Dana Point Ocean Desalination Project

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Dana Point Ocean Desalination Project

• Project Update
• May 2007

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Summary

• Construction of a 15 million gallon per day Dana
  Point Ocean Desalination plant using a slant well
  subsurface intake facility to produce about
  16,000 AF per year is FEASIBLE
• Project cost 136 million
• Cost of water 1287 per acre foot
• The project is sensitive to environmental issues
  and supported by Surfrider Foundation and others
• Work completed is of benefit to the San Juan
  Groundwater Basin

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• Dana Point
• Ocean
• Desalination
• Project
• Facility
• Layout

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Dana Point Ocean Desalination Plant

• 15 MGD meets about half of the 2025 water demands
  for Laguna Beach, San Clemente and South Coast WD
  
• For all eight SOC agencies, demands are currently
  about 115 mgd meets about 13 of demands

Dana Point Ocean Desalination Plant Service
Area
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What we want from you?

• Understanding of project potential and risk
• Info needed to enable decision by local agencies
  to move project forward
• Interest in forming a JPA to move the project
  forward

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Why Ocean Desalination?

• Supply Reliability
• New dependable potable water supply source
• Independent of hydrologic cycle
• Consistent with METs IRP
• Delta export risks (Earthquakes, Fisheries)
• Climate change
• Threats to import supplies
• System Reliability
• Local supply under local control
• Supply at end of distribution system
• Emergency supply at constant delivery rate
• MET Funding

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Challenges to Water from Northern California
State Water Project

• San Francisco Bay/
  Sacramento - San Joaquin River Delta
• Hub of States water system
• Degraded ecosystem/fishery
• Vulnerable levee system
• Peat soils/drainage DBP precursors
• Climate change, flood and water supply impacts

Sacramento
Delta
San Francisco
Los Angeles Aqueduct
Los Angeles
Colorado River Aqueduct
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Historical Island Flooding (since
1960)
Sacramento
New Hope
Tyler
Brannan Island
Webb Tract
Sherman Island
Venice
BayArea
Stockton
Holland Tract
McDonald Tract
Jones Tract
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Challenges to Waterfrom the Colorado River

• Growth in other basin states
• Over allocation
• Climate change, extended drought
• Mexico claims
• Salinity and water quality

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South Orange County Challenges
Diemer Filtration Plant

• Imported water 95 of potable supplies
• Single water treatment plant and two pipelines
  serve more than 500,000 residents and businesses
• Few local resources
• Emergency outage of the import system could cause
  significant economic problems

Dana Point Ocean Desalination Site
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Multi-year investigations

• 2002 proposal to MET to preserve 250 per AF
  incentive for 28,000 AF (174 Million)
• 2005 test borings determined depth and verified
  highly permeable alluvium at shoreline
• 2006 test slant well demonstration project
• 2006 SOCWA Outfall Capacity Study
• 2007 SDGE electrical service study
• 2007 Groundwater modeling results 30 mgd ocean
  intake is feasible to produce 15 mgd of potable
  water
• Drawdown impacts to South Coast wells can be
  mitigated

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Test Slant Well
Test Slant Well Drilling Site
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Test Slant Well Schematic
Drill Rig
Ocean Surface
Land Surface
23o
350 feet
Ocean Bottom
Main Aquifer 40 to 130 feet
Infiltration
Fresh Water
Salt Water
Test Slant Well
325 feet
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Subsurface Slant Well Intake System Advantages

• Avoids ocean impacts from construction and
  entrainment/impingement
• Provides pretreatment benefit and shock load
  protection against red tides, storms, etc.
• Functions as a ocean water intrusion barrier
• Cost-effective technology and potential lower
  life-cycle costs compared to conventional intake
  systems
• Work to date supported by environmental
  organizations
• Letter of Support from Surfrider Foundation

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Drilling Site on Doheny Beach
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Dual Rotary Drill Rig Test Slant Well
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Testing Set Up
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Dual Rotary Drill Rig
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Welding Screen Joints
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Feedwater Supply Facilities
Desalination Plant Site
Subsurface Slant Wells and Buried Collector
Intake System
SOCWA Outfall
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Key Findings from Engineering Feasibility Report
- 1

• Project Sized at 15 million gallons/day (MGD)
• Distribution of water to South Coast, San
  Clemente, San Juan Capistrano, MNWD and Laguna
  Beach is FEASIBLE
• Subsurface intake system is the lowest cost and
  least impacting feedwater supply option
• Makes good use of existing facilities
• Concentrate disposal capacity available in SOCWA
  Ocean Outfall
• System integration is straightforward

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Key Findings from Engineering Feasibility Report
- 2

• Subsurface water is naturally filtered treatment
  before reverse osmosis membranes is not necessary
  saves 30 million capital and 50 million life
  cycle
• Groundwater Modeling predicts low iron and
  manganese levels treatment not needed
• Extended pump test and pilot plant is necessary
  to verify findings and to complete check on
  groundwater modeling work

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Key Findings from Engineering Feasibility Report
- 3

