[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6460206,"mediaKeyId","5880460-e9f05ce2c6a4375e4704d727a01de175","parentId",5880460,"title","Harvest Water program nears delivery milestones; pipeline 90% complete, on‑farm reimbursement plan proposed","audioSeconds",1833,"startMs",2197000,"endMs",4030000,"viewUrl","/Search/View?dp=1&key=5880460-e9f05ce2c6a4375e4704d727a01de175&start=2197&end=4030","thumbnailUrl","https://assets.pipeline.soar.com/5880460-e9f05ce2c6a4375e4704d727a01de175/thumbnail_2197000.jpg","articleUrl","/articles/6460206/Sacramento-County/California/Harvest-Water-program-nears-delivery-milestones-pipeline-90-complete-onfarm-reimbursement-plan-proposed","mediaUrl","https://secure.pipeline.soar.com/6460206-8839426f648dd91f95b50a84542e2cfb/orig.mp4?Expires=1775118321&Signature=VaQr6X9JAv~ZVgmVuFVJyOry1VrD52P55hrso6hAJ56ca69fSZ6IraorRnGQSdbO3Oo95fAFNP5LaFd0QYz~GWXhMrgxk0ekTOZFahc77Fa7s~humlhNY3WA4iDLYtcSa7K6qRCfqjUkkmpVOJi8mXsy2RKOuH8fAxWQGP8c1yZ~7JjtxmNx2xnYlKAfoizzNLG3xk4ShNHKXQexdDmGfp5dqQnNg1a94D9pnGwbppqKYGfzgRBqF71dJeTtVtz8R4wFjNN66o-ckWRFrmo6uP~kHzih-4HGovueU~OacbbOzrnssbrl5~A2iVeD88zNDx4rjhvzGGIZaSR5BG6woA__&Key-Pair-Id=KUT5TJCACFTXG","author","County of Sacramento","date","2025-09-25T14:57:03Z","article","District staff on Sept. 24 told the Sacramento Area Sewer District that the Harvest Water capital program has reached major construction milestones, provided a budget update and signaled upcoming board actions on a customer reimbursement framework for on‑farm connections.

Mike Crooks, Harvest Water capital program manager, and Joe Fobor, manager of the APMO program, presented construction progress, program finances and community‑engagement efforts. Crooks said the pipeline network reached about 90% installed and that the program will ultimately include roughly 41 miles of pipeline, a pumping station rated at 105 million gallons per day, and about 120 planned service connections.

Construction progress and local impacts: Crooks showed photos and said 19 miles of roads have been resurfaced to date and 80 culverts replaced as crews complete the pipeline work south of the city of Elk Grove. Key construction milestones included a completed tunnel under a railroad at Sims Road and arrival of vertical turbine pump components and \"pump cans\" that were fabricated off‑site; Crooks said the pump‑can deliveries faced manufacturer quality‑control delays but began arriving this week.

Crooks said the on‑farm connections program (phase 1) has started construction; he said improvements that allow growers to connect district recycled water to existing irrigation systems will be performed by the growers themselves or contractors and that the district intends to reimburse those costs. District staff said they will use the U.S. Department of Agriculture Natural Resources Conservation Service pricing framework (the Environmental Quality Incentives Program, EQIP) to set reimbursement limits, and staff estimated the program’s reimbursement commitment at roughly $14,000,000. Crooks said staff were seeking guidance from the California Department of Industrial Relations about whether prevailing‑wage rules apply to work paid from public funds; staff told the board prevailing‑wage application would determine reimbursement assumptions.

Program budget and funding: Crooks said the Harvest Water program’s total project value remains $597,200,000. Staff reported potential funding in hand or committed of about $416,300,000 and said they are continuing to seek additional state and federal grants to close the gap. Crooks noted a capital‑budget revision presented to the board: staff proposed reducing the capital delivery budget by about $24,000,000 from a previously carried amount of roughly $501,000,000 to a new figure of about $477,000,000 based on current contract and consultant cost projections.

