SAN DIEGO — A bi-national conference held Monday at San Diego State University was aimed at analyzing water resources in the Baja California and San Diego border region where challenges include cross-border pollution and water scarcity, experts said.
While projected cost increases to the proposed Doheny desalination plant drew concern from two South Coast Water District directors at a meeting Wednesday, the majority of the board took the updated analysis in stride and the district continues pursuit of the project.
The bottom line for the average residential customer is that the expected monthly bill increase is now $10 — a 9% hike — rather than the $5 to $7 estimated in a 2017 report. Three members of the five-member board appeared comfortable with the latest estimates.
Bonds from the Carlsbad Desalination Plant and pipeline were upgraded to BBB and given a stable outlook in a new report from Fitch Ratings, affirming the project’s sound management and its ability to provide a stable, reliable source of drinking water to the San Diego region.
As the largest, most technologically advanced and energy-efficient plant of its kind in the nation, the Claude “Bud” Lewis Carlsbad Desalination Plant’s stability stems from an effective collaboration between Poseidon Water and the San Diego County Water Authority.
That partnership will continue under a transfer of ownership from Orion Water Partners to Aberdeen Standard Investments approved Thursday by the Water Authority’s Board of Directors. The transfer – made public in June – will not alter day-to-day operations at the Carlsbad facility or create a fiscal impact to the Water Authority.
The plant will remain governed by terms of the 2012 Water Purchase Agreement between Poseidon Water and the Water Authority. That 30-year agreement requires Poseidon to obtain the Water Authority’s written consent of the transaction and to reimburse the Water Authority for its costs related to consideration of the consent request. Under the WPA, the Water Authority agreed to purchase between 48,000 acre-feet and 56,000 acre-feet of water from the desalination plant each year at a price established by the contract. At the end of the 30-year term the Water Authority can assume facility ownership for $1.
“We are honored that maintaining Poseidon Water as the facility manager was integral to the Water Authority’s approval of the ownership transfer and by the Water Authority’s acknowledgement of our exemplary stewardship of this valuable resource,” said Carlos Riva, CEO of Poseidon Water. “We look forward to working alongside our new partners to continue providing the San Diego region with a climate-resilient drinking water supply and ensuring the plant continues its strong operations.”
Water Authority Board Chair Jim Madaffer said the desalination plant is a valuable asset that provides high-quality water, a hedge against drought and insurance against earthquakes that could disrupt imported water deliveries. “With more than 50 billion gallons of water produced and counting, the Carlsbad plant is a critical part of our region’s infrastructure – and we don’t expect the sale to change that in any way,” he said. “In fact, we anticipate many more years of productive partnering with Poseidon.”
The Carlsbad Desalination Plant has met approximately 10% of the San Diego region’s water needs. The planned construction of new, technologically advanced and environmentally sensitive intake and discharge facilities will further enhance operations.
Plant partners also praised the improved ratings for the desal plant and the associated pipeline by Fitch Ratings, which upgraded bonds from BBB- to BBB based on the plant’s strong operational record, updated financing projections for capital improvements, and Fitch’s expectation that the positive trend in financial and operational performance will continue.
Also this week, Moody’s affirmed its Baa3 rating for the plant and pipeline bonds. When those bonds are refinanced, higher ratings are expected to save ratepayers money by lowering the interest rate paid on the debt.
Since its inception as a public-private partnership, the Carlsbad facility has received numerous national and international awards.
The P3 approach allowed the Water Authority to develop new, capital-intensive, public-serving infrastructure without incurring debt or negatively affecting bond ratings, a fact recognized in 2016 when S&P raised the Water Authority’s credit rating to AAA citing, in part, the successful delivery of the Carlsbad facility.
Carlsbad, Calif. (October 24, 2019) – Bonds from the Carlsbad Desalination Plant and pipeline were upgraded to BBB and given a stable outlook in a new report from Fitch Ratings, affirming the project’s sound management and its ability to provide a stable, reliable source of drinking water to the San Diego region. As the largest, most technologically advanced and energy-efficient plant of its kind in the nation, the Claude “Bud” Lewis Carlsbad Desalination Plant’s stability stems from an effective collaboration between Poseidon Water and the San Diego County Water Authority.
That partnership will continue under a transfer of ownership from Orion Water Partners to Aberdeen Standard Investments approved Thursday by the Water Authority’s Board of Directors. The transfer – made public in June – will not alter day-to-day operations at the Carlsbad facility or create a fiscal impact to the Water Authority.
