Monterey Herald

Explaining Cal Am’s decision to withdraw applicatio­n

- By Rich Svindland Rich Svindland is President of California American Water.

As you may have heard, California American Water recently made the decision to withdraw our applicatio­n for a Coastal Developmen­t Permit for the Monterey Peninsula Water Supply Project desalinati­on source wells with the aim of securing a reliable water supply for our community as quickly as possible. We expect this will result in a couple of months’ delay to the project, and I wanted to explain to you why we made this decision.

After years spent developing this project and making adjustment­s to respond to stakeholde­r concerns, it became obvious that we needed to take more time to address objections raised by the community of Marina — namely that our project would be built in their backyard without them receiving any benefit from it. We have worked with Marina stakeholde­rs in the California Public Utilities Commission process and tried to address concerns in the California Coastal Commission

process, but we want to see if more can be done.

I believe Marina would see both environmen­tal and economic benefits from the desalinati­on project. Specifical­ly, the project’s environmen­tal impact report, prepared by the California Public Utilities Commission and Monterey Bay National Marine Sanctuary, found that the project would help to address harmful seawater intrusion. Our economic impact studies also found that the project will bring $260 million in direct economic output to the region and create nearly 1,800 jobs. Neverthele­ss, we heard loud and clear from the community and Coastal Commission members that these benefits were not enough.

Over the eight years our project has been in developmen­t, we have had many discussion­s with Marina about how they could participat­e, including receiving water from the project or even owning portions of infrastruc­ture. These options remain on the table. But mostly, we want to hear from the city and others if there are constructi­ve ways to build bridges and to bring them on board with this important water solution.

The rate impact for California American Water customers, particular­ly low-income customers, is another area of concern. Last week we proposed to the California Coastal Commission that they condition our approval on an applicatio­n to the California Public Utilities Commission to increase our customer assistance program from a 30% discount for qualifying customers to a 50% discount. Such an increase would make the program by far the most generous of any water utility in the state. We plan to pursue this idea and want to hear from stakeholde­rs if they support this plan or have other ideas.

The Monterey Peninsula needs a replacemen­t supply to the Carmel River. Not only to protect the river and respond to orders from the state, but to ensure there is enough water for long-term economic growth and the developmen­t of affordable housing. Given the complexity of competing interests and need to minimize environmen­tal impacts, we believe we’ve come up with the best possible project. But no project will succeed without community support. In 2013, we had the support of 16 parties including LandWatch, Public Water Now, Planning and Conservati­on League, Surfrider Foundation and the Sierra Club — many of the same groups that oppose the project now. We don’t know if it’s possible to bring those parties back on board, but we feel we owe it to ourselves and our community to try.

We hope the postponed vote will result in a delay of months not years. During the interim period before we reach a solution and begin constructi­on, it will be a challenge to meet demands for water while fulfilling our obligation­s to cut-back on drawing from the Carmel River. However, we are working hard to find ways to manage our limited supplies and avoid rationing. We all knew that without the community coming together to find a solution, the consequenc­es of the Carmel River pumping cease-and-desist order would be felt. These impacts will be felt by businesses and residents alike and will impact the entire region. That is why it is so important we come together now and find a way to advance a solution for our water needs.

The Pure Water Monterey project is an important part of our water supply portfolio, but it does not provide an adequate supply to replace desalinati­on on its own. The focus of that project needs to be ensuring that 3,500-acre-feet is available to help bring our community through in the period before desalinati­on is online.

We appreciate all the support and involvemen­t from business leaders, environmen­tal leaders, our customers, and elected representa­tives to help bring a solution to fruition. We will continue to work with all of you through this interim period and look forward to a final hearing before the Coastal Commission.

Newspapers in English

Newspapers from United States