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Carlsbad Desalination Plant Shields Region From Megadrought

As the worst drought in 1,200 years grips the West, the Claude “Bud” Lewis Carlsbad Desalination Plant is protecting the San Diego region with 50 million gallons a day of drought-proof water.

Completed in 2015, the plant was built before the period of increasing inflation that’s driving up prices for water infrastructure projects that are just starting. That means the desal plant is safeguarding the region’s economy and quality of life today at a lower cost than it would be to build now.

Why Your Water Bill is Rising

Two things are true about the cost of water in San Diego: the cost of bringing water here and maintaining the system that does it is rising, but the amount of water San Diegans consume is dropping.

In 1990, the average San Diegan used 235 gallons of drinkable water per day, according to the Water Authority’s records. By 2021, San Diegans cut that almost in half to 130 gallons per day. Megadroughts that triggered mandatory water cutbacks triggered better water conservation habits, which stuck.

But while San Diegans are using less, the costs they pay continue to rise. The cost of San Digeo’s water supply is expected to rise anywhere from 5.5 to 10 percent beginning in 2023, with hefty hikes continuing in the years thereafter.

“Long after I’m dust, these supplies will be valuable to this region,” said Gary Arant, who leads the Valley Center Municipal Water District, of the haul of water rights San Diego has locked up. “Right now, we’ve got a lot of water. It’s expensive, but I think the decisions we made were good.”

The Water Authority installed solar panels at three locations in 2011: its Kearny Mesa headquarters and Escondido operations center; and the Twin Oaks Valley Water Treatment Plant. Photo: Vallecitos Water District

Water Authority Greenhouse Gas Emission Tracking Is Climate Leadership Case Study

The Water Utility Climate Alliance has added the Water Authority’s efforts to reduce greenhouse gas emissions to its mitigation case studies library. The case studies provide valuable information and inspiration for greenhouse gas mitigation or sewage thermal energy use projects from concept to implementation for water utilities across the U.S.

Water Authority Senior Water Resources Specialist Goldy Herbon said case studies are developed in partnership with WUCA. Contacts are provided in each case study to facilitate follow-up and enable interested readers to learn more. WUCA recognizes the importance of greenhouse gas mitigation as a key climate adaptation strategy and an issue of climate leadership in the water sector.

“By sharing our efforts and experience in GHG reduction with our peers across the U.S., we hope to set an example for other industries and business sectors, leading to even more mitigation efforts,” said Hebron. “The case studies are by no means an exhaustive list, but it is a great starting point for water utilities exploring the potential of implementing their own GHG mitigation projects. Additionally, WUCA is open to adding more GHG projects to its roster.”

The Water Authority greenhouse gas mitigation case study is on WUCA’s webpage.

The Water Authority installed solar panels at three locations in 2011: its Kearny Mesa headquarters and Escondido operations center; and the Twin Oaks Valley Water Treatment Plant.

Energy generated by the solar power systems reduces the Water Authority’s energy costs as well as GHG emissions, making agency operations more efficient for water ratepayers. Combined, the solar power systems will reduce the agency’s energy expenses by nearly $3 million over 20 years. The solar power systems were installed at no cost to the Water Authority through a 20-year power purchase agreement with CleanCapital.

Carlsbad Desalination Plant also listed

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Claude “Bud” Lewis Carlsbad Desalination Plant. Photo: Poseidon Water

The Claude “Bud” Lewis Carlsbad Desalination Plant, which supplies nearly 10% of San Diego County’s drinking water, is also featured as a case study. The plant’s energy recovery project, part of its High-Energy Efficiency Design, uses state-of-the-art pressure exchanger technology to recover and reuse a significant portion of the energy from the reverse osmosis process.

The Water Authority recently earned Climate Registered gold status from The Climate Registry for verifying and publicly reporting its greenhouse gas emissions. The effort fosters transparency for the agency’s climate mitigation initiatives and will help the Water Authority track and validate emissions reductions in the future.

The Climate Registry operates North America’s largest voluntary registry for greenhouse gas emissions. The Water Authority’s 2019 and 2020 inventories were verified and published in The Climate Registry’s public database in November, earning the agency gold status for both years.

