoma Counties. These improvements that were completed at least 25 years ago totaled over $75.5 million dollars. These were shared costs between the parties of the agreement. Capital and infrastructure improvements as well as operations and maintenance costs for this infrastructure have also been shared by the parties.
This successful partnership has proven to be very beneficial to both the County and the Steam Suppliers at The Geysers. LCSD values this partnership. All parties work collaboratively to ensure LCSD effluent is disposed of in an economical and environmentally conscious manner. The disposal of the effluent via Southeast Geysers Effluent Pipeline (SEGEP) partnership solves both LCSD regulatory requirements and aids in the production of steam for clean and renewable geothermal energy. LCSD cannot currently discharge effluent into a water way and would otherwise have to land apply all effluent at the wastewater plants. Land application is problematic due to the volumes of discharge particularly during the wet months, that cannot be land applied within a few days of rain. LCSD does not have the storage capacity at the plants to hold the effluent for weeks or even months while the rainy season passes. By avoiding land application of treated wastewater, a discharge to The Geysers steamfields protects the water quality of Clear Lake. Additionally, the sprinkler fields have fallen into irreparable disarray and would need to be replaced at a significant expense to LCSD. The discharge through the SEGEP project has been a win-win partnership that truly shows what can be accomplished with Public-Private Partnerships.
Prior to the SEGEP project, Clear Lake water quality suffered from hydraulic overloading of wastewater systems that discharged into the Lake. This problem has been addressed by the SEGEP project, resulting in valuable water quality improvements for drinking water systems that use Lake water, and for the wildlife and recreation values of the Lake that are key to the local economy. In this way, the recycling system is also protecting the outflow of Clear Lake.
Geothermal energy from The Geysers is a critical renewable source that helps stabilize California’s electric grid because of its baseload generation character. And, through its reduction in carbon emissions, geothermal from The Geysers is performing a significant role in addressing climate change.
Today, representing a model of strategically using water recycling to address local environmental problems, the SEGEP project collects effluent from a total of four treatment plants serving 22,000 people and 360 businesses in ten Lake County communities. This represents 85% of all effluent produced in the County with SEGEP providing a long-term wastewater disposal/recycling solution for ten Lake County communities.
Partnering under a 25-year commitment, LCSD and Steam Suppliers work together to responsibly manage SEGEP’s maintenance costs and operating expenses while working to best optimize the system overall. To date, this includes adding solar, business process automation and innovation strategically.
Through teamwork, the award-winning SEGEP project continues to successfully provide Lake County communities with a responsible disposal method while sustaining renewable geothermal power from The Geysers.
In Lake County, operations at The Geysers provide substantial long-term support to the local economy through wages, the purchase of supplies and services, $6.76 million annually in property taxes and significant geothermal royalties. Collectively, Steam Suppliers employ approximately 250 Lake County residents on a full-time basis as well as about 150 full-time equivalent local contractors.
The Geysers Steam Suppliers continue to be dedicated to the Lake County established oversight committees: The Geothermal Advisory Committee (meets quarterly), Seismic Monitoring Advisory Committee (meets bi-annually) and The Geysers Air Monitoring Program (meets quarterly).
The Steam Suppliers have actively engaged for years to donate and volunteer locally. They remain committed to collaboratively working with neighbors, stakeholders and interest groups to build strong ties and long-term relationships. Through contributions to community-based non-profit organizations and schools and by supporting vital philanthropic efforts, The Geysers has proven its commitment to continuous investment in Lake County.
The current Joint Operating Agreement with the Steam Suppliers and the Clear Lake Water Supply Agreement (for Makeup Water supply) with Yolo County Flood Control District are expiring June 5, 2026, and April 2026 respectively. Amendment 4 (attached) extends the term of the Joint Operating Agreement for another 25 years and the term of the Clear Lake Water Supply Agreement terminates on May 1, 2050.
The key components of Amendment #4 include the following:
S Increased revenue to the Northwest Wastewater Treatment Plant of $8,333.33 a month or $100,000 annually.
S Steam Suppliers will pay all operation and maintenance costs for the Makeup Water intake structure. LCSD will perform the work needed and be reimbursed for all costs.
S Extension of agreement for 25 years to 2050.
The key components of the Clear Lake Water Supply Agreement include the following:
S Pass through agreement allowing steam suppliers to divert water from Clear Lake and use the water in The Geysers’ facilities.
S All costs are paid by Steam Suppliers
S Agreement for 25 years to May 1, 2050
There is no CEQA action needed to approve the agreements extending this partnership.
There are no budget adjustments or augmentation needed to approve these agreements. There is no general fund being used. The operation and maintenance costs of the facilities associated with these agreements are included in our current adopted budget.
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Recommended Action: (Sitting as the Lake County Sanitation District Board of Directors) Approve Amendment No. 4 to the Joint Operating Agreement Southeast Geysers Effluent Pipeline Project and the Clear Lake Water Supply Agreement and authorize the Chair to sign.