© POSEIDON WATER 2015 1
Seawater Desalination Project at Huntington Beach Local, Drought-Proof Source of Drinking WaterFor Orange County
American Society of Civil Engineers
April 28, 2016
© POSEIDON WATER 2015 2
Poseidon at a Glance
Founded in 1995 to develop water infrastructure projects through a Public-Private
Partnership approach
Use best available technology in an environmentally sensitive way
Senior management team has collectively developed, financed and constructed over
$10bn in infrastructure projects
Primary focus on seawater desalination project development but, with experience in
other water treatment project opportunities
Headquartered in Boston, MA with regional offices in California, Florida and Texas
Leading water infrastructure developer and manager with significant experience partnering
with water agencies to deliver essential water infrastructure projects
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Future 2035 OCWD Water Supply Sources
Total Water Demand 515,000 af/y without desalination
SAR Baseflows, 100,000, 19%
SAR Stormflows, 70,000, 14%
Natural Incidental Recharge, 60,000,
12%GWRS including Final Expansion,
130,000, 25%
Misc, 25,000, 5%
Imported Water, 130,000, 25%
Orange County Water District
Water Issues Committee
July 17, 2013
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Future 2035 OCWD Water Supply Sources
Total Water Demand 515,000 af/y with desalination
SAR Baseflows, 100,000, 19%
SAR Stormflows, 70,000, 14%
Natural Incidental Recharge, 60,000,
12%GWRS including Final Expansion,
130,000, 25%
Misc, 25,000, 5%
Imported Water, 74,000, 14%
Ocean Desalination, 56,000, 11%
Orange County Water District
Water Issues Committee
July 17, 2013
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Huntington Beach Site Existing
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Huntington Beach Desalination Project
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Huntington Beach Desalination Project
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Permitting Status
Local Land Use Permits:
EIR Certified – Sept 2005
SEIR Certified – Sept 2010
HB Conditional Use Permit – Feb 2006/10
HB Coastal Development Permit- Feb 2006/10
NPDES Permit Permit Issued –Aug 2006
Permit Renewed – Feb 2012
Department of Public Health Services
Conceptual Approval –
August 2002
State Lands Commission
Lease for Intake and Discharge Piping –
Approved - October 2010
California Coastal Commission
Coastal Development Permit – Pending
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Intake Technology
• Non-swimming Planktonic
organisms (i.e., fish eggs)
need to float within 15-yards
of the intake to be at risk of
entrainment.
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Minimizing Fish Egg Entrainment
• Less than two plankton will be
entrained per 1,000 gallons of
seawater withdrawn. This
equates to roughly 0.03% of
the plankton in the source
water.
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Discharge Technology
• The elevated salinity levels in the concentrated seawater discharged by the
desalination plant comply with state regulations and will not impact water
quality or marine life.
• There are over 15,000 desalination plants operating around the world today.
Studies and data from these plants show the concentrated seawater is being
diluted without impacts to marine life or the ecology.
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WHAT IS A SEAFLOOR INFILTRATION GALLERY?
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CONCEPTUAL DESIGN - LOCATION
Water Depth at Gallery:
Approx. 40’ Deep
Distance Offshore:
Approx. 2, 500 LF
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CONSTRUCTION HIGHLIGHTS
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SIG vs. Screened Intake Pipe
SIG Existing Pipe
Construction Time 7 years 1 year
Construction Cost $1.5 billion $0
Seafloor Excavation 500,000 cubic yards 0 cubic yards
Seafloor habitat 30 acres removed 0 acres removed
Impact on Public
Beach Access
Yes No
Increased GHG Yes No
Environmental
Impacts at the Beach
Yes No
Impingement of Fish No No
Entrainment of
Microscopic Fish Eggs
No Yes – 2 per 1,000
gallons
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Commitment to Carbon Neutrality and GHG Reduction
Clean Air: The Reverse Osmosis process produces no
greenhouse gases
Renewable Power: Poseidon is exploring powering
project with 100% green power
Energy Minimization and GHG Reduction Plan: If green
power cannot be procured, Poseidon will purchase carbon
offsets to make the project carbon neutral
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Project Risk Allocation – Original Proposal
Risk Description Poseidon OCWD
Permitting
Project Financing
Construction
Interest Rate
Change in Law
Technology
Water Demand
Operations & MaintenanceEfficiency and cost basis Inflation
Pipeline Distribution System
Electricity Consumption & PriceConsumption Pricing
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Risk Allocation – Staff Negotiated Term Sheet
Risk Description Poseidon OCWD
Permitting
Project Financing
Construction
Interest Rate
Change in Law
Technology
Water Demand
Operations & Maintenance
Pipeline Distribution System
Electricity Consumption & Price
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Key Term Sheet Issues
Linking price of desalinated water to
avoided cost of MWD
50-year contract term
Pricing adjustment at year 15
Substantially all financial risks are
Poseidon’s responsibility
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Project Progress
• Orange County Water District approved term sheet
‒ May 14, 2015
• Independent review process of subsurface intakes
‒ Two year process concluded / SIG determined “infeasible”
• Coastal Commission Development Permit application
pending
• Coastal Commission Hearing
‒ July 2016
• OCWD / Poseidon Water Reliability Agreement
‒ Q3 / Q4 2016
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Carlsbad Project
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Carlsbad Project – Dedication Ceremony – 12/15/15
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Seawater Desalination Project at Huntington Beach Local, Drought-Proof Source of Drinking WaterFor Orange County
American Society of Civil Engineers
April 28, 2016