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TAC MPRWA Agenda Packet 02-03-14

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    AgendaMonterey Peninsula Regional Water Authority (MPRWA)

    Technical Advisory Committee (TAC)Regular Meeting

    10:30 AM, Monday, February 3, 2014Council Chamber580 Pacific Street

    Monterey, California

    CALL TO ORDER

    ROLL CALL

    PLEDGE OF ALLEGIANCE

    REPORTS FROM TAC MEMBERS

    PUBLIC COMMENTSPUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on anysubject which is within the jurisdiction of the MPRWA TAC and which is not on the agenda. Anyperson or group desiring to bring an item to the attention of the Committee may do so byaddressing the Committee during Public Comments or by addressing a letter of explanation to:MPRWA TAC, Attn: Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriatestaff person will contact the sender concerning the details.

    APPROVAL OF MINUTES

    1. January 6, 2014

    AGENDA ITEMS

    2. Receive Report, Discuss and Provide Direction on the Ground Water Replenishment(GWR) Schedule, Response to Business Coalition Questions, and Product WaterNegotiations

    3. Receive Report, Discuss and Provide Direction on the Cost Comparison Between theGround Water Replenishment Project and the Monterey Peninsula Water SupplyDesalination Project.

    4. Receive Report, Discuss and Provide Direction on Status of Construction Permits for theMonterey Peninsula Water Supply Project Test Slant Well, Bore Holes, andHydrogeological Analysis

    5. Receive and Discuss a Brine Disposal Report Prepared for the Authority by Interns fromthe Monterey Institute of International Studies (Information Only)

    ADJOURNMENT

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    Created date 01/31/2014 10:23 AM Monday, February 3, 2014

    2

    The Monterey Peninsula Regional Water Authority is committed to include the disabled in all ofits services, programs and activities. For disabled access, dial 711 to use the California RelayService (CRS) to speak to staff at the Monterey City Clerks Office, the Principal Office of theAuthority. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services24 hours a day, 7 days a week. If you require a hearing amplification device to attend ameeting, dial 711 to use CRS to talk to staff at the Monterey City Clerks Office at(831) 646-3935 to coordinate use of a device or for information on an agenda.

    Agenda related writings or documents provided to the MPRWA are available for publicinspection during the meeting or may be requested from the Monterey City Clerks Office at 580Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with CaliforniaGovernment Code Section 54954.2(a) or Section 54956.

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    Monterey Peninsula Regional Water AuthorityAgenda Report

    Date: February 03, 2014

    Item No: 2.

    06/12

    FROM: Executive Director Cullem

    SUBJECT: Receive Report, Discuss and Provide Direction on the Ground WaterReplenishment (GWR) Schedule, Response to Business Coalition Questions, andProduct Water Negotiations.

    RECOMMENDATION:

    Staff recommends that the TAC review the GWR schedule, noting focused scheduleactivities, review the MRWPCA responses to the Business Coalition Questions, andreview the status of GWR Product Water Negotiations with the purpose of establishing a

    recommended decision date after which declaratory relief should be pursued.

    DISCUSSION:

    Attachment #1 is the latest (7 October 2013) schedule for completion of the GWRproject. Italicized dates represent the most recent completion dates while standard typereflects the dates established during settlement negotiations (10 September 2013).Items shown in red are suggested by staff to be critical, those in yellow as approachingcritical. All others do not seem to be critical or near critical as of this date.

    Attachment #2 is the MRWPCA Proposed Groundwater Replenishment ProjectPhasing.

    Attachment #3 is the Business Coalition Five Questions to the JPA TAC MRWPCAResponses.

    ATTACHMENTS:

    1. GWR focused schedule dated 3 Feb 2014.2. MRWPCA Proposed Groundwater Replenishment Project Phasing3. Business Coalition Five Questions to the JPA TAC MRWPCA Responses

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    FOCUSEDSchedule and Task List for MPWSP Post Settlement (REV 3 Feb 2014)

    CPUC Calendar Dates NOTE: Sept 10th entries shown in BLUEand rev Oct 7th entries in italics

    Task Due Date Responsible Party Notes

    Comments on

    Settlement AgreementsDue

    August 30, 2013 Complete

    Reply Comments onSettlement Agreements

    Due

    September 13, 2013 Complete

    PrehearingConference: Status ofSettlement Motion (ifany), of CEQA work

    & other matters

    September 16, 2013 Complete

    Quarterly Check-in Callwith Settling Parties

    October 2013 MPRWA In Progress

    Informational Hearing

    on SettlementAgreements

    December 2-3, 2013

    Quarterly Check-in Callwith Settling Parties

    January 2014 MPRWA

    DEIR circulated forComment

    February 28, 2014

    Quarterly Check-in Callwith Settling Parties

    April 2014 MPRWA

    Comments on DEIRDue

    April 14, 2014

    Common OutlineOpening Briefs due

    April 29, 2014

    Reply Briefs due May 14, 2014

    FEIR published June 17, 2014

    ProposedDecision on Phase I

    Mailed

    July, 2014 Phase 1

    Quarterly Check-in Callwith Settling Parties

    July 2014 MPRWA

    Commission Action onPhase I

    August, 2014

    Quarterly Check-in Callwith Settling Parties

    October 2014 MPRWA

    GWR Phase -Testimonyof Interested Parties

    (from Settlement K)

