MONTEREY COUNTY, Calif- Monterey County Board of Supervisors announced today that a deal has been reached between California American Water (Cal AM), resolving legal and monetary issues stemming from the failed desalination project.
Back in December of 2010, the project faced serious legal challenges including conflict of interest charges regarding former Monterey County Water Resources Agency board member Stephen Collins, as well as environmental litigation.
Then on July 18, 2012 the California Public Utilities Commission (CPUC) ruled it was unreasonable for Cal AM Water to continue to pursue the Regional Desalination Project, citing the uncertainty surrounding financing and the ability to obtain needed permits for the project.
According to a release sent out by Cal AM, California American Water will file an application seeking the CPUC's approval of the settlement agreement and both parties have the ability to terminate the settlement agreement if its terms are not approved by the CPUC.
Here is a selection on what California American Water released today, regarding the deal reached:
As part of the settlement, the County has agreed that its ordinance requiring public ownership of desalination facilities in Monterey County will not apply to California American Water, an investor-owned utility, or its current water supply project proposal, the Monterey Peninsula Water Supply Project. The County also agreed to dismiss its lawsuit seeking clarification on the legality of the ordinance, which is currently pending in San Francisco Superior Court. This portion of the agreement is consistent with a recent order by the California Public Utilities Commission, which declared the County ordinance does not apply to California American Water.
Also in the settlement, the County states it will support the company's effort to limit source water for the desalination component of its water supply plan to the shallow aquifer, which lies above the 180-foot aquifer where the company had originally proposed to draw its water. Withdrawals from the 180-foot aquifer are opposed by Monterey County agricultural interests. California American Water agrees in the settlement to pursue the shallow aquifer as its preferred source, but states that if the shallow aquifer proves unsuitable, the company will revert to its original plan.
