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2015 URBAN WATER MANAGEMENT PLAN <br />OCWD's current Long -Term Facilities Plan (LTFP) identifies the Huntington Beach Seawater Desalination <br />project as a priority project and determined the plant capacity of 56,000 AFY as the single largest source <br />of new, local drinking water available to the region. In addition to offsetting imported demand, water from <br />this project could provide OCWD with management flexibility in the OC Basin by augmenting supplies into <br />the Talbert Seawater Barrier to prevent seawater intrusion. <br />In May 2015, OCWD and Poseidon entered into a Term Sheet that provided the overall partner structure <br />in order to advance the project. Based on the initial Term Sheet, Poseidon would be responsible for <br />permitting, financing, design, construction, and operations of the treatment plant while OCWD would <br />purchase the production volume, assuming the product water quality and quantity meet specific contract <br />parameters and criteria. Furthermore, OCWD would then distribute the water in Orange County using one <br />of the proposed distribution options described above. <br />Currently, the project is in the late- stages of the regulatory permit approval process and Poseidon hopes <br />to obtain the last discretionary permit necessary to construct the plant from the California Coastal <br />Commission (CCC) in 2016. If the CCC permit is obtained, the plant could be operational as early as <br />2019. <br />Doheny Desalination Project — In 2013, after five years and $6.2 million to investigate use of a slant well <br />intake for the Doheny Desalination Project, it was concluded the project was feasible and could produce <br />15 MGD (16,800 AFY) of new potable water supplies to five participating agencies. These agencies <br />consist of: South Coast Water District (SCWD), City of San Clemente, City of San Juan Capistrano, <br />Laguna Beach County Water District (LBCWD) and Moulton Niguel Water District. <br />Only SCWD and LBCWD expressed interest in moving forward after work was completed, with the other <br />agencies electing to monitor the work and consider options to subsequently come back into the project <br />while considering other water supply investments. <br />More recently, LBCWD has had success in using previously held water rights in the OC Basin and may <br />elect to move forward with that project instead of ocean desalination. A final decision is pending based on <br />securing the necessary approvals on the groundwater agreement. <br />SCWD has taken the lead on the desalination project and has hired a consulting team to proceed with <br />project development for the Doheny Desalination Project. Major items scheduled over the next year <br />include: <br />• Preliminary Design Report and Cost Estimate <br />• Brine Outfall Analysis <br />• EIR Process <br />• Environmental Permitting Approvals <br />• Public Outreach <br />• Project Funding <br />• Project Delivery Method <br />• Economic Analysis <br />arcadis.com 661P�t 7 -3 <br />