Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Special Meeting

7:00 PM, Thursday, May 10, 2018

City Council Chambers
Monterey, California

CALL TO ORDER

AGENDA ITEMS

1. Authorize a filing with the CPUC in support of opening a Phase 3 of CPUC proceeding
A.12.04.019 for consideration of the expansion of the Pure Water Monterey project -
Kampe

ADJOURNMENT

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Monterey Peninsula Regional Water Authority Date: May 10, 2018
Agenda Report Item No: 1.

FROM: Chair Bill Kampe

SUBJECT: Authorize a filing with the CPUC in support of opening a Phase 3 of CPUC
proceeding A.12.04.019 for consideration of the expansion of the Pure
Water Monterey project

RECOMMENDATION:

It is recommended that the Water Authority Board approve a joint filing, together with
Monterey One Water, and other parties that may join, to request the CPUC to open a
Phase 3 of CPUC proceeding A.12.04.019 for consideration of the expansion of Pure
Water Monterey capacity to provide an additional 2250 AFY for the peninsula.

DISCUSSION:

MPRWA joined the previously authorized petition to the SWRCB requesting the
addition of parallel milestones for the CDO. This was filed jointly with the Planning and
Conservation League, M1W, and MPWMD.

As a companion action, we are asked to join a motion to the CPUC with M1W, PCL,
and others to request Phase 3 hearings regarding the potential role of Pure Water
Monterey expansion. This filing does not directly affect any action by the CPUC on
their pending decision on a CPCN for the desalination project. The filing would keep the
door open for a potential role for PWM expansion, much as the original PWM project
was considered in Phase 2 of the CPUC proceeding.

ATTACHMENTS:

Petition to SWRCB by Jonas Minton

№06/12
 ATTACHMENT

PETITION
TO MODIFY SWRCB RESOLUTION 2016-0040
May 9, 2018
The Planning and Conservation League, Monterey One Water (formerly the Monterey
Regional Water Pollution Control Agency), the Monterey Peninsula Water Management
District, the Monterey Regional Water Authority, the Marina Coast Water District, Land
Watch Monterey, the Sierra Club, Citizens for Just Water, the Public Trust Alliance, and
Public Water Now (“Moving Parties”) hereby petition the State Water Resources Control
Board (“Board”) to modify the ordering paragraphs of Cease and Desist Order (“CDO”)
(STATE WATER RESOURCES CONTROL BOARD RESOLUTION NO. 2016-0040)
for the purpose of adding parallel milestones relating to the potential expansion of the
Pure Water Monterey (“PWM”) project.
Satisfaction of the proposed parallel (not substitute) milestones by the Board would allow
California American Water Company (“Cal-Am”) to eliminate diversions of Carmel
River water without valid basis of right by the existing CDO deadline of December 31,
2021.

I. Background
The compliance milestones in the CDO were adopted by the Board with the expectation
that the desalination project would be approved and constructed in time to meet the
December 31, 2021 deadline for Cal-Am to cease all unauthorized diversions from the
Carmel River.
The next milestone is California Public Utilities Commission approval of a Certificate of
Public Necessity and Convenience (CPCN) for the desalination project by September 30th
of this year. The September, 2019 milestone is the commencement of construction of the
desalination project.
For a variety of reasons it is possible that the desalination project will not meet those
milestones and potentially fail to afford a replacement water supply to Cal-Am to
substitute for ongoing unauthorized diversions from the Carmel River by the CDO’s final
2021 deadline.
By adding the requested parallel milestones related to expansion of PWM, the Board
would establish an alternative option for Cal-Am to cease all unauthorized diversions by
the 2021 deadline. The Board added a similar parallel milestone related to the initial
PWM project in RESOLUTION NO. 2016-0040 which amended the original CDO as
follows:
2015-2016 CPUC approval of (1) the Water Purchase Agreement for Cal-Am’s purchase
of Pure Water Monterey water, and of (2) construction of the Cal-Am components of the
Pure Water Monterey conveyance facilities, including the Monterey Pipeline and pump
station. December 31, 2016
 ATTACHMENT

2016-2017 Start of construction of the Cal-Am components of the Pure Water Monterey
project, meaning commencement of physical work after issuance of required regulatory
permits and authorizations to begin work. September 30, 2017
Those milestones were met, the PWM construction is well underway and it will provide
Cal-Am with 3,500 acre feet per year (“AFY”) before the December, 2021 deadline.
This petition requests similar parallel milestones for the PWM expansion opportunity.
This would facilitate the option of Cal-Am completing the substitution of all
unauthorized Carmel River diversions as a result of water developed by the PWM
expansion project, inclusive of the initial 3,500 AFY project plus the 2,250 AFY
(minimum) expansion.