A recent news release posted on the Voice of OC website was clouded by mischaracterizations of the Claude “Bud” Lewis Carlsbad Desalination Plant, which provides an important source of drinking water for San Diego County and reduces our region’s reliance on the Sacramento-San Joaquin Bay-Delta.
The plant is the result of a historic public-private partnership between the San Diego County Water Authority and Poseidon Water to ensure supply reliability for more than 3 million residents across the region. It helped to ensure that the Water Authority had sufficient water to meet demand during the last drought, and we are confident it will help us weather the next drought … and the one after that.
Kelly Rowe of Costa Mesa stunned the Poseidon underworld when he soundly defeated two-term Orange County Water District board-member Shawn Dewane in the 2018 election. Since 2013, Dewane and OCWD directors Cathy Green, Steve Sheldon, and Denis Bilodeau have fought hard for Poseidon Resources to build a $1 billion ocean desalination plant in Huntington Beach and sign a water purchase agreement with OCWD. Rowe will try to end that obsession by refocusing OCWD’s efforts. The remaining members of Poseidon’s coterie still obsess over Poseidon’s proposed desal deal: buy 56,000 AF of desalinated water every year for 30 years, regardless of need, at 3 or more times the price of imported water sold by the Metropolitan Water District of Southern California (MET) for groundwater basin refills.
San Diego regional water quality regulators today issued a permit for the installation of new, technologically advanced and environmentally sensitive seawater intake and discharge facilities at the Claude “Bud” Lewis Carlsbad Desalination Plant.
The plant – and the new permit – support Gov. Gavin Newsom’s April 29 executive order for California “to think differently and act boldly by developing a comprehensive strategy to build a climate-resilient water system.”
Under the new National Pollution Discharge Elimination System (NPDES) permit, the Carlsbad plant will continue producing about 50 million gallons a day of high-quality, drought-proof drinking water for the region as Poseidon Water and the San Diego County Water Authority develop a permanent, stand-alone seawater intake and associated structures.
The new intake-discharge system is needed for long-term operations of the nation’s largest seawater desalination plant, which started commercial production in December 2015 using water withdrawn from Agua Hedionda Lagoon for once-through cooling at the Encina Power Station. So far, it has produced more than 46 billion gallons of drinking water with reverse osmosis technology.
“The Carlsbad Desalination Plant is an invaluable asset for the state and region that helps us adapt to the changing climate and sustain a $231 billion regional economy,” said Jim Madaffer, chair of the Water Authority’s Board of Directors. “It is the most environmentally sensitive and technologically advanced plant of its kind in the nation – part of our commitment to collaborative projects and integrated water solutions for San Diego and the Southwest.”
The closure of the power station in December 2018 led to temporary intake-discharge operations that will continue while new, stand-alone desal intake-discharge facilities are built. Conversion to stand-alone operations was anticipated in the 2012 Water Purchase Agreement between Poseidon, which owns and operates the desalination plant, and the Water Authority, which purchases the water for regional use. Currently, the plant provides about 10 percent of the region’s water supply.
“We are very thankful to the Regional Board for supporting the environmental enhancements of the Carlsbad project and water supply reliability for San Diego County,” said Poseidon CEO Carlos Riva. “This plant will continue to be a vital regional resource for decades to come and an example of how environmental stewardship can go hand-in-hand with water supply sustainability.”
Peter MacLaggan, senior vice president of project development with Poseidon Water, describes the water quality improvement at the Carlsbad Desalination Plant during a regional water quality control board public hearing in San Diego on May 8, 2019.
With the permit in hand, the transition to the new intake and discharge facilities will be implemented in three phases:
Once permanent operations begin, the Carlsbad Desalination Plant will be the first to comply with the 2015 Ocean Plan Amendment, designed to advance ocean water as a reliable supplement to traditional water supplies while protecting marine life and water quality.
Poseidon is also protecting the coastal environment by taking over responsibility for the preservation of Agua Hedionda Lagoon from NRG. As the lagoon’s steward, Poseidon Water is taking responsibility for ensuring the man-made lagoon continues to realize the life-sustaining benefits of an open connection to the Pacific Ocean through periodic maintenance dredging.
Dredging keeps sand from blocking the flow of ocean water in and out of the lagoon, maintaining its tidal circulation, which is needed to maintain a healthy marine ecosystem, support extensive recreational uses, sustainable aquaculture at Carlsbad Aquafarm, and a white seabass hatchery operated by Hubbs-SeaWorld. Dredging also helps replenish the sand on Carlsbad State Beach, which otherwise would revert to historical cobble-stone, with sand that is relocated from the lagoon to nearby shoreline.
