Tag Archives: Poseidon Resources

Robert F. Kennedy Jr. Environmental Group Lends Support to Opponents of Surf City Desalination Scam

By John Earl

As supporters and opponents of the proposed $1 billion (publically subsidized) Huntington Beach ocean desalination plant rev-up for a  key hearing before the State Lands Commission, an environmental protection alliance led by Robert F. Kennedy Jr. has weighed in.

The California Coastkeeper Alliance,  part of the Waterkeeper Alliance (an international network of water protection advocates led by Kennedy) which opposes the aggressive push for ocean desalination in California, has joined 21 other environmental organizations in a letter (Final Desal Principles in OPPOSITION of Poseidon-HB) sent to the Commission in opposition to the project.

World-renowned fighter for environmental justice, Robert F. Kennedy Jr.

Kennedy, who Time magazine called “Hero of the Year” for taking the lead in helping to clean up the Hudson River, brings heavy-duty credentials to the long list of environmental organizations opposed to the Poseidon project.

Twenty-two environmental organizations representing “hundreds of thousands of members” have signed a letter to the State Lands Commission to oppose the proposed Poseidon Resources ocean desalination plant in Huntington Beach, California.

By contrast, only one celebrity environmentalist, former U.S. Senator Barbara Boxer, has endorsed the project, but she is a Poseidon-paid “consultant.”

The letter,  dated July 26 and signed by the 22 environmental protection organizations representing “hundreds of thousands of members,” says that the project would:

  1. Impose significant and unnecessary costs on Orange County water districts and ratepayers;
  2. Set back California’s efforts to advance climate-smart water policy;
  3. Fail to alleviate reliance upon, or impacts to, freshwater ecosystems, including the Bay-Delta; and
  4. Fail to comply with California law and regulations that govern seawater desalination facilities.

The project developer, Poseidon Resources, seeks approval for its Environmental Impact Report and the ability to continue to lease state land for its project, which would convert 100 million gallons of ocean water into 50 million gallons of drinking water each day.

Poseidon says that the project will protect against drought, is environmentally sensitive, and will cost the taxpayers nothing.

In reality, the project will cost the ratepayers of the Orange County Water District, which would receive the desalinated (purified) water (only to put most of it into the underground river basin to be purified yet again) hundreds of millions of dollars up front for startup costs.

Then, for the next 30 to 50 years, OCWD ratepayers would be required by contract (as now proposed) to buy the Poseidon water at rates 3 to 4 times higher than the imported water that OCWD imports now to help keep up its underground water supply.

The State Lands Commission hearing starts at 8 a.m. this Thursday (Oct 19) in the Huntington Beach City Council chambers.

Below is a complete list of environmental organizations that signed the letter:

California Coastkeeper Alliance
Orange County Coastkeeper
Residents for Responsible Desalination
California Coastal Protection Network
Surfrider Foundation
NRDC Natural Resources Defense Council
Heal the Bay
Sierra Club of California
Desal Response Group
Southern California Watershed Alliance
Environmental Water Caucus
Wholly H20
Environment California
Oakview Comunidad
Azul
Food & Water Watch
OC Earth Stewards
Orange County Environmental Justice
Santa Barbara Channelkeeper
Emerald Necklace
Amigos de los Rios
EJCW Water Justice for All

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Conservation Vs. Ocean Desalination: Pro-Desal Director Pushes False Conservation Stats

By John Earl

Part 4 of a series: part 1; part 2; part 3

In a January 26 Facebook post,  Mesa Water  and Orange County Water District’s (OCWD) dual board member, Shawn Dewane, proudly announced President Donald Trump’s decision to list Poseidon Resources’ proposed Huntington Beach ocean desalination plant as a “Top 50 Nation Priority Project.”

I am proud to be an advocate for pure, plentiful and affordable water supply for our community,” he declared.

Dewane’s words were telling of the ideological anti-conservation foundation upon which the Poseidon proposal rests.

Director claims conservation is more expensive.
Mesa Water/OCWD director, Shawn Dewane, uses Facebook to argue, incorrectly, that conservation is the most expensive water source and that its costs could have already paid for the proposed Poseidon ocean desalination plant.

It is important to change the mindset from scarcity to surplus, and this project [the Poseidon desalination plant] is part of that vision,” he wrote.