The Water Authority first developed its Climate Action Plan in 2014 and updates it every five years. GHG emissions against a baseline and tracking progress toward State of California goals. Annual GHG inventories are provided to the board of directors.

Unique role in reducing greenhouse gas emissions

The Twin Oaks Reservoir dual solar array total production is roughly 3.6 mWh annually, enough to power 340 homes. Photo: Vallecitos Water District

The Twin Oaks Reservoir dual solar array total production is roughly 3.6 mWh annually, enough to power 340 homes. Photo: Vallecitos Water District

The Water Authority’s GHG mitigation case studies offer crucial examples of progressive GHG mitigation projects at water utilities with lessons learned during implementation. The selection of case studies represents a wide range of project types (pump optimization, wind power, and battery storage) to provide a strong starting point for utilities to learn from each other. Many of the projects can be applied equally to wastewater and stormwater utilities.

Water utilities have a unique role to play in mitigating GHGs due to the high energy usage of the water industry and being a reliable purchaser of energy, as well as being a trusted leader for other industries and business communities. A key objective for WUCA is for the alliance to continue developing practical examples and case studies of climate adaptation and climate mitigation.

The Water Authority works with its 24 member agencies to deliver water affordably and efficiently across San Diego County, and the agency has championed energy efficiency and environmental sustainability for decades.

Credit ratings-strong credit ratings-water supply diversity-Carlsbad Desalination Plant

Credit Agencies Cite Water Authority Diversification, Reliability for Strong Ratings

The three major U.S. rating agencies reported strong credit ratings and credit quality for the San Diego County Water Authority kicking off 2022. Newly released analysis by Fitch Ratings, S&P Global, and Moody’s allow the Water Authority to optimize its debt portfolio and minimize the cost of financing vital water reliability projects.

The ratings reports were issued Jan. 27 in anticipation of Water Authority plans to sell $170 million of bonds the week of Feb. 7. Proceeds will be used to finance a portion of the design, acquisition, and construction of various capital projects.

Strong credit ratings

All three rating agencies highlighted the strength of the Water Authority’s significant investments in supply diversification, which allow the agency to meet demands in its service area despite ongoing drought conditions. The Water Authority’s credit quality is deemed strong, in part because the agency adopted its Long-Range Financing Plan in 2021. S&P said, “the LRFP reflects strong management of the authority’s financial and capital needs balanced with long-term affordability for its member agencies.”

Water Authority General Manager Sandra L. Kerl said, “These credit ratings reflect the importance of the Water Authority’s successful effort to diversify the San Diego region’s water supply portfolio combined with strategic financial practices. Consistent investments are protecting the region’s ratepayers from persistent drought conditions while maintaining a safe and affordable water supply.”

Financial leadership, diversified water supply sources

In affirming their credit ratings, the services cited the Water Authority’s financial leadership, including prudent strategies to manage issues related to COVID-19, its success diversifying water supply sources, its commitment to infrastructure maintenance, and its financial reserves for managing contingencies, among other factors.

  • Fitch Ratings affirmed its AA+ rating and gave a stable outlook. Fitch cited the Water Authority’s “strong purchaser credit quality” and “very low” operating costs, as well as a moderate life cycle ratio “reflecting sustained capital investment.” Fitch noted the Water Authority is through the peak of its capital program but retains price risks related to factors such as costs of future water infrastructure investments.
  • S&P Global Ratings revised its long-term outlook to stable from negative for the Water Authority. At the same time, S&P Global Ratings assigned its AAA long-term rating to the agency’s anticipated $170 million series 2022A water revenue bonds. S&P Global noted Water Authority management has “demonstrated an ability to navigate volatile hydrological cycles through adopting rate increases as needed and building prudent financial reserves and storage to mitigate variability.”
  • Moody’s Investors Service reaffirmed its Aa2 rating and stable outlook. Moody’s said, “The stable outlook reflects the likelihood that the Authority’s satisfactory operating performance will remain stable, supported by strong management practices despite challenges associated with ongoing drought conditions, rising costs, and required capital investments.”