Temporary operations are anticipated to cost about $6.5 million annually, increasing the cost of water from the plant in 2020 by about $135 per acre-foot. Permanent facilities are projected to cost between $66 million and $83 million. The Water Authority is seeking state grant funds to defray some of that cost.
The Water Authority purchases up to 56,000 acre-feet of water from the Carlsbad plant per year – enough to serve approximately 400,000 people annually. The plant is a major component of the Water Authority’s multi-decade strategy to diversify the county’s water supply portfolio and minimize vulnerability to drought or other water supply emergencies.
Poseidon Water, a national leader in the development of water supply and treatment projects using a public-private partnership approach, furthered its commitment to protect and preserve San Diego’s coastal environment by assuming stewardship of the Agua Hedionda Lagoon in Carlsbad.
The Agua Hedionda Lagoon encompasses over 400 acres of marine, estuarine and wetlands habitat teeming with hundreds of fish, invertebrate and bird species. The lagoon has long been home to youth recreation activities, including the YMCA Aquatic Park (affectionately known to its patrons as “Camp H2O”), as well as popular activities for visitors of all ages, such as kayaking, swimming, canoeing and paddle-boarding. As the lagoon’s steward, Poseidon Water is taking responsibility for ensuring the man-made lagoon continues to realize the life-sustaining benefits of an open connection to the Pacific Ocean.
Poseidon Water is ensuring the ongoing vitality of this magnificent estuary through periodic maintenance dredging. Dredging keeps sand from blocking the flow of ocean water in and out of the lagoon, maintaining its tidal circulation, which is needed to maintain a healthy marine ecosystem, support extensive recreational uses, sustainable aquaculture (Carlsbad Aquafarm) and a white seabass fish hatchery (Hubbs-SeaWorld Fish Hatchery). Dredging also helps replenish the sand on Carlsbad State Beach, which otherwise would revert to historical cobble-stone, with sand that is relocated from the lagoon to nearby shoreline, ensuring the local beaches are attractive for local residents and visitors to enjoy.
“The Agua Hedionda Lagoon Foundation has been dedicated to providing direct access to nature while ensuring the environmental protection of the lagoon,” said Lisa Cannon-Rodman, chief executive officer of the Agua Hedionda Lagoon Foundation. “We are thrilled that Poseidon Water will continue in these efforts and can confidently say that the community will continue to experience the splendor of this unique environment for many years to come.”
Some of the uses that make up this unique environment include:
1. Man-Made Marine Estuary – Aqua Hedionda Lagoon is a man-made estuary consisting of 400 acres of inter-tidal wetlands and uplands that are home to a wide variety of fish, invertebrates, animals and birds.
2. Claude “Bud” Lewis Carlsbad Desalination Plant – The Carlsbad Desalination Plant produces over 50 million gallons of high-quality and climate-resilient drinking water each day, serving approximately 10 percent of the region’s water demand.
3. YMCA Aquatic Park – The YMCA Aquatic Park, better known as Camp H2O, is a summer camp geared towards children ages seven to twelve that offers affordable day camp activities including swimming, kayaking, boating and fishing. The camp plays an important role in educating youth about the precious marine environment and the need to preserve the lagoon for future generations.
4. Hubbs-SeaWorld Fish Hatchery – Hubbs-SeaWorld Resources Enhancement and Hatchery Program include a 22,000 square-foot fish hatchery on the lagoon. The Program actively contributes to the restoration of the California white seabass population, adding over 350,000 juveniles annually. Hubbs-SeaWorld has begun to expand its marine restoration activities as a result of additional acreage donated by the Desalination Plant.
5. Recreational Boating – Boating remains one of the most popular lagoon activities for residents and visitors alike. California Water Sports offers expert lessons and rents a variety of boats, including kayaks, canoes and paddleboards to the public.
6. Carlsbad Aquafarm – The lagoon is home to the Carlsbad Aquafarm, Southern California’s only shellfish aquafarm, where over 1.5 million pounds of shellfish are sustainably harvested each year. The farm is a growing contributor to the $1.5 billion U.S. aquafarming industry and the San Diego region’s local economy.
7. Agua Hedionda Lagoon Foundation Discovery Center – Opened in 2006, the Discovery Center offers visitors an opportunity to learn about the lagoon’s native plants and marine life through exhibits and educational programs and hosts more than 8,700 local students each year.