A. Source Water Availability

Monterey One Water (M1W) and the Monterey Peninsula Water Management District
recently completed an extensive feasibility study concerning the potential for expansion
of the PWM project, the “Preliminary Progress Report on Pure Water Monterey
Expansion,” May 7, 2018 (“Report”). https://mrwpca1-
my.sharepoint.com/:f:/g/personal/alison_mrwpca_com/EowyMUurrutKg7Hf-
ly5BfIBifvfib0ecpw3I05s-K3e9Q?e=2klLwo
A copy of the Report is attached. The Report analyzed key issues including source water,
financial feasibility, the necessary level of environmental review, permitting
requirements relating to the potential project expansion, and the estimated schedule for
PWM expansion.
The Report identifies water sources for Pure Water Monterey expansion:
Winter Wastewater (Winter Water). On November 3, 2015 M1W entered into a contract
titled the Amended and Restated Water Recycling Agreement (“ARWRA”) with the
Monterey County Water Resources Agency (MCWRA). Per Section 4.01(c) of that
Agreement, M1W has the right to use any wastewater that is not used for irrigation
through MCWRA’s Castroville Seawater Intrusion Project (CSIP). For the 20 years of
operation of the Salinas Valley Reclamation Plant, there has consistently been 6,000 to
8,000 AF of water discharged through the outfall to the ocean every year in the winter
months. (Report, p. 27.)
Approximately 47% to 69% of the feed water needed for expansion would come from the
excess winter wastewater currently being discharged to the ocean. (Report, p. 26.) As
discussed in the Report, M1W modeled the availability of this winter wastewater even
assuming a substantial increase in agricultural use of this supply and found that there still
sufficient supply availability for PWM expansion. (Report, pp. 27-28.)
Winter Industrial Wastewater and Storm Water (Pond Return). Per the ARWRA Section
4.01(c), M1W has the right to use any wastewater that is not used for irrigation through
MCWRA’s CSIP system. The Industrial Wastewater is not required to meet MCWRA
demands during the winter. Thus, it would not be diverted to the M1W Salinas Pump
Station but instead, flow to the Salinas Industrial Wastewater Treatment Facility
(SIWTF). Similarly, the storm water from the City of Salinas that is received during the
winter would be diverted to the SIWTF. The combined waters at the ponds would be
returned to M1W in the summer using a new return pump station and pipeline to be
 ATTACHMENT

constructed in 2018-2020 under a storm water grant. (Report, Attachment B.) M1W is
currently negotiating an agreement with the City of Salinas to define how the storage
ponds will be operated and maintained. It is anticipated that M1W and the City of Salinas
will have a Memorandum of Understanding by the end of June 2018 and a full agreement
by the end of September 2018. An important consideration is whether one or more of the
SIWTF ponds would be lined. Depending on the number of ponds lined, approximately
23% to 40% of the feed water needed for expansion would come from the returned
industrial wastewater and storm water. (Report, Attachment B.) If no ponds are lined, the
PWM Expansion Project could still provide up to 2,331AFY and would be expected to
meet the proposed yield of 2,250 AFY. (Report, p. 26.)
Dry Season Allocations of 650 AFY in the months of May through August from MCWRA
(Summer Water). Per the ARWRA Section 4.01.1(d), M1W has the right to 650 AF of
water during May through August as shown in the ARWRA Table 2. This water, like
MCWD’s summer allocation of 300 AFY, is available even if there is not enough
wastewater to meet CSIP irrigation demands. (Report, p. 26.) This water is the water to
be utilized for MCWD’s Phase 1 and Phase 2 landscape irrigation projects, but until build
out of MCWD’s Phase 2 project, it would be available to meet expansion influent water
needs. (Id.)
M1W evaluated the availability of all of its presently available sources of supply for
PWM expansion during each month and found that, even assuming substantial expansion
of agricultural use of winter wastewater, there is sufficient source water for PWM
expansion to produce greater than 2,250 AFY. (See Attachment 1 to this Petition.)
The report only considers existing water to confirm the availability of source water for
the PWM expansion. However, additional new supplies may be available in the future as
well. Per the ARWRA Section 4.01.2, M1W is entitled to one-half the volume of
wastewater flows from areas outside of the M1W’s 2001 boundary provided that M1W
passes those waters through the SVRP or the PWM facilities. M1W is pursuing
expansion of its service area to bring in additional waters in the future.