Significant projects completed over the past two decades include the San Vicente Dam Raise, Olivenhain Dam, and Twin Oaks Valley Water Treatment Plant. The Carlsbad Desalination Plant has also been completed as a joint project of the Water Authority and Poseidon Water.

To read the most recent rating agency reports for the Water Authority, go to www.sdcwa.org/wp-content/uploads/2022/01/Credit-Rating-Reports-2022.pdf.

(Editor’s Note: All three rating agencies cited ongoing uncertainty resulting from two member agencies’ applications to detach from the Water Authority. Moody’s said detachment could lead to a credit downgrade, which would increase borrowing costs for critical water reliability projects. S&P Global said detachment could challenge affordability and create long-term political risk for the agency, especially if the process sets a precedent that “members can easily detach from the authority.” Information about detachment is at www.sdcwa.org/member-agencies/lafco-reorganization/.)

Pivoting Operations For A Pandemic

The Claude “Bud” Lewis Carlsbad Desalination Plant (“CDP”), which recently celebrated its five-year anniversary, produces 50 million gallons of fresh water per day. It now accounts for one-third of all water generated in San Diego county.

When the coronavirus pandemic hit in early 2020, the facility needed to completely overhaul its workflow in a matter of weeks. CDP not only managed to cut its staffing, implement remote monitoring, and keep its operators fully sheltered onsite — it also did so without any drops in productivity.

The facility rapidly worked to make its staff as lean as possible — but also while maintaining steady production. Although changes needed to occur quickly, the CDP is subject to a wide range of regulations and compliance requirements: any modifications to operations needed to be collaborated and approved by the San Diego County Water Authority as well as state regulators.

California’s Drought Sparks Innovation in Santa Barbara County

Dry times call for innovative measures, and with California facing its driest year in nearly a century, the privately held water company that supplies Santa Barbara’s Hope Ranch community is floating a unique idea. La Cumbre Mutual Water Company, the affluent community’s supplier, is considering purchasing water produced by an offshore desalination plant contained within a buoy being designed by Ecomerit Technologies.

WaterSmart: Weathering Dry Times in San Diego County

Recent news stories highlighted the investments by the San Diego County Water Authority and its 24 member agencies to create a plentiful water supply for the region, helping to weather dry times like the current drought.

The New York Times, Spectrum News 1, The Wall Street Journal and Wired Magazine are among several news organizations that have reported on the region’s water supply projects, current and future, that ensure the 3.3 million residents of the county won’t be left high and dry during times of drought.

San Diego Has a Dependable Water Supply Thanks to Yearslong Investments

Drinking water from this tap makes San Diego County Water Authority’s General Manager Sandy Kerl smile — and for good reason. Back in the drought of the ’90s, 95% of San Diego’s water came from one source, and they faced 30% cuts for 13 months.

Opinion: Voters Played Role in Marin Municipal Water District Shortage

The welcome arch across Modesto’s main street proclaims, “Water, wealth, contentment, health.”

In essence, water, the first word, directly leads to the following benefits. The same formula applies to Marin. Now it’s the scarcity of water that endangers our county’s ability to enjoy the benefits of wealth, contentment and health.

The entire American West is enduring a drought of epic proportions. The globe’s climate will only get warmer in the next 50 years. Marin is late preparing for that eventuality. Doing so isn’t impossible but it comes with a hefty price tag and can’t happen overnight.

Semi-arid San Diego County has already accomplished what Marin needs to do. They have a sufficient water supply that will last until 2045. Marin may run dry next year.

San Diego’s Water Desalination Efforts Could Get Boost in Federal Funding

Desalination projects in the San Diego area could get millions in federal funding under a bill Rep. Mike Levin introduced Tuesday.

The Desalination Development Act would provide $260 million over five years for desalination projects across the country, including the City of Oceanside’s Mission Basin Groundwater Purification Facility, which converts brackish flows into potable water, said Levin, D-San Juan Capistrano.

It also sets environmental standards for projects that get federal funding, with requirements for energy efficiency, wildlife protection and water conservation.