APMO and eco‑plan costs: Joe Fobor described administrative and ecological obligations tied to the program’s eco plan and \"CAPBs\" (conservation agreements). He said the district is the first agency in the state to negotiate certain ecological‑benefit contracts with state regulators and that those commitments — for example, crane habitat and riparian features — carry federal benchmark costs that have risen since 2022. Fobor said the APMO (administration and program management) budget would be adjusted upward by about $24,000,000 from earlier 2022 estimates to reflect inflationary increases in land and practice costs and that staff expect some of that increase could be offset by savings in design and construction or by securing additional grants tied to ecological points.

Community outreach and operations: staff emphasized ongoing coordination with local growers, residents and event operators to reduce construction impacts. Directors pressed staff on field issues Crooks said were being monitored: settlement around valve boxes at on‑farm connection points, warranty and retention practices, and ensuring access for seasonal businesses such as a pumpkin patch and school field trips. Crooks said valve‑box settlement would typically be handled as a warranty item and that contractor warranties extend for a year; retention is generally released at contract completion while warranty obligations remain in force.

Program metrics and next steps: Crooks reported the change‑order rate across active construction contracts at about 3.1% (staff target 5%). Joe Fobor said the district has executed 56 off‑take agreements for recycled water service — representing about 68% of the program’s summer irrigation demand goal — and that upcoming board items will include a customer reimbursement framework for on‑farm improvements, several consultant contract amendments, and eco‑plan procurement activities. Staff asked the board to receive and file the quarterly report; there was no vote on items specific to the report at the meeting.","mediaType","Video","parentTitle","SacSewer - 9/24/2025","oneSentenceSummary","District staff on Sept. 24 told the Sacramento Area Sewer District that the Harvest Water capital program has reached major construction milestones and outlined a proposed reimbursement approach for on‑farm connections.","taxTitle","Sacramento County, California","taxId",2889,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6460210,"Sacramento sewer district: Biogeneration facility meets IRA construction milestone; tax-credit payout range estimated",1884,306000,2190000,"/Search/View?dp=1&key=5880460-e9f05ce2c6a4375e4704d727a01de175&start=306&end=2190","https://assets.pipeline.soar.com/5880460-e9f05ce2c6a4375e4704d727a01de175/thumbnail_306000.jpg","/articles/6460210/Sacramento-County/California/Sacramento-sewer-district-Biogeneration-facility-meets-IRA-construction-milestone-tax-credit-payout-range-estimated","https://secure.pipeline.soar.com/6460210-d9e5695216bb534ba57d7259ab6c376e/orig.mp4?Expires=1775118320&Signature=JzZQOe3BWp8yo~7TMgeCCurmSjPDYNuFRiMFIO3D6ZW1x1aRa1RLBS-MmaqFUdLD8CPlbuCqwoPtA7DMhLBRAtcZ4LuHTH-2a~X1lMF-sgc31PWnZLb8-XHAn34CCbDilkBmRHhLwsdqyy93mISLFMmpLmN5~49HbyOohk89mgB-Sb5wRuzVm2NiV6mPyzsSCl2AV7Bhbpw4z-LFrGY~8D8MrlqZmWEY1y8i~0ARplyY5z9yDmagb9MfImH6SR1IYElBX00wtgrfA~Y0YW6uaUQ8rRm4BsTiWvXNo4OibOHafuBU7Rwzfx0LpjyFnmewEh1RjyQr5w7cKkpfjmFj5w__&Key-Pair-Id=KUT5TJCACFTXG","The Sacramento Area Sewer District on Sept. 24 received an update on the Biogeneration Facility project, which staff said has begun construction and met the milestone required to qualify for direct-payment tax credits created by the Inflation Reduction Act of 2022.

The project — referred to in staff materials as \"Biogen\" — is a renewable-energy combined-heat-and-power system that staff told the board will include about 13.4 megawatts of installed capacity delivered by four 2.6-megawatt internal-combustion engines and one 2.8-megawatt fuel cell, with future hydrogen-production capability. Construction is being delivered under a design‑build contract with Ameresco, and most major systems and many components are on site or in local storage, staff said.

