Carlsbad, N.M.-The local wastewater treatment plant has the official go-ahead for constructing a $39.5 million heat-drying system that will turn 32,000 wet tons of sewage sludge generated each year into 7,000 pounds of fertilizer pellets. Officials with the Encina Wastewater Authority, which serves 300,000 residents in Carlsbad, Encinitas, Vista, and San Marcos, reported receiving permit approval from the Carlsbad planning commission and hiring Black & Veatch of Kansas City as engineering consultants. Debbie Biggs, director of environmental compliance, said the installation will also include a new cogeneration facility to produce electrical power using methane from decomposing waste and air quality control equipment upgrading. Biggs said the new system, which is patterned after the facility in Sacramento, will end the costly trucking of biosolids 300 miles for land application in Yuma, Ariz. Completion is planned by the end of 2008.