    December 2014

    Quarterly Check-in Callwith Settling Parties

    January 2015 MPRWA

    GWR Phase -Settlement discussion

    commencing (fromSettlement K)

    January 2015

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    FOCUSEDSchedule and Task List for MPWSP Post Settlement (REV 3 Feb 2014)

    CPUC Calendar Dates NOTE: Sept 10th entries shown in BLUEand rev Oct 7th entries in italics

    GWR Phase -Concurrent Rebuttal

    Testimony (fromSettlement K)

    January 2015

    GWR Phase -Evidentiary Hearings(from Settlement K)

    February 2015

    GWR Phase - Briefing(from Settlement K)

    March 2015

    Quarterly Check-in Callwith Settling Parties

    April 2015 MPRWA

    GWR Phase - ProposedDecision (fromSettlement K)

    June 2015

    Quarterly Check-in Call

    with Settling Parties

    July 2015 MPRWA

    GWR Phase - FinalDecision (fromSettlement K)

    July 2015

    Quarterly Check-in Callwith Settling Parties

    October 2015 MPRWA

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    SECURITIZATIONTask

    Due Date Responsible Party Notes

    Draft Timeline and

    Implementation Plan

    August 2013 MPWMD Complete

    Meet with LegislativeDelegation re: Timeline

    and ImplementationPlan

    August 2013 MPWMD & MPRWA Complete

    Initial Revision andRedline of Legislation

    Early September 2013 MPWMD Complete

    Obtain Cal-Am Input onDraft Legislation

    Late September 2013 MPWMD, MPRWA, &Cal-Am

    In Progress

    Retain NecessaryAdditional

    Financial/LegalConsultants (Charles

    Atkins)

    October 2013 MPWMD In Progress

    Revise FinancialComparison of

    Securitization v. Cal-AmFinancing

    Draft 1-2 Page Factsheet describing

    legislation

    October 2013Early October 2013

    MPWMD & Cal-Am In Progress

    Meeting withCommunity/InterestGroups and Cities

    October-December2013

    MPWMD & MPRWA In Progress

    Further ReviseLegislation as

    Necessary

    October-November2013

    November 2013

    In Progress

    Draft Summary ofLegislation

    Legislative CounselPrepares Cover and

    Digest

    December 2013

    Early January 2014

    MPWMD

    Legislative Counsel

    Introduce LegislationMeet with LegislativeDelegation re strategy

    January 2014Late January 2014

    MPWMD, MPRWA, &Cal-Am

    Lobbying Effort February-April 2014 MPWMD, MPRWA, &Cal-Am

    Legislative CommitteeHearings

    Legislation Adopted

    February-March 2014

    April-May 2014Initial Draft of Motion forFinancing Order

    April 2014June 2014

    MPWMD

    Perform Analysis toDemonstrate Annual

    Customer BenefitsExceed 1.0% of Total

    Annual RevenueRequirement

    April 2014June 2014

    MPWMD & Cal-Am

    Motion for FinancingOrder

    May 2014July 2014

    MPWMD

    Obtain CPUC FinancingOrder

    August 2014With Commission

    Order on securitizationfinancing contingent on

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    Action on Phase 1 asatisfaction of remain

    crit from setl KPreliminary Discussionswith Bond Underwriters

    September-December2014

    MPWMD

    Drafting of

    documentation for bondrequests

    September 2014-April

    2015

    MPWMD & Cal-Am

    Preliminary Discussionswith Rating Agencies

    February-April 2015 MPWMD

    Task Due Date Responsible Party Notes

    Obtain Rating on WaterRate Relief Bonds

    July-August 2015 MPWMD

    NEW ITEM

    Determine internal costsof Cal-Am and AW tocomply withsecuritization structureto be included in ratesto Monterey Districtcustomers

    July-August 2015 Cal-Am NEW ITEM

    Obtain Letters FromRatings AgenciesDemonstrating No

    Impact to AmericanWater

    July-August 2015 MPWMD NEW ITEM

    Obtain Legal Opinionthat Securitization DoesNot Create a Taxable

    Event for Cal-Am

    July-August 2015 MPWMD

    Verification of AnnualCustomer Benefits

    Exceed 1.0% of TotalAnnual Revenue

    Requirement

    July-August 2015 (orprior to Issuance of

    Bonds)

    MPWMD & Cal-Am

    Cal-Am Creates SPE September 2015 MPWMD & Cal-Am

    Water Rate ReliefBonds Issued

    TBD(End of 2015?)

