Orange County Groundwater Producers Huntington Beach Desalination Project November 12, 2014 Accumulated Overdraft Since 1969 Basin Operating Range Annual Base and Storm Flow in the SAR at Prado Dam, 1936-2012 RANGE OF SANTA ANA RIVER BASEFLOWS 120,000 100,000 80,000 Annual 60,000 Baseflow 40,000 (afy) 20,000 0 Average Last 5 Yrs (08-12) 2013-14 Actual High Medium (2030-2040) (2030-2040) Low (2030-2040) BPP WITH NO ADDITIONAL RECHARGE * 600,000 65% 56% 53% 500,000 400,000 75% BPP Goal: 375,000 afy Annual Supply 300,000 (afy) 200,000 Imported Water Misc GWRS (Initial Expansion) 100,000 Incidental Recharge Stormflow 0 High Medium Low Baseflow *Includes 10,000 afy of WQ projects over BPP ADDITIONAL RECHARGE REQUIRED TO ACHIEVE 75% BPP* 600,000 500,000 400,000 Annual Supply 300,000 (afy) 51,000 94,500 108,200 Imported Water Misc 200,000 GWRS (Initial Expansion) Incidental Recharge 100,000 Stormflow Baseflow 0 High Medium Low *Includes 10,000 afy of WQ projects over BPP PROPOSED PRIORITY PROJECTS: WATER SUPPLY FACILITIES • GWRS Final Expansion • GWRS: Urban Runoff Diversion to OCSD Plant #1 • Prado Basin Sediment Management • HB Desal Plant Product Water Agreement (Poseidon) • Recovery of ET Loss in Prado Basin • Treat SARI Flows in Anaheim NEXT STEPS! Presentation to the Orange County Groundwater Producers Group November 12, 2014 Poseidon Resources Huntington Beach Seawater Desalination Project Clean Energy Capital Hired June 2014 Provide independent financial analysis David Moore – Managing Director Provided similar support to San Diego County Water Authority (SDCWA) on the Carlsbad Desalination Project Draft report released on September 26, 2014 10 Key Findings Poseidon’s estimates, figures and financial plan are reasonable Poseidon’s estimated 2014 project unit cost is $1,871/af Clean Energy Capital’s “p50” estimate is $1,922/af Poseidon’s treatment plant design, financing plan, and proposed partnership with OCWD are similar to the SDCWA/Carlsbad project 11 Proposed Poseidon / OCWD Partnership Poseidon would finance, design, construct, startup and operate the project OCWD would enter into a 30-year water purchase agreement with Poseidon Clean Energy Capital’s analysis assumes that OCWD would sell the water to interested retail agencies 12 Alternative Financing Options # Option Savings 1 OCWD issues debt for distribution system $19/af 2 OCWD issues debt for treatment plant $99/af 3 OCWD issues debt to equity portion of project (18% of capitalization) $221/af 4 Variable rate debt used during construction and partially used during operations $132/af Combined Savings could equal $350 – $400/af 13 2014 Cost Estimates with MWD LRP Subsidy 14 Thank you! David M. Moore Managing Director Clean Energy Capital Securities LLC One Market Street, Suite 3600 San Francisco, CA 94105 (415) 710-1350 [email protected] www.cleanenergycap.com 15 Orange County Groundwater Producers Huntington Beach Desalination Project November 12, 2014 HUNTINGTON BEACH DESALINATION PROPER DISTRIBUTION OPTIONS 1. Distribute Directly to Orange County Water Agencies 2. Inject water into the Groundwater Basin 3. Combination of option 1 and 2 DIRECT DISTRIBUTION GROUNDWATER INJECTION INSTITUTIONAL Option 1: Distribute to Agencies Agreements 1. MWD – LRP Subsidy 2. MWD – Water Distribution 3. MWDOC 4. Poseidon 5. West OC Water Board (four agencies) 6. OC-44 (Huntington Beach, Mesa Water) 7. EOCF #2 (seven Agencies) 8. Groundwater Agencies (up to 19) 9. South County Agencies (up to 7) INSTITUTIONAL Option 2: Inject water into the Groundwater Basin Agreements 1. MWD – LRP 2. MWDOC 3. Poseidon Seawater Desalination Project at Huntington Beach Local, Drought-Proof Source of Drinking Water For Orange County © POSEIDON WATER 2014 22 UPDATE – CARLSBAD DESALINATION PROJECT © POSEIDON WATER 2014 23 Carlsbad Desalination Project September 2013 September 2014 Plant Construction: 75% Complete © POSEIDON WATER 2014 25 Plant Construction – RO Building © POSEIDON WATER 2014 26 26 Pipeline Construction: 80% Complete © POSEIDON WATER 2014 27 Project Status - Oct 1st © POSEIDON WATER 2014 28 HUNTINGTON BEACH DESALINATION PROJECT © POSEIDON WATER 2014 29 Huntington Beach Site Redevelopment Current Proposed Project Huntington Beach Desalination Plant © POSEIDON WATER 2014 30 OCWD – How the HB Project Fits • May 2013 - The District’s Board of Directors unanimously resolved that it is the policy of the District to consider and develop a variety of local water resources – including seawater desalination - to ensure sufficient water supplies are always available to the residents and businesses in the service territory. • The Board resolution states: “without the development of additional new local water resources the Groundwater Producers will be forced to significantly increase the amount of imported water they require.” • OCWD 2014 Long-term Facilities Plan Update includes the Huntington Beach project. • Plan identifies an anticipated 20% increase – 90,000 acre feet - in water demand within the OCWD territory by 2035. • The Huntington Beach project’s 56,000 acre feet per year capacity is the single largest source of new, local drinking water supply available to the County. © POSEIDON WATER 2014 31 Water Purchase Agreement: Sequence of Steps Going Forward Term Sheet Developed Risk allocation: assignment of roles and responsibilities Distribution System Integration MET LRP Incentive Coastal Development Permit Hearing EPC Process WPA Negotiations OCWD Board Approves Term Sheet 1Q15 © POSEIDON WATER 2014 Coastal Permit Approved 2Q15 OCWD Board Approves WPA 3Q15 4Q15 32
© Copyright 2024 ExpyDoc
