Submitted at 6/13/13 Committee Meeting. Item
3
CRITERIA FOR THE
GWR RECOMMENDATION
BY THE
GOVERNANCE COMMITTEE
FOR THE
MONTEREY PENNINSULA WATER SUPPLY PROJECT
A.
Purpose and
Intent. The criteria below are intended for use
by the Governance Committee in making[1]
the “GWR Recommendation” as to whether Cal-Am should build, in Application A.12-04-019,
a 6.4 MGD desalination plant combined with a water purchase agreement for the
product water of the Groundwater Replenishment (GWR) Project of the Monterey Regional
Water Pollution Control Agency (MRWPCA) or, alternatively build a 9.6 MGD desal
plant without a water purchase agreement for the GWR product water.[2] In determining whether completion or
substantial compliance is demonstrated on the following criteria, the
Governance Committee shall take into consideration the relative progress and
the comparative stages of development of each of the two projects, Cal-Am’s Desal Project and MRWPCA’s
GWR Project.
B.
The
Criteria.
1.
The
CEQA process for the GWR Project is complete, with a certified Final
Environmental Impact Report, the MRWPCA has approved the Project, and the
status of required permits is consistent with the published project schedule.
2.
Agreements
or other determinations are in place or reasonably advanced in
progress to secure the source water(s) necessary to produce at
least 3,500 afy for recommended project.
3.
The
advisory
committee appointed by the California Department of Public Health to
monitor the ______, to the extent feasible, has
expressed a reasonable level of acceptance or approval as to the GWR treatment
process, injection and overall permitting, consistent with the stage of
development of the Project.
4.
The
costestimated
first-year revenue requirement to pay for the of water
of
from the GWR Project (including
an estimate of debt equivalency balancing if estimated to be necessary) is
$_______ or less.[3]
5.
The
GWR Project is on schedule, as verified by a letter
issued by an engineer licensed in California, to be operable prior
to the then-effective date of the Cease and Desist Order of the State Water
Resources Control Board or, if not, on schedule to meet or beat the desal project schedule.
6.
Preliminary
design for the GWR Project is at least at the 10% level, represented by a basis
of design report, (so that an accurate project cost estimate can
be generated) or is at a level similar to or more advanced than the level of
design for the entire desal project.
7.
The
required wholesale water purchase agreement has been drafted and the parties
thereto (Cal-Am, MRWPCA and the MPWMD) have reached
substantial agreement of the terms of the agreement.[4]
8.
A
project funding plan, sufficient in detail to qualify for a State Revolving
Fund loan, is in place.
C.
The Process. The timing and process for consideration and
action by the Governance Committee on a GWR Recommendation is set forth at
length in Section V.D of the Governance Committee Agreement. Additional procedures as necessary for the
Governance Committee’s consideration of the matter should include a public
hearing at a regular or special meeting of the Governance Committee, upon 30
days’ prior written notice to all parties to Application A. 12-04-019, and full
opportunity for MRWPCA to present reports and evidence to demonstrate to the
Governance Committee completion of or substantial compliance with the
above-stated criteria.
[1] Assuming the California Public Utilities Commission (CPUC) approves California American Water Company’s (Cal-Am’s) participation in the Agreement to Form the Governance Committee.
[2] The same, or similar, criteria may be used by the CPUC at such time as it may review the GWR Recommendation of the Governance Committee upon submittal of same by Cal-Am for a Tier 2 Advice Letter.
[4] Language may be considered and inserted here relative to the parties negotiating in good faith and not unreasonably withholding consent to an agreement.