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    GWR FOCUSEDSchedule and Task List for MPWSP Post Settlement (REV 3 Feb 2014)

    CPUC Calendar Dates NOTE: Sept 10th entries shown in BLUEand rev Oct 7th entries in italics

    Task Due Date Responsible Party NotesFile Motion forBifurcation of theGWR Decision

    August 2013 MRWPCA Complete and Granted

    Board Actions toApprove Revised

    Governance CommitteeAgreement

    October 2013August/Sept 2013

    MPWMD, MPRWA,County, & Cal-Am

    To be Completed inOctober

    Executed Agreementsfor GWR Source Water

    and/or DeclaratoryRelief

    June 2014Sept/Nov 2013

    MRWPCA Meet & Confer inProgress

    Draft WPA

    Mar 2014Oct/Dec 2013

    MPWMD & MRWPCA

    Obtain Representationsfrom DPH re Use of

    Extracted GWR WaterOct 2014

    Oct/Dec 2013

    MRWPCA

    Obtain Representationsfrom RWQCB re Use ofExtracted GWR Water

    Oct 2014Oct/Dec 2013

    MRWPCA

    Storage Agreementwith Seaside Basin

    WatermasterJul 2014

    Oct/Dec 2013

    MRWPCA & MPWMD

    GWR Basis of DesignComplete with At Least

    10% DesignJul 2014

    Oct/Dec 2013

    MRWPCA

    GWR Financing PlanSufficient for SRF

    FundingAug 2014

    Oct/Dec 2013

    MRWPCA & MPWMD

    Agreement on Terms ofWPA May 2014

    January 2014

    Cal-Am, MRWPCA,&MPWMD

    Perform RevenueRequirement Analysis

    Including Any DebtEquivalency Effect

    Jul 2014Jan-Mar 2014

    MRWPCA & MPWMD

    Perform Assessment ofGWR Positive and

    Negative Externalitiesfor Any Premium

    June 2014Jan-Mar 2014

    MRWPCA & MPWMD

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    ShowingDEIR Circulated July 2014 MRWPCADilution WaterRequirements

    July-October 2014 MRWPCA

    Project Approved andFEIR

    October 2014 MRWPCA

    All Permits for GWRConstruction Obtained ???

    January 2015

    MRWPCA

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    Source Wells FOCUSEDSchedule and Task List for MPWSP Post Settlement (REV 3 Feb

    2014)

    CPUC Calendar Dates NOTE: Sept 10th entries shown in BLUEand rev Oct 7th entries in italics

    Task Due Date Responsible Party Notes

    Drill ExploratoryBoreholes

    Sept. 2013 February2014

    Cal-Am PENDING

    CommenceHydrogeologic Studyand Technical Report

    August 2013 Cal-Am / SVWC Draft completed. ?

    Permits for CEMEXSite Test Well

    January 2014 Cal-Am NOV 2014?

    Drill CEMEX Site TestWell

    February 2014 Cal-Am DELAYED

    Results of Test WellOperation Obtained

    February 2014 February 2016

    Cal-Am DELAYED

    Hydrogeologic Studyand Technical Report

    Complete and ResultsFiled with CPUC

    June 2015Cal-Am DELAYED

    Necessary Agreementsfrom CEMEX for

    Source Wells

    Nov. 2015, or sooner Cal-Am ?

    All Necessary Permitsfor Construction of

    Source Wells Obtained

    Nov. 2015, or sooner Cal-Am ?

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    MRWPCA Proposed Groundwater Replenishment Project Phasing

    F/FCEQA Technical

    201520142013 2016

    F/FCEQA Technical

    REGULATORY

    PERMITTING &

    ENGINEERING REPORT

    REGULATORY PERM

    CDPH/SWRCB

    Constructio

    REGULATORY PERMITTING

    CDPH/SWRCB

    Updated 1/2/14

    PILOT PLANT &

    WELL TESTING

    EIR Scoping:

    Project

    Understanding,

    Notice of

    Preparation,

    and

    Public MeetingAdmin Draft

    Facility Plan

    Final Facilities

    Plan Report

    Start Up

    CPUC Hearings &

    Workshops

    Dec. 2016

    Water Quality

    Sampling &

    Shunt Tests

    Public

    Review of

    Draft EIR

    Respond to

    Comments

    Product Water

    Conveyance,

    Injection Well

    Design, Siting

    Source Water

    Rights &

    Purchase

    Agreement

    Final EIR

    Certify EIR and

    Approve GWR

    Facility Design

    Mobilization &

    Site Retrofits

    IAP Meetings

    SRF & Title XVI

    Funding

    Coordination

    Internal Draft

    Facilities Plan &

    Feasibility StudyReports

    Technical

    Reports for

    Admin Draft

    EIR

    Facility Testin

    Dec. 2014

    Pilot Test Start

    & Monitoring

    Well Install

    Outreach

    Meetings

    Internal Draft

    Facilities Plan &

    Technical

    Reports and

    Admin Draft

    EIR

    Preparation

    2ndAdmin/

    Screen-

    check Draft

    EIR Prep

    Public

    Review Draft

    EIR Prep

    Product Water

    Conveyance,

    Injection Well

    Easements and

    Design

    Refinements

    Scoping Report

    Technical Team

    Prepares

    Conceptual

    Design

    Information

    Source Water

    Treatment

    Product Water

    Conveyance

    Groundwater

    Injection

    Cal Am

    Distribution

    ProjectDescription &Alternatives

    Source Water

    Treatment

    Product Water

    Conveyance

    GroundwaterInjection

    Cal Am

    Distribution

    Background

    Development &

    Investigations

    Alternative

    Analysis Report

    SRF & Title XVI

    Applications

    Final Feasibility

    Study Report

    RFP for Design

    & Build

    CPUC

    Determination

    Construction

    July 2015

    CPUC

    Settlement

    Hearings

    Facilities & Feasibility ReportsFacilities & Feasibility Reports

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    Joint Powers Authority Member Entities:Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

    Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

    Business Coalitions Five Questions to the JPA TACMRWPCA Responses

    1. Is there an agreement with the local governments that clearly states thewastewater from these jurisdictions is available for GWR?

    a. MRWPCA Legal Counsel has determined that, pursuant to Statelaw, once wastewater flows are provided to or delivered to theregional conveyance lines then that wastewater is owned by theMRWPCA to use 1) as it so determines, or 2) as agreed upon inprevious agreements.

    2. Who currently has rights to the water in the reclamation ditches and willproducers of the source wastewater have rights to the reclaimedwastewater?

    a. For the MRWPCA EIR, the Reclamation Ditch and the BlancoDrain are being classified as alternative supplemental sourcewater components. It is our understanding that flows in both theReclamation Ditch and Blanco Drain may be considered waters ofthe state under the jurisdiction of the State Water ResourcesControl Board (SWRCB) and would be comprised of precipitation-driven runoff, urban runoff, and agricultural return flows. For thepoints of diversion being considered in the Reclamation Ditch andBlanco Drain, the SWRCB website, http://www.waterboards.ca.gov/waterrights/water_issues/programs/ewrims/index.shtml showsthat no permits have been issued to divert surface flowsdownstream of these points of diversion. However, there appearto be pending permit applications for diversions in some of thestreams in the upland areas of the Reclamation Ditch watershed(i.e., upstream of the City of Salinas). Staff is preparing anapplication to request that the SWRCB make a determination toallow the use of these sources. In coordination with MPWMD, staffwill be consulting the SWRCB for the correct determination of usesfor these sources which may result in the preparation of anapplication.

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    Response to Business CoalitionJanuary 29. 2014Page Two

    3. Who has to approve the injection of the advanced treated water into localaquifers as part of the GWR process; in other words, from whom and how

    many permits are needed?a. The California Department of Public Health (CDPH) formally

    approves a project after review and approval of the projectscomprehensive engineering report. One permit is issued to injectthe water into local aquifers by the Central Coast Regional WaterQuality Control Board (RWQCBG). The permit includes CDPHand RWQCB requirements to protect all groundwater beneficialuses and water quality. A USEPA permit for a Class Vunderground injection well is not required. In July 2014, the CDPHDrinking Water Program is tentatively scheduled to become aDivision within the State Water Resources Control Board. As part

    of this transition, the CDPH/RWQCB approval and permittingprocess may be modified, but the permit issued for an injectionproject that uses recycled water will still be crafted to protectbeneficial uses of groundwater and groundwater quality. Otherpermit(s), authorizations, or approvals will be required from localentities including: MPWMD, Seaside Basin Watermaster,Monterey County Environmental Health, City of Seaside, and FortOrd Reuse Authority to construct the injections and monitoringwells for the project.

    4. What is the projected timeline for the GWR process from today to the time the

    first gallons of water are pumped from the recharged aquifer into the CAWdistribution system?

    a. Our target for project completion is January 1, 2017.

    5. What is the projected cost per AF (+/- 10%) of the GWR water at the time it istaken from the recharge aquifer for delivery to Cal Am (or other distributor)and what is a definitive estimate of the cost of water to Cal Am customers?

    a. The range in cost per acre foot is still estimated to be $2,500/AF.As the feasibility and facilities planning documents begin to shoreup some project costs this summer, the figure will have more

    clarity. We have contacted Cal Am regarding the estimate of thecost of water to Cal Am customers as we currently do have not thecost for distribution. Additional information is attached regardinganticipated Cal Am water costs.

    Z:\General Manager\Mayors JPA-MPR Water Authority\Business Coalitions GWR Questions-Responses 1-29-14.doc

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    Monterey Peninsula Regional Water AuthorityAgenda Report

    Date: February 03, 2014

    Item No: 3.

    06/12

    FROM: Executive Director Cullem

    SUBJECT: Receive Report, Discuss and Provide Direction on the cost comparisonbetween the Ground Water Replenishment project and the MontereyPeninsula Water Supply Desalination project.

    RECOMMENDATION:

    Staff recommends that the TAC review, and provide direction on the current costelements for both GWR and DESAL as well as available present value or annualized

    costs.

    DISCUSSION:

    The CDM bid price for the Cal-Am DESAL project reflects a $2.2 million price differencebetween the 6.4 mgd plant and the 9.6 mgd plant. This small difference suggests thatannual operating costs will be major factors in allowing GWR to be price- competitivewith DESAL.

    To date, Cal-Am has very good estimates of DESAL capital costs, but has not yetdetailed the cost elements comprising O&M. On the other hand, the Pollution Control

    Agency has developed fairly detailed cost elements for O&M but has not yet fullyidentified all GWR capital costs.

