Presentation SDCWA - Seawater Desalination ProgramSan Diego County Water Authority
Seawater Desalination Program
Status Update
May 31, 2005
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SDCWA Historic and
Projected
Demands
900 000
900.000
�� 000
1990.2004
Hlstorlo Demantls
2005.2030
700 oao
Projected llemantls
(CWA MAIN)
0 850,000
Q�
600.000
I
450.000
d
550.000
500,000
1990 1995 2000 2005 2010 2015
2020 2025 2030
Year
2
submt I{ed may3►larc�
-�
re.5en +c1,1 -i on .
I
450.000
re.5en +c1,1 -i on .
fi ISDCWA Water Supply Portfolio
MWD 85%
2004
Seawater
Recycled Water Desalination Conservation
6% 6 % -76% 10%
Local Surface N
9%
Groundwater
6%
Canal Linini
Transfer
9%
IID Transfer TI %
2020
3
Why Diversify?
• Reduce reliance on single source of supply
■ Increase reliability - multiple supplies to rely
on in drought situations
■ Maximize efficient use of existing resources
FA
Why Seawater Desalination?
• Supply diversification and reliability
• Sufficient peak water treatment plant
capacity
• Drought/Emergency storage
• Improved Water Quality
• Increased price certainty on supply
and treatment
SDCWA Regional Seawater
Desalination Program
■ Project Development:
50 rngd regional project at sbdWAA,"W
Encina Power Station in
Carlsbad
■ Feasibility Study Activity:
• San Onofre
• South County/-njuana
■ External Funding:
• Federal appropriations
• Prop 50 (California DWR)
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Encina Project:
Water Authority Objectives
' Successful Implementation of water supply
diversification in San Diego County
' Implementation of a 50 million gallon per day
Regional Seawater Desalination Plant at the
Encina Power Station in Carlsbad by 2010
' Cooperation and participation of all the primary
stakeholders in a successful outcome
• City of Carlsbad
• Poseidon Resources
• Cabrillo Power
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10
Status of
August 12th Board Direction
[1 Seek Voluntary Access to Encina Power Plant to
complete EIR Studies
[✓ Negotiate Inter - Agency Agreement with Carlsbad
❑ Determine business interests and objectives of
Cabrillo Power as property owner
Initiate business discussions with Poseidon and
Cabrillo for potential partnership structure to
implement a desalination project at Encina
SO
3
Inter- Agency Agreement
Shared Public Policy Goals
• The use of competitive public procurement
processes
• The sharing of project information in a public
forum
• Project specifications by Water Authority
• Project oversight by Water Authority
• Carlsbad support for Water Authority planning
efforts for desalination at San Onofre
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Inter- Agency Agreement
Term
■ 30 Year term from initial water delivery
Quantity
■ Local supply for Carlsbad limited to 5,000 AFY
max
Reliability
• No reliability level guaranteed to Carlsbad
• A one time contribution from Water Authority
to Carlsbad for dry year option transfers
($296,000) 12
R
Inter- Agency Agreement
Price
• Carlsbad to pay full Water Authority cost for
production of desalinated water
• Transportation cost based on estimated capital
and operating cost to convey Carlsbad's local
supply to Carlsbad's local distribution system
• MWD Incentives and other grant funding are
shared proportionally
• All other purchases by Carlsbad beyond local
supply component at regular Water Authority
rates and charges
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Inter - Agency Agreement
_.
Co Aeration in Land Use Goals
■ Carlsbad has long- standing land use and
redevelopment plans and goals for the South
Carlsbad Coastal Redevelopment Area
• Encina Power Station is designated as a
Redevelopment Area
• Enhanced resident and visitor coastal access and
recreational opportunities
• Property tax increment from redevelopment to
finance improvements in coastal area
■ Water Authority recognizes permanence of
Desalination Plant in the Redevelopment Area
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7
Inter - Agency Agreement
■ Components of Economic package:
1. Mitigation and Enhancements of $5.5 million for
specific improvements
■ can be reduced by grants or other funding
2. Economic Support to Redevelopment Area of
$15.29 million
■ Reduced by property tax paid by private owner
is
Next Steps on the Regional Project
• Negotiations with Poseidon and Cabrillo
regarding a potential partnership
structure for a regional desalination
project
• Complete Environmental Impact Report
for Regional Project
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E.