Coastal Commission approval -- one less obstacle to VWD receiving desalinated water

SAN MARCOS, CA, Nov. 22, 2007 -- After identifying it as a crucial reliable future source in its Integrated Resource Plan, negotiating an agreement with Poseidon Resources for delivery, and participating in a Coastal Commission meeting partially clearing the way for construction of the Carlsbad plant, Vallecitos Water District (VWD) receiving desalinated water by 2010 has come that much closer to reality.

For more than 50 years the District has relied on imported water supplies. As those sources become more limited due to drought conditions and environmental regulations, desalination became a viable, more reliable solution.

To offer support of the drought-proof alternative, VWD Board of Directors and management attended the Coastal Commission hearing. Also present was City of San Marcos Mayor Jim Desmond, who provided testimony to the commission regarding the importance of approving the plant in an effort to meet the growing water demands of the region.

The commissioners' 9-3 approval of the Poseidon Resources proposal will allow for a $300 million plant that could produce 100 million gallons of drinking water a day. Of that out put, VWD will receive 7,500 acre-feet (one acre foot equals 325,851 gallons.) annually, representing 37.5 percent of the District's total need of 20,000 acre-feet per year.

Highlights of the Vallecitos Purchase Agreement include:
• Vallecitos will receive 7,500 acre-feet per year of drinking water over a 30-year period, with the unilateral option to extend the agreement for two additional 30-year terms.
• Vallecitos' price of water paid to Poseidon will not exceed that which would have been paid for the imported water supply from the San Diego County Water Authority.
• Poseidon will be responsible for all costs and risks associated with the financing, development, construction, and operation of the plant.
• The water will meet or exceed all drinking water regulatory standards under the law, and Vallecitos will never be obligated to accept or pay for water that does not meet the quantity, quality and reliability standards specified in the Agreement.

After receiving California Coastal Commission approval, construction of the Poseidon plant only needs endorsement from the State Lands Commission. It meets December 3 in Sacramento.

Vallecitos Water District is part of The San Diego Desal Partners. The group -- which also includes the City of Carlsbad, Valley Center Municipal Water District, Rincon Del Diablo Municipal Water District, Sweetwater Authority, Rainbow Municipal Water District, Santa Fe Irrigation District, and Olivenhain Municipal Water District -- has banded together and all signed agreements to receive desalinated water and ensure successful project execution.

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