    Accordingly, it is important to identify all cost elements of both projects, particularlypresent values or annualized costs of leases, electrical power, operations, andmaintenance. Until we are able to identify similar cost elements we will continue tocompare apples with oranges.

    Keith Israel from the Pollution Control Agency will provide an update on current costelements of the GWR project.

    Ian Crooks from Cal-Am will provide an update on the current cost elements of theDESAL project.

    ATTACHMENTS:

    Pollution Control Agency Listing of GWR Cost Elements

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    Joint Powers Authority Member Entities:Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

    Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

    1/30/2014

    GWR Annualized Cost Components

    1. Capital recovery (assume 30-year SRF loan)

    2. Operations and maintenance costs

    a. Power

    b. Chemicals

    c. Labor

    d. Materials

    e. Equipment replacement

    f. Miscellaneous costs

    3. Treatment costs for water through secondary treatment

    4. Transmission (lease of RUWAP)

    5. Contributions from various parties towards annualizedcosts

    Z:\General Manager\Mayors JPA-MPR Water Authority\GWR annualized costs components 1-30-14.doc

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    Monterey Peninsula Regional Water AuthorityAgenda Report

    Date: February 03, 2014

    Item No: 4.

    06/12

    FROM: Executive Director Cullem

    SUBJECT: Receive Report, Discuss and Provide Direction on status of permits forconstruction of Cal-Ams DESAL test slant well and bore holes as well statusof the hydrogeological analysis.

    RECOMMENDATION:

    Staff recommends that the TAC receive a report from Cal-Am on the status of the testslant well and bore hole construction and an update on the hydrogeological task forcewhich will analyze the test data.

    DISCUSSION:

    Attached is a copy of the staff report considered by the Water Authority at a specialmeeting held on January 30. The purpose of the special meeting was to addressproblems with the issuance of City of Marina permits that have now resulted in a delayof the release of the DEIR for the Monterey Peninsula Water Supply Project (MPWSP).

    Ian Crooks from Cal-Am will provide the TAC with an update on the slant well, boreholes, and the hydrogeological analysis.

    ATTACHMENTS:

    Staff report to the Water Authority dated January 30, 2014

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    Monterey Peninsula Regional Water AuthorityAgenda Report

    Date: February 03, 2014

    Item No: 5.

    06/12

    FROM: Executive Director Cullem

    SUBJECT: Receive and Discuss a Brine Disposal Report prepared for the MPRWA byInterns from the Monterey Institute of International Studies.

    RECOMMENDATION:

    Staff recommends that the TAC receive and discuss the attached Brine Disposal Reportprepared for the MPRWA by two MIIS interns.

    DISCUSSION:

    Monterey Institute of International Studies (MIIS) students Rainey Graeven andNereyda Montano have served as interns for the Water Authority during the last quarterof 2013. They submitted an authoritative report to the Authority in December. The reportis included herein for TAC review and discussion.

    Both interns completed their service to the Authority by staffing the MPRWA duringWhale Fest 25 & 26 January 2014.

    ATTACHMENT:

    The Environmental Implications of Brine Disposal in Monterey Bay Brine Disposal -byRainey Graeven & Nereyda Montono

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    Prepared for:

    Monterey Peninsula Regional Water Authority

    Rainey Graeven

    Nereyda MontaoMonterey Institute of International Studies

    December 20, 2013

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    &

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    This report provides a summary of the issues surrounding brine disposal in the Monterey Bay.

    It examines existing research regarding brine disposal methods from a variety of desalinationplants located throughout the world, and analyzes the applicability of these methods to the

    Monterey Bay. Based on an analysis of available research, we have determined that ocean brine

    disposal is the most suitable and economically feasible method of brine disposal for theMonterey Bay. The report concludes by offering recommendations in order to minimize and

    mitigate the potential negative environmental externalities and consequences associated with

    ocean brine disposal in the Monterey Bay.

    In the coming years, the Monterey Peninsula will undergo a drastic shift in water supply.

    Beginning in January of 2017, the region is legally obligated by the state of California to reduceits dependency on the Carmel River by 70%. In order to meet local water demand, local

    administration and CalAm water company have agreed to build a desalination plant. Among the

    many controversial issues associated with desalination, brine disposal is a particularly significantissue for the Monterey Bay. Not only is the Monterey Bay home to a highly diverse ecosystem, athriving marine tourism industry, and numerous profitable fisheries, but it also encompasses the

    Monterey Bay National Marine Sanctuary, a federally protected marine area. The brine disposal

    associated with desalination could pose serious threats to the Monterey Bays economy and theecosystem itself. This report identifies the various methods of brine disposal, considers whether

    or not these methods are feasible for the Monterey Bay, and suggests ways to minimize

    environmental alterations and disturbances resulting from brine disposal.

    Modern desalination technology has been around since the 1930s (Cooley et al., 2013), and

    has been used in the United States since the 1960s; the literature and research surroundingdesalination largely focuses on the various methods of desalination and brine disposal. Literature

    regarding brine disposal is oftentimes site-specific, detailing how a specific method of brine

    disposal affects the local ecosystem and/or why that method was chosen. This literature is

    helpful in outlining some of the potential problems resulting from various methods of brinedisposal; however, the applicability of these cases to the Monterey Bay remains uncertain.