Contrary to popular belief,” Dewane claimed, “conservation does not come for free and in fact, prices have risen enough because of demand reduction [during the drought] that we could have paid for this entire project.” (emphasis added)

In a later (April 19) Facebook post, Dewane elaborated on that theme, speaking of water-use restrictions imposed by the state during the recent drought, which officially ended April 6.

The truth is that the demand reduction accounted for a roughly 30% increase in the cost of ground water to the retail producers in the Orange County Water District are[a], which is passed along to the consumers. That same price increase would have paid for all of the water produced by the Poseidon project. Instead of a new water source, we simply got higher rates and no additional supply. Conservation is the most expensive source of water.” (emphasis added)

Are Dewane’s anti-conservation assertions correct? Mostly, they are not. Let’s examine them:

  • Dewane’s claim: that “we could have paid for the entire [Poseidon ocean desalination] project” with the amount of money collected from water price increases due to “demand reduction” created by state-imposed conservation measures during the drought.
    • Analysis: The estimated cost of the Poseidon project is $1 billion. In the fiscal year, 2014 – 2015, OCWD’s 19 member-agencies pumped 305,259 acre-feet (af) from the groundwater basin, according to staff reports. The following year, they pumped 281,750 af, or 23,509 af less water. OCWD’s 19 member-agencies would have to collectively pay $1,059 per af or $24,896,031 for imported water to make up for the revenue loss from the state-imposed restrictions. If those agencies were to apply that difference as a down payment for the desalination plant, they would still be $975,103,969 short. At that rate, it would take them about 40 years to pay for the plant, assuming that costs wouldn’t rise, which they would.
  • Dewane’s claim: that the replenishment assessment (RA) increase that OCWD charged its member-agencies to make up for revenue loss for conservation (the “roughly 30 percent increase”) “would have paid for all the water produced by the Poseidon project.”
    • Analysis: From 2015 to 2017, the RA rose from $322 af to $445 af, by 38 percent or $123 af. The OCWD predicts that its 2.4 million service-area residents will use 303,000 af of water for the fiscal year 2017 to 2018. For that amount of water, the $123 price increase comes to a total of about $37.3 million. The cost of a year’s worth of Poseidon desalination water (about 50,000 usable af of 56,000 af) would be (based on Poseidon’s nearly identical Carlsbad plant) about $2,500 af or $125 million.
  • Dewane’s claim: “Instead of a new water source [Poseidon’s desalination plant] we simply got higher rates and no additional supply.”
    • Analysis: The quickest way to increase water supplies in the Orange County water basin is by reducing pumping, as the OCWD chart (below) indicates. The Poseidon project would give a “new” source of water, but no more water, except a small amount (on paper only) during an extreme drought. That’s because for Poseidon to receive the $400 million subsidy it needs from the Metropolitan Water District of Southern California to build the desalination plant (without it, Poseidon says, the plant can’t be built), the water Poseidon produces must replace an equal amount of imported water. That replaced imported water would be sold to water agencies outside of the OCWD service area, at a lower rate than Poseidon water, courtesy of OCWD ratepayers.
  • Dewane’s claim:  that conservation is the most expensive source of water. See part 2 and part 3 of this series.
This OCWD options chart shows that lowering the basin pumping percentage (BPP) refills the basin at far less cost than ocean desalination (not shown), estimated to be from $1,900 af to $2,500 af (currently at Poseidon’s nearly identical Carlsbad desalination plant).

 

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Conservation Vs. Ocean Desalination: Dual Water Board Director is Poseidon’s Point Man

By John Earl

Shawn Dewane of Costa Mesa is the free-marketeer point man for Poseidon Resources, the water dealer that wants to combine public and private funds to build a $1 billion ocean desalination plant in Huntington Beach.

Shawn Dewane
Shawn Dewane at a OCWD Board of Directors meeting. Photo: John Earl

The project would be built under the auspices of the Orange County Water District(OCWD), which manages the county’s groundwater basin and provides 2.4 million north-county residents with 75 percent of their water.