Steve Nabozick, the district project lead who presented the update, told the board the district’s tax adviser has provided a favorable position on project eligibility under Internal Revenue Code section 48 and the Inflation Reduction Act (IRA). \"We've met the beginning of construction milestone,\" Nabozick said, adding that meeting prevailing‑wage and apprenticeship requirements and documenting domestic content will be critical to maximizing the credit payout.

Why it matters: staff estimated total capital expenditures at about $150,000,000 and said the eligible cost base for the IRA credit typically falls in the 70–85% range for similar combined-heat-and-power projects. Using that eligible-cost range, and depending on whether prevailing‑wage and domestic‑content tests are met, staff presented an expected tax-credit range of roughly $28,000,000 to $51,000,000. The district is treating prevailing‑wage and domestic‑content compliance as high priorities because the IRA multiplies the credit base when those requirements are met.

Funding details and other incentives: Nabozick also described state Self‑Generation Incentive Program (SGIP) funding that applies to the fuel cell portion of the project. The district’s estimate for SGIP payout to the project was about $4,300,000, broken down in staff slides as $2 per watt for the first megawatt, $1.50 per watt for the second megawatt, and $1 per watt for the remaining 0.8 megawatts of the 2.8‑MW fuel cell. SGIP payments would be split: roughly half at commissioning and the remainder over a five‑year performance period; staff said a third‑party data collector will be required and estimated its cost at about $50,000 over the performance term.

Contract terms and risk allocation: Nabozick said Ameresco’s design‑build contract includes provisions tying contract incentives and penalties to IRA outcomes and compliance obligations. In staff materials he noted Ameresco pays the district $2,000,000 in liquidated damages unless the 40% credit outcome is achieved, in which case the district would pay Ameresco a $2,000,000 IRA bonus. \"If they hit their targets, they're going to get $2,000,000; if they don't, they'll be billed $2,000,000,\" a director summarized during questions; Nabozick confirmed that structure.

Construction update and subsurface conditions: staff reported the pile foundations are complete, fuel‑cell equipment has been received on site, and substantial preparatory work for the fuel‑cell pad has been finished. The project encountered unexpected liquefiable soils during subsurface exploration, which required deep foundations and led to an increased change‑order allowance the board approved earlier in the meeting as part of the consent calendar. Nabozick described completed hot‑water system modifications and piping work required to change how heat flows between the Sacramento Municipal Utility District (SMUD) source and the digesters once Biogen is commissioned.

Domestic content and prevailing wage: Nabozick described domestic‑content rules (staff: structural steel must be 100% domestic; manufactured products show 40% domestic content) and said Ameresco made many early equipment purchases. Staff and the district’s tax adviser (Ernst & Young) are compiling documentation to support domestic‑content claims and to demonstrate compliance with prevailing‑wage and apprenticeship obligations.

Board questions and next steps: directors asked for clarification on the IRA matrix, the range in outcomes tied to domestic content and prevailing wage, whether the contractual structure with Ameresco is standard, and how federal rule changes might affect the district. Nabozick said the district has \"met the beginning of construction milestone\" and that, based on current tax‑adviser guidance, the district has not been told of changes that would put the project at risk. He said staff will continue to monitor federal rulemaking and that the district has engaged a tax adviser to minimize risk through documentation and contract terms.

No board action requested: staff described this item as an update and asked the board to receive and file the information. Earlier, the board approved consent calendar items 1–3, which staff said included an increase to a change‑order allowance related to the project; that consent motion passed unanimously by the members present.

The district will continue documenting domestic content and prevailing‑wage compliance, complete remaining foundations and pads in the balance‑of‑plant area, and proceed with equipment installation and commissioning activities in the coming months.","The Sacramento Area Sewer District on Sept. 24 received an update on the Biogeneration Facility project, which staff said has begun construction and met the milestone required to qualify for direct-payment tax credits created by the Inflation Reduction Act of 2022.","actionData","errors"]

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Harvest Water program nears delivery milestones; pipeline 90% complete, on‑farm reimbursement plan proposed

Sacramento sewer district: Biogeneration facility meets IRA construction milestone; tax-credit payout range estimated