    Because the exact method of brine disposal, salinity of the saltwater and the reject brine, and

    ecosystem habitat are all unique to each specific location, some of the existing research can beused to predict how the Monterey Bay ecosystem might respond, but there is potential for

    unforeseeable consequences and reactions.

    Glater & Cohen (2006) explicitly compare the various methods of brine disposal used for

    inland desalination plants, namely evaporation ponds and deep well injection. Deep well

    injection entails injecting liquid solutions into wells between ranging from a couple hundred toseveral thousand feet deep, meanwhile evaporation ponds involve drying out the reject brine over

    large surfaces of varying size and relatively shallow depths. Once the evaporation process is

    complete, the remaining byproduct, salt, can then be harvested and manufactured into

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    commercial salt (Glater & Cohen, 2006). Of the two methods, deep well injection is the more

    cost-effective method of inland brine disposal (Glater & Cohen, 2006). Currently, liquid toxicand hazardous waste account for most of the deep well injections in the United States. The only

    state currently using deep-well injection for brine disposal is Florida. Though deep-well injection

    has been deemed a feasible alternative for brine disposal from some desalination plants, there are

    noteworthy drawbacks, including selecting suitable well sites and the cost involved. The lesscost-efficient form of brine disposal for inland plants is evaporation ponds. Glater & Cohen

    (2006) argue that evaporation ponds pose the fewest environmental concerns; however, theseponds require highly specific conditions. Evaporation ponds are limited to desalination plants

    that pump a maximum of 5 million gallons per day (MGD). In addition, evaporation ponds

    require relatively arid conditions, and substantial land for the evaporation process (Glater &Cohen, 2006).

    In a 2011 report on ocean brine disposal, Elimelech & Phillip indicated that no research

    has been done to examine the long-term effects of brine disposal on the marine environment.They note that both elevated salinity levels and the chemicals used in the treatment process are

    harmful to marine life; however, the degree of harm is unknown. In terms of potentially harmfulchemical additives, the main chemicals used in the reverse osmosis desalination plants includeantiscalants, coagulants, and cleaning chemicals (i.e. surfactants, alkaline and acid solutions, and

    metal chelating agents), all of which may pose risks to aquatic life (Elimelech & Phillip, 2011).

    The report goes on to discuss other environmental impacts associated with ocean brine

    disposal, particularly high salinity levels, and offers suggestions to minimize the effects of high

    salinity levels. The report cites mixing brine with either power plant cooling water or treated

    wastewater, a strategy common in Australia and Spain. This method uses efficient diffusersystems and strategically locates outfall pipes in areas of high hydrodynamic activity for rapid

    mixing and dissipation of the salinity load (Elimelech & Phillip, 2011: 716). The report expands

    upon this idea of strategic outfall placement by stating that the areas that are least sensitive tobrine disposal are high-energy oceanic coasts that have strong waves and exposed rocky shores

    (Elimelech & Phillip, 2011: 716).

    Furthermore, the report argues that how and when the seawater is treated also plays a

    critical role in the environmental impact of the discharged brine. Specifically, membrane-based

    pre-treatment using microfiltration or ultrafiltration can further reduce the overall impact of the

    brine disposal (Elimelech & Phillip, 2011). This method uses fewer chemicals than the standardseawater pre-treatment method of coagulation followed by sand filtration (Elimelech & Phillip,

    2011). Effective pre-treatment also reduces the rate of fouling and chemical cleaning

    (Elimelech & Phillip, 2011), suggesting both environmental and economic benefits can be gainedfrom effective early treatment. Elimelech & Phillip (2011) caution that long-term research is

    limited but provide valuable insight on how to minimize environmental degradation and

    disruptions from ocean brine disposal.

    In March of 2012, in support of an amendment to the Ocean Plan, a science advisory

    panel prepared a report for the California State Water Resources Control Board about managingbrine discharges to coastal waters (SCCWRP 2012). The five panel members reviewed existing

    literature on the topic of brine disposal and concluded that concentrate can be disposed of with

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    minimal environmental effects if properly executed (SCCWRP 2012:ii). However, the report

    notes that very few peer-reviewed studies have evaluated sublethal effects of desalinationdischarges (SCCWRP 2012:9). The report goes on to note that few studies have evaluated

    worst-case embayment areas such as the Monterey Bay, where there is little circulation

    (SCCWRP 2012:14).

    Few regulations exist for brine discharges around the world (SCCWRP 2012: ii). Regulationsmay limit salinity changes based on incremental change, percentage change or absolute change.

    For example, a limit may be salinity increments within 1 ppt or 5% of ambient salinity levels, or

    an absolute maximum level of 40 ppt. Evaluation is typically at the boundary of a mixing zonewhose dimensions are of order 50 m to 300 m around the discharge (SCCWRP 2012: ii). Salinity

    limits are usually an increment of 1 to 4 ppt relative to ambient levels (SCCWRP 2010:4).

