April 6, 2016 / Monterey Herald
Moss Landing Desal Proposals Expect Environmental Certification This Year
By Jim Johnson
Moss Landing >> Representatives from two Moss Landing desalination project proposals have said they expect to release their draft environmental documents this year and hope to have them certified by the end of this year or early next year. That’s about the same time the state Public Utilities Commission has announced it expects to release a draft report for California American Water’s Monterey Peninsula desal project.
Representatives for the People’s Moss Landing Water Desalination Project and Deep Water Desal also indicated they expect to be able to deliver water by some time in 2019.
Last month, the CPUC announced that the draft joint state and federal environmental review document for Cal Am’s North Marina desal project would be released in December, months after it was expected, and certification of the document and final CPUC approval would be delayed into late 2017. In response, company officials said the project’s completion would be delayed about a year as a result, meaning the company’s proposed desal plant may not be ready to deliver water until late 2019 or early 2020.
Peninsula officials have argued the CPUC should do what it can to expedite release of the draft document and speed up the process, noting that such a delay would virtually guarantee a violation of the milestones in a revised Carmel River cutback order still under review by the state water board, and possible water rationing.
That could open the door for a desal project on track to supply water sooner than Cal Am, though Peninsula officials remain resolutely supportive of Cal Am’s proposal. Critics note that Cal Am is apparently well ahead on financing, design and other prep work.
On Wednesday, Moss Landing Harbor District general manager Linda McIntyre said a draft environmental impact report for the People’s Moss Landing Water Desalination Project could be publicly released by July after a months-long review by consultant Aspen Environmental Group of a preliminary draft report submitted on March 25. The district is acting as lead agency for the People’s project state-level environmental review.
At the same time, People’s project attorney David Balch said the goal is to certify a final enivronmental impact report by the end of the year and begin both federal environmental review and permitting shortly after. Balch said the $230 million project, backed by Peninsula businessman Nader Agha and located at the Moss Landing Green Commercial Park, could finish construction and begin delivering water by summer 2019. It envisions using existing intake and outfall infrastructure as part of a plan to produce about 13,400 acre-feet of water per year for use in North Monterey County and on the Peninsula, assuming Cal Am’s project fails.
Balch acknowledged the People’s project still needs to attract public agencies willing to back the project, but said he believes certification of a final environmental review document will be a “reset point.” He noted how far the proposal has progressed in the past two years since Pacific Grove city officials withdrew and the Monterey Peninsula Water Management District chose Deep Water Desal’s proposal as a “back-up” for Cal Am’s project.
“I understand the (Peninsula officials’) support for Cal Am,” he said. “At the end of the day, the politicians won’t choose the water, the water will choose the politicians.”
Also Wednesday, McIntyre said Deep Water Desal in February submitted a revised project “narrative” indicating its environmental review is moving forward. The district signed onto an agreement with Deep Water Desal, environmental review lead agencies the State Lands Commission and Monterey Bay National Marine Sanctuary, and the Coastal Commission.
Deep Water Desal partner David Armanasco said the revision included a relatively minor “realignment” of the project’s intake and discharge components and some relocated buildings at the Dynegy power plant site. Armanasco said he doesn’t know when the project’s draft joint state and federal environmental review document would be publicly released, but anticipated final certification by the end of this year or the beginning of 2017. He declined to discuss either estimated project cost or completion date, though he indicated that supporting scientific studies and environmental review would likely cost around $10 million. He suggested it could take at least two years after final environmental certification to complete the project.
“We are right on schedule,” Armanasco said, noting that the proposal has been in the works for five years.
The water management district has helped fund some of the Deep Water Desal work and holds an option to assume control of the desal operation. The operation proposes drawing water from deep below the surface to produce up to 25,000 acre-feet of water per year for the region from the Peninsula to Salinas and Castroville to Soquel.
Both agree their proposals would be subject to the county’s public ownership ordinance, which the CPUC says doesn’t apply to Cal Am’s project, and can meet the state’s requirement for proving the preferred subsurface intake method is not feasible, allowing ocean intake.
Cal Am spokeswoman Catherine Stedman said “with so much at stake for our customers, we’re focused on what we believe is the enviromentally preferrable, most affordable, and quickly implementable solution.”
