In a major development for California American Water’s long-sought desalination project, the California Public Utilities Commission has issued a proposed decision recommending approval of the proposal known as the Monterey Peninsula Water Supply Project.

In a 223-page filing, a three-judge panel found that Cal Am’s desal project is the best option available to provide the Monterey Peninsula with a timely replacement water supply to offset the state water board’s Carmel River pumping cutback order and the need to reduce pumping from the adjudicated Seaside basin. Judges Gary Weatherford, Robert Haga and Darcie Houck also recommended certifying the project’s combined environmental review document, arguing that project impacts could either be mitigated or would be outweighed by the project’s benefits.