• Capital Cost
• Estimated Base Cost 104 M
• Contingency Allowance 32 M
• Total Budgetary Cost 136 M
• OM Cost
• Energy Purchases 7.0 M/yr
• Other OM Costs 4.7 M/yr
• Total OM Cost 11.7 M/yr
• Notes (1) Electrical energy at 11.5 (SDGE
  applicable rate)
• (2) Land and site preparation in contingency

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Unit Project Costs

• Project Yield
• Capacity at 15 MGD
• Yield at 95 Load Factor 15,962 afy
• Cost Per Acre-Foot of Yield(1)
• Capital 552/af
• Energy 438/af
• OM 297/af
• Total 1287/af
• Notes (1) i 5, n 30 years
• (2) Electrical energy at 11.5 (SDGE
  applicable rate)
• (3) Land and site preparation in
  contingency

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Project Costs vs Future MET Treated Water Rate

• How do future projected MET treated water rates
  compare with the ocean desalination project costs
• MET rates are anticipated to escalate at 4 to 6
  per year for next 10 years
• Projected rates beyond 2016 are subject to many
  issues CALFED (Delta fix), replacement and
  refurbishment costs, power costs, environmental
  mitigation, etc.
• Hard to predict future MET rates

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MET Treated Water Rate
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Project Unit Costs vs MET Rate
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Project Unit Costs vs MET Rate
319 per AF
56 M (present value)
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Project Unit Costs vs MET Rates
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Ocean Desal Costs

• Technology advancements will lower desalination
  capital and OM costs
• Membrane and energy recovery technology
• More efficient and fouling resistant membranes
  are in RD and commercialization (e.g. UCLA,
  others)
• Improvements expected in pumping/energy recovery
• Advanced design solutions
• Larger diameter vessels will reduce RO membrane
  system and facility capital costs
• Other

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Energy Use Metrics

• Comparative Energy Requirements
• Desal Distribution 3800 kwhr/af
• Imported water to SOC 3240 kwhr/af
• SWP GW-Ag Transfers 3840 kwhr/af
• Comparative Energy Use Metrics
• Desal per capita 1.5 kwhr/day
• Personal Computer (4hrs) 1.1 kwhr/day
• Refrigerator 8.0
  kwhr/day

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kw-hr per AF
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Green Energy for Desal

• Solar requires 2.3 acres and 8 to 10M
  investment to develop 1 megawatt of power for 6
  hours per day
• SDGE is working on attaining 20 renewable
  energy portfolio by 2012
• Peak System Demand is 4290 MW in 2015
• Dana Point Desal Project is 8 MW 0.2

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Dana Point Ocean Desalination Project A
Multiple Purpose Project

• New south of Delta dependable water supply
• Cost is fairly expensive
• Protection from outage of regional system
• Benefits equivalent to a supply rate of 23 cfs or
  a storage volume of 1425 AF (31 day outage)
• Water quality benefit for recycling opportunities
  
• Provides ocean water intrusion barrier for the
  San Juan Groundwater Basin
• Especially helpful during extended droughts
• Environmentally acceptable project

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Agencies involved to date

• Federal Agencies
• U.S. Bureau of Reclamation
• U.S. EPA
• U.S. Fish and Wildlife Service
• U.S. Army Corps of Engineers
• State Agencies
• California Department of Water Resources
• California Department of Parks and Recreation
• California Coastal Commission
• California State Lands Commission
• California Department of Fish and Game
• SWRCB and San Diego Regional Water Quality
  Control Board
• Local and Regional Agencies
• South Coast Water District
• Laguna Beach County Water District
• City of San Clemente
• Moulton Niguel Water District
• City of Dana Point

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Next Steps

• Outreach, Briefings and Formation of Joint Powers
  Agency (JPA)
• Extended Pumping Test and Pilot Plant Process
  Study
• Cost 3.6 to 4.2 Million
• Duration 3½ years
• Schedule June 2007 through Dec 2010
• Accept DWR grant of 1.5 M
• Seek Federal and Other funding
• JPA funding to initiate CEQA and Permitting

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Cost for Next Steps

• Local agency costs for extended pump test and
  pilot plant construction and operation estimated
  between 100,000 to 350,000 per year per agency
  over next 3 years (depends on outside funding and
  number of agencies)

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Project Timeline

• South OC Water Reliability Study
  2001-04
• Pre-Feasibility Study
  2002-03
• Hydrogeology Investigation
  2004-05
• Test Slant Well/System Modeling
  2005-06
• Engineering Feasibility Report
  2006-07
• Formation of Joint Powers Agency
  2007-08
• Agreements/Pilot Plant and Testing
  2007-10
• Project CEQA/NEPA, Permits
  2008-12
• Design/Build/Operate contract on-line
  2012-15

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Project Funding and Grants

• Goal is to get the local cost of the desal water
  close to the cost of MET water
• Work to obtain greater MET participation
• Support efforts for tax credit bonds
• New Water Supply Coalition
• MET Board action to sponsorship Federal
  legislation
• Work to procure Federal and State grants