Voters elected Dewane to the OCWD Board of Directors in 2010. Continue reading Conservation Vs. Ocean Desalination: Dual Water Board Director is Poseidon’s Point Man

The Ideological War Behind Poseidon’s Proposed Desalination Plant

By John Earl

Underlying the long-running battles between proponents and opponents of the proposed Poseidon Resources ocean desalination plant is an ideological war between two roughly defined factions: conservationists and free-marketeers.

The Orange County Water District (OCWD), which manages the Santa Ana River and the Orange County Groundwater Basin (a collection of aquifers containing 60 million acre-feet of water), is ground-zero in that war.

(The OCWD supplies 75 percent of the drinking water for 2.4 million residents of north Orange County) Continue reading The Ideological War Behind Poseidon’s Proposed Desalination Plant

Mesa Water on Conservation: In Cuba maybe, but not here

By John Earl

To the five elected directors of the Mesa Water District, conservation is a Trojan horse, unleashing Cuban-style authoritarianism, drop by drop.

The answer to the worst California drought in 500 years, they say, is to sell more water and build more ocean desalination plants.

“The solution to drought is water,” opined Director Fred Bockmiller during a recent (Nov. 10) Mesa workshop. Conservation doesn’t solve the lack of water, he reasoned, “It just means you don’t use it.”

In 2014, after three years of severe drought and foot-dragging by the state’s 400 water agencies, Governor Jerry Brown mandated state-wide conservation standards designed to achieve a 25 percent reduction in overall water use.

The Governor’s plan increased water savings by 28 percent at little if any inconvenience to Orange County residents. Continue reading Mesa Water on Conservation: In Cuba maybe, but not here

Poseidon Jokes and Mesa Water Laughs Over Proposed Tax Increase for ‘Privately Funded’ Desal Project

By John Earl
Surf City Voice

Orange County taxpayers may have to pay a lot more for a $1 billion Huntington Beach ocean desalination plant if the Mesa Water District gets its way.

For the past decade the developer, Poseidon Resources, has promised taxpayers they won’t have to pay a cent for construction of the desal plant, which would create about 56,000 acre-feet of pricey drinking water every year, if approved.

The tax truth came out unexpectedly at a special Mesa Water board meeting held June 27 to promote the Poseidon project’s supposed benefits.

About 100 Mesa area residents were in the audience.

Invited speaker Robert Sulnick made Poseidon’s case during a 20-minute presentation.

Opponents of the desal plant were not invited to speak.

Sulknick was introduced as an environmental attorney and the executive director of OC WISE–with no mention (until questioned by this reporter after his presentation) that the group is a Poseidon front of developers and that he is one of Poseidon’s paid consultants. Continue reading Poseidon Jokes and Mesa Water Laughs Over Proposed Tax Increase for ‘Privately Funded’ Desal Project

Poseidon’s Reliability Promise: Pay More For the Same

By John Earl
Surf City Voice

Will water ratepayers benefit if the Orange County Water District partners with Poseidon Resources Inc. to build a $1 billion ocean desalination plant in Huntington Beach?

The OCWD manages the Santa Ana River (groundwater) basin that provides over 70 percent of the water for central and northern Orange County.

For the past 19 months its board of directors has highballed the proposed project toward a contract with Poseidon that, so far, looks like a bad deal for ratepayers.

That deal would lock OCWD into buying 56,000 acre feet of desalinated water annually for the next 50 years, regardless of need.

And, at 3-10 times the price, it would replace an equal amount of water currently imported from the Metropolitan Water District of Southern California (MET) to help keep the basin at safe levels.

But most of OCWD’s producers (the 19 member agencies who pump water from the basin) will end up paying for Poseidon’s water, whether they want it or not.

One of those producer agencies, the Irvine Ranch Water District, thinks that would be unfair. Continue reading Poseidon’s Reliability Promise: Pay More For the Same

Poseidon Desal: Will OCWD Be Shipwrecked by Mermaids?

By John Earl
Surf City Voice

Centuries ago, explorers sailed Poseidon’s Seven Seas looking for beautiful mermaids and lands full of golden treasures.

Although some of the hapless adventurers may have found what they were looking for, those who didn’t drink too much seawater were usually disappointed.

Today, it looks like Poseidon, the God of the Sea, is up to his old tricks again.

This time, taking corporate form (same as being human under American law), he’s promising to build a new source of water–an ocean desalination plant in Huntington Beach–that will create an additional and reliable supply of water for the Orange County Water District’s ratepayers.