B. PWM Expansion Schedule

The Report projects that before September 30, 2020 all civil site work can be complete
and all equipment required to expand PWM Facility can be delivered and on-site.
Further, the schedule demonstrates that before September 30, 2021 all construction can
be complete. In fact, the schedule shows completion and start-up of all the increased
capacity facilities much earlier on January 27, 2021.
The Report found that it is feasible to expand the PWM project by an additional 2,250
AFY. Engineering design is already 30% complete and the expansion can be developed
along with the already-approved 3,500 PWM project affording up to 5,750 AFY for Cal-
Am ahead of the end of 2021.
This would allow Cal-Am to terminate all unauthorized diversions from the Carmel River
by the CDO deadline of December 31, 2021. Such option could prove essential if the
desalination project is delayed or not approved.
Therefore, this petition seeks to amend the CDO to add parallel (not substitute)
milestones correlated to progress on expansion of PWM as shown below. These specific
 ATTACHMENT

and readily verifiable alternative milestones would not change the requirement for Cal-
Am to eliminate further diversions of Carmel River water without valid basis of right by
December 31, 2021.

II. Requested Modifications to the CDO

Milestones Shown in Underline
Moving Parties respectfully urge that the milestones set forth in Section 3(b)(v) of the
ordering section of the CDO be amended as follows:
Start of construction of any of the Cal-Am Components of the MSWSP Desalination
Plant, meaning commencement of physical work after issuance of required regulatory
permits and authorization to begin work; or, alternatively, CPUC approval of a Water
Purchase Agreement (or amendment of the existing Water Purchase Agreement
applicable to the PWM Project) for the PWM expansion project (minimum of 2,250
AFY) including information demonstrating availability of source water for the Pure
Water Monterey expansion project to the satisfaction of the CPUC; September, 30, 2019
(1) Drilling activity for at least one MPWSP Desalination Plant source water production
well complete; (2) foundation and structural framing complete for MPWSP Desalination
Plant pretreatment seawater reverse osmosis, and administration buildings at desalination
plant; (3) excavation complete for MPWSP Desalination Plant brine and backwash
storage basins; and (4) 25% of MPWSP Desalination Plant transmission pipelines
installed based on total length, including 100% installation of the “Monterey Pipeline and
other ASR related improvements”; or, alternatively, all civil site work, including concrete
work, underground piping, and site drainage will be complete and all equipment required
for the PWM expansion project will have been delivered and on-site; September 30, 2020
For MPWSP Desalination Plant: (1) 50% of drilling activity complete for source water
production wells based on total number of wells required; (2) mechanical systems for
brine and backwash storage basins complete; (3) construction of filtered water tanks and
finished water tanks complete; (4) 50% of transmission pipelines installed based on total
length; or, alternatively, all construction for PWM expansion project will be complete;
September 30, 2021
Substantial completion of the Cal-Am Components of the MPWSP Desalination Plant,
meaning the Cal-Am Components are sufficiently complete and appropriately permitted
to allow delivery of MPWSP Desalination Plant produced potable water to Cal-Am's
Monterey Main system, eliminating further Cal-Am diversions of Carmel River water
without valid basis of right; or, alternatively, completion of the PWM Project (including
PWM expansion) eliminating further Cal-Am diversions of Carmel River water without
valid basis of right; December 31, 2021
Contact for the petitioners:
Jonas Minton
Senior Water Policy Advisor
Planning and Conservation League
 ATTACHMENT

jminton@pcl.org
cell (916) 719-4049
1107 – 9th Street, Suite 901
Sacramento, CA 95815

Monterey SWRCB petition final May 9, 2018

 ATTACHMENT

Attachment 1
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total
(AFY)
Source Waters Used for PWM
Expansion of 2,250 AFY
Winter 344 317 212 0 0 0 0 0 0 0 339 363 1,574
water
Pond 0 0 127 252 157 113 110 140 78 0 0 0 977
return
water
Summer 0 0 0 0 66 99 109 98 0 0 0 0 371
water
Total 344 317 339 252 223 212 219 238 78 0 339 363 2,922
feed
water
Total 278 256 274 204 180 171 177 192 63 0 275 294 2,367
product
water
% of 100% 100% 62% 0% 0% 0% 0% 0% 0% 0% 100% 100% 53.9%
winter
water
% of 0% 0% 38% 100% 70% 53% 50% 59% 100% 0% 0% 0% 33.4%
pond
return
water
% of 0% 0% 0% 0% 30% 47% 50% 41% 0% 0% 0% 0% 12.7%
summer
water