March 1, 2016
Three Desal Options for the Monterey Peninsula
By George Riley
Few realize that we have three different desal options, two of which, the People’s Project and DeepWater Desal, would be publicly owned and far less costly than Cal Am’s proposed project. All three are moving ahead. All three have spent millions so far. All three are still far from the finish line. All three have hurdles. All three expect completed state CEQA and federal NEPA environmental evaluations in later 2016. None have coastal development permits for construction.
Cal Am’s water supply project has finally settled on two major supply sources, plus pipeline upgrades. The smaller desal project includes intake, production, discharge and the pipeline to get product water from Marina to Seaside. Cal Am had decided to pursue the smaller 6.4 mgd (million gallons per day or 7,175 acre feet per year) plant and combine it with a new Ground Water Recharge source (3500 acre feet per year) using reclaimed waste and wash water. The pipe upgrades are required on the Monterey Peninsula to handle new water volumes from supplies north of Seaside. Previously most water came from the Carmel River to the south. According to a recent Cal Am update on costs, the 6.4mgd desal project increased from $296 million to $338 million. Scheduled for early 2019, the project is a full two years behind schedule. The cost estimate is very firm since Cal Am recently sought construction bids. Here is the picture:
|Capital Cost||%||*Cal Am est $/acre foot||*MPWMD est $/acre foot|
|Peninsula pipeline upgrades||$110.8M||32.8%||$1941||$2016|
|6.4 mgd desal (mil gal/day)||226.9M||67.2%||$3977||$4131|
*Neither Cal Am nor MPWMD have broken down the costs to show a potential comparison to the other two desal projects at Moss landing. This breakdown is based on the relative costs for the new pipeline and the desal.
DeepWater Desal would produce 25,000 acre feet per year for the Monterey Peninsula and other communities. It offers creative seabed screened ocean intake at a depth of about 100 feet, proven technology, has Moss Landing power plant cooperation, no water rights issues and a traditional brine discharge plan. Completion is targeted for 2019, at a cost of about $2200/acre foot (including estimate for transfer pipeline), but is without commitments for financing and public ownership structure
The People’s Project would produce13,400 acre feet per year for the Monterey Peninsula and north Monterey county. It has existing infrastructure entitlements and prior permits at Moss Landing industrial park, can use proven screened ocean intake or variation of seabed intake, pressurized discharge of brine and no water rights issues. Completion is targeted for 2019, at a cost of about $2200/acre foot (with estimate for transfer pipeline), but without commitments for financing or public ownership structure.
Main Differences / Issues
Cal Am has a protected track within CPUC procedures. Has political support from the Mayors Water Authority. Has commitments and plans for using public financing for about 75% of its costs, but will own 100%. Cal Am has no water rights. Still has problems with its testing protocol for the unproven slant wells, which are also burdened with conflict of interest, interrupted data collection, no continuous pumping test, a mid-course change in modeling design, and delayed release of key data for evaluation. Its location of intake wells interferes with Marina Coast Water District plans for its service area. Slant well extraction from 180 foot aquifer is controversial and may exacerbate sea water intrusion in the Salinas Basin. Cal Am is pressing for speedy decisions that undermine a valid evaluation of the feasibility of the unproven slant wells. The project is in conflict with a County Ordinance requiring public ownership. More recently the excess of freshwater in the test well led to a tentative agreement to send that excess to Castroville for agriculture use. But there are no financing or design plans for delivering this water, which could be a schedule problem.
DeepWater plans to serve a larger regional need, including Salinas, south Santa Cruz County, and to pass the economies of scale savings on to all customers. Its plans are tied closely to another plan for a computer data center that will preheat desal water via cooling of data center operations, thus reducing energy costs. It uses local entrepreneurial development financing with some financial help from Monterey Peninsula Water Management District.
The People’s Project has grandfathered rights for ocean intake and discharge easements and entitlements, existing infrastructure for pipes and storage. The site is zoned properly. In 2002 the California Public Utilites Commision concluded that this Moss Landing site is the most appropriate location for a desal plant. It relies on local entrepreneurial development financing.
Cost Comparison from Extrapolation of Known Date
With such stark differences in cost, only the stubborn will not open their minds to a discussion. Ratepayers deserve that discussion. Will the various politicians and water professionals conduct their own cost comparisons? We must demand that they do so.
Furthermore, two thirds of Cal Am’s local water revenue leaves our community to enrich Cal Am’s parent company American Water Works, their shareholders and other communities. Virtually all of DeepWater and The People’s Project water revenue would stay local. We could have lower cost water and an economic boost with either DeepWater or the People’s Project.