At least that’s what most people think he is promising.

But is he?

Any proposed deal between the OCWD and Poseidon Resources Inc. to build an ocean desalination plant will depend upon a subsidy of $400 million, doled out to Poseidon for a 15-year-period, courtesy of water ratepayers throughout Southern California.

The OCWD manages the Santa Ana River Groundwater Basin, which supplies over 70 percent of the drinking water for Central and North Orange County.

The desalination plant would turn about 56,000 acre feet of seawater into drinking water every year. Continue reading Poseidon Desal: Will OCWD Be Shipwrecked by Mermaids?

Garden Grove Desal Forum Tackles Issues Suppressed by OCWD

By John Earl
Surf City Voice

A public forum held by Garden Grove mayor Bao Nguyen last night at the city’s community center examined the cost of and alternatives to a proposed $1 billion ocean desalination plant promoted by the Orange County Water District.

Those issues–and the panel of local experts who discussed them last night–have been all but ignored by most of the OCWD Board of Directors, some of whom have strong financial and political ties to Poseidon Resources Inc., the company that would build the plant, and its big-business allies.

The OCWD maintains the county’s groundwater basin, which holds 66 million acre-feet of water and provides about 70 percent of the water used in central and northern Orange County, serving 2.3 million people.

For the past 18 months a clique of four board members, Cathy Green, Shawn Dewane, Stephen Sheldon,  and Denis Bilodeau, joined last January by Garden Grove Councilmember Dina Nguyen, have steered the District straight toward a long-term contract with Poseidon.

OCWD staff presented a proposed term sheet (pre-contract) to the board on May 14.

The board approved the term-sheet 7 -3. Nugyen voted for it.

Dina Nguyen on the right at May 14 OCWD meeting. She voted to negotiate a contract with Poseidon. Several Garden Grove residents attending the forum complained that she was non responsive. She did not attend the forum.
Dina Nguyen on the right at May 14 OCWD meeting. She voted to negotiate a contract with Poseidon. Several Garden Grove residents attending the forum complained that she was non responsive. She did not attend the forum.
Nguyen, who was the beneficiary of $11,000 in “independent expenditures” by a Poseidon related PAC in her recent election to the OCWD board, was invited to participate in the forum but was a no-show.

Staff is now negotiating a contract with Poseidon that would lock the district into buying 56,000 acre-feet of desalinated ocean water per year, regardless of need, for the next half-century.

Poseidon’s water would cost about $2,000 an acre-foot out the door, more than 3 times what OCWD currently pays for the untreated water it imports from the Metropolitan Water District of Southern California (MET) to help maintain the county’s groundwater basin supply.

Poseidon and its allies on the OCWD board claim that its more expensive water would be a “reliability premium” akin to car insurance that would add to the county’s water supply portfolio and guarantee water during a drought.

But, in order to be financially viable, Poseidon is demanding hundreds of millions of dollars in ratepayer-backed subsidies for the first 15 years of the contract. In return, MET rules require that Poseidon’s 56,000 acre-feet of desalinated water replace an equal amount of (cheaper) imported water, which would then be made available to water agencies outside of OCWD’s service area.

There would be no net gain in water supply for the district, which would be paying three times as much for Poseidon’s replacement water while subsidizing the cheaper imported water for other agencies. And the county wouldn’t receive more water during a drought.

This reporter has repeatedly asked Poseidon officials and OCWD directors to explain the benefit to ratepayers of paying three times as much for water than necessary and subsidizing cheaper water for ratepayers outside of Orange County, but to so far mum’s the word.

For the first 15 years, the proposed pricing scheme would pay Poseidon a surcharge of up to 20 percent on imported MET water (at the higher MWD treated rate) on top of a 3 percent annual compounded surcharge that recurs for the life of the contract, underlying subsequently declining variable surcharge rates.

A Surf City Voice review of the proposed pricing scheme shows that after 15 years ratepayers would pay up to $2,700 per acre-foot for Poseidon’s water (assuming the required $56,000 af) versus about $1,048 per acre-foot for untreated MET water, which comes out to about $1.8 billion versus about $700 million in total for that period.

That’s about $1.1 billion dollars that could be used for the cheaper and more efficient water supply alternatives ignored by OCWD and Poseidon but examined by the forum panel of experts.