    Although there is substantial variation on the specifics of these regulations, most share two

    important elements: (1) a salinity limit and (2) a point of compliance expressed as a distancefrom the discharge (SCCWRP 2012:4).

    Table 1 shows regulations and salinity limits for selected desalination brine discharges.

    California desalination plants in Carlsbad and Huntington Beach have an absolute salinity limitof less than or equal to 40 ppt. On the other hand, desalination plants in Australia have relativeregulations on salinity limits. For example, in Sydney, Australia the salinity limit is an increment

    of less than or equal to 1 ppt relative to ambient.

    Table 1: Regulations for select desalination brine discharges (Source: SCCWRP 2012)

    Data on the effects of brine discharge on flora and fauna, including California biota, are

    extremely limited (SCCWRP 2012:11). Often times the data available are not peer-reviewed orthere are flaws in the study design. There is only one existing published study that documents

    the impacts of brine discharge on Californias marine biota (SCCWRP 2012:11). Voutchkov(2006) conducted laboratory studies on 18 different species including algae and various species

    of fishes. He concluded that none of the species seemed to be affected by elevated salinity levels

    up to 10 ppt of ambient levels (SCCWRP 2012:11). However, there are a couple of perceivedflaws in the study: (1) the only measure of biological effect reported is survival and (2) the

    species were exposed to elevated salinity levels for only 19 days. It is also important to note that

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    all of the other studies examined by the expert panel reported that a 2 to 3 ppt increase has the

    potential to produce significant deleterious effects in sea grasses and mollusks (SCCWRP2012:11). Due to the limited number of studies on this topic, it cannot be concluded that

    California biota are not affected by elevated salinity levels.

    Brine disposal from desalination plants is accomplished by one of three methods: thesemethods include ocean brine disposal, evaporation ponds, and deep well injection. Evaporation

    pond technology is widely practiced in arid regions in the Middle East and Australia (NTUA

    2012: 25). Evaporation ponds impact the environment relatively minimally and should be

    utilized whenever possible; however, the numerous requirements for pond evaporation eliminatethis as an alternative for brine disposal in the Monterey Bay. In terms of climate, evaporation

    ponds require a highly arid climate (Glater & Cohen, 2006), not found in the Monterey Bay area.

    Furthermore, evaporation ponds corresponding desalination plant must take in at most 5 MGD(Glater & Cohen, 2006), which is much smaller than the size of the Monterey Peninsula Water

    Supply Projects planned desalination plant of 9 MGD (Dolqueist et al.,2012). Beyond climateand plant size, evaporation ponds require extensive acquirable land, which is virtually non-existent and/or exorbitant in cost in and around the Monterey Peninsula. As a result of the

    geographical, climate, and physical limitations, evaporation ponds are not an option for the

    Monterey Bay.

    Having eliminated evaporation ponds as a potential form of brine disposal, deep-well

    injections and ocean brine disposal are the only remaining alternatives. Both methods pose

    environmental threats and can result in the disruption of ecosystems. Although the deep-wellinjection method is technically feasible, there are various reasons why this is not the method of

    choice by many desalination facilities. These drawbacks include the difficulty in selecting a

    suitable well site, the costs involved in conditioning the waste brine, the possibility of corrosionand subsequent leakage in the well casing, seismic activity which could cause damage to the welland subsequently result in ground water contamination; and uncertainty of the well half-life

    which can only be estimated using mathematical simulation techniques (Glater & Cohen, 2006:

    7). Though some of these drawbacks also pertain to other forms of brine disposal, finding anappropriate site for the wells, the possibility of corrosion and groundwater contamination are

    particularly alarming and relevant concerns for the Monterey Bay. For these reasons, deep well

    injection has yet to be used or even considered in California (Glater & Cohen 2003).

    Worldwide, all desalination plants of significant capacity discharge brine into oceans andestuaries (Cooley et al., 2013: 13). Ocean brine disposal remains the only suitable method ofbrine disposal for the Monterey Bay in the foreseeable future. The Monterey Bays

    mediterranean climate and the premium coastal real estate eliminate evaporation ponds as a

    viable option, while a lack of pre-existing injection wells, potential contamination ofgroundwater, and the threat of increased seismic activity in an area already highly sensitive to

    earthquakes eliminate the potential for deep-well injection. Ocean brine disposal can disrupt

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    natural salinity balances and cause environmental damage to marine ecosystems, especially

    sensitive marshes and fisheries (Cooley et al., 2013: 13).

    Ocean brine disposal presents both legal and environmental concerns for the Monterey

    Bays economy and ecosystem; however, it is the sole option for brine disposal for this region.

    Because there are significant threats and concerns associated with this method, especially in theMonterey Bay and in and around the Monterey Bay National Marine Sanctuary, the

    precautionary principle should be enacted. In this case, the precautionary principle implies thatbecause there is a lack scientific certainty regarding ocean brine disposal, let alone in the

    Monterey Bay, and scientists caution against the many unknowns associated with ocean brine

    disposal, disposal standards and monitoring efforts should be stringent and overly prudent.Salinity levels of reject brine should follow strict regulatory standards, and close monitoring of

    ocean conditions and reject brine dispersal is vital. Moreover, if and when future desalination

    plants are constructed along the Monterey Peninsula, special attention should be given to

    potential cumulative impacts from multiple desalination plants and aggregate reject brineflowing into the Monterey Bay.

