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Carlsbad Desalination Project
What’s the latest?
Construction is underway on what will be the nation's largest seawater desalination plant in Carlsbad, Calif, following successful closure of project financing on Dec. 24, 2012.
Earlier in December, the Water Authority and the project’s private developer, Poseidon Resources, secured a favorable interest rate for financing construction bonds for the plant and a related pipeline. The 4.78 percent rate will save an estimated $200 million over three decades compared to earlier projections, trimming the price of water. Water from the plant is expected to cost between $1,849 and $2,064 per acre-foot, depending on how much is purchased. The total cost, including a major pipeline to deliver the desalinated water, is projected at $2,014 to $2,257 per acre-foot.
In late November, the Water Authority’s Board of Directors approved a Water Purchase Agreement with Poseidon Resources. The plant will produce 50 million gallons a day starting in 2016. By 2020, it will generate enough water to meet 7 percent of the region’s demand.
Also in November, the state court of appeals affirmed the trial court’s rejection of the Surfrider Foundation’s last remaining legal challenge to the project. Nov. 30, 2012 Court Ruling
The reverse-osmosis desalination facility in Carlsbad will make San Diego County’s water supplies more reliable by reducing the region’s dependence on water from the Colorado River and the Bay-Delta that is vulnerable to droughts, natural disasters and regulatory restrictions. A new 10-mile pipeline will connect the plant to the Water Authority’s aqueduct in San Marcos.
For more information on the Water Furnishing Revenue Bonds, Series 2012 (San Diego County Water Authority Desalination Project Pipeline) (Series 2012 Pipeline Bonds), including CUSIPs and the Limited Offering Memorandum, please click here.
Water Purchase Agreement (Technical appendices to the agreement are available on request)
Board memo and resolution: Potential Adoption of Seawater Desalination Water Purchase Agreement
Environmental Documents for the Carlsbad Desalination Project:
Water Authority staff members made several presentations to the Board of Directors about the Water Purchase Agreement and the Carlsbad Desalination Project, including the following. To view additional presentations, please visit the Board Meetings and Documents page and scroll to the date you are searching for.