Regional Water Project

Summary

The Regional Water Project (RWP) or Regional Desalinaton Projectis a now defunct desalination project approved on April 5, 2010 by the Marina Coast Water District. The $404,500,000 project represented a 3-way partnership of the Marina Coast Water District (MCWD), Monterey County Water Resources Agency (MCWRA), and the California American Water Company (CalAm). The project sought to replace existing Monterey Peninsula water supplies that are restricted by legal decisions, as well as provide a new water supply for redevelopment of the former Fort Ord. The RWP intended to integrate several water supply sources to meet both existing and future water demand.The project was slated to be implemented in phases and included vertical seawater intake wells, a desalination plant, product water storage and conveyance facilities, and expansions to the existing Seaside Groundwater Basin. Addtionally, the RWP was also intended to develop water supplies from the Salinas River through the expansion of a diversion facility and treatment plant, expand two existing projects: Castroville Seawater Intrusion Project (CSIP) and the Seaside Groundwater Basin Replenishment Project. On January 17, 2012 CalAm withdrew from the project amidst criminal allegations of conflicts of interest.

Background

CalAm utilizes the Carmel River Groundwater Basin as a source of potable water for their customers on the Monterey Peninsula. Unlike other areas of California, Monterey Peninsula does not import water and is dependent on the Carmel River. For years, the company had withdrawn more than the alloted amount, causing damage to the flora and fauna in the area. The State Water Resources Control Board (SWRCB) has issued two cease and desist orders (CDO), the first in 1995 and again in 2009. The restrictions of extraction from the Carmel River Groundwater Basin limited the available water for CalAm customers and was cited as the impetus of RWP.

Project Objective

The overarching objectives of RWP included:

• To meet the requirements of SWRCB Order 95-10;
• Create a drought-proof water supply of 10,500 Acre-feet a year (AFY);
• Reclaim seawater-intruded water in the 180-Foot Aquifer of the Salinas Valley Groundwater Basin (SVGB);
• Improve the hydrologic balance of the SVGB;
• Protect listed species below the San Clemente Dam;
• Minimize effects of an uncertain water supply;

Proposed Location and Layout

Location of service areas

The location for the the project was defined by CalAm service areas, including the Peninsula Cities of Carmel-by-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Sand City, and Seaside, and the unincorporated areas of Pebble Beach, Carmel Valley, and Monterey; the Highway 1 Corridor; the Marina Coast Water District service area, including the former Fort Ord and Marina; the City of Salinas; and the Northern Monterey County rural and urban areas, including Castroville, Prunedale, Moss Landing, and Pajaro.

Location and Layout of Project

The intake mechanisms included five vertical seawater intake wells located on coastal dunes south of the Salinas River and north of Reservation Road. The water taken in by wells would then be transported in a pipeline to a 10-mgd desalination plant on Armstrong Ranch in North Marina. Another, smaller desalination facility was proposed to be built in Sand City.

Proposed Implementation

The RWP was slated to be developed in two phases to ultimately provide up to 25,600 afy to CalAM customers in Carmel, Del Rey Oaks, Monterey, Pacific Grove, Sand City, and Seaside, and the unincorporated areas of Pebble Beach, Carmel Valley, Monterey-Salinas Highway Corridor, and the airport district; MCWD customers in former Fort Ord and Marina; and Northern Monterey County rural and urban areas, including Castroville, Prunedale, Granite Ridge, Moss Landing, and Pajaro.

Phase 1

Phase 1 would meet the immediate needs of Monterey Peninsula, the former Fort Ord, and Marina with 15,200 afy. The first phase would take place over the course of three years and would be centered around the following:

• Water conservation
• Construction of Sand City Desalination Facility
• Construction of Regional Urban Water Augmentation Project (RUWAP), a recycled water distribution system to provide 1,000 afy from Salinas Valley Reclamation Plant (SVRP) to Fort Ord
• Construction of Seaside Basin Aquifer Storage and Recovery (Seaside ASR)
• Construction of Regional Desalination Facility, including the completion of conveyance and several storage facilities

Phase 2

Phase 2 was intended to supply an additional 10,400 afy of water to meet the demand of the service region. The specific components and contributions to the supply of water was not fully understood or outlined at the time of the final EIR and were slated to be determined in the future. CalAm stated "the Phase 2 Project components may require further evaluation of costeffectiveness, technical, and implementation issues, as well as further environmental review". The components for Phase 2 were roughly outlined as:

• Pacific Grove Stormwater Project
• Surface Water Delivery to Urban Users, including the utilization of diversion from Salinas River and surface water treatment plant
• Salinas River Diversion Facility Expansion
• Castroville Seawater Intrusion Project (CSIP) Expansion
• Regional Desalination Facility Expansion
• Seaside Groundwater Basin Replenishment Project
• Salinas Basin Groundwater for North Monterey County

Project Failure and Legal Actions

Inherent Problems

The RWP had problems from the start of the project. The California Public Utilities Commission (CPUC) reviews all applications for private and public utilities. The RWP was submitted for review by the CPUC. The CPUC’s decision-making process consists of semi-judicial hearings where the community is allowed to participate. The RWP was approved despite many flaws that were pointed out by members of the community. Another problem stemmed from the use of diverted water from the Salinas and the Salinas Valley Groundwater Basin (SVGB). Legislation that established the MCWRA prohibits water exportation from the SVGB. The plan for the RWP would violate this and jeopardize the users of Salinas Valley agricultural water. The plans for involvement in the Salinas River was moved from phase 1 of the draft EIR to phase 2 of the final EIR, putting off the use of the water but not eliminating the option.

Legal Action

Steve Collins, the former director of Monterey County Water Resources Agency was charged with a conflict of interest in the RWP for his work with RMC Water and Environment as a paid consultant while also holding public office. Collins recused himself voting on a $28 million contract with RMC in in February 2011. The recusal indicated a financial conflict of interest and illicit financial involvement in the RCM contract or the RWP by Collins. Collins was charged with 42 felony and misdemeanor counts, including the felony violation of Government Code Section 1090 And the Political Reform Act. Government Code Section 1090 states criminalizes conflict of interest "Members of the Legislature, state, county, district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity" Similarly, the Political Reform act "Prohibits public officials from participating in governmental decisions affecting their "financial interests" and requires certain public officials to disclose certain assets and income"

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