Cleanup and Abatement Order R6-2026-(PROPOSED) for Lake Tahoe Laundry Works, South Lake Tahoe, El Dorado County

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Stipulated Cleanup and Abatement Order R6-2026-PROPOSED (Stipulated CAO) is a proposed settlement between the Lahontan Water Board with Seven Springs Limited Partnership and Fox Capital Management Corporation (collectively referred to as the "Performing Parties") to resolve violations and responsibilities alleged in Cleanup and Abatement Order No. R6-2026-PROPOSED (2026 Proposed CAO). The Stipulated CAO would be enacted in lieu of the 2026 Proposed CAO. The negotiated settlement focuses on providing receptor protection and a resolution to a litigious process that could extend many years into the future if the 2026 Proposed CAO were adopted.

The Advisory Team's September 18, 2026 communication to the parties indicated that this matter would be moved to the regularly-scheduled Lahontan Water Board meeting on February 10-11, 2027. The Performing Parties, Cleanup Team and the water purveyors continued to finalize the settlement agreements. The notice provided on October 20, 2026 does not provide a date for consideration of the Stipulated CAO, which will be determined by the Advisory Team. Notice will be provided in advance of any hearing. As described in the documents, the Lahontan Water Board may consider the Stipulated CAO for the Lake Tahoe Laundry Works as an alternative to the 2026 Proposed CAO.

On October 20, 2026, the Cleanup Team posted the Stipulated CAO and accompanying documents for public comment prior to consideration by the Lahontan Board. See "Documents available for public review" section for further instructions on how to provide public comment on the Stipulated CAO.

Fast Facts

  • The Stipulated CAO is an alternative to the 2026 Proposed CAO
  • The Stipulated CAO requires:
    • Performing Parties to provide monetary compensation, in the form of $2.6 million and $1.5 million lump sum payments, for municipal wellhead treatment to two local water purveyors who have been impacted by PCE contamination, Lukins Brothers Water Company and Tahoe Keys Property Owners Association.
    • Performing Parties to complete various tasks to evaluate and mitigate vapor intrusion and non-municipal groundwater supply impacts.
    • Performing Parties to submit deliverables for a minimum of 59 years from the date the settlement is approved by the Regional Board.
  • The 2026 Proposed CAO is built from previously issued final and proposed draft CAOs and requires:
    • Cleanup and abatement of discharges of solvent wastes from the Lake Tahoe Laundry Works which threaten public health via vapor intrusion and non-municipal and municipal water supply pathways until threats are no longer present.

Additional History

The Lahontan Water Board previously issued Cleanup and Abatement Order R6T-2017-0022 on May 12, 2017, to investigate and cleanup contamination originating from the Site and evaluate the Site's contribution to the regional PCE groundwater plume. On June 16, 2022, the Cleanup Team provided Cleanup and Abatement Order R6T-2022-Proposed (2022 Proposed CAO) for consideration. The 2022 Proposed CAO required cleanup and abatement of the regional PCE groundwater plume after data did not indicate separation between the Site and the regional PCE groundwater plume. The Cleanup Team circulated the 2022 Proposed CAO and received public comments. On August 17, 2023, the Cleanup Team provided the Markup of R6T-2022-Proposed and the Response to Comment documents (2023 Revised CAO). The 2023 Revised CAO included consideration of all comments received on the 2022 Proposed CAO and, where appropriate, proposed revisions.

Prior to the consideration of the 2023 Revised CAO by the Lahontan Water Board, the “Performing Parties” expressed to Lahontan Water Board Cleanup Team staff that they would like to pursue settlement negotiations regarding the issues raised in the 2023 Revised CAO. These settlement negotiations involve the “Performing Parties”, Lahontan Water Board Cleanup Team, Lukins Brother Water Company, and Tahoe Keys Water Company. On April 3, 2026, the Cleanup Team informed the Advisory Team of a potential stalemate. On April 8, 2026, the Advisory Team indicated that the Lahontan Water Board will consider a cleanup and abatement at the November 4-5, 2026 board meeting. The Advisory Team further requested “markup” documents which show the potential changes between the 2022 Proposed CAO and 2026 Proposed CAO. The Cleanup Team provided the requested documents on June 26, 2026.

Highlighted changes and requirements

The 2026 Proposed CAO has been updated from the 2023 Revised CAO. The 2026 Proposed CAO now includes (1) a new Executive Summary and (2) data collected since 2023. The Executive Summary describes the procedural history of the 2026 Proposed CAO and relevant court rulings after El Dorado County Superior Court’s remand of the 2017 CAO which apply to the Order. The updated data includes additional SCAP Regional PCE Contamination activities, routine groundwater monitoring, and on-Site remediation system operational data. The updated data does not change any interpretations or conclusions with respect to the Site’s contribution to the Regional PCE Contamination as described in the 2022 Proposed CAO.

The 2026 Proposed CAO requires the Dischargers to (1) Develop and Submit a Conceptual Site Model, (2) Prepare and Submit a Sampling and Analysis Plan and Quality Assurance Project Plan, (3) Develop, Submit, and Implement Site Investigation Work Plan(s), (4) Develop, Submit, and Implement a Monitoring Well Installation Work Plan, (5) Develop, Submit, and Implement a Vapor Intrusion Investigation Work Plan, (6) Prepare and Submit a Human Health and Ecological Risk Assessment (HHERA), (7) Conduct Remedial Action, (8) Prepare and Submit a Public Participation Plan, and (9) Conduct Monitoring. These actions are needed to protect human health and the environment, and existing and potential beneficial uses, including the restoration of the drinking water aquifer for human consumption.

Documents available for public review

The public is encouraged to read the publicly available documents and comment on the Stipulated CAO if they have questions or concerns. Lahontan Water Board staff will consider the comments received prior to providing recommendations to the Lahontan Water Board regarding the suitability of the Stipulated CAO as an alternative to the 2026 Proposed CAO.

The Stipulated CAO documents available for public review are:

The Lahontan Water Board will accept written comments on the above documents.

Written Comments must be received by the Lahontan Water Board by November 20, 2026 and may be emailed: lahontan@waterboards.ca.gov. Please use the following format for the subject line: Lake Tahoe Laundry Works - proposed Stipulated CAO Comments - [name of commenter]”.

Previous Cleanup and Abatement Order versions, Comments Received and Responses to Comments

Other Documents and Information

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Brian Grey
Email: Brian.Grey@waterboards.ca.gov
Phone: (530) 542-5421