Panel members are former Huntington Beach mayor Debbie Cook, Irvine Ranch Water District’s Peer Swan, Coastkeeper’s Ray Hiemstra, and Garden Grove water officials. Members of the public, including Westminster City Councilmember Diana Carey, also spoke.

 

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Drought Politics: Pat Bates Baits Union-Tribune Readers with Doomsday Scenario

By Debbie Cook
Special to the Surf City Voice

On March 11, the San Diego Union-Tribune posted an op-ed, “Desalination makes sense for Orange County”, written by Assemblywoman Pat Bates (Laguna Niguel). It is unclear why she was addressing the California Coastal Commission since the project was not on its March agenda.

The paper chose not to allow comments on her article. So here is my response to her piece which reads as if lifted from a Poseidon Resources press release.

She goaded me from her first sentence: “Anyone who has stepped outside in the past year has undoubtedly seen the effects of our state’s historic drought conditions.”

Perhaps Ms. Bates should take a look around her own district before she goes off with her dire news of “empty reservoirs, dry wells, and brown, arid landscapes across California.”

Orange County is the poster child of disregard for the drought: lush green expanses of grass in front of strip malls, road medians, HOAs, government facilities, and private properties. Any claim she makes that Orange County has “tried” to do its part is laughable.

Ms. Bate's vision of Orange County without Poseidon? Photo: SCV
Ms. Bate’s vision of Orange County without Poseidon? Photo: SCV

It is interesting that Ms. Bates would chime in on a project outside her district that runs roughly from Dana Point to Cardiff by the Sea in San Diego County. Her district imports nearly 100 percent of its water. North Orange County imports only 30 percent and it could be zero if we managed the groundwater basin equitably.

“Trying” isn’t good enough, especially when it places the burden of costly boutique desalinated water on those who are actually “doing” something.

Residents of Santa Ana and Westminster are close to an ideal goal of consumption of 100 gallons per person per day. At the other extreme are communities like Villa Park and Northern San Diego County, where 500 gallons per person per day is the norm.

Why is 100 gallons per person per day ideal? Because at that level, North Orange County could get nearly 100 percent of its water from the groundwater basin.

The manner of water allocation used by the Orange County Water District and its member agencies places a disproportionately higher cost burden on those who consume the least amount of water. In effect, those who aren’t just “trying” but are implementing conservation will be subsidizing the explosive costs of ocean desalinated water.

Lush parkways in Bates' assembly district (this one in San Clemente), located in a an area that must import 100 percent of its drinking water, seems to contradict the idea of sound water resources management. Photo: Google
Lush parkways in Bates’ assembly district (this one in San Clemente), located in an area that must import 100 percent of its drinking water, seem to contradict the idea of sound water resources management. Photo: Google

And if North Orange County goes all in for an ocean desalination project, will Ms. Bates be sponsoring a bill to enable the OCWD rate payer to subsidize water sales to South Orange County water agencies?

Ms. Bates then goes on to cheer lead for desalination: “Southern California communities have rallied behind desalinated ocean water as a reliable, safe and environmentally friendly solution to long-term water shortages.”

It is interesting to note that a small consortium of communities in her own district have spent millions of dollars building and evaluating a pilot project in Dana Point only to discover they couldn’t “rally” enough support for such an expensive endeavor.

Ms. Bates reports on the “nearly completed” project in Carlsbad. But we are still waiting to see how the San Diego County Water Authority allocates the costs of this project, a painful task they have been discussing and postponing since 2012. The devil is in the details, details that were not sorted out prior to signing a “take or pay” contract.

Ms. Bates calls desalination “out of the box” thinking but in reality it is a knee jerk reaction by politicians who have ignored California’s failed water policies, archaic water laws, and fractured governance.

Addressing long term water needs requires long term thinking which will never be the domain of politicians in Sacramento.

It is much easier for elected officials to apply a “technical” fix knowing they will be out of office before the bill arrives.

What we need are courageous politicians who dare to engage with citizens in understanding and exploring solutions that actually address water needs and not water wants.

North Orange County does not need an ocean desalination project and hasn’t even figured out what they would do with the water. If Ms. Bates thinks one is needed in South Orange County, then she should address her own district’s needs first.

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