    Though the full extent of environmental consequences associated with ocean brine disposal islargely unknown, it is the most feasible method for the Monterey Bay. Due to its understudied

    nature, we recommend a salinity increase of no more than 5% of that occurring naturally in the

    waters around the discharge. This increment will amount to about 1.7 ppt (SCCWRP 2012: iii).Although various reports have recommended a salinity increase of 2 to 3 ppt, we recommend amore conservative limit for two reasons: (1) the region is an embayment area which is associated

    with less circulation and (2) the high level of biodiversity in the Monterey Bay, including anumber of sensitive benthic species. Additionally, the discharge method should include co-

    disposal with power plant cooling water or wastewater. If pure brine is released, multiportdiffusers would help reduce salinity in the near field and increase dilution (SCCWRP 2012:23).

    Multiport diffusers are structures consisting of closely spaced ports which inject turbulent jets athigh velocity into the receiving water body. A multiport diffuser is an effective device for the

    disposal of water containing wastes into a natural body of water due to the high degree of

    dilution that can be obtained.

    Unintended consequences should be expected due to the enigmatic nature of brine disposal.

    Therefore, a monitoring program of the discharge and the receiving area should be required(SCCWRP 2012:44). This monitoring should include analyses of benthic conditions and other

    sensitive areas in the bay that are most prone to changes. Additionally, the toxicity of the brine

    discharges should be tested in laboratories using local species of the Monterey Bay. Whenexamining the potential effects that brine could have on species residing in the Monterey Bay, itis important to consider not only whether these species survive, but also how they will be

    affected in terms of migration, reproduction, and other important life stages. The laboratory tests

    should include sub-lethal endpoints to recognize whether and how the species are being affected.

    According to Carol Reeb, a marine biologist and fisheries geneticis at Stanfords

    Hopkins Marine Station, squid can potentially be affected by brine discharge in the region (Reeb

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    2013). Sandy sea floor, abundant in the Monterey Bay, is critical habitat for market squid, one of

    Californias most valuable fisheries. Squid build egg nurseries in the sand, and dense plumes ofhigh-salinity water would have the potential to sink and settle over the vast amounts of squid egg

    capsules on the seafloor. As of now, no one knows how brine will impact developing squid

    embryos and many other species comprising Monterey Bays benthic communities (Reeb 2013).

    In conclusion, there is no doubt that there is a water shortage in California, and that the

    Monterey Bay authorities must find some way to provide residents with sufficient water.However, it is important to ensure that the regions marine tourism industry, profitable fisheries,

    and its highly diverse ecosystem continue to thrive. Desalination and brine disposal will likely

    pose threats to the Monterey Bay environment. In order to limit these environmentalramifications, it is crucial that the regions authority figures in charge of desalination and brine

    disposal move forward in a conscientious and precautionary manner.

    Cooley, H., Ajami, N., and Heberger, M. (Pacific Institute). Key Issues in SeawaterDesalination in California: Marine Impacts. Pacific Institute. (2013).

    http://www.pacinst.org/wp-content/uploads/2013/12/desal-marine-imapcts-full-report.pdf

    Dolqueist, L.A., Stoddard, J., Manatt, P. & P., and Leeper, S. E. Application of California-

    American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply

    Project and Authorization to Recover All Present and Future Costs in Rates. (2012): 1-94.http://www.cpuc.ca.gov/Environment/info/esa/mpwsp/pdf/CAW_Application_PDFA_.pdf

    Elimelech, M., and Phillip, W.A."The Future of Seawater Desalination: Energy, Technology, andthe Environment." Science333.6043 (2011): 712-17.

    http://www.sciencemag.org/content/333/6043/712.full.html

    Glater, J., and Cohen, Y., Brine Disposal from Land Based Membrane Desalination Plants: ACritical Assessment. Metropolitan Water District of Southern California. (2003): 1-16.

    http://www.twdb.state.tx.us/wrpi/rwp/3rdRound/2011_RWP/RegionK/Files/Reference_Do

    cs/Brackish_Desal/BRINE%20DISPOSAL.pdf

    National Technical University of Athens (NTUA). Report on the evaluation of existing methods

    on brine treatment and disposal practices. SOL-BRINE. (2012).http://uest.ntua.gr/solbrine/uploads/files/Deliverable_1.1.pdf

    Reeb, C., Consider desalinations effect on sea floor.Monterey Herald. 2013 August 10.http://www.montereyherald.com/opinion/ci_23838232/carol-reeb-consider-desalinations-effect-sea-floor

    Southern California Coastal Water Research Project (SCCWRP). Management of BrineDischarges to Coastal Waters: Recommendations of a Science Advisory Panel. California

    Water Resources Control Board. (2012).

    http://www.waterboards.ca.gov/water_issues/programs/ocean/desalination/docs/dpr051812.pdf

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    Voutchkov, N. 2006. Innovative Method to Evaluate Tolerance of Marine Organisms.

    Desalination & Water Reuse 16:28-34.


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