“Agua Hedionda Lagoon plays a key role not just in our environment, but also Carlsbad’s quality of life and economy,” said City of Carlsbad Mayor Matt Hall. “By ensuring the lagoon’s long-term preservation, Poseidon Water has once again demonstrated its commitment to Carlsbad and environmental sustainability.”
The Lagoon was previously maintained by NRG, owner of the now decommissioned Encina Power Station. The Carlsbad Desalination Plant is located on the same site as the Encina Power Station and utilizes the power plant’s historic intake and outfall facilities for the desalination process. As part of its co-location, Poseidon Water has long planned to succeed NRG as the lagoon’s steward.
With the decommissioning of Encina Power Station, the Carlsbad Desalination Plant is modernizing the existing intake facilities to provide include additional environmental enhancements to protect and preserve the marine environment.
“Our location along the shore of the Agua Hedionda Lagoon makes it a critical part of the Carlsbad Desalination Plant’s operations, which enables us to provide San Diego County with more than 50 million gallons of high-quality drinking water every day,” said Carlos Riva, Poseidon Water CEO. “We look forward to taking an even more active role in the protection and preservation of the lagoon so that we can all enjoy its recreational and marine resources now and for generations to come.”
Assuming responsibility for the lagoon is just the latest in Poseidon Water’s long history of environmental stewardship in California, by employing 100 percent carbon neutral desalination technology at its Carlsbad Desalination Plant – making it the first major infrastructure project in California to eliminate its carbon footprint – and committing to do the same at its proposed Huntington Beach Seawater Desalination Plant. These efforts continue to assist communities in becoming water independent and less susceptible to dangerous drought conditions, without any carbon emissions.
San Diego County marked a significant milestone in regional water supply reliability Thursday at the Claude “Bud” Lewis Carlsbad Desalination Plant – the delivery of 40 billion gallons of drinking water during its first three years of commercial operations.
This is enough water to fill 800 million bathtubs, or 1,820 Bellagio Las Vegas fountains.
The plant, which launched its commercial operations in December 2015, provides San Diego County with 50 million gallons of locally-controlled, climate-resilient and high-quality water a day, helping to minimize the region’s vulnerability to droughts.
The Carlsbad Desalination Plant has delivered 40 billion gallons of fresh, clean drinking water during its three years of operation. Photo: Water Authority
Former U.S. Sen. Barbara Boxer, a long-time champion for water reliability projects like the Carlsbad facility, spoke at the third anniversary event on Dec. 13.
“This facility has helped protect public health and safety and the economy during the worst recorded drought in California history,” according to Boxer’s prepared remarks. “Here in California, we need to have a multifaceted water plan that includes conservation, recycling, recharging underground aquifers, and catching water as it falls.
“The Carlsbad Desalination Plant is a model for how desalination should be done in California, and more facilities modeled after Carlsbad are certainly going to be needed,” said Boxer. Boxer said in arid regions like Southern California where most of the population lives along the coast, seawater desalination is the only way to ensure residents’ water needs are met under extreme conditions brought on by climate change.
The Carlsbad desalination facility is the largest, most technologically advanced and energy-efficient desalination plant in the nation. It was made possible through an innovative public-private partnership between Poseidon Water and the San Diego County Water Authority. The plant enhances water supply reliability in the San Diego region by meeting nearly 10 percent of the region’s water demand – or about a quarter of all the water generated in the county.
“We’re just thrilled,” said Sandra Kerl, deputy general manager of the San Diego County Water Authority. “It’s hard to believe it’s been three years and that we’re on the 40 billionth gallon. To have been a part of a project that provides a service that all of us can’t live without is really quite gratifying.”
Desalination is a cornerstone of the Water Authority’s strategies. Regardless of weather conditions, the Carlsbad plant produces a core supply of water day-in and day-out.
Visitors tour the Carlsbad desalination plant during Thursday’s anniversary event. Photo: Water Authority
Since the plant opened, it has also proved to be an educational and inspiring tool for water innovation across the country and throughout the world. Tour groups visit the plant monthly to learn about the plant’s operation and the partnership between Poseidon Water and the Water Authority.
At the Dec. 13 event, participants toasted the success of the plan with glasses filled with fresh, desalinated water from the plant. “A toast to Pacific on Tap and continued water reliability in San Diego County thanks to desalinated water!” said Carlos Riva, CEO of Poseidon Water.
For more information, go to the project website, carlsbaddesal.com, or the Water Authority’s website, sdcwa.org.
The Water News Network is San Diego County’s source for water news and information.
