Nature of Activity: The Reno-Sparks Joint Wastewater Treatment Facility (Truckee Meadows Water Reclamation Facility) sought to increase its discharge to the Truckee River. The river has been the focus of contentious water rights disputes for decades. The POTW’s need to increase its discharge became one of several related issues in the dispute. Parts of the dispute were resolved by a water rights agreement that involves some elements of pollutant trading. The agreement allows the plant to increase its discharge while assuring attainment of water quality standards during the dry (low flow) season. The local communities and the Federal government are sharing the costs of purchasing upstream water rights. The purchases will both: 1) reduce nonpoint nutrient loads by precluding the use of the water for agricultural purposes; and 2) mitigate the impact of increased POTW loading by increasing the river’s flow during the dry season.

Environmental Problem: The Truckee River has a variety of water quality problems due to a combination of very low flow and discharges from point and nonpoint sources. There are also endangered species in the River.

Pollutant(s) / Pollution Type(s): Total nitrogen, total phosphorus, total dissolved solids, dissolved oxygen and temperature.

Trade Types: The water rights purchases do not fit easily into the categories of trading types employed in this report, however a point/nonpoint trade may be the most fitting category.

Stage of Implementation: Water rights have been a major issue on the Truckee River for the greater part of this century. Negotiations for this project started in 1994 and an agreement was reached in June, 1996. This agreement resolved several lawsuits that had been ongoing since the early 1980's. As of late 1999, some of the water rights have been bought but completion of the project is not expected for another five years.

Relation to TMDL: A TMDL is in place for total nitrogen, total dissolved solids and dissolved phosphorus in order to control dissolved oxygen. The municipalities had to develop a creative solution in order to both expand the plant and comply with the TMDL.

Number of Potential Participants: The Federal government, the City of Reno, the City of Sparks, Washoe County, the Pyramid Lake Paiute Tribe and various farmers and nonpoint sources are all involved in this program.

Trading Ratios: Explicit trading ratios were not calculated, but the amount of water rights to be purchased is expected to offset the effects of increased loadings from the POTW.

Estimated Cost Savings: Unknown

Available Written Information: A TMDL fact sheet is available from EPA Region 9 and a PBS video "Healing the Water" is available from Water Environment Federation and EPA Region 9. A chronology of events on the Truckee (pre 20 th century and 20 th century) is available from the Nevada Division of Water Planning.

Innovative Aspects: This is the only trading project to employ purchase of water rights as a tool for improving water quality. Another rare, if not unique, aspect is the use of a mediation consulting firm to assist in dispute resolution.

Obstacles: Water rights and water pollution have been contentious issues in the region for many decades. Negotiations sponsored by Senator Reid of Nevada were facilitated by a mediation consulting firm over a two-year period.

Web Sites: Pyramid - Winnemucca Lakes: http://www.epa.gov/surf2/hucs/16050103/

Contact: Cheryl McGovern, Environmental Protection Agency (415) 744-2013, mcgovern.cheryl@epa.gov